UMCs first quarter net profit fell 86% year on year less than expected

UMC today announced first quarter 2008 financial results. The report shows that growth slowed as the chip foundry business, UMC first quarter net profit fell 86% year on year, failed to meet analyst expectations.

Ended March 31 of this quarter, UMCs net profit of NT 206 million (U.S. $ 6,800,000), earnings per share of NT 0.02. The relatively large decline in performance year on year, the 2007 first quarter net profit of NT 1.459 billion yuan, 0.08 yuan per share of NT. UMCs first quarter operating profit was NT 1.9 billion over last years increase of 955.6% of NT 18 million yuan. UMCs first quarter sales of NT 24.003 billion yuan, compared with NTD 23.025 billion yuan last year increased by 4.2%.

UMCs first quarter results failed to meet analyst expectations, Reuters survey, analysts had expected first quarter net profit of NT 455 million yuan. UMCs first quarter gross margin was 14.9%, lower than the previous quarter to 20.5% and LT1114S datasheet and 16.0% last year. UMCs first quarter operating margin was 0.8%, lower than the previous quarters 4.8%, 0.1% higher than the same period last year.

In accordance with the geographical division of UMC in the first quarter, 58% of its revenue from North America, last year the proportion was 47%; 29% from the Asia-Pacific, compared to the same period last year, 43%; 11 % from Europe, last year the proportion was 7%; 2% from Japan, last year the figure was 3%.

In accordance with the application of division of UMC in the first quarter, 21% of revenue from computer chips, a year earlier, compared with 18%; 56% from the communications chip, a year earlier, compared with 56%; 21% from consumer chips, last year this percentage was 24%; 1% of the memory chip from the same period last year, compared with 1%; 1% from other chips, this proportion over the same period last year 1%.

UMC expects wafer sales in the second quarter of 2008 will grow by about 10% sequentially; wafer prices will average about 2% decline the previous quarter; exchange rate changes to the revenue impact is -3.0% to -5.0%; capacity utilization is about 80%; gross margin of approximately 20%; 2008 capital expenditures of approximately $ 500,000,000 to $ 700,000,000.