Product category:
Microprocessors, Microcontrollers and DSPs
News Release from: TSMC
Edited by the Electronicstalk Editorial
Team on 26 January 2007
Inventory corrections drag down revenues
for TSMC
TSMC has announced consolidated revenue of NT $74.96 billion, net income of NT $27.91 billion, and diluted earnings per share of NT $1.08 for the fourth quarter ended 31st December 2006.
TSMC has announced consolidated revenue of NT $74.96 billion, net income of NT $27.91 billion, and diluted earnings per share of NT $1.08 for the fourth quarter ended 31st December 2006 Year-over-year, fourth quarter revenue decreased 5.4% and net income and diluted EPS decreased 17.7% and 17.8%, respectively
This article was originally published on Electronicstalk on 13 Jun 2008 at 8.00am (UK)
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On a sequential basis, fourth quarter results represent a 9.1% decrease in revenue, and a decrease of 14.1% both in net income and in diluted EPS.
All figures were prepared in accordance with ROC GAAP on a consolidated basis.
Fourth quarter business was affected by inventory correction, and revenue came to the mid point of the guidance.
Advanced process technologies (0.13um and below) accounted for 48% of wafer revenues with 90nm process technology accounting for 22% and 65nm approaching 1% of total wafer sales.
Gross margin of 46% reached the mid point of the guidance, while operating margin of 36.6% was close to the high end of guidance.
Net margin decreased 2.2 points to 37.2% from the previous quarter.
"The current inventory correction which started in the third quarter of last year is expected to continue through the first quarter of 2007, but we expect the overall demand of our business to begin to recover by the end of first quarter", said Lora Ho, VP and Chief Financial Officer of TSMC.
"Relative to the fourth quarter, the wireless communication segment appears to experience a more severe decline than the consumer and computer segments in the first quarter", said Ho.
Ho said management also expects that 2007 capital expenditure will be in the range US $2.6 billion to $2.8 billion.
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