UMC Reports 2003 First Quarter Results
TAIPEI, Taiwan--April 30, 2003--United Microelectronics Corporation :Results Beat Guidance; Anticipating Greater than 20% QoQ Shipment
Growth in 2Q03
First Quarter 2003 Highlights(1):
| -- | Quarter-over-quarter revenue increased by 2.1 % to NT$17.90 billion (US$515 million) |
| -- | Operating income of NT$699 million (US$20 million) |
| -- | Net income of NT$403 million (US$12 million) |
| -- | Wafer shipments of 446 thousand 8-inch equivalent wafers; blended average selling price is flat compared with last quarter |
| -- | EPS of NT$0.03, or EPADS of US$0.004 |
United Microelectronics Corporation ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the first quarter of 2003.
All financial figures were prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States.
"We are pleased to report that results for the first quarter of 2003 are better than our previously announced guidance, and we are expecting second quarter wafer shipments to increase by more than 20% compared to the first quarter." UMC Vice Chairman & CEO John Hsuan said.
"We believe that the competitive landscape for the foundry business has changed dramatically and, since last quarter, have initiated a partnership foundry business model in which we and our partners form close relationships. In the short term, this allows the best utilization of our resources, and in the long term, we believe our profitability and growth rate will outperform other foundries," John Hsuan continued.
"The goal of our partnership foundry business model is to create a network of partnerships and alliances among system and integrated device manufacturers, foundry companies, and intellectual property and design houses. Our partnerships take a variety of forms and structures, depending upon the needs of the customer and the market environment in which they compete. Our focus is to make each customer engagement a successful partnership. Together, UMC and our customers are stronger than we are separately."
(1) Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP. They are
unaudited, unconsolidated, and represent comparisons among the
three-month period ending March 31, 2003, the three-month period
ending December 31, 2002, and the equivalent three-month period
that ended March 31, 2002. For all 1Q03 results, New Taiwan Dollar
(NT$) amounts have been converted into U.S. dollars at the
exchange rate of NT$34.76 to one U.S. dollar.
Summary of Operating Results
Revenue for 1Q03 was NT$17.90 billion, representing a 47.2% YoY increase from NT$12.16 billion in 1Q02, and a 2.1% QoQ increase from NT$17.54 billion in 4Q02. Gross profit for the quarter was NT$2.74 billion, a 6.2% increase from NT$2.58 billion in 4Q02. The increase in gross profit is primarily attributable to higher revenue. Net income for 1Q03 was NT$403 million, compared to NT$986 million in 4Q02. The decline in net income was due to non-operating losses.
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(Figures in million NT$) 1Q03 4Q02 QoQ 1Q02 YoY
%change % change
=====================================================================
Revenue 17,898 17,535 2.1 12,159 47.2
Gross Profit 2,740 2,581 6.2 674 306.5
Operating Expenses (2,041)(2,250) (9.3)(3,126) (34.7)
Operating Profit 699 331 111.2 (2,452) --
Non-op Income and Exp. (295) 657 -- 2,670 --
Net Income 403 986 (59.1) 216 86.6
EPS (NT$ per share) 0.03 0.07 0.01
(US$ per ADR) 0.004 0.010 0.001
---------------------------------------------------------------------
Earnings per ordinary share (EPS) for the quarter were NT$0.03. Earnings per ADS (EPADS) were US$0.004. This compares with earnings per ordinary share and ADS in 1Q02 of NT$0.01 and US$0.001 respectively. One ADS represents five Taiwan listed ordinary shares. Total weighted average outstanding shares in 1Q03 were 14,726,502,640 shares, compared with 14,730,658,270 shares in 4Q02 and 14,786,323,844 shares in 1Q02. Diluted total weighted average outstanding shares, which include the dilution effects of future ECB conversion and stock option exercises, were 14,763,951,887 shares in 1Q03, compared with 15,045,394,253 shares in 4Q02 and 14,786,323,844 shares in 1Q02.
Detailed Financials Section
COGS & Expenses
======================================================================
(Amount: NT$ million) 1Q03 4Q02 QoQ 1Q02 YoY
%change %change
----------------------------------------------------------------------
Revenue 17,898 17,535 2.1 12,159 47.2
COGS (15,158)(14,954) 1.4 (11,485) 32.0
Depreciation (7,501) (6,997) 7.2 (6,549) 14.5
Other Mfg. Costs (7,657) (7,957) (3.8) (4,936) 55.1
Gross Profit 2,740 2,581 6.2 674 306.5
Gross Margin (%) 15.3% 14.7% 5.5%
Total Op. Exp. (2,041) (2,250) (9.3) (3,126) (34.7)
G&A (510) (547) (6.8) (933) (45.3)
Selling and Mkting (266) (278) (4.3) (201) 32.3
R&D (1,265) (1,425) (11.2) (1,992) (36.5)
Operating Profit 699 331 111.2 (2,452) -
Operating Margin (%) 3.9% 1.9% -20.2%
----------------------------------------------------------------------
Depreciation and amortization expenses were NT$9.16 billion in 1Q03, compared to NT$9.12 billion in 4Q02. Depreciation within COGS increased by 7.2% to NT$7.50 billion. Total operating expenses have declined for four consecutive quarters, and declined 9.3% QoQ to NT$2.04 billion in 1Q03, mainly due to continuously effective cost saving efforts. General and administrative expenses declined 6.8% QoQ, due to less travel. Sales and marketing expenses decreased 4.3% QoQ to NT$266 million, mainly due to savings associated with a more reasonable partner resource allocation. R&D spending declined 11.2% QoQ to NT$1.27 billion mainly due to the completion of our 0.13-micron generation manufacturing technology.
Non-operating Income (Expenses) ====================================================================== (Amount: NT$ million) 1Q03 4Q02 1Q02 ---------------------------------------------------------------------- Net Non-Operating Income (Loss) (295) 657 2,670 Net Interest Income (Expense) (20) (5) (60) Net Investment Income (Loss) (124) 461 405 Gain on Disposal of Investment 113 299 2,125 Exchange Gain (Loss) 69 104 70 Others (333)(202) 130 ----------------------------------------------------------------------
Net non-operating loss for 1Q03 was NT$295 million, of which NT$124 million was attributable to investment loss, including a NT$100 million amortization of the difference between the equity investment cost of SiS and its underlying equity in net assets, which we expect to amortize over 5 years. Loss from other items is mainly due to wafer scraps of NT$249 million. Exchange gains in 1Q03 were NT$69 million.
Cash Flow Summary
======================================================================
(Amount: NT$ million) For the 3-Month For the 3-Month
Period Ended Mar. Period Ended Dec.
31, 2003 31, 2002
----------------------------------------------------------------------
Cash Flow from Operations 7,449 10,959
Net Income (Loss) 403 986
Depreciation & Amortization 9,164 9,118
Changes in working capital (2,495) 1,404
Others 377 (549)
Cash Flow from Investing (7,622) (6,069)
Capital Expenditures (2,827) (4,682)
Others (4,795) (1,388)
Cash Flow from Financing (3,736) (1,830)
Net Cash Flow (3,909) 3,060
----------------------------------------------------------------------
Net cash outflow was NT$3.91 billion in 1Q03. Working capital decreased by NT$2.50 billion, mainly due to the near term uptrend of our revenue. Cash outflow from investing includes capital spending, primarily consisting of equipment, which totaled NT$2.83 billion, and a NT$4.39 billion investment in SiS in 1Q03. The majority of cash outflow due to financing activities consists mostly of a NT$1.86 billion payback of long-term loans and a NT$1.78 billion purchase of treasury stocks. For the next 12 months, we expect to pay back NT$4.26 billion in long-term loans and redeem NT$11.77 billion in bonds.
Current Assets
======================================================================
(Amount: NT$ Bn) 1Q03 4Q02 1Q02
----------------------------------------------------------------------
Cash & Equiv. 58.57 62.48 60.81
Notes & Accounts Receivable 12.38 9.37 7.10
Days Sales Outstanding 55 54 54
Inventories 8.15 7.69 6.53
Inventory Turns 49 48 48
Total Current Assets 85.79 86.66 79.18
----------------------------------------------------------------------
Cash and equivalents decreased NT$3.91 billion to NT$58.57 billion, mainly because UMC invested NT4.39 billion in SiS in 1Q03. Notes & accounts receivable increased by NT$3.01 billion QoQ to NT$12.38 billion, mainly due to the uptrend of our business. On a sequential basis, days sales outstanding(1) increased to 55 days. Inventory turns increased slightly to 49 days.
Liabilities
======================================================================
(Amount: NT$ Bn) 1Q03 4Q02 1Q02
----------------------------------------------------------------------
Total Current Liabilities 30.07 20.95 25.69
Accounts Payable 3.01 2.66 2.52
Short Term Credit / Bonds 16.03 5.67 6.01
Others 11.03 12.62 17.16
Long Term Liabilities 42.76 55.07 51.63
Total Debts 76.79 79.90 81.94
Debt to Equity 36% 37% 39%
----------------------------------------------------------------------
UMC's financial position improved during the quarter. Total debt declined by 3.9% to NT$76.79 billion because UMC repaid loans worth NT$1.96 billion to reduce interest expenses. UMC's debt to equity ratio dropped to 36% by the end of 1Q03 from 37%by the end of 4Q02. Compared with 4Q02, total current liabilities increased by NT$9.12 billion, mainly due to the reclassification of our NT$106 million ECB, which was issued on December 12, 2001, and will be due on March 1, 2004. It was moved from long-term liabilities to current liabilities.
(2) Days Sales Outstanding = 365/ (Operating revenues for three-month
period end *4)/ (Beginning NR&AR balance, net + Ending NR&AR
balance,net)/2)) Inventory Turns = 365/(COGS for three-month
period end (a)4)/(Beginning Inventory balance,net+Ending Inventory
balance,net)/2))
Analysis of Revenue(3)
The percentage of revenue contributed from Europe grew to 18% in 1Q03 from 15% in 4Q02 mainly due to the restocking after an inventory rationalization in 4Q02 by a handful of European customers. The percentage of revenue from other geographic areas remained similar compared with the last quarter.
The percentage of revenue from leading-edge 0.13-micron technology sales increased to 7% in 1Q03 from 6% in 4Q02. 38% of revenue in 1Q03 was from 0.18-micron and below technologies compared with 36% of revenue in the previous quarter.
IDM orders accounted for 29% of the total, up from 24% in 4Q02 due to a few European IDM customers replenishing their inventories to normal levels.
Revenue from the computer market segment in 1Q03 was 27% of total revenue, and was higher than we earlier anticipated due to new customer wins and strong demand from LCD panel drivers.
REVENUE BREAKDOWN BY REGION
Region 1Q022Q023Q024Q021Q03 ====================================================================== North America 29% 35% 43% 41% 39% ---------------------------------------------------------------------- Asia Pacific 54% 50% 34% 41% 40% ---------------------------------------------------------------------- Europe 14% 11% 20% 15% 18% ---------------------------------------------------------------------- Japan 3% 4% 3% 3% 3% ----------------------------------------------------------------------
REVENUE BREAKDOWN BY TECHNOLOGY
Technology 1Q022Q023Q024Q021Q03 ====================================================================== 0.13um 0% 1% 2% 6% 7% ---------------------------------------------------------------------- 0.15um 5% 5% 9% 8% 3% ---------------------------------------------------------------------- 0.15um less than x less than = 0.18um 10% 17% 26% 22% 28% ---------------------------------------------------------------------- 0.18um less than x less than = 0.25um 27% 28% 25% 23% 25% ---------------------------------------------------------------------- 0.25um less than x less than = 0.35um 40% 33% 22% 27% 25% ---------------------------------------------------------------------- 0.5um and above 18% 16% 16% 14% 12% ----------------------------------------------------------------------
REVENUE BREAKDOWN BY CUSTOMER TYPE
Customer Type 1Q022Q023Q024Q021Q03 ====================================================================== Fabless 82% 82% 71% 75% 71% ---------------------------------------------------------------------- IDM 17% 17% 28% 24% 29% ---------------------------------------------------------------------- System 1% 1% 1% 1% 0% ----------------------------------------------------------------------
REVENUE BREAKDOWN BY APPLICATION(1)
Application 1Q022Q023Q024Q021Q03 ====================================================================== Computer 38% 29% 24% 25% 27% ---------------------------------------------------------------------- Communication 20% 25% 37% 40% 40% ---------------------------------------------------------------------- Consumer 33% 37% 31% 28% 28% ---------------------------------------------------------------------- Memory 7% 7% 6% 5% 4% ---------------------------------------------------------------------- Others 2% 2% 2% 2% 1% ----------------------------------------------------------------------
(1) Computer consists of ICs such as HD controllers, DVD-ROM/CD-ROM
drivers, LCD drivers, graphic processors, and PDAs. Communication
consists of xDSL, DSP, WLAN, LAN controllers, handset components,
caller ID devices, etc. Consumer consists of ICs used for DVD
players, game consoles, digital cameras, smart cards, toys, etc.
Memory consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM.
(3) Revenue in this section represents net wafer sales. All revenue
breakdown tables exclude JV's and subsidiaries.
Blended Average Selling Price Trend
For the quarter, wafer price per technology node was stable. The blended average selling price (ASP) for the first quarter was unchanged from 4Q02, and was in line with the QoQ flat ASP guidance we previously provided.
CAPEX
For fiscal year 2003, planned capital expenditure (UMC only) is US$500 million. CAPEX in 1Q03 was US$81 million. Planned CAPEX in 2Q03 is expected to be US$145 million. We expect to spend 40% of this on Fab12A capacity expansion, 20% on R&D and the remaining 40% on other 8-inch wafer fabs.
CAPITAL EXPENDITURE BY YEAR
CAPEX PLAN - IN BILLIONS OF US$
======================================================================
Year 1998 1999 2000 2001 2002 2003E
----------------------------------------------------------------------
$1.70 $1.90 $2.80 $1.10 $0.8 $0.5
----------------------------------------------------------------------
Capacity(4)
Capacity for 1Q03 was 668 thousand eight-inch equivalent wafers. Current estimated 2Q03 capacity is 668 thousand eight-inch equivalent wafers.
Annual Capacity in thousands of 8-inch wafer equivalents, excluding JV's & subsidiaries
Geometry
FAB (um) 2000 2001 2002 2003E
======================================================================
Fab 5A(1) 5" (greater than)0.8 33 -- -- --
----------------------------------------------------------------------
Fab 6A 6" 3.5 - 0.45 348 345 349 352
----------------------------------------------------------------------
Fab 8AB 8" 0.5 - 0.25 926 943 853 864
----------------------------------------------------------------------
Fab 8C 8" 0.35 - 0.15 416 460 355 300
----------------------------------------------------------------------
Fab 8D 8" 0.18 - 0.09 94 290 214 244
----------------------------------------------------------------------
Fab 8E 8" 0.5 - 0.18 373 474 376 332
----------------------------------------------------------------------
Fab 8F 8" 0.25 - 0.15 139 351 312 358
----------------------------------------------------------------------
Fab 12A 12" 0.18 - 0.13 -- 22 119 216
======================================================================
Total (2) 2,329 2,885 2,578 2,666
----------------------------------------------------------------------
YoY Growth Rate 41% 24% -11% 3%
----------------------------------------------------------------------
(1) Fab 5A was sold in 2Q00
(2) One 6-inch wafer is converted into 0.5625 8-inch equivalent
wafer; one 12-inch wafer is converted into 2.25 8-inch
equivalent wafers.
Quarterly Capacity Plan by fab in thousands of 8-inch wafer equivalents excluding JV's & subsidiaries
FAB 3Q024Q021Q032Q03E3Q03E
----------------------------------------------------------------------
Fab 6A 89 89 88 88 88
----------------------------------------------------------------------
Fab 8AB 227 216 216 216 216
----------------------------------------------------------------------
Fab 8C 79 83 75 75 75
----------------------------------------------------------------------
Fab 8D 43 53 63 63 60
----------------------------------------------------------------------
Fab 8E 100 92 83 83 83
----------------------------------------------------------------------
Fab 8F 72 86 89 89 90
----------------------------------------------------------------------
Fab 12A 30 54 54 54 54
======================================================================
Total 640 673 668 668 666
----------------------------------------------------------------------
Shipment and Utilization Rate
Wafer shipments increased by 12 thousand 8-inch equivalent wafers QoQ, representing a roughly 3% increase. The shipment quantity is better than our earlier guidance, when we expected a flat trend, due to better than expected orders in March.
Utilization for the quarter was 67%, better than the approximately 60% we expected in our previously provided guidance.
Wafer Shipments
1Q022Q023Q024Q021Q03
======================================================================
Wafer Shipments (K 8-inch eq.) 308 467 435 434 446
----------------------------------------------------------------------
Quarterly Capacity Utilization Rate
1Q022Q023Q024Q021Q03
======================================================================
Utilization rate (%) 50% 72% 68% 64% 67%
----------------------------------------------------------------------
Total Capacity
(K 8-inch eq.) 616 649 640 673 668
----------------------------------------------------------------------
(4) Estimated capacity numbers are based on calculated maximum output
rather than designed capacity. The actual capacity numbers may
differ depending upon equipment delivery schedules, pace of
migration to more advanced process technologies, and other factors
affecting production ramp ups. Quarterly utilization rate =
Quarterly wafer out / Estimated quarterly capacity.
1Q 2003 Principle Investments(5)
UMC has formed several strategic partnerships, including those with SiS, a Taiwan listed chipset and graphic card IDM, and Silicon7, a Korean fabless design house. SiS has announced that it will not expand its own chip making capacity and will mainly rely on UMC for its outsourcing needs. UMC invested NT$300 million in THSRC's preferred shares for the yield they provide.
Unit: NT
1Q 2003 Principle Investments Million
----------------------------------------------------------------------
Acquisition Incremental Accumulated
Cost Ownership% Ownership%
----------------------------------------------------------------------
SiS 4,393 12.55% 16.18%
----------------------------------------------------------------------
THSRC(1) 300 - -
----------------------------------------------------------------------
SILICON 7 139 - -
----------------------------------------------------------------------
UMCJ 121 0.52% 52.00%
----------------------------------------------------------------------
NOVATEK 118 0.62% 26.45%
----------------------------------------------------------------------
PTP(2) Fund 30 - -
----------------------------------------------------------------------
TOTAL 5,101
----------------------------------------------------------------------
(1) The full name of THSRC is Taiwan High Speed Rail Corp.
(2) The full name of PTP is Pacific Technology Partners, L.P.
(5) The principle investment information disclosed is UMC
aggregated data, including UMC, Hsun Chieh Investment Corp.,
Fortune Venture Capital Corp. and UMC Capital Corp.
Recent Developments / Announcements
Apr. 08 Giga Solution, Mentor Graphics and UMC Release Foundry
Design Kits for 0.18um RF Mixed-Mode Process
Apr. 02 Oki and UMC / UMCJ Achieve New Production Milestones
Mar. 31 UMC Delivering Customer IC's Built on 90nm Technology
Mar. 28 XILINX First 130nm 300mm Production Qualification at UMC
with Virtex-II Pro
Mar. 27 UMC Honors Xilinx for Milestone Achievement: 300mm Volume
Manufacturing Using Advanced Technologies
Mar. 26 UMC Forms Strategic Partnership with Silicon7
Mar. 25 UMC Names Dr. Jackson Hu Head of Design Support
Mar. 25 UMC Declares the Board of Directors' Proposals to the AGM
Mar. 11 UMC News: UMC Vice Chairman Peter Chang Delivers Keynote
Address at 2003 Semico Summit
Mar. 10 Oki Electric Enhances its ASIC Product Offerings Through
Collaboration with UMC
Jan. 30 Faraday Validates Multiple Silicon Intellectual Properties
For UMC's 90-nm Process Using Magma Design Flow
Please visit UMC's website
http://www.umc.com/english/news/index.asp
for further details regarding the above announcements.
Second Quarter of 2003 Outlook & Guidance
Quarter-over-quarter comparison:
| -- | l Wafer ASP: flat from 1Q03 |
| -- | l Wafer shipments: (greater than) 20% increase compared with 1Q03 |
| -- | l Capacity utilization rate: over 80% |
| -- | l Operating profit margins to challenge double-digit |
| -- | l Percentage of revenue from 0.18 - micron & below technology: approximately 40% |
| -- | l The PC segment should post the strongest growth due to customer wins, followed by communication and consumer segments. |
Conference Call / Webcast Announcement
Wednesday, April 30, 2003
Local Teleconference (Mandarin)
Time: 2:00 PM (Taipei) / 2:00 AM (New York) / 7:00 AM (London)
Dial-in number:
Taiwan: (02) 2192-2758
Overseas Teleconference
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
Asia/Europe: +1 (719) 457-2617
North America: +1 (800) 231-9012
Access Code: UMC
Live webcasts and replays of local and overseas teleconferences will be available at www.umc.com under the "Investor Relations / Investor Events" section.
About UMC
UMC is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SOC) designs, including 0.13um copper, embedded DRAM, and mixed signal/RFCMOS. UMC is also a leader in 300mm manufacturing; Fab 12A in Taiwan is currently in volume production for a variety of customer products, while the Singapore-based UMCi joint venture with Infineon Technologies will begin pilot production later this year. UMC employs over 8,500 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. Such 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 may be implied by 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 frequent introduction of new services and technologies based on the latest developments; the intensely competitive semiconductor, personal computer and communications 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, personal computer and communications industries; possible disruptions in commercial activities caused by natural and human induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases, such as 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 for year 2001 filed with the U.S. Securities and Exchange Commission on June 13, 2002.
The financial statements included in this release were unaudited, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and U.S. GAAP, as described in the note 28 to the financial statements on Form 6-K filed by UMC with the U.S. Securities and Exchange Commission on March 25, 2003.
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 subsequent to such date.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of March 31, 2003
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars
(US$)
March 31, 2003
----------------------
US$ NT$ %
------ -------- ------
ASSETS
Current Assets
Cash and Cash Equivalents 1,685 58,570 20.0%
Short-term Investments 82 2,841 1.0%
Notes & Accounts Receivables 356 12,379 4.2%
Inventories 234 8,148 2.8%
Other Current Assets 111 3,850 1.3%
------ -------- ------
Total Current Assets 2,468 85,788 29.3%
------ -------- ------
Non-Current Assets
Funds and Long-term Investments 1,747 60,712 20.7%
Property, Plant and Equipment 3,954 137,458 47.0%
Intangible Assets 0 16 0.0%
Other Assets 252 8,751 3.0%
------ -------- ------
Total Non-Current Assets 5,953 206,937 70.7%
------ -------- ------
TOTAL ASSETS 8,421 292,725 100.0%
====== ======== ======
LIABILITIES
Current Liabilities
Payables 347 12,063 4.1%
Current Portion of Long-term Liabilities 461 16,032 5.5%
Other Current Liabilities 57 1,973 0.7%
------ -------- ------
Total Current Liabilities 865 30,068 10.3%
------ -------- ------
Non-Current Liabilities
Bonds Payable 1,004 34,890 11.9%
Long-term Loans 226 7,869 2.7%
Other Liabilities 114 3,956 1.3%
------ -------- ------
Total Non-Current Liabilities 1,344 46,715 15.9%
------ -------- ------
TOTAL LIABILITIES 2,209 76,783 26.2%
------ -------- ------
STOCKHOLDERS' EQUITY
Capital Stock 4,452 154,748 52.9%
Capital Reserve 2,357 81,942 28.0%
Retained Earnings, Unrealized Long-term
Investment Loss and Translation Adjustment 292 10,157 3.5%
Treasury Stock (889) (30,905) -10.6%
------ -------- ------
TOTAL STOCKHOLDERS' EQUITY 6,212 215,942 73.8%
------ -------- ------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 8,421 292,725 100.0%
====== ======== ======
---------------------------------------------------------------------
Note : New Taiwan Dollars have been translated into U.S. Dollars at
the March 31, 2003 exchange rate of NT$ 34.76 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
March 31, 2003 March 31, 2002 %
--------------- --------------- ------
US$ NT$ US$ NT$ Chg.
------ -------- ------ -------- ------
Net Sales 515 17,898 350 12,159 47.2%
Cost of Goods Sold (436) (15,158) (331) (11,485) 32.0%
------ -------- ------ -------- ------
Net Gross Profit 79 2,740 19 674 306.5%
------ -------- ------ -------- ------
15.3% 15.3% 5.5% 5.5%
Operating Expenses
- Sales & Marketing 8 266 6 201 32.3%
- General & Administrative 15 510 27 933 -45.3%
- Research & Development 36 1,265 57 1,992 -36.5%
------ -------- ------ -------- ------
59 2,041 90 3,126 -34.7%
------ -------- ------ -------- ------
Operating Income (Loss) 20 699 (71) (2,452) -
3.9% 3.9% -20.2% -20.2%
Net Non-Operating Income
(Expenses) (8) (295) 77 2,670 -
------ -------- ------ -------- ------
Income (loss) before Income Tax 12 404 6 218 85.3%
2.3% 2.3% 1.8% 1.8%
Income Tax (Expense) Benefit - (1) - (2) -50.0%
------ -------- ------ -------- ------
Net Income (Loss) 12 403 6 216 86.6%
====== ======== ====== ======== ------
2.3% 2.3% 1.8% 1.8%
Earnings (loss) per share 0.001 0.03 0.000 0.01
------ -------- ------ --------
Earnings (loss) per ADS (2) 0.004 0.15 0.001 0.05
------ -------- ------ --------
Weighted Average Number of
Shares
Outstanding (in millions) 14,727 14,786
-------- --------
----------------------------------------------------------------------
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
March 31, 2003 December 31, 2002 %
--------------- --------------- ------
US$ NT$ US$ NT$ Chg.
------ -------- ------ -------- ------
Net Sales 515 17,898 504 17,535 2.1%
Cost of Goods Sold (436) (15,158) (430) (14,954) 1.4%
------ -------- ------ -------- ------
Net Gross Profit 79 2,740 74 2,581 6.2%
------ -------- ------ -------- ------
15.3% 15.3% 14.7% 14.7%
Operating Expenses
- Sales & Marketing 8 266 8 278 -4.3%
- General & Administrative 15 510 16 547 -6.8%
- Research & Development 36 1,265 41 1,425 -11.2%
------ -------- ------ -------- ------
59 2,041 65 2,250 -9.3%
------ -------- ------ -------- ------
Operating Income (Loss) 20 699 9 331 111.2%
3.9% 3.9% 1.9% 1.9%
Net Non-Operating Income
(Expenses) (8) (295) 19 657 -
------ -------- ------ -------- ------
Income (loss) before Income Tax 12 404 28 988 -59.1%
2.3% 2.3% 5.6% 5.6%
Income Tax (Expense) Benefit - (1) - (2) -50.0%
------ -------- ------ -------- ------
Net Income (Loss) 12 403 28 986 -59.1%
====== ======== ====== ======== ------
2.3% 2.3% 5.6% 5.6%
Earnings (loss) per share 0.001 0.03 0.002 0.07
------ -------- ------ --------
Earnings (loss) per ADS (2) 0.004 0.15 0.010 0.35
------ -------- ------ --------
Weighted Average Number of
Shares
Outstanding (in millions) 14,727 14,731
-------- --------
----------------------------------------------------------------------
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2003 exchange rate of NT$ 34.76 per U.S. Dollar. All
figures are in ROC GAAP.
(2) 1 ADS equals 5 ordinary 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 For the Three-Month
Period Ended Period Ended
March 31, 2003 March 31, 2003
---------------------- ----------------------
US$ NT$ % US$ NT$ %
------ -------- ------ ------ -------- ------
Net Sales 515 17,898 100% 515 17,898 100%
Cost of Goods Sold (436) (15,158) -84.7% (436) (15,158) -84.7%
------ -------- ------ ------ -------- ------
Net Gross Profit 79 2,740 15.3% 79 2,740 15.3%
------ -------- ------ ------ -------- ------
Operating Expenses
- Sales & Marketing 8 266 1.5% 8 266 1.5%
- General &
Administrative 15 510 2.8% 15 510 2.9%
- Research &
Development 36 1,265 7.1% 36 1,265 7.1%
------ -------- ------ ------ -------- ------
59 2,041 11.4% 59 2,041 11.4%
------ -------- ------ ------ -------- ------
Operating Income (Loss) 20 699 3.9% 20 699 3.9%
Net Non-Operating Income
(Expenses) (8) (295) -1.6% (8) (295) -1.6%
------ -------- ------ ------ -------- ------
Income (loss) before
Income Tax 12 404 2.3% 12 404 2.3%
Income Tax (Expense)
Benefit - (1) 0.0% (0) (1) 0.0%
------ -------- ------ ------ -------- ------
Net Income (Loss) 12 403 2.3% 12 403 2.3%
====== ======== ====== ====== ======== ======
Earnings (loss) per
share 0.001 0.03 0.001 0.03
------ -------- ------ --------
Earnings (loss) per ADS
(2) 0.004 0.15 0.004 0.15
------ -------- ------ --------
Weighted Average Number
of Shares
Outstanding (in
millions) 14,727 14,727
-------- --------
---------------------------------------------------------------------
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2003 exchange rate of NT$ 34.76 per U.S. Dollar. All
figures are in ROC GAAP.
(2) 1 ADS equals 5 ordinary shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash
Flows
For The Three Months Ended March 31, 2003
Figures in Million of New Taiwan Dollars (NT$) and U.S.
Dollars (US$)
US$ NT$
------ -------
Cash flows from operating activities :
Net Income 12 403
Depreciation & Amortization 264 9,164
Bad debt expense 2 58
Long-term investment loss accounted for under the
equity method 3 124
Inventory loss 9 305
Gain on disposal of investments (3) (113)
Gain on disposal of property, plant and equipment (0) (2)
Exchange gain on long-term liabilities (0) (6)
Change in working capital & others (73) (2,484)
------ -------
Net cash provided from operating activities 214 7,449
Cash flows from investing activities :
Increase in short-term investments (10) (370)
Increase in long-term Investments (140) (4,862)
Proceeds from disposal of long-term investments 11 386
Acquisition of property, plant and equipment (81) (2,827)
Proceeds from disposal of property, plant and
equipment 4 150
Increase in Deposits-out (0) (7)
Increase in deferred expenses / other assets (3) (92)
------ -------
Net cash used in investing activities (219) (7,622)
Cash flows from financing activities :
Decrease in short-term loans (3) (100)
Decrease in long-term loans (53) (1,858)
Treasury stock (51) (1,778)
------ -------
Net cash used in financing activities (107) (3,736)
------ -------
Net decrease in cash and cash equivalents (112) (3,909)
------ -------
Cash and cash equivalents at beginning of period 1,797 62,479
Cash and cash equivalents at end of period 1,685 58,570
====== =======
----------------------------------------------------------------------
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2003 exchange rate of NT$ 34.76 per U.S. Dollar.
All figures are in ROC GAAP.