HSINCHU, Taiwan, May 11, 2017 /PRNewswire-FirstCall/ --
1Q17 Highlights (as compared to 4Q16):
- Net Revenue Above Guidance at US$150.1 Million Compared to US$153.6 Million
- Gross Profit of US$26.9 Million Compared to US$31.7 Million
- Gross Margin In-Line with Guidance at 17.9% Compared to 20.6%
- Net Earnings of US$1.82 Per Diluted ADS Compared to US$0.47 Per Diluted ADS
- Net Earnings of US$0.09 Per Diluted Common Share Compared to US$0.02 Per Diluted Common Share
- Completed ChipMOS Shanghai Equity Interest Transfer to Tsinghua Unigroup Led Strategic Investors Resulting in a US$62.8 Million Benefit to Net Income
- Retained Balance of Cash and Cash Equivalents at US$384.9 Million Compared to US$249.2 Million, with Net Debt Balance of US$3.6 Million
- Board Resolved on March 9, 2017 That NT$0.30 Per Common Share Will Be Distributed to Shareholders from Earnings and NT$0.70 Per Common Share Will Be Distributed to Shareholders from Capital Surplus. On An ADS Basis, The Total Amount Distributed to Shareholders Will Be Approximately US$0.66 Per ADS. The Distribution and its Date Are Pending Approval by Shareholders at the Company's Annual General Meeting on May 26, 2017.
ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the first quarter ended March 31, 2017. All U.S. dollar figures in this release are based on the exchange rate of NT$30.38 against US$1.00 as of March 31, 2017.
All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").
Net revenue for the first quarter of 2017 was NT$4,560.3 million or US$150.1 million, a decrease of 2.3% from NT$4,667.1 million or US$153.6 million in the fourth quarter of 2016 and an increase of 2.5% from NT$4,447.5 million or US$146.4 million for the same period in 2016. This compares to guidance for the first quarter of 2017 revenue to be approximately 4% to 8% lower than the prior fourth quarter of 2016.
Net earnings for the first quarter of 2017 was US$1.82 per diluted ADS, compared to US$0.47 per diluted ADS for the fourth quarter of 2016. Net income attributable to equity holders of the Company for the first quarter of 2017 was NT$2,380.1 million or US$78.3 million, and NT$2.82 or US$0.09 per basic common share and NT$2.77 or US$0.09 per diluted common share, as compared to net income attributable to equity holders of the Company for the fourth quarter of 2016 of NT$613.9 million or US$20.2 million, and NT$0.72 or US$0.02 per basic common share and NT$0.72 or US$0.02 per diluted common share, and compared to net income attributable to equity holders of the Company in the first quarter of 2016 of NT$348.4 million or US$11.5 million, and NT$0.40 or US$0.01 per basic common share and NT$0.40 or US$0.01 per diluted common share. Net income for the first quarter of 2017 includes US$62.8 million related to the completion of ChipMOS Shanghai equity interest transfer to Tsinghua Unigroup led investors ("Strategic Investors").
S.J. Cheng, Chairman and President of ChipMOS, said, "Revenue for the first quarter of 2017 came in above our guidance in what is traditionally the seasonally lowest quarter for the OSAT sector. This reflects strength in our LCD driver business, led by demand from both small and large panels. We expect the LCD driver demand environment will continue to improve in as we benefit from the ongoing 4K2K TV and UHD market development, combined with the anticipated smartphone recovery, led by new model introductions and technology innovations, including OLED, 3D sensing and fingerprint sensors. There was a mixed performance in our memory business, with commodity DRAM demand slightly higher in Q1 and flash-related revenue down approximately 9% compared to the prior fourth quarter. Revenue in our mixed-signal business was down slightly compared to 4Q16, which was offset by an uptick in our WLCSP revenue. We exited Q1 with our balance sheet in the strongest position in the Company's history and our growth prospects highly robust, bolstered by the diversification of our end markets, our unique position in the Taiwan and China supply chain and the positive demand outlooks of our key customers. With respect to the China market, we were pleased to report on March 24, 2017 that we completed the previously disclosed equity interest transfer to a group of Strategic Investors. We are excited to move forward with our partner Tsinghua Unigroup given the synergies, financial and strategic support, and critical advocacy of a powerful partner in the fast growing China market, which we expect to be central to our longer-term success."
S.K. Chen, Chief Financial Officer of ChipMOS, said, "We ended the first quarter with a balance of cash and cash equivalents of US$384.9 million , and a net debt balance of just US$3.6 million . We continue to execute on our core business, target sustainable higher margin growth opportunities, and prioritize capital expenditures in support of our long-term growth strategy in both Taiwan and China. Gross margin for the first quarter of 2017 came in at 17.9%, which was in-line with our guidance of 16% to 20%, while net earnings were US$1.82 per diluted ADS or US$0.09 per diluted common share. There were a variety of factors that adversely impacted first quarter results, including but not limited to, the higher accrual for employees' bonuses, and foreign exchange loss, which were offset by the positive impact of the closure of the ChipMOS Shanghai equity interest transfer, and an insurance settlement from the 2016 earthquake. Given the closure of our China JV and our historically strong balance sheet, we plan to move forward with our efforts to return capital to shareholders. As a next step, our Board resolved on March 9, 2017 that NT$0.30 per common share will be distributed to shareholders from earnings and NT$0.70 per common share will be distributed to shareholders from capital surplus. The total amount of cash to be distributed is NT$856.8 million or approximately US$28.2 million . On an ADS basis, the total amount distributed to shareholders will be approximately US$0.66 per ADS. The distribution date will be set pending shareholder approval of the distribution at the Company's annual general meeting on May 26, 2017 . We do not have an active share repurchase program in place at this time but have not ruled out putting a new one in place at a future date."