UNITED MICROELECTRONICS CORPORATION TAIPEI, July 30, 2014 /PRNewswire/ --
Second Quarter 2014 Overview[1]:
-- Revenue: NT$35.87 billion (US$1.20 billion)
-- Gross margin: 22.9%; operating margin: 8.1%
-- Foundry capacity utilization rate: 90%
-- Net income attributable to the stockholders of the parent: NT$3.48
billion (US$117 million)
-- Earnings per share: NT$0.28; earnings per ADS: US$0.047
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2014.
Revenue was NT$35.87 billion, with gross margin at 22.9% and operating margin at 8.1%. Net income attributable to the stockholders of the parent was NT$3.48 billion, with earnings per ordinary share of NT$0.28.
Mr. Po-Wen Yen, CEO of UMC, said "In the second quarter of 2014, UMC recorded NT$32.57 billion in revenue from the foundry segment, with operating margin from foundry operations of 10.2%. Wafer shipments reached 1.426 million 8-inch equivalent wafers. Our 28nm business represented 1% of revenue, while 40nm accounted for 21%."
CEO Yen added, "Second quarter foundry revenue grew 13.4% sequentially, fueled by strong communication segment demand that lifted capacity utilization to 90%. Market conditions also reflected a turnaround, with rising demand for portable computing devices helping to drive our 28nm shipments. We project continued 28nm revenue contribution growth in 3Q14 as a result of the sustained demand for mobile and tablet computing. We are optimistic in the long term that our 28nm production ramp will strengthen our overall product mix and generate abundant opportunities for UMC to win additional foundry market share. For other technologies, we have strengthened the IP portfolio for our 55nm LP platform to address low power and wireless applications by offering Kilopass' Gusto and Cypress's SONOS embedded flash memories. These enhanced IP solutions will further diversify our manufacturing offerings to fulfill a broader range of specialty technology products on our proven and versatile 55LP platform. Designers in wearable and Internet of Things (IoT) applications have already realized product tape-outs using our 55LP technologies and IP."
CEO Yen continued, "We expect the semiconductor demand strength to continue into the third quarter of 2014. For 28nm momentum, our activities have increased, including IP verifications, customer tape outs on standalone products and product reliability qualifications. These 28nm customer collaborations will provide further traction heading into the second half of 2014. UMC will continue to broaden our customer base and penetrate additional high growth areas to expand customer adoption. We remain confident for the long term, as our sound business strategies, solid engineering execution and strong commitment to customer service will help ensure UMC's future business growth and deliver enhanced profitability to raise shareholder value."
[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Jun 30, 2014, the three-month period ending Mar 31, 2014, and the equivalent three-month period that ended Jun 30, 2013. For all 2Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2014 exchange rate of NT$ 29.86 per U.S. Dollar.
Summary of Operating Results
Operating Results
-----------------
(Amount: NT$ million) 2Q14 1Q14 QoQ % 2Q13 YoY %
change change
Net Operating Revenues 35,869 31,694 13.2 31,905 12.4
Gross Profit 8,207 5,901 39.1 6,177 32.9
Operating Expenses (5,280) (5,016) 5.3 (5,017) 5.2
Net Other Operating Income and Expenses (10) 56 - (11) (9.1)
Operating Income 2,917 941 210.0 1,149 153.9
Net Non-Operating Income and Expenses 937 351 167.0 631 48.5
Net Income Attributable to the Stockholders of the Parent 3,482 1,180 195.1 1,812 92.2
EPS (NT$ per share) 0.28 0.09 0.15
(US$ per ADS[2]) 0.047 0.015 0.025
--------------- ----- ----- -----
[2] One ADS represents five Taiwan-listed ordinary shares.
----------------------------------------------------------
Revenue increased 13.2% QoQ to NT$35.87 billion from NT$31.69 billion in 1Q14, and increased 12.4% YoY from NT$31.91 billion in 2Q13. Gross profit was NT$8.21 billion, or 22.9% of revenue, compared to NT$5.90 billion, or 18.6% of 1Q14 revenue. Operating income for the quarter was NT$2.92 billion, or 8.1% of revenue, compared to operating income of NT$0.94 billion, or 3.0% of 1Q14 revenue. Net income attributable to the stockholders of the parent in 2Q14 was NT$3.48 billion, compared to NT$1.18 billion in 1Q14.
Earnings per ordinary share for the quarter were NT$0.28. Earnings per ADS were US$0.047. The basic weighted average number of outstanding shares in 2Q14 was 12,489,095,718, compared with 12,479,924,736 shares in 1Q14 and 12,464,972,126 shares in 2Q13. The diluted weighted average number of outstanding shares was 12,607,860,758 in 2Q14, compared with 13,157,984,032 shares in 1Q14 and 13,236,433,274 shares in 2Q13. The fully diluted share count on June 30, 2014 was approximately 12,782,196,000. On June 30, 2014, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.
Detailed Financials Section
Revenue increase was mainly driven by foundry wafer shipment growth. Depreciation increased 6.3% QoQ to NT$8.66 billion, mainly due to the deployment of new 28nm tools at Fab 12A. Other manufacturing costs rose 7.7% sequentially from the increase in wafer shipments. Gross margin increased to 22.9% sequentially, to NT$8.21 billion. Sales & Marketing expenses rose to NT$1.10 billion, including the increase in mask and IP expenses. Research and development expenses was NT$3.33 billion, 9.3% of operating revenues.
COGS & Expenses
---------------
(Amount: NT$ million) 2Q14 1Q14 QoQ % 2Q13 YoY %
change change
--- ------ ------
Net Operating Revenues 35,869 31,694 13.2 31,905 12.4
COGS (27,662) (25,793) 7.2 (25,728) 7.5
Depreciation (8,662) (8,145) 6.3 (8,546) 1.4
Other Mfg. Costs (19,000) (17,648) 7.7 (17,182) 10.6
Gross Profit 8,207 5,901 39.1 6,177 32.9
Gross Margin (%) 22.9% 18.6% 19.4%
Operating Expenses (5,280) (5,016) 5.3 (5,017) 5.2
G&A (857) (848) 1.1 (966) (11.3)
Sales & Marketing (1,097) (833) 31.7 (800) 37.1
R&D (3,326) (3,335) (0.3) (3,251) 2.3
Net Other Operating (10) 56 - (11) (9.1)
Income & Expenses
Operating Income 2,917 941 210.0 1,149 153.9
---------------- ----- --- ----- ----- -----
Net non-operating income in 2Q14 was NT$937 million. Net interest expenses was NT$149 million, primarily from the redemption of bonds during 2Q14. The investment disposal gains were NT$792 million, including a NT$416 million gain from the sale of Epistar shares.
Non-Operating Income and Expenses
---------------------------------
(Amount: NT$ million) 2Q14 1Q14 2Q13
-------------------- ---- ---- ----
Non-Operating Income and Expenses 937 351 631
Net Interest Income and Expenses (149) (23) (83)
Net Investment Gain and Loss 188 (110) (33)
Gain and Loss on Disposal of Investment 792 367 671
Exchange Gain and Loss (4) 22 (11)
Other Gain and Loss 110 95 87
------------------- --- --- ---
Cash flow from operations generated NT$7.68 billion. CAPEX spending was NT$7.89 billion, including NT$7.75 billion from the foundry segment, resulting in free cash outflow of NT$204 million during 2Q14. Cash outflow from financing activities was NT$4.42 billion mainly due to the net redemption effect of NT$10.25 billion in bonds and issuance of NT$5.00 billion in new domestic bonds. Total cash outflow was NT$4.30 billion in 2Q14. Over the next 12 months, the company expects to repay NT$4.15 billion in bank loans.
Cash Flow Summary
-----------------
(Amount: NT$ million) For the 3-Month Period For the 3-Month Period
Ended Jun. 30, 2014 Ended Mar. 31, 2014
---
Cash Flow from Operating Activities 7,681 6,232
Net Income before tax 3,854 1,292
Depreciation & Amortization 9,949 9,850
Share of profit or loss of associates and joint ventures (132) 35
Gain on disposal of investments (792) (367)
Changes in Working Capital (5,002) (4,746)
Other (196) 168
Cash Flow from Investing Activities (7,032) (6,100)
Capital Expenditures (7,885) (6,277)
Proceeds from disposal of available-for-sale financial assets 1,102 529
Acquisition of intangible assets (428) (175)
Other 179 (177)
Cash Flow from Financing Activities (4,423) 2,395
Bank Loans 755 2,325
Bonds Issued 5,000 -
Redemption of Bonds (10,249) (57)
Other 71 127
Effect of Exchange Rate Changes (523) 573
on Cash and Cash Equivalents
Net Increase(Decrease) in Cash and Cash Equivalents (4,297) 3,100
Cash and Cash Equivalents of Disposal Group included in Non-Current Assets Held for Sale - (16)
Total Increase(Decrease) in Cash and Cash Equivalents (4,297) 3,084
----------------------------------------------------- ------ -----
Cash and cash equivalents decreased to NT$49.63 billion, reflecting CAPEX and bond redemption in 2Q14. Days of inventory decreased by three days to 47 days in 2Q14.
Current Assets
--------------
(Amount: NT$ billion) 2Q14 1Q14 2Q13
-------------------- ---- ---- ----
Cash and Cash Equivalents 49.63 53.92 50.65
Notes & Accounts Receivable 21.62 18.89 19.38
Days Sales Outstanding 52 51 53
Inventories, net 13.84 14.42 14.33
Days of Inventory 47 50 51
Total Current Assets 98.37 96.75 92.90
-------------------- ----- ----- -----
Current liabilities increased to NT$49.68 billion mainly due to the increase in payables on equipment acquisition and other current liabilities including increased accrual for dividend distribution of 2013. Debt to equity ratio increased to 41%.
Liabilities
-----------
(Amount: NT$ billion) 2Q14 1Q14 2Q13
-------------------- ---- ---- ----
Total Current Liabilities 49.68 49.24 57.62
Notes & Accounts Payable 6.85 7.15 7.17
Short-Term Credit / Bonds 15.75 24.42 23.51
Payables on Equipment 7.19 4.82 7.59
Other 19.89 12.85 19.35
Long-Term Credit / Bonds 31.92 27.66 28.54
Total Liabilities 88.69 83.85 93.19
Debt to Equity 41% 39% 44%
-------------- --- --- ---
Analysis of Revenue[3] for Foundry Segment
Revenue from Asia Pacific and Japan increased from 48% to 52% of sales, mainly due to stronger demand from Asia Pacific and Japan based communication and computer customers.
Revenue Breakdown by Region
---------------------------
Region 2Q14 1Q14 4Q13 3Q13 2Q13
------ ---- ---- ---- ---- ----
North America 43% 45% 47% 43% 47%
------------- --- --- --- --- ---
Asia Pacific 46% 45% 41% 44% 42%
------------ --- --- --- --- ---
Europe 5% 7% 8% 7% 8%
------ --- --- --- --- ---
Japan 6% 3% 4% 6% 3%
----- --- --- --- --- ---
28nm node represented 1% of revenue. 40nm revenue continued to grow and contributed 21% of foundry sales. 40nm and below technologies accounted for 22% of sales in 2Q14.
Revenue Breakdown by Geometry
-----------------------------
Geometry 2Q14 1Q14 4Q13 3Q13 2Q13
-------- ---- ---- ---- ---- ----
28nm and below 1% 0% 0% 0% 0%
-------------- --- --- --- --- ---
40nm
The percentage of revenue from IDM customers increased to 10%.
Revenue Breakdown by Customer Type
----------------------------------
Customer Type 2Q14 1Q14 4Q13 3Q13 2Q13
------------- ---- ---- ---- ---- ----
Fabless 90% 92% 89% 86% 90%
------- --- --- --- --- ---
IDM 10% 8% 11% 14% 10%
--- --- --- --- --- ---
Communication segment accounted for 49%, reflecting strong demand in mobile applications.
Revenue Breakdown by Application (1)
-----------------------------------
Application 2Q14 1Q14 4Q13 3Q13 2Q13
----------- ---- ---- ---- ---- ----
Computer 18% 18% 15% 16% 18%
-------- --- --- --- --- ---
Communication 49% 46% 49% 52% 51%
------------- --- --- --- --- ---
Consumer 29% 31% 31% 28% 28%
-------- --- --- --- --- ---
Others 4% 5% 5% 4% 3%
------ --- --- --- --- ---
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec,
keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN,
bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash
controller, game consoles, DSC, smart cards, toys, etc.
[3] Revenue in this section represents wafer sales
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) remained flat in 2Q14.
(To view ASP trend, visit http://www.umc.com/english/investors/2Q14_ASP_trend.asp )
Shipment and Utilization Rate[4] for Foundry Segment
Wafer shipments increased 13.4% QoQ to 1,426K in 2Q14, compared to 1,258K 8-inch equivalent wafers shipped in 1Q14. Overall utilization rate for the quarter was 90%.
Wafer Shipments
---------------
2Q14 1Q14 4Q13 3Q13 2Q13
---- ---- ---- ---- ----
Wafer Shipments 1,426 1,258 1,236 1,329 1,307
(8" K equivalents)
-----------------
Quarterly Capacity Utilization Rate
-----------------------------------
2Q14 1Q14 4Q13 3Q13 2Q13
---- ---- ---- ---- ----
Utilization Rate 90% 81% 79% 87% 85%
---------------- --- --- --- --- ---
Total Capacity 1,597 1,563 1,560 1,548 1,537
(8" K equivalents)
-----------------
[4] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity[5] for Foundry Segment
Capacity during the second quarter was 1,597K 8-inch equivalent wafers. The incremental increase in 34K 8-inch equivalent wafers during 2Q14 was primarily due to capacity expansion at Fab 12A, Fab 12i and Fab 8N. UMC's estimated capacity in 3Q14 will be 1,586K 8-inch equivalent wafers, due to the change in capacity profile at Fab 8D and capacity upgrades at Fab 12i.
Annual Capacity in Quarterly Capacity in
thousands of wafers thousands of wafers
------------------- -------------------
FAB Geometry 2013 2012 2011 2010 FAB 3Q14E 2Q14 1Q14 4Q13
(um)
--- ---
Fab6A 6" 3.5 - 0.45 448 481 538 588 Fab6A 113 113 111 113
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8A 8" 0.5 - 0.25 813 815 813 816 Fab8A 204 204 201 204
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8C 8" 0.35 - 0.11 347 360 359 366 Fab8C 87 87 86 87
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8D 8" 0.13 - 0.09 382 371 364 314 Fab8D 86 93 94 96
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8E 8" 0.5 - 0.18 418 449 469 410 Fab8E 105 105 103 105
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab8F 8" 0.18 - 0.11 388 389 388 388 Fab8F 98 98 96 98
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8S 8" 0.18 - 0.11 335 348 307 304 Fab8S 84 84 83 84
----- --- ----------- --- --- --- --- ----- --- --- --- ---
Fab8N 8" 0.5 - 0.13 469 - - - Fab8N 140 140 126 128
----- --- ---------- --- --- --- --- ----- --- --- --- ---
Fab12A 12" 0.18 - 0.028 651 579 501 374 Fab12A 174 174 171 164
------ --- ------------ --- --- --- --- ------ --- --- --- ---
Fab12i 12" 0.13 - 0.040 550 537 530 454 Fab12i 145 147 145 145
------ --- ------------ --- --- --- --- ------ --- --- --- ---
Total(1) 6,107 5,514 5,322 4,791 Total 1,586 1,597 1,563 1,560
======= ===== ===== ===== ===== ===== ===== ===== ===== =====
11% 4% 11% 4%
YoY Growth Rate
===
2010~2012 figures account for UMC parent company only.
======================================================
(1)One 6-inch wafer is converted into 0.5625(6(2)/8(2)) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(12(2)/8(2)) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.
==================================================================================================================================================================================================================================
[5] 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.
CAPEX for Foundry Segment
The foundry capital expenditure for 2014 will be US$1.3 billion. Spending during the first half of 2014 in the foundry segment was US$462 million.
Capital Expenditure by Year - in US$ billion
--------------------------------------------
Year 2013 2012 2011 2010 2009
---- ---- ---- ---- ---- ----
CAPEX $1.1 $1.7 $1.6 $1.8 $0.55
----- ---- ---- ---- ---- -----
2009~2012 figures account for UMC parent company only.
------------------------------------------------------
2014 CAPEX Plan
---------------
8" 12" Total
--- --- -----
13% 87% US$ 1.3
billion
--- --- -------
Third Quarter of 2014 Outlook & Guidance
Quarter-over-Quarter Guidance:
-- Foundry Segment Wafer Shipments: To increase by low single-digit
percentage range
-- Foundry Segment ASP in US$: To remain flat
-- Foundry Segment Profitability: Gross profit margin will be in the mid-20
percentage range
-- Foundry Segment Capacity Utilization: Low-90% range
-- 2014 CAPEX for Foundry Segment: US$1.3bn
-- Guidance to New Business Segment: Revenue to be approximately NT$1.2bn
and net loss attributable to UMC parent company to be approximately
NT$760mn
Recent Developments / Announcements
Jul. 14, 2014 Cypress Licenses 55-Nanometer
Embedded Flash IP to UMC
Jun. 11, 2014 UMC Shareholders Approve NT$0.50
Cash Dividend at Annual
Shareholders' Meeting
May 29, 2014 UMC Holds 2014 Japan Technology
Workshop
May 13, 2014 Kilopass' Gusto(TM) Ultra-Low
Power NVM IP for Code Storage
Enabled on UMC 55nm LP Process
Apr. 30, 2014 UMC 1Q 2014 Financial Results
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 30, 2014
Time: 5:00 PM (Taipei) /5:00
AM (New York) /10:00 AM
(London)
Dial-in numbers and Access Codes:
USA Toll Free: 1-800 871-3110, 1-888
700-7397
Taiwan Number: 02-2192-8016
Other Areas: +886-2-2192-8016
Access Code: UMC
A live webcast and replay of the 2Q14 results announcement will be available at www.umc.com under the "Investors / Events" section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC's robust foundry solutions allow chip designers to leverage the company's leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. 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 and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, 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
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 and reports on Form F-1, F-3, F-6 and 20-F and 6-K, 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 prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from 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 AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of June 30, 2014
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
June 30, 2014
-------------
US$ NT$ %
--- --- ---
Assets
Current assets
Cash and cash
equivalents 1,662 49,634 16.3%
Financial assets
at fair value
through profit
or loss, current 29 880 0.3%
Available-for-
sale financial
assets, current 91 2,729 0.9%
Notes & Accounts
receivable, net 724 21,616 7.1%
Inventories, net 464 13,844 4.6%
Other current
assets 324 9,671 3.2%
Total current
assets 3,294 98,374 32.4%
----- ------ ----
Non-current assets
Funds and
investments 1,184 35,364 11.6%
Property, plant
and equipment 5,258 157,002 51.7%
438 13,058 4.3%
Other non-current assets
6,880 205,424 67.6%
Total non-current assets
10,174 303,798 100.0%
Total assets
Liabilities
Current liabilities
Short-term loans 266 7,954 2.6%
Financial
liabilities at
fair value
through profit
or loss, current 0 4 0.0%
Payables 1,100 32,852 10.8%
Dividends payable 4 125 0.0%
Current portion
of long-term
liabilities 261 7,798 2.6%
Other current
liabilities 33 946 0.4%
Total current
liabilities 1,664 49,679 16.4%
----- ------ ----
Non-current liabilities
Bonds payable 836 24,976 8.2%
Long-term loans 233 6,947 2.3%
Other non-
current
liabilities 237 7,083 2.3%
Total non-
current
liabilities 1,306 39,006 12.8%
----- ------ ----
Total liabilities 2,970 88,685 29.2%
----- ------ ----
Equity
Equity attributable to the parent company
Capital 4,255 127,063 41.8%
Additional paid-
in capital 1,320 39,402 13.0%
Retained
earnings,
unrealized gain
or loss on
available-for-
sale 1,569 46,872 15.4%
financial assets and
exchange differences on
translation of
foreign operations
Treasury stock (79) (2,365) (0.8%)
Total equity
attributable to
the parent
company 7,065 210,972 69.4%
Non-controlling
interests 139 4,141 1.4%
--- ----- ---
Total equity 7,204 215,113 70.8%
----- ------- ----
Total liabilities
and equity 10,174 303,798 100.0%
====== ======= =====
Note?New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2014 exchange
rate of NT $29.86 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison Quarter over Quarter Comparison
------------------------- -------------------------------
Three-Month Period Ended Three-Month Period Ended
June 30, 2014 June 30, 2013 % June 30, 2014 March 31, 2014 %
------------- ------------- ------------- --------------
US$ NT$ US$ NT$ Chg. US$ NT$ US$ NT$ Chg.
--- --- --- --- ---- --- --- --- --- ----
Net operating revenues 1,201 35,869 1,068 31,905 12.4% 1,201 35,869 1,061 31,694 13.2%
Operating costs (926) (27,662) (861) (25,728) 7.5% (926) (27,662) (863) (25,793) 7.2%
Gross profit 275 8,207 207 6,177 32.9% 275 8,207 198 5,901 39.1%
--- ----- --- ----- ---- --- ----- --- ----- ----
22.9% 22.9% 19.4% 19.4% 22.9% 22.9% 18.6% 18.6%
Operating expenses
-Sales and marketing
expenses (37) (1,097) (27) (800) 37.1% (37) (1,097) (28) (833) 31.7%
-General and
administrative expenses (29) (857) (33) (966) (11.3%) (29) (857) (28) (848) 1.1%
-Research and
development expenses (111) (3,326) (109) (3,251) 2.3% (111) (3,326) (112) (3,335) (0.3%)
Subtotal (177) (5,280) (169) (5,017) 5.2% (177) (5,280) (168) (5,016) 5.3%
---- ------ ---- ------ --- ---- ------ ---- ------ ---
Net other operating
income and expenses (0) (10) (0) (11) (9.1%) (0) (10) 2 56 -
--- --- --- --- ----- --- --- --- --- ---
Operating income 98 2,917 38 1,149 100.0% 98 2,917 32 941 100.0%
8.1% 8.1% 3.6% 3.6% 8.1% 8.1% 3.0% 3.0%
Net non-operating income
and expenses 31 937 22 631 48.5% 31 937 11 351 100.0%
--- --- --- --- ---- --- --- --- --- -----
Income from continuing
operations before 129 3,854 60 1,780 100.0% 129 3,854 43 1,292 100.0%
income tax
10.7% 10.7% 5.6% 5.6% 10.7% 10.7% 4.1% 4.1%
Income tax expense (18) (528) (2) (42) 100.0% (18) (528) (6) (181) 100.0%
--- ---- --- --- ----- --- ---- --- ---- -----
Net income 111 3,326 58 1,738 91.4% 111 3,326 37 1,111 100.0%
9.3% 9.3% 5.4% 5.4% 9.3% 9.3% 3.5% 3.5%
Other comprehensive
income 4 103 12 350 (70.6%) 4 103 139 4,130 (97.5%)
--- --- --- --- ------ --- --- --- ----- ------
Total comprehensive
income 115 3,429 70 2,088 64.2% 115 3,429 176 5,241 (34.6%)
=== ===== === ===== ==== === ===== === ===== ======
Net income attributable to:
Stockholders of the
parent 117 3,482 61 1,812 92.2% 117 3,482 40 1,180 100.0%
Non-controlling interests (6) (156) (3) (74) 100.0% (6) (156) (3) (69) 100.0%
Comprehensive income attributable to:
Stockholders of the
parent 122 3,636 72 2,160 68.3% 122 3,636 176 5,261 (30.9%)
Non-controlling interests (7) (207) (2) (72) 100.0% (7) (207) (0) (20) 100.0%
Earnings per share-basic 0.009 0.28 0.005 0.15 0.009 0.28 0.003 0.09
----- ---- ----- ---- ----- ---- ----- ----
Earnings per ADS (2) 0.047 1.40 0.025 0.75 0.047 1.40 0.015 0.45
----- ---- ----- ---- ----- ---- ----- ----
Weighted average number of shares
outstanding (in millions) 12,489 12,465 12,489 12,480
------ ------ ------ ------
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2014 exchange rate of NT $29.86 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended For the Six-Month Period Ended
June 30, 2014 June 30, 2014
------------- -------------
US$ NT$ % US$ NT$ %
--- --- --- --- --- ---
Net operating revenues 1,201 35,869 100.0% 2,263 67,563 100.0%
Operating costs (926) (27,662) (77.1%) (1,791) (53,455) (79.1%)
Gross profit 275 8,207 22.9% 472 14,108 20.9%
--- ----- ---- --- ------ ----
Operating expenses
-Sales and marketing
expenses (37) (1,097) (3.0%) (65) (1,931) (2.9%)
-General and
administrative expenses (29) (857) (2.4%) (57) (1,705) (2.5%)
-Research and
development expenses (111) (3,326) (9.3%) (223) (6,660) (9.8%)
Subtotal (177) (5,280) (14.7%) (345) (10,296) (15.2%)
---- ------ ------ ---- ------- ------
Net other operating
income and expenses (0) (10) (0.1%) 2 45 0.0%
Operating income 98 2,917 8.1% 129 3,857 5.7%
Net non-operating income
and expenses 31 937 2.6% 43 1,289 1.9%
--- --- --- --- ----- ---
Income from continuing
operations before 129 3,854 10.7% 172 5,146 7.6%
income tax
Income tax expense (18) (528) (1.4%) (23) (709) (1.0%)
--- ---- ----- --- ---- -----
Net income 111 3,326 9.3% 149 4,437 6.6%
Other comprehensive
income 4 103 0.3% 141 4,233 6.2%
--- --- --- --- ----- ---
Total comprehensive
income 115 3,429 9.6% 290 8,670 12.8%
=== ===== === === ===== ====
Net income attributable to:
Stockholders of the
parent 117 3,482 9.7% 156 4,662 6.9%
Non-controlling interests (6) (156) (0.4%) (7) (225) (0.3%)
Comprehensive income attributable to:
Stockholders of the
parent 122 3,636 10.1% 298 8,897 13.2%
Non-controlling interests (7) (207) (0.5%) (8) (227) (0.4%)
Earnings per share-basic 0.009 0.28 0.012 0.37
----- ---- ----- ----
Earnings per ADS (2) 0.047 1.40 0.062 1.85
----- ---- ----- ----
Weighted average number of shares 12,489 12,485
outstanding (in millions)
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2014 exchange rate of NT $29.86 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Six-Month Period Ended June 30, 2014
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
--- ---
Cash flows from operating
activities :
Net income
before tax 172 5,146
Depreciation &
Amortization 663 19,799
Impairment loss
on financial
assets 5 163
Gain on
disposal of
investments (39) (1,159)
Changes in
notes &
accounts
receivable (165) (4,916)
Changes in
other current
assets (155) (4,642)
Changes in
assets,
liabilities
and others (15) (478)
--- ----
Net cash
provided by
operating
activities 466 13,913
Cash flows from investing
activities :
Acquisition of
available-
for-sales
financial
assets (4) (115)
Proceeds from
disposal of
available-
for-sale
financial
assets 55 1,631
Acquisition of
financial
assets
measured at
cost (16) (464)
Proceed from
sale of
financial
assets
measured at
cost 16 478
Acquisition
ofinvestments
accounted for
under the
equity method (4) (121)
Acquisition of
property,
plant and
equipment (474) (14,162)
Proceeds from
disposal of
property,
plant and
equipment 8 252
Acquisition of
intangible
assets (20) (603)
Others (1) (28)
--- ---
Net cash used
in investing
activities (440) (13,132)
Cash flows from financing
activities :
Increase in
short-term
loans 112 3,335
Proceeds from
bonds issued 167 5,000
Redemption of
bonds (345) (10,306)
Proceeds from
long-term
loans 33 1,000
Repayments of
long-term
loans (42) (1,256)
Others 7 199
--- ---
Net cash used
in financing
activities (68) (2,028)
Effect of
exchange rate
changes on
cash and cash
equivalents 2 50
--- ---
Net decrease in
cash and cash
equivalents (40) (1,197)
Cash and cash
equivalents at
beginning of
period 1,702 50,831
----- ------
Cash and cash
equivalents at
end of period 1,662 49,634
===== ======
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2014 exchange rate of NT $29.86 per U.S. Dollar.
All figures are prepared in accordance with TIFRSs.
Contacts:
Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16957
bowen_huang@umc.com
david_wong@umc.com
SOURCE United Microelectronics Corporation
