RESULTS OF OPERATIONS
3Q16 Results Highlights - Consolidated
- Net revenue contribution from packaging operations, testing operations, EMS operations, substrates sold to third parties and others, each represented approximately 46%, 10%, 43%, 1% and 0%, respectively, of total net revenues for the quarter.
- Cost of revenue was NT$58,671 million for the quarter, up from NT$50,346 million in 2Q16.
- Raw material cost totaled NT$33,983 million for the quarter, representing 47% of total net revenues.
- Labor cost totaled NT$9,303 million for the quarter, representing 13% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$7,097 million for the quarter.
- Gross margin decreased 0.2 percentage points to 19.4% in 3Q16 from 19.6% in 2Q16.
- Operating margin was 10.2% in 3Q16 compared to 9.5% in 2Q16.
- In terms of non-operating items:
- Net interest expense was NT$478 million.
- Net foreign exchange gain of NT$1,593 million was primarily attributable to the depreciation of the U.S. dollar against the NT dollar.
- Loss on valuation of financial assets and liabilities was NT$1,998 million.
- Net gain on equity-method investments was NT$457 million, including NT$472 million of the share of profit from our investment in Siliconware Precision Industries Co., Ltd.
- Other net non-operating loss of NT$137 million was primarily related to miscellaneous loss. Total non-operating expenses for the quarter were NT$563 million.
- Income before tax was NT$6,875 million for 3Q16, compared to NT$6,122 million in 2Q16. We recorded income tax expenses of NT$976 million for the quarter, compared to NT$1,523 million in 2Q16.
- In 3Q16, net income attributable to shareholders of the parent was NT$5,506 million, compared to net income attributable to shareholders of the parent of NT$6,368 million in 3Q15 and net income attributable to shareholders of the parent of NT$4,328 million in 2Q16.
- Our total number of shares outstanding at the end of the quarter was 7,936,473,546, including treasury stock owned by our subsidiaries. Our 3Q16 basic earnings per share of NT$0.72 (or US$0.113 per ADS) were based on 7,668,007,639 weighted average number of shares outstanding in 3Q16. Our 3Q16 diluted earnings per share of NT$0.64 (or US$0.101 per ADS) were based on 8,252,368,742 weighted average number of shares outstanding in 3Q16.
3Q16 Results Highlights - IC ATM[2]
- Cost of revenues was NT$32,037 million for the quarter, up by 11% sequentially.
- Raw material cost totaled NT$10,022 million for the quarter, representing 23% of total net revenues.
- Labor cost totaled NT$8,029 million for the quarter, representing 19% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$6,512 million for the quarter.
- Gross margin increased 0.7 percentage points to 25.5% in 3Q16 from 24.8% in 2Q16.
- Operating margin was 14.4% in 3Q16 compared to 12.9% in 2Q16.
3Q16 Results Highlights - EMS
- Cost of revenues for the quarter was NT$28,066 million, up by 26% sequentially.
- Raw material cost totaled NT$24,095 million for the quarter, representing 77% of total net revenues.
- Labor cost totaled NT$1,273 million for the quarter, representing 4% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$620 million for the quarter.
- Gross margin decreased to 10.0% in 3Q16 from 10.3% in 2Q16.
- Operating margin increased to 3.9% in 3Q16 from 3.3% in 2Q16.
LIQUIDITY AND CAPITAL RESOURCES
- Capital expenditures in 3Q16 totaled US$184 million, of which US$112 million were used in packaging operations, US$57 million in testing operations, US$10 million in EMS operations and US$5 million in interconnect materials operations.
- As of September 30, 2016, total unused credit lines amounted to NT$169,525 million.
- Current ratio was 1.21 and net debt to equity ratio was 0.50 as of September 30, 2016.
- Total number of employees was 68,141 as of September 30, 2016, compared to 65,437 as of June 30, 2016.
Business Review
Packaging Operations[3]
- Gross margin for our packaging operations for the quarter was 22.2%, up by 0.7 percentage points from 2Q16.
- Capital expenditures for our packaging operations amounted to US$112 million for the quarter, of which US$64 million were used in purchases of wafer bumping and flip chip packaging equipment, US$47 million were used in purchase of common equipment, including SiP equipment purchases, and US$1 million were used in wirebond packaging specific purposes.
