Hsinchu, Taiwan, R.O.C., Oct. 17, 2019 -- TSMC today announced consolidated revenue of NT$293.05 billion, net income of NT$101.07 billion, and diluted earnings per share of NT$3.90 (US$0.62 per ADR unit) for the third quarter ended September 30, 2019.
Year-over-year, third quarter revenue increased 12.6% while net income and diluted EPS both increased 13.5%. Compared to second quarter 2019, third quarter results represented a 21.6% increase in revenue and a 51.4% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, third quarter revenue was $9.40 billion, which increased 10.7% year-over-year and increased 21.3% from the previous quarter.
Gross margin for the quarter was 47.6%, operating margin was 36.8%, and net profit margin was 34.5%.
In the third quarter, shipments of 7-nanometer accounted for 27% of total wafer revenue and 10-nanometer process technology contributed 2% while 16-nanometer accounted for 22%. Advanced technologies, defined as 16-nanometer and more advanced technologies, accounted for 51% of total wafer revenue.
“Our third quarter business benefited from new product launches both in premium smartphones and high performance computing applications using TSMC’s industry-leading 7-nanometer technology,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “We expect the strength of demand for our 7-nanometer technology will continue, driven by high-end smartphones, initial 5G deployment and HPC-related applications. Based on our current business outlook, management expects the overall performance for fourth quarter 2019 to be as follows”:
- Revenue is expected to be between US$10.2 billion and US$10.3 billion;
And, based on the exchange rate assumption of 1 US dollar to 30.6 NT dollars,
- Gross profit margin is expected to be between 48% and 50%;
- Operating profit margin is expected to be between 37% and 39%
The management further expects the 2019 capital budget to be between US$14 billion and US$15 billion.
TSMC's 2019 third Quarter Consolidated results:
(Unit: NT$ million, except for EPS)
| ||3Q19 |
|YoY Inc. (Dec.) % ||2Q19 Amount ||QoQ Inc. (Dec.) % |
|Net Sales ||293,045 ||260,348 ||12.6 ||240,999 ||21.6 |
|Gross profit ||139,412 ||123,367 ||13.0 ||103,730 ||34.4 |
|Income from operations ||107,887 ||95,245 ||13.3 ||76,304 ||41.4 |
|Income before tax ||112,336 ||98,897 ||13.6 ||80,545 ||39.5 |
|Net income ||101,070 ||89,072 ||13.5 ||66,765 ||51.4 |
|EPS (NTS) ||3.90b ||3.44b ||13.5 ||2.57b ||51.4 |
a: 3Q2019 figures have not bee approved by Board of Directors
b: Based on 25,930 million weighted average outstanding shares