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ChipMOS REPORTS FIRST QUARTER 2013 RESULTS

IMOS
ChipMOS REPORTS FIRST QUARTER 2013 RESULTS

HSINCHU, Taiwan, May 16, 2013 /PRNewswire-FirstCall/ --  

1Q13 Highlights (as compared to 4Q12):

  • Net Revenue Decreased 9.2% to US$148.3 Million from US$163.3 Million
  • Gross Profit Decreased to US$20.7 Million from US$25.8 Million
  • Gross Margin Declined to 13.9% from 15.8%
  • Net Earnings of US$0.42 Per Basic and US$0.41 Per Diluted Share Compared to US$0.26 Per Basic and US$0.25 Per Diluted Share
  • Generated US$17.3 Million of Free Cash Flow after US$20.0 Million of CapEx
  • Retained Balance of Cash and Cash Equivalents at US$310.4 Million
  • Total Debt Reduced to US$277.6 Million With Net Cash of US$32.8 Million

ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (Nasdaq: IMOS) today reported unaudited consolidated financial results for the first quarter ended March 31, 2013. All U.S. dollar figures in this release are based on the exchange rate of NT$29.81 against US$1.00 as of March 29, 2013.

Net revenue for the first quarter of 2013 was NT$4,420.7 million or US$148.3 million, an increase of 0.8% from NT$4,384.0 million or US$147.1 million for the same period in 2012 and a decrease of 9.2% from NT$4,867.4 million or US$163.3 million in the fourth quarter of 2012.  The revenue decline in the quarter was less severe than implied by the Company's guidance that revenue in the first quarter of 2013 would be lower by approximately 9% to 13%, as compared to the fourth quarter of 2012.

Net income for the first quarter of 2013 was NT$363.6 million or US$12.2 million, and NT$12.58 or US$0.42 per basic common share and NT$12.31 or US$0.41 per diluted common share, as compared to net loss for the first quarter of 2012 of NT$169.1 million or US$5.7 million, and NT$6.26 or US$0.21 per basic and diluted common share.

The unaudited consolidated financial results of ChipMOS for the first quarter ended March 31, 2013 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS U.S.A., Inc., ThaiLin Semiconductor Corp. ("ThaiLin") and MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "First quarter revenue and gross margin came in at the high-end of prior guidance.  We delivered a 64% improvement in net earnings per diluted share, and drove further balance sheet improvements. Results reflect the strength of our underlying business, and favorable customer and product mix, as we were able to improve our overall utilization rate to 75% and lessen the impact of typical seasonality related to Chinese New Year and normal customer demand patterns.  Finally, shares of our subsidiary, ChipMOS Taiwan, commenced trading on Taiwan's emerging stock board of Gre Tai Securities Market under stock code 8150 on April 19, 2013. We will continue to work towards satisfying the eligibility requirements for listing ChipMOS Taiwan onto the Taiwan Stock Exchange ("TSE") in the second quarter of 2014."   

S.K. Chen, Chief Financial Officer of ChipMOS, said, "We exited the first quarter with a strong balance of cash and cash equivalents at US$310.4 million, with free cash flow of US$17.3 million in Q1 2013 after CapEx of US$20.0 million in the quarter.  This allowed us to further reduce our total debt by another US$35.6 million to US$277.6 million, which in turn improved our net debt to equity ratio to -8.1% as of March 31, 2013 from 0.1% in Q4 2012.  We are encouraged by our return to a net positive cash balance and remain committed to sustaining this important level.  Our overall blended utilization improved to 75% in the first quarter, as we continued to meet customer capacity demands, while focusing on our objective of regaining greater profitability. We are confident that we are winning by prudently adding the right capacity in support of specific customer programs, as we focus on mutually growing in higher margin segments with the greatest growth potential."


Selected Operation Data







1Q13

4Q12

Revenue by segment



   Testing

25%

29%

   Assembly

32%

31%

   LCD Driver 

24%

24%

Bumping

19%

16%




Utilization by segment



   Testing

62%

68%

   Assembly

81%

69%

   LCD Driver

75%

81%

Bumping

83%

81%

   Overall

75%

74%




CapEx

US$20.0 million

US$20.1 million

   Testing

22%

23%

   Assembly

27%

15%

LCD Driver

45%

21%

   Bumping

6%

41%




Depreciation and amortization expenses

US$30.7 million

US$32.4 million


Condensed consolidated statements of cash flows


Period ended

Mar. 31, 2013


Period ended

Mar. 31, 2012



US$ million


US$ million

Net cash generated from (used in) operating activities


48.4


40.3

Net cash generated from (used in) investing activities


(20.9)


(15.1)

Net cash generated from (used in) financing activities


(34.8)


(16.1)

Effect of exchange rate changes on cash


5.1


(4.1)

Net increase (decrease) in cash and cash equivalents


(2.2)


5.0

Cash and cash equivalents at beginning of period


312.6


246.8

Cash and cash equivalents at end of period


310.4


251.8

According to the Rule No. 0990004943 issued by the Financial Supervisory Commission ("FSC") on February 2, 2010, companies with shares listed on the Taiwan Stock Exchange or traded on the Gre Tai Securities Market or emerging stock board need to prepare their consolidated financial statements in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards ("IFRSs"), International Accounting Standards, interpretations as well as related guidance translated by Accounting Research and Development Foundation and issued by the FSC for the year ending December 31, 2013. Therefore, the Company is following its listed subsidiary, ThaiLin, and will prepare its consolidated financial statements for the year ending December 31, 2013 in accordance with IFRSs. The unaudited financial information for this quarter is prepared in accordance with IFRSs. The comparative figures have been restated in accordance with IFRSs for better comparison.

Taiwan Listing Update

ChipMOS Bermuda sold an 0.8% interest in ChipMOS Taiwan, as the Company announced on April 18, 2013, following the subsidiary's listing application on Taiwan's emerging stock board of the Gre Tai Securities Market.  The share sale was made to transfer shares to ChipMOS Taiwan's listing underwriters, as required by the listing engagement and application, and to also allow ChipMOS Taiwan to provide equity incentive to its non-U.S. employees. 

As part of ChipMOS Taiwan's efforts in ensuring success in establishing its eligibility for listing on the TSE, ChipMOS Bermuda will be required to reduce its current ownership interest of 83.4% in ChipMOS Taiwan to 70% or less.  The Company continues to work towards satisfying the eligibility requirements for listing ChipMOS Taiwan onto the TSE in the second quarter of 2014.

Second Quarter 2013 Outlook

The Company expects revenue for second quarter of 2013 to increase by approximately 10% to 14%, as compared to the first quarter of 2013.  The Company expects gross margin on a consolidated basis to be in the range of approximately 14% to 18% for the second quarter of 2013.  The Company anticipates depreciation and amortization expenses for the second quarter of 2013 to be approximately US$29 million.  Operating expenses are expected to be approximately 6% to 7% of revenues in the second quarter of 2013.  The Company expects CapEx spending to be approximately US$32 million in the second quarter of 2013, with CapEx spending for the full year 2013 to be approximately US$100 million.  Common shares at the end of the second quarter of 2013 are expected to be approximately 29 million.

Mr. Cheng continued, "We expect a further improvement in demand across the board as we move through 2013 and remain confident in our outlook for the year.  We continue to gain visibility as our customers become more certain in their operating plans for 2013."

Investor Conference Call / Webcast Details

ChipMOS will review detailed first quarter 2013 results on Thursday, May 16, 2013 at 8:00AM EDT (8:00PM, May 16, Taiwan time). The conference call-in number is +1-201-689-8562.  A live webcast of the conference call will be available at ChipMOS' website at http://www.chipmos.com.  The playback is scheduled to be available in 2 hours after the conclusion of the conference call and will be accessible by dialing +1-858-384-5517, with confirmation ID number 412908.

About ChipMOS TECHNOLOGIES (Bermuda) LTD.:

ChipMOS (http://www.chipmos.com) is a leading independent provider of semiconductor testing and assembly services to customers in Taiwan, Japan, and the U.S. With advanced facilities in Hsinchu and Southern Taiwan Science Parks in Taiwan and Shanghai, ChipMOS and its subsidiaries provide testing and assembly services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.

Forward-Looking Statements

Certain statements contained in this announcement may be viewed as "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is 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.

- FINANCIAL TABLES FOLLOW BELOW -



ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended Mar. 31, 2013, Dec. 31, 2012 and Mar. 31, 2012

Figures in Million of U.S. dollars (USD) (1)

Except for Per Share Amounts and Shares Outstanding



3 months ended


Mar. 31, 2013


Dec. 31, 2012


Mar. 31, 2012


USD


USD


USD

Net Revenue

148.3


163.3


147.1

Cost of Revenue

127.6


137.5


138.7

Gross Profit

20.7


25.8


8.4







Other Income

3.8


0.7


1.0

Operating Expenses






Research and Development

4.1


4.1


4.4

Sales and Marketing

0.8


0.7


0.7

General and Administrative

4.7


5.4


5.4

Other Operating Expenses

0.1


0.2


1.0

Total Operating Expenses

9.7


10.4


11.5







Income (Loss) from Operations

14.8


16.1


(2.1)







Non-Operating Income (Expenses), Net

4.1


(5.4)


(6.1)







Income (Loss) before Income Tax

18.9


10.7


(8.2)







Income Tax Benefit (Expense)

(3.4)


(3.0)


0.3







Net Income (Loss)

15.5


7.7


(7.9)







Add: Net Loss (Income) Attributable to Non-controlling

   Interests

(3.3)


(0.5)


2.2







Net Income (Loss) Attributable to ChipMOS - Basic

12.2


7.2


(5.7)







Other Comprehensive Income (Loss)






Exchange Differences on Translating Foreign Operations

0.4


(0.0)


(0.4)







Total Other Comprehensive Income (Loss)

0.4


(0.0)


(0.4)







Total Comprehensive Income (Loss)

12.6


7.2


(6.1)







Earnings (Loss) Per Share Attributable to ChipMOS - Basic

0.42


0.26


(0.21)

Shares Outstanding (in thousands) - Basic

28,893


28,236


27,030

Net Income (Loss) Attributable to ChipMOS -Diluted

12.2


7.2


(5.7)

Earnings (Loss) Per Share Attributable to ChipMOS -Diluted

0.41


0.25


(0.21)

Shares Outstanding (in thousands) - Diluted

29,542


28,977


27,030







Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.81 against US$1.00 as of Mar. 29, 2013. 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 (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended Mar. 31, 2013, Dec. 31, 2012 and Mar. 31, 2012

Figures in Million of NT dollars (NTD)

Except for Per Share Amounts and Shares Outstanding



3 months ended


Mar. 31, 2013


Dec. 31, 2012


Mar. 31, 2012


NTD


NTD


NTD

Net Revenue                                                                                              

4,420.7


4,867.4


4,384.0

Cost of Revenue

3,804.9


4,098.2


4,134.7

Gross Profit

615.8


769.2


249.3







Other Income

114.6


22.3


30.0

Operating Expenses






Research and Development

123.7


123.0


132.6

Sales and Marketing

22.5


21.1


20.5

General and Administrative

141.4


161.1


161.5

Other Operating Expenses

1.4


6.2


29.7

Total Operating Expenses

289.0


311.4


344.3







Income (Loss) from Operations

441.4


480.1


(65.0)







Non-Operating Income (Expenses), Net 

121.3


(162.2)


(180.7)







Income (Loss) before Income Tax

562.7


317.9


(245.7)







Income Tax Benefit (Expense)

(101.5)


(87.4)


10.3







Net Income (Loss)

461.2


230.5


(235.4)







Add: Net Loss (Income) Attributable to Non-controlling 

  Interests

(97.6)


(15.6)


66.3







Net Income (Loss) Attributable to ChipMOS - Basic

363.6


214.9


(169.1)







Other Comprehensive Income (Loss)






Exchange Differences on Translating Foreign Operations

12.0


(0.2)


(11.0)







Total Other Comprehensive Income (Loss) 

12.0


(0.2)


(11.0)







Total Comprehensive Income (Loss)

375.6


214.7


(180.1)







Earnings (Loss) Per Share Attributable to ChipMOS - Basic

12.58


7.61


(6.26)

Shares Outstanding (in thousands) - Basic

28,893


28,236


27,030

Net Income (Loss) Attributable to ChipMOS -Diluted 

363.6


214.9


(169.1)

Earnings (Loss) Per Share Attributable to ChipMOS -Diluted

12.31


7.42


(6.26)

Shares Outstanding (in thousands) - Diluted

29,542


28,977


27,030







 

 



ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of Mar. 31, 2013, Dec. 31, 2012 and Mar. 31, 2012

Figures in Million of U.S. dollars (USD) (1)





Mar. 31, 2013


Dec. 31, 2012


Mar. 31, 2012

ASSETS

USD


USD


USD

Non-Current Assets






Long-Term Investments

0.4


0.4


1.3

Property, Plant & Equipment-Net

407.9


418.5


454.8

Other Non-Current Assets

20.9


23.8


29.3

Total Non-Current Assets

429.2


442.7


485.4

Current Assets






Cash and Cash Equivalents

310.4


312.6


251.8

Accounts and Notes Receivable

131.3


138.2


121.6

Inventories

58.2


56.6


55.0

Other Current Assets

14.4


15.5


12.3

Total Current Assets

514.3


522.9


440.7

Total Assets

943.5


965.6


926.1







EQUITY AND LIABILITIES






EQUITY






Shareholders' Equity






Issued Capital

1.3


1.3


1.3

Capital Surplus

386.5


386.0


509.5

Retained Earnings (Accumulated Losses)

23.2


11.0


(137.2)

Treasury Stock

(21.3)


(21.3)


(31.0)

Other Equity

14.4


14.0


14.2

Total Shareholders' Equity Attributable to ChipMOS

404.1


391.0


356.8

Noncontrolling Interests

138.7


134.6


130.9

Total Equity

542.8


525.6


487.7







LIABILITIES






Non-Current Liabilities






Long-Term Loans

186.6


226.1


248.1

Other Non-Current Liabilities

16.0


15.8


12.6

Total Non-Current Liabilities

202.6


241.9


260.7

Current Liabilities






Short-Term Loans

12.6


12.3


13.1

Accounts Payable and Payables to Contractors and

     Equipment Suppliers

46.4


46.1


54.5

Current Portion of Long-Term Debts

78.4


74.8


46.8

Other Current Liabilities

60.7


64.9


63.3

Total Current Liabilities

198.1


198.1


177.7

Total Liabilities

400.7


440.0


438.4

Total Liabilities & Equity

943.5


965.6


926.1







Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.81 against US$1.00 as of Mar. 29, 2013. 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 (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of Mar. 31, 2013, Dec. 31, 2012 and Mar. 31, 2012

Figures in Million of U.S. dollars (NTD)




Mar. 31, 2013


Dec. 31, 2012


Mar. 31, 2012

ASSETS

NTD


NTD


NTD

Non-Current Assets






Long-Term Investments

11.6


11.6


39.1

Property, Plant & Equipment-Net

12,159.4


12,475.3


13,557.7

Other Non-Current Assets

622.6


710.2


871.2

Total Non-Current Assets

12,793.6


13,197.1


14,468.0

Current Assets






Cash and Cash Equivalents

9,255.2


9,319.0


7,506.3

Accounts and Notes Receivable

3,913.6


4,120.1


3,624.6

Inventories

1,734.5


1,687.9


1,638.9

Other Current Assets

429.2


459.3


367.9

Total Current Assets

15,332.5


15,586.3


13,137.7

Total Assets

28,126.1


28,783.4


27,605.7







EQUITY AND LIABILITIES






EQUITY






Shareholders' Equity






Issued Capital

39.0


39.0


39.5

Capital Surplus

11,520.8


11,506.4


15,189.8

Retained Earnings (Accumulated Losses)

692.1


328.5


(4,089.7)

Treasury Stock

(635.8)


(635.7)


(924.8)

Other Equity

428.9


416.9


422.9

Total Shareholders' Equity Attributable to ChipMOS

12,045.0


11,655.1


10,637.7

Noncontrolling Interests

4,135.0


4,011.9


3,901.2

Total Equity

16,180.0


15,667.0


14,538.9







LIABILITIES






Non-Current Liabilities






Long-Term Loans

5,563.1


6,739.9


7,395.4

Other Non-Current Liabilities

476.0


472.5


374.7

Total Non-Current Liabilities

6,039.1


7,212.4


7,770.1

Current Liabilities






Short-Term Loans

375.4


366.5


389.8

Accounts Payable and Payables to Contractors

     and Equipment Suppliers

1,384.8


1,374.7


1,623.2

Current Portion of Long-Term Debts

2,336.5


2,227.8


1,395.5

Other Current Liabilities

1,810.3


1,935.0


1,888.2

Total Current Liabilities

5,907.0


5,904.0


5,296.7

Total Liabilities

11,946.1


13,116.4


13,066.8

Total Liabilities & Equity

28,126.1


28,783.4


27,605.7








Contacts:


In Taiwan

In the U.S.

Dr. S.K. Chen

David Pasquale

ChipMOS TECHNOLOGIES (Bermuda) LTD.

Global IR Partners

+886-6-507-7712

+1-914-337-8801

s.k._chen@chipmos.com

dpasquale@globalirpartners.com

 

SOURCE ChipMOS TECHNOLOGIES (Bermuda) LTD.