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Chip Design Authors: Jnan Dash, Jason Bloomberg, Trevor Bradley, David Strom

Related Topics: Consumer Electronics, Chip Design

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UMC Reports 2009 First Quarter Results

Significant revenue growth will drive 2Q to operating profitability

    TAIPEI, Taiwan, April 29 /PRNewswire-Asia-FirstCall/ --

    First Quarter 2009 Overview (Note 1):

    -- Revenue decreased 41.5% sequentially to NT$10.84 billion (US$319
       million)
    -- Gross margin of -40%, operating margin of -67.5%
    -- Net loss of NT$8.16 billion (US$240 million)
    -- Operating Cash inflow of NT$3.75 billion, with cash & cash eq. of
       NT$35.91 billion
    -- Loss per share of NT$0.64; Loss per ADS of US$0.094

Note 1: Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are un-audited, unconsolidated, and represent comparisons among the three-month period ending March 31, 2009, the three-month period ending December 31, 2008, and the equivalent three-month period that ended March 31, 2008. For all 1Q09 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2009 exchange rate of NT$33.95 per U.S. Dollar.

United Microelectronics Corporation (NYSE: UMC; TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the first quarter of 2009. Revenue decreased 41.5% quarter-over-quarter to NT$10.84 billion, from NT$18.54 billion in 4Q08, and decreased 54.8% year-over-year from NT$24 billion in 1Q08. Gross margin for the quarter was -40%, operating margin was -67.5%. Net loss in 1Q09 was NT$8.16 billion, with loss-per-share at NT$0.64.

Dr. Shih-Wei Sun, CEO of UMC said, "Q1 2009 was challenging for UMC, due to a sharp drop in customer demand caused by the global economic downturn. As a result, UMC's wafer shipments for the quarter dropped to 384 thousand 8-inch equivalent wafers with utilization rate at 30%. UMC also reported higher operating costs associated with the adoption of ROC SFAS No.10, resulting in gross margin of -40%. Despite these factors, UMC remained financially solid in Q1, maintaining positive free cash flow of NT$2.18 billion and cash equivalents at NT$35.91 billion. However, recent orders indicate strong demand for Q2, confirming our assessment from last quarter's conference that demand had already bottomed out. UMC expects Q2 revenues to grow significantly with loss turning to profit. Moreover, we are optimistic about the longer-term prospect of the foundry industry and demand growth. As global economic uncertainties continue, we will closely watch our customers' inventory consumption, end market demands and the introduction of new applications so that we can quickly respond to any status changes when necessary."

Dr. Sun continued, "With regard to UMC's recent rush orders, we will work diligently to meet urgent order deliveries for these customers. However, our mid- to long-term capacity plans, including capacity conversion to a more favorable technology mix, 45/40nm ramp to 300mm volume production and acquiring the most advanced R&D equipment, are all in progress and fully capable of satisfying our customers' manufacturing requirements."

"UMC's advanced R&D efforts and equipment upgrades will proceed as planned despite economic uncertainties to continuously bolster our long-term competitiveness. For example, we have already delivered customer ICs manufactured on UMC's independently developed high performance 40nm process. The large die-size programmable logic chips are being produced with excellent cycle time and yields. Many other customer 45/40nm designs will enter pilot and verification stages later this year, further contributing to UMC's financial performance when these designs enter volume production. With regard to more advanced 28nm process technology, with several customers involved in the current development stage, we are progressing smoothly at UMC's R&D center in Tainan. For this technology node, UMC will provide low power and high performance Poly/SiON and HK/MG process technologies to meet the performance and power needs of various applications."

Recently, two global semiconductor companies, one from Taiwan and another from the USA, awarded UMC with honors of "2008 Best Fab Award" and "2008 Supplier Excellence Award", respectively. This recognition underscores UMC's strategy of delivering "Customer-Driven Foundry Solutions" to create a win-win situation for UMC and its customers.


    Summary of Operating Results

    Operating Results
                                                   QoQ%                YoY%
    (Amount: NT$ million)       1Q09      4Q08    change      1Q08    change

    Revenue                   10,838    18,541     (41.5)   24,003     (54.8)
    Gross Profit (Loss)       (4,335)     (804)    439.2     3,647        --
    Operating Expenses        (2,982)   (3,073)     (3.0)   (3,386)    (11.9)
    Operating Income (Loss)   (7,317)   (3,877)     88.7       261        --
    Non-op. Income
     (Expenses)                 (843)  (19,081)    (95.6)       (0) 93,566.7
    Net Income (Loss)         (8,160)  (23,510)    (65.3)      206        --
    EPS  (NT$ per share)       (0.64)    (1.81)       --      0.02        --
         (US$ per ADS)        (0.094)   (0.267)       --     0.003        --


Revenue decreased 41.5% QoQ to NT$10.84 billion, from NT$18.54 billion in 4Q08, and decreased 54.8% YoY, from NT$24 billion in 1Q08. Weakening global semiconductor demand was the key reason for the decrease in revenue. Gross loss was NT$4.34 billion, or 40% of revenue, compared to NT$0.8 billion, or 4.3% of 4Q08 revenue. Operating loss for the quarter was NT$7.32 billion, or 67.5% of revenue, compared to NT$3.88 billion, or 20.9% of 4Q08 revenue. Except for weakening demand, the weaker gross margin and operating margin in the first quarter also attributed to the adoption of ROC SFAS No.10, which requires fixed production costs allocated to idle capacity to be accounted for in COGS if actual loading is lower than normal capacity and "Loss on decline in market value and obsolescence of inventories" (LCM) to be accounted for in COGS instead of Non-operating expenses. Net loss in 1Q09 was NT$8.16 billion, compared to NT$23.51 billion in 4Q08.

Loss per ordinary share for the quarter was NT$0.64. Loss per ADS was US$0.094. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 1Q09 was 12,767,114,132, compared with 12,971,740,926 shares in 4Q08 and 13,171,692,578 shares in 1Q08. The diluted weighted average number of outstanding shares was 12,767,114,132 in 1Q09, compared with 12,971,740,926 shares in 4Q08 and 13,418,161,562 shares in 1Q08. The fully diluted share count on March 31, 2009 was 13,576,836 thousand. On March 31, 2009, UMC held 300,000 thousand treasury shares acquired from the 13th share buy-back program. UMC completed the 13th share buy-back program on February 16, 2009.


    Detailed Financials Section

    COGS & Expenses
                                                   QoQ%                 YoY%
    (Amount: NT$ million)        1Q09     4Q08    change    1Q08      change

    Revenue                    10,838   18,541    (41.5)  24,003       (54.8)
    CoGS                      (15,173) (19,345)   (21.6) (20,356)      (25.5)
      Depreciation             (6,973)  (7,682)    (9.2)  (8,098)      (13.9)
      Other Mfg. Costs         (8,200) (11,663)   (29.7) (12,258)      (33.1)
    Gross Profit               (4,335)    (804)   439.2    3,647      (218.9)
    Gross Margin (%)           (40.0%)   (4.3%)      --    15.2%          --
    Total Operating Exp.       (2,982)  (3,073)    (2.9)  (3,386)      (11.9)
      G&A                        (529)    (428)    23.7     (636)      (16.8)
      Sales & Marketing          (632)    (679)    (6.9)    (716)      (11.7)
      R&D                      (1,821)  (1,966)    (7.4)  (2,034)      (10.5)
    Operating Income           (7,317)  (3,877)    88.7      216    (2,903.4)
    Operating Margin (%)       (67.5%)  (20.9%)      --     1.1%          --

Depreciation and amortization expenses totaled NT$8.64 billion in 1Q09, compared to NT$9.15 billion in 4Q08. Depreciation within CoGS decreased by 9.2% to NT$6.97 billion. Following the adoption of ROC SFAS No. 10 in 1Q09, CoGS was higher than if the new rule had not been adopted. General and administration expenses increased to NT$529 million, mainly due to the increase in professional fees. Sales & marketing expenses dropped to NT$632 million in connection with the decrease in IP amortization. R&D expenses decreased to NT$1,821 million due to the expense control activities in 1Q09. As a result, total operating expenses decreased 2.9% to NT$2.98 billion. The total R&D expense was 16.8% of revenue in 1Q09.


    Non-operating Income (Expenses)
    (Amount: NT$ million)                           1Q09      4Q08      1Q08

     Net Non-operating Income (Exp.)                 (843)  (19,081)       0
     Net Interest Income                               37       115      116
     Net Investment Loss                           (1,079)  (15,465)    (224)
     Gain on Disposal of Investment                     0        52      652
     Exchange Gain (Loss)                             255       345     (718)
     Others                                           (56)   (4,128)     174

Net non-operating losses during 1Q09 were NT$843 million. Net investment losses were NT$1.08 billion, including NT$599 million of investment losses accounted for under the equity method and a NT$523 million loss from valuation of ProMos shares. The exchange gain of NT$255 million was partially offset by the valuation loss of forward contract. Therefore, the net exchange gain was NT$78 million.


    Cash Flow Summary
                                     For the 3-Month     For the 3-Month
    (Amount: NT$ million)             Period Ended        Period Ended
                                     Mar. 31, 2009       Dec. 31, 2008
    Cash Flow from Operations                3,746              12,729
      Net Income (Loss)                     (8,160)            (23,510)
      Depreciation & Amortization            8,640               9,154
      Changes in working capital             3,051               4,601
      Others                                   215              22,484
    Cash Flow from Investing                (1,696)             (2,330)
      Capital Expenditures                  (1,568)             (1,471)
      Others                                  (128)               (859)
    Cash Flow from Financing                (2,393)                508
      Long term loan                            --                 700
      Purchase of treasury stock            (2,393)               (191)
      Others                                    --                  (1)
    Effect of exchange rate                    125                  23
    Net Cash Flow                             (218)             10,930

Net cash outflow was NT$218 million in 1Q09. Operating cash flow remained positive even when the utilization rate dropped to 30% in the first quarter. The investing cash outflow primarily reflects the CAPEX in 1Q09 of NT$1.57 billion. The NT$2.39 billion of financing cash outflow was from the purchase of treasury stock in the 13th share buy-back program. Free cash flow (Note 2) for 1Q09 was NT$2.18 billion. Over the next 12 months, UMC will not need to repay any term loans.

    Note 2: Free cash flow = Operating cash flow - Capital expenditures



    Current Assets
    (Amount: NT$ billion)                         1Q09       4Q08       1Q08

    Cash & Cash Equivalents                      35.91      36.12      29.63
    Notes & Accounts Receivable                   6.08       7.80      12.78
      Days Sales Outstanding                        58         54         50
    Inventories                                   7.05       7.77      11.09
      Avg. Inventory Turnover                       45         55         51
    Total Current Assets                         51.50      54.61      60.06

    Cash and cash equivalents decreased NT$0.2 billion to NT$35.91 billion.
The decrease in notes & accounts receivable and inventory primarily reflected
the downward trend of the business.  Average inventory turnover decreased to
45 days at the end of 1Q09.



    Liabilities
    (Amount: NT$ billion)                         1Q09       4Q08       1Q08
    Total Current Liabilities                    10.95      11.43      26.98
      Accounts Payable                            2.58       2.05       4.50
      Short-term Credit / Bonds                   0.00       0.07      10.96
      Others                                      8.37       9.31      11.52
    Long-term Liabilities                         8.20       8.13       7.50
    Total Liabilities                            22.67      23.31      38.08
    Debt to Equity                                 12 %       13 %       17 %

Accounts Payable increased to NT$2.58 billion due to the acquisition of more raw materials during the first quarter. Total liabilities decreased to NT$22.67 billion in 1Q09. UMC's Debt to Equity ratio slightly decreased to 12%.


    Analysis of Revenue( Note 3)

                                      Revenue Breakdown by Region
    Region                      1Q09     4Q08     3Q08     2Q08     1Q08
    North America                53%      57%      60%      50%      58%
    Asia Pacific                 37%      31%      32%      35%      29%
    Europe                        9%      10%       6%      13%      11%
    Japan                         1%       2%       2%       2%       2%

The percentage of revenue from the Asia Pacific region increased to 37%, while the percentage of revenue from the North America and the Europe regions decreased to 53% and 9% in 1Q09.


                                       Revenue Breakdown by Geometry
    Geometry                    1Q09     4Q08     3Q08     2Q08     1Q08
    65nm                         11%       8%       7%       5%       7%
    90nm                         27%      27%      31%      31%      30%
    90nm < x <=0.13um            16%      22%      20%      21%      21%
    0.13um < x <=0.18um          22%      23%      21%      20%      22%
    0.18um < x <=0.35um          18%      15%      16%      18%      14%
    0.5um and above               6%       5%       5%       5%       6%

The percentage of revenue from 0.13um business decreased to 16%. This was due to decreasing demand for communication chips. The percentage of revenue from 90nm and below was 38% in 1Q09.


                                      Revenue Breakdown by Customer Type
    Customer Type                1Q09    4Q08     3Q08     2Q08     1Q08
    Fabless                       80%     80%      74%      71%      70%
    IDM                           20%     20%      26%      29%      30%
    System                         0%      0%       0%       0%       0%

The revenue from Fabless and IDM customers both decreased. The proportion of the revenue from these two types of customers remains unchanged.


                                   Revenue Breakdown by Application (1)
    Application                    1Q09     4Q08     3Q08     2Q08    1Q08
    Computer                         15 %     15 %     16 %     17 %     21 %
    Communication                    57 %     61 %     59 %     58 %     56 %
    Consumer                         25 %     22 %     23 %     22 %     21 %
    Memory                            1 %      1 %      1 %      1 %      1 %
    Others                            2 %      1 %      1 %      2 %      1 %

(1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM drives ICs, LCD drivers, graphic processors, and PDAs. Communication consists of xDSL, DSP, WLAN, LAN controllers, handset components, caller ID devices, etc. Consumer consists of ICs used for DVD players, game consoles, digital cameras, smart cards, toys, etc. Memory consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM.

The percentage of revenue from the communication segment decreased to 57% of total revenue in 1Q09 due to decreasing demand for communication chips, especially in wireline products.

    Note 3: Revenue in this section represents wafer sales.


Blended Average Selling Price Trend

The blended average selling price (ASP) decreased by 10% in US dollar terms during 1Q09, due to a larger portion of the process technology mix coming from older process generations as well as short-term volume discounts to customers.

    (To view ASP trend, visit
http://www.umc.com/english/investors/1Q09_ASP_trend.asp )



    Shipment and Utilization Rate (Note 4)

                                            Wafer Shipments
                               1Q09     4Q08      3Q08      2Q08      1Q08
    Wafer Shipments
    ('000 8-inch eq.)           384      567       883       875       807

                                   Quarterly Capacity Utilization Rate
                               1Q09     4Q08     3Q08      2Q08      1Q08
    Utilization Rate            30%      48%      79%       85%       73%
    Total Capacity
    ('000 8-inch eq.)         1,151    1,151     1,149    1,107     1,100

Wafer shipments dropped 32.3% sequentially to 384 thousand, a decrease from 567 thousand 8-inch equivalent wafers in the previous quarter. Overall utilization rate for the quarter was 30%.

    Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity


Capacity (5)

Capacity for 1Q09 was 1,151 thousand 8-inch equivalent wafers. The total capacity remained the same as from Q408. The total estimated installed capacity in 2Q09 also remains unchanged, although 65nm capacity is increasing due to internal capacity conversion and 8-inch wafer capacity moving to more advanced nodes.


    Annual Capacity in
    thousands of 8-inch wafer equivalents

                FAB       Geometry       2008     2007     2006     2005
                            (um)
    Fab 6A       6"       3.5 - 0.45      328      328      328      344
    Fab 8A       8"       0.5 - 0.25      816      816      816      816
    Fab 8C       8"      0.35 - 0.15      417      400      400      401
    Fab 8D       8"      0.18 - 0.09      257      260      252      274
    Fab 8E       8"       0.5 - 0.18      408      408      406      404
    Fab 8F       8"      0.25 - 0.15      372      372      372      378
    Fab 8S (1)   8"      0.25 - 0.15      291      276      276      278
    Fab 12A      12"     0.18 - 0.065     876      847      754      597
    Fab 12i (2)  12"     0.13 - 0.065     742      601      413      363
    Total (3)                           4,507    4,308    4,017    3,855
    YoY Growth Rate                        5%       7%       4%      22%


    Quarterly Capacity in
    thousands of 8-inch wafer equivalents

    FAB                   2Q09E     1Q09     4Q08     3Q08
    Fab 6A                   82       82       82       82
    Fab 8A                  204      204      204      204
    Fab 8C                  102      105      108      108
    Fab 8D                   66       66       63       63
    Fab 8E                  102      102      102      102
    Fab 8F                   96       93       93       93
    Fab 8S                   75       75       75       75
    Fab 12A                 222      222      222      220
    Fab 12i                 202      202      202      202
    Total (3)             1,151    1,151    1,151    1,149

    (1) Former fab of SiSMC, which was acquired from Silicon Integrated
        Systems in July 2004.
    (2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
        that was merged into UMC in April 2005
    (3) One 6-inch wafer is converted into 0.5625(6sq/8sq) 8-inch equivalent
        wafer; one 12-inch wafer is converted into 2.25(12sq/8sq) 8-inch
        equivalent wafers.

Note 5: 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.


    CAPEX

    UMC Capital Expenditure by Year - in US$ billion

    Year         2008       2007       2006      2005      2004      2003
    CAPEX        $0.35      $0.9       $1.0    $0.7(1)     $1.5      $0.4

    2009 CAPEX Plan
                    8" fab       12" fab               Total
    UMC              4%             96%           Not to exceed
                                                         US$400 million

The capital expenditure budget for 2009 remains unchanged. By the end of the first quarter, UMC's year-to-date CAPEX totaled US$46 million.

    (1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
        1Q05.


    Recent Developments / Announcements

    Apr. 27, 2009 UMC, Springsoft Support Custom Chip Design with 65nm Process
                  Design Kit
    Apr. 27, 2009 UMC Recognized for Excellence by Texas Instruments
    Apr. 22, 2009 UMC Announces Board Meeting Approval for New Director
                  Candidates
                  - Nine candidates for director nomination, including four
                    independent directors and one outside director. Board
                    director re-election will be held during the company's
                    2009 annual shareholders meeting. Candidates for
                    independent directors include three current independent
                    directors: Mr. Chun-Yen Chang, Prof. Chung Laung Liu and
                    Prof. Paul S.C. Hsu, and one new nominee, Prof. Cheng-Li
                    Huang.
                  - The number of independent and outside directors will
                    account for more than half of the 9 seats of board. This
                    action will significantly help to increase operating
                    transparency as well as maintain the interaction and
                    balance between the board and the management team. By
                    continuing to enhance the board and corporate governance
                    structure, UMC hopes to further increase the board's
                    efficiency and supervision to protect shareholders' value.
                  - The 2009 Annual General Meeting will be held on Wednesday,
                    June 10, 2009 at the UMC
                    Recreation Center in Hsinchu Science Park, Taiwan.
    Apr. 8, 2009  UMC Delivers Customer ICs Produced on its High Performance
                  40nm Logic Technology
    Feb. 10, 2009 UMC 4Q 2008 Financial Results
    Feb. 9, 2009  UMC 12i Wins MediaTek's 2008 Best Fab Award

Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.

    Second Quarter of 2009 Outlook & Guidance

    Quarter-over-quarter Guidance:

    -- Wafer shipments: to increase by more than 110%
    -- Wafer ASP in US$: to decrease by less than 5%
    -- Capacity Utilization Rates: approximately 75%
    -- Profitability: gross profit margin to be approximately 20%
    -- The communication segment is expected to be the strongest, followed by
       the computer and consumer segments
    -- 2009 capex budget: not to exceed US$400 million

    Conference Call / Webcast Announcement

    Wednesday, April 29, 2009

    Time:  8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)

    Dial-in numbers and Access Codes:
    USA Toll Free:                 1866 519 4004
    UK Toll Free:                  0808 234 6646
    Singapore and Other Areas:     +65 6735 7955

    Access Code:                   UMC

A live webcast and replay of the 1Q09 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.

About UMC

UMC (NYSE: UMC; TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .

Safe Harbor Statements

This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. 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) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our 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 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 U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3, F-6 and 20-F, in each case as amended. 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 unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP.

This presentation 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
               Unaudited Condensed Unconsolidated Balance Sheet
                              As of Mar 31, 2009
    Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)


                                                       Mar 31, 2009
                                                US$         NT$          %
       ASSETS
       Current Assets
        Cash and Cash Equivalents             1,058       35,906       17.4%
        Financial assets at fair value
         through profit or loss, current         33        1,128        0.5%
        Notes & Accounts Receivable             179        6,075        2.9%
        Inventories                             207        7,045        3.4%
        Other Current Assets                     40        1,347        0.8%
           Total Current Assets               1,517       51,501       25.0%

       Non-Current Assets
        Funds and Long-term Investments       1,586       53,840       26.1%
        Property, Plant and Equipment         2,787       94,615       45.9%
        Other Assets                            182        6,176        3.0%
           Total Non-Current Assets           4,555      154,631       75.0%
       TOTAL ASSETS                           6,072      206,132      100.0%

       LIABILITIES
       Current Liabilities
        Financial liabilities at fair
         value through profit or loss,
         current                                  1           33        0.0%
        Payables                                312       10,582        5.1%
        Other Current Liabilities                10          338        0.2%
           Total Current Liabilities            323       10,953        5.3%

       Non-Current Liabilities
        Bonds Payable                           221        7,498        3.6%
        Long-term Loans                          21          700        0.3%
        Other Liabilities                       103        3,518        1.8%
           Total Non-Current Liabilities        345       11,716        5.7%
       TOTAL LIABILITIES                        668       22,669       11.0%

       SHAREHOLDERS' EQUITY
       Capital Stock                          3,826      129,878       63.0%
       Additional Paid-in Capital             1,713       58,163       28.2%
       Retained Earnings, Unrealized Gain
        on Financial Assets and
        Translation Adjustment                  (61)      (2,065)      (1.0%)
       Treasury Stock                           (74)      (2,513)      (1.2%)
       TOTAL SHAREHOLDERS' EQUITY             5,404      183,463       89.0%
       TOTAL LIABILITIES AND
        SHAREHOLDERS' EQUITY                  6,072      206,132      100.0%

    Note: New Taiwan Dollars have been translated into U.S. Dollars at the
          March 31, 2009 exchange rate of NT $33.95 per U.S. Dollar.
          All figures are in ROC GAAP.



                    UNITED MICROELECTRONICS CORPORATION
            Unaudited Condensed Unconsolidated Income Statement

Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

                     Except Per Share and Per ADS Data

                                           Year over Year Comparison
                                       Three-Month Period Ended
                                    Mar 31, 2009     Mar 31, 2008         %
                                    US$      NT$     US$     NT$         Chg.
    Net Sales                         319   10,838    707   24,003     (54.8%)
    Cost of Goods Sold               (447) (15,173)  (600) (20,356)    (25.5%)
    Net Gross Profit (Loss)          (128)  (4,335)   107    3,647    (218.9%)
                                   (40.0%)  (40.0%) 15.2%    15.2%         --
    Operating Expenses
      - Sales & Marketing              18      632     21      716     (11.7%)
      - General & Administrative       15      529     18      636     (16.8%)
      - Research & Development         54    1,821     60    2,034     (10.5%)
                                       87    2,982     99    3,386     (11.9%)
    Operating Income (Loss)          (215)  (7,317)     8      261  (2,903.4%)
                                   (67.5%)  (67.5%)  1.1%     1.1%         --

    Net Non-Operating Income
     (Expenses)                       (25)    (843)    (0)      (0) 93,566.7%
    Income (Loss) from continuing
     operations before income tax    (240)  (8,160)     8      261  (3,226.4%)
                                   (75.3%)  (75.3%)  1.1%     1.1%         --

    Income Tax (Expense) Benefit       (0)      (0)    (2)     (55)   (100.0%)
    Net Income (Loss)                (240)  (8,160)     6      206  (4,061.2%)
                                   (75.3%)  (75.3%)  0.9%     0.9%         --

    Earnings per Share             (0.019)   (0.64) 0.001     0.02         --
    Earnings per ADS (2)           (0.094)   (3.20) 0.003     0.10         --
    Weighted Average Number of
     Shares Outstanding
     (in millions)                     --   12,767     --   13,172         --


    Note:
    (1) New Taiwan Dollars have been translated into U.S. Dollars at the March
        31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
        All figures are in ROC GAAP.
    (2) 1 ADS equals 5 common shares.


                    UNITED MICROELECTRONICS CORPORATION
            Unaudited Condensed Unconsolidated Income Statement
                                 (Continued)

Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

                     Except Per Share and Per ADS Data

                                        Quarter over Quarter Comparison
                                       Three-Month Period Ended
                                    Mar 31, 2009      Dec 31, 2008        %
                                    US$      NT$      US$      NT$       Chg.
    Net Sales                         319   10,838      546   18,541   (41.5%)
    Cost of Goods Sold               (447) (15,173)    (570) (19,345)  (21.6%)
    Net Gross Profit (Loss)          (128)  (4,335)     (24)    (804)  439.2%
                                   (40.0%)  (40.0%)   (4.3%)   (4.3%)
    Operating Expenses
      - Sales & Marketing              18      632       20      679    (6.9%)
      - General & Administrative       15      529       13      428    23.6%
      - Research & Development         54    1,821       58    1,966    (7.4%)
                                       87    2,982       91    3,073    (3.0%)
    Operating Income (Loss)          (215)  (7,317)    (115)  (3,877)   88.7%
                                   (67.5%)  (67.5%)  (20.9%)  (20.9%)     --

    Net Non-Operating Income
     (Expenses)                       (25)    (843)    (561) (19,081)  (95.6%)
    Income (Loss) from continuing
     operations before income tax    (240)  (8,160)    (676) (22,958)  (64.5%)
                                   (75.3%)  (75.3%) (123.8%) (123.8%)      --

    Income Tax (Expense) Benefit       (0)      (0)     (16)    (552) (100.0%)
    Net Income (Loss)                (240)  (8,160)    (692) (23,510)  (65.3%)
                                   (75.3%)  (75.3%) (126.8%) (126.8%)      --

    Earnings per Share             (0.019)   (0.64)  (0.053)   (1.81)      --
    Earnings per ADS (2)           (0.094)   (3.20)  (0.267)   (9.05)      --
    Weighted Average Number of
     Shares Outstanding
     (in millions)                     --   12,767       --   12,972       --


    Note:
    (1) New Taiwan Dollars have been translated into U.S. Dollars at the March
        31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
        All figures are in ROC GAAP.
    (2) 1 ADS equals 5 common shares.



                       UNITED MICROELECTRONICS CORPORATION
               Unaudited Condensed Unconsolidated Income Statement
      Figures in Million 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 Year Ended
                                 Mar 31, 2009                Mar 31, 2009
                              US$      NT$       %      US$      NT$       %
    Net Sales                 319   10,838   100.0%     319   10,838   100.0%
    Cost of Goods Sold       (447) (15,173) (140.0%)   (447) (15,173) (140.0%)
    Net Gross Profit
     (Loss)                  (128)  (4,335)  (40.0%)   (128)  (4,335)  (40.0%)

    Operating Expenses
      - Sales & Marketing      18      632     5.8%      18      632     5.8%
      - General &
         Administrative        15      529     4.9%      15      529     4.9%
      - Research &
         Development           54    1,821    16.8%      54    1,821    16.8%
                               87    2,982    27.5%      87    2,982    27.5%
    Operating Income
     (Loss)                  (215)  (7,317)  (67.5%)   (215)  (7,317)  (67.5%)

    Net Non-Operating
     Income (Expenses)        (25)    (843)   (7.8%)    (25)    (843)   (7.8%)
    Income (Loss) from
     continuing operations
     before income tax       (240)  (8,160)  (75.3%)   (240)  (8,160)  (75.3%)

    Income Tax (Expense)
     Benefit                   (0)      (0)    0.0%      (0)      (0)    0.0%
    Net Income (Loss)        (240)  (8,160)  (75.3%)   (240)  (8,160)  (75.3%)

    Earnings per Share     (0.019)   (0.64)     --   (0.019)   (0.64)     --
    Earnings per ADS (2)   (0.094)   (3.20)     --   (0.094)   (3.20)     --

    Weighted Average
     Number of Shares
     Outstanding
     (in millions)             --   12,767      --      --    12,767      --

    Note:
    (1) New Taiwan Dollars have been translated into U.S. Dollars at the March
        31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
        All figures are in ROC GAAP.
    (2) 1 ADS equals 5 common shares.



                       UNITED MICROELECTRONICS CORPORATION
            Unaudited Condensed Unconsolidated Statement of Cash Flows
                     For The Three Months Ended Mar. 31, 2009
       Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

                                                       USD                NTD
    Cash flows from operating activities:
        Net Income                                    (240)            (8,160)
        Depreciation & Amortization                    254              8,640
        Gain on decline in market value
         and obsolescence of inventories               (34)            (1,156)
        Investment loss accounted for
         under the equity method                        18                599
        Loss on valuation of financial
         assets and liabilities                         19                646
        Gain on disposal of property,
         plant and equipment                            (0)                (2)
        Exchange loss on financial assets
         and liabilities                                 1                 22
        Amortization of bond discounts                   0                  1
        Amortization of deferred income                 (2)               (52)
        Change in assets, liabilities and
         others                                         94              3,208
    Net cash provided by operating
     activities                                        110              3,746

    Cash flows from investing activities:
        Acquisition of long-term
         investments accounted for under
         the equity method                              (2)               (63)
        Proceeds from liquidation of
         long-term investments                           0                 15
        Acquisition of property, plant
         and equipment                                 (46)            (1,568)
        Proceeds from disposal of
         property, plant and equipment                   0                  3
        Increase in deferred charges                    (2)               (84)
        Decrease in other assets - others               (0)                 1
    Net cash used in investing activities              (50)            (1,696)

    Cash flows from financing activities:
        Proceeds from long-term Loans                    6                200
        Repayments of long-term Loans                   (6)              (200)
        Purchase of treasury stock                     (70)            (2,393)
        Decrease in deposits-in                          0                  0
    Net cash used in financing activities              (70)            (2,393)

    Effect of exchange rate changes on
     cash and cash equivalents                           4                125
    Net decrease in cash and cash
     equivalents                                        (6)              (218)

    Cash and cash equivalents at
     beginning of period                             1,064             36,124

    Cash and cash equivalents at end of
     period                                          1,058             35,906


    Note: New Taiwan Dollars have been translated into U.S. Dollars at the Mar
          31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
          All figures are in ROC GAAP.



    Contacts:

     Bowen Huang / Tien Yu Tseng
     UMC, Investor Relation
     Tel:   +886-2-2700-6999 ext. 6957
     Email: [email protected] / [email protected]

SOURCE United Microelectronics Corporation

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