Company recognizes revenue contribution from
14nm shipments in 2Q17
Second Quarter 2017 Overview1:
- Revenue: NT$37.54 billion (US$1.23
billion)
- Gross margin: 18.0%
- Foundry revenue from 28nm: 17%;
Foundry operating margin: 4.7%
- Foundry capacity utilization rate:
96%
- Net income attributable to the
stockholders of the parent: NT$2.10 billion (US$69.00
million)
- Earnings per share: NT$0.17;
earnings per ADS: US$0.028
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 2017.
Second quarter consolidated revenue was NT$37.54 billion, up
from NT$37.42 billion in 1Q17 and up 1.5% YoY from NT$37.00 billion
in 2Q16. 2Q17 consolidated gross margin was 18.0%. Net income
attributable to the stockholders of the parent was NT$2.10 billion,
with earnings per ordinary share of NT$0.17.
Jason Wang, newly appointed co-president of UMC, said, “In the
second quarter of 2017, UMC’s foundry revenue was NT$37.45 billion.
Stable chip demand led to a utilization rate of 96%, bringing wafer
shipments to 1.74 million 8-inch equivalents. Gross margin was
18.1%. We experienced robust demand for our mature technologies on
both 8” and 12” manufacturing, led by strength in the computing and
communication segments.”
President Wang continued, “Looking into the third quarter,
demand for our mature technologies remains firm. However, due to a
softened outlook for 28nm, we project a sequentially flat quarter.
Our 28nm HKMG business has become increasingly vulnerable due to
high exposure among a few key customers. As a result, we are seeing
the possibility that the decline of our 28nm HKMG business will
extend into the second half of 2017.”
Co-president SC Chien added, “Recently, UMC’s board of directors
appointed Mr. Jason Wang and I as co-presidents. I will take the
lead in fab operations and technology development, while president
Wang will be responsible for business management and corporate
strategy. We will both implement measures to strengthen our foundry
competitiveness in core manufacturing and drive operational
efficiencies to enhance financial performance. Our goal is to
unlock UMC’s value and lead to positive cash flow.”
Summary of Operating Results
Operating Results (Amount: NT$ million)
2Q17 1Q17 QoQ %change
2Q16 YoY %change Net Operating
Revenues 37,538 37,418 0.3
36,997 1.5 Gross Profit 6,739 7,428 (9.3 ) 8,285 (18.7 )
Operating Expenses (5,330 ) (6,211 ) (14.2 ) (5,859 ) (9.0 ) Net
Other Operating Income and Expenses 259 154 68.2 23 1,026.1
Operating Income (Loss) 1,668 1,371 21.7 2,449 (31.9 ) Net
Non-Operating Income and Expenses 448 (304 ) - (650 ) - Net Income
Attributable to Stockholders of the Parent 2,099 2,286 (8.2 ) 2,583
(18.7 )
EPS (NT$ per share)
0.17 0.19 0.21
(US$ per ADS)
0.028 0.031
0.035
Net operating revenues remained flat in 2Q17 at NT$37.54
billion, including NT$37.45 billion from the foundry segment.
Revenue contribution from 14nm, 28nm and 40nm totaled 46%. Gross
profit declined 9.3% to NT$6.74 billion, or 18.0% of revenue.
Operating expenses decreased 14.2% to NT$5.33 billion. Net other
operating income was NT$259 million, leading to an operating income
of NT$1.67 billion. Net non-operating income was NT$448 million.
Net income attributable to stockholders of the parent was NT$2.10
billion.
Earnings per ordinary share for the quarter was NT$0.17.
Earnings per ADS was US$0.028. The basic weighted average number of
outstanding shares in 2Q17 was 12,208,239,978, compared with
12,208,239,978 shares in 1Q17 and 12,334,888,329 shares in 2Q16.
The diluted weighted average number of outstanding shares was
13,383,329,206 in 2Q17, compared with 13,418,016,296 shares in 1Q17
and 13,460,073,526 shares in 2Q16. The fully diluted share count on
June 30, 2017 was approximately 13,799,408,000. On June 30, 2017,
UMC held 400 million treasury shares acquired from the 16th and
17th share buy-back programs.
Detailed Financials Section
COGS & Expenses (Amount: NT$ million)
2Q17 1Q17 QoQ %change
2Q16 YoY %change Net Operating
Revenues 37,538 37,418 0.3
36,997 1.5 COGS (30,799 ) (29,990 ) 2.7 (28,712 ) 7.3
Depreciation (11,100 ) (11,032 ) 0.6 (11,264 ) (1.5 ) Other Mfg.
Costs (19,699 ) (18,958 ) 3.9 (17,448 ) 12.9 Gross Profit 6,739
7,428 (9.3 ) 8,285 (18.7 ) Gross Margin (%) 18.0 % 19.9 % 22.4 %
Operating Expenses (5,330 ) (6,211 ) (14.2 ) (5,859 ) (9.0 )
G&A (1,035 ) (1,050 ) (1.4 ) (1,541 ) (32.8 )
Sales & Marketing
(1,049 ) (1,170 ) (10.3 ) (1,092 ) (3.9 ) R&D (3,246 ) (3,991 )
(18.7 ) (3,226 ) 0.6 Net Other Operating
Income & Expenses
259 154 68.2 23 1,026.1 Operating Income
(Loss)
1,668 1,371 21.7
2,449 (31.9 )
Net operating revenues remained at NT$37.54 billion. COGS
increased to NT$30.80 billion, as depreciation was flat. Other
manufacturing costs increased 3.9% to NT$19.70 billion, partly from
higher wafer shipments. Gross profit was NT$6.74 billion. Operating
expenses declined 14.2% to NT$5.33 billion. Sales & Marketing
declined 10.3% to NT$1.05 billion. R&D expense decreased 18.7%
to NT$3.25 billion, or 8.6% of net operating revenues. Net other
operating income was NT$259 million, leading to an operating income
of NT$1.67 billion.
Non-Operating Income and Expenses (Amount: NT$ million)
2Q17 1Q17 2Q16 Non-Operating Income and
Expenses 448 (304 ) (650 ) Net Interest
Income and Expenses (502 ) (472 ) (154 ) Net Investment Gain and
Loss (44 ) 166 (504 ) Gain and Loss on Disposal of Investment 272
488 548 Exchange Gain and Loss 807 (517 ) (501 ) Other Gain and
Loss (85 ) 31 (39 )
Net non-operating income in 2Q17 increased to NT$448 million,
which primarily resulted from a NT$807 million in exchange gain and
a NT$272 million gain in disposal of investments.
Cash Flow Summary
(Amount: NT$ million)
For the 3-MonthPeriod EndedJun. 30,
2017
For the 3-MonthPeriod EndedMar. 31,
2017
Cash Flow from Operating Activities 14,817
13,311 Net income before tax 2,116 1,067 Depreciation &
Amortization 13,093 13,292 Gain on disposal of investments (272 )
(488 ) Impairment loss on financial assets 109 287 Exchange gain on
financial assets and liabilities (625 ) (624 ) Changes in working
capital 1,051 580 Income tax paid (232 ) (451 ) Other (423 ) (352 )
Cash Flow from Investing Activities (8,105 ) (16,293 ) Capital
expenditures (8,333 ) (17,654 ) Proceeds from disposal of AFS
financial assets 583 701 Acquisition of intangible assets (295 )
(378 ) Other (60 ) 1,038 Cash Flow from Financing Activities 707
7,845 Bank loans 8,054 783 Bonds Issued - 8,300 Redemption of bonds
(7,500 ) - Other 153 (1,238 ) Effect of Exchange Rate (97 ) (1,630
) Net Cash Flow 7,322 3,233
Cash inflow from operating activities reached NT$14.82 billion.
Cash outflow from investing activities totaled NT$8.11 billion,
including NT$8.33 billion in CAPEX spending for the foundry
segment, resulting in a free cash outflow of NT$6.48 billion. Cash
inflow from financing activities was NT$707 million, mainly due to
a NT$8.05 billion in bank loans offset by a NT$7.50 billion in
redemption of bonds. Net cash inflow in 2Q17 was NT$7.32 billion.
Over the next 12 months, the company expects to repay NT$1.44
billion in bank loans.
Current Assets (Amount: NT$ billion) 2Q17
1Q17 2Q16 Cash and Cash Equivalents
68.13 60.81 49.43 Notes & Accounts Receivable
22.23 20.88 24.53 Days Sales Outstanding 52 54 54 Inventories, net
16.28 16.26 17.59 Days of Inventory 48 51 53 Total Current Assets
120.08 111.54 103.60
Cash and cash equivalents increased to NT$68.13 billion, mainly
due a decrease in CAPEX spending in the foundry segment. Days of
inventory decreased to 48 days.
Liabilities (Amount: NT$ billion) 2Q17
1Q17 2Q16 Total Current Liabilities 87.70
66.87 80.05 Notes & Accounts Payable 6.65 6.44
7.58 Short-Term Credit / Bonds 48.19 36.34 33.48 Payable on
Equipment 5.28 6.41 14.94 Dividends payable 6.11 - 6.91 Other 21.47
17.68 17.14 Long-Term Credit / Bonds 51.24 62.31 40.47 Long-Term
Investment Liabilities 19.92 19.47 18.80 Total Liabilities 172.62
162.70 148.15 Debt to Equity 81 % 75 %
67 %
Current liabilities increased to NT$87.70 billion, which
included an increase in short-term credit/bonds NT$48.19 billion
and a NT$6.11 billion in dividends payable. Long-term credit/bonds
decreased to NT$51.24 billion. Total liabilities increased to
NT$172.62 billion, leading to a debt to equity ratio of 81%.
Analysis of Revenue2 for Foundry
Segment
Revenue Breakdown by Region Region 2Q17
1Q17 4Q16 3Q16
2Q16 North America 42% 41% 48%
52% 49% Asia Pacific 47% 50% 45%
42% 45% Europe 7% 5% 4% 4%
4% Japan 4% 4% 3% 2% 2%
Revenue from North American and European customers increased to
42% and 7% of sales respectively. Revenue contribution from Asia
Pacific customers decreased to 47%.
Revenue Breakdown by Geometry Geometry
2Q17 1Q17 4Q16
3Q16 2Q16 14nm and below 1% 0%
- - - 14nm<x<=28nm 17% 17%
22% 21% 17% 28nm<x<=40nm 28%
29% 26% 27% 26% 40nm<x<=65nm
12% 13% 14% 15% 18%
65nm<x<=90nm 5% 4% 3% 4%
4% 90nm<x<=0.13um 12% 11% 11% 11%
11% 0.13um<x<=0.18um 12% 13% 11%
11% 12% 0.18um<x<=0.35um 10% 10%
10% 8% 9% 0.5um and above 3% 3%
3% 3% 3%
14nm represented 1% of 2Q17 revenue, while 28nm contribution
remains at 17%. 40nm accounted for 28% of sales.
Revenue Breakdown by Customer Type Customer Type
2Q17 1Q17 4Q16
3Q16 2Q16 Fabless 91% 93%
93% 93% 93% IDM 9% 7% 7%
7% 7%
Revenue from fabless customers declined to 91% in 2Q17.
Revenue Breakdown by Application (1)
Application
2Q17 1Q17 4Q16
3Q16 2Q16 Computer 14% 12%
13% 12% 11% Communication 48%
51% 53% 55% 55% Consumer 29% 28%
26% 26% 27% Others 9% 9%
8% 7% 7%
Revenue from consumer and computer segments grew to 29% and 14%
respectively. Communication business decreased to 48%.
(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.
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) remained unchanged in
2Q17.
(To view ASP trend, visit
http://www.umc.com/english/investors/2Q17_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry
Segment
Wafer Shipments 2Q17 1Q17
4Q16 3Q16 2Q16 Wafer
Shipments(8” K equivalents) 1,741 1,678 1,656
1,569 1,514
Quarterly Capacity Utilization
Rate 2Q17 1Q17
4Q16 3Q16 2Q16 Utilization Rate
96% 96% 94% 89% 89% Total
Capacity(8” K equivalents) 1,816 1,742 1,794
1,774 1,723
Wafer shipments increased to 1,741K in 2Q17. Quarterly capacity
increased 4.2% QoQ to 1,816K, leading to an overall utilization
rate of 96% in 2Q17.
Capacity4 for Foundry Segment
Overall capacity in the second quarter was 1,816K 8-inch
equivalent wafers. Estimated capacity in the third quarter will
increase to 1,861K 8-inch equivalent wafers, primarily due to
capacity expansion at Fab 12X and enhancements to production
capabilities at Fab 8C, Fab 8F and Fab 8S.
Annual Capacity in
thousands of wafers
Quarterly Capacity in
thousands of wafers
FAB Geometry(um) 2016
2015 2014 2013 FAB
3Q17E 2Q17 1Q17
4Q16 WTK 6" 3.5 – 0.45 423
421 448 448
WTK 106 106
104 106
Fab 8A 8" 0.5 – 0.25
827 813 813 813
Fab 8A
207 207 204 207
Fab 8C 8"
0.35 – 0.11 348 347 347 347
Fab
8C 92 87 86 87
Fab 8D
8" 0.13 – 0.09 342 341 358 382
Fab 8D 86 86 84 86
Fab 8E
8" 0.5 – 0.18 419 418 418
418
Fab 8E 105 105 103 105
Fab 8F 8" 0.18 – 0.11 401 388
388 388
Fab 8F 107 102
100 102
Fab 8S 8" 0.18 – 0.11
336 335 335 335
Fab 8S 87
84 83 84
Fab 8N 8" 0.5 – 0.11
750 667 547 469
Fab 8N
188 188 185 188
Fab 12A 12"
0.13 – 0.028 885 793 700 651
Fab 12A 247 247 226 233
Fab
12i 12” 0.13 – 0.040 584 572
573 550
Fab 12i 134 134 137
148
Fab 12X 12” 0.040 9 -
- -
Fab 12X 33 19 10
9
Total(1) 6,983 6,617
6,323 6,107
Total 1,861
1,816 1,742 1,794 YoY Growth
Rate 6% 5% 4% 11%
(1)One 6-inch wafer is converted into 0.5625(62/82) 8-inch
equivalent wafer; one 12-inch wafer is converted into 2.25(122/82)
8-inch equivalent wafers. Capacity total figures are expressed in
8-inch equivalent wafers.
CAPEX for Foundry Segment
Capital Expenditure by Year - in US$ billion Year
2016 2015 2014 2013 2012 CAPEX $
2.8 $ 1.9 $ 1.4 $ 1.1 $ 1.7
2012 figures account for UMC parent
company only.
2017 CAPEX Plan
8" 12" Total 11% 89%
US$1.7 billion
CAPEX spending in 2Q17 totaled US$275 million. Full year 2017
CAPEX plan is budgeted for US$1.7 billion.
Third Quarter of 2017 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To remain flat
- ASP in USD: To remain flat
- Profitability: Gross profit margin will
be in the mid-teens % range
- Foundry Segment Capacity Utilization:
Low 90% range
- 2017 CAPEX for Foundry Segment: US$1.7
billion
Recent Developments / Announcements
Jun 14, 2017
UMC Restructures Executive Team
Jun. 8, 2017
UMC Shareholders Approve NT$0.50 Cash
Dividend at Annual General Meeting
Apr. 26, 2017
UMC1Q 2017 Financial Results
Please visit UMC’s website for further details
regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 26, 2017
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 2Q17 results
announcement will be available atwww.umc.com under the
“Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor
foundry that provides advanced IC production for applications
spanning every major sector of the electronics industry. UMC’s
comprehensive foundry solutions enable chip designers to leverage
the company’s sophisticated technology and manufacturing, which
include high volume 28nm High-K/Metal Gate technology, 14nm FinFET
mass production, ultra-low power platform processes specifically
developed for Internet of Things (IoT) applications and the
automotive industry’s highest-rated AEC-Q100 Grade-0 manufacturing
capabilities for the production of ICs found in vehicles. UMC’s 11
wafer fabs are strategically located throughout Asia and are able
to produce nearly 600,000 wafers per month. The company employs
over 19,000 people worldwide, with offices in Taiwan, 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 introduction of new services and
technologies, future outsourcing, competition, wafer capacity,
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. 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 United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended, and as defined in the United
States 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) dependence upon the frequent introduction of new
services and technologies based on the latest developments in the
industry in which UMC operates; (ii) the intensely competitive
semiconductor, communications, consumer electronics and computer
industries and markets; (iii) the risks associated with
international business activities; (iv) 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 natural disasters,
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 United States Securities and Exchange
Commission. All information provided in this release is as of the
date of this release and are based on assumptions that UMC believes
to be reasonable as of this date, and 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 Taiwan International Financial
Reporting Standards, or TIFRSs, recognized by the Financial
Supervisory Commission in the ROC, which is different from
International Financial Reporting Standards, or 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 generally accepted accounting principles
in the ROC and generally accepted accounting principles in the
United States.
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.
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, 2017, the three-month period ending Mar. 31, 2017, and the
equivalent three-month period that ended Jun. 30, 2016. For all
2Q17 results, New Taiwan Dollar (NT$) amounts have been converted
into U.S. Dollars at the Jun. 30, 2017 exchange rate of NT$ 30.42
per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly
Capacity
4 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.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet As of June 30, 2017
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) June 30, 2017 US$ NT$ %
Assets Current assets Cash and cash equivalents 2,240 68,134 17.7 %
Financial assets at fair value through profit or loss, current 26
800 0.2 % Notes & Accounts receivable, net 731 22,226 5.8 %
Inventories, net 535 16,285 4.2 % Other current assets 415
12,633 3.2 % Total current assets 3,947 120,078
31.1 % Non-current assets Funds and investments 1,180
35,907 9.3 % Property, plant and equipment 6,994 212,772 55.1 %
Other non-current assets 562 17,060 4.5 % Total
non-current assets 8,736 265,739 68.9 % Total assets
12,683 385,817 100.0 % Liabilities Current
liabilities Short-term loans 726 22,088 5.7 % Financial liabilities
at fair value through profit or loss, current 3 85 0.0 % Payables
923 28,072 7.2 % Dividends payable 201 6,112 1.6 % Current portion
of long-term liabilities 858 26,105 6.8 % Other current liabilities
172 5,234 1.4 % Total current liabilities 2,883
87,696 22.7 % Non-current liabilities Bonds
payable 601 18,280 4.7 % Long-term loans 1,083 32,957 8.5 % Other
non-current liabilities 1,108 33,688 8.8 % Total
non-current liabilities 2,792 84,925 22.0 % Total
liabilities 5,675 172,621 44.7 % Equity Equity
attributable to the parent company Capital 4,150 126,243 32.7 %
Additional paid-in capital 1,343 40,854 10.6 %
Retained earnings, unrealized gain or loss
on available-for-salefinancial assets and exchange differences on
translation offoreign operations
1,640 49,887 12.9 % Treasury stock (155 ) (4,719 ) (1.2 %) Total
equity attributable to the parent company 6,978 212,265 55.0 %
Non-controlling interests 30 931 0.3 % Total equity
7,008 213,196 55.3 % Total liabilities and equity
12,683 385,817 100.0 %
Note:New Taiwan Dollars have
been translated into U.S. Dollars at the June 30, 2017 exchange
rate of NT $30.42 per U.S. Dollar.
UNITED
MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated
Condensed Statements of Comprehensive Income Figures in
Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except
Per Share and Per ADS Data
Year over Year Comparison
Quarter over Quarter Comparison Three-Month Period Ended
Three-Month Period Ended June 30, 2017 June 30, 2016 Chg. June 30,
2017 March 31, 2017 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Net operating revenues 1,234 37,538 1,216 36,997 1.5 % 1,234
37,538 1,230 37,418 0.3 % Operating costs (1,012 ) (30,799 ) (944 )
(28,712 ) 7.3 % (1,012 ) (30,799 ) (986 ) (29,990 ) 2.7 % Gross
profit 222 6,739 272 8,285 (18.7 %) 222
6,739 244 7,428 (9.3 %) 18.0 % 18.0 %
22.4 % 22.4 % 18.0 % 18.0 % 19.9 % 19.9 % Operating expenses -
Sales and marketing expenses (34 ) (1,049 ) (36 ) (1,092 ) (3.9 %)
(34 ) (1,049 ) (38 ) (1,170 ) (10.3 %) - General and administrative
expenses (34 ) (1,035 ) (50 ) (1,541 ) (32.8 %) (34 ) (1,035 ) (35
) (1,050 ) (1.4 %) - Research and development expenses (107 )
(3,246 ) (106 ) (3,226 ) 0.6 % (107 ) (3,246 ) (131 ) (3,991 )
(18.7 %) Subtotal (175 ) (5,330 ) (192 ) (5,859 ) (9.0 %) (175 )
(5,330 ) (204 ) (6,211 ) (14.2 %) Net other operating income and
expenses 8 259 1 23 1,026.1 % 8
259 5 154 68.2 % Operating income 55 1,668 81
2,449 (31.9 %) 55 1,668 45 1,371 21.7 % 4.4 % 4.4 % 6.6 % 6.6 % 4.4
% 4.4 % 3.7 % 3.7 % Net non-operating income and expenses 15
448 (22 ) (650 ) - 15 448 (10 )
(304 ) - Income from continuing operations before
income tax
70 2,116 59 1,799 17.6 % 70 2,116 35 1,067 98.3 % 5.6 % 5.6 % 4.9 %
4.9 % 5.6 % 5.6 % 2.9 % 2.9 % Income tax benefit (expense)
(21 ) (638 ) (7 ) (220 ) 190.0 % (21 ) (638 ) 14 430
- Net income 49 1,478 52 1,579 (6.4 %) 49 1,478 49 1,497
(1.3 %) 3.9 % 3.9 % 4.3 % 4.3 % 3.9 % 3.9 % 4.0 % 4.0 %
Other comprehensive income (loss) 45 1,396 (32 ) (977
) - 45 1,396 (98 ) (2,997 ) -
Total comprehensive income (loss) 94 2,874 20
602 377.4 % 94 2,874 (49 ) (1,500 ) -
Net income attributable to:
Stockholders of the parent
69 2,099 85 2,583 (18.7 %) 69 2,099 75 2,286 (8.2 %)
Non-controlling interests
(20 ) (621 ) (33 ) (1,004 ) (38.1 %) (20 ) (621 ) (26 ) (789 )
(21.3 %) Comprehensive income (loss) attributable to:
Stockholders of the parent
115 3,488 54 1,635 113.3 % 115 3,488 (20 ) (599 ) -
Non-controlling interests
(21 ) (614 ) (34 ) (1,033 ) (40.6 %) (21 ) (614 ) (29 ) (901 )
(31.9 %) Earnings per share-basic 0.006 0.17
0.007 0.21 0.006 0.17 0.006 0.19
Earnings per ADS (2) 0.028 0.85 0.035
1.05 0.028 0.85 0.031 0.95
Weighted average number of shares outstanding (in millions) 12,208
12,335 12,208 12,208
Notes: (1) New Taiwan Dollars have been translated into U.S.
Dollars at the June 30, 2017 exchange rate of NT $30.42 per U.S.
Dollar. (2) 1 ADS equals 5 common shares.
UNITED
MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated
Condensed Statements of Comprehensive Income Figures in
Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except
Per Share and Per ADS Data For the
Three-Month Period Ended For the Six-Month Period Ended June 30,
2017 June 30, 2017 US$ NT$ % US$ NT$ % Net operating
revenues 1,234 37,538 100.0 % 2,464 74,956 100.0 % Operating costs
(1,012 ) (30,799 ) (82.0 %) (1,998 ) (60,788 ) (81.1 %) Gross
profit 222 6,739 18.0 % 466 14,168 18.9
% Operating expenses - Sales and marketing expenses
(34 ) (1,049 ) (2.8 %) (73 ) (2,220 ) (3.0 %) - General and
administrative expenses (34 ) (1,035 ) (2.8 %) (68 ) (2,085 ) (2.8
%) - Research and development expenses (107 ) (3,246 ) (8.6 %) (238
) (7,237 ) (9.6 %) Subtotal (175 ) (5,330 ) (14.2 %) (379 ) (11,542
) (15.4 %) Net other operating income and expenses 8 259
0.6 % 13 412 0.6 % Operating income 55 1,668
4.4 % 100 3,038 4.1 % Net non-operating income and expenses
15 448 1.2 % 5 146 0.1 %
Income from continuing operations
beforeincome tax
70 2,116 5.6 % 105 3,184 4.2 % Income tax expense (21
) (638 ) (1.7 %) (7 ) (209 ) (0.2 %) Net income 49 1,478 3.9 % 98
2,975 4.0 % Other comprehensive income (loss) 45
1,396 3.8 % (53 ) (1,601 ) (2.2 %) Total
comprehensive income (loss) 94 2,874 7.7 % 45
1,374 1.8 %
Net income attributable to:
Stockholders of the parent
69 2,099 5.6 % 144 4,385 5.9 %
Non-controlling interests
(20 ) (621 ) (1.7 %) (46 ) (1,410 ) (1.9 %)
Comprehensive income (loss) attributable
to:
Stockholders of the parent
115 3,488 9.3 % 95 2,888 3.9 %
Non-controlling interests
(21 ) (614 ) (1.6 %) (50 ) (1,514 ) (2.1 %) Earnings per
share-basic 0.006 0.17 0.012 0.36
Earnings per ADS (2) 0.028 0.85 0.059 1.80
Weighted average number of shares
outstanding (in millions)
12,208 12,208
Notes: (1) New
Taiwan Dollars have been translated into U.S. Dollars at the June
30, 2017 exchange rate of NT $30.42 per U.S. Dollar. (2) 1 ADS
equals 5 common shares.
UNITED MICROELECTRONICS
CORPORATION AND SUBSIDIARIES Consolidated Condensed
Statement of Cash Flows For The Six-Month Period Ended June 30,
2017 Figures in Millions of New Taiwan Dollars (NT$) and U.S.
Dollars (US$) US$ NT$
Cash flows from operating
activities : Net income before tax 105 3,184 Depreciation &
Amortization 867 26,385 Gain on disposal of investments (25 ) (761
) Exchange gain on financial assets and liabilities (41 ) (1,249 )
Changes in other current assets (25 ) (764 ) Changes in other
current liabilities 41 1,239 Changes in assets, liabilities and
others 3 94 Net cash provided by operating activities
925 28,128
Cash flows from investing activities :
Acquisition of available-for-sale financial assets (23 ) (691 )
Proceeds from disposal of available-for-sale financial assets 42
1,284 Proceeds from capital reduction and liquidation of
investments 65 1,980 Acquisition of property, plant and equipment
(854 ) (25,987 ) Acquisition of intangible assets (22 ) (673 )
Others (10 ) (311 ) Net cash used in investing activities (802 )
(24,398 )
Cash flows from financing activities :
Increase in short-term loans 86 2,604 Proceeds from bonds issued
273 8,300 Redemption of bonds (247 ) (7,500 ) Proceeds from
long-term loans 306 9,308 Repayments of long-term loans (101 )
(3,076 ) Acquisition of subsidiaries (40 ) (1,228 ) Others 4
144 Net cash provided by financing activities 281 8,552
Effect of exchange rate changes on cash and cash equivalents
(57 ) (1,727 ) Net Increase in cash and cash equivalents 347 10,555
Cash and cash equivalents at beginning of period 1,893
57,579 Cash and cash equivalents at end of
period 2,240 68,134
Note: New Taiwan Dollars have been translated into U.S.
Dollars at the June 30, 2017 exchange rate of NT $30.42 per U.S.
Dollar.
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UMCMichael Lin / David Wong, +886-2-2658-9168, ext.
16900Investor Relationsjinhong_lin@umc.comdavid_wong@umc.com