This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Semiconductor Manufacturing International's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Please also be reminded of the Safe Harbor Statement which provides as follows. SMIC's statements of its current expectations are forward-looking statements subject to significant risks and uncertainties. The actual results may differ materially from those contained in such forward-looking statements. Information as to those factors that could cause actual results to vary can be found in SMIC's Form 20-F filed with the United States Securities and Exchange Commission on April 27, 2012.

I will now turn the call over to our CEO, T.Y. Chiu, for the opening remarks.

T.Y. Chiu

Thank you, En-Ling. Greetings to everyone. Thank you for joining us for our earning webcast.

I'm very pleased to report a solid second quarter results with revenue $421 million. This is a new sales record for SMIC, with a quarter-to-quarter increase of 26.8% and a growth of 19.7% over the same period last year. We have a positive operating profit and a net profit of $7.1 million.

SMIC has benefited from strong customer demand across the board, and in particular, an 87% quarter-to-quarter increase in our 65nm/55nm revenue. Also we are experiencing a strong demand increase for our specialty processes including power management IC, EEPROM, and others. As a result, the overall revenue growth exceeded our original guidance.

I would also like to point out that -- our significantly higher gross margin of 24% compared to 12% in the first quarter. This is primarily due to increased utilization as well as enhanced efficiency in all of our fabs. We are pleased with our progress in improving efficiency. As such, we are making progress in lowering our breakeven utilization. We are enjoying good overall fab utilization as a result of industry demand improvement and our own emphasis and effort. The second quarter overall utilization was 95% as compared to 74% in the first quarter.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs