UMC fully acquires USJC, which will enhance
company’s market share by 10% 3Q19 EPS jumps 67% QoQ to
NT$0.25 per share Third Quarter 2019
Overview1:
- Revenue: NT$37.74 billion (US$1.22 billion)
- Gross margin: 17.1%
- Foundry revenue from 28nm: 12%; Foundry operating margin:
6.9%
- Foundry capacity utilization rate: 91%
- Net income attributable to stockholders of the parent:
NT$2.93 billion (US$94 million)
- Earnings per share: NT$0.25; earnings per ADS:
US$0.040
United Microelectronics Corporation (NYSE: UMC; TWSE:
2303) (“UMC” or “The Company”), a leading global semiconductor
foundry, today announced its consolidated operating results for the
third quarter of 2019.
Third quarter consolidated revenue was NT$37.74 billion, up 4.7%
QoQ from NT$36.03 billion in 2Q19 and down 4.2% YoY from NT$39.39
billion in 3Q18. Consolidated gross margin for 3Q19 was 17.1%. Net
income attributable to stockholders of the parent was NT$2.93
billion, with earnings per ordinary share of NT$0.25.
Jason Wang, co-president of UMC, said, “In the third quarter,
foundry revenue grew 4.8% QoQ to NT$37.73 billion, leading to a
foundry operating margin of 6.9%. Utilization rate increased to
91%, bringing wafer shipments to 1.81 million 8-inch equivalent
wafers. The increase in wafer demand was primarily driven by
inventory restocking in the wireless communication markets, which
included products such as WiFi, RF switch and power management ICs.
On October 1st, UMC also completed the full acquisition of MIFS, a
300mm fab based in Japan that is currently manufacturing 90nm, 65nm
and 40nm products. The fab, which fits our specialty technology
focus and long term growth projections, has been renamed United
Semiconductor Japan Co., Ltd. (USJC). USJC will increase our
foundry market share, provide business synergies and benefit from
economies of scale while broadening UMC’s comprehensive specialty
and logic technologies to serve Japanese and international
customers.”
Co-president Wang further commented, “Looking to the fourth
quarter, based on customers’ forecasts, the overall business
outlook appears to remain firm primarily due to sustained wafer
demand from new product deployment across communications and
computing market segments. These product rollouts include RF ICs
and OLED driver ICs found in 5G smartphones and power management
ICs designed into computing and solid-state drive applications. We
expect these product releases to enable UMC to further gain market
share in 5G wireless devices as well as in non-volatile memory
applications. We will continue to pursue our corporate strategy of
focusing on business expansion in mature specialty and logic
technologies while delivering world-class service to our customers.
With UMC’s economy of scale and our core strength in foundry
technologies, we look forward to securing new business
opportunities by delivering a variety of differentiated
manufacturing solutions in the semiconductor industry.”
Summary of Operating Results
Operating Results
(Amount: NT$ million)
3Q19
2Q19
QoQ % change
3Q18
YoY % change
Operating Revenues
37,738
36,031
4.7
39,387
(4.2)
Gross Profit
6,433
5,652
13.8
6,922
(7.1)
Operating Expenses
(5,131)
(5,578)
(8.0)
(5,702)
(10.0)
Net Other Operating Income and
Expenses
1,207
1,687
(28.4)
1,215
(0.6)
Operating Income
2,509
1,761
42.5
2,435
3.0
Net Non-Operating Income and Expenses
(532)
(617)
(13.9)
(1,606)
(66.9)
Net Income Attributable to Stockholders of
the Parent
2,929
1,740
68.3
1,720
70.2
EPS (NT$ per share)
0.25
0.15
0.14
(US$ per ADS)
0.040
0.024
0.023
Operating revenues in 3Q19 grew 4.7% to NT$37.74 billion,
including NT$37.73 billion from the foundry segment. Revenue
contribution from 40nm and below technologies slightly increased to
38%. Gross profit increased 13.8% quarterly to NT$6.4 billion, or
17.1% of revenue. Operating expenses declined 8.0% to NT$5.13
billion. Net other operating income declined to NT$1.21 billion,
leading to an operating income of NT$2.51 billion. Net
non-operating expense was NT$532 million. Net income attributable
to stockholders of the parent was NT$2.93 billion.
Earnings per ordinary share for the quarter was NT$0.25.
Earnings per ADS was US$0.040. The basic weighted average number of
outstanding shares in 3Q19 was 11,708,239,978, compared with
11,817,657,562 shares in 2Q19 and 12,053,892,152 shares in 3Q18.
The diluted weighted average number of outstanding shares was
13,049,025,428 in 3Q19, compared with 13,079,662,179 shares in 2Q19
and 13,354,955,886 shares in 3Q18. The fully diluted share count on
September 30, 2019 was approximately 13,065,104,000.
Detailed Financials Section
COGS & Expenses
(Amount: NT$ million)
3Q19
2Q19
QoQ % change
3Q18
YoY % change
Operating Revenues
37,738
36,031
4.7
39,387
(4.2)
COGS
(31,305)
(30,379)
3.1
(32,465)
(3.6)
Depreciation
(10,707)
(11,424)
(6.3)
(11,549)
(7.3)
Other Mfg. Costs
(20,598)
(18,955)
8.7
(20,916)
(1.5)
Gross Profit
6,433
5,652
13.8
6,922
(7.1)
Gross Margin (%)
17.1%
15.7%
17.6%
Operating Expenses
(5,131)
(5,578)
(8.0)
(5,702)
(10.0)
G&A
(1,344)
(1,251)
7.5
(1,386)
(2.9)
Sales & Marketing
(970)
(953)
1.8
(987)
(1.8)
R&D
(2,813)
(2,787)
0.9
(3,329)
(15.5)
Expected Credit Losses
(4)
(587)
(99.4)
-
100.0
Net Other Operating
Income & Expenses
1,207
1,687
(28.4)
1,215
(0.6)
Operating Income
2,509
1,761
42.5
2,435
3.0
Operating revenues grew 4.7% to NT$37.74 billion. COGS increased
3.1% to NT$31.31 billion, as depreciation declined 6.3% to NT$10.71
billion while other manufacturing costs increased 8.7% to NT$20.60
billion primarily due to higher wafer shipments. Gross profit grew
13.8% to NT$6.43 billion. Operating expenses declined 8.0% to
NT$5.13 billion. R&D expense represented 7.5% of 3Q19 operating
revenues and net other operating income was NT$1.21 billion. In
3Q19, the company realized an operating income of NT$2.51
billion.
Non-Operating Income and
Expenses
(Amount: NT$ million)
3Q19
2Q19
3Q18
Non-Operating Income and Expenses
(532)
(617)
(1,606)
Net Interest Income and
Expenses
(503)
(497)
(507)
Net Investment Gain and
Loss
736
69
(126)
Exchange Gain and Loss
(752)
(182)
(961)
Other Gain and Loss
(13)
(7)
(12)
Net non-operating expense in 3Q19 was NT$532 million, mainly
resulting from NT$752 million in exchange loss and NT$503 million
in net interest expense, partly offset by NT$736 million in net
investment gain.
Cash Flow Summary
(Amount: NT$ million)
For the 3-Month Period Ended
Sep. 30, 2019
For the 3-Month Period Ended
Jun. 30, 2019
Cash Flow from Operating Activities
(3,080)
12,268
Net income before tax
1,977
1,144
Depreciation &
Amortization
12,050
12,185
Expected credit losses
4
587
Share of profit of associates
and
joint ventures
(109)
(201)
Income tax paid
(99)
(135)
Changes in working capital
& others
(16,903)
(1,312)
Cash Flow from Investing Activities
(3,968)
(4,188)
Acquisition of PP&E
(3,550)
(3,904)
Acquisition of intangible
assets
(732)
(247)
Others
314
(37)
Cash Flow from Financing Activities
4,137
(6,467)
Bank loans
11,168
(1,197)
Redemption of bonds
-
(2,500)
Treasury stock acquired
-
(2,641)
Cash dividends
(6,914)
-
Others
(117)
(129)
Effect of Exchange Rate
(692)
10
Net Cash Flow
(3,603)
1,623
Beginning balance
90,356
88,738
Changes in non-current assets
held for sale
2
(5)
Ending balance
86,755
90,356
In 3Q19, the company set aside an amount of JPY 54.4 billion as
other current assets in order to complete the acquisition of USJC.
As a result, cash outflow from operating activities was NT$3.08
billion. Free cash outflow was NT$7.27 billion due to the PP&E
spending of NT$3.55 billion and NT$732 million in the acquisition
of intangible assets. Cash inflow from financing activities totaled
NT$4.14 billion, primarily from NT$11.17 billion in bank loans,
partly offset by NT$6.91 billion in the payment of cash dividends.
Net cash outflow in 3Q19 was NT$3.60 billion. Over the next 12
months, the company expects to repay NT$3.13 billion in bank
loans.
Current Assets
(Amount: NT$ billion)
3Q19
2Q19
3Q18
Cash and Cash Equivalents
86.76
90.36
81.52
Notes & Accounts Receivable
23.41
24.39
25.61
Days Sales Outstanding
58
60
61
Inventories, net
19.99
19.63
17.59
Days of Inventory
58
58
50
Total Current Assets
163.49
150.51
140.15
Cash and cash equivalents decreased to NT$86.76 billion. Days of
inventory remained at 58 days.
Liabilities
(Amount: NT$ billion)
3Q19
2Q19
3Q18
Total Current Liabilities
70.33
77.06
51.43
Notes & Accounts
Payable
6.63
6.91
6.89
Short-Term Credit / Bonds
40.08
39.43
20.33
Payable on Equipment
3.00
2.60
2.59
Dividends Payable
-
6.92
-
Other
20.62
21.20
21.62
Long-Term Credit / Bonds
55.23
45.39
67.46
Long-Term Investment Liabilities
20.17
20.83
20.16
Total Liabilities
169.00
167.84
160.11
Debt to Equity
82%
83%
75%
Current liabilities decreased to NT$70.33 billion. Total
liabilities increased to NT$169.00 billion, leading to a debt to
equity ratio of 82%.
Analysis of Revenue2 for Foundry Segment
Revenue Breakdown by
Region
Region
3Q19
2Q19
1Q19
4Q18
3Q18
North America
33%
31%
32%
38%
34%
Asia Pacific
59%
59%
57%
51%
52%
Europe
6%
7%
7%
8%
11%
Japan
2%
3%
4%
3%
3%
Revenue from Asia Pacific remained at 59%, while revenue
contribution from North American customers climbed to 33%. Revenue
from Europe and Japan was 6% and 2%, respectively.
Revenue Breakdown by
Geometry
Geometry
3Q19
2Q19
1Q19
4Q18
3Q18
14nm and below
0%
0%
0%
1%
5%
14nm<x<=28nm
12%
13%
10%
10%
13%
28nm<x<=40nm
26%
24%
20%
23%
22%
40nm<x<=65nm
14%
14%
14%
13%
12%
65nm<x<=90nm
12%
12%
12%
11%
10%
90nm<x<=0.13um
11%
14%
15%
13%
11%
0.13um<x<=0.18um
13%
12%
15%
15%
14%
0.18um<x<=0.35um
9%
8%
11%
11%
10%
0.5um and above
3%
3%
3%
3%
3%
Revenue contribution from 28nm was 12% while 40nm business
represented 26% of sales.
Revenue Breakdown by Customer
Type
Customer Type
3Q19
2Q19
1Q19
4Q18
3Q18
Fabless
92%
93%
94%
92%
93%
IDM
8%
7%
6%
8%
7%
Revenue from fabless customers decreased to 92% of revenue.
Revenue Breakdown by Application
(1)
Application
3Q19
2Q19
1Q19
4Q18
3Q18
Computer
13%
14%
15%
15%
19%
Communication
54%
52%
48%
44%
43%
Consumer
26%
28%
29%
30%
28%
Others
7%
6%
8%
11%
10%
The communication segment grew to 54% of revenue, while revenue
from consumer applications declined to 26%. Computer related
applications represented 13% 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 3Q19 slightly
increased.
(To view ASP trend, visit
http://www.umc.com/english/investors/3Q19_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry Segment
Wafer Shipments
3Q19
2Q19
1Q19
4Q18
3Q18
Wafer Shipments (8” K equivalents)
1,806
1,730
1,611
1,711
1,804
Quarterly Capacity Utilization
Rate
3Q19
2Q19
1Q19
4Q18
3Q18
Utilization Rate
91%
88%
83%
88%
94%
Total Capacity (8” K equivalents)
2,004
1,970
1,937
1,958
1,938
In 3Q19, wafer shipments grew 4.4% to 1,806K. Quarterly capacity
increased 1.7% QoQ to 2,004K, resulting in an overall utilization
rate of 91%.
Capacity4 for Foundry Segment
Total capacity in the third quarter reached 2,004K 8-inch
equivalent wafers. We foresee that fourth quarter capacity will
grow to 2,237K 8-inch equivalent wafers, representing a sequential
increase of 11.6% mainly due to the acquisition of USJC (Fab 12M)
and the continuous capacity expansion at Fab 8N.
Annual Capacity in
thousands of wafers
Quarterly Capacity in
thousands of wafers
FAB
Geometry (um)
2018
2017
2016
2015
FAB
4Q19E
3Q19
2Q19
1Q19
WTK
6"
3.5 – 0.45
396
422
423
421
WTK
93
93
93
91
Fab 8A
8"
0.5 – 0.25
825
825
827
813
Fab 8A
207
207
207
204
Fab 8C
8"
0.35 – 0.11
383
357
348
347
Fab 8C
111
111
109
106
Fab 8D
8"
0.13 – 0.09
347
341
342
341
Fab 8D
90
90
90
89
Fab 8E
8"
0.5 – 0.18
418
418
419
418
Fab 8E
111
107
105
103
Fab 8F
8"
0.18 – 0.11
431
417
401
388
Fab 8F
110
110
108
107
Fab 8S
8"
0.18 – 0.11
372
347
336
335
Fab 8S
93
93
93
92
Fab 8N
8"
0.5 – 0.11
771
753
750
667
Fab 8N
218
208
205
201
Fab 12A
12"
0.13 – 0.014
997
970
885
793
Fab 12A
250
250
250
246
Fab 12i
12"
0.13 – 0.040
555
537
584
572
Fab 12i
155
155
144
141
Fab 12X
12"
0.040 – 0.028
183
97
9
-
Fab 12X
51
51
51
50
Total(1)
7,673
7,304
6,983
6,617
Fab 12M
98
-
-
-
YoY Growth Rate
5%
5%
6%
5%
Total
2,237
2,004
1,970
1,937
(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$700 million
CAPEX spending in 3Q19 was US$134 million, leading to US$452
million in capital expenditure for the first three quarters of
2019. Full year 2019 CAPEX budget will be revised to US$700
million.
Fourth Quarter of 2019 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To increase by 10%
- ASP in USD: To remain flat
- Profitability: Gross profit margin will be in the mid-teens %
range
- Foundry Segment Capacity Utilization: Close to 90%
- 2019 CAPEX for Foundry Segment: US$700 million
Recent Developments / Announcements
Sep 25, 2019
UMC Receives Final Approval for 100%
Acquisition of Mie Fujitsu Semiconductor
Sep 16, 2019
UMC Selected as a DJSI Global Component
for 12th Consecutive Year
Aug 12, 2019
UMC Named as FTSE4Good Index Series
Constituent for the Second Consecutive Year
Aug 6, 2019
Cadence and UMC Collaborate on
Certification for 28HPC+ Process
Jul 24, 2019
UMC 2Q 2019 Financial Results
Please visit UMC’s website for further details
regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, October 30, 2019
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 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 3Q19 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. The company provides mature and advanced IC production
with a focus on Specialty Technologies to serve 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, volume
production 14nm FinFET, 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 12
wafer fabs are strategically located throughout Asia and are able
to produce more than 700,000 wafers per month. The company employs
approximately 19,500 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 September 30, 2019
Figures in Millions of New
Taiwan Dollars (NT$) and U.S. Dollars (US$)
September 30, 2019 US$ NT$ % Assets Current assets
Cash and cash equivalents
2,797
86,755
23.2%
Notes & Accounts receivable, net
755
23,412
6.3%
Inventories, net
644
19,990
5.3%
Other current assets
1,074
33,333
8.9%
Total current assets
5,270
163,490
43.7%
Non-current assets Funds and
investments
1,301
40,361
10.8%
Property, plant and equipment
4,802
148,946
39.8%
Right-of-use assets
260
8,074
2.2%
Other non-current assets
425
13,173
3.5%
Total non-current assets
6,788
210,554
56.3%
Total assets
12,058
374,044
100.0%
Liabilities Current liabilities
Short-term loans
531
16,483
4.4%
Payables
734
22,763
6.1%
Current portion of long-term liabilities
761
23,599
6.3%
Other current liabilities
241
7,480
2.0%
Total current liabilities
2,267
70,325
18.8%
Non-current liabilities
Bonds payable
602
18,687
5.0%
Long-term loans
1,178
36,543
9.8%
Lease liabilities, noncurrent
170
5,258
1.4%
Other non-current liabilities
1,231
38,187
10.2%
Total non-current liabilities
3,181
98,675
26.4%
Total liabilities
5,448
169,000
45.2%
Equity Equity attributable to the parent company
Capital
3,780
117,243
31.3%
Additional paid-in capital
1,269
39,360
10.5%
Retained earnings, exchange differences on translation
of foreign operations, unrealized gains or
losses on financial assets measured at fair
value through other comprehensive income and
gains or losses on hedging Instruments
1,552
48,156
12.9%
Treasury stock
(4)
(120)
(0.0%)
Total equity attributable to the parent company
6,597
204,639
54.7%
Non-controlling interests
13
405
0.1%
Total equity
6,610
205,044
54.8%
Total liabilities and equity
12,058
374,044
100.0%
Note:New Taiwan
Dollars have been translated into U.S. Dollars at the September 30,
2019 exchange rate of NT $31.02 per U.S. Dollar.
UNITED MICROELECTRONICS
CORPORATION AND SUBSIDIARIES
Consolidated Condensed
Statements of Comprehensive Income
Figures in Millions of New
Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per
ADS Data
Year over Year Comparison Quarter over Quarter
Comparison Three-Month Period Ended Three-Month Period Ended
September 30, 2019 September 30, 2018 Chg. September 30, 2019 June
30, 2019 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ % Operating
revenues
1,217
37,738
1,270
39,387
(4.2%)
1,217
37,738
1,162
36,031
4.7%
Operating costs
(1,010)
(31,305)
(1,047)
(32,465)
(3.6%)
(1,010)
(31,305)
(980)
(30,379)
3.1%
Gross profit
207
6,433
223
6,922
(7.1%)
207
6,433
182
5,652
13.8%
17.1%
17.1%
17.6%
17.6%
17.1%
17.1%
15.7%
15.7%
Operating expenses - Sales and marketing expenses
(31)
(970)
(32)
(987)
(1.8%)
(31)
(970)
(31)
(953)
1.8%
- General and administrative expenses
(43)
(1,344)
(45)
(1,386)
(2.9%)
(43)
(1,344)
(39)
(1,251)
7.5%
- Research and development expenses
(91)
(2,813)
(107)
(3,329)
(15.5%)
(91)
(2,813)
(90)
(2,787)
0.9%
- Expected credit losses
(0)
(4)
-
-
100.0%
(0)
(4)
(19)
(587)
(99.4%)
Subtotal
(165)
(5,131)
(184)
(5,702)
(10.0%)
(165)
(5,131)
(179)
(5,578)
(8.0%)
Net other operating income and expenses
39
1,207
39
1,215
(0.6%)
39
1,207
54
1,687
(28.4%)
Operating income
81
2,509
78
2,435
3.0%
81
2,509
57
1,761
42.5%
6.7%
6.7%
6.2%
6.2%
6.7%
6.7%
4.9%
4.9%
Net non-operating income and expenses
(17)
(532)
(51)
(1,606)
(66.9%)
(17)
(532)
(20)
(617)
(13.9%)
Income from continuing operations before income tax
64
1,977
27
829
138.7%
64
1,977
37
1,144
72.9%
5.2%
5.2%
2.1%
2.1%
5.2%
5.2%
3.2%
3.2%
Income tax expense
(2)
(39)
(21)
(632)
(93.8%)
(2)
(39)
(7)
(202)
(80.7%)
Net income
62
1,938
6
197
884.7%
62
1,938
30
942
105.7%
5.1%
5.1%
0.5%
0.5%
5.1%
5.1%
2.6%
2.6%
Other comprehensive income (loss)
20
591
(50)
(1,568)
-
20
591
24
743
(20.5%)
Total comprehensive income (loss)
82
2,529
(44)
(1,371)
-
82
2,529
54
1,685
50.1%
Net income attributable to:
Stockholders of the parent
94
2,929
55
1,720
70.2%
94
2,929
56
1,740
68.3%
Non-controlling interests
(32)
(991)
(49)
(1,523)
(35.0%)
(32)
(991)
(26)
(798)
24.1%
Comprehensive income (loss) attributable
to: Stockholders of the parent
114
3,540
9
279
1,169.8%
114
3,540
80
2,488
42.3%
Non-controlling interests
(32)
(1,011)
(53)
(1,650)
(38.7%)
(32)
(1,011)
(26)
(803)
26.0%
Earnings per share-basic
0.008
0.25
0.005
0.14
0.008
0.25
0.005
0.15
Earnings per ADS (2)
0.040
1.25
0.023
0.70
0.040
1.25
0.024
0.75
Weighted average number of shares outstanding (in millions)
11,708
12,054
11,708
11,818
Notes: (1)
New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2019 exchange rate of NT $31.02 per U.S. Dollar.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) Except Per Share and Per ADS Data For the Three-Month
Period Ended For the Nine-Month Period Ended September 30, 2019
September 30, 2019 US$ NT$ % US$ NT$ % Operating
revenues
1,217
37,738
100.0%
3,429
106,353
100.0%
Operating costs
(1,010)
(31,305)
(82.9%)
(2,966)
(92,006)
(86.5%)
Gross profit
207
6,433
17.1%
463
14,347
13.5%
Operating expenses - Sales and marketing
expenses
(31)
(970)
(2.6%)
(91)
(2,811)
(2.6%)
- General and administrative expenses
(43)
(1,344)
(3.5%)
(124)
(3,833)
(3.6%)
- Research and development expenses
(91)
(2,813)
(7.5%)
(271)
(8,407)
(7.9%)
- Expected credit losses
(0)
(4)
(0.0%)
(19)
(591)
(0.6%)
Subtotal
(165)
(5,131)
(13.6%)
(505)
(15,642)
(14.7%)
Net other operating income and expenses
39
1,207
3.2%
128
3,967
3.7%
Operating income
81
2,509
6.7%
86
2,672
2.5%
Net non-operating income and expenses
(17)
(532)
(1.5%)
3
99
0.1%
Income from continuing operations before income
tax
64
1,977
5.2%
89
2,771
2.6%
Income tax benefit (expense)
(2)
(39)
(0.1%)
7
202
0.2%
Net income
62
1,938
5.1%
96
2,973
2.8%
Other
comprehensive income (loss)
20
591
1.6%
159
4,947
4.7%
Total comprehensive income (loss)
82
2,529
6.7%
255
7,920
7.5%
Net income attributable to:
Stockholders of the parent
94
2,929
7.8%
189
5,871
5.5%
Non-controlling interests
(32)
(991)
(2.7%)
(93)
(2,898)
(2.7%)
Comprehensive income (loss) attributable
to: Stockholders of the parent
114
3,540
9.4%
349
10,841
10.2%
Non-controlling interests
(32)
(1,011)
(2.7%)
(94)
(2,921)
(2.7%)
Earnings per share-basic
0.008
0.25
0.016
0.50
Earnings per ADS (2)
0.040
1.25
0.081
2.50
Weighted average number of shares
outstanding (in millions)
11,708
11,811
Notes: (1) New Taiwan Dollars have been translated into U.S.
Dollars at the September 30, 2019 exchange rate of NT $31.02 per
U.S. Dollar. (2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows For The
Nine-Month Period Ended September 30, 2019 Figures in
Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
US$ NT$
Cash flows from operating activities :
Net income before tax
89
2,771
Depreciation & Amortization
1,180
36,615
Expected credit losses
19
591
Share of profit of associates and joint ventures
(16)
(506)
Income tax paid
(18)
(567)
Changes in working capital & others
(694)
(21,532)
Net cash provided by operating activities
560
17,372
Cash flows from investing activities :
Acquisition of property, plant and equipment
(420)
(13,017)
Acquisition of intangible assets
(49)
(1,509)
Others
23
688
Net cash used in investing activities
(446)
(13,838)
Cash flows from financing activities :
Increase in short-term loans
113
3,493
Redemption of bonds
(81)
(2,500)
Proceeds from long-term loans
369
11,459
Repayments of long-term loans
(81)
(2,518)
Cash dividends
(223)
(6,914)
Treasury stock acquired
(96)
(2,972)
Others
(6)
(199)
Net cash used in financing activities
(5)
(151)
Effect of exchange rate changes on cash and cash equivalents
(9)
(287)
Net increase in cash and cash equivalents
100
3,096
Cash and cash equivalents at beginning of period
2,697
83,662
Cash and cash equivalents at end of period
2,797
86,758
Reconciliation of the balances of cash and cash equivalents
at end of period : Cash and cash equivalents balances on the
consolidated balance sheets
2,797
86,755
Cash and cash equivalents included in non-current assets held for
sale
0
3
Cash and cash equivalents at end of period
2,797
86,758
Note: New Taiwan Dollars have
been translated into U.S. Dollars at the September 30, 2019
exchange rate of NT $31.02 per U.S. Dollar.
1Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with TIFRSs recognized
by Financial Supervisory Commission in the ROC, which is different
from IFRSs issued by the International Accounting Standards Board.
They represent comparisons among the three-month period ending
September 30, 2019, the three-month period ending June 30, 2019,
and the equivalent three-month period that ended September 30,
2018. For all 3Q19 results, New Taiwan Dollar (NT$) amounts have
been converted into U.S. Dollars at the September 30, 2019 exchange
rate of NT$ 31.02 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/20191030005423/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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