ChipMOS (IMOS) 6-K Current report (foreign)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE13a-16 OR15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August, 2019

Commission File Number001-37928

ChipMOS TECHNOLOGIES INC.

(Translation of Registrant’s Name Into English)

No. 1, R&D Rd. 1, Hsinchu Science Park

Hsinchu, Taiwan

Republic of China

(Address of Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form20-F or Form40-F.)

Form20-F  ☒            Form40-F  ☐

Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(7):  ☐

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 6, 2019	ChipMOS TECHNOLOGIES INC.
	(Registrant)
	By:	/S/ S. J. Cheng
	Name:	S. J. Cheng
	Title:	Chairman & President

2

Contacts:   In Taiwan Jesse Huang ChipMOS TECHNOLOGIES INC. +886-6-5052388 ext. 7715 jesse_huang@chipmos.com   In the U.S. David Pasquale Global IR Partners +1-914-337-8801 dpasquale@globalirpartners.com

ChipMOS REPORTS SECOND QUARTER 2019 RESULTS

Q2’19 Highlights (as compared to Q1’19):

• Revenue Grows 9.9% to US$158.2 Million Compared to US$143.9 Million

• Gross Profit Improves to US$27.0 Million Compared to US$21.6 Million

• Gross Margin Increases to 17.1% Compared to 15.0%

• Net Earnings of NT$1.75 or US$0.06 per Basic Common Share or US$1.13 per Basic ADS

• Reduction of US$30.1 Million in Net Debt Balance to US$160.1 Million, while Retained Balance of Cash and Cash Equivalents at US$171.8 Million

• Cash Dividend of NT$1.20 Per Common Share or Approximately US$0.77 Per ADS Approved by Shareholders

Hsinchu, Taiwan – 8/6/2019 - ChipMOS TECHNOLOGIES INC. (“ChipMOS” or the “Company”) (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), an industry leading provider of outsourced semiconductor assembly and test services (“OSAT”), today reported unaudited consolidated financial results for the second quarter ended June 30, 2019. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$31.01 against US$1.00 as of June 28, 2019.

All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards (“Taiwan-IFRS”).

Revenue for the second quarter of 2019 was NT$4,905.3 million or US$158.2 million, an increase of 9.9% from NT$4,462.0 million or US$143.9 million in the first quarter of 2019 and an increase of 9.2% from NT$4,491.6 million or US$144.8 million for the same period in 2018.

Net profit attributable to equity holders of the Company for the second quarter of 2019 was NT$1,274.6 million or US$41.1 million, and NT$1.75 or US$0.06 per basic common share, as compared to net profit attributable to equity holders of the Company for the first quarter of 2019 of NT$193.7 million or US$6.3 million, and NT$0.27 or US$0.01 per basic common share, and compared to net profit attributable to equity holders of the Company in the second quarter of 2018 of NT$124.1 million or US$4.0 million, and NT$0.15 or US$0.005 per basic common share. Net earnings for the second quarter of 2019 were US$1.13 per basic ADS, compared to US$0.17 per basic ADS for the first quarter of 2019 and US$0.09 per basic ADS in the second quarter of 2018.

S.J. Cheng, Chairman and President of ChipMOS, said, “We achieved 9.9% revenue growth in Q2 compared to Q1, improved our gross margin to 17.1% and delivered a significant improvement in net profit to NT$1.75 or US$0.06 per basic common share or US$1.13 per basic ADS, which includes the benefit of the JMC share disposal we previously noted. We continue to execute and are benefitting from the strategic diversification in our customer base and end markets, which is driving healthy utilization levels. Growth in our flash business from new module house customers is helped drive 14.4% revenue growth from Flash products in Q2 compared to Q1, and improved our assembly utilization rate to 75%. Customer demand remains strong in our TDDI and 12” fine pitch COF businesses. As a result, revenue from TDDI products grew 24% in Q2 compared to Q1, and represented about 32% of DDIC revenue in Q2. Growth is expected to continue led by higher demand for newbezel-less smartphone panels, with increasing TDDI product penetration of the HD panel segment from FHD panels. We remain focused on expanding utilization across all segments, while further improving gross margin, overall profitability, and our cash generation. These sustainable improvements will help build further value for the Company and shareholders.”

-1-

Silvia Su, Vice President of Finance and Accounting, commented, “We continue to manage our business to profitability, with the right resource level and operating structure to fully support our customers and new growth opportunities. We completed the sale of 9.1 million common shares of JMC in the beginning of April and recognized a disposal gain of approximately US$31.7 million, after the deduction of related tax and expense. That was used to further strengthen our Company’s financial structure, while increasing our balance of working capital and decreasing the debt ratio. We ended the second quarter with a balance of cash and cash equivalents of US$171.8 million, after reducing our net debt by about US$30.1 million to US$160.1 million with a net debt to equity ratio of 26.6%. In addition, we invested US$23.1 million in CapEx in the second quarter, the majority of which was invested in expanding our LCD driver capacity to meet customer demand levels, mainly for DDIC test and 12” fine pitch COF. Our latest cash dividend, NT$1.20 per common share or US$0.77 per ADS, was approved by shareholders at our AGM this past June, with distributions expected to be on August 30^th to common stock holders and followed shortly after by the distribution to ADS holders.”

Selected Operation Data

	Q2’19			Q1’19
Revenue by segment
Testing		20.1	%		22.2	%
Assembly		24.7	%		23.1	%
LCD Driver		36.0	%		35.1	%
Bumping		19.2	%		19.6	%
CapEx	US$	23.1 million		US$	20.3 million
Testing		25.2	%		25.0	%
Assembly		8.5	%		7.3	%
LCD Driver		56.4	%		59.3	%
Bumping		9.9	%		8.4	%
Depreciation and amortization expenses	US$	29.7 million		US$	29.0 million
Utilization by segment
Testing		69	%		64	%
Assembly		75	%		58	%
LCD Driver		81	%		76	%
Bumping		70	%		79	%
Overall		75	%		70	%

Condensed consolidated statements of cash flows
	Period ended Jun. 30, 2019			Period ended Jun. 30, 2018
	US$ million			US$ million
Net cash generated from (used in) operating activities		78.7			47.8
Net cash generated from (used in) investing activities		(43.6	)		(101.9	)
Net cash generated from (used in) financing activities		(13.1	)		(73.5	)
Net increase (decrease) in cash and cash equivalents		22.0			(127.6	)
Effect of exchange rate changes on cash		0.1			0.2
Cash and cash equivalents at beginning of period		149.7			259.1
Cash and cash equivalents at end of period		171.8			131.7

-2-

Investor Conference Call / Webcast Details

ChipMOS will host two conference calls on Tuesday, August 6, 2019 to discuss the Company’s financial results for the second quarter of 2019.

1.	Date: Tuesday, August 6, 2019
	Time: 4:00PM Taiwan (4:00AM New York)
	Dial-In:+886-2-21928016
	Password: 661807#
	Replay Starting 2 Hours After Live Call Ends: www.chipmos.com
	Language: Mandarin
2.	Date: Tuesday, August 6, 2019
	Time: 8:00PM Taiwan (8:00AM New York)
	Dial-In:+1-323-701-0225
	Password: 8155889
	Replay Starting 2 Hours After Live Call Ends:+1-412-317-6671, with ID 8155889
	Webcast of Live Call and Replay: www.chipmos.com
	Language: English

About ChipMOS TECHNOLOGIES INC.:

ChipMOS TECHNOLOGIES INC. (“ChipMOS” or the “Company”) (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS) (https://www.chipmos.com) is an industry leading provider of outsourced semiconductor assembly and test services. With advanced facilities in Hsinchu Science Park, Hsinchu Industrial Park and Southern Taiwan Science Park in Taiwan, ChipMOS provide assembly and test services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.

Forward-Looking Statements

This press release may contain certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes,’ ‘expects,’ ‘anticipates,’ ‘projects,’ ‘intends,’ ‘should,’ ‘seeks,’ ‘estimates,’ ‘future’ or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. These statements may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors. Further information regarding these risks, uncertainties and other factors are included in the Company’s most recent Annual Report on Form20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) and in the Company’s other filings with the SEC.

AboutNon-Generally Accepted Accounting Principles(“Non-GAAP”) Financial Measures

To supplement the consolidated financial results presented in accordance with the Taiwan-IFRS, ChipMOS usesnon-GAAP free cash flow,non-GAAP earnings before interest, taxes, depreciation and amortization (“EBITDA”) andnon-GAAP net debt to equity ratio in this press release. Thenon-GAAP free cash flow represents operating profit plus depreciation, amortization and interest income and less capital expenditures, interest expense, income tax expense and dividend. Thenon-GAAP EBITDA represents operating profit plus depreciation and amortization. Thenon-GAAP net debt to equity ratio represents the ratio of net debt, the sum of debt less cash and cash equivalent, divided by equity attributable to equity holders of the Company. Thesenon-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently.

The presentation ofnon-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the Taiwan-IFRS.

ChipMOS considers the use ofnon-GAAP free cash flow,non-GAAP EBITDA andnon-GAAP net debt to equity ratio provides useful information to management to manage the Company’s business and make financial and operational decisions and also to the investors to understand and evaluate the Company’s business and operating performance. For more information on thesenon-GAAP financial measures, please refer to the table captioned “Reconciliations ofNon-GAAP Measures to the Nearest Comparable GAAP Measures” in this press release.

- FINANCIAL TABLES FOLLOW BELOW -

-3-

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended Jun. 30, Mar. 31, 2019, and Jun. 30, 2018

Figures in Millions of U.S. dollars (USD) ⁽¹⁾

Except for Per Share Amounts and Weighted Average Shares Outstanding

	Three months ended
	Jun. 30, 2019			Mar. 31, 2019			Jun. 30, 2018
	USD			USD			USD
Revenue		158.2			143.9			144.8
Cost of revenue		(131.2	)		(122.3	)		(121.1	)
Gross profit		27.0			21.6			23.7
Research and development expenses		(8.5	)		(7.6	)		(8.0	)
Sales and marketing expenses		(0.4	)		(0.4	)		(0.4	)
General and administrative expenses		(4.5	)		(3.6	)		(3.9	)
Other operating income (expenses), net		1.0			0.3			2.0
Operating profit		14.6			10.3			13.4
Non-operating income (expenses), net		29.6			(2.1	)		2.0
Profit (loss) before tax		44.2			8.2			15.4
Income tax benefit (expense)		(3.1	)		(1.9	)		(11.4	)
Profit (loss) for the period		41.1			6.3			4.0
Other comprehensive income (loss)
Exchange differences on translation of foreign operations		(1.1	)		2.2			(0.8	)
Unrealized gain (loss) on valuation of equity instruments at fair value through other comprehensive income		0.6			(1.0	)		0.4
Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method		(0.0	)		0.0			(0.0	)
Income tax effect		(0.1	)		0.2			(0.1	)
Total other comprehensive income (loss)		(0.6	)		1.4			(0.5	)
Total comprehensive income (loss)		40.5			7.7			3.5
Profit (loss) attributable to the Company - basic		41.1			6.3			4.0
Earnings (loss) per share attributable to the Company - basic		0.06			0.01			0.005
Earnings (loss) per ADS equivalent - basic		1.13			0.17			0.09
Weighted average shares outstanding (in thousands) - basic		727,032			726,925			849,672
Profit (loss) attributable to the Company - diluted		41.1			6.3			4.0
Earnings (loss) per share attributable to the Company - diluted		0.06			0.01			0.005
Earnings (loss) per ADS equivalent - diluted		1.12			0.17			0.09
Weighted average shares outstanding (in thousands) - diluted		733,661			728,302			857,028

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$31.01 against US$1.00 as of Jun. 28, 2019. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

-4-

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended Jun. 30, Mar. 31, 2019, and Jun. 30, 2018

Figures in Millions of NT dollars (NTD)

Except for Per Share Amounts and Weighted Average Shares Outstanding

	Three months ended
	Jun. 30, 2019			Mar. 31, 2019			Jun. 30, 2018
	NTD			NTD			NTD
Revenue		4,905.3			4,462.0			4,491.6
Cost of revenue		(4,067.0	)		(3,793.7	)		(3,756.4	)
Gross profit		838.3			668.3			735.2
Research and development expenses		(263.7	)		(236.7	)		(249.5	)
Sales and marketing expenses		(14.3	)		(11.6	)		(13.9	)
General and administrative expenses		(138.6	)		(112.2	)		(120.9	)
Other operating income (expenses), net		30.8			10.4			63.2
Operating profit		452.5			318.2			414.1
Non-operating income (expenses), net		917.0			(64.3	)		62.9
Profit (loss) before tax		1,369.5			253.9			477.0
Income tax benefit (expense)		(94.9	)		(60.2	)		(352.9	)
Profit (loss) for the period		1,274.6			193.7			124.1
Other comprehensive income (loss)
Exchange differences on translation of foreign operations		(33.8	)		68.1			(25.3	)
Unrealized gain (loss) on valuation of equity instruments at fair value through other comprehensive income		17.4			(31.5	)		14.1
Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method		(0.2	)		1.9			(0.8	)
Income tax effect		(3.5	)		6.3			(2.8	)
Total other comprehensive income (loss)		(20.1	)		44.8			(14.8	)
Total comprehensive income (loss)		1,254.5			238.5			109.3
Profit (loss) attributable to the Company - basic		1,274.6			193.7			124.1
Earnings (loss) per share attributable to the Company - basic		1.75			0.27			0.15
Earnings (loss) per ADS equivalent - basic		35.06			5.33			2.92
Weighted average shares outstanding (in thousands) - basic		727,032			726,925			849,672
Profit (loss) attributable to the Company diluted		1,274.6			193.7			124.1
Earnings (loss) per share attributable to the Company - diluted		1.74			0.27			0.14
Earnings (loss) per ADS equivalent - diluted		34.75			5.32			2.90
Weighted average shares outstanding (in thousands) - diluted		733,661			728,302			857,028

-5-

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of Jun. 30, Mar. 31, 2019, and Jun. 30, 2018

Figures in Millions of U.S. dollars (USD) ⁽¹⁾

	Jun. 30, 2019			Mar. 31, 2019			Jun. 30, 2018
	USD			USD			USD
ASSETS
Current assets
Cash and cash equivalents		171.8			163.5			131.7
Current financial assets at amortized cost		5.6			5.5			0.5
Accounts and notes receivable, net		146.8			132.2			140.0
Inventories		55.3			53.8			58.1
Other current assets		20.1			19.7			16.7
Total current assets		399.6			374.7			347.0
Non-current assets
Financial assets at fair value through profit or loss		0.4			0.4			0.4
Financial assets at fair value through other comprehensive income		5.2			4.6			3.7
Non-current financial assets at amortized cost		3.2			3.2			2.0
Investments accounted for using equity method		114.7			125.3			132.7
Property, plant & equipment		526.6			532.9			510.9
Right-of-use assets		28.7			28.6			—
Othernon-current assets		12.2			11.4			9.3
Totalnon-current assets		691.0			706.4			659.0
Total assets		1,090.6			1,081.1			1,006.0
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities
Short-term bank loans		—			9.7			—
Accounts payable and payables to contractors and equipment suppliers		38.4			40.5			43.2
Current lease liabilities		1.3			1.3			—
Long-term bank loans, current portion		24.1			24.1			24.1
Long-term lease obligations payable, current portion		—			—			0.4
Other current liabilities		91.4			70.3			72.4
Total current liabilities		155.2			145.9			140.1
Non-current liabilities
Long-term bank loans		279.5			291.7			245.6
Non-current lease liabilities		27.0			26.9			—
Long-term lease obligations payable		—			—			0.4
Othernon-current liabilities		26.4			26.1			24.4
Totalnon-current liabilities		332.9			344.7			270.4
Total liabilities		488.1			490.6			410.5
EQUITY
Capital stock – common stock		238.7			242.8			285.7
Capital surplus		198.8			202.5			202.6
Retained earnings		175.9			170.9			135.3
Other equity interest		4.7			5.3			4.4
Treasury stock		(15.6	)		(31.0	)		(32.5	)
Equity attributable to equity holders of the Company		602.5			590.5			595.5
Total equity		602.5			590.5			595.5
Total liabilities and equity		1,090.6			1,081.1			1,006.0

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$31.01 against US$1.00 as of Jun. 28, 2019. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

-6-

ChipMOS TECHNOLOGIES INC.

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of Jun. 30, Mar. 31, 2019, and Jun. 30, 2018

Figures in Millions of NT dollars (NTD)

	Jun. 30, 2019			Mar. 31, 2019			Jun. 30, 2018
	NTD			NTD			NTD
ASSETS
Current assets
Cash and cash equivalents		5,326.4			5,069.0			4,082.6
Current financial assets at amortized cost		173.2			171.2			15.9
Accounts and notes receivable, net		4,552.3			4,099.9			4,341.9
Inventories		1,716.6			1,667.0			1,800.3
Other current assets		623.8			612.3			518.4
Total current assets		12,392.3			11,619.4			10,759.1
Non-current assets
Financial assets at fair value through profit or loss		11.6			11.7			11.8
Financial assets at fair value through other comprehensive income		160.2			142.8			114.7
Non-current financial assets at amortized cost		99.9			99.2			62.4
Investments accounted for using equity method		3,557.1			3,884.5			4,114.0
Property, plant & equipment		16,329.2			16,524.7			15,844.2
Right-of-use assets		890.5			888.9			—
Othernon-current assets		377.3			352.5			289.2
Totalnon-current assets		21,425.8			21,904.3			20,436.3
Total assets		33,818.1			33,523.7			31,195.4
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities
Short-term bank loans		—			300.0			—
Accounts payable and payables to contractors and equipment suppliers		1,189.3			1,256.2			1,341.8
Current lease liabilities		39.7			40.2			—
Long-term bank loans, current portion		748.2			748.1			747.3
Long-term lease obligations payable, current portion		—			—			11.6
Other current liabilities		2,833.4			2,180.8			2,244.9
Total current liabilities		4,810.6			4,525.3			4,345.6
Non-current liabilities
Long-term bank loans		8,668.0			9,044.3			7,616.7
Non-current lease liabilities		836.9			835.0			—
Long-term lease obligations payable		—			—			12.0
Othernon-current liabilities		818.8			808.8			755.1
Totalnon-current liabilities		10,323.7			10,688.1			8,383.8
Total liabilities		15,134.3			15,213.4			12,729.4
EQUITY
Capital stock – common stock		7,400.9			7,528.3			8,859.8
Capital surplus		6,165.9			6,280.7			6,281.2
Retained earnings		5,453.4			5,298.3			4,196.4
Other equity interest		146.2			165.5			136.2
Treasury stock		(482.6	)		(962.5	)		(1,007.6	)
Equity attributable to equity holders of the Company		18,683.8			18,310.3			18,466.0
Total equity		18,683.8			18,310.3			18,466.0
Total liabilities and equity		33,818.1			33,523.7			31,195.4

-7-

RECONCILIATIONS OFNON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES

(Figures in Millions of U.S. dollars (USD))

The table below sets forth a reconciliation of our operating profit tonon-GAAP free cash flow for the periods indicated:

	Three months ended
	Jun. 30, 2019			Mar. 31, 2019			Jun. 30, 2018
	USD			USD			USD
Operating profit		14.6			10.3			13.4
Add: Depreciation		29.7			29.0			27.2
Interest income		0.6			0.5			0.4
Less: Capital expenditures		(23.1	)		(20.3	)		(31.5	)
Interest expense		(1.4	)		(1.4	)		(1.2	)
Income tax expense		(3.1	)		(1.9	)		(11.4	)
Non-GAAP free cash flow		17.3			16.2			(3.1	)

The table below sets forth a reconciliation of our operating profit tonon-GAAP EBITDA for the periods indicated:

	Three months ended
	Jun. 30, 2019		Mar. 31, 2019		Jun. 30, 2018
	USD		USD		USD
Operating profit		14.6		10.3		13.4
Add: Depreciation		29.7		29.0		27.2
Non-GAAP EBITDA		44.3		39.3		40.6

The table below sets forth a calculation of ournon-GAAP net debt to equity ratio for the periods indicated:

	Jun. 30, 2019			Mar. 31, 2019			Jun. 30, 2018
	USD			USD			USD
Short-term bank loans		—			9.7			—
Long-term bank loans (including current portion)		303.6			315.8			269.7
Long-term lease obligations payable (including current portion)		—			—			0.8
Lease liabilities (including current portion)		28.3			28.2			—
Less: Cash and cash equivalents		(171.8	)		(163.5	)		(131.7	)
Net debt		160.1			190.2			138.8
Equity attributable to equity holders of the Company		602.5			590.5			595.5
Net debt to equity ratio		26.6	%		32.2	%		23.3	%

-8-