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In a release on March 24, the Company noted:
Net revenue on a US GAAP basis for the fourth quarter of 2008 was NT$3,052.6 million or US$93.2 million, a decrease of 50.0 percent from NT$6,101.6 million or US$186.3 million for the same period in 2007 and a decrease of 30.0 percent from NT$4,361.5 million or US$133.1 million in the third quarter of 2008. Under US GAAP, the gross margin for the fourth quarter of 2008 was -28.0 percent, compared to 24.6 percent for the same period in 2007 and 0.3 percent for the third quarter of 2008.
Net loss on a US GAAP basis for the fourth quarter of 2008 was NT$5,838.6 million or US$178.2 million, and NT$69.54 or US$2.12 per basic common share, compared to net loss of NT$873.6 million or US$26.7 million, and NT$10.41 or US$0.32 per basic common share, for the third quarter of 2008. Net loss under US GAAP includes non-cash gains for changes in the fair value of the embedded derivative liabilities of NT$8.6 million or US$0.3 million and amortization of discount on convertible notes of NT$27.9 million or US$0.9 million for the fourth quarter of 2008 and non-cash gains for changes in the fair value of the embedded derivative liabilities of NT$21.9 million or US$0.7 million and amortization of discount on convertible notes of NT$77.0 million or US$2.4 million for the third quarter of 2008. Excluding the above special items regarding the convertible notes, non-GAAP adjusted net loss for the fourth quarter of 2008 was NT$5,819.3 million or US$177.6 million, and NT$69.31 or US$2.12 per basic common share, compared to non-GAAP adjusted net loss of NT$818.5 million or US$25.0 million, and NT$9.75 or US$0.30 per basic common share in the third quarter of 2008.
Under US GAAP, net revenue for the fiscal year ended December 31, 2008 was NT$17,010.2 million or US$519.2 million, a decrease of 27.9 percent from NT$23,597.6 million or US$720.3 million for the fiscal year ended December 31, 2007. Under US GAAP, net loss for the fiscal year ended December 31, 2008 was NT$7,177.7 million or US$219.1 million, and NT$85.56 or US$2.61 per common share, compared to net income of NT$2,901.7 million or US$88.6 million, and NT$36.13 or US$1.10 per common share, for the fiscal year ended December 31, 2007. Net loss for the fiscal year ended December 31, 2008 under US GAAP includes non- cash gains for changes in the fair value of the embedded derivative liabilities of NT$191.4 million or US$5.8 million and amortization of discount on convertible notes of NT$277.1 million or US$8.4 million. Excluding the above special items regarding the convertible notes, non-GAAP adjusted net loss for the fiscal year ended December 31, 2008 was NT$7,092.0 million or US$216.5 million, and NT$84.54 or US$2.58 per basic common share.
The unaudited consolidated financial results of ChipMOS for the fourth quarter ended December 31, 2008 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS Japan Inc., ChipMOS U.S.A., Inc., ChipMOS TECHNOLOGIES (H.K.) Limited, MODERN MIND TECHNOLOGY LIMITED and its wholly- owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD., and ThaiLin Semiconductor Corp.
S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "Despite continued market weakness, we achieved revenue of US$93.2 million in the fourth quarter. In light of the global financial climate, we faced similar challenges that every player in the semiconductor supply chain faced in the fourth quarter. The difficulties were not simply a temporary irregular market condition nor seasonality issue as we encounter on an annual basis in the past, but an economic downturn that may last for years under the current market outlook consensus.
The challenging global economic environment, credit crisis and slowing of consumer spending, significantly reduced DRAM demand in Q4, worsening the financial situation of DRAM makers across the space. As a result of this harsh financial climate, our DRAM revenue experienced a 38.5 percent sequential decline in Q4 resulting from a significant reduction in demand coming from our Taiwan customers. Given the current weakness in the macroeconomic environment, our LCD business dropped significantly with deterioration in consumer demand. Even after quarters of inventory correction in the LCD panel industry, panel makers continued their efforts to aggressively reduce their outputs to counter slowing orders. Rather than implementing continuous capacity services, our LCD driver customers placed rush orders to avoid inventory accumulations. This trend, coupled with weak momentum in the LCD industry, depressed the overall business activity in the supply chain resulting in our LCD driver revenue decline of 50.6 percent in the fourth quarter on a quarter-over-quarter basis. Additionally, we experienced significant revenue declines in both Flash and mixed-signal segments in Q4 as compared to Q3."
S.K. Chen, Chief Financial Officer of ChipMOS, said, "The Company started to take action to deal with the business down cycle at a very early stage. We launched our cost saving programs in early 2008, which was a couple of quarters ahead of the global recession. During past two years, we also managed to reduce CapEx and took other measures for improving of our financial condition. These activities helped us maintain our cash position at a level, which allowed us to sustain our operations in this unpredictable environment. To face this down cycle, we continue to work to readjust our financial resources and minimize cash outflow. The future business will be maintained based on the payment policy of cash-on-delivery for customers with financial problems. Management is confident that through its solid operation and diligent cost planning will ensure its continuous operation and improve performance even at down times like now. We are well prepared for the next dawn of the semiconductor industry."
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