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February 8, 2010
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Siliconware Precision Industries Co. Ltd (SPIL) reported earnings from continuing operations of 21 cents per ADR for the fourth quarter of 2009, exceeding the Zacks Consensus Estimate of 14 cents.
Sales revenues for the fourth quarter of 2009 were NT$ 16,813 million ($520.6 million), which represented a 0.5% increase in revenues compared to the third quarter of 2009 and a 35.1% increase in revenues compared to the fourth quarter of 2008.
Segment Overview
For the fourth quarter of 2009, net revenues from IC packaging were NT$15,459 million and represented 92% of total net revenues. Net revenues from testing operations were NT$ 1,354 million and represented 8% of total net revenues.
Breakdown of revenues according to end applications was as follows: Communication (47%), Computing (22%), Consumer (17%) and Memory (14%). North America generated 58% of revenues, followed by Asia at 36%, Europe at 4% and Japan at 2%. The company added wire-bonder capacity by 30 sets in the most recent quarter, while at the same time it added one testing set. Net headcount increased by 800 during the quarter. Gross profit was NT$3,380 million for the fourth quarter of 2009, representing a gross margin of 20.1%, a decrease from 23.2% for the third quarter of 2009 and was up from 19.1% in the fourth quarter of 2008. Gross profit declined due to higher cost of raw materials, especially gold.
Operating income was NT$2,438 million for the fourth quarter of 2009, representing an operating margin of 14.5% for the fourth quarter of 2009, which decreased from 18.2% in the third quarter of 2009 and increased from 9.7% compared to the fourth quarter of 2008.
Investment income of NT$100 million from long-term investment for the fourth quarter of 2009 was primarily due to investment gain from SPIL BVI. Investment income of NT$1,948 million from disposing Phoenix Precision was due to the fact that Phoenix Precision was acquired by Unimicron Corporation in fourth quarter of 2009.
Balance Sheet and Capital Expenditure
Cash balances totaled NT$19,035 million ($589.4 million) as of Dec 31, 2009 from NT$17,427 million as of Sep 30, 2009, and NT$ 18,319 million as of Dec 31, 2008. Capital expenditures for the fourth quarter of 2009 totaled NT$ 2,937 million, which included NT$2,685 million for packaging equipment and NT$ 252 million for testing equipment.
SPIL provides comprehensive packaging, offering lead frame base and substrate base packages, with either wire bond or flip chip interconnections. These packages satisfy most applications for customers serving the PC, hand-held product, consumer product and wire communication markets. Besides the conventional SOP and QFP packages, SPIL has been devoted to the development of wafer thinning, fine-pitch wire bonding, stacked-die bonding, wafer bumping and flip-chip assembly technologies in order to realize advanced packages like: QFN, PBGA, TFBGA, Stacked-die CSP, WLCSP, Memory card and FCBGA.
Major competitors include Advanced Semiconductor Engineering Inc. (ASX) and Amkor Technology Inc (AMKR).
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