Siliconware Precision Industries Reports a 3.8% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ 0.29 or Earnings per ADS of US$ 0.05 for First Quarter 2012

TAICHUNG, Taiwan, April 25, 2012 /PRNewswire-Asia/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the first quarter of 2012 were NT$ 15,118 million, which represented a 3.8% decline in revenues compared to the fourth quarter of 2011 and a 4.5% growth in revenues compared to the first quarter of 2011. SPIL reported a net income of NT$ 891 million for the first quarter of 2012, compared with a net income of NT$ 1,171 million and a net income of NT$ 1,070 million for the fourth quarter of 2011 and the first quarter of 2011, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.29, and diluted earnings per ADS was US$ 0.05.

All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Operating results review:

• For the first quarter of 2012, net revenues from IC packaging were NT$ 13,722 million and represented 91% of total net revenues. Net revenues from testing operations were NT$ 1,396 million and represented 9% of total net revenues.
• Cost of goods sold was NT$ 12,891 million, representing a decrease of 2.3% compared to the fourth quarter of 2011 and an increase of 5.0% compared to the first quarter of 2011.
  • Raw materials costs were NT$ 6,823 million for the first quarter of 2012 and represented 45.1% of total net revenues, whereas raw materials costs were NT$ 7,015 million and represented 44.7% of total net revenues for the fourth quarter of 2011.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 67 million.   
• Gross profit was NT$ 2,227 million for the first quarter of 2012, representing a gross margin of 14.7%, which decreased from a gross margin of 16.0% for the fourth quarter of 2011 and was down from 15.2% for the first quarter of 2011.   
• Total operating expenses for the first quarter of 2012 were NT$ 1,188 million, which included selling expenses of NT$ 173 million, administrative expenses of NT$ 459 million and R&D expenses of NT$ 556 million. Total operating expenses represented 7.8% of total net revenues for the first quarter of 2012.
  • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 29 million. 
• Operating income was NT$ 1,039 million for the first quarter of 2012, representing an operating margin of 6.9%, which decreased from 8.5% for the fourth quarter of 2011 and decreased from 8.2% for the first quarter of 2011.
• Non-operating items:
  • Our net currency exchange gain of NT$ 34 million for the first quarter of 2012 was mainly due to appreciation of our US dollar denominated asset as a result of an appreciation in the foreign currency exchange rate of the US dollar against NT dollar, our reporting currency.
• Net income before tax was NT$ 1,082 million for the first quarter of 2012, which decreased from a net income before tax of NT$ 1,431 million for the fourth quarter of 2011 and decreased from a net income before tax of NT$ 1,217 million for the first quarter of 2011.
• Income tax expense was NT$ 191 million for the first quarter of 2012, compared with income tax expense of NT$ 260 million for the fourth quarter of 2011 and income tax expense of NT$ 147 million for the first quarter of 2011.
• Net income was NT$ 891 million for the first quarter of 2012, which decreased from a net income of NT$ 1,171 million for the fourth quarter of 2011 and decreased from a net income of NT$ 1,070 million for the first quarter of 2011.
• Total number of shares outstanding was 3,095 million shares as of Mar 31, 2012. Diluted earnings per ordinary share for this quarter was NT$ 0.29, or US$ 0.05 per ADS. 

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 17,204 million as of Mar 31, 2012 from NT$ 15,942 million as of Dec 31, 2011, and NT$ 13,517 million as of Mar 31, 2011. 
• Capital expenditures for the first quarter of 2012 totaled NT$ 1,993 million, which included NT$ 1,622 million for packaging equipment and NT$ 371 million for testing equipment.
• Total depreciation expenses for the first quarter of 2012 totaled NT$ 2,349 million, which included NT$ 1,860 million was from packaging operations and NT$ 489 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 13,722 million for the first quarter of 2012, which represented a decrease of NT$ 470 million or 3.3% compared to the fourth quarter of 2011.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & FCBGA accounted for 42%, 26% and 23%, respectively, of total net revenues for the first quarter of 2012.
• Capital expenditures for IC packaging operations totaled NT$ 1,622 million for the first quarter of 2012, which included NT$ 1,264 million for packaging and building construction and NT$ 358 million for wafer bumping operations.
• As of Mar 31, 2012 we had 6,461 wirebonders installed, of which 190 were added and 264 were disposed in the first quarter of 2012.

IC testing service:

• Net revenues from testing operations were NT$ 1,396 million for the first quarter of 2012, which represented a decrease of NT$ 122 million or 8.6% compared to the fourth quarter of 2011.
• Capital expenditures for testing operations totaled NT$ 371 million for the first quarter of 2012.
• As of Mar 31, 2012 we had 337 testers installed, of which 5 were added and 2 were disposed in the first quarter of 2012.

Revenue Analysis

• Breakdown by end applications:

• Breakdown by packaging type:

About SPIL

Siliconware Precision Industries Ltd. ("SPIL") (NASDAQ:SPIL, Taiwan Stock Exchange: 2325) is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers' integrated circuit packaging and testing requirements, with turnkey solutions that range from design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, to shipment. Products include advanced leadframe, substrate packages, wafer bumping and FCBGA, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. For further information, visit SPIL's web site at www.spil.com.tw.

Safe Harbor Statement

The information herein contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectation and projections about future events. Such forward-looking statements are inherently subject to known and unknown risks, uncertainties, assumptions about us and other factors that may cause the actual performance, financial condition or results of operations of SPIL to be materially different from what may be implied by such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors, including, among other things:

• the intensely competitive personal computer, communications, consumer ICs and non-commodity memory semiconductor industries and markets;
• cyclical nature of the semiconductor industry;
• risks associated with global business activities;
• non-operating losses due to poor financial performance of some of our investments;
• our dependence on key personnel;
• general economic and political conditions;
• possible disruptions in commercial activities caused by natural and human induced disaster, including terrorist activities and armed conflicts and contagious disease, such as the Severe Acute Respiratory Syndrome;
• fluctuations in foreign currency exchange rates; and
• other risks identified in our annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission each year.

The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.  In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

All financial figures discussed herein are prepared pursuant to ROC GAAP on a consolidated basis. The investment gains or losses of our company for the three months ended Mar 31, 2012 reflect our gains or losses attributable to the first quarter of 2012 unaudited financial results of several of our investees which are evaluated under the equity method. The consolidated financial data for our company for the three months ended Mar 31, 2012, is not necessarily indicative of the results that may be expected for any period thereafter.

- Tables to Follow -

SOURCE Siliconware Precision Industries Co., Ltd.