United Microelectronics Corporation Announces Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2015; Provides Revenue Guidance for the First Quarter of 2016 and Capex Guidance for the Year 2016; Reports Impairment Charges on Financial Assets for the Fourth Quarter Ended December 31, 2015
January 27, 2016 at 02:59 pm IST
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United Microelectronics Corporation announced consolidated earnings results for the fourth quarter and year ended December 31, 2015. For the quarter, the company reported net operating revenues of TWD 33,849 million compared with TWD 37,235 million for the same period a year ago. Operating income was TWD 1,880 million compared with TWD 4,532 million for the same period a year ago. Income from continuing operations before income tax was TWD 2,786 million compared with TWD 5,375 million for the same period a year ago. Net income attributable to stockholders of the parent was TWD 3,160 million or TWD 0.25 per basic share and TWD 1.25 per ADS compared with TWD 4,563 million or TWD 0.36 per basic share and TWD 1.80 per ADS for the same period a year ago. Cash flow from operating activities was TWD 15,428 million. Capital expenditures were TWD 13,350 million. Net cash inflow for the fourth quarter of 2015 was TWD 1.15 billion. UMC's foundry revenue declined 4.2% sequentially to TWD 33.59 billion, due to continued inventory correction within the semiconductor industry.
For the year, the company reported net operating revenues of TWD 144,830 million compared with TWD 140,012 million for the same period a year ago. Operating income was TWD 10,836 million compared with TWD 10,076 million for the same period a year ago. Net income attributable to stockholders of the parent was TWD 13,449 million or TWD 1.08 per basic share and TWD 0.165 per ADS compared with TWD 12,141 million or TWD 0.97 per basic share and TWD 0.148 per ADS for the same period a year ago. Income from continuing operations before income tax was TWD 13,712 million. Net cash provided by operating activities of TWD 60,043 million. Acquisition of property, plant and equipment was TWD 60,504 million. Acquisition of intangible assets was TWD 1,088 million.
The company has budgeted 2016 capex at approximately USD 2.2 billion, which will mainly focus on adding 300mm capacity. The company expects gross profit margin to be in high teens % range.
For the first quarter of 2016, the company's expects foundry revenue to remain flat.
For the quarter, the company recorded an impairment charge on financial assets of TWD 22 million.
United Microelectronics Corp is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments. The Wafer Fabrication segment is mainly engaged in the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The New Business segment is engaged in the research, development, manufacture and provision of solar energy. The Company is engaged in the maintenance of a customer base across various industries, including communication, consumer electronics, computer, memory, new generation light-emitting diode (LED) and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.
United Microelectronics Corporation Announces Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2015; Provides Revenue Guidance for the First Quarter of 2016 and Capex Guidance for the Year 2016; Reports Impairment Charges on Financial Assets for the Fourth Quarter Ended December 31, 2015