UMC net income beats estimates
Quarterly revenues fall to NT$27.62 billion from last year's NT$28.15 billion
Taiwan-based wafer maker, United Microelectronics, reports its net income in the three months to June fell 6.3 percent year-on-year to Taiwan$2.99 billion ($99.3 million).
The profit posted beats estimates but UMC still forecasts slower growth amid global economic weakness.
UMC is the world's second biggest contract microchip maker by revenue, and currently holds around one-fifth of the revenue of rival TSMC. It faces lower profitability by being a year behind in technology development.
"We expect mild revenue growth for the upcoming quarter, with 40nm contributions increasing significantly as we begin volume production on several new products," says UMC chief executive, Shih-Wei Sun. "But we are cautious due to the potential for volatility in chip demand in the near future... [a result of] growing European sovereign debt issues, supply chain inventory and customers adopting a conservative stance."
Revenue increased 16.2%, quarter-on-quarter to NT$27.62 billion from NT$23.77 billion in the first quarter of this year but decreased 1.9% year-on-year from NT$28.15 billion in the second quarter of last year.
Gross profit came in at NT$6.74 billion, or 24.4% of revenue, compared to NT$4.55 billion or 19.1% of first quarter 2012 revenue. Net income in the second quarter, 2012, was NT$2.99 billion compared to NT$1.34 billion, for the first quarter, 2012.
