4Q19 posts record high revenue of NT$41.85
billion; FY19 EPS up 41% YoY to NT$0.82
Fourth Quarter 2019 Overview1:
- Revenue: NT$41.85 billion (US$1.39 billion)
- Gross margin: 16.7%
- Foundry revenue from 28nm: 10%; Foundry operating margin:
4.9%
- Foundry capacity utilization rate: 92%
- Net income attributable to stockholders of the parent:
NT$3.84 billion (US$128 million)
- Earnings per share: NT$0.33; earnings per ADS:
US$0.055
United Microelectronics Corporation (NYSE: UMC; TWSE:
2303) (“UMC” or “The Company”), a leading global semiconductor
foundry, today announced its consolidated operating results for the
fourth quarter of 2019.
Fourth quarter consolidated revenue was NT$41.85 billion, up
10.9% QoQ from NT$37.74 billion in 3Q19 and up 17.8% YoY from
NT$35.52 billion in 4Q18. Consolidated gross margin for 4Q19 was
16.7%. Net income attributable to the stockholders of the parent
was NT$3.84 billion, with earnings per ordinary share of
NT$0.33.
Jason Wang, co-president of UMC, said, “During the fourth
quarter, we started to account for the foundry operations at our
recently acquired USJC (Fab 12M) in Japan. In spite of currency
headwinds encountered in the foreign exchange markets, our foundry
revenue increased 10.9% QoQ to NT$41.83 billion, leading to a
foundry operating margin of 4.9%. Utilization rate increased to
92%, bringing wafer shipments to 2.04 million 8-inch equivalent
wafers primarily driven by the communication and computing
segments. For the year, our earnings per share increased 41% YoY to
NT$0.82. Our continued disciplined CAPEX approach also enabled UMC
to generate a total of NT$37.1 billion in free cash flow, up 19%
YoY. In terms of technology, we recently validated our 22nm process
on a USB 2.0 test vehicle, demonstrating the technology readiness
of this design rule shrink from 28nm. UMC’s 22nm process features a
10% area reduction, better power-to-performance ratio and enhanced
RF capabilities compared to our existing 28nm High-K/Metal Gate
technology.”
Co-president Wang further commented, “Looking to the first
quarter of 2020, based on customer forecasts, the overall business
outlook appears to remain consistent with the previous quarter,
primarily due to stable wafer demand across wireless communication
and computer peripheral segments. As we receive new product
tape-outs that will enter future production pipelines, we expect to
benefit from 5G and IoT trends that will generate additional
semiconductor demand, specifically in wireless devices as well as
power management applications. While our focus remains to maintain
a disciplined capital expenditure spending, owing to mid to long
term customer and market demand, we have setup our 2020 capex
budget of US$1 billion. In the meantime, UMC will continue to
penetrate into new segments and expand our presence in existing
markets; our core competence in process technology development, and
world-class foundry service will strengthen our position in
delivering logic and specialty manufacturing solutions.”
Summary of Operating Results
Operating Results
(Amount: NT$ million)
4Q19
3Q19
QoQ % change
4Q18
YoY % change
Operating Revenues
41,849
37,738
10.9
35,517
17.8
Gross Profit
6,968
6,433
8.3
4,601
51.4
Operating Expenses
(6,165)
(5,131)
20.2
(6,396)
(3.6)
Net Other Operating Income and
Expenses
1,215
1,207
0.6
1,206
0.7
Operating Income (Loss)
2,018
2,509
(19.6)
(589)
-
Net Non-Operating Income and Expenses
946
(532)
-
(1,998)
-
Net Income (Loss) Attributable to
Stockholders of the Parent
3,837
2,929
31.0
(1,707)
-
EPS (NT$ per share)
0.33
0.25
(0.14)
(US$ per ADS)
0.055
0.042
(0.023)
Operating revenues in 4Q19 increased 10.9% to NT$41.85 billion,
including NT$41.83 billion from the foundry segment. Revenue
contribution from 40nm and below technologies declined to 32%.
Gross profit increased 8.3% quarterly to NT$6.97 billion, or 16.7%
of revenue. Operating expenses increased 20.2% to NT$6.17 billion.
Net other operating income remained flat at NT$1.22 billion,
leading to an operating income of NT$2.02 billion. Net
non-operating income was NT$946 million. Net income attributable to
stockholders of the parent was NT$3.84 billion.
Earnings per ordinary share for the quarter was NT$0.33.
Earnings per ADS was US$0.055. The basic weighted average number of
outstanding shares in 4Q19 was 11,708,869,140, compared with
11,708,239,978 shares in 3Q19 and 12,111,826,935 shares in 4Q18.
The diluted weighted average number of outstanding shares was
13,073,000,039 in 4Q19, compared with 13,049,025,428 shares in 3Q19
and 12,111,826,935 shares in 4Q18. The fully diluted share count on
December 31, 2019 was approximately 13,089,079,000.
Detailed Financials Section
COGS & Expenses
(Amount: NT$ million)
4Q19
3Q19
QoQ % change
4Q18
YoY % change
Operating Revenues
41,849
37,738
10.9
35,517
17.8
COGS
(34,881)
(31,305)
11.4
(30,916)
12.8
Depreciation
(11,069)
(10,707)
3.4
(10,228)
8.2
Other Mfg. Costs
(23,812)
(20,598)
15.6
(20,688)
15.1
Gross Profit
6,968
6,433
8.3
4,601
51.4
Gross Margin (%)
16.7%
17.1%
13.0%
Operating Expenses
(6,165)
(5,131)
20.2
(6,396)
(3.6)
G&A
(1,603)
(1,344)
19.2
(1,339)
19.7
Sales & Marketing
(996)
(970)
2.8
(903)
10.4
R&D
(3,453)
(2,813)
22.7
(3,745)
(7.8)
Expected Credit Losses
(113)
(4)
2,903.5
(409)
(72.5)
Net Other Operating Income &
Expenses
1,215
1,207
0.6
1,206
0.7
Operating Income (Loss)
2,018
2,509
(19.6)
(589)
-
Operating revenues grew 10.9% QoQ to NT$41.85 billion. COGS
increased 11.4% to NT$34.88 billion, as other manufacturing costs
increased 15.6% to NT$23.81 billion, mainly as a result of higher
wafer shipments while depreciation was up 3.4% to NT$11.07 billion.
Gross profit grew 8.3% to NT$6.97 billion. Operating expenses rose
20.2% to NT$6.17 billion. R&D expenses grew 22.7% sequentially
to NT$3.45 billion, representing 8.3% of 4Q19 operating revenues.
General & Administrative (G&A) expenses were up 19.2% to
NT$1.60 billion. Net other operating income was NT$1.22 billion. In
4Q19, operating income totaled NT$2.02 billion.
Non-Operating Income and
Expenses
(Amount: NT$ million)
4Q19
3Q19
4Q18
Non-Operating Income and Expenses
946
(532)
(1,998)
Net Interest Income and Expenses
(468)
(503)
(438)
Net Investment Gain and Loss
1,064
736
(1,859)
Exchange Gain and Loss
188
(752)
304
Other Gain and Loss
162
(13)
(5)
Net non-operating income in 4Q19 was NT$946 million, mainly
resulting from NT$1.06 billion in net investment gain, partly
offset by NT$468 million in net interest expense.
Cash Flow Summary
(Amount: NT$ million)
For the 3-Month Period Ended
Dec. 31, 2019
For the 3-Month Period Ended
Sep. 30, 2019
Cash Flow from Operating Activities
37,533
(3,080)
Net income before tax
2,964
1,977
Depreciation & Amortization
12,775
12,050
Expected credit losses
113
4
Share of profit of associates and
joint ventures
(642)
(109)
Income tax paid
(52)
(99)
Changes in working capital &
others
22,375
(16,903)
Cash Flow from Investing Activities
(17,844)
(3,968)
Acquisition of subsidiaries
(12,801)
-
Acquisition of PP&E
(3,502)
(3,550)
Acquisition of intangible assets
(935)
(732)
Others
(606)
314
Cash Flow from Financing Activities
(9,716)
4,137
Bank loans
(9,551)
11,168
Cash dividends
3
(6,914)
Others
(168)
(117)
Effect of Exchange Rate
(1,238)
(692)
Net Cash Flow
8,735
(3,603)
Beginning balance
86,755
90,356
Changes in non-current assets held for
sale
2
2
Ending balance
95,492
86,755
In 4Q19, cash inflow from operating activities was NT$37.53
billion. Cash outflow from investing activities totaled NT$17.84
billion, which included NT$12.80 billion in the acquisition of USJC
and NT$3.50 billion in PP&E spending, resulting in free cash
flow of NT$33.81 billion. Cash outflow from financing activities
totaled NT$9.72 billion, primarily from NT$9.55 billion in the
repayment of bank loans. Net cash inflow in 4Q19 was NT$8.74
billion. Over the next 12 months, the company expects to repay
NT$4.70 billion in bank loans.
Current Assets
(Amount: NT$ billion)
4Q19
3Q19
4Q18
Cash and Cash Equivalents
95.49
86.76
83.66
Notes & Accounts Receivable
25.73
23.41
23.88
Days Sales Outstanding
54
58
64
Inventories, net
21.72
19.99
18.20
Days of Inventory
55
58
53
Total Current Assets
153.76
163.49
141.19
Cash and cash equivalents increased to NT$95.49 billion. Days of
inventory decreased to 55 days.
Liabilities
(Amount: NT$ billion)
4Q19
3Q19
4Q18
Total Current Liabilities
72.71
70.33
49.90
Notes & Accounts Payable
8.88
6.63
6.80
Short-Term Credit / Bonds
36.81
40.08
18.23
Payable on Equipment
3.03
3.00
4.01
Other
23.99
20.62
20.86
Long-Term Credit / Bonds
47.89
55.23
67.08
Long-Term Investment Liabilities
20.09
20.17
20.41
Total Liabilities
162.97
169.00
158.07
Debt to Equity
79%
82%
77%
Current liabilities increased to NT$72.71 billion. Total
liabilities decreased to NT$162.97 billion, leading to a debt to
equity ratio of 79%.
Analysis of Revenue2 for Foundry Segment
Revenue Breakdown by
Region
Region
4Q19
3Q19
2Q19
1Q19
4Q18
North America
30%
33%
31%
32%
38%
Asia Pacific
55%
59%
59%
57%
51%
Europe
6%
6%
7%
7%
8%
Japan
9%
2%
3%
4%
3%
Revenue from Asia Pacific decreased to 55%, while revenue
contribution from North American customers declined to 30%. Revenue
from Japan rose to 9% while European business remained flat at
6%.
Revenue Breakdown by
Geometry
Geometry
4Q19
3Q19
2Q19
1Q19
4Q18
14nm and below
0%
0%
0%
0%
1%
14nm<x<=28nm
10%
12%
13%
10%
10%
28nm<x<=40nm
22%
26%
24%
20%
23%
40nm<x<=65nm
16%
14%
14%
14%
13%
65nm<x<=90nm
18%
12%
12%
12%
11%
90nm<x<=0.13um
11%
11%
14%
15%
13%
0.13um<x<=0.18um
12%
13%
12%
15%
15%
0.18um<x<=0.35um
8%
9%
8%
11%
11%
0.5um and above
3%
3%
3%
3%
3%
Revenue contribution from 28nm was 10% while 40nm business
accounted for 22% of sales.
Revenue Breakdown by Customer
Type
Customer Type
4Q19
3Q19
2Q19
1Q19
4Q18
Fabless
87%
92%
93%
94%
92%
IDM
13%
8%
7%
6%
8%
Revenue from fabless customers decreased to 87% of revenue.
Revenue Breakdown by
Application (1)
Application
4Q19
3Q19
2Q19
1Q19
4Q18
Computer
13%
13%
14%
15%
15%
Communication
54%
54%
52%
48%
44%
Consumer
24%
26%
28%
29%
30%
Others
9%
7%
6%
8%
11%
Revenue from communication remained flat at 54%, while business
from consumer applications declined to 24%. Computer related
applications remained at 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 4Q19 remained flat.
(To view ASP trend, visit
http://www.umc.com/english/investors/4Q19_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry Segment
Wafer Shipments
4Q19
3Q19
2Q19
1Q19
4Q18
Wafer Shipments (8” K
equivalents)
2,042
1,806
1,730
1,611
1,711
Quarterly Capacity Utilization
Rate
4Q19
3Q19
2Q19
1Q19
4Q18
Utilization Rate
92%
91%
88%
83%
88%
Total Capacity (8” K
equivalents)
2,237
2,004
1,970
1,937
1,958
In 4Q19, the acquisition of USJC helped to lift wafer shipments
to increase 13.1% QoQ to 2,042K, while quarterly capacity rose
11.6% QoQ to 2,237K. As a result, the overall utilization rate in
4Q19 was 92%. Full-year 2019 utilization rate was 89%.
Capacity4 for Foundry Segment
Total capacity in the fourth quarter reached 2,237K 8-inch
equivalent wafers, which included 98K 12-inch equivalent wafers
from Fab 12M. We foresee that first quarter capacity will grow 1.8%
sequentially to 2,278K 8-inch equivalent wafers, mainly reflecting
the capacity expansion at Fab 8N and Fab 12A.
Annual Capacity in
thousands of wafers
Quarterly Capacity in
thousands of wafers
FAB
Geometry (um)
2019
2018
2017
2016
FAB
1Q20E
4Q19
3Q19
2Q19
WTK
6"
3.5 – 0.45
370
396
422
423
WTK
92
93
93
93
Fab 8A
8"
0.5 – 0.25
825
825
825
827
Fab 8A
200
207
207
207
Fab 8C
8"
0.35 – 0.11
436
383
357
348
Fab 8C
112
111
111
109
Fab 8D
8"
0.13 – 0.09
359
347
341
342
Fab 8D
92
90
90
90
Fab 8E
8"
0.5 – 0.18
426
418
418
419
Fab 8E
112
111
107
105
Fab 8F
8"
0.18 – 0.11
434
431
417
401
Fab 8F
121
110
110
108
Fab 8S
8"
0.18 – 0.11
372
372
347
336
Fab 8S
93
93
93
93
Fab 8N
8"
0.5 – 0.11
831
771
753
750
Fab 8N
228
218
208
205
Fab 12A
12"
0.13 – 0.014
997
997
970
885
Fab 12A
260
250
250
250
Fab 12i
12"
0.13 – 0.040
595
555
537
584
Fab 12i
154
155
155
144
Fab 12X
12"
0.040 – 0.028
203
183
97
9
Fab 12X
52
51
51
51
Fab 12M
12"
0.090 – 0.040
98
-
-
-
Fab 12M
97
98
-
-
Total(1)
8,148
7,673
7,304
6,983
Total
2,278
2,237
2,004
1,970
YoY Growth Rate
6%
5%
5%
6%
(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
2019
2018
2017
2016
2015
CAPEX
$ 0.6
$ 0.7
$ 1.4
$ 2.8
$ 1.9
2020 CAPEX Plan
8"
12"
Total
15%
85%
US$1.0 billion
CAPEX spending in 4Q19 was US$122 million, leading to a total
spending US$574 million in capital expenditure for full year 2019.
2020 capex budget will be US$1.0 billion.
Brief Summary of Full Year 2019 Consolidated Results
Operating Results
(Amount: NT$ million)
2019
2018
YoY % change
Operating Revenues
148,202
151,253
(2.0)
Gross Profit
21,315
22,840
(6.7)
Operating Expenses
(21,807)
(22,160)
(1.6)
Net Other Operating Income &
Expenses
5,182
5,117
1.3
Operating Income
4,690
5,797
(19.1)
Net Non-Operating Income &
Expenses
1,046
(3,613)
-
Income Tax Benefit
393
459
(14.3)
Net Income Attributable to Stockholders of
the Parent
9,708
7,073
37.2
EPS (NT$ per share)
0 .82
0.58
(US$ per ADS)
0.136
0.096
- Consolidated revenue in NTD declined 2.0% YoY to NT$148.20
billion, from NT$151.25 billion in 2018.
- Gross margin was 14.4%, compared to 15.1% in 2018.
- Operating margin was 3.2%, compared to 3.8% in 2018.
- Net income attributable to stockholders of the parent was
NT$9.71 billion in 2019.
- EPS was NT$0.82, or EPADS of US$0.136 for 2019.
- The contribution from 28nm technologies and below accounted for
11% in 2019. 40nm business accounted for 23% in 2019.
Annual Sales Breakdown in Revenue for Foundry Segment
Region
2019
2018
North America
32%
38%
Asia Pacific
57%
50%
Europe
6%
9%
Japan
5%
3%
Technology
2019
2018
14nm and below
0%
3%
14nm<x<=28nm
11%
13%
28nm<x<=40nm
23%
25%
40nm<x<=65nm
15%
12%
65nm<x<=90nm
14%
8%
90nm<x<=0.13um
12%
12%
0.13um<x<=0.18um
13%
14%
0.18um<x<=0.35um
9%
10%
0.5um and above
3%
3%
Customer Type
2019
2018
Fabless
91%
92%
IDM
9%
8%
Application
2019
2018
Computer
14%
16%
Communication
52%
45%
Consumer
26%
29%
Others
8%
10%
First Quarter of 2020 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To remain flat
- ASP in USD: To remain flat
- Profitability: Gross profit margin will be in the mid-teens %
range
- Foundry Segment Capacity Utilization: around 90%
- 2020 CAPEX for Foundry Segment: US$1 billion
Recent Developments / Announcements
Feb 4, 2020
UMC Leads all Semi Foundries with CDP
“Leadership Level” Designation on Global Climate Change
Assessment
Feb 3, 2020
UMC Announces 14nm certification on
Mentor’s Calibre Eco Fill Flow
Jan 20, 2020
eMemory and UMC Qualify NeoFuse IP on the
Foundry’s 28nm High Voltage Process
Dec 2, 2019
UMC Announces 22nm Technology Readiness
Following Silicon Validation
Nov 18, 2019
Faraday and UMC Collaborate to Launch a
Complete Set of 22nm Fundamental IP
Oct 30, 2019
UMC 3Q 2019 Financial Results
Please visit UMC’s website for further details regarding the
above announcements
Conference Call / Webcast Announcement
Wednesday, February 5, 2020
Time: 5:00 PM (Taipei) / 4:00 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 4Q19 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 19,000 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.
Safe Harbor Statements
This press release contains 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. These
forward-looking statements include, but are not limited to,
statements regarding anticipated sales for first quarter; product
releases and market shares; opportunities in the 5G and IoT
markets; anticipated wafer demands in market segments; execution of
corporate strategies; repayment of bank loans; expected foundry
capacities; the ability to obtain new business opportunities; and
information under the heading “First Quarter of 2020 Outlook and
Guidance.”
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, including its Annual Report on Form 20-F. 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.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet As of December 31, 2019
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$)
December 31, 2019
US$
NT$
%
Assets Current assets Cash and cash equivalents
3,175
95,492
25.8%
Notes & Accounts receivable, net
855
25,729
7.0%
Inventories, net
722
21,715
5.9%
Other current assets
360
10,821
2.8%
Total current assets
5,112
153,757
41.5%
Non-current assets Funds and investments
1,375
41,362
11.2%
Property, plant and equipment
4,999
150,374
40.6%
Right-of-use assets
276
8,292
2.2%
Other non-current assets
545
16,402
4.5%
Total non-current assets
7,195
216,430
58.5%
Total assets
12,307
370,187
100.0%
Liabilities Current liabilities Short-term loans
399
12,015
3.2%
Payables
934
28,083
7.6%
Current portion of long-term liabilities
824
24,796
6.7%
Other current liabilities
260
7,820
2.1%
Total current liabilities
2,417
72,714
19.6%
Non-current liabilities Bonds payable
621
18,688
5.1%
Long-term loans
971
29,200
7.9%
Lease liabilities, noncurrent
182
5,461
1.5%
Other non-current liabilities
1,227
36,910
9.9%
Total non-current liabilities
3,001
90,259
24.4%
Total liabilities
5,418
162,973
44.0%
Equity Equity attributable to the parent company Capital
3,909
117,576
31.8%
Additional paid-in capital
1,315
39,550
10.7%
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
1,655
49,798
13.4%
Treasury stock
(4)
(120)
(0.0%)
Total equity attributable to the parent company
6,875
206,804
55.9%
Non-controlling interests
14
410
0.1%
Total equity
6,889
207,214
56.0%
Total liabilities and equity
12,307
370,187
100.0%
Note:New Taiwan Dollars have been translated into U.S. Dollars at
the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) Except Per Share and Per ADS Data
Year over Year
Comparison
Quarter over Quarter
Comparison
Three-Month Period Ended
Three-Month Period Ended
December 31, 2019
December 31, 2018
Chg.
December 31, 2019
September 30, 2019
Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ % Operating revenues
1,391
41,849
1,181
35,517
17.8%
1,391
41,849
1,255
37,738
10.9%
Operating costs
(1,159)
(34,881)
(1,028)
(30,916)
12.8%
(1,159)
(34,881)
(1,041)
(31,305)
11.4%
Gross profit
232
6,968
153
4,601
51.4%
232
6,968
214
6,433
8.3%
16.7%
16.7%
13.0%
13.0%
16.7%
16.7%
17.1%
17.1%
Operating expenses - Sales and marketing expenses
(33)
(996)
(30)
(903)
10.4%
(33)
(996)
(32)
(970)
2.8%
- General and administrative expenses
(53)
(1,603)
(44)
(1,339)
19.7%
(53)
(1,603)
(45)
(1,344)
19.2%
- Research and development expenses
(115)
(3,453)
(125)
(3,745)
(7.8%)
(115)
(3,453)
(94)
(2,813)
22.7%
- Expected credit losses
(4)
(113)
(14)
(409)
(72.5%)
(4)
(113)
(0)
(4)
2,903.5%
Subtotal
(205)
(6,165)
(213)
(6,396)
(3.6%)
(205)
(6,165)
(171)
(5,131)
20.2%
Net other operating income and expenses
40
1,215
40
1,206
0.7%
40
1,215
40
1,207
0.6%
Operating income (loss)
67
2,018
(20)
(589)
-
67
2,018
83
2,509
(19.6%)
4.8%
4.8%
(1.7%)
(1.7%)
4.8%
4.8%
6.7%
6.7%
Net non-operating income and expenses
32
946
(66)
(1,998)
-
32
946
(17)
(532)
-
Income (loss) from continuing operationsbefore income tax
99
2,964
(86)
(2,587)
-
99
2,964
66
1,977
49.9%
7.1%
7.1%
(7.3%)
(7.3%)
7.1%
7.1%
5.2%
5.2%
Income tax benefit (expense)
6
191
(14)
(413)
-
6
191
(2)
(39)
-
Net income (loss)
105
3,155
(100)
(3,000)
-
105
3,155
64
1,938
62.8%
7.5%
7.5%
(8.4%)
(8.4%)
7.5%
7.5%
5.1%
5.1%
Other comprehensive income (loss)
(51)
(1,538)
4
110
-
(51)
(1,538)
20
591
-
Total comprehensive income (loss)
54
1,617
(96)
(2,890)
-
54
1,617
84
2,529
(36.0%)
Net income (loss) attributable to: Stockholders of the
parent
128
3,837
(57)
(1,707)
-
128
3,837
97
2,929
31.0%
Non-controlling interests
(23)
(682)
(43)
(1,293)
(47.3%)
(23)
(682)
(33)
(991)
(31.2%)
Comprehensive income (loss) attributable to: Stockholders
of the parent
76
2,291
(53)
(1,608)
-
76
2,291
118
3,540
(35.3%)
Non-controlling interests
(22)
(674)
(43)
(1,282)
(47.5%)
(22)
(674)
(34)
(1,011)
(33.4%)
Earnings per share-basic
0.011
0.33
(0.005)
(0.14)
0.011
0.33
0.008
0.25
Earnings per ADS (2)
0.055
1.65
(0.023)
(0.70)
0.055
1.65
0.042
1.25
Weighted average number of shares outstanding (in millions)
11,709
12,112
11,709
11,708
Notes: (1) New Taiwan Dollars have been translated
into U.S. Dollars at the December 31, 2019 exchange rate of NT
$30.08 per U.S. Dollar. (2) 1 ADS equals 5 common shares.
UNITED
MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated
Condensed Statements of Comprehensive Income Figures in
Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except
Per Share and Per ADS Data
For the Three-Month Period
Ended
For the Twelve-Month Period
Ended
December 31, 2019
December 31, 2019
US$
NT$
%
US$
NT$
%
Operating revenues
1,391
41,849
100.0%
4,927
148,202
100.0%
Operating costs
(1,159)
(34,881)
(83.3%)
(4,218)
(126,887)
(85.6%)
Gross profit
232
6,968
16.7%
709
21,315
14.4%
Operating expenses - Sales and marketing expenses
(33)
(996)
(2.4%)
(127)
(3,808)
(2.6%)
- General and administrative expenses
(53)
(1,603)
(3.8%)
(181)
(5,436)
(3.6%)
- Research and development expenses
(115)
(3,453)
(8.3%)
(394)
(11,860)
(8.0%)
- Expected credit losses
(4)
(113)
(0.3%)
(23)
(703)
(0.5%)
Subtotal
(205)
(6,165)
(14.8%)
(725)
(21,807)
(14.7%)
Net other operating income and expenses
40
1,215
2.9%
172
5,182
3.5%
Operating income
67
2,018
4.8%
156
4,690
3.2%
Net non-operating income and expenses
32
946
2.3%
35
1,046
0.7%
Income from continuing operationsbefore income tax
99
2,964
7.1%
191
5,736
3.9%
Income tax benefit
6
191
0.4%
13
393
0.2%
Net income
105
3,155
7.5%
204
6,129
4.1%
Other comprehensive income (loss)
(51)
(1,538)
(3.7%)
113
3,409
2.3%
Total comprehensive income (loss)
54
1,617
3.8%
317
9,538
6.4%
Net income attributable to: Stockholders of the parent
128
3,837
9.2%
323
9,708
6.6%
Non-controlling interests
(23)
(682)
(1.7%)
(119)
(3,579)
(2.5%)
Comprehensive income (loss) attributable to: Stockholders
of the parent
76
2,291
5.5%
437
13,132
8.9%
Non-controlling interests
(22)
(674)
(1.7%)
(120)
(3,594)
(2.5%)
Earnings per share-basic
0.011
0.33
0.027
0.82
Earnings per ADS (2)
0.055
1.65
0.136
4.10
Weighted average number of sharesoutstanding (in millions)
11,709
11,785
Notes: (1) New Taiwan Dollars have been translated into U.S.
Dollars at the December 31, 2019 exchange rate of NT $30.08 per
U.S. Dollar. (2) 1 ADS equals 5 common shares.
UNITED
MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated
Condensed Statement of Cash Flows For The Twelve-Month Period
Ended December 31, 2019 Figures in Millions of New Taiwan Dollars
(NT$) and U.S. Dollars (US$)
US$
NT$
Cash flows from operating activities : Net income before tax
191
5,736
Depreciation & Amortization
1,642
49,390
Expected credit losses
23
703
Share of profit of associates and joint ventures
(38)
(1,147)
Income tax paid
(21)
(619)
Changes in working capital & others
28
841
Net cash provided by operating activities
1,825
54,904
Cash flows from investing activities : Acquisition of
subsidiaries (net of cash acquired)
(426)
(12,801)
Acquisition of property, plant and equipment
(549)
(16,518)
Acquisition of intangible assets
(81)
(2,444)
Others
3
81
Net cash used in investing activities
(1,053)
(31,682)
Cash flows from financing activities : Increase in
short-term loans
(33)
(994)
Redemption of bonds
(83)
(2,500)
Proceeds from long-term loans
381
11,450
Repayments of long-term loans
(252)
(7,573)
Cash dividends
(230)
(6,911)
Treasury stock acquired
(99)
(2,972)
Others
(12)
(367)
Net cash used in financing activities
(328)
(9,867)
Effect of exchange rate changes on cash and cash equivalents
(51)
(1,525)
Net increase in cash and cash equivalents
393
11,830
Cash and cash equivalents at beginning of period
2,782
83,662
Cash and cash equivalents at end of period
3,175
95,492
Note: New Taiwan Dollars have been translated into
U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08
per U.S. Dollar.
1Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with TIFRSs recognized
by Financial Supervisory Commission in the ROC, which is different
from IFRSs issued by the International Accounting Standards Board.
They represent comparisons among the three-month period ending
December 31, 2019, the three-month period ending September 30,
2019, and the equivalent three-month period that ended December 31,
2018. For all 4Q19 results, New Taiwan Dollar (NT$) amounts have
been converted into U.S. Dollars at the December 31, 2019 exchange
rate of NT$ 30.08 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/20200205005286/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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