HSIN-CHU, Taiwan, April 27 /Xinhua-PRNewswire-FirstCall/ -- TSMC today
announced, on an unconsolidated basis, revenue of NT$77.29 billion, net
income of NT$32.61 billion, and fully diluted earnings per share of NT$1.32
(US$0.20 per ADS unit) for the first quarter ended March 31, 2006. On a
consolidated basis, net sales were NT$77.85 billion while net income and
EPS remained at NT$32.61 billion and NT$1.32, respectively.
Year-over-year, first quarter unconsolidated revenue increased 38.9%
while net income and fully diluted EPS increased 93.9% and 93.6%,
respectively. On a sequential basis, unconsolidated first quarter results
represent a 4.8% decrease in revenue, a 3.8% decrease in net income and a
3.9% decrease in fully diluted EPS. All figures were prepared in accordance
with R.O.C. GAAP.
As a result of stronger than expected demand in certain product
segments, first quarter revenue surpassed guidance. Advanced process
technologies (0.13-micron and below) accounted for 49% of wafer revenues
while revenues from 90-nanometer process technology alone was 20% of the
total wafer sales. Gross margin declined from 49.1% in the previous quarter
to 47.4% in the first quarter, with 3.3% depreciation in US dollars being
an important factor. Operating margin was 39.9% compared to 42.2% in the
previous quarter, while net margin increased slightly to 42.2% from 41.8%
quarter over quarter.
''Due primarily to seasonality and a weaker US dollar, our first
quarter business had declined as we expected, although revenue surpassed
our guidance,'' said Lora Ho, VP and Chief Financial Officer of TSMC.
''Going forward, we expect the demand to increase for most of the
application segments and the currency exchange rate impact to be less
pronounced,'' said Ho. ''Based on our current business outlook,
management's expectations for second quarter 2006 performance are as
follows'':
-- Revenue to be between NT$79 billion and NT$81billion, while
consolidated revenue to be between NT$80 billion and NT$82 billion;
-- Gross profit margin to be between 47% and 49%, while consolidated
gross profit margin to be between 48% and 50%;
-- Operating profit margin to be between 40% and 42% on both
consolidated and unconsolidated basis.
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 Thursday, April 27, 2006. 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 1-617-213-8052 in the
U.S., 852-3002-1672 in Hong Kong, 65-6823-2164 in Singapore, and
44-800-2800-2002 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, library and IP options, and other
leading-edge foundry services. TSMC currently operates two twelve-inch
wafer fabs, five eight-inch wafer fabs and one six-inch fab. The Company
also has substantial capacity commitments at two wholly owned subsidiaries,
WaferTech in the U.S. and TSMC (Shanghai) Company, Ltd. in China, and at a
joint-venture fab, SSMC, in Singapore. TSMC is the first foundry to run
65-nanometer customer design prototype wafers. TSMC's corporate
headquarters are in Hsin-Chu, Taiwan. More information about TSMC is
available through the World Wide Web at http://www.tsmc.com .
1Q06 Quarterly Management Report
April 27, 2006
Topics in This Report
-- Revenue Analysis
-- Capacity
-- Profit & Expense Analysis
-- SFAS No. 34
-- Financial Condition Review
-- Cash Flow & CapEx
-- Analysis of Consolidated Results
-- Recap of Recent Important Events & Announcements
Operating Results Review
Summary:
(Amount in NT$ billion except noted
otherwise) 1Q06 4Q05 1Q05 QoQ YoY
EPS (NT$ per com. shr.) 1.32 1.37 0.68 (3.9%) 93.6%
(US$ per ADR unit) 0.20 0.21 0.11
Net Sales 77.29 81.16 55.65 (4.8%) 38.9%
Gross Profit 36.64 39.86 21.65 (8.1%) 69.3%
Gross Margin 47.4% 49.1% 38.9%
Operating Expense (5.77) (5.64) (5.57) 2.4% 3.6%
Non-Operating Items 3.79 1.18 0.19 221.8% 1906.7%
Net Income 32.61 33.90 16.82 (3.8%) 93.9%
Net Profit Margin 42.2% 41.8% 30.2%
Wafer Shipment (kpcs 8 inch-equiv.) 1,738 1,707 1,113 1.8% 56.2%
Remarks:
The first quarter EPS of NT$1.32 represents a year-over-year increase
of 93.6% compared to 1Q05 and a sequential decline of 3.9% compared to
4Q05. The unconsolidated operating results of 1Q06 are summarized below:
Net sales were NT$77.29 billion, a 38.9% increase compared to NT$55.65
billion reported in 1Q05 and a 4.8% decline compared to NT$81.16 billion
reported in the previous quarter. Net sales for the quarter surpassed the
top end of our guidance by NT$1.29 billion, primarily driven by stronger
than expected demand from our customers in computer segment.
Gross profit was NT$36.64 billion, representing an 8.1% decrease from
the previous quarter. Gross margin declined by 1.7 percentage points
sequentially to 47.4%, with 3.3% depreciation in US dollars being an
important factor.
Operating expenses were NT$5.77 billion or 7.5% of net sales. The
combined result from non-operating income and long-term investments was a
gain of NT$3.79 billion, which includes a one-time gain of $1.8 billion
from adopting Statement of Financial Accounting Standards (''SFAS'') No.
34.
Net income was NT$32.61 billion, down 3.8% sequentially. Net margin was
42.2%.
I. Revenue Analysis
I - 1. Wafer Sales Analysis
By Application 1Q06 4Q05 1Q05
Computer 37% 32% 34%
Communication 39% 41% 41%
Consumer 18% 21% 17%
Industrial/Others 5% 5% 6%
Memory 1% 1% 2%
By Technology 1Q06 4Q05 1Q05
N90- 20% 17% 4%
0.11/0.13um 29% 32% 41%
0.15/0.18um 32% 32% 31%
0.25/0.35um 14% 14% 18%
0.50um+ 5% 5% 6%
By Customer Type 1Q06 4Q05 1Q05
Fabless/System 74% 72% 69%
IDM 26% 28% 31%
By Geography 1Q06 4Q05 1Q05
North America 78% 77% 79%
Asia Pacific 11% 11% 8%
Europe 7% 8% 6%
Japan 4% 4% 7%
Revenue Analysis:
Net sales were NT$77.29 billion for 1Q06, topping the high end of our
guidance by NT$1.29 billion, mainly driven by stronger than expected demand
from our customers in computer segment.
On a quarter over quarter basis, revenues from computer applications
increased by 8%, while revenues from communications and consumer
applications decreased by 10% and 20%, respectively.
Revenue from advanced technologies -- defined as 0.13-micron and below
-- accounted for 49% of total wafer sales, flat from the previous quarter.
Revenue from 90nm continued to increase and accounted for 20% of total
wafer sales during the quarter, compared to 17% in the fourth quarter of
2005.
IDM accounted for 26% of total wafer sales during the quarter, down
slightly from 28% in the previous quarter.
Geographically, North America accounted for 78% of wafer sales, up from
77% in 4Q05. Meanwhile, sales from Europe declined by one percentage point
sequentially to 7% of wafer sales.
II. Capacity
1Q06 2Q06 3Q06 4Q06
Fab / (Wafer size) (Act.) (Est.) (Est.) (Est.)
Fab-2 (6")* 244 258 260 260
Fab-3 (8") 246 252 259 252
Fab-5 (8") 135 138 143 149
Fab-6 (8") 215 222 227 241
Fab-7 (8") 33 23 4 0
Fab-8 (8") 231 233 228 242
Fab-12 (12'')** 142 150 157 162
Fab-14 (12")** 61 66 86 115
TSMC - owned capacity
8'' equivalent Kpcs 1,455 1,499 1,554 1,653
WaferTech (8'') 99 100 101 101
SSMC (8'') 49 50 50 52
TSMC (Shanghai) (8'') 48 52 69 82
Total TSMC - managed
8'' equivalent Kpcs 1,651 1,700 1,774 1,889
Note: * Figures represent number of 6 wafers. Conversion to
8''-equivalent wafers is by dividing this number by 1.78
** Figures represent number of 12 wafers. Conversion to
8''-equivalent wafers is by multiplying this number by 2.25
Capacity:
Total TSMC managed capacity in 1Q06 was 1,651K 8-inch equivalent
wafers, 1.3% higher than the 1,629K wafers in 4Q05.
TSMC managed capacity in 2Q06 will increase to 1,700K 8-inch equivalent
wafers, representing a 3% sequential growth. Majority of the capacity
increase was dedicated to advanced technologies.
Overall installed capacity for year 2006 is expected to be slightly
above 7 million 8-inch equivalent wafers.
III. Profit & Expense Analysis
III - 1. Gross Profit Analysis
(Amount: NT$ billion) 1Q06 4Q05 1Q05
COGS 40.7 41.3 34.0
Depreciation 14.5 14.9 15.2
Other MFG Cost 26.1 26.4 18.8
Gross Profit 36.6 39.9 21.6
Gross Margin 47.4% 49.1% 38.9%
Gross Profit Analysis:
Gross profit for the first quarter of 2006 was NT$36.6 billion. Gross
margin declined by 1.7 percentage points sequentially to 47.4%, with 3.3%
depreciation in US dollars being an important factor.
III - 2. Operating Expense Analysis
(Amount: NT$ billion) 1Q06 4Q05 1Q05
Total Operating Exp. 5.77 5.64 5.57
SG&A 2.23 2.22 2.22
Research & Development 3.55 3.42 3.35
Operating Expenses:
Operating expenses for 1Q06 were NT$5.77 billion, slightly higher than
the previous quarter, largely due to higher R&D expenses associated with
65nm technology. Total operating expenses represented 7.5% of net sales, up
from 6.9% in the fourth quarter of 2005.
III - 3. Non-Operating Items
(Amount: NT$ million) 1Q06 4Q05 1Q05
Non-Operating Income/(Exp.) 816 952 387
Net Interest Income/(Exp.) 737 488 317
Other Non-Operating 79 464 70
L-T Investments 2,972 225 (198)
WaferTech* 856 793 195
SSMC 462 348 104
InveStar Funds 1,797 56 (1)
TSMC (Shanghai) (38) (414) (280)
Others (106) (558) (217)
Total Non-Operating Items 3,788 1,177 189
* Operation results only; does not include amortization of goodwill
and depreciation of impaired assets.
** Certain prior period amounts have been reclassified to conform with
current period presentation.
Non-Operating Items:
Combined result from non-operating income and long-term investments was
a gain of NT$3.8 billion.
During the first quarter of 2006, non-operating income was NT$816
million, compared to an income of NT$952 million in the previous quarter.
The decrease in non-operating income was mainly due to the scheduled
lawsuit settlement payment received in 4Q05 from SMIC and a decrease in
gains on sale of fixed assets, offset in part by an increase in interest
income.
Net investment income was NT$2,972 million in this quarter, compared to
an income of NT$225 million in 4Q05. The increase was primarily due to
gains recognized under SFAS No. 34 from TSMC venture capital funds and
improved operating performance at TSMC's manufacturing affiliates. A major
portion of the gains recognized under SFAS No. 34 is non-recurring.
III - 4. SFAS No. 34
(Amount: NT$ million) Unconsolidated Consolidated
Change in Accounting Principle (246.2) 1,606.7
Non-Operating Items 1,860.0 60.8
Minority Interest (53.7)
Total SFAS No. 34 Impact 1,613.8 1,613.8
SFAS No. 34
On January 1, 2006, TSMC adopted the newly released Statements of
Financial Accounting Standards No. 34 ''Accounting for Financial
Instruments'' (SFAS No. 34).
Under SFAS No. 34, marketable securities with readily determinable
market value are measured at fair value, with unrealized gains and losses
on trading securities recognized in earnings for the current period. Total
unrealized gains and losses on trading securities as of January 1, 2006 are
included in the cumulative effect of changes in accounting principles.
As a result of adopting SFAS No. 34, TSMC recognized a total of NT$1.6
billion gains in 1Q06 on both consolidated and unconsolidated basis,
majority of which is non-recurring.
The adoption of SFAS No. 34 resulted in an increase of NT$0.065 in
earnings per share in 1Q06.
IV. Financial Condition Review
IV - 1. Liquidity Analysis
(Amount: NT$ Billion) 1Q06 4Q05 1Q05
Cash & Marketable Securities 178.0 133.8 112.2
Accounts Receivable - Trade 35.8 36.4 22.4
Inventory 16.9 16.3 13.4
Total Current Assets 240.8 197.6 159.7
Accounts Payable 22.5 20.2 19.1
Accrued Liabilities and Others 15.9 12.0 18.8
Total Current Liabilities 38.3 32.2 37.9
Current Ratio (x) 6.3 6.1 4.2
Net Working Capital 202.4 165.4 121.9
* Certain prior period amounts have been reclassified to conform with
current period presentation.
Liquidity Analysis:
Cash & marketable securities increased by NT$44.2 billion in this
quarter, mainly due to strong cash flows from operating activities. As a
result, TSMC ended the quarter with total current assets of NT$240.8
billion, NT$43.2 billion higher on a sequential basis.
Total current liabilities were NT$38.3 billion at the end of the
quarter, NT$6.2 billion higher than the previous quarter, mainly due to an
increase in payables to contractors and equipment suppliers and a
reclassification of an NT$2.5 billion corporate bond from long-term debt to
current liabilities.
As a result, net working capital increased to NT$202.4 billion and
current ratio increased to 6.3x.
IV - 2. Receivable/Inventory Days
1Q06 4Q05 1Q05
Days of Receivable 44 42 42
Days of Inventory 44 42 42
Receivable/Inventory Days Trend:
Days of receivable increased to 44 days in 1Q06, compared to 42 days in
the previous quarter.
Days of inventory increased to 44 days from 42 days in the fourth quarter
of 2005.
IV - 3. Debt Service
(Amount: NT$ billion) 1Q06 4Q05 1Q05
Cash & Marketable Securities 178.0 133.8 112.2
Interest-Bearing Debt 19.5 19.5 30.0
Net Cash Reserves 158.5 114.3 82.2
* Certain prior period amounts have been reclassified to conform with
current period presentation.
Debt Service:
As a result of strong operating performance during the quarter, net
cash reserves -- defined as the excess of cash and marketable securities
over interest-bearing debt -- increased by NT$44.2 billion to NT$158.5
billion in 1Q06.
Interest-bearing debt remained flat at NT$19.5 billion.
V - 1. Cash Flow Analysis
(Amount: NT$ billion) 1Q06 4Q05 1Q05
Net Income 32.6 33.9 16.8
Depreciation & Amortization 16.0 16.6 16.7
Other Op Sources/(Uses) (0.8) (1.6) 2.5
Total Op Sources/(Uses) 47.7 48.9 36.0
Capital Expenditure (11.1) (13.3) (38.2)
Marketable Financial Instruments (12.8) 0.9 (0.0)
Other Investing Sources/(Uses) 0.3 0.3 (3.2)
Net Investing Sources/(Uses) (23.6) (12.1) (41.3)
Repayment of Corporate Bonds 0.0 (10.5) 0.0
Other Financing Sources/(Uses) 0.4 0.6 (0.0)
Net Financing Sources/(Uses) 0.4 (9.9) (0.0)
Net Cash Position Changes 24.6 26.9 (5.3)
Ending Cash Balance 110.0 85.4 60.2
* Certain prior period amounts have been reclassified to conform with
current period presentation.
Summary of Cash Flow:
During this quarter, TSMC generated NT$47.7 billion from operating
activities, mainly from net income of NT$32.6 billion and depreciation &
amortization of NT$16.0 billion.
Net cash used in investment activities totaled NT$23.6 billion, mainly
as a result of an NT$11.1 billion in capital spending and an NT$12.8
billion net increase in marketable financial instruments.
Net cash provided by financing activities was NT$0.4 billion during
this quarter.
As a result, TSMC ended the quarter with a cash balance of NT$110
billion, NT$24.6 billion higher than in 4Q05.
V - 2. Operating and Free Cash Flows
Operating and Free Cash Flows:
TSMC continues to generate strong free cash flows. Free cash flows
totaled NT$36.6 billion for 1Q06, NT$1 billion higher than the NT$35.6
billion generated in the previous quarter, mainly due to lower level of
capital expenditures during the quarter.
To view V - 2. Operating and Free Cash Flows, please visit
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf .
V - 3. Capital Expenditure
(In US$ million) 1Q06
TSMC $344
TSMC (Shanghai) & WaferTech 12
TSMC Consolidated $356
Capital Spending:
Capital expenditures for TSMC alone totaled US$344 million during the
quarter. Most of the spending was for the purchase of 12-inch production
equipment. Capital spending for TSMC subsidiaries in this quarter was US$12
million.
For year 2006, total capital expenditure for TSMC consolidated group is
expected to be in the range of US$2.6 billion to US$2.8 billion, unchanged
from our previous guidance provided in January 2006.
VI. Analysis of Consolidated Financial Results
Consolidated Structure
TSMC consolidated results include the results from its overseas sales
offices (TSMC North America, TSMC Europe and TSMC Japan), manufacturing
subsidiaries (TSMC (Shanghai) and WaferTech), strategic alliance (Global
Unichip Corp.), venture capital funds, and others. These entities are
collectively referred to as ''TSMC consolidating entities'' hereafter.
To view VI. Analysis of Consolidated Financial Results, please visit
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf .
VI - 2. Consolidated v. Unconsolidated Income Statement
(Amount: NT$ billion) Consolidated Unconsolidated Difference
Net Sales 77.9 77.3 0.6
COGS 40.1 40.7 (0.6)
Gross Profit 37.7 36.6 1.1
Gross Margin % 48.5% 47.4% 1.1%
Operating Expenses
Research & Development 3.7 3.5 0.2
SG&A 3.1 2.2 0.9
Total Operating Expenses 6.8 5.8 1.0
Operating Income 30.9 30.9 0.0
Operating Margin % 39.7% 39.9% -0.2%
Non-Operating Income (Exp.) 1.4 0.8 0.6
Investment Income (Loss) 0.6 3.0 (2.4)
Income Tax Benefit (Expense) (1.9) (1.8) (0.1)
Change in Accounting
Principle 1.6 (0.2) 1.8
Minority Interest (0.1) 0.0 (0.1)
Net Income 32.6 32.6 0.0
Net Margin % 41.9 % 42.2 % -0.3 %
Consolidated Income Statement
On a consolidated basis, net sales for 1Q06 were NT$77.9 billion,
NT$0.6 billion higher than the unconsolidated net sales, reflecting sales
contributions from TSMC consolidating entities. Consolidated gross margin
was 48.5%, compared to 47.4% on the unconsolidated basis. The higher
consolidated gross margin reflects the true gross margins from TSMC
consolidating entities.
Consolidated operating expenses were NT$6.8 billion for 1Q06, NT$1
billion higher than the unconsolidated operating expenses. The higher
consolidated operating expenses were mainly attributable to additional
sales & marketing expenses from TSMC overseas sales offices and additional
G&A expenses from other TSMC consolidating entities. Total consolidated
operating expenses accounted for 8.8% of consolidated net sales, compared
to 7.5% on the unconsolidated basis.
Consolidated non-operating income was NT$1.4 billion for 1Q06, NT$0.6
billion higher than the unconsolidated non-operating income, mainly due to
gains recognized under SFAS No. 34 from TSMC venture capital funds and a
one-time gain from a TSMC subsidiary. SFAS No. 34 related gains
attributable to changes in fair value during 1Q06 are reported as
non-operating income for consolidated purpose instead of as investment
income for unconsolidated purpose.
Investment income for 1Q06 was NT0.6 billion on the consolidated basis,
reflecting TSMC's share of income from TSMC's non-consolidating affiliates.
Consolidated net income was NT$32.6 billion, same as that on the
unconsolidated basis. Consolidated net margin was 41.9%, 0.3% lower than
the unconsolidated net margin.
VI - 3. Consolidated v. Unconsolidated Balance Sheet
(Selected Balance Sheet Items)
(Amount: NT$ billion) Consolidated Unconsolidated Difference
Cash & Marketable Securities 192.3 178.0 14.3
Accounts Receivable - - Trade 38.0
35.8 2.2
Inventory 18.4 16.9 1.5
Total Current Assets 259.3 240.8 18.5
Long-Term Investments 34.7 75.4 (40.7)
Fixed Assets, Net 241.5 212.5 29.0
Total Assets 555.3 543.7 11.6
Total Current Liabilities 40.9 38.3 2.6
L/T Interest-Bearing Debt 24.7 17.0 7.7
Total Liabilities 76.7 65.8 10.9
Total Equity 478.6 477.9 0.7
Consolidated Balance Sheet
On a consolidated basis, as a result of higher cash and marketable
securities, total current assets were NT$259.3 billion, NT$18.5 billion
higher than the unconsolidated total current assets.
Consolidated long-term investments were NT$34.7 billion for 1Q06,
compared to NT$75.4 billion on the unconsolidated basis, reflecting the
consolidation of TSMC subsidiaries.
Consolidated net fixed assets totaled NT$241.5 billion, NT$29 billion
higher than the unconsolidated net fixed assets, mainly due to
manufacturing facilities located at TSMC's consolidating entities.
Total consolidated liabilities were NT$76.7 billion, compared to
NT$65.8 billion on the unconsolidated basis, largely attributable to
borrowings by TSMC's consolidating entities.
VI - 4. Consolidated v. Unconsolidated Cash Flows
(Amount: NT$ billion) Consolidated Unconsolidated Difference
Cash Flows Provided
by Operating Activities 48.9 47.7 1.2
Depreciation &
Amortization 17.7 16.0 1.8
Cash Flows Used in
Investing Activities (24.1) (23.6) (0.6)
Capital Expenditures (11.5) (11.1) (0.4)
Cash Flows Provided
by Financing Activities 0.1 0.4 (0.3)
Net Cash Increase (Decrease) 24.9 24.6 0.3
Consolidated Cash Flows
Consolidated cash flows provided by operating activities were NT$48.9
billion in 1Q06, NT$1.2 billion higher than that on the unconsolidated
basis, mainly due to additional depreciation & amortization expenses from
WaferTech and TSMC (Shanghai).
Consolidated cash flows used in investing activities totaled NT$24.1
billion in 1Q06, slightly higher than that on the unconsolidated basis,
primarily due to capital expenditures at TSMC (Shanghai).
Consolidated cash flows provided in Financing activities were NT$0.1
billion in 1Q06.
VII. Recap of Recent Important Events & Announcements
-- TSMC and ARM Sign Long-term Physical IP Agreement for 65- And 45-
nanometer Technologies (2006/04/19)
-- TSMC invites Carly Fiorina to Join Board of Directors as Independent
Member (2006/04/06)
-- TSMC 65nm Wireless Devices is Sampled by QUALCOMM (2006/04/06)
-- TSMC Appoints Dr. Fu-Chieh Hsu as Vice President of Design and
Technology Platform (2006/03/29)
-- TSMC Wins Intel's Preferred Quality Supplier Award (2006/03/22)
-- TSMC Board Proposes Distribution of NT$2.5 Cash And 3% Stock Per Share
(2006/02/14)
-- TSMC Announces Immersion Lithography Nearly Production Ready
(2006/02/22)
*Please visit TSMC's Web site ( http://www.tsmc.com ) for details about
these and other announcements.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
Condensed Balance Sheets (Unconsolidated)
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
March 31, 2006 (Unaudited)
ASSETS USD NTD %
Current Assets
Cash and Cash Equivalents $3,388 $109,990 20.2
Investments in Marketable Financial
Instruments 2,095 67,994 12.5
Accounts Receivable - Trade 1,102 35,780 6.6
Inventories, Net 521 16,901 3.1
Other Current Assets 312 10,123 1.9
Total Current Assets 7,418 240,788 44.3
Long Term Investments 2,324 75,439 13.9
Properties, Plant and Equipment 18,060 586,213 107.8
Less: Accumulated Depreciation (11,513) (373,691) (68.7)
Properties, Plant and Equipment,
Net 6,547 212,522 39.1
Other Assets 462 14,975 2.7
Total Assets $16,751 $543,724 100.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payables $335 $10,874 2.0
Payables to Contractors and
Equipment Suppliers 358 11,621 2.1
Accrued Expenses and Other Current
Liabilities 411 13,352 2.4
Current Portion of Bonds Payable 77 2,500 0.6
Total Current Liabilities 1,181 38,347 7.1
Bonds Payable 524 17,000 3.1
Other Long Term Liabilities 322 10,444 1.9
Total Liabilities 2,027 65,791 12.1
Shareholders' Equity
Common Stock 7,620 247,331 45.5
Capital Surplus 1,762 57,208 10.5
Retained Earnings 5,403 175,378 32.3
Treasury Stock (28) (918) (0.2)
Others (33) (1,066) (0.2)
Total Shareholders' Equity 14,724 477,933 87.9
Total Liabilities & Shareholders'
Equity $16,751 $543,724 100.0
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$32.46 as of March 31, 2006.
(2) Certain prior period balances have been reclassified to
conform to the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
Condensed Balance Sheets (Unconsolidated)
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
December 31, 2005 March 31, 2005
(Audited)(2) (Unaudited)(2)
ASSETS NTD % NTD %
Current Assets
Cash and Cash Equivalents $85,384 16.8 $60,219 12.5
Investments in Marketable Financial
Instruments 48,436 9.5 51,941 10.8
Accounts Receivable - Trade 36,396 7.2 22,429 4.7
Inventories, Net 16,258 3.2 13,429 2.8
Other Current Assets 11,088 2.2 11,726 2.4
Total Current Assets 197,562 38.9 159,744 33.2
Long Term Investments 80,660 15.9 76,877 16.0
Properties, Plant and Equipment 573,337 113.0 545,308 113.4
Less: Accumulated Depreciation (359,191) (70.8) (315,454) (65.6)
Properties, Plant and Equipment,
Net 214,146 42.2 229,854 47.8
Other Assets 15,172 3.0 14,199 3.0
Total Assets $507,540 100.0 $480,674 100.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payables $11,294 2.2 $8,208 1.7
Payables to Contractors and
Equipment Suppliers 8,859 1.7 10,920 2.3
Accrued Expenses and Other Current
Liabilities 12,031 2.4 8,263 1.5
Current Portion of Bonds Payable -- -- 10,500 2.2
Total Current Liabilities 32,184 6.3 37,891 7.9
Bonds Payable 19,500 3.8 19,500 4.1
Other Long Term Liabilities 10,225 2.1 7,929 1.6
Total Liabilities 61,909 12.2 65,320 13.6
Shareholders' Equity
Common Stock 247,300 48.7 232,529 48.4
Capital Surplus 57,118 11.3 56,574 11.8
Retained Earnings 142,771 28.1 130,549 27.1
Treasury Stock (918) (0.2) (1,572) (0.3)
Others (640) (0.1) (2,726) (0.6)
Total Shareholders' Equity 445,631 87.8 415,354 86.4
Total Liabilities & Shareholders'
Equity $507,540 100.0 $480,674 100.0
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$32.46 as of March 31, 2006.
(2) Certain prior period balances have been reclassified to
conform to the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
Condensed Balance Sheets (Unconsolidated)
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
QoQ YoY
ASSETS Amount % Amount %
Current Assets
Cash and Cash Equivalents $24,606 28.8 $49,771 82.6
Investments in Marketable Financial
Instruments 19,558 40.4 16,053 30.9
Accounts Receivable - Trade (616) (1.7) 13,351 59.5
Inventories, Net 643 4.0 3,472 25.9
Other Current Assets (965) (8.7) (1,603) (13.7)
Total Current Assets 43,226 21.9 81,044 50.7
Long Term Investments (5,221) (6.5) (1,438) (1.9)
Properties, Plant and Equipment 12,876 2.2 40,905 7.5
Less: Accumulated Depreciation (14,500) 4.0 (58,237) 18.5
Properties, Plant and Equipment,
Net (1,624) (0.8) (17,332) (7.5)
Other Assets (197) (1.3) 776 5.5
Total Assets $36,184 7.1 $63,050 13.1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payables ($420) (3.7) $2,666 32.5
Payables to Contractors and
Equipment Suppliers 2,762 31.2 701 6.4
Accrued Expenses and Other Current
Liabilities 1,321 10.2 5,089 75.4
Current Portion of Bonds Payable 2,500 0.0 (8,000) (76.2)
Total Current Liabilities 6,163 19.1 456 1.2
Bonds Payable (2,500) (12.8) (2,500) (12.8)
Other Long Term Liabilities 219 2.1 2,515 31.7
Total Liabilities 3,882 6.3 471 0.7
Shareholders' Equity
Common Stock 31 -- 14,802 6.4
Capital Surplus 90 0.2 634 1.1
Retained Earnings 32,607 22.8 44,829 34.3
Treasury Stock -- -- 654 (41.6)
Others (426) 66.3 1,660 (60.9)
Total Shareholders' Equity 32,302 7.2 62,579 15.1
Total Liabilities & Shareholders'
Equity $36,184 7.1 $63,050 13.1
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$32.46 as of March 31, 2006.
(2) Certain prior period balances have been reclassified to
conform to the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
Unaudited Condensed Income Statements (Unconsolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 and March 31, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
Q1 2006
USD NTD %
Net Sales $2,390 $77,293 100.0
Cost of Sales (1,257) (40,651) (52.6)
Gross Profit 1,133 36,642 47.4
Operating Expenses
Research and Development Expenses (110) (3,549) (4.6)
General and Administrative
Expenses (47) (1,555) (2.0)
Sales and Marketing Expenses (21) (671) (0.9)
Total Operating Expenses (178) (5,775) (7.5)
Income from Operations 955 30,867 39.9
Non-Operating Incomes (Expenses),
Net 25 816 1.1
Investment Gains (Losses) 92 2,972 3.8
Income before Income Tax 1,072 34,655 44.8
Income Tax Benefits (Expenses) (56) (1,802) (2.3)
Net Income Before Cumulative Effect
of Changes in Accounting
Principles 1,016 32,853 42.5
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) (8) (246) (0.3)
Net Income $1,008 $32,607 42.2
Earnings per Share - Diluted 0.04 1.32
Earnings per ADR (2) 0.20 6.60
Weighted Average Outstanding Shares
('M) (3) 24,721
Note: (1) Amounts in NTD have been translated into USD at the weighted
average rate of NTD32.337 for the first quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were
24,721M shares for 1Q06 and 24,684M shares for 1Q05 after the
retroactive adjustments for stock dividends and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
Unaudited Condensed Income Statements (Unconsolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 and March 31, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
Q4 2005 Q1 2005
NTD % NTD %
Net Sales $81,161 100.0 $55,653 100.0
Cost of Sales (41,296) (50.9) (34,004) (61.1)
Gross Profit 39,865 49.1 21,649 38.9
Operating Expenses
Research and Development Expenses (3,423) (4.2) (3,349) (6.0)
General and Administrative
Expenses (1,860) (2.3) (1,945) (3.5)
Sales and Marketing Expenses (358) (0.4) (279) (0.5)
Total Operating Expenses (5,641) (6.9) (5,573) (10.0)
Income from Operations 34,224 42.2 16,076 28.9
Non-Operating Incomes (Expenses),
Net 952 1.1 387 0.7
Investment Gains (Losses) 225 0.3 (198) (0.4)
Income before Income Tax 35,401 43.6 16,265 29.2
Income Tax Benefits (Expenses) (1,501) (1.8) 553 1.0
Net Income Before Cumulative Effect
of Changes in Accounting
Principles 33,900 41.8 16,818 30.2
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) -- -- -- --
Net Income $33,900 41.8 $16,818 30.2
Earnings per Share - Diluted 1.37 0.68
Earnings per ADR (2) 6.86 3.41
Weighted Average Outstanding Shares
('M) (3) 24,693 24,684
Note: (1) Amounts in NTD have been translated into USD at the weighted
average rate of NTD32.337 for the first quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were
24,721M shares for 1Q06 and 24,684M shares for 1Q05 after the
retroactive adjustments for stock dividends and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
Unaudited Condensed Income Statements (Unconsolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 and March 31, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
QoQ YoY
Amount % Amount %
Net Sales ($3,868) (4.8) $21,640 38.9
Cost of Sales 645 (1.6) (6,647) 19.5
Gross Profit (3,223) (8.1) 14,993 69.3
Operating Expenses
Research and Development Expenses (126) 3.7 (200) 6.0
General and Administrative
Expenses 305 (16.4) 390 (20.1)
Sales and Marketing Expenses (313) 87.5 (392) 140.8
Total Operating Expenses (134) 2.4 (202) 3.6
Income from Operations (3,357) (9.8) 14,791 92.0
Non-Operating Incomes (Expenses),
Net (136) (14.3) 429 110.9
Investment Gains (Losses) 2,747 1,220.1 3,170 (1,599.7)
Income before Income Tax (746) (2.1) 18,390 113.1
Income Tax Benefits (Expenses) (301) 20.1 (2,355) (425.9)
Net Income Before Cumulative Effect
of Changes in Accounting
Principles (1,047) (3.1) 16,035 95.3
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) (246) -- (246) --
Net Income ($1,293) (3.8) $15,789 93.9
Earnings per Share - Diluted (0.05) (3.9) 0.64 93.6
Earnings per ADR (2) (0.27) (3.9) 3.19 93.6
Weighted Average Outstanding Shares
('M) (3)
Note: (1) Amounts in NTD have been translated into USD at the weighted
average rate of NTD32.337 for the first quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were
24,721M shares for 1Q06 and 24,684M shares for 1Q05 after the
retroactive adjustments for stock dividends and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
Unaudited Condensed Statement of Cash Flows (Unconsolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 and March 31, 2005
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
1Q 2005
1Q 2006 4Q 2005 (2)
USD NTD NTD NTD
Cash Flows from Operating Activities:
Net Income $1,008 $32,607 $33,900 $16,818
Depreciation & Amortization 494 15,975 16,554 16,669
Deferred Income Tax (18) (569) (950) (553)
Investment Loss(Income) Recognized
by Equity Method (92) (2,972) (225) 198
Changes in Working Capital &
Others 85 2,707 (383) 2,889
Net Cash Provided by Operating
Activities 1,477 47,748 48,896 36,021
Cash Flows from Investing Activities:
Acquistions:
Marketable Financial
Instruments(3) (1,012) (32,731) (21,333) (20,395)
Long-term investments by equity
method (1) (19) (167) (2,992)
Property, Plant and Equipment (344) (11,115) (13,323) (38,161)
Proceeds from disposal or matiruty
of:
Marketable Financial
Instruments(3) 616 19,924 22,204 20,394
Property, Plant and Equipment 14 461 585 121
Decrease in Others (2) (102) (79) (294)
Net Cash Used in Investing
Activities (729) (23,582) (12,113) (41,327)
Cash Flows from Financing Activities:
Repayment of Long Term Bonds
Payable -- -- (10,500) --
Increase(Decrease) in Guarantee
Deposits 10 322 529 (42)
Proceeds from Exercise of Stock
Options 3 118 105 35
Net Cash Provided by (Used in)
Financing Activities 13 440 (9,866) (7)
Net Increase (Decrease) in Cash and
Cash Equivalents 761 24,606 26,917 (5,313)
Cash and Cash Equivalents at Beginning
of Period 2,640 85,384 58,467 65,532
Cash and Cash Equivalents at End of
Period $3,401 $109,990 $85,384 $60,219
Note: (1) Amounts in NTD have been translated into USD at the rate of
NTD32.337, the weighted average rate for the three months
ended March 31, 2006.
(2) Certain prior period amounts have been reclassified to
conform to the current period presentation.
(3) Marketable financial instruments include available-for-sale
and held-to-maturity financial ssets, which non-current
portions are classified as long-term investments in Balance
Sheet.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Condensed Balance Sheets (Consolidated)
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
March 31, 2006(Uuaudited)
ASSETS USD NTD %
Current Assets
Cash and Cash Equivalents $3,735 $121,251 21.8
Investments in Marketable Financial
Instruments 2,187 71,006 12.8
Accounts Receivable - Trade, Net 1,171 38,012 6.8
Inventories, Net 567 18,409 3.3
Other Current Assets 327 10,572 2.0
Total Current Assets 7,987 259,250 46.7
Long-Term Investment 1,070 34,726 6.3
Properties, Plant and Equipment 20,191 655,396 118.0
Less: Accumulated Depreciation (12,750) (413,852) (74.5)
Properties, Plant and Equipment,
Net 7,441 241,544 43.5
Other Assets 609 19,772 3.5
Total Assets $17,107 $555,292 100.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term loan payable $-- $-- 0.0
Accounts Payables 329 10,687 1.9
Payables to Contractors and
Equipment Suppliers 360 11,680 2.1
Accrued Expenses and Other Current
Liabilities 493 15,996 2.9
Current Portion of Bonds Payable 77 2,505 0.5
Total Current Liabilities 1,259 40,868 7.4
Bonds Payable 524 17,000 3.1
Other Long Term Liabilities 579 18,813 3.3
Total Liabilities 2,362 76,681 13.8
Shareholders' Equity Attributable to
Shareholders of the Parent
Common Stock 7,620 247,331 44.5
Capital Surplus 1,762 57,208 10.3
Retained Earnings 5,403 175,378 31.6
Treasury Stock (28) (918) (0.2)
Others (33) (1,066) (0.1)
Total equity attributable to
shareholders of the parent 14,724 477,933 86.1
Minority interest 21 678 0.1
Total shareholders' equity 14,745 478,611 86.2
Total Liabilities & Shareholders'
Equity $17,107 $555,292 100.0
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$32.46 as of March 31, 2006.
(2) Certain prior period balances have been reclassified to
conform to the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Condensed Balance Sheets (Consolidated)
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
December 31, March 31,
2005 (Audited) 2005 (Unaudited)
(2) (2)
ASSETS NTD % NTD %
Current Assets
Cash and Cash Equivalents $96,484 18.6 $71,541 14.5
Investments in Marketable Financial
Instruments 48,780 9.4 53,240 10.8
Accounts Receivable - Trade, Net 38,478 7.4 23,846 4.8
Inventories, Net 17,728 3.4 14,688 3.0
Other Current Assets 10,785 2.1 9,740 2.0
Total Current Assets 212,255 40.9 173,055 35.1
Long-Term Investment 42,428 8.2 39,209 7.9
Properties, Plant and Equipment 642,948 123.7 609,807 123.5
Less: Accumulated Depreciation (398,125) (76.6) (347,886) (70.5)
Properties, Plant and Equipment,
Net 244,823 47.1 261,921 53.0
Other Assets 20,003 3.8 19,522 4.0
Total Assets $519,509 100.0 $493,707 100.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term loan payable $328 0.1 $377 0.1
Accounts Payables 11,165 2.1 8,321 1.7
Payables to Contractors and
Equipment Suppliers 9,066 1.7 12,293 2.5
Accrued Expenses and Other Current
Liabilities 14,558 2.8 9,791 2.0
Current Portion of Bonds Payable 5 0.1 10,505 2.1
Total Current Liabilities 35,122 6.8 41,287 8.4
Bonds Payable 19,500 3.8 19,500 3.9
Other Long Term Liabilities 18,649 3.5 16,832 3.4
Total Liabilities 73,271 14.1 77,619 15.7
Shareholders' Equity Attributable to
Shareholders of the Parent
Common Stock 247,300 47.6 232,529 47.1
Capital Surplus 57,118 11.0 56,574 11.5
Retained Earnings 142,771 27.5 130,549 26.4
Treasury Stock (918) (0.2) (1,572) (0.3)
Others (641) (0.1) (2,726) (0.5)
Total equity attributable to
shareholders of the parent 445,630 85.8 415,354 84.2
Minority interest 608 0.1 734 0.1
Total shareholders' equity 446,238 85.9 416,088 84.3
Total Liabilities & Shareholders'
Equity $519,509 100.0 $493,707 100.0
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$32.46 as of March 31, 2006.
(2) Certain prior period balances have been reclassified to
conform to the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Condensed Balance Sheets (Consolidated)
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
QoQ YoY
ASSETS Amount % Amount %
Current Assets
Cash and Cash Equivalents $24,767 25.7 $49,710 69.5
Investments in Marketable Financial
Instruments 22,226 45.6 17,766 33.4
Accounts Receivable - Trade, Net (466) (1.2) 14,166 59.4
Inventories, Net 681 3.8 3,721 25.3
Other Current Assets (213) (2.0) 832 8.5
Total Current Assets 46,995 22.1 86,195 49.8
Long-Term Investment (7,702) (18.2) (4,483) (11.4)
Properties, Plant and Equipment 12,448 1.9 45,589 7.5
Less: Accumulated Depreciation (15,727) 4.0 (65,966) 19.0
Properties, Plant and Equipment,
Net (3,279) (1.3) (20,377) (7.8)
Other Assets (231) (1.2) 250 1.3
Total Assets $35,783 6.9 $61,585 12.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term loan payable ($328) (100.0) ($377) (100.0)
Accounts Payables (478) (4.3) 2,366 28.4
Payables to Contractors and
Equipment Suppliers 2,614 28.8 (613) (5.0)
Accrued Expenses and Other Current
Liabilities 1,438 9.9 6,205 63.4
Current Portion of Bonds Payable 2,500 45545.6 (8,000) (76.2)
Total Current Liabilities 5,746 16.4 (419) (1.0)
Bonds Payable (2,500) (12.8) (2,500) (12.8)
Other Long Term Liabilities 164 0.9 1,981 11.8
Total Liabilities 3,410 4.7 (938) (1.2)
Shareholders' Equity Attributable to
Shareholders of the Parent
Common Stock 31 0.0 14,802 6.4
Capital Surplus 90 0.2 634 1.1
Retained Earnings 32,607 22.8 44,829 34.3
Treasury Stock 0 0.0 654 (41.6)
Others (425) 66.3 1,660 (60.9)
Total equity attributable to
shareholders of the parent 32,303 7.2 62,579 15.1
Minority interest 70 11.4 (56) (7.7)
Total shareholders' equity 32,373 7.3 62,523 15.0
Total Liabilities & Shareholders'
Equity $35,783 6.9 $61,585 12.5
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$32.46 as of March 31, 2006.
(2) Certain prior period balances have been reclassified to
conform to the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Income Statements (Consolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 And March 31, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
Q1 2006
USD NTD %
Net Sales $2,407 $77,850 100.0
Cost of Sales (1,240) (40,123) (51.5)
Gross Profit 1,167 37,727 48.5
Operating Expenses
Research and Development Expenses (114) (3,689) (4.7)
General and Administrative
Expenses (59) (1,919) (2.5)
Sales and Marketing Expenses (38) (1,217) (1.6)
Total Operating Expenses (211) (6,825) (8.8)
Income from Operations 956 30,902 39.7
Non-Operating Incomes, Net 43 1,417 1.8
Investment Gains 19 600 0.8
Income before Income Tax 1,018 32,919 42.3
Income Tax (Expenses) Benefits (58) (1,855) (2.4)
Net Income Before Cumulative Effect
of Changes in Accounting
Principles 960 31,064 39.9
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) 50 1,607 2.1
Net Income $1,010 $32,671 42.0
Attributable to:
Shareholders of the parent $1,008 $32,607 41.9
Minority Interest 2 64 0.1
$1,010 $32,671 42.0
Earnings per Share - Diluted $0.04 $1.32
Earnings per ADR (2) $0.20 $6.60
Weighted Average Outstanding Shares
('M) (3) 24,721
Note: (1) Amounts in NTD have been translated into USD at the weighted
average rate of NTD32.337 for the first quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were
24,721M shares for 1Q06 and 24,684M shares for 1Q05 after
the retroactive adjustments for stock dividends and stock
bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Income Statements (Consolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 And March 31, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
Q4 2005 Q1 2005
NTD % NTD %
Net Sales $79,228 100.0 $56,857 100.0
Cost of Sales (37,914) (47.9) (35,179) (61.9)
Gross Profit 41,314 52.1 21,678 38.1
Operating Expenses
Research and Development Expenses (3,570) (4.5) (3,412) (6.0)
General and Administrative
Expenses (1,910) (2.4) (2,513) (4.4)
Sales and Marketing Expenses (1,424) (1.8) (583) (1.0)
Total Operating Expenses (6,904) (8.7) (6,508) (11.4)
Income from Operations 34,410 43.4 15,170 26.7
Non-Operating Incomes, Net 639 0.8 738 1.3
Investment Gains 539 0.7 397 0.7
Income before Income Tax 35,589 44.9 16,305 28.7
Income Tax (Expenses) Benefits (1,692) (2.1) 513 0.9
Net Income Before Cumulative Effect
of Changes in Accounting Principles 33,897 42.8 16,818 29.6
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) 0 0.0 0 0.0
Net Income $33,897 42.8 $16,818 29.6
Attributable to:
Shareholders of the parent $33,900 42.8 $16,818 29.6
Minority Interest (3) 0.0 0 0.0
$33,897 42.8 $16,818 29.6
Earnings per Share - Diluted $1.37 $0.68
Earnings per ADR (2) $6.86 $3.41
Weighted Average Outstanding Shares
('M) (3) 24,693 24,684
Note: (1) Amounts in NTD have been translated into USD at the weighted
average rate of NTD32.337 for the first quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were
24,721M shares for 1Q06 and 24,684M shares for 1Q05 after
the retroactive adjustments for stock dividends and stock
bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Income Statements (Consolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 And March 31, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
QoQ YoY
Amount % Amount %
Net Sales ($1,378) (1.7) $20,993 36.9
Cost of Sales (2,209) 5.8 (4,944) 14.1
Gross Profit (3,587) (8.7) 16,049 74.0
Operating Expenses
Research and Development Expenses (119) 3.3 (277) 8.1
General and Administrative
Expenses (9) 0.5 594 (23.6)
Sales and Marketing Expenses 207 (14.5) (634) 108.7
Total Operating Expenses 79 (1.1) (317) 4.9
Income from Operations (3,508) (10.2) 15,732 103.7
Non-Operating Incomes, Net 778 121.8 679 92.0
Investment Gains 61 11.3 203 51.1
Income before Income Tax (2,670) (7.5) 16,614 101.9
Income Tax (Expenses) Benefits (163) 9.6 (2,368) (461.6)
Net Income Before Cumulative Effect
of Changes in Accounting Principles (2,833) (8.4) 14,246 84.7
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) 1,607 -- 1,607 --
Net Income ($1,226) (3.6) $15,853 94.3
Attributable to:
Shareholders of the parent ($1,293) (3.8) $15,789 93.9
Minority Interest 67 (2,233.3) 64 -
($1,226) (3.6) $15,853 94.3
Earnings per Share - Diluted ($0.05) (3.9) $0.64 93.6
Earnings per ADR (2) ($0.27) (3.9) $3.19 93.6
Weighted Average Outstanding Shares
('M) (3)
Note: (1) Amounts in NTD have been translated into USD at the weighted
average rate of NTD32.337 for the first quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were
24,721M shares for 1Q06 and 24,684M shares for 1Q05 after
the retroactive adjustments for stock dividends and stock
bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Statements of Cash Flows (Consolidated)
For the Three Months Ended March 31, 2006,
December 31, 2005 and March 31, 2005
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
1Q 2005
1Q 2006 4Q 2005 (2)
USD NTD NTD NTD
Cash Flows from Operating Activities:
Net Income $1,008 $32,607 $33,900 $16,818
Net Income attributable to
minority interest 2 64 (3) --
Depreciation & Amortization 548 17,734 18,664 18,453
Deferred Income Tax (19) (609) (953) (546)
Investment Loss(Income) From
Equity Method Investees (19) (600) (539) (397)
Changes in Working Capital &
Others (7) (282) (1,511) 4,301
Net Cash Provided from Operating
Activities 1,513 48,914 49,558 38,629
Cash Flows from Investing Activities:
Acquistions:
Marketable Financial
Instruments (3) (1,012) (32,731) (19,744) (20,395)
Financial assets carried at
cost (4) (122) -- (83)
Property, Plant and Equipment (356) (11,510) (13,618) (41,530)
Long-term investments by equity
method -- -- (7,615) --
Proceeds from disposal or matiruty
of:
Marketable Financial
Instruments (3) 616 19,931 21,501 20,394
Financial assets carried at
cost -- -- 12 8
Property, Plant and Equipment 14 462 206 181
Long-term investments by equity
method -- -- 6,504 --
Decrease in Others (4) (142) (102) (287)
Net Cash Used By Investing
Activities (746) (24,112) (12,856) (41,712)
Cash Flows from Financing Activities:
Repurchase of treasury stock -- -- -- 26
Cash Dividend - Common Shares -- -- -- --
Bonus Paid to Employees, Directors
and Supervisors -- -- -- --
Repayment of Long Term Bonds
Payable -- (1) (9,504) --
Increase(Decrease) in Guarantee
Deposits 10 322 531 (41)
Proceeds from Exercise of Stock
Options 4 117 105 35
Increase(Decrease) in Others (10) (322) (1,149) --
Net Cash Provided From (Used By)
Financing Activities 4 116 (10,017) 20
Net Increase (Decrease) in Cash and
Cash Equivalents 771 24,918 26,684 (3,063)
Effect of exchange rate changes on
cash and cash equivalents and others (5) (151) 363 (14)
Effect of first inclusion for
consolidation of certain subsidiaries -- -- (145) 315
Cash and Cash Equivalents at Beginning
of Period 2,984 96,484 69,582 74,302
Cash and Cash Equivalents at End of
Period $3,750 $121,251 $96,484 $71,540
Note: (1) Amounts in NTD have been translated into USD at the rate of
NTD32.337 , the weighted average rate for the three months
ended March 31, 2006.
(2) Certain prior period balances have been reclassified to
conform to the current period presentation.
(3) Marketable financial instruments include available-for-sale
and held-to-maturity financial assets, which non-current
portions are classified as long-term investments in Balance
Sheet.
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 20, 2006, 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 / Eric Chiang / Harrison Hsueh / Julie Wei
Investor Relations Division
TSMC
Email: invest@tsmc.com
Tel: +886-3-568-2085/ 2087/ 2088/ 2086
SOURCE Taiwan Semiconductor Manufacturing Company Limited
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Related links:
http://www.tsmc.com
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf
CONTACT:
Elizabeth Sun or Eric Chiang or Harrison
Hsueh or Julie Wei, all of TSMC, invest@tsmc.com, or
+886-3-568-2085, or +886-3-568-2087, or +886-3-568-2088, or
+886-3-568-2086
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