Company posts 15.7% gross margin and NT$0.15
EPS
Second Quarter 2019 Overview1:
- Revenue: NT$36.03 billion (US$1.16 billion)
- Gross margin: 15.7%
- Foundry revenue from 28nm: 13%; Foundry operating margin:
5.3%
- Foundry capacity utilization rate: 88%
- Net income attributable to stockholders of the parent:
NT$1.74 billion (US$56 million)
- Earnings per share: NT$0.15; earnings per ADS:
US$0.024
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 2019.
Second quarter consolidated revenue was NT$36.03 billion, up
10.6% QoQ from NT$32.58 billion in 1Q19 and down 7.3% YoY from
NT$38.85 billion in 2Q18. Consolidated gross margin for 2Q19 was
15.7%. Net income attributable to stockholders of the parent was
NT$1.74 billion, with earnings per ordinary share of NT$0.15.
Jason Wang, co-president of UMC, said, “In the second quarter,
foundry revenue grew 10.6% QoQ to NT$36.00 billion, leading to a
foundry operating margin of 5.3%. Utilization rate increased to
88%, bringing wafer shipments to 1.73 million 8-inch equivalent
wafers. 2Q19 results reflected higher contribution from 12"
technology nodes, which experienced strength from the wireless
communication segment including chips found in entry level to
mid-end smartphones, switches and routers. During the quarter, we
generated a free cash flow of NT$8.17 billion. We remain committed
to strengthening our financial metrics, and on June 19, 2019, UMC’s
Board of Directors approved the cancellation of 400 million
ordinary treasury shares, which will reduce UMC’s ordinary shares
by 3.3%.”
Co-president Wang further commented, “Despite US-China trade
tensions creating market uncertainty, we anticipate that specific
areas within the wireless communication sector will have a short
term upward adjustment in the supply chain, which should lead to a
slight increase in wafer demand. However, we have observed that
customers are continuing to manage their inventory carefully amid a
weakened global economic environment, which may contribute to lower
visibility in business forecast during the second half of 2019. In
the meantime, we continue to actively implement measures intended
to enhance our foundry competitiveness, such as focusing resources
to capitalize on our existing strength in mainstream logic and
specialty processes while offering more diversified technology
platforms to customers.”
Summary of Operating Results
Operating Results
(Amount: NT$ million)
2Q19
1Q19
QoQ % change
2Q18
YoY % change
Operating Revenues
36,031
32,583
10.6
38,852
(7.3)
Gross Profit
5,652
2,262
149.9
6,675
(15.3)
Operating Expenses
(5,578)
(4,932)
13.1
(5,213)
7.0
Net Other Operating Income and
Expenses
1,687
1,073
57.2
1,719
(1.9)
Operating Income (Loss)
1,761
(1,597)
-
3,181
(44.6)
Net Non-Operating Income and Expenses
(617)
1,247
-
(1,095)
(43.7)
Net Income Attributable to Stockholders of
the Parent
1,740
1,201
44.9
3,659
(52.4)
EPS (NT$ per share)
0.15
0.10
0.30
(US$ per ADS)
0.024
0.016
0.048
Operating revenues in 2Q19 increased 10.6% to NT$36.03 billion,
including NT$36.00 billion from the foundry segment. Revenue
contribution from 40nm and below technologies grew to 37%. Gross
profit increased 149.9% to NT$5.65 billion, or 15.7% of revenue.
Operating expenses increased 13.1% to NT$5.58 billion. Net other
operating income was NT$1.69 billion, leading to an operating
income of NT$1.76 billion. Net non-operating expense was NT$617
million. Net income attributable to stockholders of the parent was
NT$1.74 billion.
Earnings per ordinary share for the quarter was NT$0.15.
Earnings per ADS was US$0.024. The basic weighted average number of
outstanding shares in 2Q19 was 11,817,657,562, compared with
11,908,706,645 shares in 1Q19 and 12,048,575,089 shares in 2Q18.
The diluted weighted average number of outstanding shares was
13,079,662,179 in 2Q19, compared with 13,238,181,278 shares in 1Q19
and 13,268,862,054 shares in 2Q18. The fully diluted share count on
June 30, 2019 was approximately 12,986,324,000. During 2Q19, UMC
retired 400 million treasury shares acquired from the 17th and 20th
share buy-back programs.
Detailed Financials Section
COGS & Expenses
(Amount: NT$ million)
2Q19
1Q19
QoQ % change
2Q18
YoY % change
Operating Revenues
36,031
32,583
10.6
38,852
(7.3)
COGS
(30,379)
(30,321)
0.2
(32,177)
(5.6)
Depreciation
(11,424)
(10,497)
8.8
(12,139)
(5.9)
Other Mfg. Costs
(18,955)
(19,824)
(4.4)
(20,038)
(5.4)
Gross Profit
5,652
2,262
149.9
6,675
(15.3)
Gross Margin (%)
15.7%
6.9%
17.2%
Operating Expenses
(5,578)
(4,932)
13.1
(5,213)
7.0
G&A
(1,251)
(1,236)
1.1
(1,083)
15.5
Sales & Marketing
(953)
(889)
7.2
(1,103)
(13.6)
R&D
(2,787)
(2,807)
(0.7)
(3,027)
(7.9)
Expected Credit Losses
(587)
-
100.0
-
100.0
Net Other Operating
Income & Expenses
1,687
1,073
57.2
1,719
(1.9)
Operating Income (Loss)
1,761
(1,597)
-
3,181
(44.6)
Operating revenues grew 10.6% to NT$36.03 billion. COGS remained
relatively unchanged at NT$30.38 billion, as depreciation increased
8.8% to NT$11.42 billion while other manufacturing costs declined
4.4% to NT$18.96 billion. Gross profit was NT$5.65 billion.
Operating expenses rose 13.1% to NT$5.58 billion, which included a
7.2% increase in Sales & Marketing to NT$953 million and a
NT$587 million in Expected Credit Losses. R&D expense accounted
for 7.7% of 2Q19 operating revenues and net other operating income
was NT$1.69 billion. In 2Q19, the company realized an operating
income of NT$1.76 billion.
Non-Operating Income and
Expenses
(Amount: NT$ million)
2Q19
1Q19
2Q18
Non-Operating Income and Expenses
(617)
1,247
(1,095)
Net Interest Income and Expenses
(497)
(473)
(505)
Net Investment Gain and Loss
69
1,228
105
Exchange Gain and Loss
(182)
507
(720)
Other Gain and Loss
(7)
(15)
25
Net non-operating expense in 2Q19 was NT$617 million, primarily
resulting from NT$497 million in net interest expense and NT$182
million in exchange loss, partly offset by NT$69 million in net
investment gain.
Cash Flow Summary
(Amount: NT$ million)
For the 3-Month Period Ended
Jun. 30, 2019
For the 3-Month Period Ended
Mar. 31, 2019
Cash Flow from Operating Activities
12,268
8,183
Net income (loss) before tax
1,144
(350)
Depreciation & Amortization
12,185
12,380
Expected credit losses
587
-
Net loss (gain) of financial assets
and liabilities at FVTPL
274
(1,032)
Share of profit or loss of associates
and
joint ventures
(201)
(196)
Exchange loss (gain) on financial assets
and liabilities
583
(554)
Changes in working capital
(1,047)
(1,339)
Interest paid
(994)
(215)
Other
(263)
(511)
Cash Flow from Investing Activities
(4,188)
(5,683)
Acquisition of PP&E
(3,904)
(5,563)
Acquisition of intangible assets
(247)
(530)
Other
(37)
410
Cash Flow from Financing Activities
(6,467)
2,180
Bank loans
(1,197)
2,463
Redemption of bonds
(2,500)
-
Treasury stock acquired
(2,641)
(331)
Other
(129)
48
Effect of Exchange Rate
10
396
Net Cash Flow
1,623
5,076
Beginning balance
88,738
83,662
Changes in non-current assets held for
sale
(5)
-
Ending balance
90,356
88,738
Cash inflow from operating activities was NT$12.27 billion while
foundry CAPEX was NT$4.09 billion, leading to free cash flow of
NT$8.17 billion. Cash outflow from financing activities totaled
NT$6.47 billion, including NT$2.64 billion in payment for treasury
share buyback, NT$2.50 billion in redemption of bonds and NT$1.20
billion in bank loans. Net cash inflow in 2Q19 was NT$1.62 billion.
Over the next 12 months, the company expects to repay NT$2.73
billion in bank loans.
Current Assets
(Amount: NT$ billion)
2Q19
1Q19
2Q18
Cash and Cash Equivalents
90.36
88.74
75.19
Notes & Accounts Receivable
24.39
22.99
27.01
Days Sales Outstanding
60
66
61
Inventories, net
19.63
18.87
17.66
Days of Inventory
58
56
49
Total Current Assets
150.51
146.80
137.08
Cash and cash equivalents increased to NT$90.36 billion. Days of
inventory increased two days to 58 days.
Liabilities
(Amount: NT$ billion)
2Q19
1Q19
2Q18
Total Current Liabilities
77.06
52.64
59.17
Notes & Accounts Payable
6.91
6.78
7.41
Short-Term Credit / Bonds
39.43
23.35
17.23
Payable on Equipment
2.60
2.95
3.61
Dividends Payable
6.92
-
8.56
Other
21.20
19.56
22.36
Long-Term Credit / Bonds
45.39
64.98
67.76
Long-Term Investment Liabilities
20.83
20.99
20.79
Total Liabilities
167.84
164.32
170.11
Debt to Equity
83%
78%
81%
Current liabilities increased to NT$77.06 billion. Total
liabilities increased to NT$167.84 billion, leading to a debt to
equity ratio of 83%.
Analysis of Revenue2 for Foundry Segment
Revenue Breakdown by
Region
Region
2Q19
1Q19
4Q18
3Q18
2Q18
North America
31%
32%
38%
34%
37%
Asia Pacific
59%
57%
51%
52%
51%
Europe
7%
7%
8%
11%
9%
Japan
3%
4%
3%
3%
3%
Revenue from Asia Pacific expanded to 59%, as revenue
contribution from North American customers slightly fell to 31%.
Revenue from Europe and Japan was 7% and 3%, respectively.
Revenue Breakdown by
Geometry
Geometry
2Q19
1Q19
4Q18
3Q18
2Q18
14nm and below
0%
0%
1%
5%
3%
14nm<x<=28nm
13%
10%
10%
13%
15%
28nm<x<=40nm
24%
20%
23%
22%
26%
40nm<x<=65nm
14%
14%
13%
12%
12%
65nm<x<=90nm
12%
12%
11%
10%
7%
90nm<x<=0.13um
14%
15%
13%
11%
11%
0.13um<x<=0.18um
12%
15%
15%
14%
13%
0.18um<x<=0.35um
8%
11%
11%
10%
10%
0.5um and above
3%
3%
3%
3%
3%
Revenue contribution from 28nm grew to 13% while 40nm business
represented 24% of sales.
Revenue Breakdown by Customer
Type
Customer Type
2Q19
1Q19
4Q18
3Q18
2Q18
Fabless
93%
94%
92%
93%
92%
IDM
7%
6%
8%
7%
8%
Revenue from fabless customers decreased to 93% of revenue.
Revenue Breakdown by
Application (1)
Application
2Q19
1Q19
4Q18
3Q18
2Q18
Computer
14%
15%
15%
19%
16%
Communication
52%
48%
44%
43%
47%
Consumer
28%
29%
30%
28%
28%
Others
6%
8%
11%
10%
9%
The communication segment accounted for 52% of sales, while
revenue from consumer applications remained relatively flat at 28%.
Computer related applications contributed 14% of revenue.
(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) in 2Q19 slightly
increased.
(To view ASP trend, visit
http://www.umc.com/english/investors/2Q19_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry Segment
Wafer Shipments
2Q19
1Q19
4Q18
3Q18
2Q18
Wafer Shipments (8” K equivalents)
1,730
1,611
1,711
1,804
1,846
Quarterly Capacity Utilization
Rate
2Q19
1Q19
4Q18
3Q18
2Q18
Utilization Rate
88%
83%
88%
94%
97%
Total Capacity (8” K equivalents)
1,970
1,937
1,958
1,938
1,918
In 2Q19, wafer shipments grew 7.4% to 1,730K. Quarterly capacity
increased 1.7% QoQ to 1,970K, resulting in an overall utilization
rate of 88%.
Capacity4 for Foundry Segment
Total capacity in the second quarter reached 1,970K 8-inch
equivalent wafers. We anticipate third quarter capacity to increase
by approximately 1.7% QoQ to 2,004K 8-inch equivalent wafers,
mainly from expansion at Fab 12i.
Annual Capacity in
thousands of wafers
Quarterly Capacity in
thousands of wafers
FAB
Geometry (um)
2018
2017
2016
2015
FAB
3Q19E
2Q19
1Q19
4Q18
WTK
6"
3.5 – 0.45
396
422
423
421
WTK
93
93
91
93
Fab 8A
8"
0.5 – 0.25
825
825
827
813
Fab 8A
207
207
204
207
Fab 8C
8"
0.35 – 0.11
383
357
348
347
Fab 8C
111
109
106
108
Fab 8D
8"
0.13 – 0.09
347
341
342
341
Fab 8D
90
90
89
90
Fab 8E
8"
0.5 – 0.18
418
418
419
418
Fab 8E
107
105
103
105
Fab 8F
8"
0.18 – 0.11
431
417
401
388
Fab 8F
110
108
107
108
Fab 8S
8"
0.18 – 0.11
372
347
336
335
Fab 8S
93
93
92
93
HJ
8"
0.5 – 0.11
771
753
750
667
HJ
208
205
201
194
Fab 12A
12"
0.13 – 0.014
997
970
885
793
Fab 12A
250
250
246
250
Fab 12i
12"
0.13 – 0.040
555
537
584
572
Fab 12i
155
144
141
144
USCXM
12"
0.040 – 0.028
183
97
9
-
USCXM
51
51
50
51
Total(1)
7,673
7,304
6,983
6,617
Total
2,004
1,970
1,937
1,958
YoY Growth Rate
5%
5%
6%
5%
(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
2018
2017
2016
2015
2014
CAPEX
$ 0.7
$ 1.4
$ 2.8
$ 1.9
$ 1.4
2019 CAPEX Plan
8"
12"
Total
25%
75%
US$1.0 billion
CAPEX spending in 2Q19 was US$131 million, leading to US$318
million in capital expenditure for the first half of 2019. Full
year 2019 CAPEX is budgeted for US$1.0 billion.
Third Quarter of 2019 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To increase by 2-4%
- ASP in USD: To increase by 1%
- Profitability: Gross profit margin will be in the mid-teens %
range
- Foundry Segment Capacity Utilization: high-80% range
- 2019 CAPEX for Foundry Segment: US$1.0 billion
Recent Developments / Announcements
Jun 12, 2019
UMC Shareholders Approve NT$0.58 Cash
Dividend at Annual Shareholders Meeting
May 30, 2019
UMC Among Highest Ranked in Corporate
Governance Evaluation for 5th Consecutive Year
April 25, 2019
UMC Files Form 20-F for 2018 with US
Securities and Exchange Commission
April 24, 2019
UMC 1Q 2019 Financial Results
Please visit UMC’s website for further details
regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 24, 2019
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM
(London)
Dial-in numbers and Access Codes:
USA Toll Free:
1-866 836-0101
Taiwan Number:
02-2192-8016
Other Areas:
+886-2-2192-8016
Access Code:
UMC
A live webcast and replay of the 2Q19 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 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 world-class 28nm High-K/Metal Gate technology, 14nm FinFET
volume production, specialty process platforms specifically
developed for AI, 5G and 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 more than 600,000 wafers per month. The company employs
approximately 18,500 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 release 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, 2019
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) June 30, 2019 US$ NT$ % Assets Current assets
Cash and cash equivalents
2,909
90,356
24.4%
Financial assets at fair value through profit or loss, current
20
614
0.2%
Notes & Accounts receivable, net
785
24,386
6.6%
Inventories, net
632
19,629
5.3%
Other current assets
500
15,522
4.2%
Total current assets
4,846
150,507
40.7%
Non-current assets Funds and investments
1,219
37,861
10.2%
Property, plant and equipment
5,101
158,440
42.8%
Right-of-use assets
268
8,315
2.3%
Other non-current assets
476
14,812
4.0%
Total non-current assets
7,064
219,428
59.3%
Total assets
11,910
369,935
100.0%
Liabilities Current liabilities Short-term loans
525
16,320
4.4%
Payables
763
23,707
6.4%
Dividends payable
223
6,916
1.9%
Current portion of long-term liabilities
744
23,105
6.3%
Other current liabilities
226
7,007
1.8%
Total current liabilities
2,481
77,055
20.8%
Non-current liabilities Bonds payable
602
18,686
5.1%
Long-term loans
860
26,708
7.2%
Lease liabilities, noncurrent
174
5,395
1.5%
Other non-current liabilities
1,287
39,997
10.8%
Total non-current liabilities
2,923
90,786
24.6%
Total liabilities
5,404
167,841
45.4%
Equity Equity attributable to the parent company Capital
3,775
117,243
31.7%
Additional paid-in capital
1,263
39,240
10.6%
Retained earnings, exchange differences on translation offoreign
operations, unrealized gains or losses on financialassets measured
at fair value through other comprehensiveincome and gains or losses
on hedging Instruments
1,459
45,301
12.2%
Treasury stock
(4)
(120)
(0.0%)
Total equity attributable to the parent company
6,493
201,664
54.5%
Non-controlling interests
13
430
0.1%
Total equity
6,506
202,094
54.6%
Total liabilities and equity
11,910
369,935
100.0%
Note:New Taiwan Dollars have been translated
into U.S. Dollars at the June 30, 2019 exchange rate of NT $31.06
per U.S. Dollar.
UNITED MICROELECTRONICS
CORPORATION AND SUBSIDIARIES Consolidated Condensed
Statements of Comprehensive Income Figures in Millions of New
Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and
Per ADS Data
Year over Year Comparison
Quarter over Quarter Comparison Three-Month Period Ended
Three-Month Period Ended June 30, 2019 June 30, 2018 Chg. June 30,
2019 March 31, 2019 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Operating revenues
1,160
36,031
1,251
38,852
(7.3%)
1,160
36,031
1,049
32,583
10.6%
Operating costs
(978)
(30,379)
(1,036)
(32,177)
(5.6%)
(978)
(30,379)
(976)
(30,321)
0.2%
Gross profit
182
5,652
215
6,675
(15.3%)
182
5,652
73
2,262
149.9%
15.7%
15.7%
17.2%
17.2%
15.7%
15.7%
6.9%
6.9%
Operating expenses - Sales and marketing expenses
(31)
(953)
(36)
(1,103)
(13.6%)
(31)
(953)
(29)
(889)
7.2%
- General and administrative expenses
(39)
(1,251)
(35)
(1,083)
15.5%
(39)
(1,251)
(40)
(1,236)
1.1%
- Research and development expenses
(90)
(2,787)
(97)
(3,027)
(7.9%)
(90)
(2,787)
(90)
(2,807)
(0.7%)
- Expected credit losses
(19)
(587)
-
-
100.0%
(19)
(587)
-
-
100.0%
Subtotal
(179)
(5,578)
(168)
(5,213)
7.0%
(179)
(5,578)
(159)
(4,932)
13.1%
Net other operating income and expenses
54
1,687
55
1,719
(1.9%)
54
1,687
35
1,073
57.2%
Operating income (loss)
57
1,761
102
3,181
(44.6%)
57
1,761
(51)
(1,597)
-
4.9%
4.9%
8.2%
8.2%
4.9%
4.9%
(4.9%)
(4.9%)
Net non-operating income and expenses
(20)
(617)
(35)
(1,095)
(43.7%)
(20)
(617)
40
1,247
-
Income (loss) from continuing operationsbefore income tax
37
1,144
67
2,086
(45.2%)
37
1,144
(11)
(350)
-
3.2%
3.2%
5.4%
5.4%
3.2%
3.2%
(1.1%)
(1.1%)
Income tax benefit (expense)
(7)
(202)
11
331
-
(7)
(202)
14
443
-
Net income
30
942
78
2,417
(61.0%)
30
942
3
93
917.6%
2.6%
2.6%
6.2%
6.2%
2.6%
2.6%
0.3%
0.3%
Other comprehensive income (loss)
24
743
85
2,641
(71.9%)
24
743
116
3,614
(79.5%)
Total comprehensive income (loss)
54
1,685
163
5,058
(66.7%)
54
1,685
119
3,707
(54.6%)
Net income attributable to: Stockholders of the parent
56
1,740
118
3,659
(52.4%)
56
1,740
39
1,201
44.9%
Non-controlling interests
(26)
(798)
(40)
(1,242)
(35.7%)
(26)
(798)
(36)
(1,108)
(28.0%)
Comprehensive income (loss) attributable to: Stockholders
of the parent
80
2,488
203
6,297
(60.5%)
80
2,488
155
4,813
(48.3%)
Non-controlling interests
(26)
(803)
(40)
(1,239)
(35.2%)
(26)
(803)
(36)
(1,106)
(27.4%)
Earnings per share-basic
0.005
0.15
0.010
0.30
0.005
0.15
0.003
0.10
Earnings per ADS (2)
0.024
0.75
0.048
1.50
0.024
0.75
0.016
0.50
Weighted average number of shares outstanding (in millions)
11,818
12,049
11,818
11,909
Notes: (1) New Taiwan Dollars have been translated
into U.S. Dollars at the June 30, 2019 exchange rate of NT $31.06
per U.S. Dollar. (2) 1 ADS equals 5 common shares.
UNITED
MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated
Condensed Statements of Comprehensive Income Figures in
Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except
Per Share and Per ADS Data For the Three-Month Period Ended
For the Six-Month Period Ended June 30, 2019 June 30, 2019 US$ NT$
% US$ NT$ % Operating revenues
1,160
36,031
100.0%
2,209
68,614
100.0%
Operating costs
(978)
(30,379)
(84.3%)
(1,954)
(60,700)
(88.5%)
Gross profit
182
5,652
15.7%
255
7,914
11.5%
Operating expenses - Sales and marketing expenses
(31)
(953)
(2.6%)
(59)
(1,841)
(2.7%)
- General and administrative expenses
(39)
(1,251)
(3.6%)
(81)
(2,488)
(3.5%)
- Research and development expenses
(90)
(2,787)
(7.7%)
(180)
(5,594)
(8.2%)
- Expected credit losses
(19)
(587)
(1.6%)
(19)
(587)
(0.9%)
Subtotal
(179)
(5,578)
(15.5%)
(339)
(10,510)
(15.3%)
Net other operating income and expenses
54
1,687
4.7%
89
2,760
4.0%
Operating income
57
1,761
4.9%
5
164
0.2%
Net non-operating income and expenses
(20)
(617)
(1.7%)
21
630
1.0%
Income from continuing operationsbefore income tax
37
1,144
3.2%
26
794
1.2%
Income tax benefit (expense)
(7)
(202)
(0.6%)
7
241
0.3%
Net income
30
942
2.6%
33
1,035
1.5%
Other comprehensive income (loss)
24
743
2.1%
141
4,357
6.4%
Total comprehensive income (loss)
54
1,685
4.7%
174
5,392
7.9%
Net income attributable to: Stockholders of the parent
56
1,740
4.8%
95
2,942
4.3%
Non-controlling interests
(26)
(798)
(2.2%)
(62)
(1,907)
(2.8%)
Comprehensive income (loss) attributable to: Stockholders
of the parent
80
2,488
6.9%
235
7,301
10.6%
Non-controlling interests
(26)
(803)
(2.2%)
(61)
(1,909)
(2.7%)
Earnings per share-basic
0.005
0.15
0.008
0.25
Earnings per ADS (2)
0.024
0.75
0.040
1.25
Weighted average number of sharesoutstanding (in millions)
11,818
11,863
Notes: (1) New Taiwan Dollars have been translated into U.S.
Dollars at the June 30, 2019 exchange rate of NT $31.06 per U.S.
Dollar. (2) 1 ADS equals 5 common shares.
UNITED
MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated
Condensed Statement of Cash Flows For The Six-Month Period
Ended June 30, 2019 Figures in Millions of New Taiwan Dollars (NT$)
and U.S. Dollars (US$) US$ NT$
Cash flows from operating
activities : Net income before tax
26
794
Depreciation & Amortization
791
24,565
Expected credit losses
19
587
Net gain of financial assets and liabilities at fair value through
profit or loss
(24)
(758)
Changes in notes & accounts receivable
(38)
(1,184)
Changes in inventories
(44)
(1,363)
Changes in assets, liabilities and others
(72)
(2,190)
Net cash provided by operating activities
658
20,451
Cash flows from investing activities : Acquisition of
property, plant and equipment
(305)
(9,467)
Acquisition of intangible assets
(25)
(777)
Others
12
374
Net cash used in investing activities
(318)
(9,870)
Cash flows from financing activities : Increase in
short-term loans
97
3,001
Redemption of bonds
(80)
(2,500)
Proceeds from long-term loans
25
783
Repayments of long-term loans
(81)
(2,518)
Treasury stock acquired
(96)
(2,972)
Others
(3)
(82)
Net cash used in financing activities
(138)
(4,288)
Effect of exchange rate changes on cash and cash equivalents
13
406
Net increase in cash and cash equivalents
215
6,699
Cash and cash equivalents at beginning of period
2,694
83,662
Cash and cash equivalents at end of period
2,909
90,361
Reconciliation of the balances of cash and cash equivalents
at end of period : Cash and cash equivalents balances on the
consolidated balance sheets
2,909
90,356
Cash and cash equivalents included in non-current assets held for
sale
0
5
Cash and cash equivalents at end of period
2,909
90,361
Note: New Taiwan Dollars have been translated into
U.S. Dollars at the June 30, 2019 exchange rate of NT $31.06 per
U.S. Dollar.
1Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with TIFRSs recognized
by Financial Supervisory Commission in the ROC, which is different
from IFRSs issued by the International Accounting Standards Board.
They represent comparisons among the three-month period ending June
30, 2019, the three-month period ending March 31, 2019, and the
equivalent three-month period that ended June 30, 2018. For all
2Q19 results, New Taiwan Dollar (NT$) amounts have been converted
into U.S. Dollars at the June 30, 2019 exchange rate of NT$ 31.06
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190724005345/en/
Michael Lin / David Wong UMC, Investor Relations +
886-2-2658-9168, ext. 16900 jinhong_lin@umc.com
david_wong@umc.com
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