This excerpt taken from the UMC 6-K filed Feb 16, 2005.
UMC announced its unconsolidated operating results for the forth quarter of 2004
United Microelectronics Corporation (NYSE: UMC; TSE: 2303) (UMC or the Company) today announced its unconsolidated operating results for the forth quarter of 2004. Year-over-year revenue increased by 19.0 % to NT$28.23 billion from NT$23.72 billion, and a 18.4% QoQ decrease from NT$34.58 billion in 3Q04. The operating income is NT$2.84 billion, a 67.5% decrease compared with 3Q04. The gross profit is NT$6.49 billion, decrease 44.4% from NT$11.66 billion in 3Q04. The EPS for the forth quarter in 2004 was NT$0.07. In summary, the revenue in 2004 is NT$117.3 billion, which is the highest ever.
Wafer shipments in the forth quarter were 657 thousand 8-inch equivalent wafers (including UMCi), and utilization rate was 72%. The blended average selling price (ASP) remained the same during 4Q04. The percentage of revenue from 90nm in the forth quarter raised significantly to 8%. In 2004, the revenue was NT$117.3 billion; the operating income was NT$24.5 billion; the gross profit was NT$35.8 billion. The EPS was NT$1.89 in 2004.
Fiscal 2004 was a great year for UMC. Our foundry business had a strong 2004 and we posted a record for revenue. The combination of successful execution on capacity expansion, strong demand from each technology node, and an increase in the blended average selling price (ASP) drove UMCs revenue to NT$117.31 billion in 2004, a 38.2% year-over-year increase from 2003. Net income for the year increased 127.1% to NT$31.84 billion, said Dr. Jackson Hu, CEO at UMC.
Dr. Hu continued, At the beginning of the fourth quarter, we started to see weakening demand from our customers. Inventory adjustments by our customers resulted in an 18.4% decrease in revenue and our capacity utilization rate dropped to 72%. However, as we expected, demand from 90nm technology was still strong and sales increased substantially from 2% to 8% of total revenue in the fourth quarter. This leap in revenues from our most advanced process technology clearly demonstrates UMCs commitment to staying at the industry forefront of technological development. We expect this figure to increase to approximately 10% in the first quarter of 2005. Though we have moved into a more challenging market environment, we do not believe the inventory correction will last long and we anticipate a recovery in the 2nd half of 2005.
Our strategy of focusing on 90nm production at our 300mm fabs has proven to be a significant competitive edge and UMC will continue in this direction. Heading into 2005, we will continue to work on advanced technology development and capacity expansion. We will also leverage the 90nm production capacity that we successfully added in 2004 with our 90nm manufacturing knowledge to target more customers in each market segment and capture greater market share. We are confident that our leadership position in advanced process technology development and our strength in foundry services will lead us to continued growth in the coming years.