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Last updated on June 19, 2013 at 17:28 EDT

Siliconware Precision Industries Reports a 4.2% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ 0.51 or Earnings per ADS of US$ 0.09 for Fourth Quarter 2012

January 30, 2013

TAICHUNG, Taiwan, Jan. 30, 2013 /PRNewswire/ — Siliconware Precision Industries Co., Ltd. (“SPIL” or the “Company”) (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the fourth quarter of 2012 were NT$ 16,146 million, which represented a 4.2% decline in revenues compared to the third quarter of 2012 and a 2.8% growth in revenues compared to the fourth quarter of 2011. SPIL reported a net income of NT$ 1,560 million for the fourth quarter of 2012, compared with a net income of NT$ 1,699 million and a net income of NT$ 1,171 million for the third quarter of 2012 and the fourth quarter of 2011, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.51, and diluted earnings per ADS was US$ 0.09.

All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Operating results review:

  • For the fourth quarter of 2012, net revenues from IC packaging were NT$ 14,504 million and represented 90% of total net revenues. Net revenues from testing operations were NT$ 1,642 million and represented 10% of total net revenues.
  • Cost of goods sold was NT$ 13,100 million, representing a decrease of 3.2% compared to the third quarter of 2012 and a decrease of 0.7% compared to the fourth quarter of 2011.
    • Raw materials costs were NT$ 6,176 million for the fourth quarter of 2012 and represented 38.2% of total net revenues, whereas raw materials costs were NT$ 6,650 million and represented 39.5% of total net revenues for the third quarter of 2012.
    • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 31 million.
  • Gross profit was NT$ 3,046 million for the fourth quarter of 2012, representing a gross margin of 18.9%, which decreased from a gross margin of 19.7% for the third quarter of 2012 and was up from 16.0% for the fourth quarter of 2011.
  • Total operating expenses for the fourth quarter of 2012 were NT$ 1,436 million, which included selling expenses of NT$ 200 million, administrative expenses of NT$ 527 million and R&D expenses of NT$ 709 million. Total operating expenses represented 8.9% of total net revenues for the fourth quarter of 2012.
    • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 31 million.
  • Operating income was NT$ 1,610 million for the fourth quarter of 2012, representing an operating margin of 10.0%, which decreased from 11.3% for the third quarter of 2012 and increased from 8.5% for the fourth quarter of 2011.
  • Non-operating items:
    • Our net currency exchange gain of NT$ 203 million for the fourth quarter of 2012 was mainly due to depreciation of foreign currency denominated liabilities as a result of a depreciation in the foreign currency exchange rate of the US dollar and Japanese Yen against NT dollar, our reporting currency.
    • Our gains on disposal of investments of NT$ 213 million for the fourth quarter were from the sale of ChipMos Bermuda and AcSiP shares.
  • Net income before tax was NT$ 1,957 million for the fourth quarter of 2012, which decreased from a net income before tax of NT$ 1,997 million for the third quarter of 2012 and increased from a net income before tax of NT$ 1,431 million for the fourth quarter of 2011.
  • Income tax expense was NT$ 397 million for the fourth quarter of 2012, compared with income tax expense of NT$ 298 million for the third quarter of 2012 and income tax expense of NT$ 260 million for the fourth quarter of 2011.
  • Net income was NT$ 1,560 million for the fourth quarter of 2012, which decreased from a net income of NT$ 1,699 million for the third quarter of 2012 and increased from a net income of NT$ 1,171 million for the fourth quarter of 2011.
  • Total number of shares outstanding was 3,094 million shares as of Dec 31,2012. Diluted earnings per ordinary share for this quarter was NT$ 0.51, or US$ 0.09 per ADS.

Capital expenditure and balance sheet highlight:

  • Our cash balances totaled NT$ 15,858 million as of Dec 31, 2012 from NT$ 16,859 million as of Sept 30, 2012, and NT$ 15,942 million as of Dec 31, 2011.
  • Capital expenditures for the fourth quarter of 2012 totaled NT$ 5,298 million, which included NT$ 4,022 million for packaging equipment and NT$ 1,276 million for testing equipment.
  • Total depreciation expenses for the fourth quarter of 2012 totaled NT$ 2,502 million, which included NT$ 1,892 million was from packaging operations and NT$ 610 million from testing operations.

IC packaging service:

  • Net revenues from IC packaging operations were NT$ 14,504 million for the fourth quarter of 2012, which represented a decrease of NT$ 759 million or 5.0% compared to the third quarter of 2012.
  • Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 42%, 24% and 24%, respectively, of total net revenues for the fourth quarter of 2012.
  • Capital expenditures for IC packaging operations totaled NT$ 4,022 million for the fourth quarter of 2012, which included NT$ 3,272 million for packaging and building construction and NT$ 750 million for wafer bumping operations.
  • As of Dec 31, 2012 we had 7,805 wirebonders installed, of which 341 were added and 215 were disposed in the fourth quarter of 2012.

IC testing service:

  • Net revenues from testing operations were NT$ 1,642 million for the fourth quarter of 2012, which represented an increase of NT$ 59 million or 3.7% compared to the third quarter of 2012.
  • Capital expenditures for testing operations totaled NT$ 1,276 million for the fourth quarter of 2012.
  • As of Dec 31, 2012 we had 395 testers installed, of which 5 were added and 8 were disposed in the fourth quarter of 2012.

Revenue Analysis

  • Breakdown by end applications:
    By application 4Q12      3Q12
    ============== ====      ====
    Communication        53%       50%
    -------------       ---       ---
    Computing            14%       13%
    ---------           ---       ---
    Consumer             24%       28%
    --------            ---       ---
    Memory                9%        9%
    ------              ---       ---
  • Breakdown by packaging type:
    By packaging type             4Q12               3Q12
    =================             ====               ====
    Bumping & Flip Chip                          24%                 24%
    -------------------                         ---                 ---
    Substrate Based                              42%                 42%
    ---------------                             ---                 ---
    Leadframe Based                              24%                 24%
    ---------------                             ---                 ---
    Testing                                      10%                 10%
    -------                                     ---                 ---

About SPIL

Siliconware Precision Industries Ltd. (“SPIL”)(NASDAQ:SPIL, Taiwan Stock Exchange:2325) is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers’ integrated circuit packaging and testing requirements, with turnkey solutions that range from design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, to shipment. Products include advanced leadframe, substrate packages, wafer bumping and FCBGA, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. For further information, visit SPIL’s web site at www.spil.com.tw.

Safe Harbor Statement

The information herein contains 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. We have based these forward-looking statements on our current expectation and projections about future events. Such forward-looking statements are inherently subject to known and unknown risks, uncertainties, assumptions about us and other factors that may cause the actual performance, financial condition or results of operations of SPIL 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:

  • the intensely competitive personal computer, communications, consumer ICs and non-commodity memory semiconductor industries and markets;
  • cyclical nature of the semiconductor industry;
  • risks associated with global business activities;
  • non-operating losses due to poor financial performance of some of our investments;
  • our dependence on key personnel;
  • general economic and political conditions;
  • possible disruptions in commercial activities caused by natural and human induced disaster, including terrorist activities and armed conflicts and contagious disease, such as the Severe Acute Respiratory Syndrome;
  • fluctuations in foreign currency exchange rates; and
  • other risks identified in our annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission each year.

The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

All financial figures discussed herein are prepared pursuant to ROC GAAP on a consolidated basis. The investment gains or losses of our company for the three months ended Dec 31, 2012 reflect our gains or losses attributable to the fourth quarter of 2012 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the consolidated financial data for our company for the three months ended Dec 31, 2012, nor the consolidated financial data for our company for the twelve months ended Dec 31, 2012 is necessarily indicative of the results that may be expected for any period thereafter.

                                                                                                  SILICONWARE PRECISION INDUSTRIES CO., LTD.
                                                                                                  ------------------------------------------
                                                                                                          CONSOLIDATED BALANCE SHEET
                                                                                                          --------------------------
                                                                                                         As of Dec 31, 2012 and 2011
                                                                                 (Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))

                                                                             Dec  31,2012                              Dec  31,2011                            Sequential
                                                                             ------------                              ------------                            ----------
                                                       ASSETS                     USD                                       NTD                       %                   NTD               %      Change              %
                                                       ------                     ---                                       ---                      ---                  ---              ---     ------             ---
    Cash and cash equivalent                                                               546,076                                 15,858,048               17                 15,941,600       19           (83,552)       -1
    Accounts receivable                                                                    444,893                                 12,919,685               14                 10,253,663       12         2,666,022        26
    Inventories                                                                            107,962                                  3,135,203                4                  3,985,115        5          (849,912)      -21
    Other current assets                                                                    64,433                                  1,871,134                2                  1,471,296        2           399,838        27
                                                                                                                                                           ---                                 ---
     Total current assets                                                                1,163,363                                 33,784,070               37                 31,651,674       38         2,132,396         7
                                                                                         ---------                                 ----------              ---                 ----------      ---         ---------       ---

    Long-term investments                                                                  196,870                                  5,717,112                6                  5,304,398        6           412,714         8
    Fixed assets                                                                         3,188,154                                 92,583,983              102                 85,324,141      102         7,259,842         9
    Less accumulated depreciation                                                       (1,470,225)                               (42,695,324)             -47                (41,179,337)     -49        (1,515,987)        4
                                                                                                                                                           ---                                 ---
     Net fixed assets                                                                    1,717,929                                 49,888,659               55                 44,144,804       53         5,743,855        13
                                                                                         ---------                                 ----------                                  ----------                  ---------       ---
    Other assets                                                                            63,052                                  1,831,032                2                  2,590,108        3          (759,076)      -29
                                                                                            ------                                                         ---                                 ---          --------       ---
    Total Assets                                                                         3,141,215                                 91,220,873              100                 83,690,984      100         7,529,889         9
    ============                                                                         =========                                 ==========              ===                 ==========      ===         =========       ===

                                        LIABILITIES AND STOCKHOLDERS' EQUITY
                                        ------------------------------------
                                                    Liabilities
                                                    -----------
    Short-term loans                                                                        85,000                                  2,468,400                3                  1,513,750        2           954,650        63
    Accounts payable                                                                       201,377                                  5,847,980                6                  6,404,096        8          (556,116)       -9
    Other current liability                                                                258,729                                  7,513,480                9                  6,964,527        9           548,953         8
    Current portion of long-term debt                                                      108,423                                  3,148,610                3                          -        -         3,148,610         -
    Long-term loans                                                                        414,538                                 12,038,181               13                  9,532,335       11         2,505,846        26
    Other liabilities                                                                       17,080                                    496,003                1                    481,406        -            14,597         3
    Total  Liabilities                                                                   1,085,146                                 31,512,654               35                 24,896,114       30         6,616,540        27
    ------------------                                                                   ---------                                 ----------              ---                 ----------      ---         ---------       ---

                                                Stockholders' Equity
                                                --------------------
    Capital stock                                                                        1,073,127                                 31,163,611               34                 31,163,611       37                 -         -
    Capital reserve                                                                        567,215                                 16,471,911               18                 16,453,527       19            18,384         -
    Legal reserve                                                                          263,286                                  7,645,816                8                  7,162,092        9           483,724         7
    Retained earnings                                                                      194,066                                  5,635,673                6                  4,871,009        6           764,664        16
    Unrealized gain or loss on financial instruments                                           (73)                                    (2,126)               -                    111,072        -          (113,198)     -102
    Cumulated translation adjustment                                                         4,074                                    118,305                -                    375,051        -          (256,746)      -68
    Net loss not recognized as pension cost                                                (12,424)                                  (360,783)               -                   (377,304)       -            16,521        -4
    Treasury Stock                                                                         (33,202)                                  (964,188)              -1                   (964,188)      -1                 -         -
    Total Equity                                                                         2,056,068                                 59,708,219               65                 58,794,870       70           913,349         2
    ------------                                                                         ---------                                 ----------              ---                 ----------      ---           -------       ---
    Total Liabilities & Shareholders' Equity                                             3,141,215                                 91,220,873              100                 83,690,984      100         7,529,889         9
    ========================================                                             =========                                 ==========              ===                 ==========      ===         =========       ===

    Forex ( NT$ per US$ )                                                                                                              29.040                                      30.275
                                                                                                                                       ------                                      ------
    (1)All figures are under ROC GAAP.
                                                                                                SILICONWARE  PRECISION  INDUSTRIES  CO.,  LTD.
                                                                                                ----------------------------------------------
                                                                                                        CONSOLIDATED INCOME STATEMENT
                                                                                                        -----------------------------

                                                                                 (Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
                                                        3 months ended on Dec 31                               Sequential Comparison
                                                        ------------------------                               ---------------------
                                                                 4Q2012                                               4Q 2011                                           YOY          4Q 2012                   3Q 2012                        QOQ
                                                             USD                     NTD                         %                                   NTD                    change %         NTD                          NTD                     change %
                                                             ---                     ---                        ---                                  ---                     -------          ---                          ---                      -------
    Revenues                                                        553,879                 16,145,575                100.0                                 15,709,747           2.8               16,145,575                     16,845,815           -4.2
    Cost of Goods Sold                                             (449,374)               (13,099,259)               -81.1                                (13,198,213)         -0.7              (13,099,259)                   (13,530,387)          -3.2
    Gross Profit                                                    104,505                  3,046,316                 18.9                                  2,511,534          21.3                3,046,316                      3,315,428           -8.1
                                                                    -------                  ---------                 ----                                  ---------          ----                ---------                      ---------           ----
    Operating Expenses
     Selling Expenses                                                (6,861)                  (199,990)                -1.2                                   (209,065)         -4.3                 (199,990)                      (218,377)          -8.4
     Administrative Expenses                                        (18,095)                  (527,463)                -3.3                                   (421,973)         25.0                 (527,463)                      (521,946)           1.1
     Research and Development Expenses                              (24,322)                  (709,000)                -4.4                                   (543,701)         30.4                 (709,000)                      (672,208)           5.5
                                                                                                                       ----                                                     ----                                                                    ---
                                                                    (49,278)                (1,436,453)                -8.9                                 (1,174,739)         22.3               (1,436,453)                    (1,412,531)           1.7
                                                                    -------                 ----------                 ----                                 ----------                             ----------                     ----------            ---
    Operating Income                                                 55,227                  1,609,863                 10.0                                  1,336,795          20.4                1,609,863                      1,902,897          -15.4
                                                                     ------                  ---------                 ----                                  ---------          ----                ---------                      ---------          -----

    Non-operating Income                                             16,749                    488,227                  3.0                                    154,440         216.1                  488,227                        228,885          113.3
    Non-operating Expenses                                           (4,855)                  (141,513)                -0.9                                    (60,345)        134.5                 (141,513)                      (134,922)           4.9
                                                                     ------                   --------                 ----                                    -------         -----                 --------                       --------            ---
    Income from Continuing Operations before Income Tax              67,121                  1,956,577                 12.1                                  1,430,890          36.7                1,956,577                      1,996,860           -2.0
    Income Tax Credit (Expenses)                                    (13,600)                  (396,428)                -2.5                                   (259,586)         52.7                 (396,428)                      (298,332)          32.9
                                                                    -------                   --------                 ----                                   --------                               --------                       --------           ----
    Net Income                                                       53,521                  1,560,149                  9.7                                  1,171,304          33.2                1,560,149                      1,698,528           -8.1
                                                                     ======                  =========                  ===                                  =========          ====                =========                      =========           ====

    Earnings Per Ordinary Share- Diluted                                          NT$    0.51                                                    NT$   0.38                                                             NT$   0.55
                                                                                 -----------                                                     ----------                                                            ----------

    Earnings Per ADS- Diluted                                                    US$    0.09                                                     US$   0.06                                                            US$    0.09
                                                                                 -----------                                                     ----------                                                            -----------
    Weighted Average Outstanding Shares - Diluted ('k)                                       3,094,241                                                       3,121,771                                                             3,091,809
                                                                                             ---------                                                       ---------                                                             ---------

    Forex ( NT$ per US$ )                                                                        29.15                                                           30.25                                                                 29.82
                                                                                                 -----                                                           -----                                                                 -----

    (1) All figures are under ROC GAAP.
    (2) 1 ADS is equivalent to 5 Common Shares.
                                                                        SILICONWARE PRECISION INDUSTRIES CO., LTD.
                                                                        ------------------------------------------
                                                                              CONSOLIDATED INCOME STATEMENT
                                                                              -----------------------------
                                                                   For the Twelve Months Ended on Dec 31, 2012 and 2011
                                                       (Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))

                                                                                 12 months ended on Dec 31, 2012 and 2011
                                                                                 ----------------------------------------
                                                                                              2012                                         2011     YOY
                                                                                              ----                                         ----
                                                                                  USD                              NTD                 %            NTD                Change %
                                                                                  ---                              ---                ---           ---                 -------
    Net Sales                                                                            2,186,401                        64,654,558      100.0            61,236,892       5.6
    Cost of Goods Sold                                                                  (1,788,072)                      (52,876,957)     -81.8           (51,746,475)      2.2
    Gross Profit                                                                           398,329                        11,777,601       18.2             9,490,417      24.1
                                                                                           -------                        ----------       ----             ---------      ----
    Operating Expenses
     Selling expenses                                                                      (26,956)                         (797,126)      -1.2              (730,532)      9.1
     Administrative expenses                                                               (66,977)                       (1,980,081)      -3.1            (1,668,317)     18.7
     Research and development expenses                                                     (86,424)                       (2,554,469)      -4.0            (2,001,417)     27.6
                                                                                                                          ----------       ----            ----------      ----
                                                                                          (180,357)                       (5,331,676)      -8.2            (4,400,266)     21.2
                                                                                          --------                                         ----                            ----
    Operating Income                                                                       217,972                         6,445,925       10.0             5,090,151      26.6
                                                                                           -------                         ---------       ----             ---------      ----

    Non-operating Income                                                                    33,783                           994,667        1.5               714,876      39.1
    Non-operating Expenses                                                                 (20,963)                         (619,794)      -1.0              (260,899)    137.6
                                                                                           -------                          --------       ----              --------     -----
    Income Before Income Tax                                                               230,792                         6,820,798       10.5             5,544,128      23.0
    Income Tax Credit (Expenses)                                                           (40,686)                       (1,201,196)      -1.9              (706,885)     69.9
                                                                                           -------                        ----------       ----              --------      ----
    Net Income                                                                             190,106                         5,619,602        8.7             4,837,243      16.2
    ==========                                                                             =======                         =========        ===             =========      ====

    Earnings Per Ordinary Share- Diluted                                                                       NT$   1.82                       NT$   1.55
                                                                                                               ----------                       ----------

    Earnings Per ADS- Diluted                                                                                  US$   0.31                       US$   0.26
                                                                                                               ----------                       ----------
    Weighted Average Outstanding Shares - Diluted ('k)                                                                     3,094,241                        3,121,771
                                                                                                                           ---------                        ---------

    Forex ( NT$ per US$)                                                                                                       29.56                            29.39
                                                                                                                               -----                            -----
    (1)All figures are under ROC GAAP.
    (2) 1 ADS is equivalent to 5 Common Shares.

                                                                                        SILICONWARE  PRECISION  INDUSTRIES  CO.,  LTD.
                                                                                        ----------------------------------------------
                                                                                           CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
                                                                                           -----------------------------------------
                                                                                         For 12 Months Ended on Dec 31, 2012 and 2011
                                                                          (Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))

                                                                                                                                      12 months, 2012       12 months, 2011
                                                                                                                                      ---------------       ---------------
                                                                                                                                            USD              NTD                NTD
                                                                                                                                            ---              ---                ---
    Cash Flows from Operating Activities:
    -------------------------------------
       Net income                                                                                                                                  193,512           5,619,602        4,837,243
       Depreciation                                                                                                                                327,554           9,512,173        9,086,334
       Amortization                                                                                                                                 20,255             588,200          559,571
       Change in working capital & others                                                                                                          (81,058)         (2,353,914)      (1,448,034)
                                                                                                                                                   -------          ----------       ----------
    Net cash flows provided from operating activities                                                                                              460,264          13,366,061       13,035,114
    -------------------------------------------------                                                                                                               ----------       ----------

    Cash Flows from Investing Activities:
    -------------------------------------
       Acquisition of property, plant, and equipment                                                                                              (521,429)        (15,142,292)     (10,982,303)
       Increase of financial asset carried at cost                                                                                                       -                   -         (490,000)
       Proceeds from disposal of equipments                                                                                                          3,886             112,838          603,472
       Payment for deferred charges/other changes                                                                                                  (29,027)           (842,957)      (1,034,507)
                                                                                                                                                                      --------       ----------
    Net cash used in investing activities                                                                                                         (546,571)        (15,872,411)     (11,903,338)
    -------------------------------------                                                                                                         --------         -----------      -----------

    Cash Flows from Financing Activities:
    -------------------------------------
       Increase of short-term loan                                                                                                                  35,368           1,027,075                -
       Increase of long-term loan                                                                                                                  205,005           5,953,356        5,000,000
       Cash dividends distributed to shareholders and cash bonus                                                                                  (150,523)         (4,371,188)      (5,048,478)
    distributed to employees
       Proceeds from the exercise of employee stock option /other charges                                                                           (3,071)            (89,184)        (875,664)
    Net cash provided from financing activities                                                                                                     86,779           2,520,059         (924,142)
    -------------------------------------------                                                                                                     ------           ---------         --------

    Foreign currency exchange effect                                                                                                                (3,349)            (97,261)         214,958
                                                                                                                                                                       -------          -------
    Net increase (decrease) in cash and cash equivalents                                                                                            (2,877)            (83,552)         422,592
                                                                                                                                                    ------             -------          -------
    Cash and cash equivalents at beginning of period                                                                                               548,953          15,941,600       15,519,008
                                                                                                                                                   -------
    Cash and cash equivalents at end of period                                                                                                     546,076          15,858,048       15,941,600
                                                                                                                                                   =======          ==========       ==========

    Forex ( NT$ per US$ )                                                                                                                                               29.040           30.275
                                                                                                                                                                        ------           ------

    (1) : All figures are under ROC GAAP.

Contact:

Siliconware Precision Industries Co., Ltd.
No.45, Jieh Show Rd.
Hsinchu Science Park, Hsinchu
Taiwan, 30056
www.spil.com.tw

Janet Chen, IR Director
janet@spil.com.tw
+886-3-5795678#3675

Byron Chiang, Spokesperson
byronc@spil.com.tw
+886-3-5795678#3671

SOURCE Siliconware Precision Industries Co., Ltd.


Source: PR Newswire