All currency figures stated in this report are in US Dollars unless stated otherwise.
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ("SMIC" or the "Company"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended December 31, 2014.
Fourth Quarter 2014 Highlights
Revenue was $485.9 million in 4Q14, compared to $521.6 million in 3Q14 and $491.8 million in 4Q13.
Gross profit was $109.3 million in 4Q14, compared to $134.9 million in 3Q14 and $92.9 million in 4Q13.
Gross margin was 22.5% in 4Q14, compared to 25.9% in 3Q14 and 18.9% in 4Q13.
Profit for the period attributable to SMIC was $28.4 million in 4Q14, compared to $47.5 million in 3Q14 and $14.7 million in 4Q13.
China-region revenue grew to 45.6% of overall revenue as the largest contributor by region to revenue in 4Q14.
First Quarter 2015 Guidance:
The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below.
Revenue is expected to increase by 2% to 5% quarter over quarter.
Gross margin is expected to range from 27% to 29%.
Non-GAAP operating expenses excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters are expected to range from $123 million to $128 million.
Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director, commented, "As a management team, our first target had been to bring SMIC into sustainable profitability, and we have accomplished that. In Q4 2014, we achieved our eleventh consecutive profitable quarter and maintained a healthy utilization of 93%. We continue to aim for sustained profit as we enter our next stage of growth. 2014 was marked with achievements in development of technology and operations in preparation for growth in 2015 and beyond. We made progress in 28nm development, differentiated technology development, the development of new fab operations, and various new partnerships to expand business and opportunities in China and internationally.
2014 was also marked by the formation of several new partnerships, which display SMIC's leading role in the strengthening China semiconductor ecosystem.
Revenue from China has continued to be over 40% of our total revenue in the past 6 quarters and accounts for more than 45% of our total revenue in Q4 2014. As the largest and most advanced foundry in China, we are looking forward to benefiting from an overall growing IC ecosystem in China.
With a better than expected guidance for Q1 and encouraging feedback on 28nm, we continue to be optimistic about the future as we ramp up new 8-inch capacity in Shenzhen and 28nm capacity in both Shanghai and Beijing. We continue to have confidence in the China market, mobile products, smart consumer products, coming IoT("Internet of Things"), and our strategy to capture growth opportunities in China. We stay committed to sustainable profitability and building value for all stakeholders."
