Third Quarter 2008 Highlights: - Quarter-over-quarter revenue increased by 24% to NT$1,473 million (US$47million)
- Gross margin, 43.3%
- Net income of NT$230 million (US$7.4 million)
- Earnings per share of NT$0.65 for the quarter
Hsinchu, Taiwan – October 24 , 2008 – Faraday Technology Corporation (TSE: 3035), a leading fabless ASIC design service and silicon IP provider, today announced its unconsolidated operating results for the quarter ended September 30, 2008. The third quarter revenue was NT$1,473 million, while net income and basic earnings per share came to NT$230 million and NT$0.65 per share, respectively. Thanks to a higher percentage from ASIC mass production business, the revenue of 3Q08 increased by 24% compared to 2Q08. ASIC mass production revenue was NT$1,251 million, increased by 34.0% compared to the previous quarter (2Q08); and up 30.7% over the same period last year (3Q07). Advanced process technologies (0.13-micron and below) accounted for 24.8% of the overall ASIC revenue in the quarter, increased by 60% over the previous quarter (2Q08); and more than twice growth over the same period last year (3Q07).
The unconsolidated sales revenue from the first three quarters this year was NT$3,813 million, gross margin and net margin were 44.7% and 15.4% respectively. The accumulated EPS was NT$1.66 after implementing a new ROC accounting rule of expensing employee profit sharing.
Summary of Operating Results
Operating Results
| (Amount: NT$ million) | 3Q08 | 2Q08 | QoQ% change | 3Q07 | YoY% change |
Revenue
Gross Profit
Operation Expenses
Operating Income
Non-op. Income (Expenses)
Net Income
EPS (NT$ per share) | 1,473
638
(423)
215
16
230
0.65 | 1,188
516
(358)
158
(16)
141
0.40 | 24.0
23.7
18.3
36.1
(196.8)
63.2 | 1,401
663
(334)
329
39
367
1.09 | 5.1
(3.8)
26.7
(34.7)
(59.0)
(37.3) |
Detailed Financials Section
COGS & Expenses
| (Amount: NT$ million) | 3Q08 | 2Q08 | QoQ% change | 3Q07 | YoY% change |
Revenue
COGS
Wafer
Other Mfg. Costs
Gross Profit
Gross Margin (%)
Total Operating Exp.
G&A
Sales and Marketing
R&D
Operating Income
Operating Margin (%) | 1,473
(835)
(503)
(332)
638
43.3%
(423)
(58)
(16)
(349)
215
14.6% | 1,188
(672)
(358)
(314)
516
43.4%
(358)
(40)
(19)
(299)
158
13.3% | 24.0
(24.3)
40.5
5.7
23.7
18.3
45.0
(15.8)
16.7
36.1
| 1,401
(738)
(371)
(367)
663
47.3%
(334)
(49)
(29)
(256)
329
23.5% | 5.1
13.1
35.6
9.5
(3.8)
26.7
18.4
(44.8)
36.3
(34.7)
|
Non-operating Income (Expenses)
| (Amount: NT$ million) | 3Q08 | 2Q08 | 3Q07 |
Net Non-operating Income (Loss)
Net Interest Income (Expense)
Net Investment Income (Loss)
Reverse on (Inventory Loss Provision)
Gain (Loss) on Disposal of Investment
Exchange Gain (Loss)
Others | 16
7
-
(13)
-
9
13 | (16)
7
(12)
(11)
-
2
(2) | 39
8
65
(15)
-
(2)
(17) |
Current Assets
| (Amount: NT$ million) | 3Q08 | 2Q08 | 3Q07 |
Cash & Cash Equiv.
Notes & Accounts Receivable
Days Sales Outstanding
Inventory
Avg. Inventory Turnover
Total Current Assets | 1,157
1163
64
378
48
2,932 | 1,863
913
68
370
58
3,418 | 1,530
1,241
71
263
38
3,311 |
Liabilities
| (Amount: NT$ million) | 3Q08 | 2Q08 | 3Q07 |
Total Current Liabilities
Notes & Accounts Payable
Others
Long-term Liabilities
Total Liabilities
Liabilities to Equity | 1,550
629
921
1,569
28.5% | 2,642
623
2,019
2662
49.8% | 1,432
769
663
1,454
22.7% |
Analysis of Revenue
ASIC Revenue Breakdown by Region
| Region | 1Q08 | 2Q08 | 3Q08 |
| Taiwan | 44.7% | 52.4% | 47.4% |
| USA | 15.9% | 16.7% | 17.7% |
| Japan | 8.6% | 4.7% | 4.6% |
| Europe | 16.8% | 12.4% | 17.4% |
| Korea | 1.9% | 2.0% | 0.6% |
| China | 12.1% | 11.8% | 12.3% |
Total Revenue Breakdown by Customer Type
| Type | 1Q08 | 2Q08 | 3Q08 |
| Fabless | 47.0% | 45.7% | 48.0% |
| System | 40.7% | 46.7% | 45.4% |
| Foundry | 12.3% | 7.6% | 6.6% |
ASIC Revenue Breakdown by Geometry
| Geometry | 1Q08 | 2Q08 | 3Q08 |
| 90nm |
| 0.3% | 0.2% |
| 0.13um | 15.8% | 19.7% | 24.6% |
| 0.162um | 11.7% | 8.4% | 3.5% |
| 0.18um | 43.9% | 39.8% | 45.3% |
| 0.22um | 2.2% | 1.5% | 1.8% |
| 0.25um | 8.4% | 14.2% | 9.9% |
| 0.35um | 11.3% | 9.1% | 9.2% |
| 0.45um | 1.8% | 1.3% | 0.8% |
| 0.5um | 4.6% | 5.5% | 4.3% |
| 0.6um | 0.3% | 0.2% | 0.4% |
Total Revenue Breakdown by Billing Method
| Billing | 1Q08 | 2Q08 | 3Q08 |
| ASIC MP | 70.7% | 78.6% | 84.9% |
| Design Service | 8.2% | 6.8% | 4.0% |
| IP | 21.1% | 14.6% | 11.1% |
ASIC Revenue Breakdown by Application
| Application | 1Q08 | 2Q08 | 3Q08 |
| Peripheral /Storage | 27.6% | 25.9% | 16.0% |
| Comm. | 40.9% | 31.8% | 37.3% |
| Display | 2.4% | 4.1% | 5.2% |
| Consumer | 7.9% | 14.4% | 21.0% |
| Multimedia | 19.8% | 20.2% | 17.5% |
| Others | 1.4% | 3.6% | 3.0% |
About Faraday
Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company's broad IP portfolio includes 32-bit RISC CPUs, DSPs, PHY/Controllers for USB 2.0, Ethernet, and Serial ATA. With 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 market. 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
