Science-Based Industrial Park, Hsin-Chu, Taiwan, October 22, 1999 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), ("TSMC" or the "Company") announced today its reviewed financial results for the third quarter of 1999. Net sales for the third quarter of 1999 amounted to NT$19,707 million, net income totaled NT$6,137 million, and earnings per share were NT$0.81 based on the current 7,548 million shares outstanding. For the nine months ended September 30, 1999, net sales were NT$49,440 million and net income was NT$16,249 million. With a total of 7,548 million shares outstanding, earnings per share for the nine months of 1999 were NT$2.15.
Mr. YC Huang, TSMC Spokesman, pointed out that despite the damage caused by the recent destructive earthquake, the Company's third quarter wafer shipment reached a new record high at 465 thousand 8-inch equivalent wafers due to continued growth in the worldwide IC market. The Company's 1999 third quarter sales also set a new record high, registering a 14.4% increase over the second quarter of 1999. Compared with the second quarter of 1999, net income for the third quarter of 1999 increased 1.9%.
Meanwhile, the gross margin for the third quarter of 1999 increased to 44.5%, which was better than last year's 33.2% over the same period. The result was mainly due to substaintial growth in utilization rate and wafer shipment. In addition, investment losses decreased due to the better operating results. In summary, despite the impact of the earthquake, TSMC's net sales and net income for the third quarter of 1999 substaintailly increased 75.0% and 190.2%, respectively, over the same period of time last year.