HSIN-CHU, Taiwan, Oct. 26 /Xinhua-PRNewswire-FirstCall/ -- TSMC today
announced consolidated revenue of NT$82.48 billion, net income of NT$32.49
billion, and diluted earnings per share of NT$1.26 (US$0.19 per ADS unit)
for the third quarter ended September 30, 2006.
Year-over-year, third quarter revenue increased 17% while net income
and diluted EPS increased 32.7% and 32.5%, respectively. On a sequential
basis, third quarter results represent a 0.4% increase in revenue, and a
decrease of 4.4% both in net income and in diluted EPS. All figures were
prepared in accordance with R.O.C. GAAP on a consolidated basis.
Although third quarter business was affected by inventory correction,
better than expected demand in computer related applications led to third
quarter revenue surpassing the guidance slightly. Advanced process
technologies (0.13-micron and below) accounted for 49% of wafer revenues
while revenues from 90-nanometer process technology alone was 24% of the
total wafer sales. Both gross and operating margins reached the high end of
guidance with gross margin being 49.9% and operating margin 40.8%. Net
margin decreased 2 percentage points to 39.4% from the previous quarter.
"The current inventory correction which started in the third quarter is
expected to continue during the fourth quarter," said Lora Ho, VP and Chief
Financial Officer of TSMC. "We expect the overall demand in all three major
segments to decline sequentially," said Ho. "Based on our current business
outlook, management's expectations for fourth quarter 2006 performance are
as follows":
-- Revenue to be between NT$74 billion and NT$76 billion;
-- Gross profit margin to be between 45% and 47%;
-- Operating profit margin to be between 35% and 37%.
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, October 26, 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 1-617-213-8054 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 An archived version of the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, 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 .
Topics in This Report
-- Revenue Analysis
-- Capacity
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow & CapEx
-- Recap of Recent Important Events & Announcements
Operating Results Review:
Summary:
(Amounts are on consolidated basis and are in NT$ billion except noted
otherwise)
3Q06 2Q06 3Q05 QoQ YoY
EPS (NT$ per com. shr.) 1.26 1.32 0.95 (4.4%) 32.5%
(US$ per ADR unit) 0.19 0.20 0.15
Consolidated Net Sales 82.48 82.12 70.50 0.4% 17.0%
Gross Profit 41.13 42.50 30.96 (3.2%) 32.9%
Gross Margin 49.9% 51.8% 43.9%
Operating Expense (7.50) (7.18) (6.78) 4.5% 10.6%
Non-Operating Items 1.03 0.95 0.29 8.7% 254.9%
Consolidated Net Income 32.49 34.00 24.49 (4.4%) 32.7%
Net Profit Margin 39.4% 41.4% 34.7%
Wafer Shipment (kpcs 8 inch-equiv.) 1,890 1,869 1,527 1.2% 23.8%
Remarks:
The third quarter consolidated EPS of NT$1.26 represents a 32.5%
increase over the same period last year and a 4.4% sequential decline. The
consolidated operating results of 3Q06 are summarized below:
Third quarter net sales increased by 17% year-over-year to reach
NT$82.48 billion compared to NT$70.5 billion reported in 3Q05. On a
sequential basis, net sales increased by 0.4% compared to NT$82.12 billion
in the previous quarter. Third quarter net sales slightly surpassed our
guidance due to better than expected demand in computer related
applications.
Gross profit for 3Q06 was NT$41.13 billion, representing a
year-over-year increase of 32.9% and a sequential decline of 3.2%. Gross
margin was 49.9% in the third quarter, down from 51.8% in the previous
quarter.
Operating expenses were NT$7.5 billion or 9.1% of the net sales. The
combined result from non-operating income and long-term investments was a
gain of NT$1.03 billion.
Consolidated net income attributable to shareholders of the parent
company was NT$32.49 billion, up 32.7% over the same period last year and
down 4.4% sequentially. Net profit margin was 39.4%.
I. Consolidated Revenue Analysis
I. Wafer Sales Analysis
By Application 3Q06 2Q06 3Q05
Computer 28% 30% 30%
Communication 45% 44% 41%
Consumer 20% 20% 23%
Industrial/Others 5% 5% 5%
Memory 2% 1% 1%
By Technology 3Q06 2Q06 3Q05
N90- 24% 24% 10%
0.11/0.13um 25% 25% 33%
0.15/0.18um 33% 32% 35%
0.25/0.35um 13% 14% 16%
0.50um+ 5% 5% 6%
By Customer Type 3Q06 2Q06 3Q05
Fabless/System 71% 72% 71%
IDM 29% 28% 29%
By Geography 3Q06 2Q06 3Q05
North America 78% 77% 75%
Asia Pacific 10% 10% 11%
Europe 8% 9% 9%
Japan 4% 4% 5%
Consolidated Revenue Analysis:
Consolidated net sales were NT$82.48 billion in the third quarter of
2006, up 0.4% from NT$82.12 billion in the previous quarter, mainly driven
by increased demand in communication and consumer related applications.
On a sequential basis, revenues from consumer and communication
applications both increased by 2%, while revenues from computer
applications declined by 6%.
Revenues from advanced technologies (0.13-micron and below) and 90nm
accounted for 49% and 24% of total wafer sales, respectively, flat from the
previous quarter.
Revenues from IDM customers accounted for 29% of total wafer sales
during the quarter, up slightly from 28% in the previous quarter.
Geographically, revenues from North America accounted for 78% of total
wafer sales. Meanwhile, sales from Asia Pacific, Europe and Japan accounted
for 10%, 8% and 4% of wafer sales, respectively.
II. Capacity
II. Capacity
Fab / (Wafer size) 1Q06 2Q06 3Q06 4Q06 2006
(A) (A) (Est.) (Est.) (Est.)
Fab-2 (6") (Note 1) 244 258 258 266 1,025
Fab-3 (8") 246 252 262 258 1,021
Fab-5 (8") 135 138 147 153 573
Fab-6 (8") 215 222 233 248 918
Fab-7 (8") 33 23 4 0 60
Fab-8 (8") 231 233 234 248 946
Fab-12 (12") (Note 2) 142 150 157 166 616
Fab-14 (12") (Note 2) 61 66 86 105 318
WaferTech (8") 99 100 101 104 404
TSMC (Shanghai)(8") 48 52 73 90 262
TSMC total capacity
(8" equiv.Kpcs) 1,602 1,650 1,748 1,860 6,860
SSMC (8") 49 50 51 52 202
Total managed capacity
(8'' equiv.Kpcs) 1,651 1,700 1,799 1,912 7,062
Note: 1. Figures represent number of 6" wafers. Conversion to
8"-equivalent wafers is by dividing this number by 1.78
2. 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 3Q06 was 1,799K 8-inch equivalent
wafers, 5.8% higher than the 1,700K 8-inch equivalent wafers in 2Q06.
TSMC managed capacity in 4Q06 will increase by 6.3% sequentially to
reach 1,912K 8-inch equivalent wafers.
Overall installed capacity for year 2006 is expected to be
approximately 7,062K 8-inch equivalent wafers, unchanged from our previous
forecast provided in July 2006.
III. Consolidated Profit & Expense Analysis
III - 1. Consolidated Gross Profit Analysis
(Amount: NT$ billion) 3Q06 2Q06 3Q05
COGS 41.3 39.6 39.5
Depreciation 16.8 16.5 17.2
Other MFG Cost 24.5 23.1 22.3
Gross Profit 41.1 42.5 31.0
Gross Margin 49.9% 51.8% 43.9%
Consolidated Gross Profit Analysis:
Consolidated gross profit for the third quarter of 2006 was NT$41.1
billion, representing a year-over-year increase of 32.9% and a sequential
decline of 3.2%. Consolidated gross margin declined by 1.9 percentage
points sequentially to 49.9%, largely due to lower capacity utilization.
III - 2. Consolidated Operating Expenses
(Amount: NT$ billion) 3Q06 2Q06 3Q05
Total Operating Exp. 7.50 7.18 6.78
SG&A 3.27 3.13 3.31
Research & Development 4.23 4.05 3.47
Consolidated Operating Expenses:
Consolidated operating expenses for 3Q06 were NT$7.5 billion, slightly
higher than the previous quarter. Higher R&D expenditures were mainly due
to increased expenditures on 45nm and 65nm projects. The increase in SG&A
expenditures was primarily the result of Fab 14 Phase II opening expenses.
Total operating expenses represented 9.1% of net sales, compared to 8.8%
for the previous quarter.
III - 3. Consolidated Non-Operating Items
(Amount: NT$ million) 3Q06 2Q06 3Q05
Non-Operating Income/(Exp.) 322 299 19
Net Interest Income/(Exp.) 923 924 280
Other Non-Operating (601) (625) (261)
L-T Investments 709 650 271
SSMC 403 471 210
Others 306 179 61
Total Non-Operating Items 1,031 949 290
Consolidated Non-Operating Items:
Combined result from non-operating income and long-term investments was
a gain of NT$1 billion for 3Q06.
Consolidated non-operating income totaled NT$322 million during the
third quarter of 2006, compared to an income of NT$299 million in the
previous quarter.
Consolidated net investment income was NT$709 million in this quarter,
compared to an income of NT$650 million in 2Q06. The increase was primarily
due to improved operating performance at certain affiliated companies.
IV. Financial Condition Review
IV - 1. Liquidity Analysis*
(Amount: NT$ Billion) 3Q06 2Q06 3Q05
Cash & Marketable Securities 164.1 211.6 119.0
Accounts Receivable - Trade 37.7 38.0 39.1
Inventory 20.3 20.1 16.2
Total Current Assets 228.3 279.7 179.1
Accounts Payable 26.2 27.5 21.1
Accrued Liabilities and Others 19.4 82.8 25.5
Total Current Liabilities 45.6 110.3 46.6
Current Ratio (x) 5.0 2.5 3.8
Net Working Capital 182.7 169.4 132.6
* Certain prior period amounts have been reclassified to conform with
current period presentation.
Liquidity Analysis:
Consolidated cash & marketable securities decreased by NT$47.5 billion
in this quarter, mainly due to an NT$61.7B payment of cash dividends and an
NT$3.2B payment of annual employee profit sharing, offset in part by the
free cash flow generated during the quarter. As a result, TSMC ended the
quarter with total current assets of NT$228.3 billion, compared to NT$279.7
billion in the previous quarter.
Consolidated current liabilities were NT$45.6 billion at the end of the
quarter, NT$64.7 billion lower than the previous quarter, mainly due to the
payment of cash dividends and annual employee profit sharing accrued in the
previous quarter.
As a result, net consolidated working capital increased to NT$182.7
billion and current ratio improved to 5.0x.
IV - 2. Consolidated Receivable/Inventory Days
3Q06 2Q06 3Q05
Days of Receivable 43 44 47
Days of Inventory 48 47 38
Consolidated Receivable/Inventory Days Trend:
Consolidated days of receivable decreased to 43 days in 3Q06, compared
to 44 days in the previous quarter.
Consolidated days of inventory increased to 48 days from 47 days in the
second quarter of 2006.
IV - 3. Consolidated Debt Service*
(Amount: NT$ Billion) 3Q06 2Q06 3Q05
Cash & Marketable Securities 164.1 211.6 119.0
Interest-Bearing Debt 27.6 27.2 39.0
Net Cash Reserves 136.5 184.4 80.0
* Certain prior period amounts have been reclassified to conform with
current period presentation.
Consolidated Debt Service:
As a result of the payment of cash dividends and annual employee profit
sharing, consolidated net cash reserves -- defined as the excess of cash
and short-term marketable securities over interest-bearing debt --
decreased by NT$47.9 billion to NT$136.5 billion in 3Q06.
Consolidated interest-bearing debt increased slightly to NT$27.6
billion as of September 30, 2006.
V. Cash Flow & CapEx
V - 1. Consolidated Cash Flow Analysis*
(Amount: NT$ billion) 3Q06 2Q06 3Q05
Net Income 32.5 34.0 24.5
Depreciation & Amortization 18.4 17.9 19.1
Other Op Sources/(Uses) 1.8 (1.5) (3.7)
Total Op Sources/(Uses) 52.7 50.4 39.9
Capital Expenditure (28.3) (21.4) (10.5)
Marketable Financial Instruments (8.6) (7.8) (0.2)
Other Investing Sources/(Uses) (0.1) (1.1) (0.1)
Net Investing Sources/(Uses) (37.0) (30.3) (10.8)
Cash Dividends (61.7) 0.0 (46.4)
Employee Profit Sharing (3.2) (0.3) (3.1)
Other Financing Sources/(Uses) 0.2 0.4 1.5
Net Financing Sources/(Uses) (64.7) 0.1 (48.0)
Net Cash Position Changes (49.0) 20.2 (18.9)
Exchange Rate Changes & Others 0.5 (0.0) 0.1
Ending Cash Balance 92.9 141.5 69.6
* Certain prior period amounts have been reclassified to conform with
the current period presentation.
Summary of Consolidated Cash Flow:
During this quarter, TSMC generated NT$52.7 billion from operating
activities, mainly from net income of NT$32.5 billion and depreciation &
amortization of NT$18.4 billion.
Net cash used in investment activities totaled NT$37 billion, mainly as
a result of an NT$28.3 billion in capital spending and an NT$8.6 billion
net increase in marketable financial instruments.
Net cash used in financing activities was NT$64.7 billion during this
quarter, as we paid NT$61.7 billion in cash dividends and NT$3.2 billion in
annual employee profit sharing.
As a result, TSMC ended the quarter with a cash balance of NT$92.9
billion, NT$48.5 billion lower than in 2Q06.
V-2. Consolidated Operating and Free Cash Flows
Consolidated Operating and Free Cash Flows:
TSMC continues to generate strong operating cash flows and free cash
flows. Cash flows generated from operating activities were NT$52.7 billion,
NT$2.3 billion higher than 2Q06. Consolidated free cash flows totaled
NT$24.4 billion in 3Q06, NT$4.6 billion lower than the NT$29 billion
generated in the previous quarter, mainly due to higher level of capital
expenditures in 3Q06.
To view V - 2. Consolidated Operating and Free Cash Flows, please visit
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf .
V - 3. Capital Spending
(Amount: US$ Million) 1Q06 2Q06 3Q06 YTD
TSMC 344 653 852 1,849
TSMC (Shanghai) & WaferTech 12 11 14 37
Total TSMC 356 664 866 1,886
Capital Spending:
Capital spending for TSMC consolidated group totaled US$866 million
during the quarter. Most of the spending was for the purchase of 12-inch
production equipment.
For year 2006, total capital expenditure for TSMC consolidated group is
expected to be about US$2.6 billion.
VI. Recap of Recent Important Events & Announcements
-- TSMC and Nvidia Celebrate New Milestone: 500 Million Processors
(2006/10/24)
-- TSMC is Voted by the CommonWealth Magazine as the Most Admired
Company in Taiwan for the Tenth Consecutive Time (2006/10/16)
-- TSMC is Ranked the Highest in Taiwan Among Asia Top 200 by The Wall
Street Journal Asia (2006/10/16)
-- TSMC Holds 2006 Supply Chain Management Forum and Recognizes
Outstanding Suppliers (2006/09/14)
-- TSMC Receives Outstanding Corporate Innovation Award from the
Ministry of Economic Affairs (2006/09/07)
-- TSMC Files Lawsuit Against SMIC for Breach of the 2005
Settlement Agreement with TSMC and Misappropriation of TSMC's Trade
Secrets (2006/08/25)
-- TSMC Announces Winners of First TSMC Outstanding Student Research
Award (2006/08/03)
-- TSMC Reaffirms Strong Foundry Partnership with ATI (2006/07/24)
* Please visit TSMC's Web site ( http://www.tsmc.com ) for details about
these and other announcements.
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)
September 30, 2006 June 30, 2006
(Unaudited) (Audited)
ASSETS USD NTD % NTD %
Current Assets
Cash and Cash Equivalents $2,807 $92,903 16.5 $141,452 23.8
Investments in Marketable
Financial Instruments 2,151 71,192 12.6 70,139 11.8
Accounts Receivable - Trade 1,140 37,726 6.7 37,969 6.4
Inventories, Net 614 20,338 3.6 20,051 3.4
Other Current Assets 186 6,149 1.1 10,079 1.7
Total Current Assets 6,898 228,308 40.5 279,690 47.1
Long-Term Investments 1,543 51,060 9.1 42,778 7.2
Property, Plant and Equipment 21,336 706,191 125.4 681,123 114.7
Less: Accumulated Depreciation (13,460) (445,525) (79.1) (429,993) (72.4)
Property, Plant and
Equipment, Net 7,876 260,666 46.3 251,130 42.3
Other Assets 704 23,314 4.1 20,145 3.4
Total Assets $17,021 $563,348 100.0 $593,743 100.0
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Short-Term Bank Loans $-- $-- -- $-- --
Accounts Payables 322 10,669 1.9 10,282 1.7
Payables to Contractors and
Equipment Suppliers 469 15,507 2.8 17,214 2.9
Accrued Expenses and Other
Current Liabilities 510 16,885 3.0 80,300 13.6
Current Portion of Bonds
Payable 76 2,505 0.4 2,505 0.4
Total Current Liabilities 1,377 45,566 8.1 110,301 18.6
Bonds Payable 514 17,000 3.0 17,000 2.9
Other Long-Term Liabilities 571 18,919 3.4 18,943 3.1
Total Liabilities 2,462 81,485 14.5 146,244 24.6
Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock 7,803 258,258 45.8 258,234 43.5
Capital Surplus 1,627 53,858 9.6 53,822 9.1
Retained Earnings 5,112 169,213 30.0 136,723 23.0
Treasury Stock (28) (918) (0.2) (918) (0.2)
Others 23 725 0.1 (1,029) (0.1)
Total Equity Attributable
to Shareholders of the
Parent 14,537 481,136 85.4 446,832 75.3
Minority Interest 22 727 0.1 667 0.1
Total Shareholders' Equity 14,559 481,863 85.5 447,499 75.4
Total Liabilities &
Shareholders' Equity $17,021 $563,348 100.0 $593,743 100.0
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$33.098 as of September 30, 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)
September 30, 2005
(Unaudited) (2)
ASSETS NTD %
Current Assets
Cash and Cash Equivalents $69,582 14.0
Investments in Marketable Financial
Instruments 49,410 10.0
Accounts Receivable - Trade 39,140 7.9
Inventories, Net 16,239 3.3
Other Current Assets 4,776 0.9
Total Current Assets 179,147 36.1
Long-Term Investments 40,285 8.1
Property, Plant and Equipment 635,513 128.1
Less: Accumulated Depreciation (384,200) (77.4)
Property, Plant and Equipment,
Net 251,313 50.7
Other Assets 25,371 5.1
Total Assets $496,116 100.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-Term Bank Loans $1,124 0.2
Accounts Payables 9,851 2.0
Payables to Contractors and
Equipment Suppliers 11,247 2.3
Accrued Expenses and Other Current
Liabilities 13,848 2.8
Current Portion of Bonds Payable 10,505 2.1
Total Current Liabilities 46,575 9.4
Bonds Payable 19,500 3.9
Other Long-Term Liabilities 18,144 3.7
Total Liabilities 84,219 17.0
Shareholders' Equity Attributable to
Shareholders of the Parent
Capital Stock 247,273 49.8
Capital Surplus 56,777 11.4
Retained Earnings 108,871 21.9
Treasury Stock (1,550) (0.3)
Others (260) (0.1)
Total Equity Attributable to
Shareholders of the Parent 411,111 82.9
Minority Interest 786 0.2
Total Shareholders' Equity 411,897 83.0
Total Liabilities & Shareholders'
Equity $496,116 100.0
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$33.098 as of September 30, 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 ($48,549) (34.3) $23,321 33.5
Investments in Marketable Financial
Instruments 1,053 1.5 21,782 44.1
Accounts Receivable - Trade (243) (0.6) (1,414) (3.6)
Inventories, Net 287 1.4 4,099 25.2
Other Current Assets (3,930) (39.0) 1,373 28.8
Total Current Assets (51,382) (18.4) 49,161 27.4
Long-Term Investments 8,282 19.4 10,775 26.7
Property, Plant and Equipment 25,068 3.7 70,678 11.1
Less: Accumulated Depreciation (15,532) 3.6 (61,325) 16.0
Property, Plant and Equipment, Net 9,536 3.8 9,353 3.7
Other Assets 3,169 15.7 (2,057) (8.1)
Total Assets ($30,395) (5.1) $67,232 13.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-Term Bank Loans $-- -- ($1,124) (100.0)
Accounts Payables 387 3.8 818 9.1
Payables to Contractors and Equipment
Suppliers (1,707) (9.9) 4,260 37.9
Accrued Expenses and Other Current
Liabilities (63,415) (79.0) 3,037 21.4
Current Portion of Bonds Payable 0 (0.0) (8,000) (76.2)
Total Current Liabilities (64,735) (58.7) (1,009) (2.2)
Bonds Payable -- -- (2,500) (12.8)
Other Long-Term Liabilities (24) (0.1) 775 4.3
Total Liabilities (64,759) (44.3) (2,734) (3.2)
Shareholders' Equity Attributable to
Shareholders of the Parent
Capital Stock 24 0.0 10,985 4.4
Capital Surplus 36 0.1 (2,919) (5.1)
Retained Earnings 32,490 23.8 60,342 55.4
Treasury Stock -- -- 632 (40.8)
Others 1,754 (170.5) 985 (378.8)
Total Equity Attributable to
Shareholders of the Parent 34,304 7.7 70,025 17.0
Minority Interest 60 9.1 (59) (7.4)
Total Shareholders' Equity 34,364 7.7 69,966 17.0
Total Liabilities & Shareholders'
Equity ($30,395) (5.1) $67,232 13.6
Note: (1) Amounts in NTD have been translated into USD at the rate of
NT$33.098 as of September 30, 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 September 30, 2006, June 30, 2006, and
September 30, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
Q3 2006 Q2 2006
USD NTD % NTD %
Net Sales $2,518 $82,476 100.0 $82,118 100.0
Cost of Sales (1,262) (41,344) -50.1 (39,620) -48.2
Gross Profit 1,256 41,132 49.9 42,498 51.8
Operating Expenses
Research and Development
Expenses (129) (4,231) -5.1 (4,053) -4.9
General and Administrative
Expenses (74) (2,424) -2.9 (2,226) -2.7
Sales and Marketing Expenses (26) (845) -1.0 (896) -1.2
Total Operating Expenses (229) (7,500) -9.1 (7,175) -8.8
Income from Operations 1,027 33,632 40.8 35,323 43.0
Non-Operating Income, Net 10 322 0.4 299 0.4
Investment Gains 22 709 0.9 650 0.8
Income before Income Tax 1,058 34,663 42.0 36,272 44.2
Income Tax (Expenses) Benefits (65) (2,144) -2.6 (2,281) -2.8
Net Income 993 32,519 39.4 33,991 41.4
Attributable to:
Shareholders of the parent 992 32,489 39.4 34,002 41.4
Minority Interest 1 30 0.0 (11) 0.0
$993 $32,519 39.4 $33,991 41.4
Earnings per Share - Diluted $0.04 $1.26 $1.32
Earnings per ADR (2) $0.19 $6.29 $6.59
Weighted Average Outstanding
Shares - Diluted ('M) (3) 25,809 25,809
Note:
(1) Amounts in NTD have been translated into USD at the weighted average
rate of NTD32.751 for the third quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,776M
shares for 3Q05 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 September 30, 2006, June 30, 2006, and
September 30, 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
Q3 2005
NTD %
Net Sales $70,501 100.0
Cost of Sales (39,544) -56.1
Gross Profit 30,957 43.9
Operating Expenses
Research and Development Expenses (3,473) -4.9
General and Administrative Expenses (2,410) -3.4
Sales and Marketing Expenses (897) -1.3
Total Operating Expenses (6,780) -9.6
Income from Operations 24,177 34.3
Non-Operating Income, Net 19 0.0
Investment Gains 271 0.4
Income before Income Tax 24,467 34.7
Income Tax (Expenses) Benefits 57 0.1
Net Income 24,524 34.8
Attributable to:
Shareholders of the parent 24,488 34.7
Minority Interest 36 0.1
$24,524 34.8
Earnings per Share - Diluted $0.95
Earnings per ADR (2) $4.75
Weighted Average Outstanding Shares -
Diluted ('M) (3) 25,776
Note:
(1) Amounts in NTD have been translated into USD at the weighted average
rate of NTD32.751 for the third quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,776M
shares for 3Q05 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 September 30, 2006, June 30, 2006, and
September 30, 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 $358 0.4 $11,975 17.0
Cost of Sales (1,724) 4.4 (1,800) 4.5
Gross Profit (1,366) -3.2 10,175 32.9
Operating Expenses
Research and Development Expenses (178) 4.4 (758) 21.8
General and Administrative Expenses (198) 8.9 (14) 0.6
Sales and Marketing Expenses 51 -5.9 52 -5.9
Total Operating Expenses (325) 4.5 (720) 10.6
Income from Operations (1,691) -4.8 9,455 39.1
Non-Operating Income, Net 23 7.6 303 1,544.2
Investment Gains 59 9.2 438 161.7
Income before Income Tax (1,609) -4.4 10,196 41.7
Income Tax (Expenses) Benefits 137 -6.0 (2,201) -3,839.2
Net Income (1,472) -4.3 7,995 32.6
Attributable to:
Shareholders of the parent (1,513) -4.4 8,001 32.7
Minority Interest 41 -379.6 (6) -18.9
($1,472) -4.3 $7,995 32.6
Earnings per Share - Diluted -$0.06 -4.4 $0.31 32.5
Earnings per ADR (2) -$0.29 -4.4 $1.54 32.5
Weighted Average Outstanding Shares -
Diluted ('M) (3)
Note:
(1) Amounts in NTD have been translated into USD at the weighted average
rate of NTD32.751 for the third quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,776M
shares for 3Q05 after the retroactive adjustments for stock dividends
and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Income Statements (Consolidated)
For the Nine Months End September 30, 2006 and 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
Nine Months Ended September 30
2006 2005
USD NTD % NTD %
Net Sales $7,478 $242,444 100.0 $187,337 100.0
Cost of Sales (3,735) (121,087) -49.9 (110,448) -59.0
Gross Profit 3,743 121,357 50.1 76,889 41.0
Operating Expenses
Research and Development
Expenses (372) (12,071) -5.0 (10,446) -5.6
General and Administrative
Expenses (200) (6,471) -2.7 (7,176) -3.8
Sales and Marketing Expenses (91) (2,958) -1.2 (2,708) -1.4
Total Operating Expenses (663) (21,500) -8.9 (20,330) -10.9
Income from Operations 3,080 99,857 41.2 56,559 30.2
Non-Operating Income, Net 63 2,038 0.8 1,222 0.6
Investment Gains 60 1,959 0.8 894 0.5
Income before Income Tax 3,203 103,854 42.8 58,675 31.3
Income Tax (Expenses) Benefits (194) (6,280) -2.6 1,061 0.6
Net Income before Cumulative
Effect of Changes in Accounting
Principles 3,010 97,574 40.2 59,736 31.9
Cumulative Effect of Changes in
Accounting Principles (Net of
Tax) 50 1,607 0.7 -- --
Net Income 3,059 99,181 40.9 59,736 31.9
Attributable to:
Shareholders of the Parent 3,057 99,098 40.9 59,675 31.9
Minority Interest 3 83 0.0 61 0.0
$3,059 $99,181 40.9 $59,736 31.9
Earnings per Share - Diluted $0.12 $3.84 $2.32
Earnings per ADR (2) $0.59 $19.20 $11.58
Weighted Average Outstanding
Shares - Diluted ('M) (3) 25,810 25,773
Note:
(1) Amounts in NTD have been translated into USD at the weighted average
rate of NTD 32.421 for the nine months ended September 30, 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,773M shares
for the nine months ended September 30, 2005
after the retroactive adjustments for stock dividends and stock
bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Income Statements (Consolidated)
For the Nine Months End September 30, 2006 and 2005
(Expressed in Million New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
Nine Months Ended September 30
YoY
Amount %
Net Sales $55,107 29.4
Cost of Sales (10,639) 9.6
Gross Profit 44,468 57.8
Operating Expenses
Research and Development Expenses (1,625) 15.6
General and Administrative Expenses 705 -9.8
Sales and Marketing Expenses (250) 9.2
Total Operating Expenses (1,170) 5.8
Income from Operations 43,298 76.6
Non-Operating Income, Net 816 66.7
Investment Gains 1,065 119.1
Income before Income Tax 45,179 77.0
Income Tax (Expenses) Benefits (7,341) -691.8
Net Income before Cumulative Effect
of Changes in Accounting Principles 37,838 63.3
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) 1,607 --
Net Income 39,445 66.0
Attributable to:
Shareholders of the Parent 39,423 66.1
Minority Interest 22 36.3
$39,445 66.0
Earnings per Share - Diluted $1.52 65.8
Earnings per ADR (2) $7.62 65.8
Weighted Average Outstanding Shares -
Diluted ('M) (3)
Note:
(1) Amounts in NTD have been translated into USD at the weighted average
rate of NTD 32.421 for the nine months ended September 30, 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,773M shares
for the nine months ended September 30, 2005
after the retroactive adjustments for stock dividends and stock
bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Condensed Statements of Cash Flows (Consolidated)
For the Nine Months Ended September 30, 2006 and for the Three Months
Ended September 30, 2006, June 30, 2006, and September 30, 2005
(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
(1)
Nine Months 3Q 2006 2Q 2006 3Q 2005
2006
(Un- (Un- (Un- (Un-
audited) audited) audited) audited)
(2)
USD NTD NTD NTD NTD
Cash Flows from Operating
Activities:
Net Income $3,057 $99,098 $32,489 $34,002 $24,488
Net Income Attributable
to Minority Interest 3 83 30 (11) 36
Depreciation &
Amortization 1,667 54,033 18,411 17,888 19,068
Deferred Income Tax 4 115 (136) 860 (1,220)
Investment Income From
Equity Method Investees (60) (1,959) (709) (650) (271)
Changes in Working
Capital & Others 17 613 2,593 (1,698) (2,192)
Net Cash Provided by
Operating Activities 4,688 151,983 52,678 50,391 39,909
Cash Flows from Investing
Activities:
Acquisitions:
Marketable Financial
Instruments (3,073) (99,635) (27,054) (39,850) (32,540)
Financial Assets
Carried at Cost (15) (495) (205) (168) (14)
Property, Plant and
Equipment (1,886) (61,157) (28,256) (21,391) (10,491)
Long-Term Investments
by Equity Method (6) (180) (132) (48) --
Proceeds from Disposal or
maturity of:
Marketable Financial
Instruments 2,174 70,492 18,486 32,075 32,317
Financial Assets
Carried at Cost 3 105 105 -- 36
Property, Plant and
Equipment 14 464 217 (215) 147
Long-Term Investments
by Equity Method -- -- -- -- --
Others (29) (942) (147) (653) (243)
Net Cash Used In
Investing Activities (2,818) (91,348) (36,986) (30,250) (10,788)
Cash Flows from Financing
Activities:
Repurchase of Treasury
Stock -- -- -- -- --
Cash Dividends (1,904) (61,743) (61,743) -- (46,420)
Bonus Paid to Employees,
Directors and
Supervisors (106) (3,432) (3,175) (257) (3,086)
Repayment of Long-Term
Bonds Payable -- (4) (1) (2) (52)
Increase in Guarantee
Deposits 24 788 327 139 847
Proceeds from Exercise of
Stock Options 13 423 97 209 49
Others (18) (580) (243) (15) 666
Net Cash (Used in)
Provided by Financing
Activities (1,991) (64,548) (64,738) 74 (47,996)
Net Increase (Decrease) in
Cash and Cash Equivalents (121) (3,913) (49,046) 20,215 (18,875)
Effect of Exchange Rate
Changes and Others 11 332 497 (14) 52
Cash and Cash Equivalents at
Beginning of Period 2,976 96,484 141,452 121,251 88,405
Cash and Cash Equivalents at
End of Period $2,866 $92,903 $92,903 $141,452 $69,582
Note: (1) Amounts in NTD have been translated into USD at the rate of
NTD32.421, the weighted average rate for the nine months ended
September 30, 2006.
(2) Certain prior period balances have been reclassified to conform
to the current period presentation.
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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