Science-Based Industrial Park, Hsin-Chu, Taiwan, April 20, 1999 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) today released its audited financial results for the first quarter of 1999. For the three months ended March 31, 1999, net sales were NT$12,501 million and net income was NT$4,090 million, yielding a profit margin of 32.7%. With a total of 6,047,176 thousand shares outstanding on March 31, 1999, earnings per share for the first quarter were NT$0.68.
Mr. YC Huang, spokesman for TSMC, noted that as a result of an obvious pick-up in demand, unit sales for 1999 first quarter increased substantially in comparison to unit sales for 1998 fourth quarter. Meanwhile, in spite of fewer working days due to Chinese Lunar Year holidays and fab shutdown for annual equipment maintenance, net sales for 1999 first quarter increased 7.5% on a sequential basis.
TSMC 1999 first quarter gross margin recovered to 49.6% from 1998 fourth quarter gross margin of 33.8% mainly due to capacity utilization improvement from 67% in the fourth quarter of 1998 to 88% in the first quarter of 1999. Net income for 1999 first quarter increased significantly by 62% in comparison to that of 1998 fourth quarter as a result of a decrease in investment loss due to better operating results from Vanguard and WaferTech.
Compared with the first quarter results in 1998, when TSMC was in the midst of its peak sales period, net sales and net income for 1999 first quarter declined 20.6% and 41.1% respectively on a year-to-year basis.