ChipMOS REPORTS FIRST QUARTER 2020 RESULTS
-- Revenue Increases 25.2% in 1Q20 Compared to 1Q19, Up 0.3% Compared to
4Q19
-- Gross Profit Increases 90.1% in 1Q20 Compared to 1Q19, Up 0.3% Compared
to 4Q19
-- Net Earnings Increase 263% in 1Q20 Compared to 1Q19, Up 34.2% Compared
to 4Q19
-- Overall Utilization Rate Improves to 79% in 1Q20 Compared to 70% in 1Q19
and 76% in 4Q19
HSINCHU, Taiwan, May 6, 2020 /PRNewswire/ -- 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 first quarter ended March 31, 2020. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$30.25 against US$1.00 as of March 31, 2020.
All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").
Revenue for the first quarter of 2020 was NT$5,586.8 million or US$184.7 million, an increase of 0.3% from NT$5,571.5 million or US$184.2 million in the fourth quarter of 2019 and an increase of 25.2% from NT$4,462.0 million or US$147.5 million for the same period in 2019. The first quarter of 2020 revenue level represents a five year high for the Company.
Net profit attributable to equity holders of the Company for the first quarter of 2020 was NT$712.7 million or US$23.6 million, and NT$0.98 or US$0.03 per basic common share, as compared to NT$530.0 million or US$17.5 million, and NT$0.73 or US$0.02 per basic common share in the fourth quarter of 2019, and NT$193.7 million or US$6.4 million, and NT$0.27 or US$0.01 per basic common share in the first quarter of 2019. Net earnings for the first quarter of 2020 were US$0.65 per basic ADS, compared to US$0.48 per basic ADS for the fourth quarter of 2019 and US$0.18 per basic ADS in the first quarter of 2019.
S.J. Cheng, Chairman and President of ChipMOS, said, "First quarter 2020 revenue increased 25.2% over 1Q19 and was up 0.3% over 4Q19 compared to the seasonal industry decline from Q4 to Q1 due to fewer working days. We are benefitting from DRAM, NOR flash and 8"COF demand growth from 5G buildouts and higher work and school from home demand. Our continued focus on driving profitable segments of our business helped us significantly increase gross margin to 22.7% compared to 15.0% in 1Q19, while flattish with 4Q19 despite fewer working days due to Chinese New Year closures and the COVID-19 virus. We implemented comprehensive measures to ensure the health and safety of our employees as we followed guidelines and regulations provided by The Taiwan Centers for Disease Controls (CDC) and other regulatory agencies. As a result of our efforts, we were able to restart all manufacturing facilities on schedule after the planned New Year's Holiday closure with no additional delays or disruptions. We have worked closely with our customers and supply chain, allowing us to maintain full inventory levels to ensure uninterrupted service to customers. This helped us increase our overall utilization level to 79% in 1Q20 from 70% in 1Q19 and 76% in 4Q19, with major utilization gains in both our Assembly and Bumping production lines."
Silvia Su, Vice President of Finance and Accounting, commented, "We improved all major financial metrics in the first quarter as we continue to focus on profitability and cash generation. CapEx was US$37.6 million in the first quarter down from US$56.3 million in 4Q19. The majority of CapEx was invested in expanding our DDIC capacity to meet existing customer demand levels for higher OLED wafer test capacity. We are lowering our CapEx investments where possible as we focus on improvements through automation, while maintaining a strong financial position and liquidity in order to maintain our leading market position in the uncertain market. Actions we previously took to reduce our operating expenses, while increasing our cash balance and liquidity, will allow us to fully support customers and maintain our long-term growth strategy."
Selected Operations
Data
Q1'20
Q4'19
Revenue by segment
Testing 21.8% 20.8%
Assembly 25.9% 27.2%
LCD Driver 31.6% 31.8%
Bumpimg 20.7% 20.2%
CapEx
US$37.6 million
US$56.3 million
Testing 34.7% 16.7%
Assembly 9.0% 15.5%
LCD Driver 46.2% 59.2%
Bumping 10.1% 8.6%
Depreciation and
amortization expenses
US$33.2 million
US$31.7 million
Utilization by segment
Testing 77% 77%
Assembly 81% 81%
LCD Driver 75% 70%
Bumping 83% 75%
Overall 79% 76%
Condensed consolidated
statements of cash
flows
Period ended
Period ended
Mar. 31, 2020
Mar. 31, 2019
US$ million
US$ million
Net cash generated
from (used in)
operating activities 24.2 56.3
Net cash generated
from (used in)
investing activities (47.4) (51.7)
Net cash generated
from (used in)
financing activities 115.9 9.5
Net increase
(decrease) in cash
and cash equivalents 92.7 14.1
Effect of exchange
rate changes on cash 0.1 0.0
Cash and cash
equivalents at
beginning of period 155.5 153.5
Cash and cash
equivalents at end of
period 248.3 167.6
Investor Conference Call / Webcast Details
ChipMOS will host two conference calls on Wednesday, May 6, 2020 to discuss the Company's financial results for the first quarter of 2020.
1. Date: Wednesday, May 6, 2020Time: 4:00PM Taiwan (4:00AM New York)Dial-In:
+886-2-21928016Password: 422672 # Replay Starting 2 Hours After Live
Call Ends Webcast of Live Call and Replay:
http://wms.gridow.com/ir/chipmos/chipmos_2020Q1_ch.html Language:
Mandarin
2. Date: Wednesday, May 6, 2020Time: 8:00PM Taiwan (8:00AM New York)Dial-In:
+1-323-794-2093Password: 2737399Replay Starting 2 Hours After Live Call
Ends: +1-412-317-6671, with ID 2737399Webcast of Live Call and Replay:
http://wms.gridow.com/ir/chipmos/chipmos_2020Q1_en.html 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.
- FINANCIAL TABLES FOLLOW BELOW -
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended Mar. 31, 2020, Dec.31, and Mar. 31, 2019
Figures in Millions of U.S. dollars (USD) (1)
Except for Per Share Amounts and
Weighted Average
Shares Outstanding
Three months ended
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
---
USD
USD
USD
---
Revenue 184.7 184.2 147.5
Cost of revenue (142.7) (142.3) (125.4)
Gross profit 42.0 41.9 22.1
Research and development expenses (8.5) (8.4) (7.8)
Sales and marketing expenses (0.5) (0.5) (0.4)
General and administrative expenses (4.1) (4.1) (3.7)
Other income (expenses), net 0.8 0.8 0.3
Operating profit 29.7 29.7 10.5
Non-operating income (expenses), net (0.1) (7.4) (2.1)
Profit before tax 29.6 22.3 8.4
Income tax expense (6.0) (4.8) (2.0)
Profit for the period 23.6 17.5 6.4
Other comprehensive income (loss)
Exchange differences on translation of foreign (0.9) (1.2) 2.2
operations
Profit (loss) on remeasurements of defined - 0.7
benefit plans
Unrealized gain (loss) on valuation of equity (0.9) (0.6) (1.0)
instruments at fair value through other
comprehensive income
Share of other comprehensive income (loss) of (0.2) 0.1 0.1
associates and joint ventures accounted for
using equity method
Income tax effect 0.2 (0.0) 0.2
Total other comprehensive income (loss) (1.8) (1.0) 1.5
Total comprehensive income 21.8 16.5 7.9
Profit attributable to the Company - basic 23.6 17.5 6.4
Earnings per share attributable to the Company 0.03 0.02 0.01
- basic
Earnings per ADS equivalent - basic 0.65 0.48 0.18
Weighted average shares outstanding (in 727,240 727,240 726,925
thousands) - basic
Profit attributable to the Company - diluted 23.6 17.5 6.4
Earnings per share attributable to the Company 0.03 0.02 0.01
- diluted
Earnings per ADS equivalent - diluted 0.64 0.48 0.18
Weighted average shares outstanding (in 731,001 729,443 728,302
thousands) - diluted
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.25 against US$1.00 as of Mar. 31, 2020.
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 Mar. 31, 2020, Dec.31, and Mar. 31, 2019
Figures in Millions of NT dollars (NTD)
Except for Per Share Amounts and
Weighted Average
Shares Outstanding
Three months ended
Mar. 31, 2020 Dec. 31, 2019 Mar. 31, 2019
---
NTD
NTD
NTD
---
Revenue 5,586.8 5,571.5 4,462.0
Cost of revenue (4,316.1) (4,304.6) (3,793.7)
Gross profit 1,270.7 1,266.9 668.3
Research and development expenses (257.7) (254.0) (236.7)
Sales and marketing expenses (13.2) (15.3) (11.6)
General and administrative
expenses (125.0) (122.7) (112.2)
Other income (expenses), net 25.3 25.7 10.4
Operating profit 900.1 900.6 318.2
Non-operating income (expenses),
net (4.3) (224.7) (64.3)
Profit before tax 895.8 675.9 253.9
Income tax expense (183.1) (145.9) (60.2)
Profit for the period 712.7 530.0 193.7
Other comprehensive income (loss)
Exchange differences on
translation of foreign (27.4) (34.9) 68.1
operations
Profit (loss) on remeasurements
of defined - 20.9
benefit plans
Unrealized gain (loss) on
valuation of equity (25.8) (17.0) (31.5)
instruments at fair value through other
comprehensive income
Share of other comprehensive
income (loss) of (5.4) 2.1 1.9
associates and joint ventures accounted for
using equity method
Income tax effect 5.1 (0.8) 6.3
Total other comprehensive income
(loss) (53.5) (29.7) 44.8
Total comprehensive income 659.2 500.3 238.5
Profit attributable to the
Company - basic 712.7 530.0 193.7
Earnings per share attributable
to the Company - 0.98 0.73 0.27
basic
Earnings per ADS equivalent -
basic 19.60 14.58 5.33
Weighted average shares
outstanding (in 727,240 727,240 726,925
thousands) - basic
Profit attributable to the
Company - diluted 712.7 530.0 193.7
Earnings per share attributable
to the 0.97 0.73 0.27
Company - diluted
Earnings per ADS equivalent -
diluted 19.50 14.53 5.32
Weighted average shares
outstanding (in 731,001 729,443 728,302
thousands) - diluted
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of Mar. 31, 2020, Dec. 31, and Mar. 31, 2019
Figures in Millions of U.S. dollars (USD) (1)
Mar. 31, 2020
Dec. 31, 2019 Mar. 31, 2019
ASSETS
USD
USD
USD
--- ---
Current assets
Cash and cash equivalents 248.3 155.5 167.6
Current financial assets at fair value through profit 5.0 -
or loss
Current financial assets at amortized cost 5.6 5.6 5.7
Accounts and notes receivable, net 156.1 147.3 135.5
Inventories 76.7 58.4 55.1
Other current assets 22.1 22.0 20.2
Total current assets 513.8 388.8 384.1
Non-current assets
Non-current financial assets at fair value through 0.4 0.4 0.4
profit or loss
Non-current financial assets at fair value through 3.2 4.0 4.7
other comprehensive income
Non-current financial assets at amortized cost 2.3 2.3 3.3
Investments accounted for using equity method 110.3 112.2 128.4
Property, plant & equipment 599.1 594.4 546.3
Right-of-use assets 26.5 22.7 29.4
Other non-current assets 8.3 9.3 11.6
Total non-current assets 750.1 745.3 724.1
Total assets 1,263.9 1,134.1 1,108.2
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Short-term bank loans - 9.9
Accounts payable and payables to contractors and 45.8 59.3 41.5
equipment suppliers
Current lease liabilities 1.9 0.8 1.3
Long-term bank loans, current portion 24.7 24.8 24.8
Other current liabilities 76.7 77.2 72.1
Total current liabilities 149.1 162.1 149.6
Non-current liabilities
Long-term bank loans 390.6 274.1 299.0
Non-current lease liabilities 24.9 22.1 27.6
Other non-current liabilities 27.9 26.2 26.7
Total non-current liabilities 443.4 322.4 353.3
Total liabilities 592.5 484.5 502.9
EQUITY
---
Capital stock - common stock 240.4 240.4 248.9
Capital surplus 200.3 200.3 207.6
Retained earnings 233.1 209.6 175.1
Other equity interest (2.4) (0.7) 5.5
Treasury stock - (31.8)
---
Equity attributable to equity holders of the Company 671.4 649.6 605.3
Total equity 671.4 649.6 605.3
Total liabilities and equity 1,263.9 1,134.1 1,108.2
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.25 against US$1.00 as of Mar. 31, 2020.
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 Mar. 31, 2020, Dec. 31, and Mar. 31, 2019
Figures in Millions of NT dollars (NTD)
Mar. 31, 2020 Dec. 31, 2019 Mar. 31, 2019
ASSETS
NTD
NTD
NTD
--- ---
Current assets
Cash and cash equivalents 7,512.2 4,704.1 5,069.0
Current financial assets at fair value through profit 150.0 -
or loss
Current financial assets at amortized cost 170.5 169.0 171.2
Accounts and notes receivable, net 4,721.4 4,454.7 4,099.9
Inventories 2,318.9 1,767.7 1,667.0
Other current assets 670.1 666.9 612.3
Total current assets 15,543.1 11,762.4 11,619.4
Non-current assets
Non-current financial assets at fair value through 10.9 11.0 11.7
profit or loss
Non-current financial assets at fair value through 96.0 121.8 142.8
other comprehensive income
Non-current financial assets at amortized cost 68.5 68.5 99.2
Investments accounted for using equity method 3,338.3 3,392.9 3,884.5
Property, plant & equipment 18,122.9 17,979.4 16,524.7
Right-of-use assets 802.4 687.1 888.9
Other non-current assets 252.0 282.8 352.5
Total non-current assets 22,691.0 22,543.5 21,904.3
Total assets 38,234.1 34,305.9 33,523.7
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Short-term bank loans - 300.0
Accounts payable and payables to contractors and 1,386.4 1,792.3 1,256.2
equipment suppliers
Current lease liabilities 56.6 24.6 40.2
Long-term bank loans, current portion 748.1 748.4 748.1
Other current liabilities 2,319.7 2,336.4 2,180.8
Total current liabilities 4,510.8 4,901.7 4,525.3
Non-current liabilities
Long-term bank loans 11,815.3 8,293.2 9,044.3
Non-current lease liabilities 753.1 668.4 835.0
Other non-current liabilities 844.4 791.4 808.8
Total non-current liabilities 13,412.8 9,753.0 10,688.1
Total liabilities 17,923.6 14,654.7 15,213.4
EQUITY
---
Capital stock - common stock 7,272.4 7,272.4 7,528.3
Capital surplus 6,059.6 6,059.6 6,280.7
Retained earnings 7,051.7 6,339.0 5,298.3
Other equity interest (73.2) (19.8) 165.5
Treasury stock - (962.5)
---
Equity attributable to equity holders of the Company 20,310.5 19,651.2 18,310.3
Total equity 20,310.5 19,651.2 18,310.3
Total liabilities and equity 38,234.1 34,305.9 33,523.7
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
Mar. 31, 2020 Dec. 31, 2019
Mar. 31, 2019
---
USD USD
USD
---
Operating profit 29.7 29.7 10.5
Add: Depreciation 33.2 31.7 29.7
Interest income 0.4 0.5 0.5
Less: Capital expenditures (37.6) (56.3) (20.8)
Interest expense (1.4) (1.4) (1.4)
Income tax expense (6.0) (4.8) (2.0)
Non-GAAP free cash flow 18.3 (0.6) 16.5
The table below sets forth a reconciliation of our operating profit to non-GAAP EBITDA for the periods indicated:
Three months ended
Mar. 31, 2020 Dec. 31, 2019
Mar. 31, 2019
---
USD USD
USD
---
Operating profit 29.7 29.7 10.5
Add: Depreciation 33.2 31.7 29.7
Non-GAAP EBITDA 62.9 61.4 40.2
The table below sets forth a calculation of our non-GAAP net debt to equity ratio for the periods indicated:
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
---
USD USD
USD
---
Short-term bank loans - 9.9
Long-term bank loans 415.3 298.9 323.8
(including current portion)
Lease liabilities 26.8 22.9 28.9
(including current portion)
Less: Cash and cash equivalents (248.3) (155.5) (167.6)
Current financial assets at fair value through profit or loss (5.0) -
Net debt 188.8 166.3 195.0
Equity attributable to equity holders of the Company 671.4 649.6 605.3
Net debt to equity ratio 28.1% 25.6% 32.2%
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
IR@chipmos.com
dpasquale@globalirpartners.com
---
View original content:http://www.prnewswire.com/news-releases/chipmos-reports-first-quarter-2020-results-301053632.html
SOURCE ChipMOS TECHNOLOGIES INC.
