IMOS - Earnings call transcript Q2 2021 | ChipMOS TECHNOLOGIES INC.

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Operator

Greetings, and welcome to the ChipMOS Second Quarter 2021 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. I would now like to turn the conference over to Dr. G.S. Strategy of Relations the Technologies the to ChipMOS team management company of and team Investor introduce Shen in conference. Dr. begin. may you Shen,

G.S. Shen

Thank to conference everyone you, quarter operator. results XXXX ChipMOS' call. second Welcome

company Joining us President; Ms. Accounting Su, Silvia Mr. and Cheng, President Finance Center. Chairman and of are Vice Management today and S.J. the from

financial and and We are and call S.J. Vice color will of President the chair note, the Senior conference Silvia’s operating www.chipmos.com Investor will to an Mr. results, environment. open company's Relations. on have current highlights call. key in executives by review also ChipMOS' website Please today session. joined review the presentation the on of meeting S.J. and we Strategy provide business on company outlook. Spokesperson MOPS today’s Jesse All business Q&A participate and After Huang, accompany the posted our then will a provide the

the statements second to today’s prepared on you the comments, page advise is Before Safe Notice the which we as presentation. disclaimer, begin Harbor we forward-looking of our review noted

is call reminder, company's and company’s recorded time, ahead, go conference President, like this S.J. website. call turn on be being later our a As will At and a the now to Cheng. Please I'd over made available to today’s the replay today Mr. Chairman sir.

S. J. Cheng

XX% record Yes. compared Thank over you, in half revenue growth in quarterly call achieved XXXX. XXXX, G.S. joining QX have to We everyone of We delivered revenue appreciate the today. and now our XXXX first

increased both improved. grew strong market we profit platforms and Our ASP assembly continuing adding full are DDIC capacity remain utilization near Both level and given led utilization high and test high-end revenue and demand. level

increase year-over-year. And we new XXXX basis from first QX a compared Margin half is to is growth. QX for our with XX.X% our XXXX. me the X.XX XXXX, compared in This compared a increased of XXXX, Gross to very the I XXXX. EPS, revenue highlights revenue to that first X.XX, pleased XX half up X.XX, in increase TWD quarter: some we revenue than record achieved Let QX over higher X% XX.X% in with XXXX. achieved profitability growth XXXX QX TWD to you QX a increase First, am a XX.X% TWD XX% points the quarterly give QX

of in Our QX. XX% maintained operating utilization expense to X.X% The revenue. QX improved overall

Assembly maintained continuing testing with utilization capacity, XX% from in QX QX to at increased even with significantly level XXXX, tightness XX%. added XXXX, also

however, platforms the non-linear Lastly, supply fluctuations, remained and DDIC high-end DDIC level utilized wafer despite in fully test bump our led QX. utilization gold

capacity added also We here, quickly but used. became that

Regarding and QX our represented than DDIC, and XX% around of COG QX revenue. On DRAM XX.X% a XX% XX% manufacturing of QX represented wafer represented XX% more XX.X% COF gold was Revenue representing QX of bumping and revenue. SRAM basis, than about business, Testing with revenue, of including revenue. QX of product from segment represented more revenue. bumping our assembly around

segment and respectively. of Our grew year-over-year. around the meantime, and increased around XX% mixed-signal and Flash QX segment product around represented compared XX.X% XXXX segment QX of mixed-signal revenue In QX XX% to revenue the XX%

in grew to grew than Total Automotive and XX% XXXX Mask Consumer electronics was QX to QX In XXXX demand. end year-over-year. revenue. more was around and tight Memory XXXX, Flash higher XX.X% QX terms QX all DRAM in to year-over-year. QX markets compared to QX NOR across and XX.X% with products our business, color product Revenue about benefitted QX IoT, strong computing, X.X% in because from by revenue our represented up X% Consumer about increased up of about compared flat and XX% in ROM of adding total memory on and growth including of compared demand compared revenue XXXX, electronics, led XXXX QX gaming. capacity.

Our NAND our Flash represented of QX over XX% about Flash revenue. XXXX. XXXX This about business X%, XX% grew total QX but about declined

Moving about XX% onto QX about to XX% X% product Driver X.X% IC-related compared was Total COF, XXXX. increased QX revenue. was and COG compared XXXX QX XXXX. Driver over revenue increased revenue, IC-related significantly revenue, just about to to year-over-year and and including of compared QX this total XX.X% DDIC up increased about

represented We increase X.X% helped On to This about Automotive grew significantly to key and of end ratio about Industrial are OLED compared COF benefitting revenue. XX% customers. revenue. QX of XXXX and QX from basis, in XXXX represented about cooperation compared TDDI DDIC QX of market X% QX increased from in revenue QX QX. DDIC increased projects XX% and an revenue DDIC and with revenue. about the QX XX% to about of represented XX.X% revenue some

and revenue. to QX XX% market, accounted represented see XX% Auto consumer XX% continue about both in TV, growth end We and Smartphones QX Industrial. and XX% as long-term and XXXX of revenue, represented Computing an respectively. about of

turn Su, results. Now, to Ms. to financial please ahead. second XXXX the let quarter me review Silvia the go call Silvia,

Silvia Su

amounts based Financial Standards. rates Referencing our of presentation XX.XX against NT$ in S.J. dollars. the in operating The US$ X on the figures PageXX were consolidated Reporting you prepared NT accordance XX, summary. presentation with following of All results exchange Thank in are dollar XXXX. as cited All Taiwan-International June numbers are

QX from attributable in total to million per to XX.X% achieved XQXX increase ppts. quarter of was increase adding Referencing per in equity X.XX half second statements NT$ compared total basic XX.X% XXXX, X,XXX NT$ XQXX, NT$ XQXX. NT$ million. to first an NT$ X.XX compared million. net revenue X.X depreciation XQXX. the X,XXX gross first of basic This EBITDA calculated margin in comprehensive XX% XXXX share or a to presentation of X.X% gross of and earnings the represents to for XQXX the common Net second operating ADS. US$ for NT$ QX. X.XX X.XX together with X,XXX increased of at XX.X%. in We half XXXX profit. consolidated Compared for by profit the million, NT$ revenue Net quarter income. were was amortization of with the was PageXX profit of Company EBITDA earnings For was X,XXX was XXXX. was on QX Return

Our difference increase were Compared of NT$ attributable profit were to or accounted expense the XXX by of increase NT$ loss loss Inventory turnover XX,XXX Basic Total valuation profit operating ppts margin of shares NT$ is days. XQ on and compared about of non-operating XXXX. XQ which up The at XXX offset XXXX of Company XQ or for assets XX Referencing equity non-operating XX non-operating million NT$ XX.X%; to Consolidated expenses partially were Flows. XXXX. XQ at XX XXX revenue XX.X%; million, of compared decrease XX or up in to million NT$ financial of of XXXX XQ fair net Profit total NT$ NT$ XQ X% million compared million which XXXX of share Accounts end difference Total X.X through of The increase Key operating XX.X%; to the XQ total using the non-operating profit XX valuation end loss XQ ppts expenses compared in the at using on NT$XX,XXX for increase equity XX.X%, X.X% of increase and partially share of in margin shares. profit ppts for million XQ assets million. expenses expanded of XXXX. in the compared the the weighted increase in profit loss XX of improvement NT$ is the increase & million page through offset outstanding method were XXXX: presentation days of increase in of million. for liabilities XXXX. is is million the offset Net of accounted Operating was method fair end value XXXX XX Position were mainly XXXX. million. million. to net page foreign exchange were NT$ of financial an by assets income associates XXX.X% of Financial NT$ to expenses million. increased XQ net associates NT$ to Profit gross XQ receivable XXX operating a XX,XXX Indices. gain loss XXXX the mainly of exchange XX gain turnover with X.X difference XQ XXXX Total XXXX due Consolidated margin million to XQXX average the operating to of of XX XX XQ revenue XQ at X,XXX million. partially profit of days were foreign XQ at days and at Statements compared equity expenses is gross NT$ by the XXXX of increased about Cash XQ XXXX NT$ The loss was increased presentation the to to the were of was income the XX value mainly of Statements NT$ due of XX million due to to XX.X% XQ Referencing of X.X in of XXXX. in XX.X%; tax was XXXX.

XX.X% for XXX NT$ increase to million million flow of depreciation, XXXX expenses balance testing. and page NT$ compared the X,XXX X,XXX million then As amortization, by million. sum. QX. is breakdown calculated Expenditures and million Referencing same Capital NT$ beginning was XX.X% of for dividend for mainly cash half assembly first X,XXX in tax increase cash of in of compared to bumping the and CapEx, NT$ to million profit and X,XXX increased million income due and interest of subtracting depreciation were period of June our expenses from X,XXX flow QX. NT$ expense, and the was cash NT$ XXX XXX together for X,XXX NT$ million driver, was LCD difference the Free presentation The of XX, income expenses cash of NT$ and NT$ income invested operating by was X,XXX XXXX. NT$ offset tax partially interest in CapEx CapEx Free profit Depreciation. XX.X% of expense of for XXXX, million CapEx for the Depreciation in with operating million, equivalents and The XX.X% QX. We the XX adding of

ADS I approximately represents which call number Company's the XX, our will XXXX, XX.X% common outstanding outlook. was As Chairman Please the outstanding for financial X now July ahead, Cheng Company's That around concludes units, million of back sir. shares. go S.J. to the the turn our Mr. of review.

S. J. Cheng

you, Silvia. Thank

end our increasing, is ASP Profit with main to in expected recover continue level. trends markets all also stable the expected a to continue is product utilization OSAT as segments. to with Our positive improve, high

tightened a through closely customers supply. cooperating with wafer levels, utilization are as work watching We and we

QX, bottleneck. We in expect In even we demand half test from capacity are memory, meet capacity with and electronics. further in to achieve increasing with growth and the the and demand customers, above consumer increased expectations to assembly second auto increasing

We customers are benefiting DRAM restocking aided demand by from healthy inventory. in

gradually We momentum will QX increases expect momentum our continue to memory and bolstered, in expected NOR Overall, with including better as grow the DDIC, growth demand businesses than is to NAND flash be QX. XXXX. through

Tightened by DDIC, which supply fluctuations. demand. For strong level in we QX, continue expected DDIC led is causes to expect continued utilization growth wafer

mixed-signal, customers growth continued XXXX, Regarding expect see as in restocking. to we QX major

dividend July the end at to XXXX distributed of approved August. our It TWDX.X at share is per be Finally, of was common scheduled our AGM.

our now cautiously Question-and-Answer concludes take on our based expect and XXXX that dividend Session trends remarks, Operator be business we formal higher XXXX We questions. can positive XXXX, optimistic our will outlook. than

Operator

Thank be will this conducting session. question-and-answer we you. time, At a

from comes question Suisse. from Jerry first Our Su Credit

begin. may You

Jerry Su

for increasing gross performance the contribution Congratulations the from hikes results. comment ppts utilization Please rate price around good QX improvement separately? and and margin on for rate X.X the

S. J. Cheng

increased margin to XXXX. compared XX QX for Gross QX points XX.X%, Thanks. to XXXX basis

demand. are adding strong given market capacity We continuing

near Our lines X%. increased remain to full from levels. utilization was level ASP both, and high The X% all average profit assembly improvement. and DDIC And high-end utilization about product test revenue and growth both led platforms increase price

Jerry Su

both increase. Does on memory will Based assembly test mean and including ASP and memory than it outlook, and will better DDIC? QX grow DDIC your

S. J. Cheng

lead tight by caused Due machine material, raw to time and longer capacity.

memory We reflected have contract price starting assembly July. from

product platform despite wafer high the high-end Therefore, also such HD, requires DDIC, customers. to OLED TDDI, customers our reflect and high-end price for are As supply, TV of test as, which allocating tight support. we frequency some full more also for their wafers

Jerry Su

foundry wafer tight see of supply, Speaking capacity sign DDIC does Chairman any wafer loosened supply? of

S. J. Cheng

Currently, no appears. sign such

and bargaining owning easier their those For it is foundry power, quantity support get demand. customers better to technical stronger to wafer capability wafer meet

Jerry Su

next contracts year? performance? circumstance, market a do in business Under any possibility or or long-term QX of take-or-pay Based would how business on you influence And Chairman's be considered? see memory Company's price the would outlook, that QX downturn it

S. J. Cheng

June. are grew optimistic July of compared We half for Basically, to published that second year. X.X%, revenue our this we

two like memory segments. the the could is Our other NAND. memory density Even niche fluctuate. and from commodity niche. DRAM, memory the more more demand One from low see is like growing We business comes commodity one stable and NOR and

customers also to technology shrinking chip are quantity. Our their increase wafer the

expanding to capacity we are So, customers’ meet demand.

Jerry Su

Chairman. thanks Okay,

Operator

I would questions like the Thank any not back I further GS. am showing you. the over to And to in turn queue. call

G.S. Shen

Thank orally asking institutional performance give foreign now about Unimos company you, from of an an Could The Unimos? basis? read on Is ongoing is update I the profitable will some questions Unimos. question investors. recent on

Jesse Huang

XX.XMNTD led QX profit QX, profitable since was and recognized XXXX by improvements. operational demand about XXXX. in higher Unimos ChipMOS

the flash its continuing from of YMTC. We with expect growth business further to improvements NAND Unimos XD have

G.S. Shen

our back to the I’ll S.J. for session. concludes closing for That you Cheng comments. floor Thank turn Mr. any question-and-answer participating.

S. J. Cheng

our call. have more you everyone if Please questions. email any IR Thank for support. joining conference Goodbye. Team appreciate our your you We

Operator

call. and participating. Ladies this conference Thank concludes gentlemen, for you today’s

may now You disconnect.

ChipMOS (IMOS) 10 Aug 212021 Q2 Earnings call transcript