HSINCHU, Taiwan, Jan. 25 /Xinhua-PRNewswire-FirstCall/ -- TSMC
(TAIEX: 2330; NYSE: TSM) today announced consolidated revenue of NT$74.96 billion, net income of NT$27.91 billion, and diluted earnings per share of NT$1.08 (US$0.16 per ADS unit) for the fourth quarter ended December 31, 2006.
Year-over-year, fourth quarter revenue decreased 5.4% while net income and diluted EPS decreased 17.7% and 17.8%, respectively. On a sequential basis, fourth quarter results represent a 9.1% decrease in revenue, and a decrease of 14.1% both in net income and in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
Fourth quarter business was affected by inventory correction, and revenue came to the mid point of the guidance. Advanced process technologies (0.13-micron and below) accounted for 48% of wafer revenues with 90-nanometer process technology accounting for 22% and 65-nanometer approaching 1% of total wafer sales. Gross margin of 46% reached the mid point of the guidance, while operating margin of 36.6% was close to the high end of guidance. Net margin decreased 2.2 percentage points to 37.2% from the previous quarter.
"The current inventory correction which started in the third quarter of last year is expected to continue through the first quarter of 2007, but we expect the overall demand of our business to begin to recover by the end of first quarter," said Lora Ho, VP and Chief Financial Officer of TSMC. "Relative to the fourth quarter, the wireless communication segment appears to experience a more severe decline than the consumer and computer segments in the first quarter," said Ho. "Based on our current business outlook, management's expectations for first quarter 2007 performance are as follows":
-- Revenue to be between NT$62 billion and NT$64 billion;
-- Gross profit margin to be between 37% and 39%;
-- Operating profit margin to be between 26% and 28%.
Ho said management also expects that 2007 capital expenditure will be in the range of US$2.6 billion to US$2.8 billion.
Conference Call & Webcast Notice:
TSMC's quarterly review conference call will be held at 8 a.m. Eastern Time (9 p.m. Taiwan Time) on Thursday, January 25, 2007. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-213-8050 in the U.S., 852-3002-1672 in Hong Kong, 65-6823-2164 in Singapore, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.
Profile
TSMC (TAIEX: 2330; NYSE: TSM) is the world's largest dedicated semiconductor foundry, providing the industry's leading manufacturing capacity, process technology, and the foundry industry's largest portfolio of process-proven libraries, IP, design tools and reference flows. TSMC currently operates two twelve-inch wafer fabs, four eight-inch fabs and one six-inch fab. The Company also operates two eight-inch fabs at its wholly owned subsidiaries, WaferTech in the U.S. and TSMC (Shanghai) Company, Ltd. in China, and has substantial capacity commitments from a joint-venture fab, SSMC, in Singapore. Total managed capacity in 2006 exceeded seven million eight-inch equivalent wafers. TSMC is the first foundry to provide 65-nanometer production capabilities. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available at http://www.tsmc.com .
Safe Harbor Notice:
The statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. TSMC cautions readers that forward-looking statements are subject to significant risks and uncertainties and are based on TSMC's current expectations. Actual results may differ materially from those contained in such forward-looking statements for a variety of reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor industry; demand and supply for TSMC's foundry manufacturing capacity in particular and for foundry manufacturing capacity in general; intense competition; the failure of one or more significant customers to continue to place the same level of orders with us; TSMC's ability to remain a technological leader in the semiconductor industry; TSMC's ability to manage its capacity; TSMC's ability to obtain, preserve and defend its intellectual property rights; natural disasters and other unexpected events which may disrupt production; and exchange rate fluctuations. Additional information as to these and other risk factors that may cause TSMC's actual results to differ materially from TSMC's forward-looking statements may be found in TSMC's Annual Report on Form 20-F, filed with the United States Securities and Exchange Commission (the "SEC") on April 20, 2006, and such other documents as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
4Q06 Quarterly Management Report
Topics in This Report
-- Revenue Analysis
-- Capacity
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow & CapEx
-- Recap of Recent Important Events
Operation Results Review
Summary:
(Amounts are on consolidated basis and are in NT$ billion except noted
otherwise)
4Q06 3Q06 4Q05 QoQ YoY
EPS (NT$ per com. shr.) 1.08 1.26 1.31 (14.1%) (17.8%)
(US$ per ADR unit) 0.16 0.19 0.20 -- --
Consolidated Net Sales 74.96 82.48 79.23 (9.1%) (5.4%)
Gross Profit 34.45 41.13 41.31 (16.2%) (16.6%)
Gross Margin 46.0% 49.9% 52.1% -- --
Operating Expense (7.05) (7.50) (6.90) (6.1%) 2.1%
Non-Operating Items 2.10 1.03 1.18 103.7% 78.2%
Net Income 27.91 32.49 33.90 (14.1%) (17.7%)
Net Profit Margin 37.2% 39.4% 42.8% -- --
Wafer Shipment
(kpcs 8inch-equiv.) 1,718 1,890 1,707 (9.1%) 0.6%
Remarks:
The fourth quarter diluted earnings per share were NT$1.08, representing a 17.8% decrease over the same period last year and a 14.1% sequential decline. The consolidated operating results of 4Q06 are summarized below:
Fourth quarter net sales were NT$75 billion, down 5% from NT$79.2 billion in fourth quarter 2005 and down 9% from NT$82.5 billion in third quarter 2006.
Gross profit for 4Q06 was NT$34.5 billion, representing a year-over-year decrease of 16.6% and a sequential decline of 16.2%. Gross margin was 46% in the fourth quarter, down from 49.9% in the previous quarter.
Operating expenses were NT$7 billion or 9.4% of the net sales. The combined result from non-operating income and long-term investments was a gain of NT$2.1 billion.
Consolidated net income attributable to shareholders of the parent company was NT$27.9 billion, down 17.7% over the same period last year and down 14.1% sequentially. Net profit margin was 37.2%.
I. Consolidated Sales Analysis
I. Wafer Sales Analysis
By Application 4Q06 3Q06 4Q05
Computer 32% 28% 32%
Communication 42% 45% 41%
Consumer 16% 20% 21%
Industrial/Others 7% 5% 5%
Memory 3% 2% 1%
By Technology 4Q06 3Q06 4Q05
N90- 23% 24% 17%
0.11/0.13um 25% 25% 32%
0.15/0.18um 33% 33% 32%
0.25/0.35um 14% 13% 14%
0.50um+ 5% 5% 5%
By Customer Type 4Q06 3Q06 4Q05
Fabless/System 72% 71% 72%
IDM 28% 29% 28%
By Geography 4Q06 3Q06 4Q05
North America 78% 78% 77%
Asia Pacific 11% 10% 11%
Europe 7% 8% 8%
Japan 4% 4% 4%
Consolidated Revenue Analysis:
Consolidated net sales were NT$74.96 billion in the fourth quarter of 2006, down 9.1% from NT$82.48 billion in the previous quarter. The decline in fourth quarter business was primarily due to weakness in consumer and communication sectors and to a lesser extent in the computer sector, as customers continued to digest inventories.
On a sequential basis, revenues from consumer, communication and computer applications declined by 31%, 17% and 2%, respectively.
Revenues from 65nm and 90nm accounted for 23% of total wafer sales, down one percentage point from third quarter 2006. Revenues from advanced technologies (0.13-micron and below) accounted for 48% of total wafer sales, down slightly from the previous quarter.
Revenues from IDM customers accounted for 28% of total wafer sales during the quarter, down slightly from 29% in the previous quarter.
Geographically, revenues from North America accounted for 78% of total wafer sales. Meanwhile, sales from Asia Pacific, Europe and Japan accounted for 11%, 7% and 4% of wafer sales, respectively.
II. Capacity
Fab / (Wafer size) 1Q06 2Q06 3Q06 4Q06 2006 1Q07
(A) (A) (A) (A) (A) (Est)
Fab-2 (6")(Note 1) 244 258 258 266 1,025 257
Fab-3 (8") 246 252 265 258 1,021 259
Fab-5 (8") 135 138 147 153 573 144
Fab-6 (8") 215 222 233 248 918 235
Fab-7 (8") 33 23 4 0 60 0
Fab-8 (8") 231 233 234 248 946 239
Fab-1 (12")(Note 2) 142 150 157 166 616 169
Fab-14 (12")(Note 2) 61 66 86 105 318 103
WaferTech (8") 99 100 101 104 404 104
TSMC (Shanghai)(8") 48 52 73 90 262 90
TSMC total capacity
(8"equiv.Kpcs) 1,602 1,650 1,748 1,860 6,860 1,826
SSMC (8") 49 50 51 52 202 54
Total managed capacity
(8"equiv.Kpcs) 1,651 1,700 1,799 1,912 7,062 1,880
Note: 1. Figures represent number of 6" wafers. Conversion to
8"-equivalent wafers is by dividing this number by 1.78
2. Figures represent number of 12" wafers. Conversion to
8"-equivalent wafers is by multiplying this number by 2.25
Capacity:
Total TSMC managed capacity was 1,912K 8-inch equivalent wafers in 4Q06, 6.3% higher than the 1,799K 8-inch equivalent wafers in 3Q06.
Total managed capacity for year 2006 was 7,062K 8-inch equivalent wafers, up 18.6% from 5,955K 8-inch equivalent wafers in year 2005.
TSMC managed capacity in 1Q07 will decrease by 1.7% sequentially to reach 1,880K 8-inch equivalent wafers.
III. Consolidated Profit & Expense Analysis
III - 1. Consolidated Gross Profit Analysis
(Amount: NT$ billion) 4Q06 3Q06 4Q05
COGS 40.5 41.3 37.9
Depreciation 18.2 16.8 16.7
Other MFG Cost 22.3 24.5 21.2
Gross Profit 34.5 41.1 41.3
Gross Margin 46.0% 49.9% 52.1%
Consolidated Gross Profit Analysis:
Consolidated gross profit for the fourth quarter 2006 was NT$34.5 billion, or 46% of net sales, down from a gross profit of NT$41.1 billion, or 49.9% of net sales, in the previous quarter. The gross margin declined by 3.9 percentage points largely due to lower capacity utilization and an increase in depreciation expenses, offset in part by productivity improvement and lower provisions for sales returns.
III - 2. Consolidated Operating Expenses
(Amount: NT$ billion) 4Q06 3Q06 4Q05
Total Operating Exp. 7.05 7.50 6.90
SG&A 3.04 3.27 3.33
Research & Development 4.01 4.23 3.57
Consolidated Operating Expenses:
Total operating expenses for 4Q06 were NT$7 billion, compared to NT$7.5 billion in third quarter 2006. Total operating expenses represented 9.4% of net sales, compared to 9.1% for the previous quarter.
Research and development expenditures decreased by NT$225 million sequentially, mainly due to a reduction in 65nm related expenditures as we entered into volume production for 65nm process node.
SG&A expenses decreased by NT$229 million compared to 3Q06, primarily due to the reduction of fab opening expenses for Fab 14 Phase II, which commenced commercial production in 4Q06.
III - 3. Condolidated Non-Operating Items
(Amount: NT$ million) 4Q06 3Q06 4Q05
Non-Operating Income/(Exp.) 1,713 322 640
Net Interest Income/(Exp.) 1,030 923 525
Other Non-Operating 683 (601) 115
L-T Investments 388 709 540
SSMC 59 403 348
Others 329 306 193
Total Non-Operating Items 2,101 1,031 1,180
Consolidated Non-Operating Items:
Combined result from non-operating income and long-term investments was a gain of NT$2.1 billion for 4Q06.
Non-operating income totaled NT$1,713 million during the fourth quarter of 2006, compared to an income of NT$322 million in the previous quarter. The increase in non-operating income was mainly due to the mark to market adjustment recorded as a result of the increase in the market value of certain marketable securities, a decrease in losses realized upon the settlement of certain hedging instruments, and the settlement payment from the lawsuit against SMIC, offset in part by an increase in foreign exchange losses.
Net investment income was NT$388 million in fourth quarter 2006, compared to an income of NT$709 million in 3Q06, mostly due to lower level of profits at SSMC.
IV. Financial Condition Review
IV - 1. Liquidity Analysis *
(Selected Balance Sheet Items)
(Amount: NT$ billion) 4Q06 3Q06 4Q05
Cash & Marketable
Securities 195.1 164.1 145.3
Accounts Receivable
-- Trade 31.6 37.7 38.5
Inventory 21.4 20.3 17.7
Total Current Assets 260.3 228.3 212.3
Accounts Payable 20.6 26.2 20.2
Current Portion of
Bonds Payable 7.0 2.5 0.0
Accrued Liabilities
and Others 19.3 16.9 14.9
Total Current Liabilities 46.9 45.6 35.1
Current Ratio (x) 5.6 5.0 6.0
Net Working Capital 213.5 182.7 177.2
* Certain prior period amounts have been reclassified to conform with
current period presentation.
Liquidity Analysis:
Total cash and marketable securities increased by NT$31 billion in the fourth quarter 2006, mainly due to the free cash flows generated during the quarter. As a result, TSMC ended the quarter with NT$260.3 billion in total current assets, compared to NT$212.3 billion at the end of 2005 and NT$228.3 billion at the end of the previous quarter.
Total current liabilities were NT$46.9 billion at the end of the quarter, compared to NT$45.6 billion at the end of the previous quarter. The increase was mainly due to a reclassification of NT$4.5 billion in bonds payable from long-term liability to current liability, offset in part by a reduction in payables to contractors and equipment suppliers.
As a result, net working capital increased to NT$213.5 billion and current ratio improved to 5.6.
IV - 2. Consolidated Receivable/Inventory Days
4Q06 3Q06 4Q05
Days of Receivable 43 43 46
Days of Inventory 50 48 44
Consolidated Receivable/Inventory Days Trend:
Days of receivable were 43 days in 4Q06, flat from the previous quarter.
Days of inventory increased to 50 days from 48 days in the third quarter of 2006.
IV - 3. Consolidated Debt Service *
(Amount: NT$ Billion) 4Q06 3Q06 4Q05
Cash & Marketable
Securities 195.1 164.1 145.3
Interest-Bearing Debt 27.6 27.6 27.5
Net Cash Reserves 167.5 136.5 117.8
* Certain prior period amounts have been reclassified to conform with
current period presentation.
Consolidated Debt Service:
As a result of the free cash flows generated during the quarter, net cash reserves -- defined as the excess of cash and short-term marketable securities over interest-bearing debt -- increased by NT$31 billion to reach NT$167.5 billion in 4Q06.
V. Cash Flow & CapEx
V - 1. Consolidated Cash Flow Analysis*
(Amount: NT$ Billion) 4Q06 3Q06 4Q05
Net Income 27.9 32.5 33.9
Depreciation & 19.7 18.4 18.7
Amortization
Other Op Sources/(Uses) 5.4 1.8 (2.5)
Total Op Sources/(Uses) 53.0 52.7 50.1
Capital Expenditure (17.6) (28.3) (13.6)
Marketable Financial
Instruments (6.7) (8.6) 1.0
Other Investing
Sources/(Uses) (4.1) (0.1) (0.7)
Net Investing (28.4) (37.0) (13.3)
Sources/(Uses)
Cash Dividends 0.0 (61.7) 0.0
Employee Profit Sharing 0.0 (3.2) 0.0
Other Financing
Sources/(Uses) 0.8 0.2 (10.0)
Net Financing
Sources/(Uses) 0.8 (64.7) (10.0)
Net Cash Position
Changes 25.4 (49.0) 26.8
Exchange Rate
Changes & Others (0.5) 0.5 0.1
Ending Cash Balance 117.8 92.9 96.5
* Certain prior period amounts have been reclassified to conform with
the current period presentation.
Summary of Consolidated Cash Flow:
During fourth quarter 2006, TSMC generated NT$53 billion in cash from operating activities, mainly from net income of NT$27.9 billion and depreciation & amortization of NT$19.7 billion.
Net cash used in investment activities totaled NT$28.4 billion, mainly as a result of an NT$17.6 billion in capital expenditures and an NT$6.7 billion net increase in marketable financial instruments.
Net cash provided by financing activities was NT$0.8 billion during the quarter.
As a result, TSMC ended the quarter with a cash balance of NT$117.8 billion, NT$24.9 billion higher than in 3Q06.
V - 2. Consolidated Operating and Free Cash Flows
TSMC continues to generate strong operating cash flows and free cash flows. Cash flows generated from operating activities were NT$53 billion, NT$0.3 billion higher than 3Q06. Free cash flows, defined as the excess of operating cash flows over capital expenditures, totaled NT$35.4 billion in 4Q06, NT$11 billion higher than the NT$24.4 billion generated in the previous quarter, mainly due to lower level of capital expenditures in 4Q06.
For the chart of V - 2. Consolidated Operating and Free Cash Flows, please refer to http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf.
V - 3. Capital Expenditures
(In US$ Million) 1Q06 2Q06 3Q06 4Q06 YTD
TSMC 344 653 852 561 2,410
TSMC (Shanghai) &
WaferTech 12 11 14 10 47
Total TSMC 356 664 866 571 2,457
Capital Expenditures:
Capital expenditures for TSMC consolidated group totaled US$571 million during the quarter. Most of the spending was for the purchase of 12-inch production equipment.
For year 2006, total capital expenditures for TSMC consolidated group were US$2.5 billion.
VI. Recap of Recent Important Events & Announcements
-- NXP Semiconductors and TSMC Strengthen R&D Cooperation and
Manufacturing Partnership (2007/01/16)
-- TSMC Welcomes Government Approval for 0.18 Micron Generation
Technology Transfer to China (2006/12/29)
-- TSMC won 6 awards at the IR Magazine Hong Kong and Taiwan Awards,
including Grand Prix for Best Overall Investor Relations -- Large Cap
(Taiwan region) and Best Corporate Governance (Hong Kong and Taiwan
regions) (2006/12/11)
-- TSMC R&D Team Won 2006 IEEE Taipei Section Best Impact Award
(2006/12/08)
-- TSMC Board Approves Capital Appropriation for 65nm and 90nm Capacity
(2006/11/07)
* Please visit TSMC's Web site ( http://www.tsmc.com ) for details about
these and other announcements.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD))(1)
December 31, 2006 September 30,
(Audited) 2006 (Unaudited)
ASSETS USD NTD % NTD %
Current Assets
Cash and Cash Equivalents $3,615 $117,837 20.1 $92,903 16.5
Investments in Marketable
Financial Instruments 2,370 77,242 13.1 71,192 12.6
Accounts Receivable - Trade 969 31,589 5.4 37,726 6.7
Inventories, Net 657 21,431 3.6 20,338 3.6
Other Current Assets 375 12,218 2.1 6,149 1.1
Total Current Assets 7,986 260,317 44.3 228,308 40.5
Long-Term Investments 1,653 53,895 9.2 51,060 9.1
Property, Plant and Equipment 22,001 717,132 122.1 706,191 125.4
Less: Accumulated Depreciation (14,205) (463,038) -78.8 (445,525) -79.1
Property, Plant and
Equipment, Net 7,796 254,094 43.3 260,666 46.3
Other Assets 588 19,179 3.2 23,314 4.1
Total Assets $18,023 $587,485 100.0 $563,348 100.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-Term Bank Loans $-- $-- -- $-- --
Accounts Payables 301 9,802 1.7 10,669 1.9
Payables to Contractors and
Equipment Suppliers 330 10,769 1.8 15,507 2.8
Accrued Expenses and Other
Current Liabilities 592 19,286 3.3 16,885 3.0
Current Portion of Bonds
Payable and Long-Term
liabilities 215 7,004 1.2 2,505 0.4
Total Current Liabilities 1,438 46,861 8.0 45,566 8.1
Bonds Payable 383 12,500 2.1 17,000 3.0
Other Long-Term Liabilities 583 18,986 3.2 18,919 3.4
Total Liabilities 2,404 78,347 13.3 81,485 14.5
Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock 7,924 258,297 44.0 258,258 45.8
Capital Surplus 1,660 54,107 9.2 53,858 9.6
Retained Earnings 6,048 197,125 33.6 169,213 30.0
Treasury Stock (28) (918) -0.2 (918) -0.2
Others (20) (630) -0.1 725 0.2
Total Equity Attributable
to Shareholders of the
Parent 15,584 507,981 86.5 481,136 85.4
Minority Interest 35 1,157 0.2 727 0.1
Total Shareholders' Equity 15,619 509,138 86.7 481,863 85.5
Total Liabilities &
Shareholders' Equity $18,023 $587,485 100.0 $563,348 100.0
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD)) (1) (cont.)
December 31, 2005
(Audited)(2) QoQ YoY
ASSETS NTD % Amount % Amount %
Current Assets
Cash and Cash
Equivalents $96,484 18.6 $24,934 26.8 $21,353 22.1
Investments in
Marketable
Financial
Instruments 48,826 9.4 6,050 8.5 28,416 58.2
Accounts Receivable
- Trade 38,478 7.4 (6,137) -16.3 (6,889) -17.9
Inventories, Net 17,728 3.4 1,093 5.4 3,703 20.9
Other Current Assets 10,785 2.1 6,069 98.7 1,433 13.3
Total Current
Assets 212,301 40.9 32,009 14.0 48,016 22.6
Long-Term Investments 42,382 8.2 2,835 5.6 11,513 27.2
Property, Plant and
Equipment 642,948 123.8 10,941 1.5 74,184 11.5
Less: Accumulated
Depreciation (398,125) -76.7 (17,513) 3.9 (64,913) 16.3
Property, Plant
and Equipment,
Net 244,823 47.1 (6,572) -2.5 9,271 3.8
Other Assets 20,004 3.8 (4,135) -17.7 (825) -4.1
Total Assets $519,510 100.0 $24,137 4.3 $67,975 13.1
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Short-Term Bank
Loans $328 0.1 $-- -- ($328) -100.0
Accounts Payables 11,165 2.1 (867) -8.1 (1,363) -12.2
Payables to
Contractors and
Equipment Suppliers 9,066 1.7 (4,738) -30.6 1,703 18.8
Accrued Expenses and
Other Current
Liabilities 14,558 2.8 2,401 14.2 4,728 32.5
Current Portion of
Bonds Payable and
Long-Term
liabilities 5 -- 4,499 179.6 6,999 127503.2
Total Current
Liabilities 35,122 6.7 1,295 2.8 11,739 33.4
Bonds Payable 19,500 3.8 (4,500) -26.5 (7,000) -35.9
Other Long-Term
Liabilities 18,649 3.6 67 0.4 337 1.8
Total Liabilities 73,271 14.1 (3,138) -3.9 5,076 6.9
Shareholders' Equity
Attributable to
Shareholders of the
Parent
Capital Stock 247,300 47.6 39 0.0 10,997 4.4
Capital Surplus 57,118 11.0 249 0.5 (3,011) -5.3
Retained Earnings 142,771 27.5 27,912 16.5 54,354 38.1
Treasury Stock (918) -0.2 -- 0.0 -- --
Others (640) -0.1 (1,355) -- 10 -1.7
Total Equity
Attributable to
Shareholders of
the Parent 445,631 85.8 26,845 5.6 62,350 14.0
Minority Interest 608 0.1 430 59.1 549 90.2
Total
Shareholders'
Equity 446,239 85.9 27,275 5.7 62,899 14.1
Total Liabilities &
Shareholders' Equity $519,510 100.0 $24,137 4.3 $67,975 13.1
Note : (1) Amounts in New Taiwan dollars have been translated into
U.S. dollars at the rate of NT$32.596 as of December 31,
2006.
(2) Certain prior period balances have been reclassified
to conform to the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended December 31, 2006, September 30, 2006, and
December 31, 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD)(1)
Except for Per Share Amounts and Shares Outstanding)
Q4 2006 Q3 2006
USD NTD % NTD %
Net Sales $2,283 $74,963 100.0 $82,476 100.0
Cost of Sales (1,234) (40,510) -54.0 (41,344) -50.1
Gross Profit 1,049 34,453 46.0 41,132 49.9
Operating Expenses
Research and Development
Expenses (122) (4,006) -5.3 (4,231) -5.1
General and Administrative
Expenses (68) (2,246) -3.0 (2,424) -2.9
Sales and Marketing Expenses (24) (794) -1.1 (845) -1.1
Total Operating Expenses (214) (7,046) -9.4 (7,500) -9.1
Income from Operations 835 27,407 36.6 33,632 40.8
Non-Operating Income, Net 52 1,713 2.3 322 0.3
Investment Gains 12 388 0.5 709 0.9
Income before Income Tax 899 29,508 39.4 34,663 42.0
Income Tax (Expenses) Benefits (46) (1,494) -2.0 (2,144) -2.6
Net Income 853 28,014 37.4 32,519 39.4
Minority Interest (3) (102) -0.2 (30) 0.0
Net Income Attributable to
Shareholders of
the Parent 850 27,912 37.2 32,489 39.4
Earnings per Share - Diluted $0.03 $1.08 -- $1.26 --
Earnings per ADR - Diluted (2) $0.16 $5.41 -- $6.29 --
Weighted Average Outstanding
Shares - Diluted ('M) (3) -- 25,815 -- 25,809 --
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended December 31, 2006, September 30, 2006, and
December 31, 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD)(1)
Except for Per Share Amounts and Shares Outstanding) (cont.)
Q4 2005 QoQ YoY
NTD % Amount % Amount %
Net Sales $79,228 100.0 ($7,513) -9.1 ($4,265) -5.4
Cost of Sales (37,915) -47.9 834 -2.0 (2,595) 6.8
Gross Profit 41,313 52.1 (6,679) -16.2 (6,860) -16.6
Operating Expenses
Research and
Development
Expenses (3,570) -4.5 225 -5.3 (436) 12.2
General and
Administrative
Expenses (1,910) -2.4 178 -7.4 (336) 17.6
Sales and Marketing
Expenses (1,424) -1.8 51 -5.9 630 -44.2
Total Operating
Expenses (6,904) -8.7 454 -6.1 (142) 2.1
Income from
Operations 34,409 43.4 (6,225) -18.5 (7,002) -20.3
Non-Operating Income,
Net 640 0.8 1,391 431.5 1,073 167.9
Investment Gains 540 0.7 (321) -45.3 (152) -28.0
Income before Income
Tax 35,589 44.9 (5,155) -14.9 (6,081) -17.1
Income Tax (Expenses)
Benefits (1,692) -2.1 650 -30.3 198 -11.7
Net Income 33,897 42.8 (4,505) -13.9 (5,883) -17.4
Minority Interest 3 0.0 (72) 246.7 (105) --
Net Income
Attributable to
Shareholders of the
Parent 33,900 42.8 (4,577) -14.1 (5,988) -17.7
Earnings per Share -
Diluted $1.31 -- -$0.18 -14.1 -$0.23 -17.8
Earnings per ADR -
Diluted (2) $6.57 -- -$0.89 -14.1 -$1.17 -17.8
Weighted Average
Outstanding Shares -
Diluted ('M) (3) 25,787 -- -- -- -- --
Notes:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD32.831 for the fourth
quarter of 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,787M
shares for 4Q05 after the retroactive adjustments for stock dividends
and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Year End December 31, 2006 and 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)
(1)
Except for Per Share Amounts and Shares Outstanding)
For The Year Ended December 31
2006
USD NTD %
Net Sales $9,759 $317,407 100.0
Cost of Sales (4,969) (161,597) -50.9
Gross Profit 4,790 155,810 49.1
Operating Expenses
Research and Development Expenses (494) (16,076) -5.1
General and Administrative Expenses (268) (8,717) -2.7
Sales and Marketing Expenses (115) (3,752) -1.2
Total Operating Expenses (877) (28,545) -9.0
Income from Operations 3,913 127,265 40.1
Non-Operating Income, Net 115 3,750 1.2
Investment Gains 72 2,347 0.7
Income before Income Tax 4,100 133,362 42.0
Income Tax (Expenses) Benefits (239) (7,774) -2.4
Net Income before Cumulative Effect
of Changes in Accounting Principles 3,861 125,588 39.6
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) 49 1,607 0.5
Net Income 3,910 127,195 40.1
Minority Interest (5) (185) -0.1
Net Income Attributable to
Shareholders of the Parent 3,905 127,010 40.0
Earnings per Share - Diluted $0.15 $4.92 --
Earnings per ADR - Diluted(2) $0.76 $24.60 --
Weighted Average Outstanding Shares -
Diluted ('M)(3) -- 25,813 --
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Year End December 31, 2006 and 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)(1)
Except for Per Share Amounts and Shares Outstanding)
(cont.)
For The Year Ended December 31
2005 YoY
NTD % Amount %
Net Sales $266,565 100.0 $50,842 19.1
Cost of Sales (148,362) -55.7 (13,235) 8.9
Gross Profit 118,203 44.3 37,607 31.8
Operating Expenses
Research and Development Expenses (14,017) -5.3 (2,059) 14.7
General and Administrative Expenses (9,086) -3.4 369 -4.1
Sales and Marketing Expenses (4,132) -1.5 380 -9.2
Total Operating Expenses (27,235) -10.2 (1,310) 4.8
Income from Operations 90,968 34.1 36,297 39.9
Non-Operating Income, Net 1,862 0.7 1,888 101.5
Investment Gains 1,434 0.6 913 63.8
Income before Income Tax 94,264 35.4 39,098 41.5
Income Tax (Expenses) Benefits (631) -0.3 (7,143) 1,132.8
Net Income before Cumulative Effect of
Changes in Accounting Principles 93,633 35.1 31,955 34.1
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) -- -- 1,607 --
Net Income 93,633 35.1 33,562 35.8
Minority Interest (58) 0.0 (127) 221.9
Net Income Attributable to Shareholders
Of the Parent 93,575 35.1 33,435 35.7
Earnings per Share - Diluted $3.63 -- $1.29 35.5
Earnings per ADR - Diluted(2) $18.15 -- $6.45 35.5
Weighted Average Outstanding Shares -
Diluted ('M)(3) 25,776 -- -- --
Notes:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD 32.523 for the year ended
December 31, 2006.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,776M shares
for the year ended December 31, 2005 after the retroactive for stock
adjustments dividends and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Year Ended December 31, 2006 and for the Three Months
Ended December 31, 2006, September 30, 2006, and December 31, 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1)
Twelve Months 2006 4Q 2006 3Q 2006 4Q 2005(2)
(Audited) (Un- (Un- (Un-
audited) audited) audited)
USD NTD NTD NTD NTD
Cash Flows from Operating
Activities:
Net Income $3,905 $127,010 $27,912 $32,489 $33,900
Net Income Attributable
to Minority Interest 6 186 103 30 (3)
Depreciation &
Amortization 2,267 73,715 19,682 18,411 18,663
Deferred Income Tax 4 122 7 (136) (953)
Equity in Losses
(Earnings) of Equity
Method Investees, Net (72) (2,347) (388) (709) (539)
Changes in Working
Capital & Others 193 6,311 5,698 2,593 (993)
Net Cash Provided by
Operating Activities 6,303 204,997 53,014 52,678 50,075
Cash Flows from Investing
Activities:
Acquisitions:
Marketable Financial
Instruments (4,238) (137,846) (38,210) (27,054)(34,697)
Investments Accounted
for Using Equity
Method (80) (2,613) (2,433) (132) (622)
Property, Plant and
Equipment (2,421) (78,737) (17,580) (28,256)(13,618)
Financial Assets
Carried at Cost (16) (512) (16) (205) (258)
Proceeds from Disposal
or maturity of:
Marketable Financial
Instruments 3,137 102,030 31,539 18,486 35,697
Investments Accounted
for Using Equity
Method -- -- -- -- 65
Property, Plant and
Equipment 16 519 54 217 206
Financial Assets
Carried at Cost 4 126 21 105 20
Others (83) (2,691) (1,750) (147) (101)
Net Cash Used In
Investing Activities (3,681) (119,724) (28,375) (36,986)(13,308)
Cash Flows from Financing
Activities:
Increase (Decrease) in
Guarantee Deposits 28 921 133 327 531
Proceeds from Exercise
of Stock Options 18 575 152 97 105
Bonus Paid to Directors
and Supervisors (8) (257) -- (257) --
Issuance (Repayment) of
Long-Term Bonds Payable -- -- -- -- (9,504)
Cash Dividends Paid for
Common Stock (1,898) (61,743) -- (61,743) --
Cash Bonus Paid to
Employees (106) (3,432) -- (3,432) --
Others 5 153 480 270 (1,149)
Net Cash (Used in)
Provided by Financing
Activities (1,961) (63,783) 765 (64,738)(10,017)
Net Increase (Decrease) in
Cash and Cash Equivalents 661 21,490 25,404 (49,046) 26,750
Effect of Exchange Rate
Changes and Others (5) (137) (470) 497 152
Cash and Cash Equivalents at
Beginning of Period 2,967 96,484 92,903 141,452 69,582
Cash and Cash Equivalents at
End of Period $3,623 $117,837 $117,837 $92,903 $96,484
Notes:
(1) Amounts in New Taiwan dollars have been translated into
U.S. dollars at the weighted average rate of NTD32.523 for the
year ended December 31, 2006.
(2) Certain prior period balances have been reclassified to conform
to the current period presentation.
CONTACT
Elizabeth Sun / Harrison Hsueh / Julie Wei
Investor Relations Division
TSMC
Tel: +886-3-568- 2085/ 2088/ 2086
Email: invest@tsmc.com
