Proposed cash dividend of NT$0.70; company
currently engaged in share buyback program
First Quarter 2018 Overview1:
- Revenue: NT$37.50 billion (US$1.29
billion)
- Gross margin: 12.4%
- Foundry revenue from 28nm: 12%;
Foundry operating margin: 2.3%
- Foundry capacity utilization rate:
94%
- Net income attributable to
stockholders of the parent: NT$3.40 billion (US$117
million)
- Earnings per share: NT$0.28;
earnings per ADS: US$0.048
United Microelectronics Corporation (NYSE: UMC; TWSE:
2303) (“UMC” or “The Company”), a leading global semiconductor
foundry, today announced its consolidated operating results for the
first quarter of 2018.
First quarter consolidated revenue was NT$37.50 billion, up 2.4%
from NT$36.63 billion in 4Q17 and flat YoY from NT$37.42 billion in
1Q17. Consolidated gross margin for 1Q18 was 12.4%. Net income
attributable to stockholders of the parent was NT$3.40 billion,
with earnings per ordinary share of NT$0.28.
Jason Wang, co-president of UMC, said, “In the first quarter of
2018, despite the unfavorable movement of the NT dollar, our
foundry revenue increased 2.5% QoQ to NT$37.44 billion. Stable
loading across 8" and mature 12" technologies resulted in an
overall utilization rate of 94%, bringing wafer shipments to 1.75
million 8-inch equivalent wafers. Softening demand in smartphone
and other wireless devices was more than offset by strength in the
computer and consumer segments.”
Co-president Wang continued, “Looking into the second
quarter, we anticipate our wafer shipments to increase, mainly due
to growing business opportunities from wireless communication as
well as computer peripheral related chip demand. As we secure new
product tape outs across advanced and mature technologies including
28nm, we will leverage our collaborative efforts with customers
supported by UMC’s manufacturing excellence to enhance our market
share and financial results. While we focus on revenue and profit
growth, we also seek to maximize shareholder returns. Subject to
shareholders’ approval, the board of directors recently proposed a
cash dividend distribution of approximately NT$0.70 per share,
which constitutes around an 88% cash dividend payout ratio. In
addition, we began our 18th share buyback program in March 8, 2018
and will complete the purchase of shares for cancellation by May 7,
2018. Moving forward, we will continue to improve UMC’s
profitability and maintaining business growth to maximize benefits
to our shareholders.”
______________________
1 Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with TIFRSs recognized
by Financial Supervisory Commission in the ROC, which is different
from IFRSs issued by the International Accounting Standards Board.
They represent comparisons among the three-month period ending
March 31, 2018, the three-month period ending December 31, 2017,
and the equivalent three-month period that ended March 31, 2017.
For all 1Q18 results, New Taiwan Dollar (NT$) amounts have been
converted into U.S. Dollars at the March 31, 2018 exchange rate of
NT$ 29.11 per U.S. Dollar.
Summary of Operating
Results
Operating Results (Amount: NT$ million)
1Q18 4Q17
QoQ %change 1Q17
YoY %change Net Operating
Revenues 37,497 36,631
2.4 37,418
0.2 Gross Profit 4,642 6,298 (26.3 ) 7,428 (37.5 ) Operating
Expenses (4,850 ) (5,198 ) (6.7 ) (6,211 ) (21.9 ) Net Other
Operating Income and Expenses 977 801 22.0 154 534.4 Operating
Income 769 1,901 (59.5 ) 1,371 (43.9 ) Net Non-Operating Income and
Expenses 1,088 (152 ) - (304 ) - Net Income Attributable to
Stockholders of the Parent 3,400 1,771 92.0 2,286 48.7
EPS (NT$ per share)
0.28 0.15 0.19
(US$ per ADS)
0.048 0.026
0.033
Net operating revenues in 1Q18 increased 2.4% to NT$37.50
billion, including NT$37.44 billion from the foundry segment.
Revenue contribution from 40nm and below technologies remained flat
at 44%. Gross profit declined 26.3% to NT$4.64 billion, or 12.4% of
revenue. Operating expenses decreased 6.7% to NT$4.85 billion. Net
other operating income was NT$977 million, leading to operating
income of NT$0.77 billion. Net non-operating income was NT$1.09
billion. Net income attributable to stockholders of the parent was
NT$3.40 billion.
Earnings per ordinary share for the quarter was NT$0.28.
Earnings per ADS was US$0.048. The basic weighted average number of
outstanding shares in 1Q18 was 12,202,773,078, compared with
12,208,239,978 shares in 4Q17 and 12,208,239,978 shares in 1Q17.
The diluted weighted average number of outstanding shares was
13,457,161,259 in 1Q18, compared with 13,474,873,551 shares in 4Q17
and 13,418,016,296 shares in 1Q17. The fully diluted share count on
March 31, 2018 was approximately 13,839,101,000. On March 31, 2018,
UMC held 440 million treasury shares acquired from the 16th, 17th
and 18th share buy-back programs.
Detailed Financials
Section
Net operating revenues grew 2.4% to NT$37.50 billion. COGS
increased to NT$32.86 billion, as depreciation increased 7.5% to
NT$11.82 billion. Other manufacturing costs increased 8.8% to
NT$21.04 billion mainly from higher wafer shipments. Gross profit
was NT$4.64 billion. Operating expenses declined 6.7% to NT$4.85
billion. General and Administrative (G&A) expenses decreased
12.6% to NT$1.02 billion. Sales & Marketing declined 3.7% to
NT$0.91 billion and R&D expense fell 5.4% to NT$2.92 billion,
or 7.8% of net operating revenues. Net other operating income was
NT$977 million, leading to an operating income of NT$769
million.
COGS & Expenses (Amount: NT$ million)
1Q18 4Q17
QoQ %change
1Q17 YoY %change Net
Operating Revenues 37,497 36,631
2.4 37,418
0.2 COGS (32,855 ) (30,333 ) 8.3 (29,990 ) 9.6 Depreciation
(11,815 ) (10,990 ) 7.5 (11,032 ) 7.1 Other Mfg. Costs (21,040 )
(19,343 ) 8.8 (18,958 ) 11.0 Gross Profit 4,642 6,298 (26.3 ) 7,428
(37.5 ) Gross Margin (%) 12.4 % 17.2 % 19.9 % Operating Expenses
(4,850 ) (5,198 ) (6.7 ) (6,211 ) (21.9 ) G&A (1,017 ) (1,164 )
(12.6 ) (1,050 ) (3.1 ) Sales & Marketing (909 ) (944 ) (3.7 )
(1,170 ) (22.3 ) R&D (2,924 ) (3,090 ) (5.4 ) (3,991 ) (26.7 )
Net Other Operating
Income & Expenses
977 801 22.0 154 534.4 Operating Income 769
1,901 (59.5 )
1,371 (43.9 )
Net non-operating income in 1Q18 was NT$1.09 billion, which
primarily resulted from NT$1.02 billion in exchange gain and NT$582
million in net investment gain, which were partially offset by a
NT$529 million in net interest expenses.
Non-Operating Income and Expenses (Amount: NT$
million) 1Q18 4Q17
1Q17 Non-Operating Income and Expenses 1,088
(152 ) (304 ) Net
Interest Income and Expenses (529 ) (542 ) (472 ) Net Investment
Gain and Loss 582 (102 ) 654 Exchange Gain and Loss 1,021 500 (517
) Other Gain and Loss 14
(8 ) 31
Cash inflow from operating activities was NT$8.78 billion. Cash
inflow from investing activities amounted to NT$0.67 billion,
including NT$5.72 billion in CAPEX spending for the foundry
segment, resulting in free cash flow of NT$3.06 billion. Cash
outflow from financing activities totaled NT$13.71 billion, mainly
from NT$7.50 billion in redemption of bonds and NT$5.56 billion in
bank loans. Net cash outflow in 1Q18 was NT$4.53 billion. Over the
next 12 months, the company expects to repay NT$2.40 billion in
bank loans.
Cash Flow Summary
(Amount: NT$ million)
For the 3-Month
Period EndedMar. 31, 2018
For the 3-MonthPeriod EndedDec. 31,
2017
Cash Flow from Operating Activities 8,776
12,899 Net income before tax 1,857 1,749 Depreciation
& Amortization 13,288 13,227
Net gain of financial assets and
liabilities at FVTPL
(377 ) (86 )
Impairment loss on financial assets
- 254
Exchange gain on financial assets and
liabilities
(1,356 ) (642 ) Changes in working capital (3,231 ) (655 ) Income
tax paid (632 ) (152 ) Other (773 ) (796 ) Cash Flow from Investing
Activities 666 (6,034 ) Capital expenditures (5,716 ) (10,961 )
Proceeds from disposal of AFS financial
assets
- 313
Acquisition of intangible assets
(248 ) (360 ) Other 6,630 4,974 Cash Flow from Financing Activities
(13,714 ) 5,214 Bank loans (5,561 ) (41 ) Bonds Issued - 5,400
Redemption of bonds (7,500 ) - Other (653 ) (145 ) Effect of
Exchange Rate (260 ) (343 ) Net Cash Flow (4,532 )
11,736
Cash and cash equivalents decreased to NT$77.14 billion. Days of
inventory decreased to 49 days.
Current Assets (Amount: NT$ billion)
1Q18 4Q17 1Q17
Cash and Cash Equivalents 77.14
81.68 60.81 Notes & Accounts Receivable
25.01 20.97 20.88 Days Sales Outstanding 56 54 54 Inventories, net
17.14 18.26 16.26 Days of Inventory 49 53 51 Total Current Assets
136.42 139.16
111.54
Current liabilities decreased to NT$72.57 billion, mainly from a
decrease in Short-Term Credit/Bonds. Total liabilities declined to
NT$169.35 billion, leading to a debt to equity ratio of 78%.
Liabilities (Amount: NT$ billion)
1Q18 4Q17 1Q17
Total Current Liabilities 72.57
88.06 66.87 Notes & Accounts Payable 7.00
6.54 6.44 Short-Term Credit / Bonds 40.00 52.81 36.34 Payable on
Equipment 2.97 4.67 6.41 Other 22.60 24.04 17.68 Long-Term Credit /
Bonds 52.61 53.32 62.31 Long-Term Investment Liabilities 20.90
20.49 19.47 Total Liabilities 169.35 180.06 162.70 Debt to Equity
78% 84% 75%
Analysis of
Revenue2
for Foundry Segment
Revenue from Asia Pacific increased to 47% while the
contribution from North American customers declined to 42%. Revenue
from Japan remained at 3%.
Revenue Breakdown by Region Region
1Q18 4Q17
3Q17 2Q17
1Q17 North America 42 %
43 % 43 %
42 % 41 % Asia Pacific 47 %
45 % 47 %
47 % 50 % Europe 8 %
9 % 8 %
7 % 5 % Japan 3 %
3 % 2 % 4 %
4 %
Business from 14nm remained unchanged at 2% of 1Q18 revenue,
while 28nm contribution declined to 12%.
Revenue Breakdown by Geometry Geometry
1Q18 4Q17
3Q17 2Q17
1Q17 14nm and below 2 %
2 % 1 % 1 %
0 % 14nm<x<=28nm 12 %
15 % 15 %
17 % 17 % 28nm<x<=40nm
30 % 28 % 29 %
28 % 29 %
40nm<x<=65nm 13 % 12 %
12 % 12 %
13 % 65nm<x<=90nm 6 %
5 % 6 % 5 %
4 % 90nm<x<=0.13um 11 %
12 % 12 %
12 % 11 % 0.13um<x<=0.18um
13 % 13 % 12 %
12 % 13 % 0.18um<x<=0.35um
10 % 10 %
10 % 10 % 10 % 0.5um and
above 3 % 3 %
3 % 3 % 3 %
Fabless customers accounted for 92% of revenue in 1Q18.
Revenue Breakdown by Customer Type Customer
Type 1Q18
4Q17 3Q17
2Q17 1Q17 Fabless
92 % 91 % 90 %
91 % 93 % IDM
8 % 9 % 10
% 9 % 7 %
Communication segment represented 47% of sales while revenue
from consumer applications remained flat at 29%.
Revenue Breakdown by Application (1)
Application 1Q18
4Q17 3Q17
2Q17 1Q17 Computer
14 % 13 % 14 %
14 % 12 % Communication
47 % 49 % 47 %
48 % 51 % Consumer
29 % 29 % 31 %
29 % 28 % Others
10 % 9 % 8 %
9 % 9 %
(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.______________________2
Revenue in this section represents wafer sales
Blended ASP Trend for Foundry
Segment
Blended average selling price (ASP) in 1Q18 declined
slightly.
(To view ASP trend, visit
http://www.umc.com/english/investors/1Q18_ASP_trend.asp)
Shipment and Utilization
Rate3 for Foundry Segment
In 1Q18, wafer shipments grew 4.6% to 1,747K. Quarterly capacity
declined slightly to 1.5% QoQ or 1,858K, resulting in an overall
utilization rate of 94% in 1Q18.
Wafer Shipments
1Q18 4Q17
3Q17 2Q17
1Q17
Wafer Shipments(8” K equivalents)
1,747 1,670
1,748 1,741 1,678
Quarterly Capacity Utilization Rate
1Q18 4Q17
3Q17 2Q17
1Q17 Utilization Rate 94%
90% 96% 96%
96% Total Capacity(8” K equivalents) 1,858
1,886 1,861
1,816 1,742
3 Utilization Rate = Quarterly Wafer Out / Quarterly
CapacityCapacity4 for Foundry
Segment
Total capacity during the first quarter totaled 1,858K 8-inch
equivalent wafers. We foresee capacity in the second quarter to
grow 3.1% QoQ to 1,916K 8-inch equivalent wafers, mostly from
capacity expansion at Fab 12X.
Annual Capacity inthousands of
wafers
Quarterly Capacity inthousands
of wafers
FAB
Geometry(um)
2017
2016 2015
2014 FAB
2Q18E 1Q18
4Q17 3Q17 WTK 6"
3.5 – 0.45 422
423 421 448
WTK 106 104
106 106
Fab 8A 8"
0.5 – 0.25 825
827 813 813
Fab 8A 207 204
207 207
Fab 8C
8" 0.35 – 0.11 357
348 347
347
Fab 8C 92
91 92 92
Fab
8D 8" 0.13 – 0.09
341 342 341
358
Fab 8D 86
85 86 86
Fab 8E 8" 0.5 – 0.18
418 419 418
418
Fab 8E 105
103 105
105
Fab 8F 8" 0.18 – 0.11
417 401
388 388
Fab 8F
108 107 108
107
Fab 8S 8" 0.18
– 0.11 347 336
335 335
Fab 8S
93 92 93
87
Fab 8N 8"
0.5 – 0.11 753 750
667 547
Fab 8N
194 190
194 188
Fab 12A 12"
0.13 – 0.014 970
885 793 700
Fab 12A 250 246
250 247
Fab 12i
12" 0.13 – 0.040
537 584 572
573
Fab 12i 136
131 134 134
Fab
12X 12" 0.040 – 0.028
97 9 -
-
Fab 12X 45
35 35 33
Total(1) 7,304
6,983 6,617 6,323
Total 1,916
1,858 1,886
1,861 YoY Growth Rate 5%
6% 5% 4%
(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
CAPEX spending in 1Q18 was US$195 million. Full year 2018 CAPEX
plan is budgeted for US$1.1 billion.
Capital Expenditure by Year - in US$ billion
Year 2017 2016
2015 2014 2013
CAPEX $ 1.4 $ 2.8
$ 1.9 $ 1.4 $ 1.1
2018 CAPEX Plan
8"
12"
Total
33%
67%
US$1.1 billion
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.
Second Quarter of 2018 Outlook &
Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To increase 2-4%
- ASP in USD: To remain flat
- Profitability: Gross profit margin will
be in the mid-teens % range
- Foundry Segment Capacity Utilization:
Mid-90% range
- 2018 CAPEX for Foundry Segment: US$1.1
billion
Recent Developments /
Announcements
Apr. 3,
2018 UMC Fab 12i Wins
Singapore's Watermark AwardMar. 7,
2018 UMC Board of Directors
Announces Proposals for its Annual Shareholders Meeting
Jan. 24, 2018 UMC
4Q 2017 Financial Results
Please visit UMC’s website for further details
regarding the above announcements
Conference Call / Webcast
Announcement
Wednesday, April 25, 2018
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM
(London)
Dial-in numbers and Access Codes:USA Toll Free:
1-866 836-0101Taiwan
Number: 02-2192-8016Other Areas:
+886-2-2192-8016
Access Code: UMC
A live webcast and replay of the 1Q18 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.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION AND
SUBSIDIARIES
Consolidated Condensed Balance Sheet As of March 31, 2018
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) March 31, 2018 US$ NT$ % Assets Current
assets Cash and cash equivalents 2,650 77,143 20.0% Financial
assets at fair value through profit or loss, current 18 525 0.1%
Contract assets, current 5 135 0.0% Notes & Accounts
receivable, net 859 25,013 6.5% Inventories, net 589 17,137 4.4%
Other current assets 565 16,468 4.4% Total current assets 4,686
136,421 35.4% Non-current assets Funds and investments 1,239
36,079 9.4% Property, plant and equipment 6,756 196,664 51.0% Other
non-current assets 564 16,396 4.2% Total non-current assets 8,559
249,139 64.6% Total assets 13,245 385,560 100.0% Liabilities
Current liabilities Short-term loans 693 20,168 5.2% Contract
liabilities, current 104 3,028 0.8% Payables 837 24,375 6.3%
Current portion of long-term liabilities 681 19,829 5.2% Other
current liabilities 178 5,169 1.3% Total current liabilities 2,493
72,569 18.8% Non-current liabilities Bonds payable 813
23,677 6.1% Long-term loans 994 28,935 7.5% Other non-current
liabilities 1,518 44,167 11.5% Total non-current liabilities 3,325
96,779 25.1% Total liabilities 5,818 169,348 43.9% Equity
Equity attributable to the parent company Capital 4,337 126,243
32.7% Additional paid-in capital 1,426 41,524 10.8% Retained
earnings, unrealized gains or losses on financial
assets measured at fair value through
other comprehensive
income and exchange differences on
translation of foreign
operations
1,840 53,561 13.9% Treasury stock (183) (5,321) (1.4%) Total equity
attributable to the parent company 7,420 216,007 56.0%
Non-controlling interests 7 205 0.1% Total equity 7,427 216,212
56.1% Total liabilities and equity 13,245 385,560 100.0%
Note:New Taiwan Dollars have been translated into
U.S. Dollars at the March 31, 2018 exchange rate of NT $29.11 per
U.S. Dollar.
UNITED MICROELECTRONICS CORPORATION
AND SUBSIDIARIES Consolidated Condensed Statements of
Comprehensive Income Figures in Millions of New Taiwan Dollars
(NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data
Year over Year Comparison Quarter over Quarter
Comparison Three-Month Period Ended
Three-Month Period Ended March 31, 2018 March 31, 2017 Chg. March
31, 2018 December 31, 2017 Chg. US$ NT$ US$ NT$ % US$ NT$
US$ NT$ % Net operating revenues 1,288 37,497 1,285 37,418
0.2 % 1,288 37,497 1,258 36,631 2.4 % Operating costs (1,129 )
(32,855 ) (1,030 ) (29,990 ) 9.6 % (1,129 ) (32,855 ) (1,042 )
(30,333 ) 8.3 % Gross profit 159 4,642 255
7,428 (37.5 %) 159 4,642 216 6,298
(26.3 %) 12.4 % 12.4 % 19.9 % 19.9 % 12.4 % 12.4 % 17.2 %
17.2 % Operating expenses - Sales and marketing expenses (31 ) (909
) (40 ) (1,170 ) (22.3 %) (31 ) (909 ) (33 ) (944 ) (3.7 %) -
General and administrative expenses (35 ) (1,017 ) (36 ) (1,050 )
(3.1 %) (35 ) (1,017 ) (40 ) (1,164 ) (12.6 %) - Research and
development expenses (101 ) (2,924 ) (137 ) (3,991 ) (26.7 %) (101
) (2,924 ) (106 ) (3,090 ) (5.4 %) Subtotal (167 ) (4,850 ) (213 )
(6,211 ) (21.9 %) (167 ) (4,850 ) (179 ) (5,198 ) (6.7 %) Net other
operating income and expenses 34 977 5 154
534.4 % 34 977 28 801 22.0 %
Operating income 26 769 47 1,371 (43.9 %) 26 769 65 1,901 (59.5 %)
2.1 % 2.1 % 3.7 % 3.7 % 2.1 % 2.1 % 5.2 % 5.2 % Net
non-operating income and expenses 38 1,088 (10 ) (304
) - 38 1,088 (5 ) (152 ) - Income from
continuing operations before
income tax
64 1,857 37 1,067 74.0 % 64 1,857 60 1,749 6.2 % 5.0 % 5.0 % 2.9 %
2.9 % 5.0 % 5.0 % 4.8 % 4.8 % Income tax benefit (expense)
40 1,173 14 430 172.8 % 40 1,173
(19 ) (556 ) - Net income 104 3,030 51 1,497 102.4 %
104 3,030 41 1,193 154.0 % 8.1 % 8.1 % 4.0 % 4.0 % 8.1 % 8.1 % 3.3
% 3.3 % Other comprehensive income (loss) (8 ) (234 ) (103 )
(2,997 ) (92.2 %) (8 ) (234 ) (47 ) (1,366 ) (82.9 %) Total
comprehensive income (loss) 96 2,796 (52 ) (1,500 ) -
96 2,796 (6 ) (173 ) - Net
income attributable to: Stockholders of the parent 117 3,400 79
2,286 48.7 % 117 3,400 61 1,771 92.0 % Non-controlling interests
(13 ) (370 ) (28 ) (789 ) (53.1 %) (13 ) (370 ) (20 ) (578 ) (36.0
%) Comprehensive income (loss) attributable to:
Stockholders of the parent 108 3,158 (21 ) (599 ) - 108 3,158 14
416 659.1 % Non-controlling interests (12 ) (362 ) (31 ) (901 )
(59.8 %) (12 ) (362 ) (20 ) (589 ) (38.5 %) Earnings per
share-basic 0.010 0.28 0.007 0.19 0.010
0.28 0.005 0.15 Earnings per ADS (2)
0.048 1.40 0.033 0.95 0.048 1.40
0.026 0.75 Weighted average number of shares
outstanding (in millions) 12,203 12,208 12,203
12,208
Notes: (1) New Taiwan
Dollars have been translated into U.S. Dollars at the March 31,
2018 exchange rate of NT $29.11 per U.S. Dollar. (2) 1 ADS equals 5
common shares.
UNITED MICROELECTRONICS CORPORATION
AND SUBSIDIARIES Consolidated Condensed Statements of
Comprehensive Income Figures in Millions of New Taiwan Dollars
(NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data
For the Three-Month Period Ended For the
Three-Month Period Ended March 31, 2018 March 31, 2018 US$ NT$ %
US$ NT$ % Net operating revenues 1,288 37,497 100.0 %
1,288 37,497 100.0 % Operating costs (1,129 ) (32,855 ) (87.6 %)
(1,129 ) (32,855 ) (87.6 %) Gross profit 159 4,642
12.4 % 159 4,642 12.4 % Operating
expenses - Sales and marketing expenses (31 ) (909 ) (2.4 %) (31 )
(909 ) (2.4 %) - General and administrative expenses (35 ) (1,017 )
(2.7 %) (35 ) (1,017 ) (2.7 %) - Research and development expenses
(101 ) (2,924 ) (7.8 %) (101 ) (2,924 ) (7.8 %) Subtotal (167 )
(4,850 ) (12.9 %) (167 ) (4,850 ) (12.9 %) Net other operating
income and expenses 34 977 2.6 % 34 977
2.6 % Operating income 26 769 2.1 % 26 769 2.1 % Net
non-operating income and expenses 38 1,088 2.9 % 38
1,088 2.9 % Income from continuing operations before
income tax
64 1,857 5.0 % 64 1,857 5.0 % Income tax benefit 40
1,173 3.1 % 40 1,173 3.1 % Net income
104 3,030 8.1 % 104 3,030 8.1 % Other comprehensive income
(loss) (8 ) (234 ) (0.6 %) (8 ) (234 ) (0.6 %) Total
comprehensive income (loss) 96 2,796 7.5 % 96
2,796 7.5 % Net income attributable to:
Stockholders of the parent 117 3,400 9.1 % 117 3,400 9.1 %
Non-controlling interests (13 ) (370 ) (1.0 %) (13 ) (370 ) (1.0
%) Comprehensive income (loss) attributable to:
Stockholders of the parent 108 3,158 8.4 % 108 3,158 8.4 %
Non-controlling interests (12 ) (362 ) (0.9 %) (12 ) (362 ) (0.9
%) Earnings per share-basic 0.010 0.28 0.010
0.28 Earnings per ADS (2) 0.048 1.40
0.048 1.40 Weighted average number of shares
outstanding (in millions)
12,203 12,203
Notes: (1) New
Taiwan Dollars have been translated into U.S. Dollars at the March
31, 2018 exchange rate of NT $29.11 per U.S. Dollar. (2) 1 ADS
equals 5 common shares.
UNITED MICROELECTRONICS
CORPORATION AND SUBSIDIARIES Consolidated Condensed
Statement of Cash Flows For The Three-Month Period Ended March
31, 2018 Figures in Millions of New Taiwan Dollars (NT$) and U.S.
Dollars (US$) US$ NT$
Cash flows from operating
activities : Net income before tax 64 1,857 Depreciation &
Amortization 456 13,288 Exchange gain on financial assets and
liabilities (47 ) (1,356 ) Changes in notes & accounts
receivable (112 ) (3,268 ) Changes in inventory 33 953 Changes in
contract liabilities (32 ) (919 ) Changes in assets, liabilities
and others (61 ) (1,779 ) Net cash provided by operating activities
301 8,776
Cash flows from investing activities :
Acquisition of property, plant and equipment (196 ) (5,716 )
Acquisition of intangible assets (9 ) (248 ) Others 228
6,630 Net cash provided by investing activities 23 666
Cash flows from financing activities : Decrease in
short-term loans (178 ) (5,179 ) Redemption of bonds (258 ) (7,500
) Treasury stock acquired (20 ) (595 ) Others (15 ) (440 ) Net cash
used in financing activities (471 ) (13,714 ) Effect of
exchange rate changes on cash and cash equivalents (9 ) (260 ) Net
decrease in cash and cash equivalents (156 ) (4,532 ) Cash
and cash equivalents at beginning of period 2,806 81,675
Cash and cash equivalents at end of period 2,650
77,143 Note: New
Taiwan Dollars have been translated into U.S. Dollars at the March
31, 2018 exchange rate of NT $29.11 per U.S. Dollar.
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UMCInvestor RelationsMichael Lin, +
886-2-2658-9168, ext. 16900jinhong_lin@umc.comorDavid Wong, +
886-2-2658-9168, ext. 16900david_wong@umc.com