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
(Amount: NT$ million)
4Q07
3Q07
4Q06
Cash & Cash Equiv.
1,660
1,530
1,535
Notes & Accounts Receivable
1,035
1,241
1,113
Days Sales Outstanding
75
71
84
Inventory
399
263
208
Avg. Inventory Turnover
53
38
39
Total Current Assets
3,494
3,311
3,180
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
