Semiconductor Manufacturing (SMI) Reports Q3 Slight Miss on Revenues

Semiconductor Manufacturing (NYSE: SMI) reported Q3 revenue for the quarter at $850.7 million versus the consensus estimate of $850.78 million.

Third Quarter 2018 Highlights

• Revenue was $850.7 million in 3Q18, compared to $890.7 million ($837.9 million, excluding technology licensing revenue) in 2Q18 and $769.7 million in 3Q17.
• Gross profit was $174.5 million in 3Q18, compared to $217.8 million ($165.0 million, excluding technology licensing revenue) in 2Q18 and $177.3 million in 3Q17.
• Gross margin was 20.5% in 3Q18, compared to 24.5% (19.7%, excluding technology licensing revenue) in 2Q18 and 23.0% in 3Q17.

Dr. Zhao Haijun and Dr. Liang Mong Song, SMIC's Co-Chief Executive Officers commented, "With the support of our customers and the efforts of our colleagues, our third quarter performance was in line with guidance. When excluding revenue from technology licensing, revenue from our China region continued to grow 40% year over year, and 5% quarter over quarter. Wireless communications, power management and fingerprint IC applications were the major growth drivers. Looking at the full year, our annual revenue target remains unchanged.

Looking at the fourth quarter, although the industry has entered a period of seasonal adjustment, we continue to carry out customer engagement and verification on our advanced technology platforms, so as to gather strength for future growth.

Throughout this year, many changes have taken place both in the industry and market. At present, the most important task for SMIC is to seize the opportunities in the market and in new applications, and actively enhance the quality of products and customer service. In terms of technology research and development, we will continue to put in our utmost effort to focus on the planning and development of mainstream and advanced technology platforms, and maintain long-term and stable partnership with our customers. As China's preferred foundry partner, we believe that together with our customers, employees and shareholders, we will benefit from the growth opportunities of China's IC market."

For earnings history and earnings-related data on Semiconductor Manufacturing (SMI) click here.

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