SMIC Revises Up Second Quarter 2014 Gross Margin Guidance
SHANGHAI, July 21, 2014 /PRNewswire/ — Semiconductor Manufacturing International Corporation ("SMIC" or the "Company") (NYSE: SMI; SEHK: 981), one of the leading semiconductor foundries in the world, announces today an upward revision of its Q2 gross margin guidance for the three months ended June 30, 2014, which was originally released by the Company in its results for the three months ended March 31, 2014 on April 28, 2014. Gross margin for the three months ended June 30, 2014 is guided to be 27% to 29% compared to the original guidance of 22% to 24%.
Dr. Yonggang Gao, Chief Financial Officer commented, "Since the release of our second quarter gross margin guidance, we have seen an increase in utilization and improved expense control, exceeding our earlier expectations. Therefore, we are now revising up our second quarter gross margin. Meanwhile, we maintain our original revenue and non-GAAP operating expenses for the second quarter of 2014."
As originally guided, revenue in the second quarter of 2014 was expected to increase 12% to 15% quarter over quarter, and non-GAAP operating expenses (excluding the effect of employee bonus accrual, funding of R&D contracts from the government and gain from the disposal of living quarters) were expected to range from $89 million to $93 million.
The Company is still in the process of finalizing its results for the three months ended June 30, 2014. The information contained in this press release is only a preliminary assessment by the management of the Company based on the latest unaudited consolidated management accounts of the Company for the three months ended June 30, 2014, which have not been confirmed nor audited by the Company’s auditors and may be subject to adjustments.
The Company’s actual results for the three months ended June 30, 2014 and the Company’s guidance for the three months ended September 30, 2014 will be published on August 6, 2014.
Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.
Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China. SMIC provides integrated circuit (IC) foundry and technology services at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab in Beijing and a majority owned 300mm fab for advance nodes under development; a 200mm fab in Tianjin; and a 200mm fab project under development in Shenzhen. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong. For more information, please visit www.smics.com.
Safe Harbor Statements
(Under the Private Securities Litigation Reform Act of 1995)
This press release contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on SMIC’s current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC’s senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC’s actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition, timely wafer acceptance by SMIC’s customers, timely introduction of new technologies, SMIC’s ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, availability of manufacturing capacity, financial stability in end markets and intensive intellectual property litigation in high tech industry.
In addition to the information contained in this document, you should also consider the information contained in our other filings with the SEC, including our annual report on Form 20-F filed with the SEC on April 14, 2014, especially in the "Risk Factors" section and such other documents that we may file with the SEC or SEHK from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this document may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this press release.