All currency figures stated in this report
are in US Dollars unless stated otherwise.
The consolidated financial
statements are prepared in accordance
with International Financial Reporting Standards
("IFRS").
SHANGHAI, Nov. 14, 2017 /PRNewswire/ -- Semiconductor
Manufacturing International Corporation (NYSE: SMI; SEHK: 981)
("SMIC," the "Company," or "our"), one of the leading semiconductor
foundries in the world, today announced its consolidated results of
operations for the three months ended September 30, 2017.
Third Quarter 2017 Highlights
- Revenue was $769.7 million in 3Q17, an increase of
2.5% QoQ from $751.2 million in 2Q17
and a decrease of 0.7% YoY from $774.8
million in 3Q16.
- Gross profit was $177.3 million in 3Q17, compared to
$194.1 million in 2Q17 and
$232.1 million in 3Q16.
- Gross margin was 23.0% in 3Q17, compared to 25.8% in
2Q17 and 30.0% in 3Q16.
Fourth Quarter 2017
Guidance:
The following statements are forward looking statements based on
current expectations and involved risks and uncertainties, some of
which are set forth under "Safe Harbor Statements" below. The
Company expects:
- Revenue to increase by 1% to 3% QoQ.
- Gross margin to range from 18% to 20%.
- Non-GAAP operating expenses, excluding the effect of employee
bonus accrual, government funding and gain from the disposal of
living quarters, to range from $204 million
to $210 million.
- Non-controlling interests of our majority-owned subsidiaries to
range from positive $48 million to
positive $50 million (losses to be
borne by non-controlling interests).
Dr. Haijun Zhao and Dr.
Liang Mong Song, SMIC's co-Chief
Executive Officers commented, "Our third quarter revenue was in
line with guidance and grew 2.5% quarter over quarter. The
sequential growth came largely from the broad-based recovery in
smartphone related shipments. By process node, 28nm wafer revenue
grew 38.9% quarter over quarter, and 0.18um grew 33.8% quarter over
quarter.
In the three years preceding 2017, SMIC had grown revenue and
profitability on high utilizations, and in these two years, we have
entered a period of transition as we prepare our technology and
facilities for the next stage of growth. In the near-term, our
growth drivers include: 28nm, flash memory, fingerprint sensors,
and power management ICs. In the long-term, we work to speed up
execution and focus our resources on key technology platforms, in
which we strive to be the foundry-of-choice.
We believe in the importance of focusing our investment into
strategic areas that support the long-term growth, profitability,
and viability of our business. With our strengthened team, focused
direction, and strong position in China, SMIC is well positioned to execute on
our targets and benefit from the opportunities in the IC market. We
work hard to grow the sustainable value of the company for all our
stakeholders."
Conference Call / Webcast Announcement
Date: November 15, 2017
Time: 8:30 a.m. Beijing time
Dial-in numbers and pass code:
China
|
+86
400-620-8038
|
(Pass code:
SMIC)
|
Hong Kong
|
+852
3018-6771
|
(Pass code:
SMIC)
|
Taiwan
|
+886
2-2650-7825
|
(Pass code:
SMIC)
|
United States, New
York
|
+1
845-675-0437
|
(Pass code:
SMIC)
|
The call will be webcast live with audio at
http://www.smics.com/eng/investors/ir_presentations.php or
https://edge.media-server.com/m6/p/upos75uf.
An archived version of the webcast, along with an electronic
copy of this news release will be available on the SMIC website for
a period of 12 months following the webcast.
About SMIC
Semiconductor Manufacturing International Corporation ("SMIC";
NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries
in the world and the largest and most advanced foundry in mainland
China. SMIC provides integrated
circuit (IC) foundry and technology services on process nodes from
0.35 micron to 28 nanometer. Headquartered in Shanghai, China, SMIC has an international
manufacturing and service base. In China, SMIC has a 300mm wafer fabrication
facility (fab) and a 200mm fab in Shanghai; a 300mm fab and a majority-owned
300mm fab for advanced nodes in Beijing; 200mm fabs in Tianjin and Shenzhen; and a majority-owned joint-venture
300mm bumping facility in Jiangyin; additionally, in Italy SMIC has a majority-owned 200mm fab.
SMIC also has marketing and customer service offices in the U.S.,
Europe, Japan, and Taiwan, and a representative office in
Hong Kong.
For more information, please visit www.smics.com.
Safe Harbor Statements
(Under the Private Securities
Litigation Reform Act of 1995)
This press release contains, in addition to historical
information, "forward-looking statements" within the meaning of the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements, including
statements under "Fourth Quarter 2017 Guidance", "CapEx Summary"
and the statements contained in the quotes of our co-Chief
Executive Officers are based on SMIC's current assumptions,
expectations and projections about future events. SMIC uses words
like "believe," "anticipate," "intend," "estimate," "expect,"
"project," "target" and similar expressions to identify forward
looking statements, although not all forward-looking statements
contain these words. These forward-looking statements are
necessarily estimates reflecting the best judgment of SMIC's senior
management and involve significant risks, both known and unknown,
uncertainties and other factors that may cause SMIC's actual
performance, financial condition or results of operations to be
materially different from those suggested by the forward-looking
statements including, among others, risks associated with
cyclicality and market conditions in the semiconductor industry,
intense competition in the semiconductor industry, SMIC's reliance
on a small number of customers, timely wafer acceptance by SMIC's
customers, timely introduction of new technologies, SMIC's ability
to ramp new products into volume, supply and demand for
semiconductor foundry services, industry overcapacity, shortages in
equipment, components and raw materials, availability of
manufacturing capacity, financial stability in end markets, orders
or judgments from pending litigation, intensive intellectual
property litigation in semiconductor industry, general economic
conditions and fluctuations in currency exchange rates.
In addition to the information contained in this press release,
you should also consider the information contained in our other
filings with the SEC, including our annual report on Form 20-F
filed with the SEC on April 27, 2017,
especially in the "Risk Factors" section and such other documents
that we may file with the SEC or The Hong Kong Stock Exchange
Limited ("SEHK") from time to time, including current reports on
Form 6-K. Other unknown or unpredictable factors also could have
material adverse effects on our future results, performance or
achievements. In light of these risks, uncertainties, assumptions
and factors, the forward-looking events discussed in this press
release may not occur. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date stated or, if no date is stated, as of the date of this
press release. Except as may be required by law, SMIC undertakes no
obligation and does not intend to update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
About Non-Generally Accepted Accounting Principles
("non-GAAP") Financial Measures
To supplement SMIC's consolidated financial results presented in
accordance with IFRS, SMIC uses in this press release non-GAAP
measures of operating results that are adjusted to exclude finance
cost, depreciation and amortization, income tax benefits and
expenses, the effect of employee bonus accrual, government funding
and gain from the disposal of living quarters. This earnings
release also includes fourth quarter 2017 guidance for non-GAAP
operating expenses. The presentation of non-GAAP financial measures
is not intended to be considered in isolation or as a substitute
for the financial information prepared and presented in accordance
with IFRS. This earnings release includes EBITDA, EBITDA margin and
non-GAAP operating expenses which consist of total operating
expenses as adjusted to exclude the effect of employee bonus
accrual, government funding and gain from the disposal of living
quarters. These non-GAAP financial measures are not calculated or
presented in accordance with, and are not alternatives or
substitutes for financial measures prepared in accordance with
IFRS, and should be read only in conjunction with the Group's
financial measures prepared in accordance with IFRS. The Group's
non-GAAP financial measures may be different from similarly-titled
non-GAAP financial measures used by other companies.
SMIC believes that use of these non-GAAP financial measures
facilitates investors' and management's comparisons to SMIC's
historical performance. The Group's management regularly uses these
non-GAAP financial measures to understand, manage and evaluate the
Group's business and make financial and operational decisions.
The accompanying table has more information and reconciliations
of each non-GAAP financial measure to its most directly comparable
GAAP financial measure. A reconciliation of non-GAAP guidance
measures to corresponding GAAP measures is not available on a
forward-looking basis because the effect of these adjustment items
excluded for the purpose of non-GAAP operating expenses guidance
are subject to some unpredictable conditions that cannot be
estimated with reasonable certainty.
To see the complete results including
financial tables, please click here:
http://www.smics.com/attachment/20171114151038979152440_en.pdf
Contact:
Investor
Relations
|
+86-21-3861-0000 ext.
12804
|
ir@smics.com
|
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SOURCE Semiconductor Manufacturing International Corporation