TAIPEI (dpa-AFX) - United Microelectronics Corp. or UMC (UMC) on Wednesday said its first-quarter profit plunged as revenues were hurt mainly by sharply lower Wafer shipments. The Taiwanese semiconductor foundry said it expects second-quarter wafer shipments to increase 15 percent sequentially, as communication and consumer IC demand grows.
Shih-Wei Sun, CEO of UMC, said, 'UMC's profitability and revenue exceeded our expectations. ...The projected growth reconfirms that the economic cycle trough seen in the first quarter signaled that the semiconductor industry's multi-quarter inventory correction has subsided.'
For its first quarter, net income plunged 70.2 percent to NT$1.34 billion or $45 million from last year's $152 million. Earnings per share were NT$0.11 or $0.004, lower than $0.012 per share a year ago. Earnings per ADS was $0.019, compared to $0.061 in the prior-year quarter.
Revenues for the quarter fell 15.5 percent to NT$23.77 billion or $805.60 million from $953 million in the previous year.
Wafer shipments reached 963 thousand 8-inch equivalent wafers, bringing overall capacity utilization to 71 percent, while prior year's shipments were 1,120 wafers with capacity utilization of 90 percent.
Revenue contribution from 40nm increased to 9 percent from last year's 6 percent. Revenue share of 40nm to 65nm capacity climbed to 40 percent of total revenues from last year's 29 percent. UMC said it is currently re-optimizing its 40nm customer profile to transition more diversified customer products to this advanced node.
Revenue from Asia Pacific contributed to 46 percent of UMC's first-quarter revenue, reflecting the relatively strong computer and consumer demand. North America accounted for 45 percent of total revenues.
In the quarter, gross profit plunged 41.2 percent and gross margin declined to 19.1 percent from 27.5 percent a year ago. Operating margin also fell to 5.6 percent from 15.85 in 2011.
For the second quarter, the company expects that communication and consumer segments will outpace computer segment.
Wafer ASP is expected to remain flat from previous quarter, while gross margin is expected in the low 20 percent range.
Sun added, 'We are optimistic about the semiconductor industry's long-term development. To solidify UMC's profitability and business growth, we will continue to follow the 'Customer-Driven Foundry Solutions' philosophy ..... this node will enhance UMC's customer and product mix, average selling price, and profitability once volume production begins.'
The company also said its Board of Directors has proposed for shareholders' approval of a 2011 cash dividend payout of NT$0.5 per share.
In Taipei, UMC shares closed today's trading at NT$14.90, up NT$0.15 or 1.02 percent.
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© 2012 AFX News
