UMC Reports Second Quarter 2010 Results
Profit hits 5-year high; strong growth in advanced processes for Q3
TAIPEI, Taiwan, Aug. 4 /PRNewswire-Asia/ --
Second Quarter 2010 Highlights(1):
-- Revenue increase: 11.3% QoQ to NT$29.75 billion (US$927 million)
-- Gross margin: 29.6%; operating margin: 18.3%
-- Capacity utilization: 100%
-- Net income: NT$5.27 billion (US$164 million)
-- Earnings per share: NT$0.42; earnings per ADS: US$0.065
(1) Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP, which differ in
some material respects from generally accepted accounting principles
in the United States. They are un-audited, unconsolidated, and
represent comparisons among the three-month period ending June 30,
2010, the three-month period ending March 31, 2010, and the equivalent
three-month period that ended June 30, 2009. For all 2Q10 results, New
Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at
the June 30, 2010 exchange rate of NT$32.11 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC; TSE:2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the second quarter of 2010.
Revenue increased 11.3% quarter-over-quarter to NT$29.75 billion, from NT$26.72 billion in 1Q10, and increased 31.5% year-over-year, from NT$22.63 billion in 2Q09. Gross margin was 29.6%, operating margin was 18.3%, net income was NT$5.27 billion, and earnings per ordinary share were NT$0.42.
Dr. Shih-Wei Sun, CEO of UMC, said, "Capacity utilization for the second quarter of 2010 was full, with shipments growing to a record 1,156 thousand 8-inch equivalent wafers. Revenue this quarter exceeded expectations, due to UMC's accelerated ramp-up of advanced process capacity and optimization of product mix. Revenue contribution from 65nm and below products grew more than 50% compared to the previous quarter, with 40nm output reaching 3% of revenue. As such, UMC achieved a 5-year high in operating income and an annualized ROE of more than 10% this quarter. Demand is expected to remain robust for advanced processes, driven by new applications and technology migration. Therefore, we are optimistic about third-quarter growth, anticipate rising revenues and profit, and maintain a healthy outlook for mid to long-term demand."
Dr. Sun continued, "UMC's successful efforts to customize advanced technology development and optimize product mix have led to an expanded customer base, increased sales, and greater profit capability. To continue boosting competitiveness and pursuing steady growth, UMC plans its capital expenditures based on careful assessments of mid to long-term demand and capacity expansion risks, according to our "customer-driven" perspective, so as to capture the robust growth momentum in addressable foundry markets. UMC plans to raise this year's capital expenditures to US$1.8 billion to satisfy customer demand for advanced technology and capacity."
Dr. Sun emphasized, "This invested CAPEX is being used to expand advanced capacity. Currently, advanced process equipment procurement and installation are proceeding smoothly. Singapore's Fab12i has been accelerating its 65/55nm capacity expansion to better serve our foundry customers this year. Fab 12A's Phase 3 cleanroom, already completed in July ahead of schedule and moving forward briskly with equipment installation, is expected to start production by year-end and increase 40nm production output at an accelerated pace next year. This expansion will gradually build up economy of scale and usher in a new wave of growth, producing a win-win situation with customers and boosting shareholders' return on equity."
Summary of Operating Results
Operating Results
QoQ % YoY %
(Amount: NT$ million) 2Q10 1Q10 change 2Q09 change
Revenue 29,745 26,715 11.3 22,628 31.5
Gross Profit 8,805 6,559 34.2 5,381 63.6
Operating Expenses (3,368) (3,115) 6.8 (2,685) 25.4
Operating Income 5,437 3,404 59.7 2,696 101.7
Non-Operating Income
(Expenses) 199 197 1.0 (901) --
Net Income 5,273 3,482 51.4 1,547 240.9
EPS (NT$ per share) 0.42 0.28 0.12
(US$ per ADS) 0.065 0.044 0.019
Revenue increased 11.3% QoQ to NT$29.75 billion from NT$26.72 billion in 1Q10, and increased 31.5% YoY from NT$22.63 billion in 2Q09. Gross profit was NT$8.81 billion, or 29.6% of revenue, compared to NT$6.56 billion, or 24.6% of 1Q10 revenue. Operating income for the quarter was NT$5.44 billion, or 18.3% of revenue, compared to NT$3.40 billion, or 12.7% of 1Q10 revenue. The increase in revenue was mainly due to improved product mix from 65nm and below technologies, increase in wafers shipped, and the NT dollar not appreciating as expected. Net income in 2Q10 was NT$5.27 billion, compared to NT$3.48 billion in 1Q10.
Earnings per ordinary share for the quarter were NT$0.42. Earnings per ADS(2) were US$0.065. The basic weighted average number of outstanding shares in 2Q10 was 12,449,924,578, compared with 12,638,040,544 shares in 1Q10 and 12,671,692,578 shares in 2Q09. The diluted weighted average number of outstanding shares was 12,581,805,800 in 2Q10, compared with 12,834,956,316 shares in 1Q10 and 12,677,712,645 shares in 2Q09. The fully diluted share count on June 30, 2010 was approximately 13,760,680,000. On June 30, 2010, UMC held 522 million treasury shares acquired from the 13th and 14th share buy-back programs.
(2) One ADS represents five Taiwan-listed ordinary shares.
Detailed Financials Section
COGS & Expenses
QoQ % YoY %
(Amount: NT$ million) 2Q10 1Q10 change 2Q09 change
Revenue 29,745 26,715 11.3 22,628 31.5
COGS (20,940) (20,156) 3.9 (17,247) 21.4
Depreciation (6,832) (6,907) (1.1) (8,861) (22.9)
Other Mfg. Costs (14,108) (13,249) 6.5 (8,386) 68.2
Gross Profit 8,805 6,559 34.2 5,381 63.6
Gross Margin (%) 29.6% 24.6% 23.8%
Total Operating Exp. (3,368) (3,155) 6.8 (2,685) 25.4
G&A (679) (603) 12.6 (454) 49.6
Sales & Marketing (553) (545) 1.5 (376) 47.1
R&D (2,136) (2,007) 6.4 (1,855) 15.1
Operating Income 5,437 3,404 59.7 2,696 101.7
Depreciation within COGS decreased to NT$6.83 billion. Other manufacturing costs increased to NT$14.11 billion due to ship-out quantity increase. Total operating expenses increased 6.8% to NT$3.37 billion. General and Administration expenses increased to NT$679 million mainly due to capital reserved for employee bonus. Sales & marketing expenses increased to NT$553 million, owing to an increase in IP royalty fees. R&D expenses increased to NT$2.14 billion mainly due to 300mm R&D activities. The total R&D expense was 7.2% of revenue in 2Q10.
Non-Operating Income (Expenses)
(Amount: NT$ million) 2Q10 1Q10 2Q09
Net Non-Operating Income (Exp.) 199 197 (901)
Net Interest Income 26 23 17
Net Investment Income (Loss) (203) 8 (1,586)
Gain on Disposal of Investment 157 77 788
Exchange Gain (Loss) 50 (30) (141)
Other Gain 169 119 21
Net non-operating income during 2Q10 was NT$199 million, which was relatively unchanged from the previous quarter.
Cash Flow Summary
For the 3-Month For the 3-Month
Period Ended Period Ended
(Amount: NT$ million) Jun. 30, 2010 Mar. 31, 2010
Cash Flow from Operating 12,089 12,008
Net Income 5,273 3,482
Depreciation & Amortization 7,725 8,081
Changes in Working Capital (1,271) 588
Other 362 (143)
Cash Flow from Investing (8,529) (11,555)
Capital Expenditures (8,873) (10,000)
Other 344 (1,555)
Cash Flow from Financing (6,583) (4,732)
Short-Term Loans 721 --
Long-Term Loans 200 100
Redemption of Long-Term Loans (11) --
Redemption of bonds (7,500) --
Purchase of treasury stock -- (4,844)
Other 7 12
Effect of Exchange Rate (7) 23
Net Cash Flow (3,030) (4,256)
Net cash outflow was NT$3.03 billion in 2Q10. Operating cash inflow was NT$12.09 billion. The investing cash outflow primarily reflects the CAPEX in 2Q10 of NT$8.87 billion. The NT$6.58 billion of financing cash outflow was primarily from the redemption of bonds. Free cash flow(3) for 2Q10 was NT$3.22 billion.
(3) Free cash flow = Operating cash flow - Capital expenditures
Current Assets
(Amount: NT$ billion) 2Q10 1Q10 2Q09
Cash & Cash Equivalents 45.51 48.54 37.90
Notes & Accounts Receivable 18.53 16.95 13.78
Days Sales Outstanding 54 57 40
Inventories 10.30 9.48 8.53
Avg. Inventory Turnover 44 42 42
Total Current Assets 83.84 84.26 63.90
Cash and cash equivalents decreased to NT$45.51 billion due to increased investment and financing cash outflow. During 2Q10, days sales outstanding decreased to 54 days. Inventory turnover increased to 44 days due to an increase in raw materials and work-in-process as a result of better business outlook.
Liabilities
(Amount: NT$ billion) 2Q10 1Q10 2Q09
Total Current Liabilities 38.01 34.66 19.96
Accounts Payable 5.66 5.26 4.44
Short-Term Credit / Bonds 6.30 12.89 7.51
Cash Dividends Payable 6.23 -- --
Payable on Equipment 7.57 5.06 1.80
Other 12.25 11.45 6.21
Long-Term Liabilities 0.92 0.80 0.79
Total Liabilities 42.42 38.94 24.24
Debt to Equity 21% 19% 13%
Current liabilities increased to NT$38.01 billion, mainly due to the addition of NT$6.23 billion cash dividends payable to shareholders and payable on equipment increasing to NT$7.57 billion. These were partially offset by the reduction of short-term credit/bonds to NT$ 6.30 billion, primarily due to the NT$7.50 billion redemption of bonds. Total liabilities increased to NT$42.42 billion in 2Q10. UMC's debt to equity ratio increased to 21%.
Analysis of Revenue(4)
Revenue Breakdown by Region
Region 2Q10 1Q10 4Q09 3Q09 2Q09
North America 46% 47% 51% 49% 47%
Asia Pacific 42% 42% 40% 41% 42%
Europe 11% 10% 8% 9% 10%
Japan 1% 1% 1% 1% 1%
The percentage of revenue from different regions remained largely unchanged quarter-over-quarter.
Revenue Breakdown by Geometry
Geometry 2Q10 1Q10 4Q09 3Q09 2Q09
40nm and below 3% 1% -- -- --
40nm < x <=65nm 21% 17% 17% 14% 12%
65nm < x <=90nm 18% 22% 25% 26% 27%
90nm < x <=0.13um 22% 25% 23% 21% 19%
0.13um < x <=0.18um 18% 18% 19% 21% 21%
0.18um < x <=0.35um 13% 11% 11% 13% 16%
0.5um and above 5% 6% 5% 5% 5%
Revenue from 65nm and below business accounted for 24% of total revenue. 40nm and below grew to 3% of UMC's revenue contribution during the quarter.
Revenue Breakdown by Customer Type
Customer Type 2Q10 1Q10 4Q09 3Q09 2Q09
Fabless 81% 81% 80% 79% 77%
IDM 19% 19% 20% 21% 23%
The percentage of revenue from fabless customers remains 81% in 2Q10.
Revenue Breakdown by Application (1)
Application 2Q10 1Q10 4Q09 3Q09 2Q09
Computer 13% 13% 11% 17% 15%
Communication 54% 59% 62% 59% 62%
Consumer 31% 26% 25% 23% 21%
Memory 1% 1% 0% 0% 1%
Others 1% 1% 2% 1% 1%
(1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM
drives ICs, LCD drivers, graphic processors, and PDAs. Communication
consists of xDSL, DSP, WLAN, LAN controllers, handset components,
caller ID devices, etc. Consumer consists of ICs used for DVD players,
game consoles, digital cameras, smart cards, toys, etc. Memory
consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM.
Demand was strong from all three segments, led by the consumer sector which accounted for 31% of total revenue in 2Q10. This improved ratio resulted from successful diversification of product mix and customer base expansion.
(4) Revenue in this section represents wafer sales.
Blended Average Selling Price Trend
The blended average selling price (ASP) increased in US dollar terms during 2Q10, mainly due to product mix shifting to more advanced technology nodes.
(To view ASP trend, visit
http://www.umc.com/english/investors/2Q10_ASP_trend.asp )
Shipment and Utilization Rate (5)
Wafer Shipments
2Q10 1Q10 4Q09 3Q09 2Q09
Wafer Shipments
(8" K equivalents) 1,156 1,033 990 1,017 898
Quarterly Capacity Utilization Rate
2Q10 1Q10 4Q09 3Q09 2Q09
Utilization Rate 100% 88% 86% 89% 79%
Total Capacity
(8" K equivalents) 1,183 1,154 1,132 1,152 1,151
Wafer shipments increased 11.9% sequentially to 1,156K in 2Q10, compared to 1,033K 8-inch equivalent wafers shipped in 1Q10. The overall utilization rate for the quarter was 100%.
(5) Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity(6)
Capacity during the second quarter was 1,183K 8-inch equivalent wafers. The increase of total capacity is mainly due to expansion of 65/55nm at Fab 12i. The estimated installed capacity in 3Q10 will increase to 1,220K 8-inch equivalent wafers mainly due to the continuous expansion plan at Fab12i.
(6) Estimated capacity numbers are based on calculated maximum output
rather than designed capacity. The actual capacity numbers may differ
depending upon equipment delivery schedules, pace of migration to more
advanced process technologies, and other factors affecting production
ramp-up.
Annual Capacity in thousands of 8-inch wafer equivalents
Geometry
FAB (um) 2009 2008 2007 2006
Fab6A 6" 3.5 - 0.45 328 328 328 328
Fab8A 8" 0.5 - 0.25 816 816 816 816
Fab8C 8" 0.35 - 0.11 405 417 400 400
Fab8D 8" 0.13 - 0.09 267 257 260 252
Fab8E 8" 0.5 - 0.18 408 408 408 406
Fab8F 8" 0.18 - 0.11 381 372 372 372
Fab8S (1) 8" 0.18 - 0.11 300 291 276 276
Fab12A 12" 0.18 - 0.040 866 876 847 754
Fab12i (2) 12" 0.13 - 0.065 815 742 601 413
Total (3) 4,586 4,507 4,308 4,017
YoY Growth Rate 2% 5% 7% 4%
Quarterly Capacity in thousands of 8-inch wafer equivalents
FAB 3Q10E 2Q10 1Q10 4Q09
Fab6A 83 83 82 82
Fab8A 204 204 204 204
Fab8C 90 90 96 99
Fab8D 81 78 71 68
Fab8E 102 102 102 102
Fab8F 98 96 96 96
Fab8S 77 75 75 75
Fab12A 210 209 209 200
Fab12i 275 245 219 206
Total (3) 1,220 1,183 1,154 1,132
(1) Former fab of SiSMC, which was acquired from Silicon Integrated
Systems in July 2004.
(2) Former fab of UMCi, a UMC wholly-owned subsidiary since December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(6 square/8 square) 8-inch
equivalent wafer; one 12-inch wafer is converted into 2.25(12 square/
8 square) 8-inch
CAPEX
UMC Capital Expenditure by Year -- in US$ billion
Year 2009 2008 2007 2006 2005 2004
CAPEX $0.55 $0.35 $0.9 $1.0 $0.7(1) $1.5
(1) 2005 CAPEX contained UMC 2005 full-year CAPEX and UMCi CAPEX during
1Q05.
2010 CAPEX Plan
8" 12" Total
UMC 13% 87% US$1.8 billion
The capital expenditure budget for 2010 is expected to increase to US$1.8 billion. By the end of the second quarter, UMC's year-to-date CAPEX totaled US$588 million.
Recent Developments / Announcements
Jul. 15, 2010 UMC Obtains Advanced Process Tools through Texas Instruments
Jul. 08, 2010 Dr. I. C. Chen Joins UMC as Vice President
Jun. 21, 2010 Elpida, PTI, and UMC Partner on 3D IC Integration
Development For Advanced Technologies Including 28nm
Jun. 15, 2010 UMC Shareholders Approve NT$0.5 Cash Dividend at Annual
Shareholders Meeting
May. 20, 2010 Investing in Taiwan as a Base in Establishing a Global
Presence
May. 03, 2010 UMC Files Form 20-F for 2009 with US Securities and Exchange
Commission
Apr. 28, 2010 UMC 1Q 2010 Financial Results
Please visit UMC's website for further details regarding the above announcements.
Third Quarter of 2010 Outlook & Guidance
Quarter-over-Quarter Guidance:
-- Wafer shipment growth in the low to mid single-digit percentage range
-- Wafer ASP increase approaching mid single-digit percentage
-- Capacity utilization: will remain full
-- Gross margin in the low-30% range
-- Growth momentum from all three segments, led by the consumer segment
-- Revenue contribution from 65nm and below: approximately 30%
-- 2010 CAPEX budget: US$1.8 billion
Conference Call / Webcast Announcement
Wednesday, August 4, 2010
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1 866 519 4004
UK Toll Free: 0808 234 6646
Singapore and Other Areas: +65 6723 9381
Access Code: UMC
A live webcast and replay of the 2Q10 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab12A in Taiwan and Singapore-based Fab12i are both in volume production for a variety of customer products. The company employs approximately 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward- looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in 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, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3, F-6 and 20-F, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP.
This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
-- FINANCIAL TABLES TO FOLLOW --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of June 30, 2010
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
June 30, 2010
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 1,417 45,506 18.3%
Financial Assets at Fair Value
through Profit or Loss, current 54 1,728 0.7%
Available-for-Sale Financial
Assets, current 182 5,859 2.4%
Notes & Accounts Receivable, net 577 18,531 7.5%
Inventories, net 321 10,300 4.2%
Other Current Assets 60 1,912 0.7%
Total Current Assets 2,611 83,836 33.8%
Non-Current Assets
Funds and Investments 2,028 65,129 26.3%
Property, Plant and Equipment,
net 2,898 93,069 37.5%
Other Assets 189 6,035 2.4%
Total Non-Current Assets 5,115 164,233 66.2%
TOTAL ASSETS 7,726 248,069 100.0%
LIABILITIES
Current Liabilities
Short-term Loans 23 729 0.3%
Financial Liabilities at Fair
Value through Profit or Loss,
current 52 1,661 0.7%
Payables 728 23,364 9.4%
Dividends Payable 194 6,233 2.5%
Current Portion of Long-term
Liabilities 174 5,575 2.2%
Other Current Liabilities 13 445 0.2%
Total Current Liabilities 1,184 38,007 15.3%
Non-Current Liabilities
Long-term Loans 28 915 0.4%
Other Liabilities 109 3,496 1.4%
Total Non-Current Liabilities 137 4,411 1.8%
TOTAL LIABILITIES 1,321 42,418 17.1%
STOCKHOLDERS' EQUITY
Capital Stock 4,045 129,879 52.4%
Additional Paid-in Capital 1,392 44,691 18.0%
Retained Earnings, Unrealized Gain
or Loss on Financial 1,178 37,815 15.2%
Instruments and Cumulative
Translation Adjustment
Treasury Stock (210) (6,734) (2.7%)
TOTAL STOCKHOLDERS' EQUITY 6,405 205,651 82.9%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 7,726 248,069 100.0%
Note New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2010 exchange rate of NT $32.11 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
June 30, 2010 June 30, 2009 %
US$ NT$ US$ NT$ Chg.
Net Sales 926 29,745 705 22,628 31.5%
Cost of Goods Sold (652) (20,940) (537) (17,247) 21.4%
Net Gross Profit 274 8,805 168 5,381 63.6%
29.6% 29.6% 23.8% 23.8% --
Operating Expenses
-- Sales & Marketing (17) (553) (12) (376) 47.1%
-- General & Administrative (21) (679) (14) (454) 49.6%
-- Research & Development (67) (2,136) (58) (1,855) 15.1%
(105) (3,368) (84) (2,685) 25.4%
Operating Income 169 5,437 84 2,696 101.7%
18.3% 18.3% 11.9% 11.9% --
Net Non-Operating Income
(Expenses) 4 130 (28) (901) --
Income from Continuing
Operations before Income Tax 173 5,567 56 1,795 210.1%
18.7% 18.7% 7.9% 7.9% --
Income Tax Expense (11) (363) (8) (248) 46.4%
Income from Continuing
Operations 162 5,204 48 1,547 236.4%
Extraordinary Gain 2 69 -- -- 100.0%
Net Income 164 5,273 48 1,547 240.9%
17.7% 17.7% 6.8% 6.8% --
Earnings per Share 0.013 0.42 0.004 0.12 --
Earnings per ADS (2) 0.065 2.10 0.019 0.60 --
Weighted Average Number of
Shares Outstanding
(in millions) -- 12,450 -- 12,672 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June
30, 2010 exchange rate of NT $32.11 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement (continued)
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
June 30, 2010 March 31, 2010 %
US$ NT$ US$ NT$ Chg.
Net Sales 926 29,745 832 26,715 11.3%
Cost of Goods Sold (652) (20,940) (628) (20,156) 3.9%
Net Gross Profit 274 8,805 204 6,559 34.2%
29.6% 29.6% 24.6% 24.6% --
Operating Expenses
-- Sales & Marketing (17) (553) (17) (545) 1.5%
-- General & Administrative (21) (679) (19) (603) 12.6%
-- Research & Development (67) (2,136) (62) (2,007) 6.4%
(105) (3,368) (98) (3,155) 6.8%
Operating Income 169 5,437 106 3,404 59.7%
18.3% 18.3% 12.7% 12.7% --
Net Non-Operating Income
(Expenses) 4 130 6 197 (34.0%)
Income from Continuing
Operations before Income
Tax 173 5,567 112 3,601 54.6%
18.7% 18.7% 13.5% 13.5% --
Income Tax Expense (11) (363) (4) (119) 205.0%
Income from Continuing
Operations 162 5,204 108 3,482 49.5%
Extraordinary Gain 2 69 -- -- 100.0%
Net Income 164 5,273 108 3,482 51.4%
17.7% 17.7% 13.0% 13.0% --
Earnings per Share 0.013 0.42 0.009 0.28 --
Earnings per ADS (2) 0.065 2.10 0.044 1.40 --
Weighted Average Number
of Shares Outstanding
(in millions) -- 12,450 -- 12,638 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June
30, 2010 exchange rate of NT $32.11 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month For the Six-Month Period
Period Ended Ended
June 30, 2010 June 30, 2010
US$ NT$ % US$ NT$ %
Net Sales 926 29,745 100.0% 1,758 56,460 100.0%
Cost of Goods Sold (652) (20,940) (70.4%) (1,280) (41,096) (72.8%)
Net Gross Profit 274 8,805 29.6% 478 15,364 27.2%
Operating Expenses
-- Sales & Marketing (17) (553) (1.8%) (34) (1,098) (1.9%)
-- General &
Administrative (21) (679) (2.3%) (40) (1,282) (2.3%)
-- Research &
Development (67) (2,136) (7.2%) (129) (4,143) (7.3%)
(105) (3,368) (11.3%) (203) (6,523) (11.5%)
Operating Income 169 5,437 18.3% 275 8,841 15.7%
Net Non-Operating Income
(Expenses) 4 130 0.4% 11 327 0.5%
Income from Continuing
Operations before
Income Tax 173 5,567 18.7% 286 9,168 16.2%
Income Tax Expense (11) (363) (1.2%) (15) (482) (0.8%)
Income from Continuing
Operations 162 5,204 17.5% 271 8,686 15.4%
Extraordinary Gain 2 69 0.2% 2 69 0.1%
Net Income 164 5,273 17.7% 273 8,755 15.5%
Earnings per Share 0.013 0.42 -- 0.022 0.70 --
Earnings per ADS (2) 0.065 2.10 -- 0.109 3.50 --
Weighted Average Number
of Shares
Outstanding (in millions) -- 12,450 -- -- 12,543 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June
30, 2010 exchange rate of NT $32.11 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Six-Month Period Ended June 30, 2010
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 273 8,755
Extraordinary gain (3) (83)
Depreciation & Amortization 492 15,806
Gain on recovery in market value
and obsolescence of inventories (9) (294)
Cash dividends received under the
equity method 9 299
Investment loss accounted for
under the equity method 6 202
Gain on valuation of financial
assets and liabilities (2) (60)
Gain on disposal of investments (7) (234)
Gain on disposal of property,
plant and equipment (0) (14)
Exchange loss on financial assets
and liabilities 1 33
Exchange loss on long-term
liabilities 1 21
Amortization of bond discounts 3 113
Amortization of deferred income (3) (82)
Compensation cost of share-based
payment 10 309
Changes in assets, liabilities
and others (21) (674)
Net cash provided by operating
activities 750 24,097
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial
assets 12 389
Proceed from sale of financial
assets measured at cost 3 84
Acquisition of long-term
investments accounted for under
the equity method (55) (1,782)
Proceeds from disposal of long-
term investments accounted for
the equity method 1 38
Proceeds from liquidation of
long-term investments 0 10
Acquisition of property, plant
and equipment (588) (18,873)
Proceeds from disposal of
property, plant and equipment 1 24
Proceeds from disposal of non-
current assets held for sale 12 401
Increase in deferred charges (8) (267)
Increase in other assets - others (3) (108)
Net cash used in investing activities (625) (20,084)
Cash flows from financing activities:
Proceeds from short-term loans 23 721
Proceeds from long-term loans 9 300
Repayments of long-term loans (0) (11)
Redemption of bonds (233) (7,500)
Exercise of employee stock
options 0 3
Purchase of treasury stock (151) (4,844)
Disposal of treasury stock 0 15
Increase in deposits-in 0 1
Net cash used by financing activities (352) (11,315)
Effect of exchange rate changes on
cash and cash equivalents 0 16
Net decrease in cash and cash
equivalents (227) (7,286)
Cash and cash equivalents at
beginning of period 1,644 52,792
Cash and cash equivalents at end of
period 1,417 45,506
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2010 exchange rate of NT $32.11 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Richard Yu
UMC, Investor Relations
Tel. +886-2-2700-6999, ext. 6951
Email: [email protected]
SOURCE United Microelectronic Corporation
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