HSIN-CHU, Taiwan, April 29 /Xinhua-PRNewswire-FirstCall/ -- TSMC (NYSE:TSM)(TAIEX: 2330) today announced consolidated revenue of NT$87.5 billion, net income of NT$28.14 billion, and diluted earnings per share of NT$1.10 (US$0.17 per ADS unit) for the first quarter ended March 31, 2008.
Year-over-year, first quarter revenue increased 34.8% while net income and diluted EPS increased 49.4% and 54%, respectively. On a sequential basis, first quarter results represent a 6.8% decrease in revenue, a decrease of 18.4% in net income, and a decrease of 16.4% in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
First quarter business followed a normal seasonal pattern, but revenue and margins were negatively impacted by the strength of the NT dollar. The 2.6% average appreciation of the NT dollar reduced revenue by 2.6% and reduced gross margin by 1 percentage point. The resulting gross margin was 43.7%, operating margin was 33.3%, and net margin was 32.2%.
Advanced process technologies (0.13-micron and below) accounted for 63% of wafer revenues with 90-nanometer process technology accounting for 28% and 65- nanometer reaching 15% of total wafer sales.
'First quarter was a good quarter. The results were in line with guidance, in spite of the higher than forecast appreciation of the NT dollars against the US dollars. In addition, we began implementing a new ROC accounting rule which requires the expensing of employee profit sharing,' said Lora Ho, VP and Chief Financial Officer of TSMC. 'Based on our current business outlook, management's expectations for second quarter 2008 performance are as follows': -- Revenue is expected to be between NT$87 billion and NT$89 billion;
-- Gross profit margin is expected to be between 43% and 45%;
-- Operating profit margin is expected to be between 32% and 34%.
Conference Call & Webcast Notice:
TSMC's quarterly review conference call will be held at 8 a.m. Eastern Time (8 p.m. Taiwan Time) on Tuesday, April 29, 2008. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com/ at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-224-4327 in the U.S., 852-3002-1672 in Hong Kong, 65-6823-2164 in Singapore, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.
Profile TSMC (TAIEX: 2330; NYSE: TSM) is the world's largest dedicated semiconductor foundry, providing the industry's leading manufacturing capacity, process technology, and the foundry industry's largest portfolio of process-proven libraries, IP, design tools and reference flows. TSMC currently operates two twelve-inch wafer fabs, four eight-inch fabs, and one six-inch fab. The Company also operates two eight-inch fabs at its wholly owned subsidiaries, WaferTech in the U.S. and TSMC (Shanghai) Company, Ltd. in China, and has substantial capacity commitments from a joint-venture fab, SSMC, in Singapore. Total managed capacity in 2007 exceeds eight million eight-inch equivalent wafers. TSMC is the first foundry to provide 65-nanometer production capabilities. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available at http://www.tsmc.com/ .
TSMC 1Q08 Quarterly Management Report
April 29, 2008 Topics in This Report -- Revenue Analysis
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow
-- CapEx & Capacity
-- Recap of Recent Important Events & Announcements Operating Results Review: Summary: (Amounts are on consolidated basis and
are in NT billions except otherwise
noted) 1Q08 4Q07 1Q07 QoQ YoY EPS (NT$ per common share) 1.10 1.31 0.71 (16.4%) 54.0%
(US$ per ADR unit) 0.17 0.20 0.11 -- -- Consolidated Net Sales 87.48 93.86 64.90 (6.8%) 34.8%
Gross Profit 38.24 44.84 24.61 (14.7%) 55.4%
Gross Margin 43.7% 47.8% 37.9% -- -- Operating Expense (9.12) (8.08) (6.73) 12.9% 35.4%
Operating Income 29.12 36.76 17.88 (20.8%) 62.9%
Operating Margin 33.3% 39.2% 27.5% -- --
Non-Operating Items 2.45 2.57 2.19 (4.9%) 11.8% Net Income 28.14 34.48 18.84 (18.4%) 49.4%
Net Profit Margin 32.2% 36.7% 29.0% -- -- Wafer Shipment (kpcs 8 inch-equiv.) 2,196 2,357 1,566 (6.8%) 40.3% Remarks:
The first quarter diluted earnings per share were NT$1.10, representing an increase of 54.0% over the same period last year and a decline of 16.4% from the previous quarter. The consolidated operating results of 1Q08 are summarized below: Net sales in the first quarter were NT$87.5 billion, up 34.8% from NT$64.9 billion in 1Q07 and down 6.8% from NT$93.9 billion in 4Q07.
Gross profit for the quarter was NT$38.2 billion with gross margin of 43.7%, 4.1 percentage points lower than the 47.8% gross margin in 4Q07, mainly due to accrued expenses of employee profit sharing and negative impact of a higher than forecast appreciation of the NT dollar.
Operating expenses, including expenses accrued for employee profit sharing, were NT$9.1 billion or 10.4% of net sales. The combined result from non-operating income and long-term investments was a gain of NT$2.4 billion.
Consolidated net income attributable to shareholders of the parent company, including an accrual of employee profit sharing, was NT$28.1 billion, up 49.4% from a year ago level and down 18.4% from the previous quarter. Net profit margin was 32.2% for 1Q08.
I. Revenue Analysis I. Wafer Sales Analysis By Application 1Q08 4Q07 1Q07
Computer 34% 35% 30%
Communication 42% 42% 42%
Consumer 17% 15% 17%
Industrial/Others 5% 5% 7%
Memory 2% 3% 4% By Technology 1Q08 4Q07 1Q07
65nm and below 15% 10% 1%
90nm 28% 29% 22%
0.11/0.13um 20% 20% 26%
0.15/0.18um 23% 27% 30%
0.25/0.35um 10% 10% 15%
0.50um+ 4% 4% 6% By Customer Type 1Q08 4Q07 1Q07
Fabless/System 1% 68% 65%
IDM 29% 32% 35% By Geography 1Q08 4Q07 1Q07
North America 76% 79% 77%
Asia Pacific 12% 11% 11%
Europe 9% 8% 7%
Japan 3% 2% 5% Revenue Analysis:
In-line with our guidance, first quarter 2008 revenue reached NT$87.5 billion. 1Q08 business followed a normal seasonal pattern but revenue was negatively impacted by a 2.6% appreciation in the NT dollar. Demand from consumer related applications grew but communication and computer applications declined during the quarter. On a sequential basis, revenue from consumer applications increased 3%, while revenues for communication and computer applications declined 9% and 12%, respectively.
As a result of continued strong ramp for our 65nm technology, revenue from 65nm reached 15% of total wafer sales during the quarter, up from 10% in the previous quarter. Meanwhile, revenue from 90nm remained strong and accounted for 28% of total wafer sales. Overall, revenues from advanced technologies (0.13-micron and below) accounted for 63% of total wafer sales, up four percentage points from the 4Q07.
Revenues from IDM customers accounted for 29% of total wafer sales in 1Q08, compared to 32% in 4Q07.
From a geographic perspective, revenues from customers based in North America accounted for 76% of total wafer sales. Meanwhile, sales from customers in Asia Pacific, Europe and Japan accounted for 12%, 9% and 3% of wafer sales, respectively.
II. Profit & Expense Analysis II - 1. Gross Profit Analysis (In NT billions) 1Q08 4Q07 1Q07 COGS 49.2 49.0 40.3
Depreciation 18.1 18.5 18.5
Other MFG Cost 31.1 30.5 21.8 Gross Profit 38.2 44.8 24.6 Gross Margin 43.7% 47.8% 37.9% Gross Profit Analysis:
Gross margin in 1Q08 was 43.7%, down 4.1 percentage points from the previous quarter, reflecting the expensing of employee profit sharing (2.5 percentage points), an appreciation of the NT dollar (1.0 percentage point), and a lower level of capacity utilization, partially offset by cost improvements.
II - 2. Operating Expenses (In NT billions) 1Q08 4Q07 1Q07 Total Operating Exp. 9.12 8.08 6.73
SG&A 3.85 3.07 2.79
Research & Development 5.27 5.01 3.94
Total Operating Exp. 10.4% 8.6% 10.4%
as a % of Sales Operating Expenses:
Total operating expenses for 1Q08, including the accrued expenses of employee profit sharing (2.3 percentage points), increased by 12.9% sequentially to reach NT$9.1 billion, or 10.4% of net sales, compared with 8.6% of net sales in the previous quarter.
Research and development expenditures increased by NT$258 million quarter-over-quarter, mainly due to expensing of employee profit sharing, offset partially by cost improvement due to the maturity of 65nm technologies.
SG&A expenses increased by NT$780 million from the previous quarter, mostly due to expensing of employee profit sharing.
II - 3. Non-Operating Items (In NT billions) 1Q08 4Q07 1Q07 Non-Operating Inc./(Exp.) 1.8 1.7 1.8
Net Interest Income/(Exp.) 1.2 1.2 1.2
Other Non-Operating 0.6 0.5 0.6 L-T Investments 0.6 0.9 0.4
SSMC 0.4 0.5 0.1
Others 0.2 0.4 0.3 Total Non-Operating Items 2.4 2.6 2.2 Non-Operating Items:
Combined result from non-operating income and long-term investments was a gain of NT$2.4 billion for first quarter 2008.
Non-operating income was NT$1.8 billion, up from NT$1.7 billion in the previous quarter, primarily due to lower hedging costs.
Net investment income decreased by NT$300 million in the quarter to NT$577 million.
II - 4. PSE Impact
1Q08 4Q07 1Q07 Gross Margin w/ PSE 43.7% 43.2% 34.3%
Gross Margin w/o PSE 46.2% 47.8% 37.9%
PSE Imapct -2.5% -4.6% -3.6% Operating Margin w/ PSE 33.3% 30.2% 20.4%
Operating Margin w/o PSE 38.1% 39.2% 27.5%
PSE Impact -4.8% -9.0% -7.1% * PSE: Profit Sharing Expenses
** 2007 PSE impact is estimated using the 12/31/2007 closing share price
adjusted for dividends The Impact of Employee Profit Sharing:
Total impact from employee profit sharing expensing (PSE) on gross margin in 1Q08 was 2.5 percentage points. If we use 12/31/2007 market price, adjusted for dividends, to reflect PSE's impact in 2007, gross margin in 1Q08 would represent an improvement of 50 basis points from 4Q07.
Similarly, total PSE impact on operating margin was 4.8 percentage points in 1Q08, which was 4.2 percentage points less than that of 4Q07.
III. Financial Condition Review III - 1. Liquidity Analysis
(Selected Balance Sheet Items)
(In NT billions) 1Q08 4Q07 1Q07 Cash & Marketable Securities 210.3 174.8 217.4
Accounts Receivable - Trade 38.0 42.4 33.1
Inventory 21.9 23.9 22.3
Total Current Assets 281.5 249.8 286.1
Accounts Payable 22.6 19.3 19.2
Current Portion of Bonds Payable 8.0 0.0 4.5
Accrued Liabilities and Others 31.4 29.4 21.4
Total Current Liabilities 62.0 48.7 45.1
Current Ratio (x) 4.5 5.1 6.3
Net Working Capital 219.4 201.1 241.0 Liquidity Analysis:
At the end of 1Q08, total cash and marketable securities increased by NT$35.5 billion, as we generated $42.0 billion free cash flow during the quarter. TSMC ended the quarter with total current assets of NT$281.5 billion.
Total current liabilities increased by NT$13.3 billion in 1Q08, primarily due to increases in payables to equipment suppliers, accrual of employee profit sharing, and reclassification of corporate bonds.
Net working capital was NT$219.4 billion at the end of the quarter, current ratio declined slightly to 4.5.
III - 2. Receivable/Inventory Days (In Number of Days)
1Q08 4Q07 1Q07 Days of Receivable 43 42 47
Days of Inventory 46 48 52 Receivable and Inventory Days:
Sequentially, days of receivable increased by one day to 43 days in 1Q08 while days of inventory declined by two days to 46 days.
III - 3. Debt Service (In NT billions) 1Q08 4Q07 1Q07 Cash & Marketable Securities 210.3 174.8 217.4
Interest-Bearing Debt 22.9 23.1 26.2
Net Cash Reserves 187.4 151.7 191.2 Debt Service:
Net cash reserves -- defined as the excess of cash and short-term marketable securities over interest-bearing debt -- increased by NT$35.7 billion to NT$187.4 billion at the end of 1Q08. Interest-bearing debt declined slightly due to the appreciation of NT dollar.
IV. Cash Flow IV - 1. Cash Flow Analysis (In NT billions) 1Q08 4Q07 1Q07 Net Income 28.1 34.5 18.8
Depreciation & Amortization 19.8 20.3 20.3
Other Operating Sources/(Uses) 9.4 5.0 (1.0)
Total Operating Sources/(Uses) 57.3 59.8 38.1 Capital Expenditure (15.3) (19.8) (14.0)
Marketable Financial Instruments 12.9 8.2 3.5
Other Investing Sources/(Uses) (0.7) (1.1) (2.9)
Net Investing Sources/(Uses) (3.1) (12.7) (13.4) Repayment of Bonds Payable 0.0 (4.5) (2.5)
Repurchase of Treasury Stock (3.1) (45.4) 0.0
Other Financing Sources/(Uses) (0.2) (0.2) (0.3) Net Financing Sources/(Uses) (3.3) (50.1) (2.8) Net Cash Position Changes 50.9 (3.0) 21.9 Exchange Rate Changes & Others (1.6) (0.3) 0.6 Ending Cash Balance 144.3 95.0 140.3 Summary of Cash Flow:
Cash generated from operating activities totaled NT$57.3 billion during the quarter, down from NT$59.8 billion in 4Q07.
Net cash used in investing activities was NT$3.1 billion in 1Q08, reflecting capital expenditure of NT$15.3 billion and a net decrease of NT$12.9 billion in marketable financial instruments.
Net cash used in financing activities was NT$3.3 billion during the quarter, as we spent NT$3.1 billion in share buybacks.
As a result, TSMC ended the quarter with a cash balance of NT$144.3 billion.
IV - 2. Operating and Free Cash Flows Please refer to this link for the Operating and Free Cash Flows chart:
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$57.3 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$42.0 billion in 1Q08, compared to NT$40.0 billion in 4Q07.
V. CapEx & Capacity V - 1. Capital Expenditures (In US millions) 1Q08 4Q07 TSMC 452 577
XinTec and GUC 13 16
TSMC Shanghai & WaferTech 18 17
Other TSMC Subsidiaries 1 1
Total TSMC 484 611 Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$484 million during the quarter.
For year 2008, total capital expenditures for TSMC is expected to be around US$1.8 billion, compared with US$2.6 billion spent in 2007.
V - 2. Capacity: Fab/(Wafer size) 1Q08 2Q08 3Q08 4Q08 2008
(A) (F) (F) (F) (F) Fab-2 (6") Note 1 248 267 269 272 1,056
Fab-3 (8") 277 283 274 274 1,109
Fab-5 (8") 163 165 167 167 662
Fab-6 (8") 265 272 280 277 1,094
Fab-8 (8") 262 275 278 278 1,094
Fab-12 (12") Note 2 197 206 210 214 828
Fab-14 (12") Note 2 167 185 225 229 806
WaferTech (8") 105 105 106 106 420
TSMC (Shanghai) (8") 88 110 128 128 453
TSMC total capacity
(8" equiv. Kpcs) 2,117 2,241 2,363 2,380 9,101
SSMC (8") 63 67 69 73 272
Total managed capacity
(8" equiv. Kpcs) 2,180 2,308 2,433 2,454 9,374
Note: 1. Figues represent number of 6" wafers. Conversion to
8"-equivalent wafers is obtained by dividing this number
by 1.78 2. Figues represent number of 12" wafers. Conversion to
8"-equivalent wafers is obtained by multiplying this number
by 2.25 Capacity:
Total TSMC managed capacity was 2,180K 8-inch equivalent wafers in the first quarter, 4% lower than 4Q07, mostly due to scheduled fab maintenance and less working days.
TSMC managed capacity in 2Q08 will increase by 6% to reach 2,308K 8-inch equivalent wafers.
Total managed capacity for 2008 is expected to reach 9,374K 8-inch equivalent wafers, representing an increase of 13% from 8,290K 8-inch equivalent wafers in 2007, while capacity for 12-inch wafer fabs will increase by 25%.
VI. Recap of Recent Important Events & Announcements -- TSMC First to Deliver 40nm Process Technology, including Embedded DRAM,
Mixed Signal & RF and Regular MPW Prototyping Service (2008/03/24)
-- TSMC Announces Reorganization of Advanced and Mainstream Business
Units to Improve Structural Profitability and Strengthen Customer
Partnership (2008/02/29)
-- TSMC Board Proposes Dividend of NT$3.0 Cash and 0.5% Stock Per Share
(2008/02/19)
-- TSMC Board Approves The Cancellation of 800 million Treasury Shares
Purchased from The Open Market and Reduction of Capital Stock by
NT$8,000 million. (2008/02/19)
-- Sun Selects TSMC to Fab 45-nanometer and Future Generation Processors
(2008/02/19) * Please visit TSMC's Web site (http://www.tsmc.com/ ) for details about
these and other announcements.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets (Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1) March 31, 2008 December 31, 2007
(unaudited) (audited)
USD NTD % NTD %
ASSETS
Current Assets
Cash and Cash Equivalents $4,745 $144,277 24.2 $94,986 16.6
Investments in Marketable
Financial Instruments 2,172 66,034 11.1 79,848 14.0
Accounts Receivable - Trade 1,248 37,950 6.3 42,424 7.4
Inventories, Net 720 21,890 3.7 23,862 4.2
Other Current Assets 372 11,304 1.9 8,702 1.5
Total Current Assets 9,257 281,455 47.2 249,822 43.7 Long-Term Investments 1,108 33,693 5.6 36,461 6.4 Property, Plant and Equipment 26,886 817,464 136.9 800,352 140.2
Less: Accumulated Depreciation(18,282) (555,854) (93.1)(540,100) (94.6)
Property, Plant and
Equipment, Net 8,604 261,610 43.8 260,252 45.6 Other Assets 667 20,285 3.4 24,330 4.3
Total Assets $19,636 $597,043 100.0 $570,865 100.0 LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Short-Term Bank Loans $-- $-- -- $-- --
Accounts Payables 340 10,338 1.7 13,078 2.3
Payables to Contractors and
Equipment Suppliers 403 12,256 2.1 6,257 1.1
Accrued Expenses and Other
Current Liabilities 1,025 31,162 5.2 29,090 5.1
Current Portion of Bonds
Payable and Long-Term
liabilities 272 8,280 1.4 281 --
Total Current Liabilities 2,040 62,036 10.4 48,706 8.5
Bonds Payable 148 4,500 0.8 12,500 2.2
Other Long-Term Liabilities 577 17,537 2.9 18,973 3.3
Total Liabilities 2,765 84,073 14.1 80,179 14.0 Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock 8,429 256,292 42.9 264,271 46.3
Capital Surplus 1,700 51,696 8.7 53,733 9.4
Retained Earnings 6,862 208,633 34.9 218,864 38.3
Treasury Stock (30) (918) (0.2) (49,385) (8.7)
Others (211) (6,410) (1.0) (391) 0.0
Total Equity Attributable
to Shareholders of the
Parent 16,750 509,293 85.3 487,092 85.3
Minority Interest 121 3,677 0.6 3,594 0.7
Total Shareholders' Equity 16,871 512,970 85.9 490,686 86.0
Total Liabilities &
Shareholders' Equity $19,636 $597,043 100.0 $570,865 100.0
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$30.405 as of March 31, 2008.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD)) (1)
March 31, 2007 QoQ YoY
(unaudited)
ASSETS NTD % Amount % Amount %
Current Assets
Cash and Cash
Equivalents $140,274 23.0 $49,291 51.9 $4,003 2.9
Investments in
Marketable
Financial
Instruments 77,096 12.7 (13,814) (17.3) (11,062) (14.3)
Accounts Receivable
-- Trade 3,094 5.4 (4,474) (10.5) 4,856 14.7
Inventories, Net 22,259 3.7 (1,972) (8.3) (369) (1.7)
Other Current
Assets 13,356 2.2 2,602 29.9 (2,052) (15.4)
Total Current
Assets 286,079 47.0 31,633 12.7 (4,624) (1.6) Long-Term Investments 52,185 8.6 (2,768) (7.6) (18,492) (35.4) Property, Plant and
Equipment 734,182 120.6 17,112 2.1 83,282 11.3
Less: Accumulated
Depreciation (483,834)(79.5)(15,754) 2.9 (72,020) 14.9
Property, Plant
and Equipment,
Net 250,348 41.1 1,358 0.5 11,262 4.5 Other Assets 20,159 3.3 (4,045) (16.6) 126 0.6
Total Assets $608,771 100.0 $26,178 4.6 ($11,728) (1.9)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Short-Term Bank
Loans $7 -- $-- -- ($79)(100.0)
Accounts Payables 10,129 1.7 (2,740) (21.0) 209 2.1
Payables to
Contractors and
Equipment
Suppliers 9,094 1.5 5,999 95.9 3,162 34.8
Accrued Expenses
and Other Current
Liabilities 21,101 3.4 2,072 7.1 10,061 47.7
Current Portion of
Bonds Payable and
Long-Term
liabilities 4,714 0.8 7,999 2,848.4 3,566 75.6
Total Current
Liabilities 45,117 7.4 13,330 27.4 16,919 37.5
Bonds Payable 12,500 2.1 (8,000) (64.0) (8,000) (64.0)
Other Long-Term
Liabilities 19,415 3.2 (1,436) (7.6) (1,878) (9.7)
Total
Liabilities 77,032 12.7 3,894 4.9 7,041 9.1 Shareholders' Equity
Attributable to
Shareholders of the
Parent
Capital Stock 258,330 42.4 (7,979) (3.0) (2,038) (0.8)
Capital Surplus 54,231 8.9 (2,037) (3.8) (2,535) (4.7)
Retained Earnings 215,963 35.5 (10,231) (4.7) (7,330) (3.4)
Treasury Stock (918) (0.2) 48,467 (98.1) -- --
Others 1,020 0.2 (6,019) 1,535.8 (7,430)(728.7)
Total Equity
Attributable to
Shareholders of
the Parent 528,626 86.8 22,201 4.6 (19,333) (3.7)
Minority Interest 3,113 0.5 83 2.3 564 18.1
Total
Shareholders'
Equity 531,739 87.3 22,284 4.5 (18,769) (3.5)
Total Liabilities &
Shareholders' Equity $608,771 100.0 $26,178 4.6 ($11,728) (1.9)
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$30.405 as of March 31, 2008. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2008, December 31, 2007,
and March 31, 2007
(Expressed in Millions of New Taiwan Dollars (NTD)
and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding) Q1 2008 Q4 2007
USD NTD % NTD %
Net Sales $2,767 $87,480 100.0 $93,860 100.0
Cost of Sales (1,557) (49,241) (56.3) (49,024) (52.2)
Gross Profit 1,210 38,239 43.7 44,836 47.8
Operating Expenses
Research and Development
Expenses (167) (5,270) (6.0) (5,012) (5.3)
General and Administrative
Expenses (84) (2,662) (3.0) (2,039) (2.2)
Sales and Marketing Expenses (37) (1,184) (1.4) (1,027) (1.1)
Total Operating Expenses (288) (9,116) (10.4) (8,078) (8.6) Income from Operations 922 29,123 33.3 36,758 39.2 Non-Operating Income, Net 59 1,872 2.1 1,697 1.8
Investment Gains 18 577 0.7 877 0.9
Income before Income Tax 999 31,572 36.1 39,332 41.9 Income Tax (Expenses) Benefits (106) (3,336) (3.8) (4,608) (4.9) Net Income 893 28,236 32.3 34,724 37.0 Minority Interest (3) (93) (0.1) (239) (0.3) Net Income Attributable to
Shareholders of the Parent 890 28,143 32.2 34,485 36.7 Earnings per Share -- Diluted $0.03 $1.10 -- $1.31 --
Earnings per ADR -- Diluted (2) $0.17 $5.49 -- $6.57 -- Weighted Average Outstanding
Shares - Diluted ('M) (3) 25,610 -- 26,243 --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$31.614 for the first
quarter of 2008. (2) 1 ADR equals 5 ordinary shares. (3) Total diluted weighted average outstanding shares were 26,406M
shares for 1Q07 after the retroactive adjustments for stock dividends
and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2008, December 31, 2007,
and March 31, 2007
(Expressed in Millions of New Taiwan Dollars (NTD)
and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
Q1 2007 QoQ YoY
NTD % Amount % Amount %
Net Sales $64,897 100.0 ($6,380) (6.8) $22,583 34.8
Cost of Sales (40,287) (62.1) (217) 0.4 (8,954) 22.2
Gross Profit 24,610 37.9 (6,597) (14.7) 13,629 55.4
Operating Expenses
Research and Development
Expenses (3,942) (6.1) (258) 5.1 (1,328) 33.7
General and
Administrative Expenses(1,902) (2.9) (623) 30.6 (760) 40.0
Sales and Marketing
Expenses (889) (1.4) (157) 15.2 (295) 33.1
Total Operating Expenses (6,733) (10.4) (1,038) 12.9 (2,383) 35.4 Income from
Operations 17,877 27.5 (7,635) (20.8) 11,246 62.9 Non-Operating Income, Net 1,830 2.8 175 10.3 42 2.3
Investment Gains 361 0.6 (300) (34.1) 216 60.1
Income before Income Tax 20,068 30.9 (7,760) (19.7) 11,504 57.3 Income Tax (Expenses)
Benefits (1,107) (1.7) 1,272 (27.6) (2,229)201.3 Net Income 18,961 29.2 (6,488) (18.7) 9,275 48.9 Minority Interest (122) (0.2) 146 (61.2) 29 (24.1) Net Income Attributable to
Shareholders of the
Parent 18,839 29.0 (6,342) (18.4) 9,304 49.4 Earnings per Share --
Diluted $0.71 -- ($0.22) (16.4) $0.39 54.0
Earnings per ADR --
Diluted (2) $3.57 -- ($1.08) (16.4) $1.93 54.0 Weighted Average
Outstanding Shares --
Diluted ('M) (3) 26,406 -- -- -- -- --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NT$31.614 for the first quarter of
2008. (2) 1 ADR equals 5 ordinary shares. (3) Total diluted weighted average outstanding shares were 26,406M
shares for 1Q07 after the retroactive adjustments for stock dividends
and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the The Three Months Ended March 31, 2008, December 31, 2007,
and March 31, 2007
(Expressed in Millions of New Taiwan Dollars (NTD)
and U.S. Dollars (USD))(1) 1Q 2008 4Q 2007 1Q 2007
(Unaudited) (Unaudited) (Unaudited)
USD NTD NTD NTD
Cash Flows from Operating Activities:
Net Income $890 $28,143 $34,485 $18,839
Net Income Attributable to
Minority Interest 3 93 239 122
Depreciation & Amortization 627 19,831 20,281 20,251
Deferred Income Tax 14 435 877 (972)
Equity in Earnings of Equity
Method Investees, Net (18) (577) (877) (361)
Changes in Working Capital &
Others 296 9,370 4,754 265
Net Cash Provided by Operating
Activities 1,812 57,295 59,759 38,144 Cash Flows from Investing Activities:
Acquisitions of:
Marketable Financial
Instruments (440) (13,902) (32,478) (15,796)
Investments Accounted for
Using Equity Method -- -- 6 --
Property, Plant and Equipment (484) (15,313) (19,781) (13,959)
Financial Assets Carried at
Cost (7) (213) (103) (212)
Proceeds from Disposal or
maturity of:
Marketable Financial
Instruments 848 26,816 40,680 19,259
Property, Plant and Equipment -- 1 34 1
Financial Assets Carried at
Cost 3 93 141 14
Others (19) (607) (1,160) (2,717)
Net Cash Used In Investing
Activities (99) (3,125) (12,661) (13,410) Cash Flows from Financing Activities:
Increase (Decrease) in Guarantee
Deposits (12) (371) (321) (388)
Proceeds from Exercise of Stock
Options 3 81 35 122
Repayment of Long-Term Bonds
Payable -- -- (4,500) (2,500)
Repurchase of Treasury Stock (97) (3,054) (45,413) --
Others 2 58 90 (28)
Net Cash Used in Financing
Activities (104) (3,286) (50,109) (2,794) Net Increase (Decrease) in Cash and
Cash Equivalents 1,609 50,884 (3,011) 21,940 Effect of Exchange Rate Changes and
Others (50) (1,593) (331) 497 Cash and Cash Equivalents at
Beginning of Period 3,005 94,986 98,328 117,837 Cash and Cash Equivalents at End of
Period $4,564 $144,277 $94,986 $140,274
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD31.614 for the three months
ended March 31, 2008.
Safe Harbor Notice:
The statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. TSMC cautions readers that forward-looking statements are subject to significant risks and uncertainties and are based on TSMC's current expectations. Actual results may differ materially from those contained in such forward-looking statements for a variety of reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor industry; demand and supply for TSMC's foundry manufacturing capacity in particular and for foundry manufacturing capacity in general; intense competition; the failure of one or more significant customers to continue to place the same level of orders with us; TSMC's ability to remain a technological leader in the semiconductor industry; TSMC's ability to manage its capacity; TSMC's ability to obtain, preserve and defend its intellectual property rights; natural disasters and other unexpected events which may disrupt production; and exchange rate fluctuations. Additional information as to these and other risk factors that may cause TSMC's actual results to differ materially from TSMC's forward-looking statements may be found in TSMC's Annual Report on Form 20-F, filed with the United States Securities and Exchange Commission (the 'SEC') on April 15, 2008, and such other documents as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT
Elizabeth Sun / Harrison Hsueh
Investor Relations Division
TSMC
Tel: +886-3-568-2085/2088
Email: DATASOURCE: TSMC CONTACT: Elizabeth Sun or Harrison Hsueh of TSMC Investor Relations Division, +886-3-568-2085/2088, Web site: http://www.tscm.com.tw/
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