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ChipMOS REPORTS THIRD QUARTER 2012 RESULTS

Tuesday, November 20, 2012 6:25 AM


HSINCHU, Taiwan, Nov. 20, 2012 /PRNewswire-FirstCall/ --

Highlights for the Third Quarter of 2012:

  • 3Q12 Net Revenue Increased 15.2% Compared to 3Q11
  • 3Q12 Gross Margin Improved to 18.6% Compared to 12.8% in 2Q12
  • 3Q12 Foreign Exchange Loss of US$3.1 Million Compared to a Gain of US$2.1 Million in 2Q12 and a Gain of US$6.8 million in 3Q11
  • 3Q12 Net Income of US$0.46 per Basic Common Share Compared to US$0.18 in 3Q11
  • Company Generated US$33.1 Million of Free Cash Flow in 3Q12
  • Completed US$10.0 Million Repurchase Program
  • Secondary Offering Closed on November 1, 2012

ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (Nasdaq: IMOS) today reported unaudited consolidated financial results for the third quarter ended September 30, 2012.  All U.S. dollar figures in this release are based on the exchange rate of NT$29.29 against US$1.00 as of September 28, 2012.

Net revenue on a US GAAP basis for the third quarter of 2012 was NT$5,139.9 million or US$175.5 million, an increase of 6.4% from NT$4,829.3 million or US$164.9 million in the second quarter of 2012 and an increase of 15.2% from NT$4,461.5 million or US$152.3 million for the third quarter of 2011.

Operating expense for the third quarter of 2012 was NT$335.9 million or US$11.5 million compared to NT$290.3 million or US$9.9 million in the second quarter of 2012 and NT$268.6 million or US$9.1 million in the third quarter of 2011.  Non-operating expense for the third quarter of 2012 was NT$131.4 million or US$4.5 million, including a foreign exchange loss of NT$90.7 million or US$3.1 million and net interest expense of NT$43.8 million or US$1.5 million, compared to non-operating income of NT$13.3 million or US$0.5 million, including a foreign exchange gain of NT$61.0 million or US$2.1 million and net interest expense of NT$50.1 million or US$1.7 million in the second quarter of 2012, and compared to non-operating income of NT$88.0 million or US$3.0 million, including a foreign exchange gain of NT$199.6 million or US$6.8 million and net interest expense of NT$55.6 million or US$1.9 million in the third quarter or 2011.

Net income on a US GAAP basis for the third quarter of 2012 was NT$367.0 million or US$12.5 million, and NT$13.43 or US$0.46 per basic common share and NT$13.02 or US$0.44 per diluted common share, which compared to net income of NT$300.4 million or US$10.3 million, and NT$11.00 or US$0.38 per basic common share and NT$10.68 or US$0.36 per diluted common share, for the second quarter of 2012 and to a net income of NT$139.8 million or US$4.8 million and NT$5.19 or US$0.18 per basic and NT$5.11 or US$0.17 per diluted common share, for the third quarter of 2011.  Excluding foreign exchange loss of US$3.1 million, our Q3 net income was US$15.6 million, and US$0.57 per basic common share and US$0.55 per diluted common share.

The unaudited consolidated financial results of ChipMOS for the third quarter ended September 30, 2012 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS U.S.A., Inc., MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD., and ThaiLin Semiconductor Corp.

Two of the Company's shareholders ThaiLin Semiconductor Corp. ("ThaiLin"), a subsidiary of ChipMOS, and Siliconware Precision Industries Co., Ltd. ("Siliconware Precision") closed their previously announced underwritten secondary offering on November 1, 2012.  2,500,000 of its common shares were priced at US$10.10 per share.  1,700,000 common shares were offered by Company shareholder ThaiLin, a subsidiary of ChipMOS, and 800,000 common shares were offered by Company shareholder Siliconware Precision.  In addition, the underwriters also exercised an option to purchase an additional 300,000 shares from ThaiLin on November 1, 2012.  Siliconware Precision continues to own approximately 2.2 million of the Company's common shares and ThaiLin continues to own approximately 4.5 million of the Company's common shares. 

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "We expect to continue to successfully execute on all fronts to drive near term financial performance gains and structural changes that we believe are essential to our long-term success.  Net revenue in 3Q12 increased 15.2% over 3Q11 and was up 6.4% from 2Q12.  From a product mix standpoint we benefitted from higher revenue from our LCD driver, mixed signal and mask ROM memory businesses. Our overall utilization rate increased to 80% from 78% in 2Q12, and 73% in 1Q12.  In addition, depreciation and amortization expenses were US$5.9 million lower in 3Q12 than in 2Q12.  As a result of the above, we were able to drive a further improvement in gross margin to 18.6% in 3Q12 from 12.8% 2Q12 and 6.2% in 1Q12.  Finally, we took another important step forward in the dual listing process and in our efforts to streamline the Company's corporate capital structure with the successful closure of a secondary offering on November 1, 2012.  We anticipate moving into the fourth quarter with considerable momentum in our business, which gives us added confidence in our business strategy and prospects." 

S.K. Chen, Chief Financial Officer of ChipMOS, said, "Our revenue growth, profitability and operating expenses in 3Q12 were all in-line with expectations.  Capital expenditures in the third quarter were US$19.6 million, bringing our year-to-date CapEx total to US$74.6 million, in-line with the plan we outlined at the start of the year.  Depreciation and amortization expenses in 3Q12 came in at US$37.2 million, a US$5.9 million reduction compared to 2Q12. We expect a further reduction in depreciation and amortization expenses in 4Q12 to approximately US$34.0 million.  Our balance sheet continued to improve as we generated free cash flow of US$33.1 million in 3Q12.  We exited the third quarter with a balance of cash and cash equivalents of US$257.3 million. The US$10 million previously authorized share repurchase plan was completed on October 12, 2012, with approximately 654 thousand common shares repurchased, and subsequently cancelled.  While we have not immediately extended the repurchase program, our Board of Directors continues to monitor the situation as part of our efforts to increase shareholder value."

Selected Operation Data







3Q12

2Q12

Revenue by segment



   Testing

29%

30%

   Assembly

33%

34%

   LCD Driver 

23%

22%

Bumping

15%

14%




Utilization by segment



   Testing

75%

73%

   Assembly

81%

82%

   LCD Driver

83%

75%

Bumping

82%

85%

   Overall

80%

78%




CapEx

US$19.6 million

US$35.0 million

   Testing

22%

16%

   Assembly

18%

14%

LCD Driver

14%

48%

   Bumping

46%

 

22%

 




Depreciation and amortization expenses (US GAAP)

US$37.2 million

US$43.1 million

 

Condensed consolidated statements of cash flows


Nine months ended
 Sep. 30, 2012


Nine months ended 
Sep. 30, 2011



US$ million


US$ million

Net cash provided by (used in) operating activities


100.0


126.6

Net cash provided by (used in) investing activities


(72.4)


(95.2)

Net cash provided by (used in) financing activities


(20.9)


( 80.2)

Effect of exchange rate changes on cash


(0.6)


0.9

Net increase (decrease) in cash and cash equivalents


6.1


(47.9)

Cash and cash equivalents at beginning of period


251.2


243.9

Cash and cash equivalents at end of period


257.3


196.0

Fourth Quarter 2012 Outlook

The Company expects 4Q12 revenue to be approximately flat to 5% lower, as compared to 3Q12, reflecting further softness in the broader memory market, which impacts the Company's commodity DRAM assembly business, offset by continued growth in its LCD driver and mixed-signal businesses.  The Company expects 4Q12 gross margin on a consolidated basis to be in the range of approximately 14% to 19%.  We anticipate depreciation and amortization expenses for 4Q12 to be approximately US$34 million.  The Company projects CapEx spending to be approximately US$21 million in 4Q12.  We expect operating expenses to be approximately 6% to 7% of revenues in 4Q12.   Common shares at the end of 4Q12 are expected to be approximately 29 million.

Investor Conference Call / Webcast Details

ChipMOS will review detailed third quarter 2012 results on Tuesday, November 20, 2012 at 8:00AM ET (9:00PM, November 20, Taiwan time). The conference call-in number is 1-201-689-8562, with confirmation ID number 401720.  A live webcast of the conference call will be available at ChipMOS' website at http://www.chipmos.com.  The playback is scheduled to be available in 2 hours after the conclusion of the conference call and will be accessible by dialing 1-858-384-5517, with confirmation ID number 401720.

About ChipMOS TECHNOLOGIES (Bermuda) LTD.:

ChipMOS (http://www.chipmos.com ) is a leading independent provider of semiconductor testing and assembly services to customers in Taiwan, Japan, and the U.S. With advanced facilities in Hsinchu and Southern Taiwan Science Parks in Taiwan and Shanghai, ChipMOS and its subsidiaries provide testing and assembly services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.

Forward-Looking Statements

Certain statements contained in this announcement may be viewed as "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is 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.

- FINANCIAL TABLES FOLLOW BELOW -

ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED INCOME STATEMENT

For the Three Months Ended Sep. 30, Jun. 30, 2012  and Sep. 30, 2011

Figures in Millions of U.S. dollars (USD) (1)

Except for Per Share Amounts and Shares Outstanding




ROC GAAP


US GAAP



3 months ended


3 months ended



 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011


 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011



USD


USD


USD


USD


USD


USD

Net Revenue                                                         


175.5


164.9


152.3


175.5


164.9


152.3

Cost of Revenue


142.4


144.3


138.7


142.8


143.7


139.2

Gross Profit (Loss)


33.1


20.6


13.6


32.7


21.2


13.1














Other Operating Income


-


-


-


0.9


1.4


0.9

Operating Expenses













Research and Development


4.7


3.4


3.2


4.7


3.4


3.2

Sales and Marketing


0.6


0.6


0.5


0.6


0.6


0.5

General and Administrative


5.6


4.9


5.3


5.5


4.4


5.2

Other Operating Expenses


-


-


-


0.7


1.5


0.2

Total Operating Expenses


10.9


8.9


9.0


11.5


9.9


9.1














Income (Loss) from Operations


22.2


11.7


4.6


22.1


12.7


4.9














Non-Operating Income (Expenses), Net


(4.2)


0.9


3.8


(4.5)


0.5


3.0














Income (Loss) before Income Tax


18.0


12.6


8.4


17.6


13.2


7.9














Income Tax Benefit (Expense)


(2.3)


(1.9)


(0.2)


(2.2)


(2.0)


(0.2)














Net Income (Loss)


15.7


10.7


8.2


15.4


11.2


7.7














Add: Net Loss (Income) Attributable to 
  Noncontrolling Interests


(3.0)


(0.8)


(3.1)


(2.9)


(0.9)


(2.9)














Net Income (Loss) Attributable to ChipMOS


12.7


9.9


5.1


12.5


10.3


4.8

Earnings (Loss) Per Share Attributable to
  ChipMOS -Basic


0.46


0.36


0.19


0.46


0.38


0.18

Shares Outstanding (in thousands)-Basic


27,327


27,308


26,918


27,327


27,308


26,918

Net Income (Loss) Attributable to ChipMOS
  -Diluted


12.7


9.9


5.1


12.5


10.3


4.8

Earnings (Loss) Per Share Attributable to
  ChipMOS -Diluted


0.45


0.35


0.19


0.44


0.36


0.17

Shares Outstanding (in thousands)-Diluted


28,175


28,134


27,356


28,175


28,134


27,356














Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.29 against US$1.00 as
      of Sep. 28, 2012. 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 (Bermuda) LTD.

UNAUDITED CONSOLIDATED INCOME STATEMENT

For the Three Months Ended Sep. 30, Jun. 30, 2012 and Sep. 30, 2011

Figures in Millions of NT dollars (NTD)

Except for Per Share Amounts and Shares Outstanding




ROC GAAP


US GAAP



3 months ended


3 months ended



 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011


 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011



NTD


NTD


NTD


NTD


NTD


NTD

Net Revenue                                                              


5,139.9


4,829.3


4,461.5


5,139.9


4,829.3


4,461.5

Cost of Revenue


4,169.3


4,226.8


4,063.0


4,182.3


4,209.0


4,076.3

Gross Profit (Loss)


970.6


602.5


398.5


957.6


620.3


385.2














Other Operating Income


-


-


-


27.3


41.0


28.8

Operating Expenses













Research and Development


137.5


100.0


95.0


137.5


100.0


95.0

Sales and Marketing


18.4


18.4


15.5


18.4


18.4


15.5

General and Administrative


162.5


141.7


153.5


159.5


127.9


151.4

Other Operating Expenses


-


-


-


20.5


44.0


6.7

Total Operating Expenses


318.4


260.1


264.0


335.9


290.3


268.6














Income (Loss) from Operations


652.2


342.4


134.5


649.0


371.0


145.4














Non-Operating Income (Expenses), Net


(124.3)


27.1


110.5


(131.4)


13.3


88.0














Income (Loss) before Income Tax


527.9


369.5


245.0


517.6


384.3


233.4














Income Tax Benefit (Expense)


(67.4)


(55.4)


(5.4)


(65.5)


(57.6)


(7.6)














Net Income (Loss)


460.5


314.1


239.6


452.1


326.7


225.8














Add: Net Loss (Income) Attributable to
  Noncontrolling Interests


(88.5)


(24.8)


(90.3)


(85.1)


(26.3)


(86.0)














Net Income (Loss) Attributable to ChipMOS


372.0


289.3


149.3


367.0


300.4


139.8

Earnings (Loss) Per Share Attributable to
  ChipMOS-Basic


13.61


10.59


5.55


13.43


11.00


5.19

Shares Outstanding (in thousands)-Basic


27,327


27,308


26,918


27,327


27,308


26,918

Net Income (Loss) Attributable to ChipMOS -
  Diluted


372.0


289.3


149.3


367.0


300.4


139.8

Earnings (Loss) Per Share Attributable to
  ChipMOS-Diluted


13.20


10.28


5.46


13.02


10.68


5.11

Shares Outstanding (in thousands)-Diluted


28,175


28,134


27,356


28,175


28,134


27,356











ChipMOS TECHNOLOGIES (Bermuda) LTD.


UNAUDITED CONSOLIDATED BALANCE SHEET


As of Sep. 30, Jun. 30, 2012 and Sep. 30, 2011

Figures in Millions of U.S. dollars (USD) (1)




ROC GAAP


US GAAP




 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011


 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011


ASSETS                                                                                


USD


USD


  USD


USD


USD


USD


Cash and Cash Equivalents


257.3


225.2


196.0


257.3


225.2


196.0


Financial Assets at Fair Value Through Profit or Loss


-


34.2


-


-


34.2


-


Accounts and Notes Receivable


148.0


135.3


124.5


148.0


135.3


124.5


Inventories


61.1


53.9


55.2


61.1


54.0


55.2


Other Current Assets


25.3


17.2


17.6


25.3


17.2


17.4


Total Current Assets


491.7


465.8


393.3


491.7


465.9


393.1
















Long-Term Investments


1.3


1.3


1.3


1.3


1.3


1.3
















Property, Plant & Equipment-Net


425.5


441.9


506.6


410.8


427.6


493.5


Intangible Assets


3.3


3.4


3.5


3.3


3.4


3.5


Other Assets


33.0


36.3


45.9


35.4


38.6


48.6


Total Assets


954.8


948.7


950.6


942.5


936.8


940.0
















LIABILITIES














Current Liabilities














Short-Term Loans


20.0


21.9


18.9


20.0


21.9


18.9


Current Portion of Long-Term Debts


75.2


48.5


26.6


75.2


48.5


26.6


Accounts Payable and Payables to Contractors and Equipment Suppliers


52.8


50.3


39.4


52.8


50.3


39.4


Other Current Liabilities


58.1


54.1


58.2


58.1


54.1


58.2


Total Current Liabilities


206.1


174.8


143.1


206.1


174.8


143.1


Long-Term Liabilities














Long-Term Debts


215.2


253.5


290.1


215.2


253.5


290.1


Other Liabilities


3.3


3.4


3.5


14.0


14.1


17.0


Total Liabilities


424.6


431.7


436.7


435.3


442.4


450.2
















EQUITY














Shareholders' Equity














Capital Stock


1.4


1.3


1.3


1.4


1.3


1.3


Capital Surplus


393.8


522.0


518.6


380.3


508.6


508.2


Retained Earnings (Accumulated Losses)


16.6


(125.4)


(127.9)


19.4


(122.4)


(127.8)


Treasury Stock


(34.6)


(31.4)


(31.6)


(34.6)


(31.4)


(31.6)


Cumulated Translation Adjustments


14.2


14.6


14.8


14.2


14.6


14.8


Unrecognized Pension Cost


-


-


-


(8.0)


(8.0)


(9.0)


Total Shareholders' Equity


391.4


381.1


375.2


372.7


362.7


355.9


Noncontrolling Interests


138.8


135.9


138.7


134.5


131.7


133.9


Total Equity


530.2


517.0


513.9


507.2


494.4


489.8


Total Liabilities & Equity


954.8


948.7


950.6


942.5


936.8


940.0



Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.29 against US$1.00 as
of Sep. 28, 2012. 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 (Bermuda) LTD.

UNAUDITED CONSOLIDATED BALANCE SHEET

As of Sep. 30, Jun. 30, 2012 and Sep. 30, 2011

Figures in Millions of NT dollars (NTD)




ROC GAAP


US GAAP



 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011


 

Sep. 30, 2012


Jun. 30, 2012


Sep. 30, 2011

ASSETS


NTD


NTD


NTD


NTD


NTD


NTD

Cash and Cash Equivalents


7,537.3


6,596.6


5,740.4


7,537.3


6,596.6


5,740.4

Financial Assets at Fair Value Through Profit or Loss


-


1,000.7


-


-


1,000.7


-

Accounts and Notes Receivable


4,333.5


3,962.1


3,645.0


4,333.5


3,962.1


3,645.0

Inventories


1,788.5


1,579.6


1,617.1


1,789.2


1,580.4


1,618.1

Other Current Assets


741.9


504.3


516.9


741.9


504.3


510.7

Total Current Assets


14,401.2


13,643.3


11,519.4


14,401.9


13,644.1


11,514.2














Long-Term Investments


39.1


39.1


39.1


39.1


39.1


39.1














Property, Plant & Equipment-Net


12,463.8


12,943.6


14,838.6


12,032.7


12,525.6


14,453.5

Intangible Assets


94.8


97.8


100.9


94.8


97.8


100.9

Other Assets


967.1


1,064.0


1,344.9


1,037.0


1,131.9


1,423.8

Total Assets


27,966.0


27,787.8


27,842.9


27,605.5


27,438.5


27,531.5














LIABILITIES













Current Liabilities













Short-Term Loans


585.9


641.8


555.1


585.9


641.8


555.1

Current Portion of Long-Term Debts


2,202.8


1,420.5


779.9


2,202.8


1,420.5


779.9

Accounts Payable and Payables to Contractors
     and Equipment Suppliers


1,545.3


1,472.4


1,153.3


1,545.3


1,472.4


1,153.3

Other Current Liabilities


1,702.4


1,585.0


1,703.8


1,702.4


1,585.0


1,703.8

Total Current Liabilities


6,036.4


5,119.7


4,192.1


6,036.4


5,119.7


4,192.1

Long-Term Liabilities













Long-Term Debts


6,305.0


7,424.2


8,496.8


6,305.0


7,424.2


8,496.8

Other Liabilities


96.4


99.2


102.6


409.5


411.9


497.7

Total Liabilities


12,437.8


12,643.1


12,791.5


12,750.9


12,955.8


13,186.6














EQUITY













Shareholders' Equity













Capital Stock


39.7


39.5


39.0


39.7


39.5


39.0

Capital Surplus


11,533.6


15,290.3


15,187.7


11,139.1


14,898.9


14,884.4

Retained Earnings (Accumulated Losses)


485.4


(3,674.0)


(3,747.5)


568.8


(3,585.5)


(3,743.3)

Treasury Stock


(1,012.7)


(919.8)


(924.8)


(1,012.7)


(919.8)


(924.8)

Cumulated Translation Adjustments


417.0


426.8


433.9


417.0


426.8


433.9

Unrecognized Pension Cost


-


-


-


(235.6)


(235.7)


(265.0)

Total Shareholders' Equity


11,463.0


11,162.8


10,988.3


10,916.3


10,624.2


10,424.2

Noncontrolling Interests


4,065.2


3,981.9


4,063.1


3,938.3


3,858.5


3,920.7

Total Equity


15,528.2


15,144.7


15,051.4


14,854.6


14,482.7


14,344.9

Total Liabilities & Equity


27,966.0


27,787.8


27,842.9


27,605.5


27,438.5


27,531.5

Contacts:

In Taiwan

In the U.S.

Dr. S.K. Chen

David Pasquale

ChipMOS TECHNOLOGIES (Bermuda) LTD.

Global IR Partners

+886-6-507-7712

+1-914-337-8801

s.k._chen@chipmos.com

dpasquale@globalirpartners.com


SOURCE ChipMOS TECHNOLOGIES (Bermuda) LTD.

(Source: PR Newswire )
(Source: Quotemedia)

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The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.