Feeds

UMC heralds 'turnaround'

Operating profit due in Q4 on rising prices

The essential guide to IT transformation

UMC, the world's second largest chip foundry, today announced a "fairly significant turnaround" for its business as it posted its Q3 FY2005 financial performance results.

However, big sequential gains failed to mask the fact that the company's numbers were well down on the year-ago quarter.

Revenues for the three months to 30 September 2005 totalled TWD23.58bn ($701.4m), up 21.3 per cent on the previous quarter, but 31.8 per cent down on the TWD34.58bn ($1.03bn) it recorded for Q3 FY2004.

The most recently completed quarter's net income was TWD2.17bn ($64.6m), up 624.1 per cent sequentially, but still well below Q3 FY2004's TWD10.91bn ($324.5m). Earnings per share came to TWD0.12 (1.8 cents).

The foundry made an operating loss of TWD560m ($16.7m).

UMC shipped 741,000 200mm-equivalent wafers in Q3, 17.6 per cent more than it did in Q2. In Q3 FY2004 it shipped 791,000. The company's blended ASP was up two per cent, in line with its previous guidance but hardly the "rebound" that UMC characterised it as.

Looking ahead, UMC said it expects ASPs to continue to rise during Q4, but again only by a "low single-digit percentage". Wafer shipments will rise too, by a figure in the low teens. Revenue from the company's 90nm production lines will rise sequentially by a "high teens" percentage - in Q3, 90nm accounted for 14 per cent of revenue, up from nine per cent in Q2.

Capacity utilisation should hit 85 per cent, UMC said, up from 78 per cent in Q3 and 65 per cent in Q2.

Q4 should also see the foundry returning to operating profitability, UMC added. ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?