ChipMOS Technologies Nov. Revenues Rise; Sees Gain In Q4 - Quick Facts

(RTTNews) - ChipMOS Technologies Inc. (IMOS), a Taiwan-based provider of outsourced semiconductor assembly and test services, reported Friday that its consolidated revenue for the month of November 2016 increased 1.7 percent to NT$1.60 billion or $50.2 million from last year's NT$1.58 billion or $49.4 million.

Sequentially, November revenues dropped 2.6 percent.

The company said the result is consistent with its previous forecast that it expects revenue for the fourth quarter of 2016 to be approximately flat to down in the low single digits, as compared to the third quarter of 2016, in-line with typical seasonality.

The company now expects gross margin on a consolidated basis to be approximately 12% to 16% for the fourth quarter of 2016, primarily reflecting the adverse impact of expenses related to its recent merger and the subsequent 54.98% equity interest sale of ChipMOS Shanghai, and the Company's provision for slow-moving material and spare parts. All these are expected to have an aggregate impact of approximately 5.0% in the fourth quarter.

The sale of the 54.98% equity interest is expected to result in a gain to ChipMOS in the fourth quarter of approximately NT$2.29 billion or approximately NT$2.67 per ChipMOS share, primarily due to a gain on the appreciation of fixed assets and land use rights.