ST. PETERS, Mo., Aug. 03, 2016 (GLOBE NEWSWIRE) -- SunEdison Semiconductor Limited (NASDAQ:SEMI) ("SunEdison Semiconductor" or the “Company”) today reported financial results for the second quarter ended June 30, 2016.
Second Quarter 2016 Summary:
- Revenue grew sequentially due to increased volumes and stable pricing
- Gross profit up sequentially
- Received final installment of a customer deposit, the first portion of which was received during the 2016 first quarter
Results Review
Net sales for the 2016 second quarter were $190.9 million, up 4.7% sequentially compared to $182.3 million in the prior quarter. The sequential increase was primarily driven by higher unit volume and stable pricing. Gross profit for the 2016 second quarter was $17.5 million, or 9.2% of net sales, compared to $15.0 million, or 8.2% of net sales in the prior quarter.
“I am pleased with our second quarter performance. We grew our revenue and gross profits sequentially. Wafer demand improved quarter-on-quarter across all diameters, and this together with stable average pricing had a positive impact on our revenue,” said Shaker Sadasivam, President and CEO. “Although there is nothing material to report at this time on our ongoing review of strategic alternatives, those efforts are continuing while we remain focused on delivering high quality products and service for our customers.”
Second quarter 2016 operating loss was $25.9 million, compared to an operating loss of $12.8 million in the 2016 first quarter. Second quarter 2016 operating loss included a $14.7 million long-lived asset impairment charge related to the previous sale of our polysilicon and chlorosilanes plant in Merano, Italy, and a $1.1 million charge related to previously announced restructuring activities. First quarter 2016 operating loss included a $1.5 million charge related to previously announced restructuring activities.
Second quarter 2016 operating cash flow was $11.1 million compared to $11.0 million in the prior quarter. Second quarter 2016 cash from financing activities was $1.2 million, and cash used in investing activities of $13.0 million included $16.9 million of capital spending. Funds remaining on deposit from a customer were $20.1 million. The Company ended the quarter with cash and cash equivalents of $79.2 million, excluding the customer deposit.
Second quarter 2016 Adjusted EBITDA was $20.3 million, or 10.6% of sales, down $0.2 million compared to $20.5 million, or 11.2% of sales for the prior quarter. Second quarter 2016 and first quarter 2016 Adjusted EBITDA included foreign exchange losses of $2.9 million and $1.0 million, respectively, associated with the re-measurement of intra-company balances and derivative foreign currency forward contracts. Please see the reconciliation of Adjusted EBITDA to GAAP financial measures and a description of Adjusted EBITDA in the attached financial tables.
Conference Call
SunEdison Semiconductor will host a conference call tomorrow, August 4, 2016, at 9:00 a.m. ET to discuss the Company’s second quarter 2016 results and related business matters. A live webcast will be available on the Company’s web site at www.sunedisonsemi.com. Interested investors should go to the Company's web site at least fifteen minutes prior to the call to register and download any necessary audio software.
A replay of the conference call will be available from 10:30 a.m. ET on August 4, 2016, until 11:59 p.m. ET on August 18, 2016. To access the replay, please dial (320) 365-3844 at any time during that period, using passcode 397511. An audio replay will also be available on the Company’s web site.
About SunEdison Semiconductor
SunEdison Semiconductor is a global leader in the manufacture and sale of silicon wafers to the semiconductor industry. For over 55 years, SunEdison Semiconductor has been a pioneer in the design and development of silicon wafer technologies. With R&D and manufacturing facilities in the U.S., Europe, and Asia, SunEdison Semiconductor enables the next generation of high performance semiconductor devices. SunEdison Semiconductor’s common stock is listed on the NASDAQ OMX Global Select Market under the symbol "SEMI". For more information about SunEdison Semiconductor, please visit www.sunedisonsemi.com.
| SUNEDISON SEMICONDUCTOR LIMITED AND SUBSIDIARIES | |||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||||
| Net sales to non-affiliates | $ | 190.9 | $ | 182.3 | $ | 207.0 | $ | 373.2 | $ | 406.0 | |||||||||
| Net sales to affiliates | — | — | 0.4 | — | 0.8 | ||||||||||||||
| Cost of goods sold | 173.4 | 167.3 | 183.9 | 340.7 | 366.1 | ||||||||||||||
| Gross profit | 17.5 | 15.0 | 23.5 | 32.5 | 40.7 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Marketing and administration | 20.9 | 19.7 | 21.4 | 40.6 | 41.9 | ||||||||||||||
| Research and development | 6.7 | 6.6 | 7.3 | 13.3 | 15.4 | ||||||||||||||
| Restructuring charges (reversals) | 1.1 | 1.5 | (1.4 | ) | 2.6 | (0.2 | ) | ||||||||||||
| Long-lived asset impairment charges | 14.7 | — | 1.2 | 14.7 | 1.3 | ||||||||||||||
| Operating loss | (25.9 | ) | (12.8 | ) | (5.0 | ) | (38.7 | ) | (17.7 | ) | |||||||||
| Non-operating expenses (income): | |||||||||||||||||||
| Interest expense | 3.4 | 4.0 | 3.6 | 7.4 | 7.1 | ||||||||||||||
| Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||||
| Other, net | 2.9 | 6.8 | 1.2 | 9.7 | (9.2 | ) | |||||||||||||
| Total non-operating expenses (income) | 6.2 | 10.7 | 4.7 | 16.9 | (2.3 | ) | |||||||||||||
| Loss before income tax expense | (32.1 | ) | (23.5 | ) | (9.7 | ) | (55.6 | ) | (15.4 | ) | |||||||||
| Income tax expense | 5.4 | 7.4 | 5.1 | 12.8 | 8.4 | ||||||||||||||
| Loss before equity in loss of equity method investments | (37.5 | ) | (30.9 | ) | (14.8 | ) | (68.4 | ) | (23.8 | ) | |||||||||
| Equity in loss of equity method investments, net of tax | (11.0 | ) | (86.2 | ) | (0.7 | ) | (97.2 | ) | (1.0 | ) | |||||||||
| Net loss | $ | (48.5 | ) | $ | (117.1 | ) | $ | (15.5 | ) | $ | (165.6 | ) | $ | (24.8 | ) | ||||
| Basic loss per share | $ | (1.15 | ) | $ | (2.79 | ) | $ | (0.37 | ) | $ | (3.94 | ) | $ | (0.60 | ) | ||||
| Diluted loss per share | $ | (1.15 | ) | $ | (2.79 | ) | $ | (0.37 | ) | $ | (3.94 | ) | $ | (0.60 | ) | ||||
| Weighted-average shares used in computing basic loss per share | 42.0 | 42.0 | 41.6 | 42.0 | 41.6 | ||||||||||||||
| Weighted-average shares used in computing diluted loss per share | 42.0 | 42.0 | 41.6 | 42.0 | 41.6 | ||||||||||||||
