Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Third Quarter of 2008 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer Shipments: to be flat from previous quarter
-- Wafer ASP in US$: to decrease by approximately 0-2% points
-- Impact from Currency Fluctuation: 0% to -2% on revenue
-- Capacity Utilization Rates: approximately 80%
-- Profitability: gross profit margin to be in high teen % points
-- The consumer segment is expected to be the strongest followed by the
communication and computer segments
-- 2008 Capex Budget: US$500-700 million
Conference Call / Webcast Announcement
Wednesday, July 30, 2008
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1866 549 1292
UK Toll Free: 0808 234 6305
Singapore Toll Free: 800 852 3576
Hong Kong and Other Areas: +852 3005 2050
Access Code: UMC
A live webcast and replay of the 2Q08 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 manufactures advanced system-on-chip (SoC) designs for applications spanning every major sector of the IC industry. UMC's SoC Solution Foundry strategy is based on the strength of the company's advanced technologies, which include production proven 90nm, 65nm, 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 13,000 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
Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. 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, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission on May 2, 2008.
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, as described in note 35 to the financial statements on 20-F.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.
-- FINANCIAL TABLES TO FOLLOW --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of June 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
June 30, 2008
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 838 25,418 10.4%
Financial assets at fair value
through profit or loss, current 109 3,309 1.4%
Notes & Accounts Receivable 488 14,790 6.1%
Inventories 406 12,309 5.1%
Other Current Assets 84 2,546 1.0%
Total Current Assets 1,925 58,372 24.0%
Non-Current Assets
Funds and Long-term Investments 2,041 61,903 25.5%
Property, Plant and Equipment 3,707 112,430 46.2%
Intangible Assets 123 3,745 1.5%
Other Assets 223 6,768 2.8%
Total Non-Current Assets 6,094 184,846 76.0%
TOTAL ASSETS 8,019 243,218 100.0%
LIABILITIES
Current Liabilities
Short-term Loans 15 456 0.2%
Financial liabilities at fair
value through profit or loss,
current 1 33 0.0%
Payables 500 15,135 6.2%
Dividends payable 309 9,383 3.9%
Other Current Liabilities 7 215 0.1%
Total Current Liabilities 832 25,222 10.4%
Non-Current Liabilities
Financial liabilities at fair
value through profit or loss,
non-current 1 43 0.0%
Bonds Payable 247 7,496 3.1%
Other Liabilities 123 3,719 1.5%
Total Non-Current Liabilities 371 11,258 4.6%
TOTAL LIABILITIES 1,203 36,480 15.0%
STOCKHOLDERS' EQUITY
Capital Stock 4,580 138,921 57.1%
Additional Paid-in Capital 2,028 61,520 25.3%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment 703 21,300 8.8%
Treasury Stock (495) (15,003) -6.2%
TOTAL STOCKHOLDERS' EQUITY 6,816 206,738 85.0%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 8,019 243,218 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
Jun 30, 2008 Jun 30, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 833 25,238 827 25,097 0.6%
Cost of Goods Sold (642) (19,443) (664) (20,139) -3.5%
Net Gross Profit 191 5,795 163 4,958 16.9%
23.0% 23.0% 19.8% 19.8% --
Operating Expenses
-- Sales & Marketing 20 620 24 732 -15.3%
-- General & Administrative 25 744 23 691 7.7%
-- Research & Development 69 2,090 76 2,309 -9.5%
114 3,454 123 3,732 -7.4%
Operating Income (Loss) 77 2,341 40 1,226 90.9%
9.3% 9.3% 4.9% 4.9% --
Net Non-Operating Income
(Expenses) 4 120 138 4,182 -97.1%
Income (Loss) from continuing
operations before income tax 81 2,461 178 5,408 -54.5%
9.8% 9.8% 21.6% 21.6% --
Income Tax (Expense) Benefit (2) (64) (16) (497) -87.1%
Net Income (Loss) 79 2,397 162 4,911 -51.2%
9.5% 9.5% 19.6% 19.6% --
Earnings per Share 0.006 0.19 0.009 0.28 --
Earnings per ADS (2) 0.032 0.95 0.046 1.40 --
Weighted Average
Number of Shares
Outstanding (in millions) -- 12,495 -- 17,780 --
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
Quarter over Quarter Comparison
Three-Month Period Ended
Jun 30, 2008 Mar 31, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 833 25,238 791 24,003 5.1%
Cost of Goods Sold (642) (19,443) (673) (20,427) -4.8%
Net Gross Profit 191 5,795 118 3,576 62.1%
23.0% 23.0% 14.9% 14.9% --
Operating Expenses
-- Sales & Marketing 20 620 24 716 -13.4%
-- General & Administrative 25 744 21 636 17.0%
-- Research & Development 69 2,090 67 2,034 2.8%
114 3,454 112 3,386 2.0%
Operating Income (Loss) 77 2,341 6 190 1,132.1%
9.3% 9.3% 0.8% 0.8% --
Net Non-Operating Income
(Expenses) 4 120 3 71 69.0%
Income (Loss) from continuing
operations before income tax 81 2,461 9 261 842.9%
9.8% 9.8% 1.1% 1.1% --
Income Tax (Expense) Benefit (2) (64) (2) (55) 16.4%
Net Income (Loss) 79 2,397 7 206 1,063.6%
9.5% 9.5% 0.9% 0.9%
Earnings per Share 0.006 0.19 0.001 0.02 --
Earnings per ADS (2) 0.032 0.95 0.003 0.10 --
Weighted Average
Number of Shares
Outstanding (in millions) -- 12,495 -- 12,495 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period For the year
Ended Ended
Jun 30, 2008 Jun 30, 2008
US$ NT$ % US$ NT$ %
Net Sales 833 25,238 100.0% 1,624 49,241 100.0%
Cost of Goods Sold (642) (19,443) -77.0% (1,315) (39,870) -81.0%
Net Gross Profit 191 5,795 23.0% 309 9,371 19.0%
Operating Expenses
-- Sales & Marketing 20 620 2.5% 44 1,336 2.7%
-- General &
Administrative 25 744 2.9% 46 1,380 2.8%
-- Research &
Development 69 2,090 8.3% 136 4,124 8.4%
114 3,454 13.7% 226 6,840 13.9%
Operating Income (Loss) 77 2,341 9.3% 83 2,531 5.1%
Net Non-Operating Income
(Expenses) 4 120 0.5% 7 191 0.4%
Income (Loss) from
continuing operations
before income tax 81 2,461 9.8% 90 2,722 5.5%
Income Tax (Expense)
Benefit (2) (64) -0.3% (4) (119) -0.2%
Net Income (Loss) 79 2,397 9.5% 86 2,603 5.3%
Earnings per Share 0.006 0.19 -- 0.007 0.21 --
Earnings per ADS (2) 0.032 0.95 -- 0.035 1.05 --
Weighted Average
Number of Shares
Outstanding (in millions) -- 12,495 -- -- 12,495 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Six Months Ended Jun. 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 86 2,603
Depreciation & Amortization 627 19,009
Gain on recovery in market value
and obsolescence of inventories 3 106
Cash dividends received under the
equity method 4 135
Investment loss accounted for
under the equity method 3 87
Gain on valuation of financial
assets and liabilities 26 775
Impairment loss 3 86
Gain on disposal of investments (39) (1,176)
Gain on disposal of property,
plant and equipment (1) (17)
Exchange gain on financial assets
and liabilities (0) (14)
Exchange gain on long-term
liabilities (6) (179)
Amortization of bond discounts 0 7
Amortization of deferred income (3) (79)
Change in assets, liabilities and
others (102) (3,089)
Net cash provided from operating
activities 601 18,254
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial
assets 28 851
Acquisition of financial assets
measured at cost (1) (37)
Acquisition of long-term
investments accounted for the
equity method (1) (27)
Acquisition of property, plant
and equipment (270) (8,173)
Proceeds from disposal of
property, plant and equipment 1 28
Acquisition of deferred charges (16) (495)
Decrease in other assets -- others 0 2
Net cash used in investing activities (259) (7,851)
Cash flows from financing activities:
Proceeds from short-term Loans 15 456
Redemption of bonds (749) (22,717)
Decrease in deposits-in (0) (5)
Net cash used in financing activities (734) (22,266)
Effect of exchange rate changes on
cash and cash equivalents (5) (172)
Decrease in cash and cash equivalents (397) (12,035)
Cash and cash equivalents at
beginning of period 1,235 37,453
Cash and cash equivalents at end of
period 838 25,418
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang or I Cheng Lu
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com or i_cheng_lu@umc.com
Web site: http://www.umc.com/
