2Q16 Highlights (as compared to 1Q16):
- Net Revenue of US$146.7 Million Compared to US$146.6 Million
- Gross Profit Was US$25.1 Million Compared to US$28.3 Million
- Gross Margin of 17.1% Compared to 19.3%
- Net Earnings of US$0.02 Per Basic Common Share and US$0.02 Per Diluted Common Share Compared to US$0.10 Per Basic Common Share and US$0.10 Per Diluted Common Share
- Net Income for The Second Quarter of 2016 Was Adversely Impacted by US$6.5 million or US$0.24 Per Basic Common Share for The Accrual of 20% Withholding Tax on The ChipMOS Taiwan Cash Dividend Distribution and Offset by US$3.2 million or US$0.12 Per Basic Common Share for The Reversal of 10% Income Tax on The Unappropriated Earnings of ChipMOS Taiwan
- Generated US$59.3 Million Cash from Operations
- Used US$16.1 Million to Repurchase Shares of ChipMOS Taiwan
- Completed Additional Investment of US$42.0 Million into Shanghai Facility
- Retained Balance of Cash and Cash Equivalents at US$402.6 Million Compared to US$411.4 Million, with Net Cash Balance of US$102.2 Million
ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (Nasdaq: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the second quarter ended June 30, 2016. All U.S. dollar figures in this release are based on the exchange rate of NT$32.22 against US$1.00 as of June 30, 2016.
Net revenue for the second quarter of 2016 was NT$4,727.1 million or US$146.7 million, an increase of 0.1% from NT$4,724.1 million or US$146.6 million in the first quarter of 2016 and a decrease of 6.7% from NT$5,069.1 million or US$157.3 million for the same period in 2015.
Net income attributable to equity holders of the Company for the second quarter of 2016 was NT$19.3 million or US$0.6 million, and NT$0.71 or US$0.02 per basic common share and NT$0.70 or US$0.02 per diluted common share, as compared to net income attributable to equity holders of the Company for the first quarter of 2016 of NT$92.4 million or US$2.9 million, and NT$3.38 or US$0.10 per basic common share and NT$3.35 or US$0.10 per diluted common share, and compared to net income attributable to equity holders of the Company in the second quarter of 2015 of NT$72.3 million or US$2.2 million, and NT$2.54 or US$0.08 per basic common share and NT$2.49 or US$0.08 per diluted common share. Net income for the second quarter of 2016 was adversely impacted by US$6.5 million or US$0.24 per basic common share for the accrual of 20% withholding tax on the ChipMOS Taiwan cash dividend distribution and offset by US$3.2 million or US$0.12 per basic common share for the reversal of 10% income tax on the unappropriated earnings of ChipMOS Taiwan.
The unaudited consolidated financial results of ChipMOS for the second quarter ended June 30, 2016 included the financial results of ChipMOS TECHNOLOGIES INC. ("ChipMOS Taiwan"), ChipMOS U.S.A., Inc. and ChipMOS TECHNOLOGIES (BVI) LTD. and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD ("ChipMOS Shanghai").
S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "Second quarter results were as expected. Growth in our LCD driver business was led by a rebound in small panel LCD drivers, which started in late 2Q16. Our memory services business was lower due to the macro DRAM segment. Mixed signal demand stable. Overall, we feel good about our capacity levels and expect to see utilization levels trend higher in the second half of 2016 based on customer feedback, an expected inventory replenishment, and higher demand for our MEMS, finger print sensor, touch driver, AMOLED, and OLED testing and assembly services. We are confident we can meet the improving demand outlook through our existing Taiwan and Shanghai facilities. Importantly, our outlook has improved over the past few weeks, following several specific customer demand indications, which will help drive sequential revenue growth in both the third and fourth quarters of 2016. Importantly, we are on track with our proposed merger of ChipMOS Taiwan and the Company having received support from shareholders and favorable recommendations from leading independent proxy voting and corporate governance advisory firms, Institutional Shareholder Services ("ISS") and Glass Lewis. We will hold our annual general meeting of shareholders on August 12, 2016, at 9:00AM (Taipei Time) and look forward reporting the results to shareholders. We are aggressively working for closure of the Merger, with an internal target of the end of October 2016."
S.K. Chen, Chief Financial Officer of ChipMOS, said, "Our gross margin was 17.1% for 2Q16. We ended the second quarter with a net cash balance of US$102.2 million , after generating US$59.3 million in cash from operations, with US$26.1 million invested in CapEx, and US$16.1 million used for the repurchase of shares of ChipMOS Taiwan on the open market. We also invested an additional US$42.0 million into our Shanghai facility as we ramp our capacity to support the vast existing Domestic China demand and compelling longer-term growth opportunities. We continue to work with Tsinghua Unigroup on its proposed investment. We feel confident we will be able to reach a positive outcome as we work through the regulatory approval process but we have put back-up financing in place so that we can move forward on our own if there is a delay given the extensive opportunities for growth in China ."
