Shanghai [2010-05-11]
All currency figures stated in this report are in US Dollars unless stated otherwise.
The financial statement amounts in this report are determined in accordance with US GAAP.
Shanghai, China – May 11, 2010. Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) (“SMIC” or the “Company”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended March 31, 2010.
First Quarter 2010 Highlights:
- Revenue exceeded our original guidance and was up by 5.6% to $351.7 million in 1Q10 from $333.1 million in 4Q09 and up by 140.1% compared to 1Q09.
- Gross margins improved to 14.6% in 1Q10 compared to 7.6% in 4Q09 primarily due to an increase in wafer shipments and higher ASP.
- Net cash flow from operations has increased to $153.1 million in 1Q10 from $89.3 million in 4Q09.
- Loss attributable to holders of ordinary shares narrowed to US$181.9 million in 1Q10, compared to loss of US$617.7 million in 4Q09.
- Fully diluted EPS was ($0.41) per ADS.
Second Quarter 2010 Guidance:
The following statements are forward looking statements which are based on current expectation and which involve risks and uncertainties, some of which are set forth under “Safe Harbor Statements” below.
- Revenue is expected to range from 3% to 5% increase.
- Operating expenses excluding foreign exchange differences are expected to range from $80 million to $84 million.
- Capital expenditures expected to range from $150 million to $200 million.
Commenting on the quarterly results, Dr. David NK Wang, President and Chief Executive Officer of SMIC remarked, “In the first quarter of 2010, our ASP improved due to better product mix, our utilization improved to 92.1%, and our gross margin improved to 14.6%. Regionally, the North America and China continue to account for most our revenues and quarter-over-quarter growth. North America contributed more than half of revenues and 10.2% of growth, and China contributed almost one-fourth of revenues and 17.6% of growth. We saw revenue for our 90-nanometer and below technologies improve by 14.3% and we anticipate steadily improving gross margins.”
“The foundry market looks positive. We continue to see uptrend in the second quarter and remain cautiously optimistic about the third and fourth quarters. We will continue our organizational and business enhancements and look forward to updating the investment community regularly. We appreciate your support. Our top priority of sustainable profitability remains unchanged and we will strive to enhance SMIC’s fundamentals for further profitable expansion.”
Conference Call / Webcast Announcement
Date: Wednesday, May 12, 2010
Time: 8:30 a.m. Shanghai time
Dial-in numbers and pass code:
US 1-617-614-3672 (Pass code: SMIC)
HK 852-3002-1672 (Pass code: SMIC)
A live webcast of the 2010 first quarter announcement will be available at http://www.smics.com under the “Investor Relations” section, or at
URL: http://phx.corporate-ir.net/playerlink.zhtml?c=176474&s=wm&e=3029260.
An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.
About SMIC
Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 45-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation, and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation.
For more information, please visit www.smics.com
Safe Harbor Statements
(Under the Private Securities Litigation Reform Act of 1995)
This press release contains, in addition to historical information, “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements concerning, the Company continues to see uptrend in the second quarter and remain cautiously optimistic about the second half of 2010; the Company’s goal of sustainable profitability and statements under “Second Quarter 2010 Guidance” are based on SMIC’s current assumptions, expectations and projections about future events. SMIC uses words like “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “confident” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC’s senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC’s actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements, including among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition, timely wafer acceptance by SMIC’s customers, timely introduction of new technologies, SMIC’s ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, availability of manufacturing capacity, financial stability in end markets, future fluctuations of the share price of SMIC and possible future litigation and claims.
Investors should consider the information contained in SMIC’s filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 20-F filed with the SEC on June 22, 2009, especially in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections, and such other documents that SMIC may file with the SEC or SEHK from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as may be required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.
For full version of earnings release go to the Investor Relations page of www.smics.com
Investor Contacts:
Investor Relations
IR@smics.com
+86-21-3861-0000 ext.12804
All currency figures stated in this report are in US Dollars unless stated otherwise.
The financial statement amounts in this report are determined in accordance with US GAAP.
Shanghai, China – May 11, 2010. Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) (“SMIC” or the “Company”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended March 31, 2010.
First Quarter 2010 Highlights:
- Revenue exceeded our original guidance and was up by 5.6% to $351.7 million in 1Q10 from $333.1 million in 4Q09 and up by 140.1% compared to 1Q09.
- Gross margins improved to 14.6% in 1Q10 compared to 7.6% in 4Q09 primarily due to an increase in wafer shipments and higher ASP.
- Net cash flow from operations has increased to $153.1 million in 1Q10 from $89.3 million in 4Q09.
- Loss attributable to holders of ordinary shares narrowed to US$181.9 million in 1Q10, compared to loss of US$617.7 million in 4Q09.
- Fully diluted EPS was ($0.41) per ADS.
Second Quarter 2010 Guidance:
The following statements are forward looking statements which are based on current expectation and which involve risks and uncertainties, some of which are set forth under “Safe Harbor Statements” below.
- Revenue is expected to range from 3% to 5% increase.
- Operating expenses excluding foreign exchange differences are expected to range from $80 million to $84 million.
- Capital expenditures expected to range from $150 million to $200 million.
Commenting on the quarterly results, Dr. David NK Wang, President and Chief Executive Officer of SMIC remarked, “In the first quarter of 2010, our ASP improved due to better product mix, our utilization improved to 92.1%, and our gross margin improved to 14.6%. Regionally, the North America and China continue to account for most our revenues and quarter-over-quarter growth. North America contributed more than half of revenues and 10.2% of growth, and China contributed almost one-fourth of revenues and 17.6% of growth. We saw revenue for our 90-nanometer and below technologies improve by 14.3% and we anticipate steadily improving gross margins.”
“The foundry market looks positive. We continue to see uptrend in the second quarter and remain cautiously optimistic about the third and fourth quarters. We will continue our organizational and business enhancements and look forward to updating the investment community regularly. We appreciate your support. Our top priority of sustainable profitability remains unchanged and we will strive to enhance SMIC’s fundamentals for further profitable expansion.”
Conference Call / Webcast Announcement
Date: Wednesday, May 12, 2010
Time: 8:30 a.m. Shanghai time
Dial-in numbers and pass code:
US 1-617-614-3672 (Pass code: SMIC)
HK 852-3002-1672 (Pass code: SMIC)
A live webcast of the 2010 first quarter announcement will be available at http://www.smics.com under the “Investor Relations” section, or at
URL: http://phx.corporate-ir.net/playerlink.zhtml?c=176474&s=wm&e=3029260.
An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.
About SMIC
Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 45-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation, and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation.
For more information, please visit www.smics.com
Safe Harbor Statements
(Under the Private Securities Litigation Reform Act of 1995)
This press release contains, in addition to historical information, “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements concerning, the Company continues to see uptrend in the second quarter and remain cautiously optimistic about the second half of 2010; the Company’s goal of sustainable profitability and statements under “Second Quarter 2010 Guidance” are based on SMIC’s current assumptions, expectations and projections about future events. SMIC uses words like “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “confident” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC’s senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC’s actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements, including among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition, timely wafer acceptance by SMIC’s customers, timely introduction of new technologies, SMIC’s ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, availability of manufacturing capacity, financial stability in end markets, future fluctuations of the share price of SMIC and possible future litigation and claims.
Investors should consider the information contained in SMIC’s filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 20-F filed with the SEC on June 22, 2009, especially in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections, and such other documents that SMIC may file with the SEC or SEHK from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as may be required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.
For full version of earnings release go to the Investor Relations page of www.smics.com
Investor Contacts:
Investor Relations
IR@smics.com
+86-21-3861-0000 ext.12804
