All currency figures stated in this report
are in US Dollars unless stated otherwise.
The consolidated financial
statements are prepared in
accordance with International Financial Reporting Standards
("IFRS").
SHANGHAI, Feb. 14, 2019 /PRNewswire/ -- Semiconductor
Manufacturing International Corporation (NYSE: SMI) (SEHK: 981) ("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 December 31,
2018.
Fourth Quarter 2018 Highlights
- Revenue was $787.6 million in
4Q18, compared to $850.7 million in
3Q18 and $787.2 million in 4Q17.
- Gross profit was $134.1 million
in 4Q18, compared to $174.5 million
in 3Q18 and $148.5 million in
4Q17.
- Gross margin was 17.0% in 4Q18, compared to 20.5% in 3Q18 and
18.9% in 4Q17.
First 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 decrease by 16% to 18% QoQ.
- Gross margin to range from 20% to 22%.
- 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 and gain from the disposal of living
quarters, to range from $250 million to $255 million.
- Non-controlling interests of our majority-owned subsidiaries to
range from positive $10
million to positive $12 million
(losses to be borne by non-controlling interests).
Dr. Zhao Haijun and Dr. Liang Mong
Song, SMIC's Co-Chief Executive Officers commented, "With
the support of our customers and colleagues, 2018 annual revenue
grew 8.3%, which was the fourth consecutive year of growth, and
represents a record high. Q4 2018 revenue was flat year over year;
meanwhile, China revenue grew 12%
YoY. Looking into 2019, our full year core business revenue growth
target is in line with the foundry industry growth rate; however,
based on current visibility, Q1 revenue is guided to fall 16%~18%
QoQ, estimated as the trough of this year."
Dr. Zhao said, "The 2019 macro environment has a lot of
uncertainties, and we are actively seeking growth opportunities
through steady progress in expanding our customer base, enriching
mature and specialty technology product mix and applications, and
exploring value added opportunities."
Dr. Liang said, "We are working hard to establish advanced
technology total solutions, with particular focus on the
fundamentals of FinFET technology, platform development, and
customer engagement. At present, SMIC's first generation of 14nm
FinFET technology has already entered customer product
verification; product reliability and yields have readily improved.
Meanwhile, 12nm process development achieved breakthrough. Through
our research and development's continuous innovation, optimized
production, strengthening design, and pursuit of potential markets,
we are confident in our future opportunities."
To see the complete results including financial tables, please
click here:
http://www.smics.com/uploads/2018%20Q4%20Earnings%20Release_ENG_News%20Release.pdf
Conference Call / Webcast Announcement
Date: February 15, 2019
Time: 8:30 a.m.
Beijing time
Dial-in numbers:
China +86
400-620-8038
Hong
Kong
+852 3018-6771
Taiwan
+886 2-5572-3895
United
States
+1 845-675-0437
The call will be webcast live with audio at:
http://www.smics.com/en/site/company_activity
or https://edge.media-server.com/m6/p/pg6k2hsu.
An archived version of the webcast, along with an electronic
copy of this news release will be available on the SMIC
website for a period of 12 months following the webcast.
About SMIC
Semiconductor Manufacturing International Corporation ("SMIC";
NYSE: SMI; SEHK: 981), one of the leading foundries in the world,
is Mainland China's largest foundry in scale, 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 28 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; additionally, in Italy SMIC has a majority-owned 200mm fab.
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.
Safe Harbor Statements
(Under the Private Securities Litigation Reform Act of 1995)
This press release contains, in addition to historical
information, "forward-looking statements" within the meaning of the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking
statements, including statements under "First Quarter 2019
Guidance", "Capex Summary" and the statements contained in the
quotes of our Co-Chief Executive Officers are based on SMIC's
current assumptions, expectations and projections about future
events. SMIC uses words like "believe," "anticipate," "intend,"
"estimate," "expect," "project," "target" and similar expressions
to identify forward looking statements, although not all
forward-looking statements contain these words. These
forward-looking statements are necessarily estimates reflecting the
best judgment of SMIC's senior management and involve significant
risks, both known and unknown, uncertainties and other factors that
may cause SMIC's actual performance, financial condition or results
of operations to be materially different from those suggested by
the forward-looking statements including, among others, risks
associated with cyclicality and market conditions in the
semiconductor industry, intense competition in the semiconductor
industry, SMIC's reliance on a small number of customers, timely
wafer acceptance by SMIC's customers, timely introduction of new
technologies, SMIC's ability to ramp new products into volume,
supply and demand for semiconductor foundry services, industry
overcapacity, shortages in equipment, components and raw materials,
availability of manufacturing capacity, financial stability in end
markets, orders or judgments from pending litigation, intensive
intellectual property litigation in semiconductor industry, general
economic conditions and fluctuations in currency exchange
rates.
In addition to the information contained in this press release,
you should also consider the information contained in our other
filings with the SEC, including our annual report on Form 20-F
filed with the SEC on April 27, 2018,
especially in the "Risk Factors" section and such other documents
that we may file with the SEC or The Hong Kong Stock Exchange
Limited ("SEHK") from time to time, including current reports on
Form 6-K. Other unknown or unpredictable factors also could have
material adverse effects on our future results, performance or
achievements. In light of these risks, uncertainties, assumptions
and factors, the forward-looking events discussed in this press
release may not occur. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date stated or, if no date is stated, as of the date of this
press release. Except as may be required by law, SMIC undertakes no
obligation and does not intend to update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
About Non-Generally Accepted Accounting Principles
("non-GAAP") Financial Measures
To supplement SMIC's consolidated financial results presented in
accordance with IFRS, SMIC uses in this press release non-GAAP
measures of operating results that are adjusted to exclude finance
cost, depreciation and amortization, income tax benefits and
expenses, 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 and gain from the disposal
of living quarters. This earnings release also includes first
quarter 2019 guidance for non-GAAP operating expenses. The
presentation of non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with IFRS. This
earnings release includes EBITDA, EBITDA margin and non-GAAP
operating expenses which consist of total operating expenses as
adjusted to exclude 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 and
gain from the disposal of living quarters. These non-GAAP financial
measures are not calculated or presented in accordance with, and
are not alternatives or substitutes for financial measures prepared
in accordance with IFRS, and should be read only in conjunction
with the Group's financial measures prepared in accordance with
IFRS. The Group's non-GAAP financial measures may be different from
similarly-titled non-GAAP financial measures used by other
companies.
SMIC believes that use of these non-GAAP financial measures
facilitates investors' and management's comparisons to SMIC's
historical performance. The Group's management regularly uses these
non-GAAP financial measures to understand, manage and evaluate the
Group's business and make financial and operational decisions.
The accompanying table has more information and reconciliations
of each non-GAAP financial measure to its most directly comparable
GAAP financial measure. A reconciliation of non-GAAP guidance
measures to corresponding GAAP measures is not available on a
forward-looking basis because the effect of these adjustment items
excluded for the purpose of non-GAAP operating expenses guidance
are subject to some unpredictable conditions that cannot be
estimated with reasonable certainty.
Contact:
Investor Relations
+86-21-2081-2804
ir@smics.com
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SOURCE Semiconductor Manufacturing International Corporation