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Nov 8, 2018

ChipMOS REPORTS THIRD QUARTER 2018 RESULTS

HSINCHU, Taiwan, Nov. 8, 2018 /PRNewswire-FirstCall/ --

Q3'18 Highlights (as compared to Q2'18):

  • Net Revenue Grows 11.4% to US$164.3 Million Compared to US$147.5 Million
  • Gross Profit Improves to US$32.0 Million Compared to US$24.2 Million
  • Gross Margin Increases to 19.5% Compared to 16.4%
  • Net Earnings of US$0.37 Per Basic ADS Compared to US$0.10 Per Basic ADS; Net Earnings of US$0.02 Per Basic Common Share Compared to US$0.005 Per Basic Common Share
  • Distributed Cash Dividend of NT$0.3 Per Common Share and Capital Reduction of NT$1.5 Per Common Share on October 31, 2018, Capital Reduction of US$0.969 Per ADS on November 2, 2018 and Cash Dividend of US$0.194 Per ADS on November 7
  • Retained Balance of Cash and Cash Equivalents at US$199.2 Million, with Net Debt Balance of US$135.2 Million

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, 2018. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$30.46 against US$1.00 as of September 28, 2018.

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

Net revenue for the third quarter of 2018 was NT$5,005.2 million or US$164.3 million, an increase of 11.4% from NT$4,491.6 million or US$147.5 million in the second quarter of 2018 and an increase of 13.0% from NT$4,431.1 million or US$145.5 million for the same period in 2017. 

Net profit attributable to equity holders of the Company for the third quarter of 2018 was NT$439.6 million or US$14.4 million, and NT$0.56 or US$0.02 per basic common share, as compared to net profit attributable to equity holders of the Company for the second quarter of 2018 of NT$124.1 million or US$4.1 million, and NT$0.15 or US$0.005 per basic common share, and compared to net profit attributable to equity holders of the Company in the third quarter of 2017 of NT$162.0 million or US$5.3 million, and NT$0.19 or US$0.01 per basic common share.  Net earnings for the third quarter of 2018 were US$0.37 per basic ADS, compared to US$0.10 per basic ADS for the second quarter of 2018 and US$0.13 per basic ADS in the third quarter of 2017. 

S.J. Cheng, Chairman and President of ChipMOS, said, "We are pleased with third quarter results.  We achieved 11.4% revenue growth compared to Q2 and improved our gross margin to 19.5% from 16.4% over the same period.  We are benefitting from higher utilization levels, a more favorable product mix and higher prices for our services.  We expect continued revenue and profit growth led by existing customer programs, higher volume allocations and ongoing competitive share gains.  We also continue to benefit from higher customer demand in our TDDI and 12" fine pitch COF businesses.  TDDI test demand remains strong as smartphones shift to full screen panels and narrow bezel models, with test programs that run an average of 3 times longer than that of DDIC programs.  This puts our capacity at an even higher premium."

Silvia Su, Vice President of Finance and Accounting, commented, "ChipMOS is positioned for growth with higher utilization rates, healthy demand in our key markets and a strong balance sheet.  We ended the third quarter with a balance of cash and cash equivalents of US$199.2 million, a net debt balance of US$135.2 million, and a net debt to equity ratio of 23.5%.  This is after CapEx of $32.8 million in the third quarter, the majority of which was invested to meet higher customer demand levels for our DDIC related capacity, mainly for DDIC wafer test, and our mixed-signal product testing.  We finalized our Capital Reduction in October, which reduced our outstanding shares by approximately 15%, and we distributed NT$1.5 per common share to shareholders.  Separately, we distributed a cash dividend to shareholders in October of NT$0.3 per common share.  Our focus remains on improving profitability and building shareholders' value."

Selected Operation Data





Q3'18

Q2'18

Revenue by segment

   Testing

24.5%

27.6%

   Assembly

24.3%

26.2%

   LCD Driver 

32.6%

28.9%

Bumping

18.6%

17.3%



CapEx

US$32.8 million

US$32.1 million

   Testing

46.1%

38.3%

   Assembly

6.4%

6.0%

LCD Driver

39.6%

46.7%

   Bumping

7.9%

9.0%



Depreciation and amortization expenses

US$28.2 million

US$27.7 million



Utilization by segment

   Testing

78%

80%

   Assembly

63%

64%

   LCD Driver

81%

81%

Bumping

77%

70%

   Overall

75%

74%



 

 

Condensed consolidated statements of cash flows

Period ended

Sep. 30, 2018

Period ended

Sep. 30, 2017


US$ million

US$ million

Net cash generated from (used in) operating activities

88.6

114.5

Net cash generated from (used in) investing activities

(137.6)

(74.2)

Net cash generated from (used in) financing activities

(15.8)

(3.9)

Net increase (decrease) in cash and cash equivalents

(64.8)

36.4

Effect of exchange rate changes on cash

0.2

(0.5)

Cash and cash equivalents at beginning of period

263.8

248.6

Cash and cash equivalents at end of period

199.2

284.5

Investor Conference Call / Webcast Details

ChipMOS will host two conference calls on Thursday, November 8, 2018 to discuss the Company's financial results for the third quarter of 2018. 

1.

Date: Thursday, November 8, 2018

Time: 4:00PM Taiwan (3:00AM New York)

Dial-In: +886-2-21928016

Password:  908911#


Replay Starting 2 Hours After Live Call Ends: www.chipmos.com.tw

Language: Mandarin


2.

Date: Thursday, November 8, 2018

Time: 8:00PM Taiwan (7:00AM New York)

Dial-In: +1-201-689-8562

Password: 13684391

Replay Starting 2 Hours After Live Call Ends: +1-412-317-6671, with ID 13684391

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 Sep. 30, Jun. 30, 2018 and Sep. 30, 2017

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

Except for Per Share Amounts and Weighted Average Shares Outstanding


Three months ended

Sep. 30, 2018

June. 30, 2018

Sep. 30, 2017

USD

USD

USD

Revenue

164.3

147.5

145.5

Cost of revenue

(132.3)

(123.3)

(120.5)

Gross profit

32.0

24.2

25.0






Research and development expenses

(7.7)

(8.2)

(8.1)

Sales and marketing expenses

(0.4)

(0.5)

(0.5)

General and administrative  expenses

(3.9)

(4.0)

(4.1)

Other operating income (expenses), net

0.9

2.1

0.9






Operating profit

20.9

13.6

13.2






Non-operating income (expenses), net

(2.4)

2.1

(3.7)






Profit (loss) before tax

18.5

15.7

9.5






Income tax benefit (expense)

(4.1)

(11.6)

(2.0)






Profit (loss) from continuing operations

14.4

4.1

7.5






Profit (loss) from discontinued operations

-

-

(2.2)






Profit (loss) for the period

14.4

4.1

5.3






Attributable to:




Equity holders of the Company




-­ Continuing operations

14.4

4.1

7.5

- Discontinued operations

-

-

(2.2)

14.4

4.1

5.3






Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.46 against US$1.00 as of Sep. 28, 2018. 
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 (CONTINUED)

For the Three Months Ended Sep. 30, Jun. 30, 2018 and Sep. 30, 2017

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

Except for Per Share Amounts and Weighted Average Shares Outstanding







Three months Ended

Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

USD

USD

USD

Profit (loss) for the period

14.4

4.1

5.3

Other comprehensive income (loss)




Exchange differences on translation of
  foreign operations

(3.3)

(0.9)

1.1

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

0.9

0.5

-

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)

(0.1)

-

Total other comprehensive income (loss)

(2.6)

(0.5)

1.1






Total comprehensive income (loss)

11.8

3.6

6.4






Profit (loss) attributable to the Company -
  basic

14.4

4.1

5.3

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

0.02

0.005

0.01

Earnings (loss) per ADS equivalent - basic

0.37

0.10

0.13

Weighted average shares outstanding (in
  thousands) - basic

786,260

849,672

846,840

Profit (loss) attributable to the Company -
  diluted

14.4

4.1

5.3

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

0.02

0.005

0.01

Earnings (loss) per ADS equivalent - diluted

0.36

0.10

0.12

Weighted average shares outstanding (in
  thousands) - diluted

792,443

857,028

853,644






Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.46 against US$1.00 as of Sep. 28, 2018. 
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, 2018 and Sep. 30, 2017

Figures in Millions of NT dollars (NTD)

Except for Per Share Amounts and Weighted Average Shares Outstanding


Three months ended

Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

NTD

NTD

NTD

Revenue

5,005.2

4,491.6

4,431.1

Cost of revenue

(4,029.4)

(3,756.4)

(3,670.3)

Gross profit

975.8

735.2

760.8






Research and development expenses

(233.6)

(249.5)

(246.9)

Sales and marketing expenses

(13.8)

(13.9)

(14.4)

General and administrative expenses

(119.0)

(120.9)

(125.0)

Other operating income (expenses), net

26.7

63.2

27.7






Operating profit

636.1

414.1

402.2






Non-operating income (expenses), net

(71.4)

62.9

(114.1)






Profit (loss) before tax

564.7

477.0

288.1






Income tax benefit (expense)

(125.1)

(352.9)

(60.9)






Profit (loss) from continuing operations

439.6

124.1

227.2






Profit (loss) from discontinued operations

-

-

(65.2)






Profit (loss) for the period

439.6

124.1

162.0






Attributable to:




Equity holders of the Company




-­ Continuing operations

439.6

124.1

227.2

- Discontinued operations

-

-

(65.2)

439.6

124.1

162.0






 

 

 

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)

For the Three Months Ended Sep. 30, Jun. 30, 2018 and Sep. 30, 2017

Figures in Millions of NT dollars (NTD)

Except for Per Share Amounts and Weighted Average Shares Outstanding


Three months ended

Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

NTD

NTD

NTD

Profit (loss) for the period

439.6

124.1

162.0

Other comprehensive income (loss)




Exchange differences on translation of
  foreign operations

(103.0)

(25.3)

32.8

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

28.2

14.1

-

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

(1.0)

(0.8)

-

Income tax effect

(5.6)

(2.8)

-

Total other comprehensive income (loss)

(81.4)

(14.8)

32.8






Total comprehensive income (loss)

358.2

109.3

194.8

Profit (loss) attributable to the Company -
  basic

439.6

124.1

162.0

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

0.56

0.15

0.19

Earnings (loss) per ADS equivalent - basic

11.18

2.92

3.83

Weighted average shares outstanding (in
  thousands) - basic

786,260

849,672

846,840

Profit (loss) attributable to the Company - diluted

439.6

124.1

162.0

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

0.55

0.14

0.19

Earnings (loss) per ADS equivalent - diluted

11.09

2.90

3.80

Weighted average shares outstanding (in
  thousands) - diluted

792,443

857,028

853,644

 

 

 


ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of Sep. 30, Jun. 30, 2018 and Sep. 30, 2017

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


Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

ASSETS

USD

USD

USD

Current assets




Cash and cash equivalents

199.2

134.0

284.5

Accounts and notes receivable, net

155.1

142.6

132.6

Inventories

58.1

59.1

62.7

Other current assets

17.6

17.5

12.0

Total current assets

430.0

353.2

491.8






Non-current assets




Financial assets at fair value through profit or loss

0.4

0.4

-

Financial assets at fair value through other comprehensive income

4.7

3.8

-

Non-current financial assets carried at cost

-

-

0.7

Investments accounted for using equity method

129.8

135.0

113.7

Property, plant & equipment

524.6

520.2

492.2

Other non-current assets

12.9

11.5

11.6

Total non-current assets

672.4

670.9

618.2

Total assets

1,102.4

1,024.1

1,110.0






LIABILITIES AND EQUITY






LIABILITIES




Current liabilities




Short-term bank loans

-

-

25.7

Accounts payable and payables to contractors and equipment suppliers

44.7

44.1

49.8

Long-term bank loans, current portion

24.5

24.5

70.3

Long-term lease obligations payable, current portion

0.7

0.4

0.4

Other current liabilities

122.3

73.7

61.5

Total current liabilities

192.2

142.7

207.7






Non-current liabilities




Long-term bank loans

309.2

250.0

281.5

Long-term lease obligations payable

-

0.4

0.7

Other non-current liabilities

24.8

24.8

23.7

Total non-current liabilities

334.0

275.2

305.9

Total liabilities

526.2

417.9

513.6






EQUITY




Capital stock – common stock

247.2

290.8

291.0

Capital surplus

206.2

206.2

206.6

Retained earnings

152.2

137.8

132.4

Other equity interest

2.2

4.5

(0.5)

Treasury stock

(31.6)

(33.1)

(33.1)

Equity attributable to equity holders of the Company

576.2

606.2

596.4

Total equity

576.2

606.2

596.4

Total liabilities and equity

1,102.4

1,024.1

1,110.0






Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.46 against US$1.00 as of Sep. 28, 2018.
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, 2018 and Sep. 30, 2017

Figures in Millions of NT dollars (NTD)


Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

ASSETS

NTD

NTD

NTD

Current assets






Cash and cash equivalents

6,067.2

4,082.6

8,666.9

Accounts and notes receivable, net

4,725.3

4,341.9

4,038.7

Inventories

1,770.1

1,800.3

1,911.2

Other current assets

535.0

534.3

364.6

Total current assets

13,097.6

10,759.1

14,981.4






Non-current assets




Financial assets at fair value through profit or loss

11.4

11.8

-

Financial assets at fair value through other
  comprehensive income

142.9

114.7

-

Non-current financial assets carried at cost

-

-

20.9

Investments accounted for using equity method

3,954.2

4,114.0

3,461.8

Property, plant & equipment

15,979.9

15,844.2

14,992.3

Other non-current assets

391.7

351.6

354.4

Total non-current assets

20,480.1

20,436.3

18,829.4

Total assets

33,577.7

31,195.4

33,810.8






LIABILITIES AND EQUITY




LIABILITIES






Current liabilities




Short-term bank loans

-

-

783.8

Accounts payable and payables to contractors and
  equipment suppliers

1,360.7

1,341.8

1,515.8

Long-term bank loans, current portion

747.3

747.3

2,142.6

Long-term lease obligations payable, current portion

20.7

11.6

11.6

Other current liabilities

3,725.7

2,244.9

1,873.4

Total current liabilities

5,854.4

4,345.6

6,327.2






Non-current liabilities




Long-term bank loans

9,418.4

7,616.7

8,574.5

Long-term lease obligations payable

-

12.0

21.1

Other non-current liabilities

754.6

755.1

720.5

Total non-current liabilities

10,173.0

8,383.8

9,316.1

Total liabilities

16,027.4

12,729.4

15,643.3






EQUITY




Capital stock - common stock

7,529.0

8,859.8

8,864.1

Capital surplus

6,280.9

6,281.2

6,292.6

Retained earnings

4,636.1

4,196.4

4,032.4

Other equity interest

66.8

136.2

(14.0)

Treasury stock

(962.5)

(1,007.6)

(1,007.6)

Equity attributable to equity holders of the Company

17,550.3

18,466.0

18,167.5

Total equity

17,550.3

18,466.0

18,167.5

Total liabilities and equity

33,577.7

31,195.4

33,810.8







 

 

 

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

Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

USD

USD

USD

Operating profit

20.9

13.6

13.2

Add: Depreciation

28.2

27.7

24.4

         Interest income

0.4

0.4

0.4

Less: Capital expenditures

(32.8)

(32.1)

(36.7)

Interest expense

(1.1)

(1.2)

(1.6)

Income tax expense

(4.1)

(11.6)

(2.0)

          Dividend

-

-

(28.1)

Non-GAAP free cash flow

11.5

(3.2)

(30.4)






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







Three months ended

Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

USD

USD

USD

Operating profit

20.9

13.6

13.2

Add: Depreciation

28.2

27.7

24.4

Non-GAAP EBITDA

49.1

41.3

37.6






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







Sep. 30, 2018

Jun. 30, 2018

Sep. 30, 2017

USD

USD

USD

Short-term bank loans

-

-

25.7

Long-term bank loans
  (including current portion)

333.7

274.5

351.8

Long-term lease obligations payable
  (including current portion)

0.7

0.8

1.1

Less: Cash and cash equivalents

(199.2)

(134.0)

(284.5)

Net debt

135.2

141.3

94.1

Equity attributable to equity holders of
  the Company

576.2

606.2

596.4

Net debt to equity ratio

23.5%

23.3%

15.8%

 

 

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  

Cision View original content:http://www.prnewswire.com/news-releases/chipmos-reports-third-quarter-2018-results-300746385.html

SOURCE ChipMOS TECHNOLOGIES INC.