United Microelectronics (UMC) Q1 2020 earnings summary

Executive summary

• Q1 2020 revenue was NT$42,268M, up 29.7% YoY and down 1.0% QoQ; operating income was NT$3,414M versus an operating loss a year earlier.

• Net income was NT$1,230M, compared with NT$93M in Q1 2019 and NT$3,155M in Q4 2019; basic EPS was NT$0.19.

Financial highlights

• Gross profit reached NT$8,122M, up 259.1% YoY and 16.6% QoQ.

• Operating expenses were NT$5,722M, up 16.0% YoY and down 7.2% QoQ; R&D expense was NT$3,185M.

• Net income attributable to parent shareholders was NT$2,207M, up 83.7% YoY and down 42.5% QoQ; non-controlling interests recorded a NT$977M loss.

• Other comprehensive loss was NT$3,714M, resulting in a total comprehensive loss of NT$2,484M.

Key financial ratios and metrics

• Gross margin was 19.2%, versus 6.9% in Q1 2019 and 16.7% in Q4 2019; operating margin was 8.1% versus (4.9%) and 4.8%, respectively.

• Net margin was 2.9%, versus 0.3% in Q1 2019 and 7.5% in Q4 2019.

• Basic EPS was NT$0.19 and EPS per ADS was NT$0.95; weighted average shares outstanding were 11,783M.

• At March 31, 2020, total assets were NT$360,457M, liabilities NT$149,637M and equity NT$210,820M.