SMIC Reports 2010 Fourth Quarter Results
All currency figures stated in this report are in US Dollars unless stated otherwise.
The financial statement amounts in this report are determined in accordance with US GAAP.
SHANGHAI, Feb. 17, 2011 /PRNewswire-Asia/ -- Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ("SMIC" or the "Company"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended December 31, 2010.
Fourth Quarter 2010 Highlights:
- Revenue up by 0.4% to $411.8 million in 4Q10 from $410.1 million in 3Q10 and up by 23.6% compared to 4Q09.
- Gross margin was 23.9% in 4Q10 compared to 24.5% in 3Q10 primarily due to an increase in other manufacturing costs.
- Net cash flow from operations has increased to $248.6 million in 4Q10 from $125.2 million in 3Q10.
- Income attributable to holders of ordinary shares was US$68.6 million in 4Q10, compared to income of US$30.4 million in 3Q10.
- Diluted EPS was $0.13 per ADS.
First Quarter 2011 Guidance:
The following statements are forward looking statements which are based on current expectation and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below.
- Revenue is expected to decline between 6% to 9%.
- Gross margin is expected to range from 18% to 20%.
- Operating expenses excluding foreign exchange differences are expected to range $82 million to $86 million.
- 2011 capital expenditures to be around $1 billion.
Commenting on the quarterly results, Dr. David NK Wang, President and Chief Executive Officer of SMIC remarked, "2010 was a year of achievement for SMIC. First, I am pleased to report that SMIC continued to be profitable for the third consecutive quarter, and has achieved its first profitable year, at both operational and net income levels, after 5 years of loss. I would like to thank SMIC employees for their efforts, which resulted in enhanced customer relations, successful advanced technology ramp-up, and overall effective execution. Second, we recorded historical high annual revenue of more than $1.55 billion for 2010, representing a year-over-year growth of 45.2%. Fourth quarter gross margin of 24% exceeded our guidance. Thus we achieved 20% gross margin for the full year of 2010, which is the highest gross margin performance achieved since after the year of IPO. Furthermore, we received various awards in 2010, recognizing our high-level of performance and service as well as improvements; 5 of these came from our top 10 customers. We are gaining momentum in engaging with key customers on both legacy and advanced technology. All of this shows we have made significant progress compared to 12 months ago. We have confidence that our momentum will continue through 2011 and onwards.
"In summary, we achieved a profitable 2010, successful 65-nanometer ramp up thus far, improved operations and overall customer relationships. We continue to focus on sustainable profitability for the long-term. In the near term we continue to ramp up 65/55-nanometer and to bring our 45/40-nanometer into production by the end of 2011. With our planned build up, we target to outgrow the foundry industry in 2011, and we look forward, with our strategy and execution to deliver sustainable value to our shareholders. "
Conference Call / Webcast Announcement | |
Date: Friday, February 18, 2011 | |
Time: 8:30 a.m. Shanghai time | |
Dial-in numbers and pass code: | |||
US | 1-617-597-5342 | (Pass code: SMIC) | |
HK | 852-3002-1672 | (Pass code: SMIC) | |
A live webcast of the 2010 fourth quarter announcement will be available at http://www.smics.com under the "Investor Relations" section, or at URL: http://phx.corporate-ir.net/playerlink.zhtml?c=176474&s=wm&e=3685341
An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.
About SMIC
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, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 45/40-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation.
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 statements concerning our belief that we are on course to profitability, and statements under "First Quarter 2011 Guidance" are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" 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, the downturn in the global economy and the impact on China's economy, intense competition, timely wafer acceptance by SMIC's customers, timely introduction of new technologies, SMIC's ability to capture growth opportunities in China, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, orders or judgments from pending litigation, availability of manufacturing capacity and financial stability in end markets.
Investors should consider the information contained in SMIC's filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on 20-F filed with the SEC on June 29, 2010, especially in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections, and such other documents that SMIC may file with the SEC or The Hong Kong Stock Exchange Limited ("SEHK") from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC's 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 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.
Summary of Fourth Quarter 2010 Operating Results Amounts in US$ thousands, except for EPS and operating data | ||||||
4Q10 | 3Q10 | QoQ | 4Q09 | YoY | ||
Revenue | 411,842 | 410,080 | 0.4% | 333,090 | 23.6% | |
Cost of sales | 313,248 | 309,440 | 1.2% | 307,669 | 1.8% | |
Gross profit | 98,594 | 100,640 | -2.0% | 25,421 | 287.8% | |
Operating expenses | 57,260 | 79,952 | -28.4% | 622,244 | -90.8% | |
Income (loss) from operations | 41,334 | 20,688 | 99.8% | (596,823) | - | |
Other income (expense), net | 27,445 | 13,358 | 105.5% | (29,178) | - | |
Income tax (expense) benefit | (388) | (3,634) | -89.3% | 8,735 | - | |
Net income (loss) after income taxes | 68,391 | 30,412 | 124.9% | (617,266) | - | |
Gain (loss) from equity investment | 304 | 295 | 3.1% | (114) | - | |
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| |||||
Net income (loss) | 68,695 | 30,707 | 123.7% | (617,380) | - | |
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| |||||
Accretion of interest to noncontrolling interest | (265) | (265) | 0.0% | (274) | -3.3% | |
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| |||||
Loss attributable to noncontrolling interest | 140 | - | - |
| ||
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| |||||
Earnings (Loss) attributable to Semiconductor Manufacturing International Corporation | 68,570 | 30,442 | 125.2% | (617,655) | - | |
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| |||||
Gross margin | 23.9% | 24.5% | 7.6% |
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Operating margin | 10.0% | 5.0% | -179.2% |
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| |||||
Earnings (loss) per ordinary share (basic)(1) | 0.00 | 0.00 | (0.03) |
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Earnings (loss) per ADS (basic) | 0.13 | 0.06 | (1.38) |
| ||
Earnings (loss) per ordinary share (diluted)(1) | 0.00 | 0.00 | (0.03) |
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Net income (loss) per ADS (diluted) | 0.13 | 0.06 | (1.38) |
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| |||||
Wafers shipped (in 8" wafers)(2) | 517,404 | 516,792 | 0.1% | 436,816 | 18.4% | |
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| |||||
Capacity utilization | 96.8% | 96.4% | 91.5% | |||
Note: (1) Based on weighted average ordinary shares of 26,547 million (basic) and 26,749 million (diluted) in 4Q10, 25,567 million (basic) and 25,747 million (diluted) in 3Q10 and 22,370 million (basic) and 22,370 million (diluted) in 4Q09 (2) Including copper interconnects | ||||||
- Revenue increased to $411.8 million in 4Q10, up 0.4% QoQ from $410.1 million in 3Q10 due to a 0.1% increase in wafer shipments.
- Cost of sales increased to $313.2 million in 4Q10, up 1.2% QoQ from $309.4 million in 3Q10 primarily due to an increase in other manufacturing costs.
- Gross profit was $98.6 million in 4Q10, compared to a gross profit of $100.6 million in 3Q10 and gross profit of $25.4 million in 4Q09.
- Gross margin was 23.9% in 4Q10 from 24.5% in 3Q10 primarily due to an increase in other manufacturing costs.
- Total operating expenses decreased to $57.3 million in 4Q10 from $80.0 million in 3Q10, a decrease of 28.4% QoQ driven by recovery from bad-debt write-off.
- R&D expenses decreased to $47.1 million in 4Q10, down 0.7% QoQ from $47.4 million in 3Q10 due to a decrease in R&D experiments.
- G&A expenses was $(7.0) million in 4Q10, compared to an expense of $16.8 million in 3Q10 due to a $28.5 million recovery from bad-debt write-off.
- Selling & marketing expenses increased to $8.7 million in 4Q10, up 11.5% QoQ from $7.8 million in 3Q10 primarily due to an increase in selling activities and related fees.
Analysis of Revenues | ||||
Sales Analysis |
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| |
By Application | 4Q10 | 3Q10 | 4Q09 | |
Computer | 2.3% | 3.6% | 6.2% | |
Communications | 50.5% | 45.9% | 49.0% | |
Consumer | 39.7% | 42.5% | 38.3% | |
Others | 7.5% | 8.0% | 6.5% | |
By Service Type | 4Q10 | 3Q10 | 4Q09 | |
Logic(1) | 93.1% | 90.2% | 90.2% | |
Memory(2) | 0.0% | 1.1% | 3.4% | |
Mask Making, testing, others | 6.9% | 8.7% | 6.4% | |
By Customer Type | 4Q10 | 3Q10 | 4Q09 | |
Fabless semiconductor companies | 79.6% | 75.3% | 64.4% | |
Integrated device manufacturers (IDM) | 16.7% | 15.2% | 17.4% | |
System companies and others | 3.7% | 9.5% | 18.2% | |
By Geography | 4Q10 | 3Q10 | 4Q09 | |
North America | 56.4% | 52.1% | 56.4% | |
China(3) | 31.2% | 32.2% | 21.9% | |
Eurasia(4) | 12.4% | 15.7% | 21.7% | |
Wafer Revenue Analysis |
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| |
By Technology (logic, memory & copper interconnect only) | 4Q10 | 3Q10 | 4Q09 | |
0.065um | 8.6% | 7.1% | 2.5% | |
0.09um | 15.4% | 16.2% | 16.2% | |
0.13um | 31.9% | 33.0% | 39.5% | |
0.15um | 1.2% | 2.3% | 2.7% | |
0.18um | 26.5% | 25.6% | 22.9% | |
0.25um | 0.5% | 0.5% | 0.3% | |
0.35um | 15.9% | 15.3% | 15.9% | |
Note: (1) Including 0.13um copper interconnects (2) DRAM (3) Including Hong Kong (4) Excluding China | ||||
Capacity* | |||
Fab / (Wafer Size) | 4Q10 | 3Q10 | |
Shanghai Mega Fab (8") | 86,000 | 86,000 | |
Beijing Mega Fab (12") | 52,425 | 50,625 | |
Tianjin Fab (8") | 33,300 | 33,300 | |
Total monthly wafer fabrication capacity | 171,725 | 169,925 | |
Note: * Wafers per month at the end of the period in 8" equivalent wafers | |||
Shipment and Utilization | ||||
8" equivalent wafers | 4Q10 | 3Q10 | 4Q09 | |
Wafer shipments including copper interconnects | 517,404 | 516,792 | 436,816 | |
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Utilization rate(1) | 96.8% | 96.4% | 91.5% | |
Note: (1) Capacity utilization based on total wafer out divided by estimated capacity | ||||
- Wafer shipments increased 0.1% QoQ to 517,404 units of 8-inch equivalent wafers in 4Q10 from 516,792 units of 8-inch equivalent wafers in 3Q10, and up 18.4% YoY from 436,816 8-inch equivalent wafers in 4Q09.
Detailed Financial Analysis Gross Profit Analysis | ||||||
Amounts in US$ thousands | 4Q10 | 3Q10 | QoQ | 4Q09 | YoY | |
Cost of sales | 313,248 | 309,440 | 1.2% | 307,669 | 1.8% | |
Depreciation | 106,014 | 116,501 | -9.0% | 142,196 | -25.4% | |
Other manufacturing costs | 206,565 | 192,941 | 7.1% | 162,501 | 27.1% | |
Share-based compensation | 669 | (2) | - | 1,010 | -33.8% | |
Gross profit | 98,594 | 100,640 | -2.0% | 25,421 | 287.8% | |
Gross margin | 23.9% | 24.5% |
| 7.6% |
| |
- Cost of sales increased to $313.2 million in 4Q10, up 1.2% QoQ from $309.4 million in 3Q10 primarily due to an increase in other manufacturing costs.
- Gross profit was $98.6 million in 4Q10, compared to a gross profit of $100.6 million in 3Q10 and gross profit of $25.4 million in 4Q09.
- Gross margin was 23.9% in 4Q10 from 24.5% in 3Q10 primarily due to an increase in other manufacturing costs.
Operating Expense Analysis | ||||||
Amounts in US$ thousands | 4Q10 | 3Q10 | QoQ | 4Q09 | YoY | |
Total operating expenses | 57,260 | 79,952 | -28.4% | 622,244 | -90.8% | |
Research and development | 47,054 | 47,377 | -0.7% | 43,806 | 7.4% | |
General and administrative | (6,960) | 16,754 | - | 151,520 | - | |
Selling and marketing | 8,662 | 7,771 | 11.5% | 7,760 | 11.6% | |
Amortization of intangible assets | 6,854 | 6,742 | 1.7% | 7,641 | -10.3% | |
(Gain) loss from disposal of properties | (1,654) | 1,307 | - | 3,585 | - | |
Impairment loss of long-lived assets | 3,304 | - | - | 138,295 | -97.6% | |
Litigation settlement | - | - | - | 269,637 | - | |
- Total operating expenses decreased to $57.3 million in 4Q10 from $80.0 million in 3Q10, a decrease of 28.4% QoQ driven by recovery from bad-debt write-off.
- R&D expenses decreased to $47.1 million in 4Q10, down 0.7% QoQ from $47.4 million in 3Q10 due to decrease in R&D experiments.
- G&A expenses was $(7.0) million in 4Q10, compared to an expense of $16.8 million in 3Q10 due to a $28.5 million recovery from bad-debt write-off.
- Selling & marketing expenses increased to $8.7 million in 4Q10, up 11.5% QoQ from $7.8 million in 3Q10 primarily due to an increase in selling activities and related fees.
- Impairment loss of long-lived assets of $3.3 million in 4Q10 due to write-off of assets held for sale.
Other Income (Expenses) | ||||||
Amounts in US$ thousands | 4Q10 | 3Q10 | QoQ | 4Q09 | YoY | |
Other income (expenses), net | 27,445 | 13,358 | 105.5% | (29,179) | - | |
Interest income | 1,340 | 1,030 | 30.1% | 886 | 51.2% | |
Interest expense | (3,594) | (6,781) | -47.0% | (2,874) | 25.1% | |
Change in the fair value of commitment to issue shares and warrants | - | 10,793 | -100.0% | (30,100) | - | |
Foreign currency exchange gain | 9,873 | 1,557 | 534.1% | 1,876 | 426.3% | |
Other, net | 19,826 | 6,759 | 193.3% | 1,033 | 1819.3% | |
- Other income increased to $27.4 million in 4Q10 from $13.4 million in 3Q10 primarily due to receiving a $14 million utilities subsidy from government.
- The Company recorded an overall foreign exchange gain of $3.1 million in 4Q10 as compared to an exchange gain of $1.4 million in 3Q10.
Depreciation and Amortization
- Total depreciation and amortization in 4Q10 was $133.7 million compared to $148.4 million in 3Q10 due to depreciated 8-inch production equipment.
Liquidity | |||
Amounts in US$ thousands | 4Q10 | 3Q10 | |
Cash and cash equivalents | 515,808 | 472,247 | |
Restricted cash | 161,350 | 95,958 | |
Accounts receivable | 206,623 | 210,491 | |
Inventories | 213,404 | 225,454 | |
Others | 81,917 | 87,253 | |
Total current assets | 1,179,102 | 1,093,403 | |
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Accounts payable | 515,577 | 407,747 | |
Short-term borrowings | 372,055 | 402,248 | |
Current portion of long-term debt | 333,459 | 215,671 | |
Others | 178,254 | 160,680 | |
Total current liabilities | 1,399,345 | 1,186,346 | |
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Cash Ratio | 0.4x | 0.4x | |
Quick Ratio | 0.5x | 0.5x | |
Current Ratio | 0.8x | 0.9x | |
Capital Structure | |||
Amounts in US$ thousands | 4Q10 | 3Q10 | |
Cash and cash equivalents | 515,808 | 472,247 | |
Restricted cash | 161,350 | 95,958 | |
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Current portion of promissory notes | 29,374 | 34,547 | |
Non-current portion of promissory notes | 56,327 | 70,414 | |
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Short-term borrowings | 372,055 | 402,248 | |
Current portion of long-term debt | 333,459 | 215,671 | |
Long-term debt | 178,596 | 307,459 | |
Total debt | 884,110 | 925,378 | |
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Equity | 2,169,537 | 1,995,798 | |
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Total debt to equity ratio | 40.8% | 46.4% | |
Cash Flow | |||
Amounts in US$ thousands | 4Q10 | 3Q10 | |
Net cash from operating activities | 248,632 | 125,170 | |
Net cash from investing activities | (246,458) | (164,825) | |
Net cash from financing activities | 41,087 | 5,550 | |
Effect of exchange rate changes | 299 | (195) | |
Net change in cash | 43,561 | (34,300) | |
Capex Summary
Capital expenditures for 4Q10 were $275.0 million.
Recent Highlights and Announcements
- Resignation of Alternate Director (2011-02-14)
- Notification of Board Meeting (2011-01-18)
- SMIC Adopts Cadence DFM and Low-power Silicon Realization Technology for 65-Nanometer Reference Flow (2010-12-04)
- Rockchip and SMIC in commercial production of 65-nm multimedia chips (2010-11-29)
- SMIC and Brite Semiconductor Collaborate to Provide Integrated IC Design and Manufacturing Services (2010-11-15)
- Synopsys and SMIC Team to Deliver Proven SoC Design Solution for 65-nm to 40-nm Process Nodes (2010-11-15)
- Grant of Options (2010-11-12)
- SMIC reports results for the three months ended September 30, 2010 (2010-11-02)
- SMIC to invest in Wuhan Xinxin, writing a new chapter in scientific development (2010-10-29)
- Notification of Board Meeting (2010-10-20)
- ARM and SMIC Extend Comprehensive Product Portfolio of Free Libraries of Physical IP to 65NM and 40NM ll Process Technology (2010-10-11)
Please visit SMIC's website at http://www.smics.com/website/enVersion/Press_Center/newsRelease.ftl for further details regarding the recent announcements.
Semiconductor Manufacturing International Corporation CONSOLIDATED BALANCE SHEETS (In US dollars, except per share data) | |||||
As of | |||||
December 31,2010 |
| September 30,2010 | |||
(Unaudited) |
| (Unaudited) | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 515,808,332 | 472,247,166 | |||
Restricted cash | 161,350,257 | 95,957,555 | |||
Short-term investments | 2,453,951 | 2,002,889 | |||
Accounts receivable, net of allowances of $49,373,296 and $77,543,500 at December 31 and September 30, 2010 respectively | 206,622,841 | 210,491,164 | |||
Inventories | 213,404,499 | 225,453,953 | |||
Prepaid expense and other current assets | 75,824,180 | 73,065,420 | |||
Assets held for sale | - | 8,746,412 | |||
Current portion of deferred tax assets | 3,638,427 | 5,538,685 | |||
Total current assets | 1,179,102,487 | 1,093,403,244 | |||
Prepaid land use rights | 78,798,287 | 79,234,001 | |||
Plant and equipment, net | 2,351,862,787 | 2,205,572,342 | |||
Acquired intangible assets, net | 173,820,851 | 176,426,548 | |||
Equity investment | 9,843,558 | 9,539,040 | |||
Other long-term assets | 215,178 | 202,062 | |||
Deferred tax assets | 109,050,066 | 106,957,439 | |||
TOTAL ASSETS | 3,902,693,214 |
| 3,671,334,676 | ||
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Accounts payable | 515,577,285 | 407,747,222 | |||
Accrued expenses and other current liabilities | 146,986,675 | 124,199,482 | |||
Short-term borrowings | 372,055,279 | 402,248,072 | |||
Current portion of promissory notes | 29,374,461 | 34,546,719 | |||
Current portion of long-term debt | 333,458,941 | 215,671,297 | |||
Income tax payable | 1,892,691 | 1,933,010 | |||
Total current liabilities | 1,399,345,332 |
| 1,186,345,802 | ||
Long-term liabilities: | |||||
Non-current portion of promissory notes | 56,327,268 | 70,414,305 | |||
Long-term debt | 178,596,008 | 307,459,182 | |||
Long-term payables relating to license agreements | - | 2,447,919 | |||
Other long-term liabilities | 58,788,806 | 72,191,325 | |||
Deferred tax liabilities | 1,094,257 | 1,051,692 | |||
Total long-term liabilities | 294,806,339 |
| 453,564,423 | ||
Total liabilities | 1,694,151,671 |
| 1,639,910,225 | ||
Noncontrolling interest | 39,004,168 | 35,626,849 | |||
Equity: | |||||
Ordinary shares, $0.0004 par value, 50,000,000,000 shares authorized, 27,334,063,747 and 25,793,035,903 shares issued and outstanding at December 31 and September 30, 2010, respectively | 10,933,707 | 10,317,215 | |||
Additional paid-in capital | 3,858,642,524 | 3,754,361,545 | |||
Accumulated other comprehensive loss | (1,092,291) | (1,364,352) | |||
Accumulated deficit | (1,698,946,565) | (1,767,516,805) | |||
Total equity | 2,169,537,375 |
| 1,995,797,603 | ||
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND EQUITY | 3,902,693,214 |
| 3,671,334,677 | ||
Semiconductor Manufacturing International Corporation CONSOLIDATED STATEMENT OF INCOME (In US dollars, except share data) | |||||
For the three months ended | |||||
December 31,2010 |
| September 30,2010 | |||
(Unaudited) |
| (Unaudited) | |||
Sales | 411,842,158 | 410,080,265 | |||
Cost of sales | 313,248,572 | 309,440,112 | |||
Gross profit | 98,593,585 |
| 100,640,153 | ||
Operating expenses: | |||||
Research and development | 47,053,945 | 47,376,950 | |||
General and administrative | (6,960,536) | 16,754,372 | |||
Selling and marketing | 8,662,290 | 7,771,330 | |||
Amortization of acquired intangible assets | 6,854,053 | 6,742,249 | |||
Impairment loss of long-lived assets | 3,304,125 | - | |||
(Gain) loss from sale of equipment and other fixed assets | (1,654,045) | 1,307,497 | |||
Total operating expenses, net | 57,259,831 |
| 79,952,398 | ||
Income from operations | 41,333,754 | 20,687,755 | |||
Other income (expense): | |||||
Interest income | 1,340,640 | 1,029,621 | |||
Interest expense | (3,593,901) | (6,781,385) | |||
Change in the fair value of commitment to issue shares and warrants | - | 10,793,350 | |||
Foreign currency exchange gain (loss) | 9,872,809 | 1,557,170 | |||
Other, net | 19,825,761 | 6,759,639 | |||
Total other income, net | 27,445,309 |
| 13,358,395 | ||
Income before income tax | 68,779,063 | 34,046,150 | |||
Income tax expense | (388,434) | (3,663,865) | |||
Gain from equity investment | 304,518 | 294,780 | |||
Net income | 68,695,148 |
| 30,707,065 | ||
Accretion of interest to noncontrolling interest | (264,657) | (264,658) | |||
Loss attributable to noncontrolling interest | 139,751 | ||||
Income (loss) attributable to Semiconductor Manufacturing International Corporation | 68,570,242 |
| 30,442,407 | ||
Earnings per share attributable to Semiconductor Manufacturing | 0.00 | 0.00 | |||
Earnings per share attributable to Semiconductor Manufacturing | 0.00 | 0.00 | |||
Earnings per ADS attributable to Semiconductor Manufacturing | 0.13 | 0.06 | |||
Earnings per ADS attributable to Semiconductor Manufacturing | 0.13 | 0.06 | |||
Shares used in calculating basic earnings per share | 26,547,114,260 | 25,566,696,208 | |||
Shares used in calculating diluted earnings per share | 26,748,653,881 | 25,747,346,720 | |||
Semiconductor Manufacturing International Corporation CONSOLIDATED STATEMENT OF CASH FLOWS (In US dollars) | |||||
For the three months ended | |||||
December 31,2010 |
| September 30,2010 | |||
(Unaudited) |
| (Unaudited) | |||
Operating activities | |||||
Net income | 68,695,148 | 30,707,065 | |||
Adjustments to reconcile net income to net cash provided by | |||||
Deferred tax | (249,805) | 2,947,304 | |||
(Gain) loss from sale of equipment and other fixed assets | (1,654,046) | 1,307,497 | |||
Depreciation and amortization | 124,595,630 | 141,501,326 | |||
Amortization of acquired intangible assets | 6,854,053 | 6,742,249 | |||
Share-based compensation | 2,214,330 | 194,180 | |||
Impairment loss of long-lived assets | 3,304,125 | - | |||
Non-cash interest expense on promissory note and long-term | 827,165 | 961,088 | |||
Gain from equity investment | (304,518) | (294,780) | |||
Change in the fair value of commitment to issue shares and warrants | - | (10,793,350) | |||
Allowance for doubtful accounts | 715,761 | 78,590 | |||
Other non-cash expense | 300,145 | 411,324 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 4,462,999 | (2,017,155) | |||
Inventories | 12,049,454 | (21,553,261) | |||
Prepaid expense and other current assets | (2,341,975) | (34,421,298) | |||
Prepaid land use rights | 59,821 | (82,190) | |||
Accounts payable | (6,027,491) | 11,685,232 | |||
Accrued expenses and other current liabilities | 26,672,780 | 12,697,175 | |||
Income tax payable | (40,319) | 1,839,211 | |||
Other long-term liabilities | (13,402,520) | 35,238,933 | |||
Changes in restricted cash relating to operating activities | 21,901,543 | (51,979,109) | |||
Net cash provided by operating activities | 248,632,281 | 125,170,031 | |||
Investing activities: | |||||
Purchase of plant and equipment | (173,340,947) | (157,530,751) | |||
Proceeds from government subsidy to purchase plant and equipment | 2,991,333 | - | |||
Proceeds from sale of equipment | (1,243,197) | 2,221,027 | |||
Proceeds received from sale of assets held for sale | 1,347,296 | 793,973 | |||
Purchases of intangible assets | 9,728,936 | (1,437,828) | |||
Purchase of short-term investments | (2,144,179) | (18,000,000) | |||
Sale of short-term investments | 1,726,550 | 16,007,758 | |||
Changes in restricted cash relating to investing activities | (87,294,244) | (6,879,667) | |||
Cash assumed from consolidation of a subsidiary | 1,770,603 | - | |||
Net cash used in investing activities | (246,457,850) | (164,825,487) | |||
Financing activities: | |||||
Proceeds from short-term borrowings | 155,849,042 | 261,120,000 | |||
Repayment of short-term borrowings | (186,041,834) | (216,259,018) | |||
Repayment of long-term debt | (11,075,530) | (117,190,654) | |||
Repayment of promissory notes | (20,000,000) | (20,000,000) | |||
Proceeds from issuance of ordinary shares | 102,000,000 | 97,122,212 | |||
Proceeds from exercise of employee stock options | 355,675 | 757,387 | |||
Net cash provided by financing activities | 41,087,352 | 5,549,927 | |||
Effect of exchange rate changes | 299,384 | (194,584) | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 43,561,167 | (34,300,113) | |||
CASH AND CASH EQUIVALENTS, beginning of period | 472,247,166 | 506,547,279 | |||
CASH AND CASH EQUIVALENTS, end of period | 515,808,333 | 472,247,166 | |||
SOURCE Semiconductor Manufacturing International Corporation
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