January 15th, 2019 – Nanya Technology Corporation, (TWSE: 2408), today announced its results of operations for the Fourth quarter, ended December 31st, 2018. Nanya’s quarterly sales revenue was NT$ 16,958 million, 30.4 percent decreased compared to the third quarter, 2018. Average selling prices (ASP) decreased by low teens percent; bit shipment decreased by low twentys percent in the fourth quarter.
Gross profit of the quarter was NT$ 8,972 million, gross margin was 52.9 percent, a 6.0 percentage points decrease compared with previous quarter. Operating Income of the quarter was NT$ 7,092 million, operating margin was 41.8 percent. Operating margin decreased 9.2 percentage points compared with last quarter. Non-operating income of the quarter was NT$ 894 million primary from interest income and foreign exchange gain. The Company had net profit of NT$ 7,953 million, with net margin of 46.9 percent, a 5.9 percentage points decrease compared with previous quarter. Earnings per share (EPS) of NT$ 2.57 in the fourth quarter (the earnings per share calculations are based on weighted average outstanding shares of 3,090 million). Book value per share was NT$ 54.01 at the fourth quarter end.
The annual sales revenue was NT$ 84,722 million in 2018, 54.3 percent increase compared to previous year’s. In year 2018, the sales volume increased by mid-thirtys percent, the average selling price increased by mid-teens percent year-over-year. Gross Profit of the year was NT$ 46,616 million, gross margin was 55.0 percent. Operating income in year 2018 was NT$ 39,355 million, operating margin was 46.5 percent. The year recognized non-operating income NT$ 2,230million, mainly from interest income and foreign exchange gain. Income tax expense was NT$ 2,224 million. The net income attributable to Nanya Technology shareholders of NT$ 39,362 million, with net margin of 46.5 percent, NT$ 12.80 earnings per share (the earnings per share calculations are based on weighted average outstanding shares of 3,074 million). All numbers are unaudited.
In 2019, the company plans to enhance its position in server market and launch advanced Low Power DRAM products. In response to conservative market conditions, 2018 capital expenditure (Capex) has trimmed down to NT$20.4 billion. 2019 Capex plan will be further reduced.
Nanya Technology share repurchase plan expired on January 11, 2019. In phase-I, the Company repurchased 20 million shares of common stock, with a total amount of NT$1,147 million. Phase-I is for employees’ stock options program. In phase-II, the Company repurchased 50 million shares of common stock, with a total amount reached NT$2,666 million. Phase-II of repurchase is for safeguarding shareholders' interests. The aggregate shares of repurchase were booked as treasury stock, which accounts for 2.26% of the total number of outstanding shares.
* EBITDA = Operating income + Depreciation & Amortization Expenses
** EPS is based on weighted average outstanding shares of 3,090M
*** BVPS is calculated based on 3,053M outstanding shares after deduction of treasury stocks
Note : The earnings per share calculations are based on weighted average outstanding shares of 3,074 million
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