SMIC Reports Robust Q4 Earnings Despite Lower Wafer Shipment, Issues Optimistic Guidance

Semiconductor Manufacturing International Corporation (OTC: SMICY) reported year-over-year revenue growth of 16.9% to $981.1 million in the fourth quarter of FY20.
Higher demand for smartphones, consumer electronics, smart home drove the revenue growth. Mainland China and Hing Kong led geographical revenue, followed by North America and Eurasia.
The capacity utilization stood at 95.5% versus 98.8% in the year-ago period.
Gross profit declined by 11.4% to $176.8 million with a margin contraction by 618 basis points at 18% due to lower shipment of wafer and change in the product mix.
Profit from operations declined 14.4% to $17.2 million, supported by a decrease in operating expenses by 11% from lower shipment.
As a result, the profit rose 202.1% to $228.6 million.
The EPS rose 50% to $0.03.
Cash flow from operations declined 25.8% to $533.7 million.
The company expects sequential revenue growth between 7-9% in the first quarter of FY21. The gross margin expectation stands between 17-19%.