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ChipMOS Reports Q4

HSINCHU, Taiwan — ChipMOS TECHNOLOGIES (Bermuda) LTD. (“ChipMOS” or the “Company”) (Nasdaq: IMOS) today reported unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2010. All U.S. dollar figures in this release are based on the exchange rate of NT$29.14 against US$1.00 as of December 30, 2010. Net revenue on a US GAAP basis for the fourth quarter of 2010 was NT$4,322.6 million or US$148.3 million, an increase of 20.4% from NT$3,589.8 million or US$123.2 million for the same period in 2009 and a decrease of 8.4% from NT$4,717.2 million or US$161.9 million in the third quarter of 2010. The fourth quarter sequential decline is in line with prior guidance and consistent with quarterly seasonal trends.

Net income on a US GAAP basis for the fourth quarter of 2010 was NT$1,346.8 million or US$46.2 million, and NT$52.39 or US$1.80 per basic common share and US$1.67 per diluted common share. Net income under US GAAP includes non-cash loss for changes in the fair value of the embedded derivative liabilities of NT$12.2 million or US$0.4 million and amortization of discount on convertible notes of NT$1.6 million or US$0.1 million for the fourth quarter of 2010. Excluding the above special items regarding the convertible notes, non-GAAP adjusted net income for the fourth quarter of 2010 was NT$1,360.6 million or US$46.7 million, and NT$52.93 or US$1.82 per basic common share and US$1.67 per diluted common share.

Under US GAAP, net revenue for the fiscal year ended December 31, 2010 was NT$17,209.7 million or US$590.6 million, an increase of 41.6% from NT$12,150.3 million or US$417.0 million for the fiscal year ended December 31, 2009. Under US GAAP, net income for the fiscal year ended December 31, 2010 was NT$1,616.9 million or US$55.5 million, and NT$67.45 or US$2.31 per basic common share and US$2.28 per diluted common share. Net income for the fiscal year ended December 31, 2010 under US GAAP includes non-cash loss for changes in the fair value of the embedded derivative liabilities of NT$260.7 million or US$8.9 million and amortization of discount on convertible notes of NT$11.4 million or US$0.4 million. Excluding the above special items regarding the convertible notes, non-GAAP adjusted net income for the fiscal year ended December 31, 2010 was NT$1,889.0 million or US$64.8 million, and NT$78.80 or US$2.70 per basic common share and US$2.38 per diluted common share.

The unaudited consolidated financial results of ChipMOS for the fourth quarter and full year ended December 31, 2010 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS U.S.A., Inc., ChipMOS TECHNOLOGIES (H.K.) Limited, MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD., and ThaiLin Semiconductor Corp.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, “We are pleased to report that we achieved the goals we set out for 2010, including implementing a disciplined business strategy based on high-revenue opportunities whilst simultaneously improving our financial position and generating positive cash assertively. We ended the year on a high note, with a year-over-year increase in net revenue of 41.6% and net income for the full-year 2010 of US$2.28 per diluted common share as compared to a net loss of US$8.12 per diluted common share in 2009. We have clearly re-established ChipMOS as one of the industry's most important outsourced semiconductor assembly and testing services companies. We are aggressively focused on building on our growth momentum and are highly optimistic for the Company's prospects in 2011.”

S.K. Chen, Chief Financial Officer of ChipMOS, said, “I am pleased to add that we exited the year with a blended utilization rate of 68% in 4Q10 compared to 66% in the prior year corresponding period. For the full year 2010, our blended utilization rate was 74%, compared to 53% for the full year 2009. This reflects the considerable growth in our LCD driver segment, which was up 82% for the full year 2010 compared to 2009. Our balance of cash and cash equivalents improved to US$245.1 million as of December 31, 2010, compared to US$133.3 million as of December 31, 2009. This includes the receipt on October 13, 2010 from Citigroup Financial Products Inc. of US$67.8 million from the successful settlement of our breach of contract damage claim with Spansion LLC. As a result, we were able to further reduce the Company's total debt by US$61.2 million in the fourth quarter of 2010. While we had the balance sheet flexibility to reduce total debt by approximately US$100 million in the quarter, an extension of our short-term loan repayment schedule pushed the timing out slightly. We remain fully committed to actively reducing our total debt and expect to reduce this level by at least US$160 million in 2011, compared to our prior target of US$110 million to US$120 million. As of December 31, 2010, the Company's net debt to equity ratio was reduced to 66.8% from 191.3% at the end of 2009. By continuing to pay down our debt in 2011, we will benefit from reduced debt servicing costs, improved operating cash flows and margins, while also significantly improving the Company's financial strength.”

{complink 12843|ChipMOS Technologies (Bermuda) Ltd.}

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