SMIC Reports 2017 Fourth Quarter Results
Semiconductor Manufacturing International Corporation (SMIC) one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended December 31, 2017.
Fourth Quarter 2017 Highlights
- Revenue was $787.2 million in 4 Q1 7 , an increase of 2.3% QoQ from $769.7 million in 3 Q1 7 and a decrease of 3.4% YoY from $814.8 million in 4Q16 .
- Gross profit was $148.5 million in 4 Q1 7 , compared to $177.3 million in 3 Q1 7 and $246.0 million in 4Q16.
- Gross margin was 18.9% in 4Q17, compared to 23.0% in 3Q17 and 30.2% in 4Q16.
First Quarter 201 8 Guidance:
The following statements are forward looking statements based on current expectations and involved risks and uncertainties, some of which are set forth under “Safe Harbor Statements” below. The Company expects:
- Revenue to increase by 7% to 9% QoQ, including the forecast to recognize the technology licensing revenue estimated at $150 million.
- Gross margin to range from 25% to 27%.
- Non-GAAP operating expenses, excluding the effect of employee bonus accrual, government funding, gain or loss on the disposal of machinery and equipment and gain from the disposal of living quarters, to range from $212 million to $218 million.
- Non-controlling interests of our majority-owned subsidiaries to range from positive $15 million to positive $17 million (losses to be borne by non-controlling interests).
Dr. Zhao HaiJun and Dr. Liang Mong Song, SMIC’s co-Chief Executive Officers commented, “Looking back at 2017, we increased annual revenue 6.4% YoY, in line with the foundry industry growth rate. We also successfully ramped up our 28nm technology portfolio and have seen more than 10% revenue contribution in the fourth quarter of 2017. Meanwhile, we have continued to enrich our technology offerings to diversify our revenue streams; for example, our auto and industrial revenue doubled in 2017 compared to 2016.
SMIC is in transition to align to customers’ fast technology migration in today’s dynamic foundry environment, and we have great opportunities in front of us as the largest and most advanced foundry in China. At the same time, the overall industry dynamic has become more volatile with increased competition and pricing pressure. However, we are confident in our team’s capability to utilize this time to prepare, develop and recalibrate our technology, to create greater value for the future.”