ChipMOS REPORTS THIRD QUARTER 2019 RESULTS
Q3'19 Highlights (as compared to Q2'19):
-- Revenue Grows 10.1% to US$173.9 Million Compared to US$158.0 Million
-- Gross Profit Improves to US$37.1 Million Compared to US$27.0 Million
-- Gross Margin Increases to 21.4% Compared to 17.1%
-- Net Earnings of NT$0.81 or US$0.03 per Basic Common Share or US$0.52 per
Basic ADS
-- Distributed Cash Dividend of NT$1.2 Per Common Share on August 30, 2019
and US$0.764 Per ADS on September 9, 2019
HSINCHU, Nov. 6, 2019 /PRNewswire-FirstCall/ -- 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 third quarter ended September 30, 2019. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$31.05 against US$1.00 as of September 30, 2019.
All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").
Revenue for the third quarter of 2019 was NT$5,399.1 million or US$173.9 million, an increase of 10.1% from NT$4,905.3 million or US$158.0 million in the second quarter of 2019 and an increase of 7.9% from NT$5,005.2 million or US$161.2 million for the same period in 2018.
Net profit attributable to equity holders of the Company for the third quarter of 2019 was NT$585.9 million or US$18.9 million, and NT$0.81 or US$0.03 per basic common share, as compared to net profit attributable to equity holders of the Company for the second quarter of 2019 of NT$1,274.6 million or US$41.0 million, and NT$1.75 or US$0.06 per basic common share, and compared to net profit attributable to equity holders of the Company in the third quarter of 2018 of NT$439.6 million or US$14.2 million, and NT$0.56 or US$0.02 per basic common share. Net earnings for the third quarter of 2019 were US$0.52 per basic ADS, compared to US$1.13 per basic ADS for the second quarter of 2019 and US$0.36 per basic ADS in the third quarter of 2018.
S.J. Cheng, Chairman and President of ChipMOS, said, "Strength in our core business and continued execution is helped us drive double digit revenue growth with a significant gross margin improvement. We achieved 10.1% revenue growth compared to Q2 and improved our gross margin to 21.4% from 17.1% over the same period. Revenue in our Flash business grew 22.5% in Q3 from Q2, led by increased demand from the industrial and automotive end markets and higher demand from new module house customers. We also benefitted from strong demand in our 12" gold bump and TDDI businesses with increasing TDDI product penetration of the HD panel segment for smartphones given higher content per unit in newer phones. We did experience some softness at the end of the quarter in demand related to the TV market, which we expect to more than offset in order to achieve stable revenue and margins over the near-term. Adding to our confidence, high-end wafer test capacity has been tightening, led by increasing OLED panel driver IC demand, and we are benefitting from higher efficiency programs including increased usage of AI and automation at our facilities."
Silvia Su, Vice President of Finance and Accounting, commented, "We are pleased with the positive operating leverage in our business as we focus on expansion of our higher margin business, continued operating expense control and controlled CapEx. We generated US$123.8 million in cash from operating activities in the third quarter compared to US$87.5 million in the year ago period. While our CapEx level has been tracking below 2018 for most of 2019, we made the strategic decision to invest US$59.5 million in CapEx in the third quarter to expand capacity to meet current and expected higher customer demand levels, mainly for DDIC test and 12" fine pitch COF. Our focus on profitability and operating cash flow expansion also allowed us to reward investors with our latest cash dividend, NT$1.2 per common share or US$0.764 per ADS, which was distributed on August 30(th) to common stock holders and on September 9(th) to ADS holders. We remain focused on building further value for the company and its shareholders."
Selected Operation Data
Q3'19
Q2'19
Revenue by segment
Testing 20.8% 20.1%
Assembly 25.8% 24.7%
LCD Driver 33.7% 36.0%
Bumping 19.7% 19.2%
CapEx
US$59.5 million
US$23.1 million
Testing 7.6% 25.2%
Assembly 9.6% 8.5%
LCD Driver 70.0% 56.4%
Bumping 12.8% 9.9%
Depreciation and amortization expenses
US$30.7 million
US$29.7 million
Utilization by segment
Testing 74% 69%
Assembly 76% 75%
LCD Driver 73% 81%
Bumping 70% 70%
Overall 74% 75%
Condensed consolidated statements of cash flows
Period ended
Period ended
Sep. 30, 2019
Sep. 30, 2018
US$ million
US$ million
Net cash generated from (used in) operating activities 123.8 87.5
Net cash generated from (used in) investing activities (82.6) (135.6)
Net cash generated from (used in) financing activities (41.5) (15.5)
Net increase (decrease) in cash and cash equivalents (0.3) (63.6)
Effect of exchange rate changes on cash 0.1 0.2
Cash and cash equivalents at beginning of period 149.5 258.8
Cash and cash equivalents at end of period 149.3 195.4
Investor Conference Call / Webcast Details
ChipMOS will host two conference calls on Wednesday, November 6, 2019 to discuss the Company's financial results for the third quarter of 2019.
1. Date: Wednesday, November 6, 2019Time: 4:00PM Taiwan (3:00AM New
York)Dial-In: +886-2-21928016Password: 248429 # Replay Starting 2 Hours
After Live Call Ends: www.chipmos.comLanguage: Mandarin
2. Date: Wednesday, November 6, 2019Time: 8:00PM Taiwan (7:00AM New
York)Dial-In: +1-323-701-0225Password: 3755750Replay Starting 2 Hours
After Live Call Ends: +1-412-317-6671, with ID 3755750Webcast of Live
Call and Replay: www.chipmos.comLanguage: 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 Taiwan
In the U.S.
Jesse Huang
David Pasquale
ChipMOS TECHNOLOGIES INC.
Global IR Partners
+886-6-5052388 ext. 7715
+1-914-337-8801
jesse_huang@chipmos.com
dpasquale@globalirpartners.com
---
- FINANCIAL TABLES FOLLOW BELOW -
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended Sep. 30, Jun. 30, 2019, and Sep. 30, 2018
Figures in Millions of U.S. dollars (USD) (1)
Except for Per Share Amounts and
Weighted Average
Shares Outstanding
Three months ended
Sep. 30, 2019 Jun. 30, 2019 Sep. 30, 2018
---
USD
USD
USD
---
Revenue 173.9 158.0 161.2
Cost of revenue (136.8) (131.0) (129.8)
Gross profit 37.1 27.0 31.4
Research and development expenses (8.1) (8.5) (7.5)
Sales and marketing expenses (0.5) (0.4) (0.5)
General and administrative expenses (4.0) (4.5) (3.8)
Other operating income (expenses), net 0.8 1.0 0.9
Operating profit 25.3 14.6 20.5
Non-operating income (expenses), net (1.8) 29.5 (2.3)
Profit (loss) before tax 23.5 44.1 18.2
Income tax benefit (expense) (4.6) (3.1) (4.0)
Profit (loss) for the period 18.9 41.0 14.2
Other comprehensive income (loss)
Exchange differences on translation of (3.4) (1.1) (3.3)
foreign operations
Unrealized gain (loss) on valuation of (0.7) 0.6 0.9
equity instruments at fair value through
other comprehensive income
Share of other comprehensive income 0.1 0.0 (0.1)
(loss) of associates and joint ventures
accounted for using equity method
Income tax effect 0.1 (0.1) (0.2)
Total other comprehensive income (loss) (3.9) (0.6) (2.7)
Total comprehensive income (loss) 15.0 40.4 11.5
Profit (loss) attributable to the Company - 18.9 41.0 14.2
basic
Earnings (loss) per share attributable to the 0.03 0.06 0.02
Company - basic
Earnings (loss) per ADS equivalent - basic 0.52 1.13 0.36
Weighted average shares outstanding (in 727,240 727,032 786,260
thousands) - basic
Profit (loss) attributable to the Company - 18.9 41.0 14.2
diluted
Earnings (loss) per share attributable to the 0.03 0.06 0.02
Company - diluted
Earnings (loss) per ADS equivalent - diluted 0.52 1.12 0.36
Weighted average shares outstanding (in 729,827 733,661 792,443
thousands) - diluted
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$31.05 against US$1.00 as of Sep. 30, 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 Sep. 30, Jun. 30, 2019, and Sep. 30, 2018
Figures in Millions of NT dollars (NTD)
Except for Per Share Amounts and
Weighted Average
Shares Outstanding
Three months ended
Sep. 30, 2019 Jun. 30, 2019 Sep. 30, 2018
---
NTD
NTD NTD
---
Revenue 5,399.1 4,905.3 5,005.2
Cost of revenue (4,246.3) (4,067.0) (4,029.4)
Gross profit 1,152.8 838.3 975.8
Research and development expenses (253.3) (263.7) (233.6)
Sales and marketing expenses (14.8) (14.3) (13.8)
General and administrative expenses (124.9) (138.6) (119.0)
Other operating income (expenses), net 26.0 30.8 26.7
Operating profit 785.8 452.5 636.1
Non-operating income (expenses), net (54.7) 917.0 (71.4)
Profit (loss) before tax 731.1 1,369.5 564.7
Income tax benefit (expense) (145.2) (94.9) (125.1)
Profit (loss) for the period 585.9 1,274.6 439.6
Other comprehensive income (loss)
Exchange differences on translation of (103.6) (33.8) (103.0)
foreign operations
Unrealized gain (loss) on valuation of (21.4) 17.4 28.2
equity instruments at fair value through
other comprehensive income
Share of other comprehensive income 1.9 (0.2) (1.0)
(loss) of associates and joint ventures
accounted for using equity method
Income tax effect 4.3 (3.5) (5.6)
Total other comprehensive income (loss) (118.8) (20.1) (81.4)
Total comprehensive income (loss) 467.1 1,254.5 358.2
Profit (loss) attributable to the Company - 585.9 1,274.6 439.6
basic
Earnings (loss) per share attributable to the 0.81 1.75 0.56
Company - basic
Earnings (loss) per ADS equivalent - basic 16.11 35.06 11.18
Weighted average shares outstanding (in 727,240 727,032 786,260
thousands) - basic
Profit (loss) attributable to the Company - 585.9 1,274.6 439.6
diluted
Earnings (loss) per share attributable to the 0.80 1.74 0.55
Company - diluted
Earnings (loss) per ADS equivalent - diluted 16.06 34.75 11.09
Weighted average shares outstanding (in 729,827 733,661 792,443
thousands) - diluted
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of Sep. 30, Jun. 30, 2019, and Sep. 30, 2018
Figures in Millions of U.S. dollars (USD) (1)
Sep. 30, 2019 Jun. 30, 2019 Sep. 30, 2018
ASSETS
USD
USD
USD
--- ---
Current assets
Cash and cash equivalents 149.3 171.5 195.4
Current financial assets at amortized cost 5.6 5.6 0.5
Accounts and notes receivable, net 167.8 146.6 152.2
Inventories 57.1 55.3 57.0
Other current assets 19.0 20.1 16.7
Total current assets 398.8 399.1 421.8
Non-current assets
Financial assets at fair value through profit or loss 0.3 0.4 0.4
Financial assets at fair value through other 4.5 5.2 4.6
comprehensive income
Non-current financial assets at amortized cost 3.2 3.2 2.2
Investments accounted for using equity method 111.5 114.5 127.3
Property, plant & equipment 554.9 525.9 514.7
Right-of-use assets 23.3 28.7 -
Other non-current assets 9.5 12.1 10.4
Total non-current assets 707.2 690.0 659.6
Total assets 1,106.0 1,089.1 1,081.4
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Accounts payable and payables to contractors and 67.9 38.3 43.8
equipment suppliers
Current lease liabilities 1.1 1.3 -
Long-term bank loans, current portion 24.1 24.1 24.1
Long-term lease obligations payable, current portion - 0.7
Other current liabilities 68.8 91.2 120.0
Total current liabilities 161.9 154.9 188.6
Non-current liabilities
Long-term bank loans 279.2 279.2 303.3
Non-current lease liabilities 21.7 26.9 -
Other non-current liabilities 26.4 26.4 24.3
Total non-current liabilities 327.3 332.5 327.6
Total liabilities 489.2 487.4 516.2
EQUITY
---
Capital stock - common stock 234.2 238.3 242.5
Capital surplus 195.2 198.6 202.3
Retained earnings 186.5 175.6 149.3
Other equity interest 0.9 4.7 2.1
Treasury stock - (15.5) (31.0)
---
Equity attributable to equity holders of the Company 616.8 601.7 565.2
Total equity 616.8 601.7 565.2
Total liabilities and equity 1,106.0 1,089.1 1,081.4
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$31.05 against US$1.00 as of Sep. 30, 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 FINANCIAL POSITION
As of Sep. 30, Jun. 30, 2019, and Sep. 30, 2018
Figures in Millions of NT dollars (NTD)
Sep. 30, 2019 Jun. 30, 2019 Sep. 30, 2018
ASSETS
NTD
NTD
NTD
--- ---
Current assets
Cash and cash equivalents 4,634.7 5,326.4 6,067.2
Current financial assets at amortized cost 173.6 173.2 15.5
Accounts and notes receivable, net 5,211.9 4,552.3 4,725.3
Inventories 1,772.1 1,716.6 1,770.1
Other current assets 590.1 623.8 519.5
Total current assets 12,382.4 12,392.3 13,097.6
Non-current assets
Financial assets at fair value through profit or loss 11.1 11.6 11.4
Financial assets at fair value through other 138.8 160.2 142.9
comprehensive income
Non-current financial assets at amortized cost 100.0 99.9 68.4
Investments accounted for using equity method 3,462.8 3,557.1 3,954.2
Property, plant & equipment 17,230.8 16,329.2 15,979.9
Right-of-use assets 722.4 890.5 -
Other non-current assets 293.7 377.3 323.3
Total non-current assets 21,959.6 21,425.8 20,480.1
Total assets 34,342.0 33,818.1 33,577.7
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Accounts payable and payables to contractors and 2,109.5 1,189.3 1,360.7
equipment suppliers
Current lease liabilities 35.1 39.7 -
Long-term bank loans, current portion 748.3 748.2 747.3
Long-term lease obligations payable, current portion - 20.7
Other current liabilities 2,135.4 2,833.4 3,725.7
Total current liabilities 5,028.3 4,810.6 5,854.4
Non-current liabilities
Long-term bank loans 8,669.6 8,668.0 9,418.4
Non-current lease liabilities 674.3 836.9 -
Other non-current liabilities 818.9 818.8 754.6
Total non-current liabilities 10,162.8 10,323.7 10,173.0
Total liabilities 15,191.1 15,134.3 16,027.4
EQUITY
---
Capital stock -- common stock 7,272.4 7,400.9 7,529.0
Capital surplus 6,059.6 6,165.9 6,280.9
Retained earnings 5,791.5 5,453.4 4,636.1
Other equity interest 27.4 146.2 66.8
Treasury stock - (482.6) (962.5)
---
Equity attributable to equity holders of the Company 19,150.9 18,683.8 17,550.3
Total equity 19,150.9 18,683.8 17,550.3
Total liabilities and equity 34,342.0 33,818.1 33,577.7
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
Sep. 30, 2019 Jun. 30, 2019
Sep. 30, 2018
---
USD
USD
USD
---
Operating profit 25.3 14.6 20.5
Add: Depreciation 30.7 29.7 27.7
Interest income 0.5 0.6 0.4
Less: Capital expenditures (59.5) (23.1) (32.1)
Interest expense (1.4) (1.4) (1.1)
Income tax expense (4.6) (3.1) (4.0)
Dividend (28.1) -
Non-GAAP free cash flow (37.1) 17.3 11.4
The table below sets forth a reconciliation of our operating profit to non-GAAP EBITDA for the periods indicated:
Three months ended
Sep. 30, 2019 Jun. 30, 2019
Sep. 30, 2018
---
USD
USD
USD
---
Operating profit 25.3 14.6 20.5
Add: Depreciation 30.7 29.7 27.7
Non-GAAP EBITDA 56.0 44.3 48.2
The table below sets forth a calculation of our non-GAAP net debt to equity ratio for the periods indicated:
Sep. 30, 2019 Jun. 30, 2019 Sep. 30, 2018
---
USD USD USD
---
Long-term bank loans 303.3 303.3 327.4
(including current portion)
Long-term lease obligations payable - 0.7
(including current portion)
Lease liabilities 22.8 28.2 -
(including current portion)
Less: Cash and cash equivalents (149.3) (171.5) (195.4)
Net debt 176.8 160.0 132.7
Equity attributable to equity holders of 616.8 601.7 565.2
the Company
Net debt to equity ratio 28.7% 26.6% 23.5%
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SOURCE ChipMOS TECHNOLOGIES INC.
