All currency figures stated in this report are in US Dollars unless stated otherwise.
SHANGHAI, May 12, 2016 -- 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, 2016.
First Quarter 2016 Highlights
- Revenue was a record high of $634.3 million in 1Q16, increased by 4.0% QoQ from $610.1 million in 4Q15 and increased by 24.4% YoY from $509.8 million in 1Q15.
- Gross margin was 24.2% in 1Q16, compared to 28.5% in 4Q15 and 29.4% in 1Q15.
- Profit from operations was $66.1 million in 1Q16, compared to $41.6 million in 4Q15 and $45.5 million in 1Q15.
- Net profit for the period attributable to SMIC was $61.4 million in 1Q16, as compared to $38.6 million in 4Q15 and $55.5 million in 1Q15.
Second Quarter 2016 Guidance:
The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below. The Company expects:
- Revenue to increase by 3% to 7% quarter over quarter.
- Gross margin to range from 25% to 27%.
- Non-GAAP operating expenses excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters to range from $115 million to $120 million.
- Non-controlling interests of our majority-owned subsidiaries to range from positive $9 million to positive $11 million (losses to be borne by non-controlling interests).
Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director commented, "We had another quarter with record-high revenue, continued demand strength and continued high utilizations. Purchase orders from our customers continue to be robust and are being driven by our diversified product and customer exposure, which continues to drive our utilizations high. Our customers are expanding their market share and we now target to grow revenue more than 20% this year given the great demand.
The first quarter of 2016 was another great quarter for SMIC; we surpassed the industry's revenue growth and grew more than 24% YoY. Overall utilization was 98.8% in the first quarter, in which even our newly ramping fabs experienced strong customer demand. Last quarter marks our 16th consecutive profitable quarter and we continue to target sustained profitability.
Overall, we believe SMIC is strategically building competitiveness globally and further optimizing our position as the preferred foundry provider in mainland China. We expect growth again in the second quarter, but remain constrained by the pace of our capacity growth. SMIC is optimistic in the long-term given our strategy, strong customer partnerships, and execution track record."
Conference Call / Webcast Announcement
Date: May 13, 2016
Time: 8:30 a.m. Shanghai 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 http://edge.media-server.com/m/p/ivhxouhj.
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.
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 at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab and a second majority owned 300mm fab for advance nodes in Beijing; and 200mm fabs in Tianjin and Shenzhen. 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 .