SHANGHAI, Nov. 14, 2017 -- Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ("SMIC," the "Company," or "our"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended September 30, 2017.
Third Quarter 2017 Highlights
- Revenue was $769.7 million in 3Q17, an increase of 2.5% QoQ from $751.2 million in 2Q17 and a decrease of 0.7% YoY from $774.8 million in 3Q16.
- Gross profit was $177.3 million in 3Q17, compared to $194.1 million in 2Q17 and $232.1 million in 3Q16.
- Gross margin was 23.0% in 3Q17, compared to 25.8% in 2Q17 and 30.0% in 3Q16.
Fourth Quarter 201 7 Guidance:
The following statements are forward looking statements based on current expectations and involved risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below. The Company expects:
- Revenue to increase by 1% to 3% QoQ.
- Gross margin to range from 18% to 20%.
- Non-GAAP operating expenses, excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters, to range from $204 million to $210 million.
- Non-controlling interests of our majority-owned subsidiaries to range from positive $48 million to positive $50 million (losses to be borne by non-controlling interests).
Dr. Haijun Zhao and Dr. Liang Mong Song, SMIC's co-Chief Executive Officers commented, "Our third quarter revenue was in line with guidance and grew 2.5% quarter over quarter. The sequential growth came largely from the broad-based recovery in smartphone related shipments. By process node, 28nm wafer revenue grew 38.9% quarter over quarter, and 0.18um grew 33.8% quarter over quarter.
In the three years preceding 2017, SMIC had grown revenue and profitability on high utilizations, and in these two years, we have entered a period of transition as we prepare our technology and facilities for the next stage of growth. In the near-term, our growth drivers include: 28nm, flash memory, fingerprint sensors, and power management ICs. In the long-term, we work to speed up execution and focus our resources on key technology platforms, in which we strive to be the foundry-of-choice.
We believe in the importance of focusing our investment into strategic areas that support the long-term growth, profitability, and viability of our business. With our strengthened team, focused direction, and strong position in China, SMIC is well positioned to execute on our targets and benefit from the opportunities in the IC market. We work hard to grow the sustainable value of the company for all our stakeholders."
To see the complete results including financial tables, please click here.
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 on process nodes from 0.35 micron to 28 nanometer. Headquartered in Shanghai, China, SMIC has an international manufacturing and service base. In China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm fab in Shanghai; a 300mm fab and a majority-owned 300mm fab for advanced nodes in Beijing; 200mm fabs in Tianjin and Shenzhen; and a majority-owned joint-venture 300mm bumping facility in Jiangyin; additionally, in Italy SMIC has a majority-owned 200mm fab. 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.