UMC's Q4 loss widens as utilization sinks
Company dragged down by non-operating losses
Dylan McGrath
(02/10/2009 3:08 AM EST)
URL: eetimes.com
SAN FRANCISCO—United Microelectronics Corp. posted a net loss of NT$23.51 billion ($717 million) on revenue of NT$18.54 billion ($566 million) in the fourth quarter of 2008, the company said Tuesday (Feb. 10).
Revenue decreased 25.1 percent from the third quarter of 2008 and 32.9 percent compared to the same period of 2007, UMC said.
The net loss widened from NT$1.4 billion ($41.3 million) in the third quarter of 2008, UMC said.
UMC's fourth quarter numbers were weighed down by non-operating losses of NT$21.78 billion ($682 million), the company said.
For full year 2008, UMC reported a net loss of NT$22.3 billion ($686.9 million) on revenue of NT$92.5 billion ($2.7 billion), UMC said. Revenue was down 13.3 percent from 2007, when UMC reported a profit of NT$12.8 billion ($377 million).
"Customers still remain conservative about end market demand and are strictly controlling their purchase orders and inventory levels. However, UMC's internal indicators have shown signs that the demand drop may have bottomed out, and we are closely watching for signs of recovery," said Shih-Wei Sun, CEO of UMC, in a statement.
Sun said UMC's R&D for advanced technologies remains on schedule as planned.
UMC's fourth quarter capacity utilization rate fell to 48 percent, down from 79 percent in the third quarter and 86 percent in the fourth quarter of 2007.
In the fourth quarter, 90-nm products accounted for the largest chunk of UMC's revenue, 27 percent. For the year, the company derived 30 percent of its revenue from 90-nm products.
Fourth quarter wafer shipments were equivalent to 567,000 8-inch wafer equivalents, down 35.8 percent from 883,000 in the third quarter, UMC said.
UMC derived 80 percent of its fourth quarter revenue from fabless customers and 20 percent from integrated device manufacturers.
UMC said its total capital expenditures for 2008 amounted to $349 million, lower than the originally planned investment of $400 million to $500 million, due to diminished demand. Planned capital spending in 2009 is not expected to exceed $400 million, the company said. |
