Siliconware Precision Industries Reports Unaudited Consolidated Financial Results for the Fourth Quarter of 2016

TAICHUNG, Taiwan, Jan. 24, 2017 /PRNewswire/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the fourth quarter of 2016 were NT$ 22,178 million, which represented a 1.0% growth in revenues compared to the third quarter of 2016 and a 6.8% growth in revenues compared to the fourth quarter of 2015. SPIL reported a net income of NT$ 2,829 million for the fourth quarter of 2016, compared with a net income of NT$ 2,692 million and a net loss of NT$ 212 million for the third quarter of 2016 and the fourth quarter of 2015, respectively.

Basic earnings per share for this quarter was NT$ 0.91, and diluted earnings per ordinary share was NT$ 0.89. Basic earnings per ADS for this quarter was US$ 0.14, and diluted earnings per ADS was US$ 0.14.

All figures were prepared in accordance with T-IFRS on a consolidated basis.

Operating results review:

• For the fourth quarter of 2016, net revenues from IC packaging were NT$ 19,406 million and represented 88% of total net revenues. Net revenues from testing operations were NT$ 2,772 million and represented 12% of total net revenues.
• Cost of goods sold was NT$ 16,950 million, representing an increase of 0.3% compared to the third quarter of 2016 and an increase of 10.6% compared to the fourth quarter of 2015.
  • Raw materials costs were NT$ 7,405 million for the fourth quarter of 2016 and represented 33.4% of total net revenues, whereas raw materials costs were NT$ 7,394 million and represented 33.7% of total net revenues for the third quarter of 2016.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 266 million.
• Gross profit was NT$ 5,228 million for the fourth quarter of 2016, representing a gross margin of 23.6%, which increased from a gross margin of 23.0% for the third quarter of 2016 and decreased from 26.2% for the fourth quarter of 2015.
• Total operating expenses for the fourth quarter of 2016 were NT$ 2,186 million, which included selling expenses of NT$ 283 million, administrative expenses of NT$ 874 million and R&D expenses of NT$ 1,029 million. Total operating expenses represented 9.9% of total net revenues for the fourth quarter of 2016.
  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 146 million.
• Operating income was NT$ 3,042 million for the fourth quarter of 2016, representing an operating margin of 13.7%, which increased from 13.6% for the third quarter of 2016 and decreased from 15.7% for the fourth quarter of 2015.
• Non-operating items:
  • Our non-operating items were NT$ 350 million, including net foreign exchange gains of NT$ 233 million.
• Net income before tax was NT$ 3,392 million for the fourth quarter of 2016, which increased from a net income before tax of NT$ 3,160 million for the third quarter of 2016 and increased from a net loss before tax of NT$ 6 million for the fourth quarter of 2015.
• Income tax expense was NT$ 563 million for the fourth quarter of 2016, compared with income tax expense of NT$ 468 million for the third quarter of 2016 and income tax expense of NT$ 206 million for the fourth quarter of 2015.
• Net income was NT$ 2,829 million for the fourth quarter of 2016, which increased from a net income of NT$ 2,692 million for the third quarter of 2016 and increased from a net loss of NT$ 212 million for the fourth quarter of 2015.
• Total number of shares outstanding was 3,116 million shares as of Dec 31, 2016. Basic earnings per share for this quarter was NT$ 0.91, and diluted earnings per ordinary share was NT$ 0.89. Basic earnings per ADS for this quarter was US$ 0.14, and diluted earnings per ADS was US$ 0.14.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 24,476 million as of Dec 31, 2016 from NT$ 19,177 million as of Sep 30, 2016, and NT$ 25,191 million as of Dec 31, 2015.
• Capital expenditures for the fourth quarter of 2016 totaled NT$ 3,436 million.
• Total depreciation expenses for the fourth quarter of 2016 totaled NT$ 3,273 million.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 19,406 million for the fourth quarter of 2016, which represented an increase of NT$ 187 million or 1.0% compared to the third quarter of 2016.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 29%, 17% and 42%, respectively, of total net revenues for the fourth quarter of 2016.
• As of Dec 31, 2016 we had 7,996 wirebonders installed, of which 2 were added and 19 were disposed in the fourth quarter of 2016.

IC testing service:

• Net revenues from testing operations were NT$ 2,772 million for the fourth quarter of 2016, which represented an increase of NT$ 36 million or 1.3% compared to the third quarter of 2016.
• As of Dec 31, 2016 we had 575 testers installed, of which 2 were added and 6 were disposed in the fourth quarter of 2016.

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Revenue Analysis

• Breakdown by end applications:

• Breakdown by packaging type:

About SPIL

Siliconware Precision Industries Ltd. ("SPIL")(NASDAQ:SPIL, Taiwan Stock Exchange:2325) is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers' integrated circuit packaging and testing requirements, with turnkey solutions that range from design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, to shipment. Products include advanced leadframe, substrate packages, wafer bumping and FCBGA, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. For further information, visit SPIL's web site at www.spil.com.tw.

Safe Harbor Statement

The information herein contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectation and projections about future events. Such forward-looking statements are inherently subject to known and unknown risks, uncertainties, assumptions about us and other factors that may cause the actual performance, financial condition or results of operations of SPIL to be materially different from what may be implied by such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors, including, among other things:

• the intensely competitive personal computer, communications, consumer ICs and non-commodity memory semiconductor industries and markets;
• cyclical nature of the semiconductor industry;
• risks associated with global business activities;
• non-operating losses due to poor financial performance of some of our investments;
• our dependence on key personnel;
• general economic and political conditions;
• possible disruptions in commercial activities caused by natural and human induced disaster, including terrorist activities and armed conflicts and contagious disease, such as the Severe Acute Respiratory Syndrome;
• fluctuations in foreign currency exchange rates; and
• other risks identified in our annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission each year.

The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

All financial figures discussed herein are prepared pursuant to TIFRS on a consolidated basis. The investment gains or losses of our company for the three months ended Dec 31, 2016 reflect our gains or losses attributable to the fourth quarter of 2016 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the consolidated financial data for our company for the three months ended Dec 31, 2016, nor the consolidated financial data for our company for the twelve months ended Dec 31, 2016 is necessarily indicative of the results that may be expected for any period thereafter.

Contact:
Siliconware Precision Industries Co., Ltd.
No.45, Jieh Show Rd.
Hsinchu Science Park, Hsinchu
Taiwan, 30056
www.spil.com.tw

Eva Chen, VP of Finance Dept.
SPILIR@spil.com.tw
+886-4-25341525#1536

Byron Chiang, Spokesperson
Spokesperson@spil.com.tw
+886-3-5795678#3676