SMIC Reports 2010 Second 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, Aug. 10 /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 June 30, 2010.
Second Quarter 2010 Highlights:
-- Revenue up by 8.4% to $381.1 million in 2Q10 from $351.7 million in
1Q10 and up by 42.5% compared to 2Q09.
-- Gross margins improved to 15.6% in 2Q10 compared to 14.6% in 1Q10
primarily due to an increase in utilization.
-- Net cash flow from operations has increased to $167.5 million in 2Q10
from $153.3 million in 1Q10.
-- Gain attributable to holders of ordinary shares was US$96.0 million in
2Q10, compared to loss of US$181.9 million in 1Q10, driven by a change
in the fair value of US$105.9 million gain of commitment to grant
shares and warrants.
-- Fully diluted EPS was $0.20 per ADS.
Third Quarter 2010 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 range from 4% to 6% increase.
-- Gross margin is expected to range from 20% to 22%.
-- Operating expenses excluding foreign exchange differences are expected
to range from $80 million to $84 million.
-- 2010 annual capital expenditures expected to range from $700 million to
$750 million.
Commenting on the quarterly results, Dr. David NK Wang, President and Chief Executive Officer of SMIC remarked, "We've witnessed overall improvement this quarter, and believe we are on course to profitability. With the world's highest GDP growth, China's market is playing a progressively greater part in the overall demand for IC's and playing an increasingly key role in SMIC's future success. Driven by China's maturing fabless companies, our China revenue has grown 27.4% quarter-over-quarter. As Chinese fabless companies continue to grow stronger and stronger, SMIC has positioned itself to become the preferred foundry. North American customers continue to contribute more than half of our revenue, and we are working to build up the relationships through improved operations, technology and service.
From a technology stand-point, our 65-nanometer process is solid and ramping up, with shipments more than doubling quarter-over-quarter and likely to double again in the coming quarter. Our 45/40-nanometer development is well underway, and the technology will be ready by the end of 2010. We remain aggressive in turning this company around, determined to sustain our competitiveness by meeting our customers' needs with excellence while balancing increasing scale with sustainable profitability."
Conference Call / Webcast Announcement
Date: Wednesday, August 11, 2010
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 second 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=3254288 .
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 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation, and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. For more information, please visit: http://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 "Third Quarter 2010 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 Second Quarter 2010 Operating Results
Amounts in US$ thousands, except for EPS and operating data
2Q10 1Q10 QoQ 2Q09 YoY
Revenue 381,142 351,724 8.4 % 267,422 42.5 %
Cost of sales 321,755 300,270 7.2 % 280,319 14.8 %
Gross profit (loss) 59,387 51,454 15.4 % (12,897) --
Operating expenses 71,507 79,496 -10.0 % 81,606 -12.4 %
Loss from operations (12,120) (28,042) -56.8 % (94,503) -87.2 %
Other income (expenses),
net 101,812 (155,567) -- (5,802) --
Income tax credit 6,466 2,374 172.4 % 2,880 124.5 %
Net income (loss) after
income taxes 96,158 (181,235) -- (97,425) --
Income (Loss) from
equity investment 141 (455) -- (482) --
Net income (loss) 96,299 (181,690) -- (97,907) --
Accretion of interest to
noncontrolling interest (262) (259) 1.2 % (262) 0.0 %
Gain (Loss) attributable
to Semiconductor
Manufacturing
International
Corporation 96,037 (181,949) -- (98,169) --
Gross margin 15.6 % 14.6 % -4.8 %
Operating margin -3.2 % -8.0 % -35.3 %
Net income (loss) per
ordinary
share (basic)(1) 0.00 (0.01) (0.00)
Net income (loss) per
ADS (basic) 0.21 (0.41) (0.22)
Net income (loss) per
ordinary
share (diluted)(1) 0.00 (0.01) (0.00)
Net income (loss) per
ADS (diluted) 0.20 (0.41) (0.22)
Wafers shipped (in 8"
wafers)(2) 496,766 455,010 9.2 % 341,261 45.6 %
Capacity utilization 94.3 % 92.1 % 75.4 %
Note:
(1) Based on weighted average ordinary shares of 22,480 million (basic)
and 24,534 million (diluted) in 2Q10, 22,397 million (basic) and
22,397 million (diluted) in 1Q10 and 22,352 million (basic) and
22,352 million (diluted) in 2Q09
(2) Including copper interconnects
-- Revenue increased to $381.1 million in 2Q10, up 8.4% QoQ from $351.7
million in 1Q10 due to a 9.2% increase in wafer shipments resulting
largely from a change in the business model with our managed fabs,
Xinxin in Wuhan and Cension in Chengdu. Under the revised business
model, customers are to sign foundry service agreements directly with
SMIC, while the orders are outsourced to Xinxin and Cension. This model
results in a change in revenue booking methodology from a commission
model to a buy-and-resell model. Revenue from Xinxin and Cension
totalled $17.7 million, which was 4.6% of our total revenue.
-- Cost of sales increased to $321.8 million in 2Q10, up 7.2% QoQ from
$300.3 million in 1Q10.
-- Gross profit of $59.4 million in 2Q10, compared to a gross profit of
$51.5 million in 1Q10 and gross loss of $12.9 million in 2Q09.
-- Gross margins improved to 15.6% in 2Q10 from 14.6% in 1Q10 primarily
due to an increase in utilization.
-- Total operating expenses decreased to $71.5 million in 2Q10 from $79.5
million in 1Q10, a decrease of 10.0% QoQ driven by a decrease in G&A
related expenses and an impairment loss of long-lived assets in 1Q10.
-- R&D expenses decreased to $43.3 million in 2Q10, down 0.6% QoQ from
$43.6 million in 1Q10.
-- G&A expenses decreased to $15.0 million in 2Q10 from $17.6 million in
1Q10.
-- Selling & marketing expenses increased to $7.0 million in 2Q10, up
16.1% QoQ from $6.0 million in 1Q10.
Analysis of Revenues
Sales Analysis
By Application 2Q10 1Q10 2Q09
Computer 3.4 % 4.3 % 4.3 %
Communications 47.1 % 51.5 % 53.5 %
Consumer 42.2 % 37.0 % 36.1 %
Others 7.3 % 7.2 % 6.1 %
By Service Type 2Q10 1Q10 2Q09
Logic(1) 90.6 % 90.3 % 90.9 %
Memory 1.7 % 2.7 % 2.7 %
Mask Making, testing, others 7.7 % 7.0 % 6.4 %
By Customer Type 2Q10 1Q10 2Q09
Fabless semiconductor companies 66.1 % 66.4 % 65.1 %
Integrated device manufacturers (IDM) 16.1 % 17.0 % 18.2 %
System companies and others 17.8 % 16.6 % 16.7 %
By Geography 2Q10 1Q10 2Q09
North America 52.2 % 58.9 % 61.4 %
China(2) 28.7 % 24.4 % 19.0 %
Eurasia(3) 19.1 % 16.7 % 19.6 %
Wafer Revenue Analysis
By Technology (logic, memory & copper 2Q10 1Q10 2Q09
interconnect only)
0.09um and below 23.6 % 20.3 % 16.7 %
0.13um 32.2 % 35.5 % 29.7 %
0.15um 1.8 % 1.5 % 1.5 %
0.18um 26.8 % 24.2 % 29.8 %
0.25um 0.5 % 0.3 % 0.5 %
0.35um 15.1 % 18.2 % 21.8 %
Note:
(1) Including 0.13 m copper interconnects
(2) Including Hong Kong
(3) Excluding China
-- Advanced technology shipment comprising 0.13 m and below made up 55.8%
of overall wafer revenue in 2Q10.
Capacity*
Fab / (Wafer Size) 2Q10 1Q10
Shanghai Mega Fab (8") 84,000 84,000
Beijing Mega Fab (12") 46,125 46,800
Tianjin Fab (8") 33,000 34,300
Total monthly wafer fabrication capacity 163,125 165,100
Note:
* Wafers per month at the end of the period in 8" equivalent wafers
Shipment and Utilization
8" equivalent wafers 2Q10 1Q10 2Q09
Wafer shipments including copper
interconnects 496,766 455,010 341,261
Utilization rate(1) 94.3% 92.1% 75.4%
Note:
(1) Capacity utilization based on total wafer out divided by estimated
capacity
-- Wafer shipments increased 9.2% QoQ to 496,766 units of 8-inch
equivalent wafers in 2Q10 from 455,010 units of 8-inch equivalent
wafers in 1Q10, and up 45.6% YoY from 341,261 8-inch equivalent wafers
in 2Q09.
Detailed Financial Analysis
Gross Profit Analysis
Amounts in US$ thousands 2Q10 1Q10 QoQ 2Q09 YoY
Cost of sales 321,755 300,270 7.2% 280,319 14.8%
Depreciation 131,188 143,919 (8.8%) 146,763 (10.6%)
Other manufacturing
costs 189,620 155,119 22.2% 132,541 43.1%
Share-based compensation 947 1,232 (23.1%) 1,015 (6.7%)
Gross profit (loss) 59,387 51,454 15.4% (12,897) --
Gross margin 15.6% 14.6% (4.8%)
-- Cost of sales increased to $321.8 million in 2Q10, up 7.2% QoQ from
$300.3 million in 1Q10 primarily due to increase in wafer shipments.
-- Gross profit of $59.4 million in 2Q10, compared to a gross profit of
$51.5 million in 1Q10 and gross loss of $12.9 million in 2Q09.
-- Gross margins improved to 15.6% in 2Q10 from 14.6% in 1Q10 primarily
due to an increase in utilization.
Operating Expense Analysis
Amounts in US$ thousands 2Q10 1Q10 QoQ 2Q09 YoY
Total operating expenses 71,507 79,496 (10.0%) 81,606 (12.4%)
Research and development 43,330 43,592 (0.6%) 48,450 (10.6%)
General and administrative 15,017 17,601 (14.7%) 17,196 (12.7%)
Selling and marketing 7,019 6,045 16.1% 6,905 1.7%
Amortization of intangible
assets 6,686 6,886 (2.9%) 8,858 (24.5%)
(Gain) Loss from disposal of
properties (545) 233 -- 197 --
Impairment loss of long-lived
assets -- 5,138 -- -- --
-- Total operating expenses decreased to $71.5 million in 2Q10 from $79.5
million in 1Q10, a decrease of 10.0% QoQ driven by a decrease in G&A
related expenses and an impairment loss of long-lived assets in 1Q10.
-- R&D expenses decreased to $43.3 million in 2Q10, down 0.6% QoQ from
$43.6 million in 1Q10.
-- G&A expenses decreased to $15.0 million in 2Q10 from $17.6 million in
1Q10.
-- Selling & marketing expenses increased to $7.0 million in 2Q10, up
16.1% QoQ from $6.0 million in 1Q10.
Other Income (Expenses)
Amounts in US$ thousands 2Q10 1Q10 QoQ 2Q09 YoY
Other income (expenses) 101,812 (155,567) -- (5,802) --
Interest income 879 878 0.1% 635 38.4%
Interest expense (6,293) (7,784) (19.2%) (8,386) (25.0%)
Change in the fair value of
commitment to issue shares
and warrants 105,952 (146,561) -- -- --
Foreign currency exchange
(loss) gain (3,164) (3,241) (2.4%) 219 --
Other, net 4,438 1,141 289.0% 1,730 156.5%
-- Combined with the foreign exchange difference arising from operating
activities, the Company recorded an overall foreign exchange gain of
$2.2 million in 2Q10 as compared to a foreign exchange loss of $1.7
million in 1Q10.
-- Other income of $101.8 million in 2Q10 was mainly due to a change in
the fair value of the commitment to grant shares and warrants, compared
to an expense of $155.6 million in 1Q10.
Depreciation and Amortization
-- Total depreciation and amortization in 2Q10 was $164.9 million compared
to $174.7 million in 1Q10.
Liquidity
Amounts in US$ thousands 2Q10 1Q10
Cash and cash equivalents 506,547 523,208
Restricted cash 37,099 29,286
Accounts receivable 208,856 204,983
Inventories 203,901 194,604
Others 53,410 53,687
Total current assets 1,009,813 1,005,768
Accounts payable 254,967 237,075
Short-term borrowings 357,387 333,795
Current portion of long-term debt 275,294 204,442
Others 328,668 442,538
Total current liabilities 1,216,316 1,217,850
Cash Ratio 0.4x 0.4x
Quick Ratio 0.6x 0.6x
Current Ratio 0.8x 0.8x
Capital Structure
Amounts in US$ thousands 2Q10 1Q10
Cash and cash equivalents 506,547 523,208
Restricted cash 37,099 29,286
Current portion of promissory notes 54,164 59,163
Non-current portion of promissory notes 69,921 83,913
Short-term borrowings 357,387 333,795
Current portion of long-term debt 275,294 204,442
Long-term debt 365,027 515,876
Total debt 997,708 1,054,113
Total equity 1,717,011 1,618,038
Total debt to equity ratio 58.1% 65.1%
Cash Flow
Amounts in US$ thousands 2Q10 1Q10
Net cash from operating activities 167,495 153,316
Net cash from investing activities (107,885) (64,546)
Net cash from financing activities (75,757) (8,763)
Effect of exchange rate changes (514) (262)
Net change in cash (16,661) 79,745
Capex Summary
-- Capital expenditures for 2Q10 were $92 million.
Recent Highlights and Announcements
-- SMIC 65-nm Technology Successfully Moves to Volume Production
(2010-08-03)
-- Notification of Board Meeting (2010-07-29)
-- SMIC and Virage Logic Extend Partnership to 40nm LL Process Technology
(2010-07-22)
-- Overseas Regulatory Announcement (2010-07-21)
-- Completion of Placing of New Shares under General Mandate (2010-07-15)
-- Placing of New Shares under General Mandate (1) Potential Subscription
of New Shares under Special Mandate by Datang Telecom Technology &
Industry Holdings Co., Ltd. And (2) Release of Datang from Lock-up
Restriction; Non-exempt Connected Transactions; Pre-emptive Right of
TSMC (2010-07-08)
-- Potential Non-exempt Connected Transactions (1) Potential Exercise of
Pre-emptive Right and Further Subscription by Datang and (2) Release of
Datang from Lock-up Restriction; Pre-emptive Right of TSMC (2010-07-07)
-- Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 (2010-06-29)
-- Annual General Meeting held on June 3rd, 2010 Poll Results (2010-06-03)
-- Grant of Options (2010-05-25)
-- SMIC and Virage Logic Expand Partnership to Offer Virage Logic'S IP on
SMIC'S 65nm II Process (2010-05-24)
-- Synopsys Collaborates with SMIC to Deliver USB Logo-Certified
DesignWare USB 2.0 nanoPHY in SMIC's 65 Nanometer LL Process Technology
(2010-05-14)
-- Closure of Register of Members (2010-05-12)
-- SMIC Reports Results for The Three Months Ended March 31, 2010
(2010-05-11)
-- 2009 Annual Report (2010-04-29)
-- Circular - (1) Notice of AGM (2) Re-Election of Directors (3) Proposed
General Mandates to Issue and Repurchase Shares (4) Proposed Special
Mandate for Increasing The Limit on The Grant Of Equity Awards under
The 2004 Equity Incentive Plan (5) Proposed Amendments to The 2004
Equity Incentive Plan (2010-04-29)
-- Notification Letter and Change Request Form (2010-04-29)
-- Notice of Annual General Meeting (2010-04-29)
-- Notification of Board Meeting (2010-04-28)
-- Announcement of 2009 Annual Results (2010-04-26)
-- SMIC Issues Updates on First Quarter 2010 Financial Results and 2009
Annual Results (2010-04-19)
-- Notification of Approval of the publication of 2009 Annual Results by
the Board (2010-04-13)
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 share data)
As of
June 30, 2010 March 31, 2010
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents 506,547,279 523,207,927
Restricted cash 37,098,779 29,286,422
Accounts receivable, net of
allowances of $77,464,910 and
$96,111,136 at June 30 and
March 31, 2010, respectively 208,856,202 204,982,678
Inventories 203,900,692 194,604,324
Prepaid expense and other current
assets 38,703,151 32,269,099
Assets held for sale 9,167,973 13,244,958
Current portion of deferred tax
assets 5,538,552 8,173,216
Total current assets 1,009,812,628 1,005,768,624
Prepaid land use rights 79,537,003 77,550,315
Plant and equipment, net 2,053,713,421 2,129,575,807
Acquired intangible assets, net 181,805,429 177,109,741
Equity investment 9,244,259 9,392,886
Other long-term prepayments 143,033 214,588
Deferred tax assets 109,849,717 98,651,547
TOTAL ASSETS 3,444,105,490 3,498,263,508
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 254,967,307 237,075,087
Accrued expenses and other current
liabilities 113,563,072 116,494,349
Short-term borrowings 357,387,090 333,794,887
Current portion of promissory notes 54,164,481 59,163,022
Current portion of long-term debt 275,293,978 204,442,433
Commitment to issue shares and
warrants relating to litigation
settlement 160,846,576 266,798,990
Income tax payable 93,799 81,310
Total current liabilities 1,216,316,303 1,217,850,078
Long-term liabilities:
Non-current portion of promissory
notes 69,920,879 83,912,660
Long-term debt 365,027,154 515,875,782
Long-term payables relating to
license agreements 2,418,587 4,837,526
Other long-term liabilities 36,952,392 21,647,675
Deferred tax liabilities 1,096,532 1,001,293
Total long-term liabilities 475,415,544 627,274,936
Total liabilities 1,691,731,847 1,845,125,014
Noncontrolling interest 35,362,192 35,100,411
Equity:
Ordinary shares, $0.0004 par
value, 50,000,000,000 shares
authorized, 22,480,259,472 and
22,420,895,812 shares issued
and outstanding at June 30
and March 31, 2010, respectively 8,992,104 8,968,359
Additional paid-in capital 3,507,140,466 3,503,714,048
Accumulated other comprehensive
loss (1,161,906) (648,316)
Accumulated deficit (1,797,959,213) (1,893,996,008)
Total equity 1,717,011,451 1,618,038,083
TOTAL LIABILITIES, NONCONTROLLING
INTEREST AND EQUITY 3,444,105,490 3,498,263,508
Semiconductor Manufacturing International Corporation
CONSOLIDATED STATEMENT OF INCOME
(In US dollars, except share data)
For the three months ended
June 30, 2010 March 31, 2010
(Unaudited) (Unaudited)
Sales 381,142,152 351,724,012
Cost of sales 321,755,444 300,270,177
Gross profit 59,386,708 51,453,835
Operating expenses:
Research and development 43,329,679 43,592,355
General and administrative 15,017,028 17,601,140
Selling and marketing 7,019,386 6,045,489
Amortization of acquired intangible
assets 6,685,822 6,885,746
Impairment loss of long-lived assets -- 5,137,925
(Gain) loss from sale of equipment
and other fixed assets (545,040) 233,053
Total operating expenses, net 71,506,875 79,495,708
Loss from operations (12,120,167) (28,041,873)
Other income (expense):
Interest income 879,279 877,711
Interest expense (6,293,613) (7,783,555)
Change in the fair value of
commitment to issue shares and
warrants 105,952,415 (146,561,217)
Foreign currency exchange loss (3,164,049) (3,241,001)
Other, net 4,437,675 1,140,502
Total other income (expense), net 101,811,707 (155,567,560)
Gain (loss) before income tax 89,691,540 (183,609,433)
Income tax benefit 6,466,243 2,374,552
Gain (loss) from equity investment 140,793 (455,261)
Net gain (loss) 96,298,576 (181,690,142)
Accretion of interest to
noncontrolling interest (261,781) (258,904)
Gain (loss) attributable to
Semiconductor Manufacturing
International Corporation 96,036,795 (181,949,046)
Net gain (loss) per share
attributable to Semiconductor
Manufacturing International
Corporation ordinary
shareholders, basic 0.00 (0.01)
Net gain (loss) per share
attributable to Semiconductor
Manufacturing International
Corporation ordinary
shareholders, diluted 0.00 (0.01)
Net gain (loss) per ADS attributable
to Semiconductor Manufacturing
International Corporation ordinary
shareholders, basic 0.21 (0.41)
Net gain (loss) per ADS attributable
to Semiconductor Manufacturing
International Corporation ordinary
shareholders, diluted 0.20 (0.41)
Shares used in calculating basic
gain (loss) per share 22,480,222,740 22,396,835,456
Shares used in calculating diluted
gain (loss) per share 24,533,730,903 22,396,835,456
Semiconductor Manufacturing International Corporation
CONSOLIDATED STATEMENT OF CASH FLOWS
(In US dollars)
For the three months ended
June 30, 2010 March 31, 2010
(Unaudited) (Unaudited)
Operating activities
Net gain (loss) 96,298,576 (181,690,142)
Adjustments to reconcile net loss
to net cash provided by
operating activities:
Deferred tax (8,468,268) (4,326,783)
(Gain) loss from sale of equipment
and other fixed assets (545,040) 233,053
Depreciation and amortization 155,371,401 164,246,614
Amortization of acquired
intangible assets 6,685,823 6,885,746
Share-based compensation 2,802,616 3,583,507
Non-cash interest expense on
promissory note and long-term
payable relating to license
agreements 1,120,440 1,129,497
(Gain) loss from equity
investment (140,793) 455,261
Impairment loss of long-lived
assets -- 5,137,925
Change in the fair value of
commitment to issue
shares and warrants (105,952,415) 146,561,217
Allowance for doubtful accounts 315,823 (33,407)
Changes in operating assets and
liabilities:
Accounts receivable, net (4,189,347) (658,725)
Inventories (9,296,368) (899,129)
Prepaid expense and other current
assets (6,362,497) (3,210,079)
Accounts payable 19,833,793 8,714,410
Prepaid land use right (2,359,437) 222,141
Accrued expenses and other current
liabilities 7,063,135 6,973,898
Income tax payable 12,489 22,737
Other long-term liabilities 15,304,717 (32,015)
Net cash provided by operating
activities 167,494,648 153,315,726
Investing activities:
Purchase of plant and equipment (87,494,465) (73,172,437)
Proceeds from government subsidy
to purchase plant and equipment -- 23,884,935
Proceeds from sale of equipment 352,200 5,045,012
Proceeds received from sale of
assets held for sale 4,382,259 1,286,854
Purchases of intangible assets (17,309,010) (12,663,539)
Purchase of short-term
investments (3,000,000) (2,668,692)
Sale of short-term investments 2,997,000 2,668,692
Changes in restricted cash (7,812,357) (8,926,238)
Net cash used in investing
activities (107,884,373) (64,545,413)
Financing activities:
Proceeds from short-term
borrowings 128,442,986 171,264,418
Repayment of short-term
borrowings (104,850,783) (124,333,593)
Proceeds from long-term debt -- 10,000,000
Repayment of long-term debt (79,997,083) (46,118,964)
Repayment of promissory notes (20,000,000) (20,000,000)
Proceeds from exercise of
employee stock options 647,547 425,392
Net cash used in financing
activities (75,757,333) (8,762,747)
Effect of exchange rate changes (513,590) (262,153)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (16,660,648) 79,745,413
CASH AND CASH EQUIVALENTS,
beginning of period 523,207,927 443,462,514
CASH AND CASH EQUIVALENTS, end of
period 506,547,279 523,207,927
For more information, please contact:
Investor Relations
Phone: +86-21-3861-0000 x12804
Email: [email protected]
SOURCE Semiconductor Manufacturing International Corporation
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