Skip to main content

Market Overview

United Microelectronics Misses On Q1 Revenue, Beats Earnings, Expands Gross Margins

Share:
United Microelectronics Misses On Q1 Revenue, Beats Earnings, Expands Gross Margins

United Microelectronics Corp’s (NYSE: UMC) reported first-quarter FY21 revenue growth of 11.4% year-on-year to $1.65 billion (NT$47.10 billion), missing analyst estimate of $1.68 billion.

Earnings: Revenue contribution from the Asia Pacific rose to 63% from 56% last year, North American revenue contribution declined from 29% to 23%. Revenue contribution from Europe rose to 8%, and Japan’s contribution declined from 9% to 6%.

Revenue from fabless customers declined from 88% in Q1 FY20 to 86% in Q1 FY21. Revenue contribution from computers rose from 13% in Q1 FY20 to 16% in Q1 FY21. 

Communication revenue contribution declined from 54% to 46%, while Consumer revenue contribution rose from 24% to 27%, and Other revenue contribution rose from 9% to 11%.

UTM’s gross margin expanded 730 basis points to 26.5%.

Strong wafer demand drove full utilization of the company’s manufacturing sites, bringing overall wafer shipments to 2.37 million 8-inch equivalents, stated UMC co-President, Jason Wang. The higher contribution of its 28nm technologies from strong wafer demand for digital TV, set-top box, and connectivity chips designed into smartphones drove the gross profit growth, said Wang. 

The 28nm revenue represented 20% of the wafer business. The company had started to ship 22nm products leading to their revenue recognition in 1Q21. The company estimated a material pickup in 22nm product tape-outs, added Wang. Revenue contribution from 40nm and below technologies remained at 40%.

EPS rose 347.4% to $0.149 (NT$0.85), beating the analyst estimate of $0.1.

The company generated NT$18.3 billion in operating cash flow. It held $107.3 billion in cash and equivalents.

Guidance: The capital expenditure (Capex) for Q1 FY21 was $275 million. Full-year 2021 Capex estimate was $2.3 billion, including the company’s collaborative Fab 12A P6 expansion plan with its customers.

The Q2 FY21 wafer shipment is estimated to increase by 2% quarter-on-quarter. The ASP in $ is expected to rise between 3-4%.

Price action: UMC shares traded higher by 0.37% at $10.86 in the premarket session on the last check Wednesday.

Image Courtesy: Wikimedia

 

Related Articles (UMC)

View Comments and Join the Discussion!

Posted-In: semiconductorsEarnings News Guidance Tech Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com