ChipMOS Reports Second Quarter 2019 Results
HSINCHU, Taiwan, Aug. 6, 2019 /PRNewswire-FirstCall/ --
Q2'19 Highlights (as compared to Q1'19):
-- Revenue Grows 9.9% to US$158.2 Million Compared to US$143.9 Million
-- Gross Profit Improves to US$27.0 Million Compared to US$21.6 Million
-- Gross Margin Increases to 17.1% Compared to 15.0%
-- Net Earnings of NT$1.75 or US$0.06 per Basic Common Share or US$1.13 per
Basic ADS
-- Reduction of US$30.1 Million in Net Debt Balance to US$160.1 Million,
while Retained Balance of Cash and Cash Equivalents at US$171.8 Million
-- Cash Dividend of NT$1.20 Per Common Share or Approximately US$0.77 Per
ADS Approved by Shareholders
ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the second quarter ended June 30, 2019. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$31.01 against US$1.00 as of June 28, 2019.
All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").
Revenue for the second quarter of 2019 was NT$4,905.3 million or US$158.2 million, an increase of 9.9% from NT$4,462.0 million or US$143.9 million in the first quarter of 2019 and an increase of 9.2% from NT$4,491.6 million or US$144.8 million for the same period in 2018.
Net profit attributable to equity holders of the Company for the second quarter of 2019 was NT$1,274.6 million or US$41.1 million, and NT$1.75 or US$0.06 per basic common share, as compared to net profit attributable to equity holders of the Company for the first quarter of 2019 of NT$193.7 million or US$6.3 million, and NT$0.27 or US$0.01 per basic common share, and compared to net profit attributable to equity holders of the Company in the second quarter of 2018 of NT$124.1 million or US$4.0 million, and NT$0.15 or US$0.005 per basic common share. Net earnings for the second quarter of 2019 were US$1.13 per basic ADS, compared to US$0.17 per basic ADS for the first quarter of 2019 and US$0.09 per basic ADS in the second quarter of 2018.
S.J. Cheng, Chairman and President of ChipMOS, said, "We achieved 9.9% revenue growth in Q2 compared to Q1, improved our gross margin to 17.1% and delivered a significant improvement in net profit to NT$1.75 or US$0.06 per basic common share or US$1.13 per basic ADS, which includes the benefit of the JMC share disposal we previously noted. We continue to execute and are benefitting from the strategic diversification in our customer base and end markets, which is driving healthy utilization levels. Growth in our flash business from new module house customers is helped drive 14.4% revenue growth from Flash products in Q2 compared to Q1, and improved our assembly utilization rate to 75%. Customer demand remains strong in our TDDI and 12" fine pitch COF businesses. As a result, revenue from TDDI products grew 24% in Q2 compared to Q1, and represented about 32% of DDIC revenue in Q2. Growth is expected to continue led by higher demand for new bezel-less smartphone panels, with increasing TDDI product penetration of the HD panel segment from FHD panels. We remain focused on expanding utilization across all segments, while further improving gross margin, overall profitability, and our cash generation. These sustainable improvements will help build further value for the Company and shareholders."
Silvia Su, Vice President of Finance and Accounting, commented, "We continue to manage our business to profitability, with the right resource level and operating structure to fully support our customers and new growth opportunities. We completed the sale of 9.1 million common shares of JMC in the beginning of April and recognized a disposal gain of approximately US$31.7 million, after the deduction of related tax and expense. That was used to further strengthen our Company's financial structure, while increasing our balance of working capital and decreasing the debt ratio. We ended the second quarter with a balance of cash and cash equivalents of US$171.8 million, after reducing our net debt by about US$30.1 million to US$160.1 million with a net debt to equity ratio of 26.6%. In addition, we invested US$23.1 million in CapEx in the second quarter, the majority of which was invested in expanding our LCD driver capacity to meet customer demand levels, mainly for DDIC test and 12" fine pitch COF. Our latest cash dividend, NT$1.20 per common share or US$0.77 per ADS, was approved by shareholders at our AGM this past June, with distributions expected to be on August 30(th )to common stock holders and followed shortly after by the distribution to ADS holders."
Selected Operation Data
Q2'19
Q1'19
Revenue by segment
Testing 20.1% 22.2%
Assembly 24.7% 23.1%
LCD Driver 36.0% 35.1%
Bumping 19.2% 19.6%
CapEx
US$23.1 million
US$20.3 million
Testing 25.2% 25.0%
Assembly 8.5% 7.3%
LCD Driver 56.4% 59.3%
Bumping 9.9% 8.4%
Depreciation and amortization expenses
US$29.7 million
US$29.0 million
Utilization by segment
Testing 69% 64%
Assembly 75% 58%
LCD Driver 81% 76%
Bumping 70% 79%
Overall 75% 70%
Condensed consolidated statements of cash flows
Period ended
Period ended
Jun. 30, 2019
Jun. 30, 2018
US$ million
US$ million
Net cash generated from (used in) operating activities 78.7 47.8
Net cash generated from (used in) investing activities (43.6) (101.9)
Net cash generated from (used in) financing activities (13.1) (73.5)
Net increase (decrease) in cash and cash equivalents 22.0 (127.6)
Effect of exchange rate changes on cash 0.1 0.2
Cash and cash equivalents at beginning of period 149.7 259.1
Cash and cash equivalents at end of period 171.8 131.7
Investor Conference Call / Webcast Details
ChipMOS will host two conference calls on Tuesday, August 6, 2019 to discuss the Company's financial results for the second quarter of 2019.
1. Date: Tuesday, August 6, 2019
Time: 4:00PM Taiwan (4:00AM New
York)
Dial-In:
+886-2-21928016
Password:
661807#
Replay Starting 2 Hours After Live Call Ends:
www.chipmos.com
Language: Mandarin
2. Date: Tuesday, August 6, 2019
Time: 8:00PM Taiwan (8:00AM
New York)
Dial-In: +1-323-701-0225
Password: 8155889
Replay Starting 2 Hours After Live Call Ends:
+1-412-317-6671, with ID 8155889
Webcast of Live Call and Replay: www.chipmos.com
Language: English
About ChipMOS TECHNOLOGIES INC.:
ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS) (https://www.chipmos.com) is an industry leading provider of outsourced semiconductor assembly and test services. With advanced facilities in Hsinchu Science Park, Hsinchu Industrial Park and Southern Taiwan Science Park in Taiwan, ChipMOS provide assembly and test services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.
Forward-Looking Statements
This press release may contain certain forward-looking statements. These forward-looking statements may be identified by words such as 'believes,' 'expects,' 'anticipates,' 'projects,' 'intends,' 'should,' 'seeks,' 'estimates,' 'future' or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. These statements may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors. Further information regarding these risks, uncertainties and other factors are included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.
About Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures
To supplement the consolidated financial results presented in accordance with the Taiwan-IFRS, ChipMOS uses non-GAAP free cash flow, non-GAAP earnings before interest, taxes, depreciation and amortization ("EBITDA") and non-GAAP net debt to equity ratio in this press release. The non-GAAP free cash flow represents operating profit plus depreciation, amortization and interest income and less capital expenditures, interest expense, income tax expense and dividend. The non-GAAP EBITDA represents operating profit plus depreciation and amortization. The non-GAAP net debt to equity ratio represents the ratio of net debt, the sum of debt less cash and cash equivalent, divided by equity attributable to equity holders of the Company. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently.
The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the Taiwan-IFRS.
ChipMOS considers the use of non-GAAP free cash flow, non-GAAP EBITDA and non-GAAP net debt to equity ratio provides useful information to management to manage the Company's business and make financial and operational decisions and also to the investors to understand and evaluate the Company's business and operating performance. For more information on these non-GAAP financial measures, please refer to the table captioned "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in this press release.
Contact
s
: In the U.S.
David
Pasquale
Global IR Partners
+1-914-337-8801
dpasquale@globalirpartners.com
In Taiwan
Jesse Huang
ChipMOS TECHNOLOGIES INC.
+886-6-5052388 ext. 7715
jesse_huang@chipmos.com
---
- FINANCIAL TABLES FOLLOW BELOW -
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended Jun. 30, Mar. 31, 2019, and Jun. 30, 2018
Figures in Millions of U.S. dollars (USD)(1)
Except for Per Share Amounts and Weighted Average Shares Outstanding
Three months ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
---
USD
USD
USD
---
Revenue 158.2 143.9 144.8
Cost of revenue (131.2) (122.3) (121.1)
Gross profit 27.0 21.6 23.7
Research and development expenses (8.5) (7.6) (8.0)
Sales and marketing expenses (0.4) (0.4) (0.4)
General and administrative expenses (4.5) (3.6) (3.9)
Other operating income (expenses), net 1.0 0.3 2.0
Operating profit 14.6 10.3 13.4
Non-operating income (expenses), net 29.6 (2.1) 2.0
Profit (loss) before tax 44.2 8.2 15.4
Income tax benefit (expense) (3.1) (1.9) (11.4)
Profit (loss) for the period 41.1 6.3 4.0
Other comprehensive income (loss)
Exchange differences on translation of (1.1) 2.2 (0.8)
foreign operations
Unrealized gain (loss) on valuation of 0.6 (1.0) 0.4
equity instruments at fair value through
other comprehensive income
Share of other comprehensive income (0.0) 0.0 (0.0)
(loss) of associates and joint ventures
accounted for using equity method
Income tax effect (0.1) 0.2 (0.1)
Total other comprehensive income (loss) (0.6) 1.4 (0.5)
Total comprehensive income (loss) 40.5 7.7 3.5
Profit (loss) attributable to the Company - 41.1 6.3 4.0
basic
Earnings (loss) per share attributable to the 0.06 0.01 0.005
Company - basic
Earnings (loss) per ADS equivalent - basic 1.13 0.17 0.09
Weighted average shares outstanding (in 727,032 726,925 849,672
thousands) - basic
Profit (loss) attributable to the Company - 41.1 6.3 4.0
diluted
Earnings (loss) per share attributable to the 0.06 0.01 0.005
Company - diluted
Earnings (loss) per ADS equivalent - diluted 1.12 0.17 0.09
Weighted average shares outstanding (in 733,661 728,302 857,028
thousands) - diluted
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$31.01 against US$1.00 as of Jun. 28, 2019.
The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be
in the future be, converted into US dollars at this or any other exchange rate.
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended Jun. 30, Mar. 31, 2019, and Jun. 30, 2018
Figures in Millions of NT dollars (NTD)
Except for Per Share Amounts and Weighted Average Shares Outstanding
Three months ended
Jun. 30, 2019 Mar. 31, 2019 Jun. 30, 2018
---
NTD
NTD
NTD
---
Revenue 4,905.3 4,462.0 4,491.6
Cost of revenue (4,067.0) (3,793.7) (3,756.4)
Gross profit 838.3 668.3 735.2
Research and development expenses (263.7) (236.7) (249.5)
Sales and marketing expenses (14.3) (11.6) (13.9)
General and administrative expenses (138.6) (112.2) (120.9)
Other operating income (expenses), net 30.8 10.4 63.2
Operating profit 452.5 318.2 414.1
Non-operating income (expenses), net 917.0 (64.3) 62.9
Profit (loss) before tax 1,369.5 253.9 477.0
Income tax benefit (expense) (94.9) (60.2) (352.9)
Profit (loss) for the period 1,274.6 193.7 124.1
Other comprehensive income (loss)
Exchange differences on translation of (33.8) 68.1 (25.3)
foreign operations
Unrealized gain (loss) on valuation of 17.4 (31.5) 14.1
equity instruments at fair value through
other comprehensive income
Share of other comprehensive income (0.2) 1.9 (0.8)
(loss) of associates and joint ventures
accounted for using equity method
Income tax effect (3.5) 6.3 (2.8)
Total other comprehensive income (loss) (20.1) 44.8 (14.8)
Total comprehensive income (loss) 1,254.5 238.5 109.3
Profit (loss) attributable to the Company - 1,274.6 193.7 124.1
basic
Earnings (loss) per share attributable to the 1.75 0.27 0.15
Company - basic
Earnings (loss) per ADS equivalent - basic 35.06 5.33 2.92
Weighted average shares outstanding (in 727,032 726,925 849,672
thousands) - basic
Profit (loss) attributable to the Company 1,274.6 193.7 124.1
diluted
Earnings (loss) per share attributable to the 1.74 0.27 0.14
Company - diluted
Earnings (loss) per ADS equivalent - diluted 34.75 5.32 2.90
Weighted average shares outstanding (in 733,661 728,302 857,028
thousands) - diluted
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of Jun. 30, Mar. 31, 2019, and Jun. 30, 2018
Figures in Millions of U.S. dollars (USD) (1)
Jun. 30, 2019 Mar. 31, 2019 Jun. 30, 2018
ASSETS
USD
USD
USD
--- ---
Current assets
Cash and cash equivalents 171.8 163.5 131.7
Current financial assets at amortized cost 5.6 5.5 0.5
Accounts and notes receivable, net 146.8 132.2 140.0
Inventories 55.3 53.8 58.1
Other current assets 20.1 19.7 16.7
Total current assets 399.6 374.7 347.0
Non-current assets
Financial assets at fair value through profit or loss 0.4 0.4 0.4
Financial assets at fair value through other 5.2 4.6 3.7
comprehensive income
Non-current financial assets at amortized cost 3.2 3.2 2.0
Investments accounted for using equity method 114.7 125.3 132.7
Property, plant & equipment 526.6 532.9 510.9
Right-of-use assets 28.7 28.6 -
Other non-current assets 12.2 11.4 9.3
Total non-current assets 691.0 706.4 659.0
Total assets 1,090.6 1,081.1 1,006.0
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Short-term bank loans - 9.7
Accounts payable and payables to contractors and 38.4 40.5 43.2
equipment suppliers
Current lease liabilities 1.3 1.3 -
Long-term bank loans, current portion 24.1 24.1 24.1
Long-term lease obligations payable, current portion - 0.4
Other current liabilities 91.4 70.3 72.4
Total current liabilities 155.2 145.9 140.1
Non-current liabilities
Long-term bank loans 279.5 291.7 245.6
Non-current lease liabilities 27.0 26.9 -
Long-term lease obligations payable - 0.4
Other non-current liabilities 26.4 26.1 24.4
Total non-current liabilities 332.9 344.7 270.4
Total liabilities 488.1 490.6 410.5
EQUITY
---
Capital stock - common stock 238.7 242.8 285.7
Capital surplus 198.8 202.5 202.6
Retained earnings 175.9 170.9 135.3
Other equity interest 4.7 5.3 4.4
Treasury stock (15.6) (31.0) (32.5)
Equity attributable to equity holders of the Company 602.5 590.5 595.5
Total equity 602.5 590.5 595.5
Total liabilities and equity 1,090.6 1,081.1 1,006.0
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$31.01 against US$1.00 as of Jun. 28, 2019.
The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be
i
n the future be, converted into US dollars at this or any other exchange rate.
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of Jun. 30, Mar. 31, 2019, and Jun. 30, 2018
Figures in Millions of NT dollars (NTD)
Jun. 30, 2019 Mar. 31, 2019 Jun. 30, 2018
ASSETS
NTD
NTD
NTD
--- ---
Current assets
Cash and cash equivalents 5,326.4 5,069.0 4,082.6
Current financial assets at amortized cost 173.2 171.2 15.9
Accounts and notes receivable, net 4,552.3 4,099.9 4,341.9
Inventories 1,716.6 1,667.0 1,800.3
Other current assets 623.8 612.3 518.4
Total current assets 12,392.3 11,619.4 10,759.1
Non-current assets
Financial assets at fair value through profit or loss 11.6 11.7 11.8
Financial assets at fair value through other 160.2 142.8 114.7
comprehensive income
Non-current financial assets at amortized cost 99.9 99.2 62.4
Investments accounted for using equity method 3,557.1 3,884.5 4,114.0
Property, plant & equipment 16,329.2 16,524.7 15,844.2
Right-of-use assets 890.5 888.9 -
Other non-current assets 377.3 352.5 289.2
Total non-current assets 21,425.8 21,904.3 20,436.3
Total assets 33,818.1 33,523.7 31,195.4
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Short-term bank loans - 300.0
Accounts payable and payables to contractors and 1,189.3 1,256.2 1,341.8
equipment suppliers
Current lease liabilities 39.7 40.2 -
Long-term bank loans, current portion 748.2 748.1 747.3
Long-term lease obligations payable, current portion - 11.6
Other current liabilities 2,833.4 2,180.8 2,244.9
Total current liabilities 4,810.6 4,525.3 4,345.6
Non-current liabilities
Long-term bank loans 8,668.0 9,044.3 7,616.7
Non-current lease liabilities 836.9 835.0 -
Long-term lease obligations payable - 12.0
Other non-current liabilities 818.8 808.8 755.1
Total non-current liabilities 10,323.7 10,688.1 8,383.8
Total liabilities 15,134.3 15,213.4 12,729.4
EQUITY
---
Capital stock - common stock 7,400.9 7,528.3 8,859.8
Capital surplus 6,165.9 6,280.7 6,281.2
Retained earnings 5,453.4 5,298.3 4,196.4
Other equity interest 146.2 165.5 136.2
Treasury stock (482.6) (962.5) (1,007.6)
Equity attributable to equity holders of the Company 18,683.8 18,310.3 18,466.0
Total equity 18,683.8 18,310.3 18,466.0
Total liabilities and equity 33,818.1 33,523.7 31,195.4
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
(Figures in Millions of U.S. dollars (USD))
The table below sets forth a reconciliation of our operating profit to non-GAAP free cash flow for the periods indicated:
Three months ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
---
USD
USD
USD
---
Operating profit 14.6 10.3 13.4
Add: Depreciation 29.7 29.0 27.2
Interest income 0.6 0.5 0.4
Less: Capital expenditures (23.1) (20.3) (31.5)
Interest expense (1.4) (1.4) (1.2)
Income tax expense (3.1) (1.9) (11.4)
Non-GAAP free cash flow 17.3 16.2 (3.1)
The table below sets forth a reconciliation of our operating profit to non-GAAP EBITDA for the periods indicated:
Three months ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
---
USD
USD
USD
---
Operating profit 14.6 10.3 13.4
Add: Depreciation 29.7 29.0 27.2
Non-GAAP EBITDA 44.3 39.3 40.6
The table below sets forth a calculation of our non-GAAP net debt to equity ratio for the periods indicated:
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
---
USD
USD
USD
---
Short-term bank loans - 9.7
Long-term bank loans 303.6 315.8 269.7
(including current portion)
Long-term lease obligations payable - 0.8
(including current portion)
Lease liabilities 28.3 28.2 -
(including current portion)
Less: Cash and cash equivalents (171.8) (163.5) (131.7)
Net debt 160.1 190.2 138.8
Equity attributable to equity holders of 602.5 590.5 595.5
the Company
Net debt to equity ratio 26.6% 32.2% 23.3%
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SOURCE ChipMOS TECHNOLOGIES INC.
