United Microelectronics Corporation (UMC) generated $1.75 billion in revenue in Q2, exceeding market expectations. Its net income was $0.425 billion, and diluted EPS was $0.17, which exceeded market expectations of $0.14.
As of pre-market trading on July 31st, according to the financial report released by United Microelectronics Corporation (UMC.US), its Q2 revenue exceeded market expectations at $1.75 billion, and its net income of $0.425 billion translated to a diluted EPS of $0.17, beating the market expectation of $0.14. This figure is an increase from the $0.196 EPS during the same period last year.
UMC's Q2 revenue was NT$56.8 billion, an increase of 0.9% year-on-year. Gross margins for the quarter were 35.2%, and net income attributable to shareholders of the parent company was NT$13.79 billion, with earnings per share of NT$1.11.
Lianhua Electronics stated that due to strong consumer demand in the second quarter, wafer shipments increased by 2.6% and wafer plant utilization rose to 68%. The 22/28nm business contribution increased sequentially due to strong demand for WiFi and digital cable applications. In addition, favorable exchange rates and product portfolio improvements resulted in gross margin exceeding expectations.
Inventory turnover days increased by three days to 88 days.
As of the end of Q2, UMC's cash and cash equivalents increased to NT$121.23 billion.
Performance guidance
UMC anticipates wafer shipments to increase by mid-single digits in Q3, with a gross margin of around 30% and a utilization rate of roughly 70%.