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ChipMOS issues cautious Q1/2016 guidance, reports February sales

Mar. 10, 2016 6:38 PM ETChipMOS TECHNOLOGIES INC. (IMOS) StockBy: Eric Jhonsa, SA News Editor2 Comments
  • ChipMOS (NASDAQ:IMOS) has used its Q4 report to guide for to guide for a low-single digit Q/Q Q1 revenue drop, and for 2016 revenue to be flat to up single digits relative to 2015. The 2-analyst consensus is for revenue to drop 1% Q/Q in Q1 to $143.7M, and rise 3% in 2016 to $627.2M.
  • Though officially beating consensus, Q1 revenue of $145M (-18% Y/Y) was telegraphed via monthly sales reports. Meanwhile, official EPS of $0.07 (missing by $0.26) saw a $0.20 hit from $6.1M in extra income tax expenses and $2M in expenses related to the planned merger of ChipMOS' U.S. and Taiwan-listed units.
  • Gross margin fell to 19.2% in Q4 from 25.2% a year ago, but was above initial guidance of 14%-18%. Q1 GM guidance is at 17%-21%, and full-year guidance at 16%-20%. ChipMOS expects to spend $129M on capex in 2016, partly on capacity expansion at ChipMOS Shanghai; $111.1M was spent on capex in 2015.
  • ChipMOS has also reported February revenue of $45.1M, down 6.5% M/M (hurt by two fewer days relative to January) and 9.3% Y/Y. The annual decline narrowed slightly from January's 10.7%.
  • CEO S.J. Cheng predicts 4KTV growth and improving macro conditions will drive a 2016 sales rebound. "There is a dramatic multiplier effect, whereby 4K2K TVs require significantly higher driver content per TV, with 4K2K sets requiring over 2X as many LCD drivers as a typical HD TV. We are also optimistic about the healthier channel inventory of the DRAM and smartphone markets, which will help a recovery in 2016."
  • Shares haven't yet moved after hours.
  • ChipMOS' Q4 results, earnings release

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