SHANGHAI, Aug. 8, 2019 -- Semiconductor Manufacturing International Corporation (SEHK: 981; OTCQX: SMICY) ("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 June 30, 2019.
2019 Second Quarter Highlights
- Revenue was $790.9 million in 2Q19, an increase of 18.2% QoQ from $668.9 million in 1Q19, compared to $890.7 million in 2Q18 and $837.9 million (excluding technology licensing revenue) in 2Q18.
- Gross profit was $151.2 million in 2Q19, an increase of 23.8% QoQ from $122.1 million in 1Q19, compared to $217.8 million in 2Q18 and $165.0 million (excluding technology licensing revenue) in 2Q18.
- Gross margin was 19.1% in 2Q19, compared to 18.2% in 1Q19, 24.5% in 2Q18 and 19.7% (excluding technology licensing revenue) in 2Q18.
Third Quarter 2019 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 0% to 2% QoQ and to increase by 2% to 4% QoQ (excluding the contribution from the Avezzano fab).
- Gross margin to range from 19% to 21%.
- Non-GAAP operating expenses, excluding the effect of employee bonus accrual, government funding, impairment loss of tangible and intangible assets, gain or loss on the disposal of machinery and equipment, gain from the disposal of living quarters, and gain from the disposal of subsidiary, to range from $294 million to $300 million.
- Non-controlling interests of our majority-owned subsidiaries to range from positive $25 million to positive $27 million (losses to be borne by non-controlling interests).
Dr. Zhao Haijun and Dr. Liang Mong Song, SMIC's Co-Chief Executive Officers commented, "Though uncertainty in the macro environment remains, as the industry recovers, we continue to optimize internally and exit this period of transition. At the same time, we are seeing significant business growth in our mature-node technology platforms accompanied by consistent breakthroughs in leading-edge technology.
Our second quarter growth was strong, as smartphones and IoT devices drove demand; as a result, revenue grew 18% quarter over quarter. Meanwhile, the sequential growth of revenue from China and Eurasia regions was significant, increasing 25% and 34% respectively.
Furthermore, FinFET research and development continues to accelerate. Our 14nm is in risk production and is expected to contribute meaningful revenue by year-end. In addition, our second generation FinFET N+1 has already begun customer engagement. We maintain long-term and steady cooperation with customers and clutch onto the opportunities emerging from 5G, IoT, automotive and other industry trends."
To see the complete results including financial tables, please click here:
Semiconductor Manufacturing International Corporation ("SMIC"; SEHK: 981; OTCQX: SMICY), one of the leading foundries in the world, is Mainland China's most advanced and largest foundry, broadest in technology coverage, and most comprehensive in semiconductor manufacturing services. SMIC provides integrated circuit (IC) foundry and technology services on process nodes from 0.35 micron to 14 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. 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.