Siliconware Precision Industries Reports a 5.7% Quarter-over-Quarter decline in Revenues Resulting in Earnings per Share of NT$ 0.86 or earnings per ADS is US$ 0.13

TAICHUNG, Taiwan, Oct. 27, 2015 /PRNewswire/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the third quarter of 2015 were NT$ 20,030 million, which represented a 5.7% decline in revenues compared to the second quarter of 2015 and a 7.5% decline in revenues compared to the third quarter of 2014. SPIL reported a net income of NT$ 2,682 million for the third quarter of 2015, compared with a net income of NT$ 3,677 million and a net income of NT$ 3,260 million for the second quarter of 2015 and the third quarter of 2014, respectively.

Diluted earnings per ordinary share was NT$ 0.86, and diluted earnings per ADS was US$ 0.13 for this quarter.

All figures were prepared in accordance with T-IFRS on a consolidated basis.

Operating results review:

• For the third quarter of 2015, net revenues from IC packaging were NT$ 17,744 million and represented 89% of total net revenues. Net revenues from testing operations were NT$ 2,286 million and represented 11% of total net revenues.
• Cost of goods sold was NT$ 15,090 million, representing a decrease of 2.4% compared to the second quarter of 2015 and a decrease of 6.3% compared to the third quarter of 2014.
  • Raw materials costs were NT$ 6,150 million for the third quarter of 2015 and represented 30.7% of total net revenues, whereas raw materials costs were NT$ 6,704 million and represented 31.6% of total net revenues for the second quarter of 2015.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 360 million.   
• Gross profit was NT$ 4,940 million for the third quarter of 2015, representing a gross margin of 24.7%, which decreased from a gross margin of 27.2% for the second quarter of 2015 and was down from 25.6% for the third quarter of 2014.   
• Total operating expenses for the third quarter of 2015 were NT$ 2,011 million, which included selling expenses of NT$ 244 million, administrative expenses of NT$ 801 million and R&D expenses of NT$ 966 million. Total operating expenses represented 10.1% of total net revenues for the third quarter of 2015.
  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 205 million. 
• Operating income was NT$ 2,929 million for the third quarter of 2015, representing an operating margin of 14.6%, which decreased from 16.9% for the second quarter of 2015 and decreased from 16.7% for the third quarter of 2014.
• Non-operating items:
  • Our non-operating income was NT$ 547 million, including net income of NT$ 478 million on fair value change of financial liabilities at fair value through profit or loss.    
• Net income before tax was NT$ 3,051 million for the third quarter of 2015, which decreased from a net income before tax of NT$ 4,332 million for the second quarter of 2015 and decreased from a net income before tax of NT$ 3,968 million for the third quarter of 2014.
• Income tax expense was NT$ 369 million for the third quarter of 2015, compared with income tax expense of NT$ 655 million for the second quarter of 2015 and income tax expense of NT$ 708 million for the third quarter of 2014.
• Net income was NT$ 2,682 million for the third quarter of 2015, which decreased from a net income of NT$ 3,677 million for the second quarter of 2015 and decreased from a net income of NT$ 3,260 million for the third quarter of 2014.
• Total number of shares outstanding was 3,129 million shares as of Sept 30, 2015. Diluted earnings per ordinary share was NT$ 0.86, and diluted earnings per ADS was US$ 0.13.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 22,437 million as of Sept 30, 2015 from NT$ 28,103 million as of Jun 30, 2015, and NT$ 20,139 million as of Sept 30, 2014. 
• Capital expenditures for the third quarter of 2015 totaled NT$ 4,425 million, which included NT$ 4,022 million for packaging equipment and NT$ 403 million for testing equipment.
• Total depreciation expenses for the third quarter of 2015 totaled NT$ 3,228 million, which included NT$ 2,397 million was from packaging operations and NT$ 831 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 17,744 million for the third quarter of 2015, which represented a decrease of NT$ 982 million or 5.2% compared to the second quarter of 2015.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 27%, 18% and 44%, respectively, of total net revenues for the third quarter of 2015.
• Capital expenditures for IC packaging operations totaled NT$ 4,022 million for the third quarter of 2015, which included NT$ 2,141 million for packaging and building construction and NT$ 1,881 million for wafer bumping operations.
• As of Sept 30, 2015 we had 7,348 wirebonders installed, of which 27 were disposed in the third quarter of 2015.

IC testing service:                     

• Net revenues from testing operations were NT$ 2,286 million for the third quarter of 2015, which represented a decrease of NT$ 228 million or 9.1% compared to the second quarter of 2015.
• Capital expenditures for testing operations totaled NT$ 403 million for the third quarter of 2015.
• As of Sept 30, 2015 we had 543 testers installed, of which 4 were added the third quarter of 2015.

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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 TIFRS on a consolidated basis. The investment gains or losses of our company for the three months ended Sept 30, 2015 reflect our gains or losses attributable to the third quarter of 2015 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the consolidated financial data for our company for the three months ended Sept 30, 2015, nor the consolidated financial data for our company for the nine months ended Sept 30, 2015 is necessarily indicative of the results that may be expected for any period thereafter.

SOURCE Siliconware Precision Industries Co., Ltd.

Related Links

http://www.spil.com.tw