SMIC - Semiconductor Manufacturing International Corporation

02/14/2019 | Press release | Distributed by Public on 02/14/2019 05:05

SMIC Reports 2018 Fourth Quarter Results

SMIC REPORTS UNAUDITED RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2018.

  • Revenue was $787.6 million in 4Q18, compared to $850.7 million in 3Q18 and $787.2 million in 4Q17.
  • Gross profit was $134.1 million in 4Q18, compared to $174.5 million in 3Q18 and $148.5 million in 4Q17.
  • Gross margin was 17.0% in 4Q18, compared to 20.5% in 3Q18 and 18.9% in 4Q17.

Set out below is a copy of the full text of the press release by the Company and its subsidiaries (the 'Group') on February 14, 2019, in relation to its unaudited results for the three months ended December 31, 2018.

All currency figures stated in this report are in US Dollars unless stated otherwise.

The consolidated financial information is prepared in accordance with International Financial Reporting Standards ('IFRS') and is presented in accordance with IFRS unless otherwise stated below.

Shanghai, China - February 14, 2019. Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ('SMIC', the 'Company' or 'our'), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended December 31, 2018.

First Quarter 2019 Guidance:

The following statements are forward looking statements based on current expectations and involved risks and uncertainties, some of which are set forth under 'Safe Harbor Statements' below. The Company expects:

  • Revenue to decrease by 16% to 18% QoQ.
  • Gross margin to range from 20% to 22%.
  • Non-GAAP operating expenses, excluding the effect of employee bonus accrual, government funding, impairment loss of tangible and intangible assets, gain or loss on the disposal of machinery and equipment and gain from the disposal of living quarters, to range from $250 million to $255 million.
  • Non-controlling interests of our majority-owned subsidiaries to range from positive $10 million to positive $12 million (losses to be borne by non-controlling interests).

Dr. Zhao Haijun and Dr. Liang Mong Song, SMIC's Co-Chief Executive Officers commented, 'With the support of our customers and colleagues, 2018 annual revenue grew 8.3%, which was the fourth consecutive year of growth, and represents a record high. Q4 2018 revenue was flat year over year; meanwhile, China revenue grew 12% YoY. Looking into 2019, our full year core business revenue growth target is in line with the foundry industry growth rate; however, based on current visibility, Q1 revenue is guided to fall 16%~18% QoQ, estimated as the trough of this year.'

Dr. Zhao said, 'The 2019 macro environment has a lot of uncertainties, and we are actively seeking growth opportunities through steady progress in expanding our customer base, enriching mature and specialty technology product mix and applications, and exploring value added opportunities.'

Dr. Liang said, 'We are working hard to establish advanced technology total solutions, with particular focus on the fundamentals of FinFET technology, platform development, and customer engagement. At present, SMIC's first generation of 14nm FinFET technology has already entered customer product verification; product reliability and yields have readily improved. Meanwhile, 12nm process development achieved breakthrough. Through our research and development's continuous innovation, optimized production, strengthening design, and pursuit of potential markets, we are confident in our future opportunities.'

Conference Call / Webcast Announcement

Date: February 15, 2019
Time: 8:30 a.m. Beijing time
Dial-in numbers:

China +86 400-620-8038
Hong Kong +852 3018-6771
Taiwan +886 2-5572-3895
United States +1 845-675-0437

The call will be webcast live with audio at:
http://www.smics.com/en/site/company_activity or https://edge.media-server.com/m6/p/pg6k2hsu.

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.