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May 7, 2019

ChipMOS REPORTS FIRST QUARTER 2019 RESULTS

HSINCHU, Taiwan, May 7, 2019 /PRNewswire-FirstCall/ --

Q1'19 Highlights (as compared to Q4'18):

  • Revenue at US$144.6 Million Compared to US$161.1 Million, with Q1'19 Up 11.2% as Compared to Q1'18
  • March 2019 Revenue Increased 19.2%, as Compared to the month of February 2019
  • Retained Balance of Cash and Cash Equivalents at US$164.3 Million, with Net Debt Balance of US$191.1 Million
  • Completed Sale of 9.1 Million Common Shares of JMC ELECTRONICS CO., LTD. ("JMC") in April, with Total Proceeds of NT$1,192.1 Million (Approximately US$38.6 Million); To Recognize Q2'19 Disposal Gain of NT$981.7 Million (Approximately US$31.8 Million) After the Deduction of Related Tax and Expenses; Continues to Own 10 Million Common Shares of JMC, Representing 10.0% of the Total Shares Outstanding. 
  • Cash Dividend of NT$1.20 Per Common Share or Approximately US$0.78 Per ADS Will Be Distributed to Shareholders from Earnings and it's Pending Shareholders' Approval at Annual General Meeting ("AGM") on June 10, 2019

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, 2019. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$30.86 against US$1.00 as of March 29, 2019.

All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").

Revenue for the first quarter of 2019 was NT$4,462.0 million or US$144.6 million, a decrease of 10.3% from NT$4,972.3 million or US$161.1 million in the fourth quarter of 2018 and an increase of 11.2% from NT$4,010.9 million or US$130.0 million for the same period in 2018.  The first quarter normally represents the low period of the year for the industry followed by quarterly revenue growth.  This is due to fewer working days around the Chinese New Year Holiday and semiconductor chain inventory rebalancing at the start of the New Year.

Net profit attributable to equity holders of the Company for the first quarter of 2019 was NT$193.7 million or US$6.3 million, and NT$0.27 or US$0.01 per basic common share, as compared to net profit attributable to equity holders of the Company for the fourth quarter of 2018 of NT$516.6 million or US$16.8 million, and NT$0.71 or US$0.02 per basic common share, and compared to net profit attributable to equity holders of the Company in the first quarter of 2018 of NT$22.8 million or US$0.7 million, and NT$0.03 or US$0.001 per basic common share.  Net earnings for the first quarter of 2019 were US$0.17 per basic ADS, compared to US$0.46 per basic ADS for the fourth quarter of 2018 and US$0.02 per basic ADS in the first quarter of 2018. 

S.J. Cheng, Chairman and President of ChipMOS, said, "We continue to take action in our business and focus on the priority growth drivers, while further improving our balance sheet and working to build value for investors.  Customer demand remains healthy in our TDDI and 12" fine pitch COF businesses with growth expected to continue led by higher demand for new bezel-less smartphone panels, 4K TVs, displays and other applications. Importantly, we believe we have moved beyond the typical low season having reported 19.2% revenue growth for the month of March 2019, as compared to the month of February 2019.  We expect to benefit from further gains in our TDDI, and 12" fine pitch COF business, along with new customer programs in our NAND flash business. Finally, we are pleased to have realized a return in April on our strategic investment in JMC.  The proceeds will be used to further strengthen our Company's financial structure, while increasing our balance of working capital and decreasing the debt ratio."  

Silvia Su, Vice President of Finance and Accounting, commented, "We grew our revenue 11.2%, improved our gross profit by 14.4% and operating profit by 23.6% compared to the same period in 2018.  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, including those in our DDIC business.  We ended the first quarter with a balance of cash and cash equivalents of US$164.3 million, and a net debt balance of US$191.1 million.  This does not reflect the proceeds from our JMC share sale in April, which will be recognized in Q2'19.  CapEx was US$20.4 million in the first quarter, with the majority invested in expanding our DDIC capacity to meet customer demand levels, mainly for TDDI wafer test and 12" fine pitch COF.  Reflecting our commitment to building shareholder value, and confidence in our business and financial position, our Board proposed on March 7, 2019 that NT$1.2 per common share or approximately US$0.78 per ADS be distributed to shareholders from earnings.  This is pending shareholders' approval at our AGM on June 10, 2019."

Selected Operation Data





Q1'19

Q4'18

Revenue by segment

   Testing

22.2%

23.5%

   Assembly

23.1%

24.6%

   LCD Driver 

35.1%

33.7%

Bumping

19.6%

18.2%



CapEx

US$20.4 million

US$55.3 million

   Testing

25.0%

21.0%

   Assembly

7.3%

5.6%

LCD Driver

59.3%

69.5%

   Bumping

8.4%

3.9%



Depreciation and amortization expenses

US$29.1 million

US$27.9 million



Utilization by segment

   Testing

64%

73%

   Assembly

58%

69%

   LCD Driver

76%

81%

Bumping

79%

75%

   Overall

70%

75%



 

Condensed consolidated statements of cash flows

Period ended

Mar. 31, 2019

Period ended

Mar. 31, 2018


US$ million

US$ million

Net cash generated from (used in) operating activities

55.2

24.6

Net cash generated from (used in) investing activities

(50.7)

(70.6)

Net cash generated from (used in) financing activities

9.3

2.5

Net increase (decrease) in cash and cash equivalents

13.8

(43.5)

Effect of exchange rate changes on cash

0.1

(0.2)

Cash and cash equivalents at beginning of period

150.4

260.4

Cash and cash equivalents at end of period

164.3

216.7

Investor Conference Call / Webcast Details

ChipMOS will host two conference calls on Tuesday, May 7, 2019 to discuss the Company's financial results for the first quarter of 2019. 

1. Date: Tuesday, May 7, 2019
Time: 4:00PM Taiwan (4:00AMNew York)
Dial-In: +886-2-21928016
Password:  129606#
Replay Starting 2 Hours After Live Call Ends: www.chipmos.com
Language: Mandarin

2. Date: Tuesday, May 7, 2019
Time: 8:00PM Taiwan (8:00AMNew York)
Dial-In: +1-201-689-8562
Password: 13689697
Replay Starting 2 Hours After Live Call Ends: +1-412-317-6671, with ID 13689697
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.

- FINANCIAL TABLES FOLLOW BELOW -

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended Mar. 31, 2019, Dec. 31, and Mar. 31, 2018

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

Except for Per Share Amounts and  Weighted Average Shares Outstanding


Three months ended

Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

USD

USD

USD

Revenue

144.6

161.1

130.0

Cost of revenue

(122.9)

(124.3)

(111.1)

Gross profit

21.7

36.8

18.9






Research and development expenses

(7.7)

(7.8)

(7.0)

Sales and marketing expenses

(0.4)

(0.5)

(0.4)

General and administrative expenses

(3.6)

(3.6)

(4.3)

Other operating income (expenses), net

0.3

0.8

1.1






Operating profit

10.3

25.7

8.3






Non-operating income (expenses), net

(2.1)

(3.3)

(6.7)






Profit (loss) before tax

8.2

22.4

1.6






Income tax benefit (expense)

(1.9)

(5.6)

(0.9)






Profit (loss) for the period

6.3

16.8

0.7

Other comprehensive income (loss)




Exchange differences on translation of
  foreign operations

2.2

0.8

1.6

Profit (loss) on remeasurements of defined
  benefit plans

-

(1.9)

-

Unrealized gain (loss) on valuation of
  equity instruments at fair value through
  other comprehensive income

(1.0)

1.0

0.4

Share of other comprehensive income 
  (loss) of associates and joint ventures
  accounted for using equity method

0.0

-

(0.0)

Income tax effect

0.2

0.2

(0.0)

Total other comprehensive income (loss)

1.4

0.1

2.0






Total comprehensive income (loss)

7.7

16.9

2.7






Profit (loss) attributable to the Company -
   basic

6.3

16.8

0.7

Earnings (loss) per share attributable to the
   Company - basic

0.01

0.02

0.001

Earnings (loss) per ADS equivalent - basic

0.17

0.46

0.02

Weighted average shares outstanding (in
   thousands) - basic

726,925

726,925

849,571

Profit (loss) attributable to the Company  -
   diluted

6.3

16.8

0.7

Earnings (loss) per share attributable to the
   Company - diluted

0.01

0.02

0.001

Earnings (loss) per ADS equivalent - diluted

0.17

0.46

0.02

Weighted average shares outstanding (in
   thousands) - diluted

728,302

730,212

854,443

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.86 against US$1.00 as of Mar. 29, 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 Mar. 31, 2019, Dec. 31, and Mar. 31, 2018

Figures in Millions of NT dollars (NTD)

Except for Per Share Amounts and  Weighted Average Shares Outstanding


Three months ended

Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

NTD

NTD

NTD

Revenue

4,462.0

4,972.3

4,010.9

Cost of revenue

(3,793.7)

(3,837.5)

(3,426.8)

Gross profit

668.3

1,134.8

584.1






Research and development expenses

(236.7)

(240.3)

(215.8)

Sales and marketing expenses

(11.6)

(14.8)

(11.0)

General and administrative expenses

(112.2)

(112.9)

(132.2)

Other operating income (expenses), net

10.4

25.1

32.4






Operating profit

318.2

791.9

257.5






Non-operating income (expenses), net

(64.3)

(100.8)

(207.8)






Profit (loss) before tax

253.9

691.1

49.7






Income tax benefit (expense)

(60.2)

(174.5)

(26.9)






Profit (loss) for the period

193.7

516.6

22.8

Other comprehensive income (loss)




Exchange differences on translation of
  foreign operations

68.1

26.3

50.9

Profit (loss) on remeasurements of defined
  benefit plans

-

(60.0)

-

Unrealized gain (loss) on valuation of
  equity instruments at fair value through
  other comprehensive income

(31.5)

31.4

11.3

Share of other comprehensive income
  (loss) of associates and joint ventures
  accounted for using equity method

1.9

-

(0.9)

Income tax effect

6.3

5.7

(1.4)

Total other comprehensive income (loss)

44.8

3.4

59.9






Total comprehensive income (loss)

238.5

520.0

82.7






Profit (loss) attributable to the Company -
  basic

193.7

516.6

22.8

Earnings (loss) per share attributable to the
  Company - basic

0.27

0.71

0.03

Earnings (loss) per ADS equivalent - basic

5.33

14.21

0.54

Weighted average shares outstanding (in
  thousands) - basic

726,925

726,925

849,571

Profit (loss) attributable to the Company
 diluted

193.7

516.6

22.8

Earnings (loss) per share attributable to the

 Company - diluted

0.27

0.71

0.03

Earnings (loss) per ADS equivalent - diluted

5.32

14.15

0.53

Weighted average shares outstanding (in
  thousands) - diluted

728,302

730,212

854,443

 

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of Mar. 31, 2019, Dec. 31, and Mar. 31, 2018

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


Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

ASSETS

USD

USD

USD

Current assets




Cash and cash equivalents

164.3

150.4

216.7

Current financial assets at amortized cost

5.5

5.5

-

Accounts and notes receivable, net

132.9

153.8

118.2

Inventories

54.0

57.7

57.9

Other current assets

19.8

17.8

16.1

Total current assets

376.5

385.2

408.9






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 
   comprehensive income

4.6

5.7

3.3

Non-current financial assets at amortized cost

3.2

3.2

-

Investments accounted for using equity method

125.9

125.2

137.1

Property, plant & equipment

535.5

545.0

509.2

Right-of-use assets

28.8

-

-

Other non-current assets

11.4

9.0

12.1

Total non-current assets

709.8

688.5

662.1

Total assets

1,086.3

1,073.7

1,071.0






LIABILITIES AND EQUITY






LIABILITIES




Current liabilities




Short-term bank loans

9.7

-

33.9

Accounts payable and payables to contractors and 
   equipment suppliers

40.7

69.8

40.9

Current lease liabilities

1.3

-

-

Long-term bank loans, current portion

24.2

24.2

69.5

Long-term lease obligations payable, current portion

-

0.6

0.4

Other current liabilities

70.7

73.6

55.9

Total current liabilities

146.6

168.2

200.6






Non-current liabilities




Long-term bank loans

293.1

293.0

243.1

Non-current lease liabilities

27.1

-

-

Long-term lease obligations payable

-

-

0.5

Other non-current liabilities

26.2

26.9

24.1

Total non-current liabilities

346.4

319.9

267.7

Total liabilities

493.0

488.1

468.3






EQUITY




Capital stock – common stock

244.0

244.0

287.2

Capital surplus

203.5

203.5

203.6

Retained earnings

171.6

165.4

140.3

Other equity interest

5.4

3.9

4.3

Treasury stock

(31.2)

(31.2)

(32.7)

Equity attributable to equity holders of the Company

593.3

585.6

602.7

Total equity

593.3

585.6

602.7

Total liabilities and equity

1,086.3

1,073.7

1,071.0






Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.86 against US$1.00 as of Mar. 29, 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 Mar. 31, 2019, Dec. 31, and Mar. 31, 2018

Figures in Millions of NT dollars (NTD)


Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

ASSETS

NTD

NTD

NTD

Current assets






Cash and cash equivalents

5,069.0

4,642.5

6,688.5

Current financial assets at amortized cost

171.2

169.2

-

Accounts and notes receivable, net

4,099.9

4,747.4

3,647.8

Inventories

1,667.0

1,778.8

1,785.1

Other current assets

612.3

550.2

496.0

Total current assets

11,619.4

11,888.1

12,617.4






Non-current assets




Financial assets at fair value through profit or loss

11.7

11.5

11.9

Financial assets at fair value through other
   comprehensive income

142.8

174.4

100.6

Non-current financial assets at amortized cost

99.2

99.1

-

Investments accounted for using equity method

3,884.5

3,863.7

4,231.0

Property, plant & equipment

16,524.7

16,819.6

15,714.6

Right-of-use assets

888.9

-

-

Other non-current assets

352.5

277.3

374.3

Total non-current assets

21,904.3

21,245.6

20,432.4

Total assets

33,523.7

33,133.7

33,049.8






LIABILITIES AND EQUITY




LIABILITIES






Current liabilities




Short-term bank loans

300.0

-

1,046.6

Accounts payable and payables to contractors and
   equipment suppliers

1,256.2

2,154.4

1,261.2

Current lease liabilities

40.2

-

-

Long-term bank loans, current portion

748.1

747.4

2,144.0

Long-term lease obligations payable, current portion

-

17.8

12.0

Other current liabilities

2,180.8

2,270.6

1,725.5

Total current liabilities

4,525.3

5,190.2

6,189.3






Non-current liabilities




Long-term bank loans

9,044.3

9,042.1

7,502.9

Non-current lease liabilities

835.0

-

-

Long-term lease obligations payable

-

-

15.0

Other non-current liabilities

808.8

830.6

744.1

Total non-current liabilities

10,688.1

9,872.7

8,262.0

Total liabilities

15,213.4

15,062.9

14,451.3






EQUITY




Capital stock – common stock

7,528.3

7,528.6

8,861.4

Capital surplus

6,280.7

6,280.5

6,284.2

Retained earnings

5,298.3

5,104.5

4,328.7

Other equity interest

165.5

119.7

131.8

Treasury stock

(962.5)

(962.5)

(1,007.6)

Equity attributable to equity holders of the Company

18,310.3

18,070.8

18,598.5

Total equity

18,310.3

18,070.8

18,598.5

Total liabilities and equity

33,523.7

33,133.7

33,049.8

 

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, 2019

Dec. 31, 2018

Mar. 31, 2018

USD

USD

USD

Operating profit

10.3

25.7

8.3

Add: Depreciation

29.1

27.9

26.3

         Interest income

0.5

0.5

0.3

Less: Capital expenditures

(20.4)

(55.3)

(41.0)

Interest expense

(1.4)

(1.3)

(1.3)

Income tax expense

(1.9)

(5.6)

(0.9)

           Dividend

-

(8.3)

-

Non-GAAP free cash flow

16.2

(16.4)

(8.3)

The table below sets forth a reconciliation of our operating profit to non-GAAP EBITDA for the periods indicated:


Three months ended

Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

USD

USD

USD

Operating profit

10.3

25.7

8.3

Add: Depreciation

29.1

27.9

26.3

Non-GAAP EBITDA

39.4

53.6

34.6

The table below sets forth a calculation of our non-GAAP net debt to equity ratio for the periods indicated:


Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

USD

USD

USD

Short-term bank loans

9.7

-

33.9

Long-term bank loans
   (including current portion)

317.3

317.2

312.6

Long-term lease obligations payable
   (including current portion)

-

0.6

0.9

Lease liabilities
   (including current portion)

28.4

-

-

Less: Cash and cash equivalents

(164.3)

(150.4)

(216.7)

Net debt

191.1

167.4

130.7

Equity attributable to equity holders of
   the Company

593.3

585.6

602.7

Net debt to equity ratio

32.2%

28.6%

21.7%

 

Contacts:

In Taiwan

Jesse Huang

ChipMOS TECHNOLOGIES INC.

+886-6-5052388 ext. 7715

jesse_huang@chipmos.com

 

In the U.S.

David Pasquale

Global IR Partners

+1-914-337-8801

dpasquale@globalirpartners.com

 

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SOURCE ChipMOS TECHNOLOGIES INC.