HSINCHU, Taiwan, March 16, 2017 /PRNewswire/ -- 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
provided its consolidated financial forecast for the first quarter
of 2017 pursuant to a request from the Taiwan Stock Exchange. This
is intended to provide additional information on the underlying
financial forecast of the first quarter of 2017 guidance provided
by the Company on March 9, 2017 and
does not represent a change in that guidance.
Based on Taiwan's applicable
regulations, a publicly listed company is prohibited from providing
any financial forecast or business guidance publicly if its sum
total of the non-operating income and expenses on the consolidated
(or individual) financial reports for the most recent four quarters
accounts for more than 10 percent of the sum total of the profit
before tax. Otherwise a company may be required to publish a
simplified financial forecast for the period concerned.
ChipMOS provided guidance for the first quarter of 2017 in
its press release issued on March 9,
2017 as well as in the accompanying investor conference
calls hosted by the Company. Given the Company's
non-operating income and expenses for the most recent four quarters
are accounted for 18% of the profit before tax, the Taiwan Stock
Exchange deemed it was necessary for the Company to publish a
simplified financial forecast, as listed below.
ChipMOS TECHNOLOGIES INC. and Subsidiaries (the
"Group")
Summary Consolidated Financial Forecast for the First Quarter of
2017
I. Contents of important items:
(All figures in Thousands of New Taiwan
Dollars)
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Revenue
|
4,667,128
|
4,293,757 ~
4,480,442
|
Gross
profit
|
961,573
|
687,001 ~
896,088
|
Operating
expenses
|
454,480
|
386,438 ~
492,849
|
Operating
profit
|
510,384
|
895,971 ~
1,061,323
|
Profit before
tax
|
687,401
|
560,514 ~
660,554
|
Comprehensive income
(Note 1)
|
543,346
|
1,998,026 ~
2,274,166
|
Earnings per share
(NT$) (Note 2)
|
0.72
|
2.69 ~
3.00
|
Acquisition of major
assets
|
964,011
|
1,181,917 ~
1,255,025
|
Disposal of major
assets
|
72,533
|
2,185,180 ~
2,321,190
|
Note:
1. Comprehensive income represents the comprehensive income
attributable to equity holders of the Company (excluding
non-controlling interests and predecessors' interests under common
control).
2. Earnings per share represents the basic earnings per share
attributable to equity holders of the Company.
II. Explanation regarding the summary of significant basic
assumptions and the bases of estimates:
(All figures in Thousands of New Taiwan Dollars)
1. Consolidated revenue:
The Group's forecasted revenue for the First Quarter of 2017
("1Q17") is primarily based on the Company's business plan and
reflects traditional seasonality and fewer working days in 1Q17 due
to Chinese New Year closures.
Consolidated revenue for 1Q17 is forecast to decline 4.0% ~ 8.0% as
compared to the prior quarter. Forecasted figures are
provided in the following table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Consolidated
revenue
|
4,667,128
|
4,293,757 ~
4,480,442
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
-8.0% ~
-4.0%
|
2. Consolidated cost of revenue:
The Group's forecasted cost of revenue for 1Q17 is primarily
based on the expected operating targets and historical
experience. Consolidated cost of revenue for 1Q17 is expected
to show a decline of 2.7% ~ 3.3%, as compared to the prior quarter.
This forecast mainly correlates with the forecast sequential
decline in revenue and partially offset by the increased accrual of
employees' bonuses based on the increased profit resulted from the
recognition of the equity interest disposal gain on the subsidiary,
ChipMOS TECHNOLOGIES (Shanghai)
LTD. ("ChipMOS Shanghai"). Forecasted figures are provided in
the following table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Consolidated cost of
revenue
|
3,705,555
|
3,584,354 ~
3,606,756
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
-3.3% ~
-2.7%
|
3. Consolidated operating expenses:
The Group's forecasted operating expenses for 1Q17 are primarily
based on historical experience and the Company's operating
plan. Consolidated operating expenses for 1Q17 are forecasted
to be in the range of down 15.0% to up 8.4% as compared to the
prior quarter. Forecasted figures are provided in the following
table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Consolidated
operating expenses
|
454,480
|
386,438 ~
492,849
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
-15.0% ~
8.4%
|
4. Consolidated net other operating incomes and expenses:
The Group's forecasted net other operating incomes and expenses
for 1Q17 are primarily based on historical experience and the
Company's operating plan. Consolidated net other operating
incomes and expenses for 1Q17 are forecasted to increase 17,992.0%
~ 19,896.4% as compared to the prior quarter. The forecasted
increase in net other operating income is primarily due to income
from insurance compensation for property, plant and equipment and
the recognition of realized disposal gain on property, plant and
equipment which was generated from previous inter-company
transactions within the Group and reclassified to realized gain
once the Group complete the equity interest disposal of the
subsidiary, ChipMOS Shanghai. Forecasted figures are provided
in the following table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Consolidated net
other operating incomes and expenses
|
3,291
|
595,408 ~
658,083
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
17,992.0% ~
19,896.4%
|
5. Consolidated profit before tax:
The Group's profit before tax for 1Q17 is forecasted to be in
the range of 3.9% to 18.5% lower as compared to the prior quarter,
which primarily reflects foreign exchange losses. Forecasted
figures are provided in the following table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Consolidated profit
before tax
|
687,401
|
560,514 ~
660,554
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
-18.5% ~
-3.9%
|
6. Comprehensive income (attributable to equity holders of the
Company):
The Group's comprehensive income for 1Q17 is forecasted to
increase in the range of 267.7% to 318.5% as compared to the prior
quarter. The expected increase primarily comes from the gain
of the equity interest disposal on the subsidiary, ChipMOS
Shanghai. Forecasted figures are provided in the following
table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Comprehensive income
(attributed to equity holders of the Company)
|
543,346
|
1,998,026 ~
2,274,166
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
267.7% ~
318.5%
|
7. Acquisition or disposal of major assets:
(1) Acquisition of major assets
The Group's acquisition of major assets in 1Q17 is expected to
increase in the range of 22.6% to 30.2%, as compared to the prior
quarter. This increase is primarily based on the purchase of
equipment according to the business plan which was approved by the
Board of Directors. The funding of major assets purchase in
1Q17 is expected from operating cash flows. Forecasted
figures are provided in the following table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Property, plant and
equipment
|
964,011
|
1,181,917 ~
1,255,025
|
|
|
|
|
|
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
22.6% ~
30.2%
|
(2) Disposal of major assets
The Group plans to dispose 54.98% of the equity interest in its
subsidiary, ChipMOS Shanghai, in 1Q17. The forecast gain from
such disposal is expected to be between NT$1,925,000 thousands and NT$2,070,000
thousands. Forecasted figures are provided in the
following table:
|
4Q16
(Unaudited
Figures)
|
1Q17
(Unaudited Forecasted
Figures)
|
Proceeds from
disposal of property, plant and equipment
|
72,533
|
10,180~10,690
|
Proceeds from
disposal of long-term equity investment accounted for using equity
method
|
-
|
2,175,000~2,310,500
|
Total
|
72,533
|
2,185,180~2,321,190
|
Increase/ Decrease %
compared to the previous quarter
|
-
|
2,912.7%~3,100.2%
|
III. Explanation regarding the consistency of accounting
policies adopted in consolidated financial forecasts and
consolidated financial reports:
This consolidated financial forecast is an optimal estimation
based on current financial and business plans of the Company's
management and the anticipation of the future business. The
accounting policies adopted herein are consistent with consolidated
financial reports.
IV. Statements of the Company may not completely achieve the
consolidated financial forecast results as the consolidated
financial forecasts are merely estimates:
The nature of this information reflects management's best
estimation. Since business events and the operating
environment may vary from expectations, differences often arise
between forecast and actual results that can be quite
significant. Thus, this consolidated financial forecast may
not be completely achieved in the future and investors are advised
to reference the significant accounting policies and the summary of
basic assumptions regarding the forecast details. Further,
with respect to the Company's forecast disposal of equity interest
in the subsidiary, ChipMOS Shanghai, although all the necessary
permissions and approvals of competent authorities have already
been obtained, it nonetheless cannot be assured that this equity
interest disposal transaction will be completely closed before the
end of 1Q17 due to prevailing uncertainties, including but not
limited to Mainland China's foreign investment and currency
policies. If it is confirmed that the contemplated equity
interest disposal transaction is unable to close on the projected
schedule, the Company shall make an
announcement pursuant as required under applicable laws as soon as
possible.
About ChipMOS TECHNOLOGIES INC.:
ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan
Stock Exchange: 8150 and NASDAQ: IMOS) (http://www.chipmos.com ) is
an industry leading provider of semiconductor assembly and test
services. With advanced facilities in Hsinchu Science Park, Hsinchu
Industrial Park and Southern Taiwan Science Park in Taiwan, ChipMOS provide assembly and test
services to a broad range of customers, including leading fabless
semiconductor companies, integrated device manufacturers and
independent semiconductor foundries.
Forward-Looking Statements
This press release contains certain forward-looking statements.
These forward-looking statements may be identified by words such as
'believes,' 'expects,' 'anticipates,' 'projects,' 'intends,'
'should,' 'seeks,' 'estimates,' 'future' or similar expressions or
by discussion of, among other things, strategy, goals, plans or
intentions. These statements include financial projections and
estimates and their underlying assumptions, statements regarding
plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future
performance. Actual results may differ materially in the future
from those reflected in forward-looking statements contained in
this document, due to various factors. These risks and
uncertainties include those discussed under "Cautionary Statement
Concerning Forward Looking Statements" and "Risk Factors" in the
prospectus included in the registration statement on Form F-4 that
ChipMOS filed with the U.S. SEC.
Contacts:
In Taiwan
Dr. S.K.
Chen
ChipMOS TECHNOLOGIES
INC.
+886-6-507-7712
s.k._chen@chipmos.com
|
In the
U.S.
David
Pasquale
Global IR
Partners
+1-914-337-8801
dpasquale@globalirpartners.com
|
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SOURCE ChipMOS TECHNOLOGIES INC.