Faraday Reported 2011 Fourth Quarter Results

Fourth Quarter 2011 Highlights[1]:

Year-over-year revenue decreased 15.6% to NT$1,291 million (US$42.69million)
Gross margin, 43.8%
Net income of NT$68 million (US$2.24 million)
Earnings per share of NT$0.17 for the quarter

Hsinchu, Taiwan –February, 17 2012 – Faraday Technology Corporation (TWSE: 3035), a leading fabless ASIC service and silicon IP provider, today announced its unconsolidated operating results for the quarter ended December 31, 2011. The fourth quarter revenue was NT$1,291 million, while net income and basic earnings per share came to NT$68 million and NT$0.17, respectively.

The Y2011 revenue was NT$5.33 billions, margin at 43.8%, and EPS came to NT$0.3.

The yearly revenue of 2011 declined by 15.1%, mainly due to the weak market demand in ASIC business, including display, communication, and consumer sectors. However, contributed by the 31% growth in IP revenue, the well-sustained margins in each ASIC sectors, and the continuous improvement in cost structure, the overall margin increased by 1.5%, compared with last year. In profit wise, caused by the one-shot listing of investment loss and tax expense in Q2, and Q3, respectively, the yearly profit was down. However, this approach has led to a healthier and more solid finance foundation, which will greatly benefit the corporate profit in year 2012 and beyond.

Looking into year 2012, in addition to the attentive consumer sector, the business growth will be significant propelled by some other emerging market chances, which gradually harvest on account of substantial milestones set-up in year 2011, covering more focus technology/service synergy, more aggressive market expansion, advanced technology roadmap, and continuously close partnership with UMC in both matured and advanced process nodes.

Summary of Operating Results

(Amount: NT$ million)	4Q11	3Q11	QoQ% change	4Q10	QoQ% change
Revenue	1,291	1,371	(5.8)	1,529	(15.6)
Gross Profit	566	598	(5.4)	617	(8.3)
Operation Expenses	(455)	(323)	37.6	(428)	3.8
Operating Income	121	275	(55.9)	189	(35.8)
Non-op. Income (Expenses)	(43)	6	(829.7)	(12)	246.5
Net Income	68	(79)	(186.0)	112	(39.7)
EPS (NT$ per share)	0.17	(0.20)		0.31

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[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, 2011, the three-month period ending September 30, 2011, and the equivalent three-month period that ended December 31, 2010. For all 4Q11 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$30.24 to one U.S. dollar.

Faraday Reported 2011 Fourth Quarter Results

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