UMC Reports First Quarter 2012 Results

Customer demand rebounds; 15% wafer shipment growth in Q2

(PRNewswire) —

TAIPEI, Taiwan, April 25, 2012 /PRNewswire-Asia/ --

First Quarter 2012 Overview (Note 1):

  • Revenue: decreased 2.7% QoQ to NT$23.77 billion (US$805.60 million)
  • Gross margin: 19.1%; operating margin: 5.6%
  • Capacity utilization: 71%
  • Net income: NT$1.34 billion (US$45.27 million)
  • Earnings per share: NT$0.11; earnings per ADS: US$0.019

Note 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 Mar 31, 2012, the three-month period ending Dec 31, 2011, and the equivalent three-month period that ended Mar 31, 2011. For all 1Q12 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Mar 31, 2012 exchange rate of NT$29.50 per U.S. Dollar.

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the first quarter of 2012.

Revenue was NT$23.77 billion, a 2.7% quarter-over-quarter decrease from NT$24.43 billion in 4Q11, and a 15.5% year-over-year decrease from NT$28.12 billion in 1Q11.  Gross margin was 19.1%, operating margin was 5.6%, net income was NT$1.34 billion, and earnings per ordinary share were NT$0.11

Dr. Shih-Wei Sun, CEO of UMC, said: "In 1Q 2012, UMC's profitability and revenue exceeded our expectations.  Wafer shipments reached 963 thousand 8-inch equivalent wafers, bringing overall capacity utilization to 71%.  Revenue contribution from 40nm increased to 9%.  For the second quarter, we expect wafer shipments to increase 15% as communication and consumer IC demand grows.  This projected growth reconfirms that the economic cycle trough seen in the first quarter signaled that the semiconductor industry's multi-quarter inventory correction has subsided."

Dr. Sun continued, "UMC is progressing smoothly on our advanced 28nm process technology.  We have successfully delivered 28nm flagship product samples to mobile communication and computing customers, with additional product tape-outs during last quarter.  We remain on track to enter volume production for UMC 28nm process in the second half of 2012.  Meanwhile, to effectively utilize existing 65nm and 90nm capacity, we are developing numerous specialty technologies to deliver more diversified and comprehensive customer foundry solutions for the future."

Dr. Sun added, "We are optimistic about the semiconductor industry's long-term development.  To solidify UMC's profitability and business growth, we will continue to follow the 'Customer-Driven Foundry Solutions' philosophy that involves internal technology R&D to fulfill customer needs.  Moreover, we are actively building sufficient capacity for 28nm technology. We believe that this node will enhance UMC's customer and product mix, average selling price, and profitability once volume production begins.  In the meantime, the Board of Directors has proposed for shareholders' approval of a 2011 cash dividend payout of NT$0.5 per share.  The resolution would maintain a 60% cash dividend payout ratio, even after this year's aggressive capacity expansion plans.  Looking ahead into next quarter, our consistent efforts will be directed towards timely management of customers' advanced capacity needs and completing all necessary 28nm preparation for volume production in order to maximize benefits to customers and UMC."

Summary of Operating Results


Operating Results

(Amount: NT$ million)

1Q12

4Q11

QoQ %
change

1Q11

YoY %
change

Revenue

23,765

24,425

(2.7)

28,118

(15.5)

Gross Profit

4,550

4,550

0.0

7,742

(41.2)

Operating Expenses

(3,226)

(3,710)

(13.0)

(3,300)

(2.2)

Operating Income

1,324

840

57.6

4,442

(70.2)

Non-Operating Income

169

149

13.4

432

(60.9)

Net Income

1,335

980

36.2

4,483

(70.2)

EPS  (NT$ per share)

0.11

0.08


0.36


         (US$ per ADS)

0.019

0.014


0.061



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