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 --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 firstquarter ended March 31,2020.All U.S. dollar figures cited in this press release are based on the exchange rate of NT$30.25against 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 2020was NT$5,586.8millionor US$184.7million,an increaseof 0.3%from NT$5,571.5 million or US$184.2 millionin the fourth quarter of 2019 and an increaseof 25.2%from NT$4,462.0million 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,2020 to discuss the Company's financial results for the first quarter of 2020.
Date: Wednesday,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
Date: Wednesday,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 statementsmayinclude 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 ratioin this press release. The non-GAAP free cash flow represents operating profit plus depreciation,amortizationandinterest 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 ofnon-GAAPfree 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 INCOMEFor the Three Months Ended Mar. 31,2020,Dec.31,and Mar. 31,2019Figures in Millions of U.S. dollars (USD) (1)Except for Per Share Amounts and Weighted AverageShares Outstanding
Three months ended
Mar. 31,2020
Dec. 31,2019
Mar. 31,2019
USD
USD
USDRevenue184.7
184.2
147.5Cost 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),net0.8
0.8
0.3
Operating profit29.7
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 period23.6
17.5
6.4
Other comprehensive income (loss)
Exchange differences on translation of foreign
operations(0.9)
(1.2)
2.2Profit (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
0.1Income tax effect0.2
(0.0)
0.2Total other comprehensive income (loss)(1.8)
(1.0)
1.5
Total comprehensive income21.8
16.5
7.9
Profit attributable to the Company – basic23.6
17.5
6.4Earnings per share attributable to the Company
– basic0.03
0.02
0.01Earnings per ADS equivalent – basic0.65
0.48
0.18Weighted average shares outstanding (in
thousands) – basic727,240
727,240
726,925Profit attributable to the Company – diluted23.6
17.5
6.4Earnings per share attributable to the Company
– diluted0.03
0.02
0.01Earnings per ADS equivalent – diluted0.64
0.48
0.18Weighted average shares outstanding (in
thousands) – diluted731,001
729,443
728,302Note:(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 INCOMEFor the Three Months Ended Mar. 31,2019Figures in Millions of NT dollars (NTD)Except for Per Share Amounts and Weighted AverageShares Outstanding
Three months ended
Mar. 31,2019
NTD
NTD
NTDRevenue5,586.8
5,571.5
4,462.0Cost 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),net25.3
25.7
10.4
Operating profit900.1
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 period712.7
530.0
193.7Other comprehensive income (loss)
Exchange differences on translation of foreign
operations(27.4)
(34.9)
68.1Profit (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
1.9Income tax effect5.1
(0.8)
6.3Total other comprehensive income (loss)(53.5)
(29.7)
44.8
Total comprehensive income 659.2
500.3
238.5
Profit attributable to the Company – basic712.7
530.0
193.7Earnings per share attributable to the Company –
basic0.98
0.73
0.27Earnings per ADS equivalent – basic19.60
14.58
5.33Weighted average shares outstanding (in
thousands) – basic727,925Profit attributable to the Company – diluted712.7
530.0
193.7Earnings per share attributable to the
Company – diluted0.97
0.73
0.27Earnings per ADS equivalent – diluted19.50
14.53
5.32Weighted average shares outstanding (in
thousands) – diluted731,302ChipMOS TECHNOLOGIES INC.UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs of Mar. 31,Dec. 31,2019Figures in Millions of U.S. dollars (USD) (1)
Mar. 31,2019ASSETSUSD
USD
USDCurrent assets
Cash and cash equivalents248.3
155.5
167.6Current financial assets at fair value through profit
or loss5.0
-
-Current financial assets at amortized cost5.6
5.6
5.7Accounts and notes receivable,net156.1
147.3
135.5Inventories76.7
58.4
55.1Other current assets22.1
22.0
20.2Total current assets513.8
388.8
384.1
Non-current assets
Non-current financial assets at fair value through
profit or loss0.4
0.4
0.4Non-current financial assets at fair value through
other comprehensive income3.2
4.0
4.7Non-current financial assets at amortized cost2.3
2.3
3.3Investments accounted for using equity method110.3
112.2
128.4Property,plant & equipment599.1
594.4
546.3Right-of-use assets26.5
22.7
29.4Other non-current assets8.3
9.3
11.6Total non-current assets750.1
745.3
724.1Total assets1,263.9
1,134.1
1,108.2
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities
Short-term bank loans-
-
9.9Accounts payable and payables to contractors and
equipment suppliers 45.8
59.3
41.5Current lease liabilities1.9
0.8
1.3Long-term bank loans,current portion24.7
24.8
24.8Other current liabilities76.7
77.2
72.1Total current liabilities149.1
162.1
149.6
Non-current liabilities
Long-term bank loans390.6
274.1
299.0Non-current lease liabilities24.9
22.1
27.6Other non-current liabilities27.9
26.2
26.7Total non-current liabilities443.4
322.4
353.3Total liabilities592.5
484.5
502.9
EQUITY
Capital stock – common stock240.4
240.4
248.9Capital surplus200.3
200.3
207.6Retained earnings233.1
209.6
175.1Other equity interest(2.4)
(0.7)
5.5Treasury stock-
-
(31.8)Equity attributable to equity holders of the Company671.4
649.6
605.3Total equity671.4
649.6
605.3Total liabilities and equity 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 bein the future be,converted into US dollars at this or any other exchange rate.
ChipMOS TECHNOLOGIES INC.UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs of Mar. 31,2019Figures in Millions of NT dollars (NTD)
Mar. 31,2019ASSETSNTD
NTD
NTDCurrent assets
Cash and cash equivalents7,512.2
4,704.1
5,069.0Current financial assets at fair value through profit
or loss150.0
-
-Current financial assets at amortized cost170.5
169.0
171.2Accounts and notes receivable,net4,721.4
4,454.7
4,099.9Inventories2,318.9
1,767.7
1,667.0Other current assets670.1
666.9
612.3Total current assets15,543.1
11,762.4
11,619.4
Non-current assets
Non-current financial assets at fair value through
profit or loss10.9
11.0
11.7Non-current financial assets at fair value through
other comprehensive income96.0
121.8
142.8Non-current financial assets at amortized cost68.5
68.5
99.2Investments accounted for using equity method3,338.3
3,392.9
3,884.5Property,plant & equipment18,122.9
17,979.4
16,524.7Right-of-use assets802.4
687.1
888.9Other non-current assets252.0
282.8
352.5Total non-current assets22,691.0
22,543.5
21,904.3Total assets38,234.1
34,305.9
33,523.7
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities
Short-term bank loans-
-
300.0Accounts payable and payables to contractors and
equipment suppliers 1,386.4
1,792.3
1,256.2Current lease liabilities56.6
24.6
40.2Long-term bank loans,current portion748.1
748.4
748.1Other current liabilities2,319.7
2,336.4
2,180.8Total current liabilities4,510.8
4,901.7
4,525.3
Non-current liabilities
Long-term bank loans11,815.3
8,293.2
9,044.3Non-current lease liabilities753.1
668.4
835.0Other non-current liabilities844.4
791.4
808.8Total non-current liabilities13,412.8
9,753.0
10,688.1Total liabilities17,923.6
14,654.7
15,213.4
EQUITY
Capital stock – common stock7,272.4
7,528.3Capital surplus6,059.6
6,280.7Retained earnings7,051.7
6,339.0
5,298.3Other equity interest(73.2)
(19.8)
165.5Treasury stock-
-
(962.5)Equity attributable to equity holders of the Company20,310.5
19,651.2
18,310.3Total equity20,310.3Total liabilities and equity38,523.7RECONCILIATIONS 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
USD
USD
USDOperating profit29.7
29.7
10.5Add: Depreciation33.2
31.7
29.7 Interest income0.4
0.5
0.5Less: 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 flow18.3
(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. 31,2019
USD
USD
USDOperating profit29.7
29.7
10.5Add: Depreciation33.2
31.7
29.7Non-GAAP EBITDA62.9
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. 31,2019
USD
USD
USDShort-term bank loans-
-
9.9Long-term bank loans
(including current portion)415.3
298.9
323.8Lease liabilities
(including current portion)26.8
22.9
28.9Less: Cash and cash equivalents(248.3)
(155.5)
(167.6)Current financial assets at fair value through profit or loss(5.0)
-
-Net debt188.8
166.3
195.0Equity attributable to equity holders of the Company671.4
649.6
605.3Net debt to equity ratio28.1%
25.6%
32.2%Contacts:In TaiwanJesse HuangChipMOS TECHNOLOGIES INC.+886-6-5052388 ext. 7715IR@chipmos.comIn the U.S.David PasqualeGlobal IR Partners+1-914-337-8801dpasquale@globalirpartners.com
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