All currency figures stated in this report are in US
Dollars unless stated otherwise.
The consolidated financial
statements are prepared in accordance
with International Financial Reporting Standards
("IFRS").
SHANGHAI, May 9, 2018 /PRNewswire/ -- Semiconductor
Manufacturing International Corporation (NYSE: SMI; SEHK: 981)
("SMIC", the "Company" or "our"), one of the leading semiconductor
foundries in the world, today announced its consolidated results of
operations for the three months ended March
31, 2018.
First Quarter 2018 Highlights
- Revenue was $831.0 million, and
$723.4 million excluding the
recognition of the technology licensing revenue in 1Q18 (the
"Licensing Revenue"), compared to $787.2
million in 4Q17 and $793.1
million in 1Q17.
- Gross profit was $220.2 million,
and $112.6 million excluding the
effect of the Licensing Revenue in 1Q18, compared to $148.5 million in 4Q17 and $220.8 million in 1Q17.
- Gross margin was 26.5%, and 15.6% excluding the effect of the
Licensing Revenue in 1Q18, compared to 18.9% in 4Q17 and 27.8% in
1Q17.
Second Quarter 2018 Guidance
The following statements are forward looking statements based on
current expectations and involved risks and uncertainties, some of
which are set forth under "Safe Harbor Statements" below. The
Company expects:
- Revenue to increase by 7% to 9% QoQ, including the forecast to
recognize the technology licensing revenue estimated at
$56 million.
- Gross margin to range from 23% to 25%.
- Non-GAAP operating expenses, excluding the effect of employee
bonus accrual, government funding, gain or loss on the disposal of
machinery and equipment and gain from the disposal of living
quarters, to range from $227 million
to $233 million.
- Non-controlling interests of our majority-owned subsidiaries to
range from positive $17 million to
positive $19 million (losses to be
borne by non-controlling interests).
Dr. Zhao HaiJun and Dr. Liang Mong
Song, SMIC's Co-Chief Executive Officers commented, "SMIC is
undergoing a period of transition. We are confronting many
challenges; however, through the efforts of the past quarter, we
are pleased that things are looking better than originally
expected, with customer demand picking up, utilizations rebounding,
and encouraging progress on R&D and business platform
development.
Our revenue in the first quarter from the China region grew 28% sequentially and 40%
year over year, and when excluding the technology license revenue,
the China region grew 2%
sequentially and 11% year over year. We work to develop our
business platforms into comprehensive service offerings in areas
that are aligned with meaningful opportunities stemming from the
China market.
Meanwhile, we accelerate the development of our technology,
aiming to build up complete technology platforms, which integrate
competitive technology, ready-to-use IP, and comprehensive design
services, in order to increase competitiveness and capture the
needs of customers."
To see the complete results including
financial tables, please click here: http://www.smics.com/pdf/2018_q1_earnings%20release_en.pdf
Conference Call / Webcast Announcement
Date: May 10, 2018
Time: 8:30 a.m. Beijing time
Dial-in numbers and pass code:
China
|
+86
400-620-8038
|
(Pass code:
SMIC)
|
Hong Kong
|
+852
3018-6771
|
(Pass code:
SMIC)
|
Taiwan
|
+886
2-2650-7825
|
(Pass code:
SMIC)
|
United States, New
York
|
+1
845-675-0437
|
(Pass code:
SMIC)
|
The call will be webcast live with audio at
http://www.smics.com/eng/investors/ir_presentations.php or
https://edge.media-server.com/m6/p/arbytiq5.
An archived version of the webcast, along with an electronic
copy of this news release will be available on the SMIC website for
a period of 12 months following the webcast.
About SMIC
Semiconductor Manufacturing International Corporation ("SMIC";
NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries
in the world and the largest and most advanced foundry in mainland
China. SMIC provides integrated
circuit (IC) foundry and technology services on process nodes from
0.35 micron to 28 nanometer. Headquartered in Shanghai, China, SMIC has an international
manufacturing and service base. In China, SMIC has a 300mm wafer fabrication
facility (fab) and a 200mm fab in Shanghai; a 300mm fab and a 200mm fab in
Shenzhen; a 300mm fab and a
majority-owned 300mm fab for advanced nodes in Beijing; a 200mm fab in Tianjin and a majority-owned joint-venture
300mm bumping facility in Jiangyin; additionally, in Italy SMIC has a majority-owned 200mm fab.
SMIC also has marketing and customer service offices in the U.S.,
Europe, Japan, and Taiwan, and a representative office in
Hong Kong.
For more information, please visit www.smics.com.
Safe Harbor Statements
(Under the Private Securities Litigation Reform Act of 1995)
This press release contains, in addition to historical
information, "forward-looking statements" within the meaning of the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements, including
statements under "Second Quarter 2018 Guidance", "CapEx Summary"
and the statements contained in the quotes of our Co-Chief
Executive Officers are based on SMIC's current assumptions,
expectations and projections about future events. SMIC uses words
like "believe," "anticipate," "intend," "estimate," "expect,"
"project," "target" and similar expressions to identify forward
looking statements, although not all forward-looking statements
contain these words. These forward-looking statements are
necessarily estimates reflecting the best judgment of SMIC's senior
management and involve significant risks, both known and unknown,
uncertainties and other factors that may cause SMIC's actual
performance, financial condition or results of operations to be
materially different from those suggested by the forward-looking
statements including, among others, risks associated with
cyclicality and market conditions in the semiconductor industry,
intense competition in the semiconductor industry, SMIC's reliance
on a small number of customers, timely wafer acceptance by SMIC's
customers, timely introduction of new technologies, SMIC's ability
to ramp new products into volume, supply and demand for
semiconductor foundry services, industry overcapacity, shortages in
equipment, components and raw materials, availability of
manufacturing capacity, financial stability in end markets, orders
or judgments from pending litigation, intensive intellectual
property litigation in semiconductor industry, general economic
conditions and fluctuations in currency exchange rates.
In addition to the information contained in this press release,
you should also consider the information contained in our other
filings with the SEC, including our annual report on Form 20-F
filed with the SEC on April 27, 2018,
especially in the "Risk Factors" section and such other documents
that we may file with the SEC or The Hong Kong Stock Exchange
Limited ("SEHK") from time to time, including current reports on
Form 6-K. Other unknown or unpredictable factors also could have
material adverse effects on our future results, performance or
achievements. In light of these risks, uncertainties, assumptions
and factors, the forward-looking events discussed in this press
release may not occur. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date stated or, if no date is stated, as of the date of this
press release. Except as may be required by law, SMIC undertakes no
obligation and does not intend to update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
About Non-Generally Accepted Accounting Principles
("non-GAAP") Financial Measures
To supplement SMIC's consolidated financial results presented in
accordance with IFRS, SMIC uses in this press release non-GAAP
measures of operating results that are adjusted to exclude finance
cost, depreciation and amortization, income tax benefits and
expenses, the effect of employee bonus accrual, government funding,
gain or loss on the disposal of machinery and equipment and gain
from the disposal of living quarters. This earnings release also
includes second quarter 2018 guidance for non-GAAP operating
expenses. The presentation of non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
IFRS. This earnings release includes EBITDA, EBITDA margin and
non-GAAP operating expenses which consist of total operating
expenses as adjusted to exclude the effect of employee bonus
accrual, government funding, gain or loss on the disposal of
machinery and equipment and gain from the disposal of living
quarters. These non-GAAP financial measures are not calculated or
presented in accordance with, and are not alternatives or
substitutes for financial measures prepared in accordance with
IFRS, and should be read only in conjunction with the Group's
financial measures prepared in accordance with IFRS. The Group's
non-GAAP financial measures may be different from similarly-titled
non-GAAP financial measures used by other companies.
SMIC believes that use of these non-GAAP financial measures
facilitates investors' and management's comparisons to SMIC's
historical performance. The Group's management regularly uses these
non-GAAP financial measures to understand, manage and evaluate the
Group's business and make financial and operational decisions.
The accompanying table has more information and reconciliations
of each non-GAAP financial measure to its most directly comparable
GAAP financial measure. A reconciliation of non-GAAP guidance
measures to corresponding GAAP measures is not available on a
forward-looking basis because the effect of these adjustment items
excluded for the purpose of non-GAAP operating expenses guidance
are subject to some unpredictable conditions that cannot be
estimated with reasonable certainty.
SMIC has filed with the U.S. Securities and Exchange Commission
its annual report on Form 20-F for the year ended December 31, 2017. The annual report is
available on our website at www.smics.com. In addition, all SMIC
ADR holders have the ability, upon request, to receive a hard copy
of our complete audited financials free of charge.
Contact:
Investor
Relations
|
+86-21-3861-0000 ext.
12804
|
ir@smics.com
|
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SOURCE Semiconductor Manufacturing International Corporation