Year-over-year, fourth quarter revenue increased 42.6% while net income increased 162.5% and diluted EPS increased 162.7%. Compared to third quarter of 2009, fourth quarter results represent a 2.4% increase in revenue, a 6.9% increase in net income, and a 7.2% increase in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
Gross margin for the quarter was 48.5%, operating margin was 36.5%, and net margin was 35.5%.
As the global economy gradually recovered, fourth quarter saw a continued improvement in wafer sales with computer related applications growing strongly and consumer related applications declining seasonally.
Advanced process technologies (0.13-micron and below) accounted for 70% of wafer revenues. 90-nanometer process technology accounted for 16% of wafer revenues, 65-nanometer 30%, and 40-nanometer exceeded 9% of total wafer sales.
"Although first quarter normally is a sequentially declining quarter for all three major semiconductor applications, we expect the demand from consumer related applications to grow in first quarter of 2010, while computer and communication related applications will decline following their seasonal pattern," said Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our current business outlook, management expects":
* First quarter revenue to be between NT$89 billion and NT$91 billion,
gross profit margin to be between 46.5% and 48.5%, and operating profit
margin to be between 35% and 37%;
* 2010 capital expenditure to be around US$4.8 billion, due to strong
demand outlook for our advanced technologies.
Conference Call & Webcast Notice:
TSMC's quarterly review conference call will be held at 8 a.m. Eastern Time (9 p.m. Taiwan Time) on Thursday, January 28, 2010. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-213-8895 in the U.S., 852-3002-1672 in Hong Kong, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.
Profile
TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry's largest portfolio of process-proven libraries, IPs, design tools and reference flows. The Company's managed capacity in 2009 totaled 9.96 million (8-inch equivalent) wafers, including capacity from two advanced 12-inch GIGAFABs(TM), four eight-inch fabs, one six-inch fab, as well as TSMC's wholly owned subsidiaries, WaferTech and TSMC China, and its joint venture fab, SSMC. TSMC is the first foundry to provide 40nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please visit http://www.tsmc.com .
(Management Report and Tables Follow)
TSMC 4Q09 Quarterly Management Report January 28, 2010
Topics in This Report
-- Revenue Analysis
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow
-- CapEx & Capacity
-- Recap of Recent Important Events & Announcements
Operating Results Review:
Summary:
(Amounts are on consolidated basis
and are in NT billions except
otherwise noted) 4Q09 3Q09 4Q08 2009 2008
EPS (NT$ per common share) 1.26 1.18 0.48 3.44 3.81
(US$ per ADR unit) 0.19 0.18 0.07 0.52 0.61
Consolidated Net Sales 92.09 89.94 64.56 295.74 333.16
Gross Profit 44.70 42.86 20.19 129.33 141.75
Gross Margin 48.5% 47.7% 31.3% 43.7% 42.5%
Operating Expense (11.05) (10.87) (8.17) (37.37) (37.31)
Operating Income 33.64 31.99 12.02 91.96 104.44
Operating Margin 36.5% 35.6% 18.6% 31.1% 31.4%
Non-Operating Items 1.73 0.97 1.07 3.50 7.04
Net Income 32.67 30.55 12.45 89.22 99.93
Net Profit Margin 35.5% 34.0% 19.3% 30.2% 30.0%
Wafer Shipment (kpcs 8 inch-equiv.) 2,430 2,445 1,532 7,737 8,467
Note: Total outstanding shares were 25,903mn units on 12/31/09
Financial Highlights:
Fourth Quarter 2009
-- Consolidated net sales were NT$92.09 billion, increased 2.4% from
NT$89.94 billion in the prior quarter and 42.6% from NT$64.56 billion
in the year-ago quarter.
-- Gross margin was 48.5%, showing 0.8 percentage point increase from 3Q09
and a 17.2 percentage point increase from 4Q08.
-- Operating margin was 36.5%, 0.9 percentage point higher than 3Q09 and
17.9 percentage points higher than 4Q08.
-- Consolidated net income attributable to shareholders of the parent
company was NT$32.67 billion, increased 6.9% from 3Q09. Net profit
margin was 35.5% and diluted EPS was NT$1.26.
Full Year 2009
-- Consolidated net sales were NT$295.74 billion, representing an 11.2%
decline from 2008.
-- In spite of lower net sales, gross margin was 43.7%, increased 1.2
percentage points from 42.5% in 2008. Operating margin was 31.1%,
declined 0.3 percentage point from 2008.
-- Earnings per share was NT$3.44, with net profit margin of 30.2%.
I. Revenue Analysis
I. Wafer Sales Analysis
By Application 4Q09 3Q09 4Q08
Computer 33% 28% 30%
Communication 39% 42% 39%
Consumer 13% 16% 16%
Industrial/Others 15% 14% 15%
By Technology 4Q09 3Q09 4Q08
45/40nm 9% 4% 0%
65nm 30% 31% 27%
90nm 16% 18% 21%
0.11/0.13um 15% 14% 17%
0.15/0.18um 18% 21% 22%
0.25/0.35um 9% 9% 10%
0.50um+ 3% 3% 3%
By Customer Type 4Q09 3Q09 4Q08
Fabless/System 79% 80% 72%
IDM 21% 20% 28%
By Geography 4Q09 3Q09 4Q08
North America 71% 70% 72%
Asia Pacific 13% 13% 11%
China 3% 3% 2%
Europe 10% 11% 11%
Japan 3% 3% 4%
