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Siliconware Precision Industries Reports a 1.9% Quarter-over-Quarter Growth in Revenues Resulting in Earnings per Share of NT$ 0.36 or Earnings per ADS of US$ 0.06 for Second Quarter 2011TAICHUNG, Taiwan, July 27, 2011 /PRNewswire via COMTEX/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the second quarter of 2011 were NT$ 14,735 million, which represented a 1.9% growth in revenues compared to the first quarter of 2011 and a 10.1% decline in revenues compared to the second quarter of 2010. SPIL reported a net income of NT$ 1,125 million for the second quarter of 2011, compared with a net income of NT$ 1,070 million and a net income of NT$ 1,510 million for the first quarter of 2011 and the second quarter of 2010, respectively. Diluted earnings per ordinary share for this quarter was NT$ 0.36, and diluted earnings per ADS was US$ 0.06. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis. Operating results review: For the second quarter of 2011, net revenues from IC packaging were NT$ 13,449 million and represented 91% of total net revenues. Net revenues from testing operations were NT$ 1,286 million and represented 9% of total net revenues. Cost of goods sold was NT$ 12,433 million, representing an increase of 1.3% compared to the first quarter of 2011 and a decrease of 8.7% compared to the second quarter of 2010. Raw materials costs were NT$ 6,570 million for the second quarter of 2011, and represented 44.6% of total net revenues, whereas raw materials costs were NT$ 6,466 million and represented 44.7% of total net revenues for the first quarter of 2011. The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 88 million. Gross profit was NT$ 2,302 million for the second quarter of 2011, representing a gross margin of 15.6%, which increased from a gross margin of 15.2% for the first quarter of 2011 and was down from 16.9% for the second quarter of 2010. Total operating expenses for the second quarter of 2011 were NT$ 1,074 million, which included selling expenses of NT$ 164 million, administrative expenses of NT$ 417 million and R&D expenses of NT$ 493 million. Total operating expenses represented 7.3% of total net revenues for the second quarter of 2011. The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 37 million. Operating income was NT$ 1,228 million for the second quarter of 2011, representing an operating margin of 8.3%, which increased from 8.2% for the first quarter of 2011 and decreased from 11.4% for the second quarter of 2010. Non-operating items: Our net currency exchange gain of NT$ 34 million for the second quarter of 2011 was mainly due to depreciation of our US dollar denominated liabilities as a result of a depreciation in the foreign currency exchange rate of the US dollar against NT dollar, our reporting currency. Net income before tax was NT$ 1,268 million for the second quarter of 2011, which increased from a net income before tax of NT$ 1,217 million for the first quarter of 2011 and decreased from a net income before tax of NT$ 1,944 million for the second quarter of 2010. Income tax expense was NT$ 143 million for the second quarter of 2011, compared with income tax expense of NT$ 147 million for the first quarter of 2011 and income tax expense of NT$ 434 million for the second quarter of 2010. Net income was NT$ 1,125 million for the second quarter of 2011, which increased from a net income of NT$ 1,070 million for the first quarter of 2011 and decreased from a net income of NT$ 1,510 million for the second quarter of 2010. Total number of shares outstanding was 3,123 million shares as of June 30,2011. Diluted earnings per ordinary share for this quarter was NT$ 0.36, or US$ 0.06 per ADS. Capital expenditure and balance sheet highlight: Our cash balances totaled NT$ 14,267 million as of Jun 30, 2011 from NT$ 13,517 million as of Mar 31, 2011, and NT$ 21,128 million as of Jun 30, 2010. Capital expenditures for the second quarter of 2011 totaled NT$ 2,560 million, which included NT$ 1,477 million for packaging equipment and NT$ 1,083 million for testing equipment. Total depreciation expenses for the second quarter of 2011 totaled NT$ 2,235 million, which included NT$ 1,707 million was from packaging operations and NT$ 528 million from testing operations. IC packaging service: Net revenues from IC packaging operations were NT$ 13,449 million for the second quarter of 2011, which represented an increase of NT$ 268 million or 1.9% compared to the first quarter of 2011. Substrate-based packaging, leadframe-based packaging and wafer bumping & FCBGA accounted for 41%, 30% and 20%, respectively, of total net revenues for the second quarter of 2011. Capital expenditures for IC packaging operations totaled NT$ 1,477 million for the second quarter of 2011, which included NT$ 1,459 million for packaging and building construction and NT$ 18 million for wafer bumping operations. As of June 30, 2011 we had 6,710 wirebonders installed, of which 372 were added and 67 were disposed in the second quarter of 2011. IC testing service: Net revenues from testing operations were NT$ 1,286 million for the second quarter of 2011, which was flat compared to the first quarter of 2011. Capital expenditures for testing operations totaled NT$ 1,083 million for the second quarter of 2011. As of June 30, 2011 we had 346 testers installed, of which 15 were added and 2 were disposed in the second quarter of 2011. Revenue Analysis > Breakdown by end applications: By application 2Q11 1Q11 Computing 15% 15% -------------- ---- ---- Communication 54% 51% -------------- ---- ---- Consumer 17% 18% -------------- ---- ---- Memory 14% 16% -------------- ---- ---- > Breakdown by packaging type: By packaging type 2Q11 1Q11 Bumping & FCBGA 20% 20% ----------------- ---- ---- Substrate Based 41% 40% ----------------- ---- ---- Leadframe Based 30% 31% ----------------- ---- ---- Testing 9% 9% ----------------- ---- ---- 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 an unaudited consolidated basis. Audited consolidated financial figures will be publicly announced upon the completion of our audit process. The investment gains or losses of our company for the three months ended Jun 30, 2011 reflect our gains or losses attributable to the second quarter of 2011 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the unaudited consolidated financial data for our company for the three months ended June 30, 2011, nor the unaudited consolidated financial data for our company for the six months ended June 30 2011 is necessarily indicative of the results that may be expected for any period thereafter. SILICONWARE PRECISION INDUSTRIES CO., LTD. CONSOLIDATED BALANCE SHEET As of Jun 30, 2011 and 2010 (Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) Jun 30,2011 Jun 30,2010 Sequential ASSETS USD NTD % NTD % Change % ------------------------------------------------ ----------- ------------ ------ ------------ ------ ----------- ------ Cash and cash equivalent 496,578 14,266,673 17 21,128,392 25 (6,861,719) -32 Accounts receivable 354,888 10,195,921 12 11,455,323 14 (1,259,402) -11 Inventories 134,861 3,874,545 5 3,370,974 4 503,571 15 Other current assets 59,246 1,702,137 2 2,662,478 3 (960,341) -36 ------ ------ Total current assets 1,045,572 30,039,276 36 38,617,167 46 (8,577,891) -22 ----------- ------------ ------ ------------ ------ ----------- ------ Long-term investments 237,114 6,812,279 8 5,447,859 6 1,364,420 25 Fixed assets 2,905,264 83,468,227 100 73,632,849 88 9,835,378 13 Less accumulated depreciation (1,369,283) (39,339,499) -47 (35,506,415) -42 (3,833,084) 11 ------ ------ Net fixed assets 1,535,981 44,128,728 53 38,126,434 46 6,002,294 16 ----------- ------------ ------------ ----------- ------ Other assets 89,976 2,585,006 3 1,595,020 2 989,986 62 ------ ------ ----------- ------ Total Assets 2,908,642 83,565,289 100 83,786,480 100 (221,191) - LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------------------ Liabilities ------------------------------------------------ Short-term loans 49,991 1,436,250 2 46,610 - 1,389,640 2981 Accounts payable 233,124 6,697,652 8 7,990,665 10 (1,293,013) -16 Other current liability 436,574 12,542,775 15 17,068,519 20 (4,525,744) -27 Long-term loans 149,958 4,308,285 5 - - 4,308,285 - Other liabilities 12,150 349,068 - 59,812 - 289,256 484 Total Liabilities 881,797 25,334,030 30 25,165,606 30 168,424 1 ------------------------------------------------ ----------- ------------ ------ ------------ ------ ----------- ------ Stockholders' Equity ------------------------------------------------ Capital stock 1,084,706 31,163,611 37 31,163,611 37 - - Capital reserve 572,695 16,453,527 19 16,453,527 19 - - Legal reserve 249,290 7,162,092 9 6,599,402 8 562,690 9 Retained earnings 77,564 2,228,415 3 3,041,311 4 (812,896) -27 Unrealized gain or loss on financial instruments 54,043 1,552,652 2 1,103,114 1 449,538 41 Cumulated translation adjustment (2,105) (60,470) - 259,909 1 (320,379) -123 Net loss not recognized as pension cost (9,348) (268,568) - - - (268,568) - Total Equity 2,026,845 58,231,259 70 58,620,874 70 (389,615) -1 ------------------------------------------------ ----------- ------------ ------ ------------ ------ ----------- ------ Total Liabilities & Shareholders' Equity 2,908,642 83,565,289 100 83,786,480 100 (221,191) - Forex ( NT$ per US$ ) 28.73 32.15 ------------ ------------ (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 June 30 Sequential Comparison ----------------------------------------------------- ------------------------------------ 2Q2011 2Q 2010 YOY 2Q 2011 1Q 2011 QOQ USD NTD % NTD change % NTD NTD change % --------- ------------ ----- ------------ -------- ------------ ------------ -------- Revenues 511,117 14,735,496 100.0 16,386,717 -10.1 14,735,496 14,467,119 1.9 Cost of Goods Sold (431,273) (12,433,589) -84.4 (13,612,376) -8.7 (12,433,589) (12,272,202) 1.3 Gross Profit 79,844 2,301,907 15.6 2,774,341 -17.0 2,301,907 2,194,917 4.9 --------- ------------ ----- ------------ -------- ------------ ------------ -------- Operating Expenses Selling Expenses (5,705) (164,488) -1.1 (169,877) -3.2 (164,488) (161,037) 2.1 Administrative Expenses (14,451) (416,630) -2.8 (362,137) 15.0 (416,630) (398,952) 4.4 Research and Development Expenses (17,108) (493,211) -3.3 (373,912) 31.9 (493,211) (455,711) 8.2 ----- -------- -------- (37,264) (1,074,329) -7.3 (905,926) 18.6 (1,074,329) (1,015,700) 5.8 --------- ------------ ----- ------------ ------------ ------------ -------- Operating Income 42,580 1,227,578 8.3 1,868,415 -34.3 1,227,578 1,179,217 4.1 --------- ------------ ----- ------------ -------- ------------ ------------ -------- Non-operating Income 2,783 80,242 0.5 204,319 -60.7 80,242 106,323 -24.5 Non-operating Expenses (1,402) (40,411) -0.3 (128,837) -68.6 (40,411) (68,324) -40.9 --------- ------------ ----- ------------ -------- ------------ ------------ -------- Income from Continuing Operations before Income Tax 43,961 1,267,409 8.6 1,943,897 -34.8 1,267,409 1,217,216 4.1 Income Tax Credit (Expenses) (4,954) (142,828) -1.0 (434,251) -67.1 (142,828) (147,148) -2.9 ------------ ----- ------------ ------------ ------------ -------- Net Income 39,007 1,124,581 7.6 1,509,646 -25.5 1,124,581 1,070,068 5.1 Earnings Per Ordinary Share- Diluted NT$ 0.36 NT$ 0.48 NT$ 0.34 ------------ ------------ ------------ Earnings Per ADS- Diluted US$ 0.06 US$ 0.08 US$ 0.06 ------------ ------------ ------------ Weighted Average Outstanding Shares - Diluted ('k) 3,122,858 3,126,262 3,135,441 ------------ ------------ ------------ Forex ( NT$ per US$ ) 28.83 31.86 29.31 ------------ ------------ ------------ (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 Six Months Ended on June 30, 2011 and 2010 (Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) 6 months ended on June 30, 2011 and 2010 ------------------------------------------------------- 2011 2010 YOY ------------------------------- ------------ USD NTD % NTD Change % --------- ------------ -------- ------------ -------- Net Sales 1,012,925 29,202,615 100.0 32,075,232 -9.0 Cost of Goods Sold (856,947) (24,705,791) -84.6 (26,787,610) -7.8 Gross Profit 155,977 4,496,824 15.4 5,287,622 -15.0 --------- ------------ -------- ------------ -------- Operating Expenses Selling expenses (11,291) (325,525) -1.1 (300,771) 8.2 Administrative expenses (28,289) (815,582) -2.8 (700,474) 16.4 Research and development expenses (32,914) (948,922) -3.2 (701,650) 35.2 ------------ -------- ------------ -------- (72,495) (2,090,029) -7.2 (1,702,895) 22.7 --------- -------- -------- Operating Income 83,482 2,406,795 8.2 3,584,727 -32.9 --------- ------------ -------- ------------ -------- Non-operating Income 6,471 186,564 0.6 287,723 -35.2 Non-operating Expenses (3,772) (108,734) -0.4 (155,736) -30.2 --------- ------------ -------- ------------ -------- Income Before Income Tax 86,182 2,484,625 8.5 3,716,714 -33.1 Income Tax Credit (Expenses) (10,058) (289,976) -1.0 (693,457) -58.2 --------- ------------ -------- ------------ -------- Net Income 76,124 2,194,649 7.5 3,023,257 -27.4 Earnings Per Ordinary Share- Diluted NT$ 0.70 NT$ 0.97 ------------ ------------ Earnings Per ADS- Diluted US$ 0.12 US$ 0.15 ------------ ------------ Weighted Average Outstanding Shares - Diluted ('k) 3,122,858 3,126,262 ------------ ------------ Forex ( NT$ per US$) 28.83 31.86 ------------ ------------ (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 6 Months Ended on Jun 30, 2011 and 2010 (Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) 6 months, 2011 6 months, 2010 USD NTD NTD ---------- ----------- -------------- Cash Flows from Operating Activities: ------------------------------------------------------------------ Net income 76,389 2,194,649 3,023,257 Depreciation 154,683 4,444,029 4,163,316 Amortization 9,739 279,812 212,995 Change in working capital & others (60,962) (1,751,435) (472,783) ---------- ----------- -------------- Net cash flows provided from operating activities 179,849 5,167,055 6,926,785 ------------------------------------------------------------------ ----------- -------------- Cash Flows from Investing Activities: ------------------------------------------------------------------ Acquisition of property, plant, and equipment (201,626) (5,792,720) (4,908,814) Increase of financial asset carried at cost (17,055) (490,000) (923,950) Proceeds from disposal of equipments 17,789 511,065 947,492 Payment for deferred charges/other changes (28,413) (816,294) (387,197) ----------- -------------- Net cash used in investing activities (229,306) (6,587,949) (5,272,469) ------------------------------------------------------------------ ---------- ----------- -------------- Cash Flows from Financing Activities: ------------------------------------------------------------------ Repayment for short-term loan - - (181,531) Proceeds from the exercise of employee stock option /other charges 5,739 164,886 20,591 Net cash provided from financing activities 5,739 164,886 (160,940) ------------------------------------------------------------------ ---------- ----------- -------------- Foreign currency exchange effect 128 3,673 19,855 ---------- ----------- -------------- Net increase (decrease) in cash and cash equivalents (43,590) (1,252,335) 1,513,231 ---------- ----------- -------------- Cash and cash equivalents at beginning of period 540,167 15,519,008 19,615,161 ---------- Cash and cash equivalents at end of period 496,578 14,266,673 21,128,392 Forex ( NT$ per US$ ) 28.73 32.15 ----------- -------------- (1) : All figures are under ROC GAAP. Contact: Siliconware Precision Industries Co., Ltd.No.45, Jieh Show Rd. Hsinchu Science Park, Hsinchu Taiwan, 30056www.spil.com.tw Janet Chen, IR [email protected]+886-3-5795678#3675Byron Chiang, [email protected]+886-3-5795678#3671 SOURCE Siliconware Precision Industries Co Ltd |