John G.,
Thanks for the research and the analysis of the conference call.
Thread,
One other item mentioned was the collection of outstanding Accounts Receivable. i.e. Reduce DSOs to 60 from 88.
Current AR is $28.699M. That sounds like about $9M. Precise calculation yields $9.099M.
Most of that should just fall straight through to the bottom line. i.e. - The equipment has already been sold, made, delivered and installed at Samsung. There should be no further COGS; and the tax rate was set at 5-10% during the quarter.
So we could see reported earnings in the order of $0.50. i.e. the extra 45¢ plus the 4¢ that I was expecting.
I don't know how the analysts will actually treat this. It is operating earnings. But they really should have been spread throughout the year, not all lumped together in 4Q.
Any insights on accounting treatment for this one would be appreciated.
Thanks,
Ian.
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Don K,
Here's the headlines for stories re UMC for the past 30 days from DowJones Newswire service.
Headline Date
Taiwan Execs: Shortages Will Cut Into 4Q PC Production Oct. 20
Taiwan Execs: Shortages Will Cut Into 4Q PC Production Oct. 19
Taiwan's United Microelectronics Planning ADR In Mid-2000 Oct. 18
Amid Deals, S3 Chairman Says Company Still Likes Core Business Oct. 15
S3 Inc. CEO Takes Aim At ATI Technologies Oct. 15
Taiwan United Micro Installs Equipment In New Plant Oct. 13
Tech Sector Rally Pulls Taiwan Shares Out Of Quake Shock Oct. 12
CSM Set to Make Solid Debut In U.S. and Singapore Markets Oct. 12
Toshiba Sees Taiwan Windbond DRAM Supply Little Disrupted Oct. 11
Taiwan Hot Stk: United Microelec Up On Sep Sales, Merger Oct. 11
AWSJ: Heard On The Street In Singapore: CSM Plans An IPO Oct. 11
AWSJ: Heard On The Street In Singapore: CSM Plans An IPO Oct. 11
Review: Taiwan Semicon Mfg's Chang Bets On Service Oct. 6
Taiwan Chip Cos Fully Operational;Normal Output In Nov Oct. 5
Hitachi To Outsource Chip Production To Taiwan Oct. 4
Review: Taiwan's Hi-Tech Cos Recover Quickly From Quake Sep. 29
Taiwan Chip Cos Bounce Back, But Quake Ripples To Linger Sep. 29
Oak Tech:ITC Upholds Validity Of CD-ROM Controller Patent Sep. 29
CORRECT: SanDisk: Power Returns To UMC Grp's MFG Plant Sep. 28
SanDisk Power Returns To 90% Of UMC Grp's Fab Machinery Sep. 28
Taiwan Chipmakers Seek To Allay Investors' Concerns Sep. 28
UMC Group: ITC Rejects Oak Tech Competition Claim Sep. 28
A Week After Quake, Fears Over Taiwan Chipmakers Ease Sep. 27
Taiwan's United Micro Grp Sees 25% Loss In Sep Rev Sep. 27
Lattice Semiconductor: No Fincl Impact From Earthquake Sep. 23
Earthquake Aftermath Could Idle Taiwan's Chip Industry for Weeks Sep. 23
AWSJ: Quake Causes Global Shocks In PC Industry Sep. 22
AWSJ: Quake Causes Global Shocks In PC Industry Sep. 22
Taiwan Computer Sector Scrambles To Regain Footing After Earthquake
And the most interesting story which implies that MTSN is going to see some Cu sales to UMC during the next two quarters at least...
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October 13, 1999
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Taiwan United Micro Installs Equipment In New Plant
TAIPEI -- United Microelectronics Corp. (Q.WBE) has begun installing manufacturing equipment in its new manufacturing plant, and is expected to begin trial production in December, Taiwan's second biggest chipmaker said in a press release Wednesday.
The 8-inch wafer plant is located in the Hsinchu Science-based Industrial Park, Taiwan's high-technology hub, which saw production disrupted by last month's earthquake.
The planned production in the new plant hasn't been affected by the quake and is two weeks ahead of schedule, the company said.
The plant, built at a cost of more than NT$45 billion (US$1=NT$31.772), is one of two UMC plants that will begin large-scale production of eight-inch wafers in 2000.
The plant is expected to be turning out 20,000 wafers a month by the end of 2000, although it has a planned capacity of some 40,000 wafers a month.
It will also use leading-edge 0.18 micron process technology and produce logic chips, eventually advancing to 0.15 micron and 0.13 micron, the release said.
UMC's other eight-inch plant, Fab 8D, will use copper-based manufacturing technology and will begin trial production during the first quarter of next year.
Once the two plants have come on-line, the chipmaker will have a total of seven eight-inch wafer plants with a combined output in 2000 of more than 24 million wafers.
Half of that output will be produced with 0.18 or 0.25 micron process technology, giving the UMC Group the greatest 0.18 and 0.25 micron capacity held by a chip foundry, the release said.
UMC's stock closed unchanged at NT$81.00 Wednesday on volume of 66.8 million shares.
-By Dermot Doherty;( |
