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Macronix Announces Fourth Quarter 2008 Results

Date: 2009/01/22

​​- Net revenues decreased 26% over Q3 2008 to NT$ 5,592 million (US$169.5million)
- Operating income decreased 44% over Q3 2008 to NT$ 1,069 million (US$32.4 million)

Hsinchu, Taiwan, R.O.C. – Macronix International Co., Ltd. (TSEC: 2337) today announced the unaudited financial results for the fourth quarter ended December 31, 2008. All numbers were prepared in compliance with the R.O.C. GAAP on an unconsolidated basis.

Summary of the Fourth Quarter 2008:
Total net revenues decreased 26% sequentially and decreased 7% over fourth quarter 2007 to NT$5,592 million (US$169.5 million).
Gross profit was NT$2,381 million (US$ 72.2 million) with 43% gross margin.
Operating income decreased 23% from NT$1,385 million in fourth quarter 2007 to NT$1,069 million (US$32.4 million).
Income before tax was NT$889 million (US$26.9 million); Net income was NT$825 million (US$ 25 million).
EPS was NT$0.26; book value per share was NT$11.81.
Capacity utilization rate was 69%.

Fourth-Quarter 2008 Financial Highlights:
Revenue was NT$5,592 and gross profit NT$2,381
Net income decreased to NT$825million with EPS NT$0.26.

The Company announced the fourth quarter net sales revenues of NT$5,592 million (US$169.5million), a 26% decrease sequentially and decrease of 7% year-over-year. The sequential revenue decrease was a result of seasonal gliding demand for all product lines and economy downturn.

Gross Profit and Gross Margins
Gross margin for the fourth quarter 2008 was 43%, at a close range of 43% in the fourth quarter 2007 and the third quarter of 2008. Gross profit was NT$2,381 million (US$ 72.2 million), a decrease of 8% year-over-year, and decrease of 27% sequentially.

Operating Expenses and Operating Income
Operating expenses for the fourth quarter were NT$1,312 million (US$39.8 million), an increase of 8% year-over-year and a decrease 3% sequentially. Operating income for the fourth quarter was NT$1,069 million (US$32.4 million), compared to NT$1,910 million in the third quarter of 2008 and NT$1,385 million in the fourth quarter of 2007.

Non-operating Income and Expenses
Net non-operating loss was NT$180 million (US$5.45million) for the quarter, consisting of net interest income of NT$83 million (US$2.52 million), recognized investment loss of NT$782 million (US$23.7 million), gain on disposal of fixed assets of NT$10 million (US$0.3million), net inventory loss provision of NT$23 million (US$0.70 million), net foreign exchange gain of NT$451 million (US$13.66 million), and the net other gain of NT$81 million (US$2.45 million)

Net Income and EPS
Net income before tax was NT$889 million (US$26.9 million), compared to NT$2,253 million in the third quarter of 2008 and NT$1,311 million in the fourth quarter of 2007. For the fourth quarter of 2008, the estimated tax provision was NT$64 million (US$1.9 million) and the net income after tax was NT$825 million (US$25 million). EPS was NT$0.26 (US$0.008), compared to NT$0.68 in the third quarter of 2008 and NT$0.41 in the fourth quarter of 2007. The book value was NT$11.81 per share.

Balance Sheet
Macronix has strong cash position. The debt-to-asset ratio is now 0.14 which is lower than 0.16 in the third quarter of 2008. As of December 31, 2008, the Company had NT$18,638 million (US$564.79 million) in cash and cash equivalents. With the inclusion of restricted deposits, the cash position would have been NT$19,849 million (US$601.5 million). Net inventory decreased by NT$59 million (US$1.8 million) to NT$ 5,268 million (US$159.6 million), compared to NT$5,327 million for the third quarter of 2008.

The total liability decreased to NT$5,871 million (US$177.9 million), a decrease of NT$1,069 million (US$32.4 million), compared to NT$6,940 million at the end of September 30, 2008. Owner’s equity was NT$36,939 million (US$1,119.4 million). Depreciation and amortization expenses were NT$781 million (US$23.7 million) for the quarter, a decrease of NT$7 million (US$0.2 million), compared to the third quarter of 2008. Cash flow from operations was NT$4,886 million (US$148.1 million) in the quarter. Capital expenditure for the quarter was NT$588 million (US$17.8 million) mainly for the upgrade of production equipment

Business Highlights
ROM and Flash Counted 64% and 29% of the Net Sales Respectively
Sales in the fourth quarter from ROM revenue accounted for 64% of net sales, an increase of 13% year-over-year and a sequential decrease of 17%. The unit shipments of ROM increased 8% year-over-year and decreased 29% sequentially.

Flash products accounted for 29% of net sales, a decrease of 27% year-over-year and a sequential decrease of 35%. The unit shipments of Flash decreased 9% year-over-year and decreased 39% sequentially.

Sales in FBG products (formerly named as SMS) accounted for 7% of net sales, a decrease of 35% year-over-year and a sequential decrease of 47%.

Capacity Utilization Rate was 69%; Products of the Advanced Process Technology Kept at Higher Percentage
In fourth quarter of 2008, the products made by 0.15 um, 0.13 um, 0.10 um and 75nm of the advanced process technology collectively accounted for 88% of net sales, which is higher than 83% of net sales in 2008Q3. The main reason is that 75nm technology product revenue is higher than in Q3. Capacity utilization rate decreased to 69% from 86% year-over-year, and decreased from 97% in the previous quarter.

2009Q1 Outlook
Management expects revenue to decline due to slow demand and impact of economy downturn. Compared with fourth quarter 2008, management’s expectations for first quarter 2009 performance are as follows:
Total unit shipment will be -20% to -30 %;
ASP (blended) will be -20% to -25%;
Gross profit margin is expected to be between 15% and 20%;
Capacity utilization rate is expected be 40% to 50%

Quarterly Income Statements
Unit: NT$ million (except EPS)

* For details, please refer to the audited financial reports of Q408.

Annual Income Statements
Unit: NT$ million (except EPS)

Balance Sheet / Cash Position
Unit: NT$ million

Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995
The news release contains forward-looking statements, as defined in the Safe Harbor Provisions of the United States Private Securities Litigation Reform act of 1995. These forward-looking statements, including the statements generally can be identified by phrases such as Macronix or the Company “believes”, “expects”, “anticipates”, “foresees”, ”forecasts”, “estimates” or other words or phrases of similar import. Similarly, such statements describe the Company’s business outlook, financial highlights and the projections of capacity expansions. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. A description of certain risks and uncertainties, which could cause actual results to differ materially from those indicated in the forward-looking statements can be found in the section captioned “ Risk Factors” in the Company’s 2005 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on July 2, 2007. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Macronix International Co., Ltd.

Founded in 1989, Macronix International Co., Ltd. (TSE: 2337.TT) is a leading provider of innovative Non-Volatile Memory (NVM) solutions. Macronix is the largest worldwide manufacturer of ROM products, and also provide wide range of NOR Flash products across various densities for system embedded, consumer, communication and enterprise applications.

For more information, please visit the Company’s web site at

Michelle Chang
Macronix International Co., Ltd.
Public Relations
+03 578 6688 ext. 71233
Douglas Sun
Macronix International Co., Ltd.
Finance Center / Investor Relations
+03 578 6688 ext. 76632