Siliconware Precision Industries Reports Unaudited Consolidated Financial Results for the Fourth Quarter of 2017

TAICHUNG, Taiwan, Jan. 26, 2018 /PRNewswire/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the fourth quarter of 2017 were NT$ 21,623 million, which represented a 1.5% decline in revenues compared to the third quarter of 2017 and a 2.5% decline in revenues compared to the fourth quarter of 2016. SPIL reported a net income of NT$ 1,489 million for the fourth quarter of 2017, compared with a net income of NT$ 2,257 million and a net income of NT$ 2,829 million for the third quarter of 2017 and the fourth quarter of 2016, respectively.

Basic earnings per share for this quarter was NT$ 0.48, and diluted earnings per ordinary share was NT$ 0.48. Basic earnings per ADS for this quarter was US$ 0.08, and diluted earnings per ADS was US$ 0.08.

All figures were prepared in accordance with T-IFRS on a consolidated basis.

Operating results review:

• For the fourth quarter of 2017, net revenues from IC packaging were NT$ 18,195 million and represented 84% of total net revenues. Net revenues from testing operations were NT$ 3,428 million and represented 16% of total net revenues.
• Cost of goods sold was NT$ 17,138 million, which remained flat compared to the third quarter of 2017, and represented an increase of 1.1% compared to the fourth quarter of 2016.
• Raw materials costs were NT$ 7,266 million for the fourth quarter of 2017 and represented 33.6% of total net revenues, whereas raw materials costs were NT$ 7,282 million and represented 33.2% of total net revenues for the third quarter of 2017.
• The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 120 million.
• Gross profit was NT$ 4,485 million for the fourth quarter of 2017, representing a gross margin of 20.7%, which decreased from a gross margin of 21.9% for the third quarter of 2017 and decreased from 23.6% for the fourth quarter of 2016.
• Total operating expenses for the fourth quarter of 2017 were NT$ 2,165 million, which included selling expenses of NT$ 279 million, administrative expenses of NT$ 942 million and R&D expenses of NT$ 944 million. Total operating expenses represented 10.0% of total net revenues for the fourth quarter of 2017.
• The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 85 million.
• Operating income was NT$ 2,320 million for the fourth quarter of 2017, representing an operating margin of 10.7%, which decreased from 12.5% for the third quarter of 2017 and decreased from 13.7% for the fourth quarter of 2016.
• Non-operating items:
• Our non-operating expense was NT$ 389 million, including net losses of NT$ 463 million on fair value change of financial liabilities at fair value through profit or loss and net foreign exchange gains of NT$ 103 million.
• Net income before tax was NT$ 1,931 million for the fourth quarter of 2017, which decreased from a net income before tax of NT$ 2,558 million for the third quarter of 2017 and decreased from a net income before tax of NT$ 3,392 million for the fourth quarter of 2016.
• Income tax expense was NT$ 442 million for the fourth quarter of 2017, compared with income tax expense of NT$ 301 million for the third quarter of 2017 and income tax expense of NT$ 563 million for the fourth quarter of 2016.
• Net income was NT$ 1,489 million for the fourth quarter of 2017, which decreased from a net income of NT$ 2,257 million for the third quarter of 2017 and decreased from a net income of NT$ 2,829 million for the fourth quarter of 2016.
• Total number of shares outstanding was 3,116 million shares as of Dec. 31, 2017. Basic earnings per share for this quarter was NT$ 0.48, and diluted earnings per ordinary share was NT$ 0.48. Basic earnings per ADS for this quarter was US$ 0.08, and diluted earnings per ADS was US$ 0.08.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 24,444 million as of Dec. 31, 2017 from NT$ 20,783 million as of Sep. 30, 2017, and NT$ 24,476 million as of Dec. 31, 2016.
• Capital expenditures for the fourth quarter of 2017 totaled NT$ 2,306 million.
• Total depreciation expenses for the fourth quarter of 2017 totaled NT$ 3,800 million.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 18,195 million for the fourth quarter of 2017, which represented a decrease of NT$ 510 million or 2.7% compared to the third quarter of 2017.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 27%, 17% and 40%, respectively, of total net revenues for the fourth quarter of 2017.
• As of Dec. 31, 2017 we had 8,207 wirebonders installed, of which 249 were disposed in the fourth quarter of 2017.

IC testing service:

• Net revenues from testing operations were NT$ 3,428 million for the fourth quarter of 2017, which represented an increase of NT$ 178 million or 5.5% compared to the third quarter of 2017.
• As of Dec. 31, 2017 we had 574 testers installed, of which 4 were added and 1 were disposed in the fourth quarter of 2017.

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Revenue Analysis

• Breakdown by end applications:

• Breakdown by packaging type:

About SPIL

Siliconware Precision Industries Ltd. ("SPIL")(NASDAQ:SPIL, Taiwan Stock Exchange:2325) is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers' integrated circuit packaging and testing requirements, with turnkey solutions that range from design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, to shipment. Products include advanced leadframe, substrate packages, wafer bumping and FCBGA, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. For further information, visit SPIL's web site at www.spil.com.tw.

Safe Harbor Statement

The information herein contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectation and projections about future events. Such forward-looking statements are inherently subject to known and unknown risks, uncertainties, assumptions about us and other factors that may cause the actual performance, financial condition or results of operations of SPIL to be materially different from what may be implied by such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors, including, among other things:

• the intensely competitive personal computer, communications, consumer ICs and non-commodity memory semiconductor industries and markets;
• cyclical nature of the semiconductor industry;
• risks associated with global business activities;
• non-operating losses due to poor financial performance of some of our investments;
• our dependence on key personnel;
• general economic and political conditions;
• possible disruptions in commercial activities caused by natural and human induced disaster, including terrorist activities and armed conflicts and contagious disease, such as the Severe Acute Respiratory Syndrome;
• fluctuations in foreign currency exchange rates; and
• other risks identified in our annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission each year.

The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

All financial figures discussed herein are prepared pursuant to TIFRS on a consolidated basis. The investment gains or losses of our company for the three months ended Dec. 31, 2017 reflect our gains or losses attributable to the fourth quarter of 2017 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the consolidated financial data for our company for the three months ended Dec. 31, 2017, nor the consolidated financial data for our company for the twelve months ended Dec. 31, 2017 is necessarily indicative of the results that may be expected for any period thereafter.

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SOURCE Siliconware Precision Industries Co., Ltd.