TSMC Reports First Quarter EPS of NT$0.72

Hsinchu, Taiwan, R.O.C., April 26, 2005 -- TSMC today announced revenue and net income for the quarter ended March 31, 2005. First quarter revenue reached NT$55.65 billion while net income and fully diluted earnings per share came to NT$16.82 billion and NT$0.72 per share (US$0.11 per ADS unit), respectively.

On a sequential basis, first quarter results represent a 12.9% decrease in revenue, a 24.2% decrease in net income and a 25.3% decrease in fully diluted EPS. Year-over-year comparison shows the decreases in revenue, net income, and fully diluted EPS to be 3.2%, 10.5%, and 10%, respectively. All figures were prepared in accordance with R.O.C. GAAP on an unconsolidated basis.

The 12.9% decrease in first quarter revenue mainly resulted from an 8.8% decrease in wafer shipments and a 4.4% weaker US dollar against the local currency, while average wafer selling price (ASP) remained at the same level. Gross margin for the first quarter declined to 38.9% from the previous quarter’s 42.5%, due to lower levels of wafer output and the unfavorable movement of the currency exchange rate. Revenues from advanced process technologies (0.13-micron and below) increased to 45% of total wafer sales, compared to 36% previously. Net margin for the quarter was 30.2% while it was 34.7% in the last quarter.

“Due primarily to low seasonality and customers’ continuing inventory digestion, our first quarter business had declined as we expected,” said Lora Ho, VP and Chief Financial Officer of TSMC. “However, we expect the digestion of inventory to be near its end,” noted Ho, “and based on the current business outlook, management’s expectations for second quarter 2005 performance are the following”:

—Wafer shipments to increase by a mid to high single digit percentage point sequentially;

—Overall utilization rate to be about 80%;

—Gross profit margin to be in the range of 38% to 40%;

—ASP to decline by a middle single digit percentage point sequentially.

TSMC’s 2005 first quarter results: (Unit: NT$ million, except for EPS)

 

1Q’05
Amount*

1Q’04
Amount

YoY
Inc. (Dec.) %

4Q’04
Amount

QoQ
Inc. (Dec.) %

Net sales

55,653

57,513

(3.2)

63,875

(12.9)

Gross profit

21,649

22,729

(4.8)

27,153

(20.3)

Income from operations

16,077

17,541

(8.3)

21,028

(23.5)

Income before tax

16,265

18,435

(11.8)

22,094

(26.4)

Net income

16,818

18,789

(10.5)

22,184

(24.2)

EPS(NT$)

0.72**

0.80***

(10.0)

0.96****

(25.3)

* 2005 first quarter figures have not been approved by Board of Directors
** Based on 23,215 million weighted average outstanding shares
*** Based on 23,342 million weighted average outstanding shares
****Based on 23,255 million weighted average outstanding share