Second Quarter 2007 Highlights[1]:
- Quarter-over-quarter revenue decreased 0.8% to NT$1,390 million (US$42.9 million)
- Gross margin raise to 52.0%
- Net income of NT$383 million (US$11.8 million)
- Earnings per share of NT$1.14 for the quarter; accumulated EPS for 2007 was NT$5.03
Hsinchu, Taiwan --- February 21, 2008 -- Faraday Technology Corporation (TSE: 3035), a leading fabless ASIC design solution and silicon IP provider, today announced its nconsolidated operating results for the quarter ended December 31, 2007. The fourth quarter revenue was NT$1,390 million, while net income and basic earnings per share came to NT$383 million and NT$1.14 per share, respectively.
Thanks to a higher percentage from higher-margin IP business and ASIC communication projects, gross margin of the quarter raise to 52.0%, significantly higher than previous quarter’s 47.3%. The operating margin of 4Q07 was 23.7%. Net income achieved NT$383 million, increased 4.5% over the previous quarter, and increased 2.5% over the same period last year.
The unconsolidated sales revenue for 2007 were NT$5,092 million, and gross margin for 2007 were 51.3%, significantly higher than pervious year’s 45.9%. Net margin for 2007 was 33.3%, and accumulated EPS for the year was NT$5.03.
[1]Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are un-audited, un-consolidated, and represent comparisons among the three-month period ending December 31, 2007, the three-month period ending September 30, 2007, and the equivalent three-month period that ended December 31, 2006. For all 4Q07 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$32.355 to one U.S. dollar.
Summary of Operating Results
| Operating Results |
| (Amount: NT$ million) | 4Q07 | 3Q07 | QoQ%
change | 4Q06 | YoY%
change | | Revenue | 1,390 | 1,401 | (0.8) | 1,230 | 13.0 | | Gross Profit | 722 | 663 | 9.0 | 613 | 17.8 | | Operation Expenses | (393) | (334) | 17.8 | (369) | 6.7 | | Operating Income | 329 | 329 | - | 244 | 34.5 | | Non-op. Income (Expenses) | 49 | 39 | 28.8 | 132 | (62.2) | | Net Income | 383 | 367 | 4.5 | 374 | 2.5 | | EPS (NT$ per share) | 1.14 | 1.09 |
| 1.20 |
| |
Detailed Financials Section
| COGS & Expenses |
| (Amount: NT$ million) | 4Q07 | 3Q07 | QoQ%
change | 4Q06 | YoY%
change | | Revenue | 1,390 | 1,401 | (0.8) | 1,230 | 13.0 | | COGS | (668) | (738) | (9.5) | (617) | 8.3 | | Wafer | (351) | (371) | (5.4) | (344) | 2.0 | | Other Mfg. Costs | (317) | (367) | (13.6) | (273) | 16.1 | | Gross Profit | 722 | 663 | 9.0 | 613 | 17.8 | | Gross Margin (%) | 52.0% | 47.3% |
| 49.9% |
| | Total Operating Exp. | (393) | (334) | 17.8 | (369) | 6.7 | | G&A | (58) | (49) | 18.4 | (45) | 29.2 | | Sales and Marketing | (42) | (29) | 45.7 | (58) | (27.1) | | R&D | (293) | (256) | 14.5 | (266) | 10.2 | | Operating Income | 329 | 329 | 0.0 | 244 | 34.5 | | Operating Margin (%) | 23.7% | 23.5% |
| 19.9% |
| |
| Non-operating Income (Expenses) |
| (Amount: NT$ million) | 4Q07 | 3Q07 | 4Q06 | | Net Non-operating Income(Loss) | 49 | 39 | 132 | | Net Interest Income (Expense) | 5 | 8 | 5 | | Net Investment Income (Loss) | 58 | 65 | 160 | | Reverse on (Inventory Loss Provision) | (8) | (15) | (23) | | Gain (Loss) on Disposal of Investment | - | - | - | | Exchange Gain (Loss) | 0 | (2) | 1 | | Others | (6) | (17) | (11) | |
| Current Assets |
| | | | | | Cash & Cash Equiv. | | | | | Notes & Accounts Receivable | | | | | Days Sales Outstanding | | | | | Inventory | | | | | Avg. Inventory Turnover | | | | | Total Current Assets | | | | |
| Liabilities |
| (Amount: NT$ million) | 4Q07 | 3Q07 | 4Q06 | | Total Current Liabilities | 1,387 | 1,432 | 1,314 | | Notes & Accounts Payable | 759 | 769 | 612 | | Others | 628 | 663 | 702 | | Long-term Liabilities | 21 |
|
| | Total Liabilities | 1,408 | 1,454 | 1,339 | | Liabilities to Equity | 21.8% | 22.7% | 19.9% | |
Analysis of Revenue
| ASIC Revenue Breakdown by Region |
| Region | 2Q07 | 3Q07 | 4Q07 | | Taiwan | 54.1% | 48.2% | 37.0% | | USA | 21.9% | 23.1% | 15.5% | | Japan | 5.9% | 5.4% | 8.3% | | Europe | 7.3% | 15.0% | 31.2% | | Korea | 6.1% | 2.7% | 2.9% | | China | 4.7% | 5.6% | 5.1% | |
| ASIC Revenue Breakdown by Geometry |
| Geometry | 2Q07 | 3Q07 | 4Q07 | | 90nm |
| 0.4% |
| | 0.13um | 4.7% | 8.6% | 9.5% | | 0.162um | 3.7% | 13.6% | 5.6% | | 0.18um | 50.3% | 52.4% | 57.9% | | 0.22um | 4.9% | 1.6% | 2.6% | | 0.25um | 11.5% | 7.9% | 10.4% | | 0.35um | 15.2% | 9.7% | 8.6% | | 0.45um | 1.9% | 1.5% | 1.1% | | 0.5um | 6.9% | 3.8% | 4.0% | | 0.6um | 0.9% | 0.5% | 0.3% | |
| Total Revenue Breakdown by Customer Type |
| Type | 2Q07 | 3Q07 | 4Q07 | | Fabless | 47.9% | 43.5% | 64.2% | | System | 32.3% | 41.2% | 26.4% | | Foundry | 19.8% | 15.3% | 9.4% | |
| Total Revenue Breakdown by Billing Method |
| Billing | 2Q07 | 3Q07 | 4Q07 | | ASIC | 60.7% | 68.3% | 71.5% | | Design Service | 11.2% | 11.8% | 7.6% | | IP | 28.1% | 19.9% | 20.9% | |
| ASIC Revenue Breakdown by Application |
| Application | 2Q07 | 3Q07 | 4Q07 | | Peripheral | 19.1% | 23.5% | 11.6% | | Storage | 12.7% | 15.6% | 13.5% | | Comm. | 29.3% | 29.7% | 51.3% | | Display | 4.1% | 4.0% | 3.3% | | Consumer | 7.6% | 5.7% | 2.7% | | Multimedia | 18.8% | 17.8% | 13.1% | | Others | 8.4% | 3.7% | 4.5% | |
About Faraday
Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company’s broad silicon IP portfolio includes Cell Library ,Memory Compiler, ARM-compliant CPUs, DDRII, MPEG4, H.264, USB 2.0, 10/100 Ethernet, Serial ATA, PCI Express, and UWB . With more than 800 employees and 2007 revenue of US$ 156 million, Faraday is one of the largest fabless ASIC companies in the Asia-Pacific region, and it also has a significant presence in other world-wide markets. Headquartered in Taiwan, Faraday has service and support offices around the world, including the U.S., Japan, Europe, and China . For more information, please visit: http://www.faraday-tech.com
