Feeds

UMC heralds 'turnaround'

Operating profit due in Q4 on rising prices

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.