- Net revenues increased 6% over Q1 2008 to NT$ 5,191million (US$170.7million)
- Operating income increased 80% over Q2 2007 to NT$ 910million (US$29.9 million)
Hsinchu, Taiwan, R.O.C. – Macronix International Co., Ltd. (TSEC: 2337) today announced the unaudited financial results for the second quarter ended June 30, 2008. All numbers were prepared in compliance with the R.O.C. GAAP on an unconsolidated basis.
Summary of the Second Quarter 2008:
Total net revenues increased 6% sequentially and decreased 11% over second quarter 2007 to NT$5,191 million.
Gross profit was NT$2,136 million (US$ 70.2 million) with 41% gross margin.
Operating income increased 80% from NT$505 million in second quarter 2007 to NT$910 million (US$29.9 million).
Income before tax was NT$900 million (US$29.6 million); Net income was NT$849 million (US$ 27.9 million).
EPS was NT$0.28; book value per share was NT$11.08.
Capacity utilization rate was increased to 99.6%
Second-Quarter 2008 Financial Highlights:
Net income increased to NT$849 million with EPS NT$0.28
Revenues
The Company announced second quarter net sales revenues of NT$5,191 million (US$170.7million), a 6% increase sequentially and decrease of 11% year-over-year. The sequential revenue increase is a result of more NOR flash delivery.
Gross Profit and Gross Margins
Gross margin for the second quarter 2008 was 41%, a significant improvement from 32% in the second quarter 2007 and at close range of 44% in the first quarter of 2008. Gross profit was NT$2,136 million (US$70.2 million), an increase of 12% year-over-year, and decrease of 2% sequentially.
Operating Expenses and Operating Income
Operating expenses for the second quarter were NT$1,226 million (US$40.3 million), a decrease of 12% year-over-year and an increase 4% sequentially. Operating income for the second quarter was NT$910 million (US$29.9 million), compared to NT$996 million in the first quarter of 2008 and NT$505 million in the second quarter of 2007.
Non-operating Income and Expenses
Net non-operating loss was NT$10 million (US$0.33 million) for the quarter, consisting of net interest income of NT$79 million (US$2.60 million), recognized investment loss of NT$43 million (US$1.41 million), loss on disposal of fixed assets of NT$1 million (US$0.03 million), net inventory loss provision of NT$120 million (US$3.95 million), net foreign exchange loss of NT$75 million (US$2.47 million), and the net other gain of NT$150 million (US$4.93 million)
Net Income and EPS
Net income before tax was NT$900 million (US$29.6 million), compared to NT$769 million (US$25.3 million) in the first quarter of 2008 and NT$841 million (US$27.6 million) in the second quarter of 2007. For the second quarter of 2008, the estimated tax provision was NT$51 million (US$1.7 million) and the net income after tax was NT$849 million (US$27.9 million). EPS was NT$0.28 (US$0.009), compared to NT$0.24 in the first quarter of 2008 and NT$0.28 in the second quarter of 2007. The book value is NT$11.08 per share.
Balance Sheet
Macronix’s revenue has improved the Company’s cash position. The debt-to-asset ratio is now 0.23 which is higher than 0.16 in first quarter of 2008; the reason is that Dividend Payable for this year is listed in current liability. As of June 31, 2008, the Company had NT$16,696 million (US$548.9 million) in cash and cash equivalents. With the inclusion of restricted deposits, the cash position would have been NT$18,127 million (US$595.9 million). Net inventory increased by NT$530 million (US$17.4 million) to NT$ 5,617 million (US$184.7 million), compared to NT$5,087 million (US$167.2 million) for the first quarter of 2008.
The total liability increased to NT$10,053 million (US$330.5 million), an increase of NT$3,287 million (US$108.1 million), compared to NT$6,766 million (US$222.4 million) at the end of Mar. 31, 2008. Owner’s equity was NT$33,955 million (US$1,116.3 million). Depreciation and amortization expenses were NT$813 million (US$26.7 million) for the quarter, a decrease of NT$43 million (US$1.4 million), compared to the first quarter of 2008. Cash flow from operations was NT$1,233 million (US$40.54 million) in the quarter. Capital expenditure for the quarter was NT$289 million (US$9.5 million) due mainly from the purchases of equipment for the advanced process technology.
Business Highlights
ROM and Flash Counted 41% and 45% of the Net Sales Respectively
Sales in the second quarter from ROM revenue accounted for 41% of net sales, a decrease of 20% year-over-year and a sequential decrease of 12%. The unit shipments of ROM decreased 11% year-over-year and increased 2% sequentially.
Flash products accounted for 45% of net sales, a decrease of 5% year-over-year and a sequential increase of 27%. The unit shipments of Flash increased 44% year-over-year and increased 41% sequentially.
Sales in FBG products (formerly named as SMS) accounted for 14% of net sales, a decrease of 1% year-over-year and a sequential increase of 18%.
Capacity Utilization Rate was increased to 99.6%; Products of the Advanced Process Technology Kept at Higher Percentage
In second quarter of 2008, the products made by 0.15 um, 0.13 um and 0.10 um of the advanced process technology collectively accounted for 75% of net sales, which is lower than 80% of net sales in 2008Q1. The main reason is that 6” FBG revenue is much better than revenue of Q2. Capacity utilization rate increased to 99.6% from 93% in the previous quarter.
2008Q3 Outlook
Management expects more unit delivery due to seasonal demand. Compared with second quarter 2008, management’s expectations for third quarter 2008 performance are as follows:
- Total unit shipment will be +15% to +22 %;
- ASP (blended) will be +5% to +12%;
- Gross profit margin is expected to be between 36% and 40%;
- Capacity utilization rate is expected be over 95%
Quarterly Income Statements
Unit: NT$ million (except EPS)
* For details, please refer to the audited financial reports of Q208.
Balance Sheet / Cash Position
Unit: NT$ million
* For details, please refer to the audited financial reports of Q208.
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 www.macronix.com.
Contacts:
Michelle Chang
Macronix International Co., Ltd.
Public Relations
+03 578 6688 ext. 71233
michellechang@mxic.com.tw
Douglas Sun
Macronix International Co., Ltd.
Finance Center / Investor Relations
+03 578 6688 ext. 76632
douglassun@mxic.com.tw
