Hsinchu, Taiwan – October 24 , 2008 – Faraday Technology Corporation (TSE: 3035), a leading fabless ASIC design service and silicon IP provider, today announced its unconsolidated operating results for the quarter ended September 30, 2008. The third quarter revenue was NT$1,473 million, while net income and basic earnings per share came to NT$230 million and NT$0.65 per share, respectively. Thanks to a higher percentage from ASIC mass production business, the revenue of 3Q08 increased by 24% compared to 2Q08. ASIC mass production revenue was NT$1,251 million, increased by 34.0% compared to the previous quarter (2Q08); and up 30.7% over the same period last year (3Q07). Advanced process technologies (0.13-micron and below) accounted for 24.8% of the overall ASIC revenue in the quarter, increased by 60% over the previous quarter (2Q08); and more than twice growth over the same period last year (3Q07).
The unconsolidated sales revenue from the first three quarters this year was NT$3,813 million, gross margin and net margin were 44.7% and 15.4% respectively. The accumulated EPS was NT$1.66 after implementing a new ROC accounting rule of expensing employee profit sharing.
Summary of Operating Results
Operating Results
| (Amount: NT$ million) | 3Q08 | 2Q08 | QoQ% change | 3Q07 | YoY% change |
| Revenue Gross Profit Operation Expenses Operating Income Non-op. Income (Expenses) Net Income EPS (NT$ per share) | 1,473 638 (423) 215 16 230 0.65 | 1,188 516 (358) 158 (16) 141 0.40 | 24.0 23.7 18.3 36.1 (196.8) 63.2 | 1,401 663 (334) 329 39 367 1.09 | 5.1 (3.8) 26.7 (34.7) (59.0) (37.3) |
Detailed Financials Section
COGS & Expenses
| (Amount: NT$ million) | 3Q08 | 2Q08 | QoQ% change | 3Q07 | YoY% change |
| Revenue COGS Wafer Other Mfg. Costs Gross Profit Gross Margin (%) Total Operating Exp. G&A Sales and Marketing R&D Operating Income Operating Margin (%) | 1,473 (835) (503) (332) 638 43.3% (423) (58) (16) (349) 215 14.6% | 1,188 (672) (358) (314) 516 43.4% (358) (40) (19) (299) 158 13.3% | 24.0 (24.3) 40.5 5.7 23.7 18.3 45.0 (15.8) 16.7 36.1 | 1,401 (738) (371) (367) 663 47.3% (334) (49) (29) (256) 329 23.5% | 5.1 13.1 35.6 9.5 (3.8) 26.7 18.4 (44.8) 36.3 (34.7) |
Non-operating Income (Expenses)
| (Amount: NT$ million) | 3Q08 | 2Q08 | 3Q07 |
| Net Non-operating Income (Loss) Net Interest Income (Expense) Net Investment Income (Loss) Reverse on (Inventory Loss Provision) Gain (Loss) on Disposal of Investment Exchange Gain (Loss) Others | 16 7 - (13) - 9 13 | (16) 7 (12) (11) - 2 (2) | 39 8 65 (15) - (2) (17) |
Current Assets
| (Amount: NT$ million) | 3Q08 | 2Q08 | 3Q07 |
| Cash & Cash Equiv. Notes & Accounts Receivable Days Sales Outstanding Inventory Avg. Inventory Turnover Total Current Assets | 1,157 1163 64 378 48 2,932 | 1,863 913 68 370 58 3,418 | 1,530 1,241 71 263 38 3,311 |
Liabilities
| (Amount: NT$ million) | 3Q08 | 2Q08 | 3Q07 |
| Total Current Liabilities Notes & Accounts Payable Others Long-term Liabilities Total Liabilities Liabilities to Equity | 1,550 629 921 1,569 28.5% | 2,642 623 2,019 2662 49.8% | 1,432 769 663 1,454 22.7% |
Analysis of Revenue
ASIC Revenue Breakdown by Region
| Region | 1Q08 | 2Q08 | 3Q08 |
| Taiwan | 44.7% | 52.4% | 47.4% |
| USA | 15.9% | 16.7% | 17.7% |
| Japan | 8.6% | 4.7% | 4.6% |
| Europe | 16.8% | 12.4% | 17.4% |
| Korea | 1.9% | 2.0% | 0.6% |
| China | 12.1% | 11.8% | 12.3% |
Total Revenue Breakdown by Customer Type
| Type | 1Q08 | 2Q08 | 3Q08 |
| Fabless | 47.0% | 45.7% | 48.0% |
| System | 40.7% | 46.7% | 45.4% |
| Foundry | 12.3% | 7.6% | 6.6% |
ASIC Revenue Breakdown by Geometry
| Geometry | 1Q08 | 2Q08 | 3Q08 |
| 90nm | | 0.3% | 0.2% |
| 0.13um | 15.8% | 19.7% | 24.6% |
| 0.162um | 11.7% | 8.4% | 3.5% |
| 0.18um | 43.9% | 39.8% | 45.3% |
| 0.22um | 2.2% | 1.5% | 1.8% |
| 0.25um | 8.4% | 14.2% | 9.9% |
| 0.35um | 11.3% | 9.1% | 9.2% |
| 0.45um | 1.8% | 1.3% | 0.8% |
| 0.5um | 4.6% | 5.5% | 4.3% |
| 0.6um | 0.3% | 0.2% | 0.4% |
Total Revenue Breakdown by Billing Method
| Billing | 1Q08 | 2Q08 | 3Q08 |
| ASIC MP | 70.7% | 78.6% | 84.9% |
| Design Service | 8.2% | 6.8% | 4.0% |
| IP | 21.1% | 14.6% | 11.1% |
ASIC Revenue Breakdown by Application
| Application | 1Q08 | 2Q08 | 3Q08 |
| Peripheral /Storage | 27.6% | 25.9% | 16.0% |
| Comm. | 40.9% | 31.8% | 37.3% |
| Display | 2.4% | 4.1% | 5.2% |
| Consumer | 7.9% | 14.4% | 21.0% |
| Multimedia | 19.8% | 20.2% | 17.5% |
| Others | 1.4% | 3.6% | 3.0% |
About Faraday
Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company's broad IP portfolio includes 32-bit RISC CPUs, DSPs, PHY/Controllers for USB 2.0, Ethernet, and Serial ATA. With 2007 revenue of US$ 156 million, Faraday is one of the largest fabless ASIC companies in the Asia-Pacific region, and it also has a significant presence in other world-wide market. Headquartered in Taiwan, Faraday has service and support offices around the world, including the U.S., Japan, Europe, and China. For more information, please visit: http://www.faraday-tech.com