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May 6, 2020

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

Mar. 31, 2020

Period ended

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, 2020
    Time: 4:00PM Taiwan (4:00AM New York)
    Dial-In: +886-2-21928016
    Password:  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, 2020
    Time: 8:00PM Taiwan (8:00AM New York)
    Dial-In: +1-323-794-2093
    Password: 2737399
    Replay Starting 2 Hours After Live Call Ends: +1-412-317-6671, with ID 2737399
    Webcast 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
  operations

(0.9)

(1.2)

2.2

Profit (loss) on remeasurements of defined
  benefit plans

-

0.7

-

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

(0.9)

(0.6)

(1.0)

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

(0.2)

0.1

0.1

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
  – basic

0.03

0.02

0.01

Earnings per ADS equivalent – basic

0.65

0.48

0.18

Weighted average shares outstanding (in
  thousands) – basic

727,240

727,240

726,925

Profit attributable to the Company  – diluted

23.6

17.5

6.4

Earnings per share attributable to the Company
  – diluted

0.03

0.02

0.01

Earnings per ADS equivalent – diluted

0.64

0.48

0.18

Weighted average shares outstanding (in
  thousands) – diluted

731,001

729,443

728,302

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
  operations

(27.4)

(34.9)

68.1

Profit (loss) on remeasurements of defined
  benefit plans

-

20.9

-

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

(25.8)

(17.0)

(31.5)

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

(5.4)

2.1

1.9

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 –
  basic

0.98

0.73

0.27

Earnings per ADS equivalent – basic

19.60

14.58

5.33

Weighted average shares outstanding (in
  thousands) – basic

727,240

727,240

726,925

Profit attributable to the Company – diluted

712.7

530.0

193.7

Earnings per share attributable to the
   Company – diluted

0.97

0.73

0.27

Earnings per ADS equivalent – diluted

19.50

14.53

5.32

Weighted average shares outstanding (in
  thousands) – diluted

731,001

729,443

728,302

 

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
  or loss

5.0

-

-

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
  profit or loss

0.4

0.4

0.4

Non-current financial assets at fair value through
  other comprehensive income

3.2

4.0

4.7

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
  equipment suppliers

45.8

59.3

41.5

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
  or loss

150.0

-

-

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
  profit or loss

10.9

11.0

11.7

Non-current financial assets at fair value through
  other comprehensive income

96.0

121.8

142.8

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
  equipment suppliers

1,386.4

1,792.3

1,256.2

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

 

Dec. 31, 2019

Mar. 31, 2019

USD

USD

USD

Short-term bank loans

-

-

9.9

Long-term bank loans
   (including current portion)

415.3

298.9

323.8

Lease liabilities
   (including current portion)

26.8

22.9

28.9

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%

 

Contacts:

In Taiwan

Jesse Huang

ChipMOS TECHNOLOGIES INC.

+886-6-5052388 ext. 7715

IR@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-first-quarter-2020-results-301053632.html

SOURCE ChipMOS TECHNOLOGIES INC.