TSMC 2004 Third Quarter Report

Hsinchu, Taiwan, R.O.C., October 26, 2004 -- Taiwan Semiconductor Manufacturing Company, Ltd. today announced revenue and net income for the quarter ended September 30, 2004. Third quarter revenue reached NT$69.74 billion while net income and fully diluted earnings per share came to NT$27.93 billion and NT$1.20 per share (US$0.18 per ADS unit), respectively.

On a sequential basis, third quarter results represent a 7.5% increase in revenue, a 19.3% increase in net income and a 19.5% increase in fully diluted EPS. Year-over-year comparison shows the increases in revenue, net income, and fully diluted EPS to be 27%, 84%, and 85%, respectively. All figures were prepared in accordance with R.O.C. GAAP on an unconsolidated basis.

The 7.5% increase in third quarter revenue mainly resulted from a 4.0% increase in wafer shipments and a 1.4% increase in wafer average selling price (ASP), further helped by a 1.8% weaker local currency to US dollar exchange rate. Gross margin for the third quarter rose to 46.1%, another significant increase sequentially from the previous quarter’s 43.4%, due to higher levels of wafer output, continuing improvement on 12-inch wafer yield, and a better product mix. Revenues from advanced process technologies (0.13-micron and below) reached 30 percent of total wafer sales. Net margin for the quarter rose to 40.1% from 36.1% in the previous quarter.

“Building upon five consecutive quarters of strong financial performance, TSMC has delivered another set of record-breaking financial results for both the top-line and the bottom-line,” said Lora Ho, VP and Chief Financial Officer of TSMC.

Ms. Ho also noted that there has been some near-term softening in customer demand. The Company’s fourth quarter revenues would decline slightly versus the third quarter of 2004.

TSMC’s 2004 third quarter results: (Unit: NT$million, except for EPS)

 

3Q’04
Amount*

3Q’03
Amount

YoY
Change %

2Q’04
Amount

QoQ
Change %

Net sales

69,735

54,877

27.1

64,869

7.5

Gross profit

32,140

21,447

49.9

28,139

14.2

Income from operations

26,121

16,487

58.4

22,134

18.0

Income before tax

28,129

16,708

68.4

23,121

21.7

Net income

27,933

15,169

84.1

23,410

19.3

EPS(NT$)

1.20**

0.65***

84.6

1.00****

19.5

* 2004 third quarter figures have not been approved by Board of Directors
** Based on 23,270 million weighted average outstanding shares
*** Based on 23,331 million weighted average outstanding shares
****Based on 23,301 million weighted average outstanding share