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

TAICHUNG, Taiwan, July 25, 2017 /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 second quarter of 2017 were NT$ 20,425 million, which represented a 4.5% growth in revenues compared to the first quarter of 2017 and a 5.8% decline in revenues compared to the second quarter of 2016. SPIL reported a net income of NT$ 2,158 million for the second quarter of 2017, compared with a net income of NT$ 997 million and a net income of NT$ 2,809 million for the first quarter of 2017 and the second quarter of 2016, respectively.

Basic earnings per share for this quarter was NT$ 0.69, and diluted earnings per ordinary share was NT$ 0.49. Basic earnings per ADS for this quarter was US$ 0.11, 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 second quarter of 2017, net revenues from IC packaging were NT$ 17,645 million and represented 86% of total net revenues. Net revenues from testing operations were NT$ 2,780 million and represented 14% of total net revenues.
• Cost of goods sold was NT$ 16,668 million, representing an increase of 5.5% compared to the first quarter of 2017 and an increase of 0.5% compared to the second quarter of 2016.
• Raw materials costs were NT$ 7,121 million for the second quarter of 2017 and represented 34.9% of total net revenues, whereas raw materials costs were NT$ 6,725 million and represented 34.4% of total net revenues for the first quarter of 2017.
• The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 225 million.
• Gross profit was NT$ 3,757 million for the second quarter of 2017, representing a gross margin of 18.4%, which decreased from a gross margin of 19.2% for the first quarter of 2017 and decreased from 23.5% for the second quarter of 2016.
• Total operating expenses for the second quarter of 2017 were NT$ 1,883 million, which included selling expenses of NT$ 241 million, administrative expenses of NT$ 709 million and R&D expenses of NT$ 933 million. Total operating expenses represented 9.2% of total net revenues for the second quarter of 2017.
• The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 127 million.
• Operating income was NT$ 1,874 million for the second quarter of 2017, representing an operating margin of 9.2%, which increased from 8.9% for the first quarter of 2017 and decreased from 13.3% for the second quarter of 2016.
• Non-operating items:
• Our non-operating income was NT$ 1,076 million, including net gains of NT$ 721 million on fair value change of financial liabilities at fair value through profit or loss, cash dividends of NT$ 156 million from ChipMos Taiwan, and net foreign exchange gains of NT$ 108 million.
• Net income before tax was NT$ 2,950 million for the second quarter of 2017, which increased from a net income before tax of NT$ 1,262 million for the first quarter of 2017 and decreased from a net income before tax of NT$ 3,234 million for the second quarter of 2016.
• Income tax expense was NT$ 792 million for the second quarter of 2017, compared with income tax expense of NT$ 265 million for the first quarter of 2017 and income tax expense of NT$ 425 million for the second quarter of 2016.
• Net income was NT$ 2,158 million for the second quarter of 2017, which increased from a net income of NT$ 997 million for the first quarter of 2017 and decreased from a net income of NT$ 2,809 million for the second quarter of 2016.
• Total number of shares outstanding was 3,116 million shares as of June 30, 2017. Basic earnings per share for this quarter was NT$ 0.69, and diluted earnings per ordinary share was NT$ 0.49. Basic earnings per ADS for this quarter was US$ 0.11, and diluted earnings per ADS was US$ 0.08.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 24,978 million as of June 30, 2017 from NT$ 23,611 million as of Mar 31, 2017, and NT$ 24,508 million as of June 30, 2016.
• Capital expenditures for the second quarter of 2017 totaled NT$ 3,703 million.
• Total depreciation expenses for the second quarter of 2017 totaled NT$ 3,529 million.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 17,645 million for the second quarter of 2017, which represented an increase of NT$ 619 million or 3.6% compared to the first quarter of 2017.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 30%, 18% and 38%, respectively, of total net revenues for the second quarter of 2017.
• As of June 30, 2017 we had 8,505 wirebonders installed, of which 460 were added and 203 were disposed in the second quarter of 2017.

IC testing service:

• Net revenues from testing operations were NT$ 2,780 million for the second quarter of 2017, which represented an increase of NT$ 254 million or 10.1% compared to the first quarter of 2017.
• As of June 30, 2017 we had 556 testers installed, of which 8 were added and 1 were disposed in the second 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 June 30, 2017 reflect our gains or losses attributable to the second 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 June 30, 2017, nor the consolidated financial data for our company for the six months ended June 30, 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.