Shanghai, China – May 11, 2010. Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) (“SMIC” or the “Company”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended March 31, 2010.
First Quarter 2010 Highlights:
- Revenue exceeded our original guidance and was up by 5.6% to $351.7 million in 1Q10 from $333.1 million in 4Q09 and up by 140.1% compared to 1Q09.
- Gross margins improved to 14.6% in 1Q10 compared to 7.6% in 4Q09 primarily due to an increase in wafer shipments and higher ASP.
- Net cash flow from operations has increased to $153.1 million in 1Q10 from $89.3 million in 4Q09.
- Loss attributable to holders of ordinary shares narrowed to US$181.9 million in 1Q10, compared to loss of US$617.7 million in 4Q09.
- Fully diluted EPS was ($0.41) per ADS.
Second Quarter 2010 Guidance:
The following statements are forward looking statements which are based on current expectation and which involve risks and uncertainties, some of which are set forth under “Safe Harbor Statements” below.
- Revenue is expected to range from 3% to 5% increase.
- Operating expenses excluding foreign exchange differences are expected to range from $80 million to $84 million.
- Capital expenditures expected to range from $150 million to $200 million.
Commenting on the quarterly results, Dr. David NK Wang, President and Chief Executive Officer of SMIC remarked, “In the first quarter of 2010, our ASP improved due to better product mix, our utilization improved to 92.1%, and our gross margin improved to 14.6%. Regionally, the North America and China continue to account for most our revenues and quarter-over-quarter growth. North America contributed more than half of revenues and 10.2% of growth, and China contributed almost one-fourth of revenues and 17.6% of growth. We saw revenue for our 90-nanometer and below technologies improve by 14.3% and we anticipate steadily improving gross margins.”
“The foundry market looks positive. We continue to see uptrend in the second quarter and remain cautiously optimistic about the third and fourth quarters. We will continue our organizational and business enhancements and look forward to updating the investment community regularly. We appreciate your support. Our top priority of sustainable profitability remains unchanged and we will strive to enhance SMIC’s fundamentals for further profitable expansion.”
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, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 45-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation, and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation.
For more information, please visit www.smics.com