TSMC Q3 Profit Rises; Issues Q4 Guidance - Quick Facts

(RTTNews) - Taiwan Semiconductor Manufacturing Co Ltd. (TSM) reported net income of NT$96.76 billion, and earnings per share of NT$3.73 or US$0.59 per ADR unit for the third quarter ended September 30, 2016; both increased 28.4% year-over-year. Gross margin for the quarter was 50.7%, operating margin was 40.8%, and net profit margin was 37.2%.

Third-quarter consolidated revenue was NT$260.41 billion, an increase of 22.5% from last year. In US dollars, third-quarter revenue was $8.20 billion, which increased 23.0% year-over-year.

"Despite a less favorable exchange rate than our forecast, third quarter revenue surpassed the high-end of our guidance given three months ago, mainly due to strong demand in overall smartphone market," said Lora Ho, CFO of TSMC.

The company expects overall performance for fourth quarter 2016 to be: revenue between NT$255 billion and NT$258 billion; gross profit margin between 50.5% and 52.5%; and operating profit margin between 40% and 42%. The management further expects the 2016 capital budget to be slightly above US$9.5 billion.