SHANGHAI, Jan. 19, 2017 /PRNewswire/ -- Semiconductor Manufacturing International Corporation ("SMIC" or the "Company") (NYSE: SMI; SEHK: 981), one of the leading semiconductor foundries in the world, announces today that it reaffirms its 2016 fourth quarter revenue and gross margin guidance for the three months ended December 31, 2016, which was originally released by the Company in its results for the three months ended September 30, 2016 on November 7, 2016. SMIC narrows its fourth quarter 2016 revenue growth from 5-7% quarter over quarter to 5-6% quarter over quarter, and gross margin range from 28-30% to 29-30%.
Dr. Tzu-Yin Chiu, Chief Executive Officer commented, "Since the release of our third quarter earnings, we have increased clarity on the near-term business environment. Based on current expectation, revenue for the first quarter of 2017 is expected to grow on a year over year basis and decline mildly quarter over quarter. We target an annual revenue growth of around 20% in 2017, outperforming the foundry industry average growth. Furthermore, we maintain our target to grow at 20% compounded annually from 2016 to 2019."
The Company is still in the process of finalizing its results for the three months ended December 31, 2016. The information contained in this press release is only a preliminary assessment by the management of the Company based on the latest unaudited consolidated management accounts of the Company for the three months ended December 31, 2016, which have not been confirmed nor audited by the Company's auditors and may be subject to adjustments.
Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.
Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China. SMIC provides integrated circuit (IC) foundry and technology services on process nodes from 0.35 micron to 28 nanometer. Headquartered in Shanghai, China, SMIC has an international manufacturing and service base. In China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab and a majority-owned 300mm fab for advanced nodes in Beijing; 200mm fabs in Tianjin and Shenzhen; and a majority-owned joint-venture 300mm bumping facility in Jiangyin; additionally, in Italy SMIC has a majority-owned 200mm fab. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong. For more information, please visit www.smics.com.
Safe Harbor Statements
(Under the Private Securities Litigation Reform Act of 1995)
This press release contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including the projected financial results for the fourth quarter of 2016 and the first quarter of 2017 and other statements contained in the quotes of SMIC's Chief Executive Officer, are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project," "target" and similar expressions to identify forward looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC's senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition in the semiconductor industry, SMIC's reliance on a small number of customers, timely wafer acceptance by SMIC's customers, timely introduction of new technologies, SMIC's ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, availability of manufacturing capacity, financial stability in end markets, orders or judgments from pending litigation, intensive intellectual property litigation in semiconductor industry, general economic conditions and fluctuations in currency exchange rates.
In addition to the information contained in this press release, you should also consider the information contained in our other filings with the SEC, including our annual report on Form 20-F filed with the SEC on April 25, 2016, as amended on December 9, 2016, especially in the "Risk Factors" section and such other documents that we may file with the SEC or The Hong Kong Stock Exchange Limited ("SEHK") from time to time, including current reports on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this press release. Except as may be required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.
SMIC Investor Contact:
Tel: +86-21-3861-0000 x 12804
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SOURCE Semiconductor Manufacturing International Corporation