Siliconware Precision Industries Reports a 6.5% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ 0.34 or Earnings per ADS of US$ 0.06 for First Quarter 2011

TAICHUNG, Taiwan, April 27, 2011 /PRNewswire-Asia-FirstCall/ -- 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 2011 were NT$ 14,467 million, which represented a 6.5% decline in revenues compared to the fourth quarter of 2010 and a 7.8% decline in revenues compared to the first quarter of 2010. SPIL reported a net income of NT$ 1,070 million for the first quarter of 2011, compared with a net income of NT$ 1,114 million and a net income of NT$ 1,514 million for the fourth quarter of 2010 and the first quarter of 2010, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.34, and diluted earnings per ADS was US$ 0.06.

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

Operating results review:

• For the first quarter of 2011, net revenues from IC packaging were NT$ 13,181 million and represented 91% of total net revenues. Net revenues from testing operations were NT$ 1,286 million and represented 9% of total net revenues.
• Cost of goods sold was NT$ 12,272 million, representing a decrease of 7.5% compared to the fourth quarter of 2010 and a decrease of 6.9% compared to the first quarter of 2010.
  • Raw materials costs were NT$ 6,466 million for the first quarter of 2011, and represented 44.7% of total net revenues, whereas raw materials costs were NT$ 7,295 million and represented 47.1% of total net revenues for the fourth quarter of 2010.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 81 million.    
• Gross profit was NT$ 2,195 million for the first quarter of 2011, representing a gross margin of 15.2%, which increased from a gross margin of 14.3% for the fourth quarter of 2010 and was down from 16.0% for the first quarter of 2010.    
• Total operating expenses for the first quarter of 2011 were NT$ 1,016 million, which included selling expenses of NT$ 161 million, administrative expenses of NT$ 399 million and R&D expenses of NT$ 456 million. Total operating expenses represented 7.0% of total net revenues for the first quarter of 2011.
  • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 34 million.  
• Operating income was NT$ 1,179 million for the first quarter of 2011, representing an operating margin of 8.2%, which increased from 7.9% for the fourth quarter of 2010 and decreased from 10.9% for the first quarter of 2010.
• Non-operating items:
  • Our net currency exchange gain of NT$ 44 million for the first quarter of 2011 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$ 1,217 million for the first quarter of 2011, which increased from a net income before tax of NT$ 1,194 million for the fourth quarter of 2010 and decreased from a net income before tax of NT$ 1,773 million for the first quarter of 2010.
• Income tax expense was NT$ 147 million for the first quarter of 2011, compared with income tax expense of NT$ 80 million for the fourth quarter of 2010 and income tax expense of NT$ 259 million for the first quarter of 2010.
• Net income was NT$ 1,070 million for the first quarter of 2011, which decreased from a net income of NT$ 1,114 million for the fourth quarter of 2010 and decreased from a net income of NT$ 1,514 million for the first quarter of 2010.
• Total number of shares outstanding was 3,135 million shares as of Mar 31,2011. Diluted earnings per ordinary share for this quarter was NT$ 0.34, or US$ 0.06 per ADS.  

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 13,517 million as of Mar 31, 2011 from NT$ 15,519 million as of Dec 31, 2010, and NT$ 21,198 million as of Mar 31, 2010.  
• Capital expenditures for the first quarter of 2011 totaled NT$ 3,233 million, which included NT$ 2,693 million for packaging equipment and NT$ 540 million for testing equipment.
• Total depreciation expenses for the first quarter of 2011 totaled NT$ 2,209 million, which included NT$ 1,694 million was from packaging operations and NT$ 515 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 13,181 million for the first quarter of 2011, which represented a decrease of NT$ 917 million or 6.5% compared to the fourth quarter of 2010.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & FCBGA accounted for 40%, 31% and 20%, respectively, of total net revenues for the first quarter of 2011.
• Capital expenditures for IC packaging operations totaled NT$ 2,693 million for the first quarter of 2011, which included NT$ 2,634 million for packaging and building construction and NT$ 59 million for wafer bumping operations.
• As of Mar 31, 2011 we had 6,405 wirebonders installed, of which 316 were added   in the first quarter of 2011.

IC testing service:                      

• Net revenues from testing operations were NT$ 1,286 million for the first quarter of 2011, which represented a decrease of NT$ 95 million or 6.9% compared to the fourth quarter of 2010.
• Capital expenditures for testing operations totaled NT$ 540 million for the first quarter of 2011.
• As of Mar 31, 2011 we had 333 testers installed, of which 19 were added and 5 were disposed in the first quarter of 2011.

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 an unaudited consolidated basis. Audited consolidated financial figures will be publicly announced upon the completion of our audit process. The investment gains or losses of our company for the three months ended Mar 31, 2011 reflect our gains or losses attributable to the first quarter of 2011 unaudited financial results of several of our investees which are evaluated under the equity method. The unaudited consolidated financial data for our company for the three months ended Mar 31, 2011 is not necessarily indicative of the results that may be expected for any period thereafter.

SOURCE Siliconware Precision Industries Co Ltd