HSINCHU, November 13, 2014 /PRNewswire-FirstCall/ —

3Q14 Highlights (as compared to 2Q14):

  • Net Revenue Increased 7.3% to US$190.7 Million from US$177.8 Million
  • Gross Profit Increased to US$49.2 Million from US$42.0 Million
  • Gross Margin Improved to 25.8% from 23.6%
  • Operating Profit Increased to US$36.2 Million from US$27.6 Million
  • Net Earnings of US$0.64 Per Basic Common Share and US$0.62 Per Diluted Common Share Compared to US$0.19 Per Basic Common Share and US$0.18 Per Diluted Common Share
  • Generated US$18.5 Million of Free Cash Flow after US$20.4 Million of CapEx
  • Retained Balance of Cash and Cash Equivalents at US$470.4 Million from US$445.4 Million

ChipMOS TECHNOLOGIES (Bermuda) LTD. (“ChipMOS” or the “Company”) (Nasdaq: IMOS), an industry leading provider of outsourced semiconductor assembly and test services (“OSAT”), today reported unaudited consolidated financial results for the third quarter ended September 30, 2014. All U.S. dollar figures in this release are based on the exchange rate of NT$30.44 against US$1.00 as of September 30, 2014.

Net revenue for the third quarter of 2014 was NT$5,806.3 million or US$190.7 million, an increase of 7.3% from NT$5,413.4 million or US$177.8 million in the second quarter of 2014 and an increase of 13.6% from NT$5,111.9 million or US$167.9 million for the same period in 2013. This is above the high-end of the Company’s guidance, which called for revenue to increase by approximately 3% to 7%, as compared to the second quarter of 2014.

Net income for the third quarter of 2014 was NT$573.2 million or US$18.8 million, and NT$19.37 or US$0.64 per basic common share and NT$18.92 or US$0.62 per diluted common share, as compared to net income for the second quarter of 2014 of NT$169.8 million or US$5.6 million, and NT$5.70 or US$0.19 per basic common share and NT$5.56 or US$0.18 per diluted common share, and compared to net income in the third quarter of 2013 of NT$442.5 million or US$14.5 million, and NT$14.97 or US$0.49 per basic common share and NT$14.60 or US$0.48 per diluted common share.

The unaudited consolidated financial results of ChipMOS for the third quarter ended September 30, 2014 included the financial results of ChipMOS TECHNOLOGIES INC. (“ChipMOS Taiwan”), ChipMOS U.S.A., Inc., ThaiLin Semiconductor Corp. and MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, “Results for the third quarter were above plan, with revenue increasing 7.3% in the third quarter to US$190.7 million, as compared to 2Q14, and overall capacity utilization increasing to 81% in Q314, as compared to 77% in Q214. We continue to benefit from growth in our DRAM and LCD driver businesses, which grew 5.1% and 6.6%, respectively, compared to the second quarter of 2014. Revenue from our mixed-signal business was up 19%, as compared to the second quarter of 2014, while revenue derived from our flash business increased approximately 11%. Gross margin on a consolidated basis was 25.8% in the third quarter, which was at the high-end of our prior guidance range of approximately 23% to 26%. We remain positive in our near term outlook given the healthy dynamics driving demand in the end markets served by our customers, and we remain focused on building value for our shareholders. To put our current growth trajectory in perspective, before we built out our LCD driver business, 4Q seasonality would typically have resulted in revenue being down about 10% in the fourth quarter, as compared to the third quarter. For 2014, we expect 4Q to come in stronger than the seasonal norm, with revenue flat to down in the low single digits, as compared to the third quarter of 2014, and margins holding strong at approximately at 23% to 26%. We expect continued stability in 2015, as we successfully leverage our integrated assembly and test business strategy.”

S.K. Chen, Chief Financial Officer of ChipMOS, said, “We generated an additional US$18.5 million of free cash flow from our operations. This was after we invested US$20.4 million of CapEx in the third quarter of 2014, as we work to meet increased customer demand levels and improve efficiencies, including working to remove a bottleneck at our LCD driver testing and bumping segments. Our operating expenses were US$13.9 million or 7.3% of our Q3 revenue compared to US$15.7 million or 8.8% of revenue for Q2. We ended the quarter with a strong balance of cash and cash equivalents at US$470.4 million, and a net cash position of US$215.6 million. Our net debt to equity ratio remained healthy at negative 46.8%, as of September 30, 2014. Our total debt increased by US$50.6 million to US$254.8 million at the end of Q314, reflecting the strategic drawdown of US$197.1 million from our new credit facility to replace an older long-term loan, which resulted in overall lower interest expenses in the quarter. The non-controlling interests for the third quarter of 2014 increased to US$14.0 million as compared to US$9.4 million in Q214, primarily due to an increase of US$12.9 million in net income before tax at ChipMOS Taiwan in Q314 compared to Q214. We remain focused on smart growth, being a reliable partner for quality, critical OSAT services, and executing our longer-term capacity roadmap, in order to deliver consistent financial results, with further improvement to our balance sheet and shareholder value.”

Selected Operation Data

3Q14

2Q14

Revenue by segment

Testing

24%

24%

Assembly

35%

35%

LCD Driver

23%

22%

Bumping

18%

19%

Utilization by segment

Testing

77%

75%

Assembly

79%

76%

LCD Driver

85%

73%

Bumping

85%

85%

Overall

81%

77%

CapEx

US$20.4 million

US$26.1 million

Testing

20%

39%

Assembly

35%

23%

LCD Driver

10%

9%

Bumping

35%

29%

Depreciation and amortization expenses

US$23.7 million

US$23.9 million

Condensed consolidated statements of cash flows

Period ended

Sep. 30, 2014

Period ended

Sep. 30, 2013

US$ million

US$ million

Net cash generated from (used in) operating activities

130.4

145.7

Net cash generated from (used in) investing activities

(88.7)

(79.8)

Net cash generated from (used in) financing activities

(10.5)

62.6

Net increase (decrease) in cash and cash equivalents

31.2

128.5

Effect of exchange rate changes on cash

(0.1)

(0.2)

Cash and cash equivalents at beginning of period

439.3

291.2

Cash and cash equivalents at end of period

470.4

419.5

Fourth Quarter 2014 Outlook

The Company expects revenue of fourth quarter of 2014 to be approximately flat to down in the low single digits, as compared to the third quarter of 2014. The Company expects gross margin on a consolidated basis to be in the range of approximately 23% to 26% for the fourth quarter of 2014. The Company expects depreciation and amortization expenses for the fourth quarter of 2014 to be approximately US$23 million. Operating expenses are expected to be approximately 6% to 8% of revenues in the fourth quarter of 2014. The Company expects CapEx spending in support of existing customer demand to be approximately US$50 million in the fourth quarter of 2014, with CapEx spending for the full year 2014 to be approximately US$115 million as compared to US$110 million previously. The total number of the Company’s outstanding common shares at the end of the fourth quarter of 2014 is expected to be approximately 29 million.

Investor Conference Call / Webcast Details

ChipMOS will review detailed third quarter 2014 results on Wednesday, November 12, 2014 at 7:00 p.m. Eastern Time (8:00 a.m. Taiwan time, Thursday, November 13, 2014). The conference call-in number is +1-201-689-8562. A live webcast of the conference call will be available at ChipMOS’ website at http://www.chipmos.com. The playback is scheduled to be available in 2 hours after the conclusion of the conference call and will be accessible by dialing +1-858-384-5517, with confirmation ID number 13592103.

About ChipMOS TECHNOLOGIES (Bermuda) LTD.:

ChipMOS TECHNOLOGIES (Bermuda) LTD. (“ChipMOS” or the “Company”) (NASDAQ: IMOS) (http://www.chipmos.com) is an industry leading provider of semiconductor assembly and testing services. With advanced facilities in Hsinchu and Southern Taiwan Science Parks in Taiwan and Shanghai, ChipMOS and its subsidiaries provide testing and assembly services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries. The Company’s majority-owned subsidiary, ChipMOS Taiwan, is listed on TWSE under Stock Ticker 8150.

Forward-Looking Statements

Certain statements contained in this announcement may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors are included in the Company’s most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) and in the Company’s other filings with the SEC.

– FINANCIAL TABLES FOLLOW BELOW


ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended Sep. 30, Jun. 30, 2014, and Sep. 30, 2013

Figures in Million of U.S. dollars (USD) (1)

Except for Per Share Amounts and Shares Outstanding

3 months ended

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2013

USD

USD

USD

Revenue

190.7

177.8

167.9

Cost of revenue

(141.5)

(135.8)

(130.7)

Gross profit

49.2

42.0

37.2

Other operating income

0.9

1.3

1.3

Research and development expenses

(5.4)

(5.6)

(4.5)

Sales and marketing expenses

(0.9)

(0.8)

(1.1)

Administrative and general expenses

(5.7)

(6.9)

(5.8)

Other operating expenses

(1.9)

(2.4)

(0.1)

Operating profit

36.2

27.6

27.0

Non-operating income (expense), net

3.2

(4.3)

(2.9)

Profit (loss) before tax

39.4

23.3

24.1

Income tax benefit (expense)

(6.6)

(8.3)

(5.2)

Profit (loss) for the year

32.8

15.0

18.9

Attributable to:

Equity holders of the Company

18.8

5.6

14.5

Non-controlling interests

14.0

9.4

4.4

32.8

15.0

18.9

Profit (loss) for the year

32.8

15.0

18.9

Other comprehensive income (loss):

Exchange differences on translation of foreign operations

0.6

(0.4)

(0.1)

Net actuarial losses

Income tax effect

Total other comprehensive income (loss)

0.6

(0.4)

(0.1)

Total comprehensive income (loss)

33.4

14.6

18.8

Attributable to:

Equity holders of the Company

19.2

5.3

14.4

Non-controlling interests

14.2

9.3

4.4

33.4

14.6

18.8

Earnings (loss) per share attributable to the Company – basic

0.64

0.19

0.49

Shares outstanding (in thousands) – basic

29,585

29,801

29,554

Net income (loss) attributable to the Company -diluted

18.8

5.6

14.5

Earnings (loss) per share attributable to the Company – diluted

0.62

0.18

0.48

Shares outstanding (in thousands) – diluted

30,293

30,522

30,306

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.44 against US$1.00 as of Sep. 30, 2014. The convenience
translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into
US dollars at this or any other exchange rate.


ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended Sep. 30, Jun. 30, 2014, and Sep. 30, 2013

Figures in Million of NT dollars (NTD)

Except for Per Share Amounts and Shares Outstanding

3 months ended

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2013

NTD

NTD

NTD

Revenue

5,806.3

5,413.4

5,111.9

Cost of revenue

(4,307.3)

(4,135.7)

(3,977.5)

Gross profit

1,499.0

1,277.7

1,134.4

Other operating income

26.2

40.5

40.4

Research and development expenses

(164.0)

(169.0)

(137.2)

Sales and marketing expenses

(26.9)

(24.4)

(33.8)

Administrative and general expenses

(175.0)

(210.8)

(176.5)

Other operating expenses

(56.8)

(73.1)

(1.9)

Operating profit

1,102.5

840.9

825.4

Non-operating income (expense), net

96.7

(130.4)

(89.9)

Profit (loss) before tax

1,199.2

710.5

735.5

Income tax benefit (expense)

(200.3)

(253.8)

(158.9)

Profit (loss) for the year

998.9

456.7

576.6

Attributable to:

Equity holders of the Company

573.2

169.8

442.5

Non-controlling interests

425.7

286.9

134.1

998.9

456.7

576.6

Profit (loss) for the year

998.9

456.7

576.6

Other comprehensive income (loss):

Exchange differences on translation of foreign operations

17.4

(12.5)

(4.5)

Net actuarial losses

Income tax effect

Total other comprehensive income (loss)

17.4

(12.5)

(4.5)

Total comprehensive income (loss)

1,016.3

444.2

572.1

Attributable to:

Equity holders of the Company

583.7

162.1

439.1

Non-controlling interests

432.6

282.1

133.0

1,016.3

444.2

572.1

Earnings (loss) per share attributable to the Company – basic

19.37

5.70

14.97

Shares outstanding (in thousands) – basic

29,585

29,801

29,554

Net income (loss) attributable to the Company -diluted

573.2

169.8

442.5

Earnings (loss) per share attributable to the Company – diluted

18.92

5.56

14.60

Shares outstanding (in thousands) – diluted

30,293

30,522

30,306


ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of Sep. 30, Jun. 30, 2014, and Sep. 30, 2013

Figures in Million of U.S. dollars (USD) (1)

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2013

ASSETS

USD

USD

USD

Non-current assets

Available-for-sale financial assets

7.2

0.3

0.4

Property, plant & equipment

414.0

416.8

404.8

Other non-current assets

10.6

10.7

12.5

Total non-current assets

431.8

427.8

417.7

Current assets

Inventories

56.1

51.9

48.8

Accounts and notes receivable

155.6

142.7

139.4

Short-term deposits

8.6

9.6

9.8

Other current assets

11.7

7.1

15.2

Cash and cash equivalents

470.4

445.4

419.5

Total current assets

702.4

656.7

632.7

Total assets

1,134.2

1,084.5

1,050.4

EQUITY AND LIABILITIES

EQUITY

Issued capital

1.1

1.1

1.3

Capital surplus

382.5

391.3

398.1

Treasury stock

(19.1)

Retained earnings

62.4

59.0

44.4

Other component of equity

14.6

14.2

14.2

Equity attributable to equity holders of the Company

460.6

465.6

438.9

Non-controlling interests

263.1

247.9

221.6

Total equity

723.7

713.5

660.5

LIABILITIES

Non-current liabilities

Bank loans – non-current portion

158.8

97.2

139.3

Other non-current liabilities

19.2

19.1

15.4

Total non-current liabilities

178.0

116.3

154.7

Current liabilities

Accounts payable and payables to contractors and equipment suppliers

46.9

47.5

43.0

Other current liabilities

89.6

100.2

58.2

Bank loans – current portion

54.6

73.1

84.4

Short-term bank loans

41.4

33.9

49.6

Total current liabilities

232.5

254.7

235.2

Total liabilities

410.5

371.0

389.9

Total equity and liabilities

1,134.2

1,084.5

1,050.4

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$30.44 against US$1.00 as of Sep. 30, 2014. The convenience
translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into
US dollars at this or any other exchange rate.


ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of Sep. 30, Jun. 30, 2014, and Sep. 30, 2013

Figures in Million of NT dollars (NTD)

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2013

ASSETS

NTD

NTD

NTD

Non-current assets

Available-for-sale financial assets

217.7

8.6

11.6

Property, plant & equipment

12,602.4

12,687.0

12,321.2

Other non-current assets

324.4

326.6

380.3

Total non-current assets

13,144.5

13,022.2

12,713.1

Current assets

Inventories

1,708.3

1,578.4

1,486.9

Accounts and notes receivable

4,735.6

4,342.5

4,242.0

Short-term deposits

263.5

292.9

299.1

Other current assets

355.3

217.3

462.0

Cash and cash equivalents

14,319.6

13,557.9

12,770.3

Total current assets

21,382.3

19,989.0

19,260.3

Total assets

34,526.8

33,011.2

31,973.4

EQUITY AND LIABILITIES

EQUITY

Issued capital

33.9

34.9

39.4

Capital surplus

11,644.2

11,909.4

12,119.1

Treasury stock

(581.7)

Retained earnings

1,899.6

1,795.6

1,349.7

Other component of equity

442.9

432.4

433.4

Equity attributable to equity holders of the Company

14,020.6

14,172.3

13,359.9

Non-controlling interests

8,009.2

7,546.1

6,746.9

Total equity

22,029.8

21,718.4

20,106.8

LIABILITIES

Non-current liabilities

Bank loans – non-current portion

4,835.0

2,957.8

4,240.6

Other non-current liabilities

583.0

582.4

468.5

Total non-current liabilities

5,418.0

3,540.2

4,709.1

Current liabilities

Accounts payable and payables to contractors and equipment suppliers

1,427.6

1,443.6

1,309.1

Other current liabilities

2,728.9

3,051.2

1,770.6

Bank loans – current portion

1,662.4

2,225.0

2,568.3

Short-term bank loans

1,260.1

1,032.8

1,509.5

Total current liabilities

7,079.0

7,752.6

7,157.5

Total liabilities

12,497.0

11,292.8

11,866.6

Total equity and liabilities

34,526.8

33,011.2

31,973.4

Contacts:

In Taiwan

Dr. S.K. Chen

ChipMOS TECHNOLOGIES (Bermuda) LTD.

+886-6-507-7712

s.k._chen@chipmos.com


In the U.S.

David Pasquale

Global IR Partners

+1-914-337-8801

dpasquale@globalirpartners.com