United Microelectronics (NYSE: UMC) reported Q1 EPS of $0.048, $0.028 better than the analyst estimate of $0.02. Revenue for the quarter came in at $1.29 billion versus the consensus estimate of $1.2 billion.

First Quarter 2018 Overview1:

• Revenue: NT$37.50 billion (US$1.29 billion)
• Gross margin: 12.4%
• Foundry revenue from 28nm: 12%; Foundry operating margin: 2.3%
• Foundry capacity utilization rate: 94%
• Net income attributable to stockholders of the parent: NT$3.40 billion (US$117 million)
• Earnings per share: NT$0.28; earnings per ADS: US$0.048

Jason Wang, co-president of UMC, said, “In the first quarter of 2018, despite the unfavorable movement of the NT dollar, our foundry revenue increased 2.5% QoQ to NT$37.44 billion. Stable loading across 8\" and mature 12\" technologies resulted in an overall utilization rate of 94%, bringing wafer shipments to 1.75 million 8-inch equivalent wafers. Softening demand in smartphone and other wireless devices was more than offset by strength in the computer and consumer segments.”

Co-president Wang continued, “Looking into the second quarter, we anticipate our wafer shipments to increase, mainly due to growing business opportunities from wireless communication as well as computer peripheral related chip demand. As we secure new product tape outs across advanced and mature technologies including 28nm, we will leverage our collaborative efforts with customers supported by UMC’s manufacturing excellence to enhance our market share and financial results. While we focus on revenue and profit growth, we also seek to maximize shareholder returns. Subject to shareholders’ approval, the board of directors recently proposed a cash dividend distribution of approximately NT$0.70 per share, which constitutes around an 88% cash dividend payout ratio. In addition, we began our 18th share buyback program in March 8, 2018 and will complete the purchase of shares for cancellation by May 7, 2018. Moving forward, we will continue to improve UMC’s profitability and maintaining business growth to maximize benefits to our shareholders.”

For earnings history and earnings-related data on United Microelectronics (UMC) click here.