Financial Data and Key Metrics Changes - The company achieved a 10% revenue growth in Q2 compared to Q1, with total revenue reaching $158.2 million [8][15] - Gross margin improved to 17.1% in Q2 from 15% in Q1, with net earnings per basic ADS increasing to $1.13 from $0.17 in Q1 [9][15] - Net profit for Q2 was $41.1 million, compared to $6.3 million in Q1, reflecting a significant increase in profitability [15][16] - Cash generation increased, with a reduction in net debt by $38.1 million, resulting in a net debt-to-equity ratio of 26.6% [9][17] Business Line Data and Key Metrics Changes - Revenue from Flash products grew by 14.4% in Q2 compared to Q1, representing about 19% of total Q2 revenue, while DRAM accounted for about 16% [10] - Driver IC-related business products saw a 13% revenue growth compared to Q1, with TDDI product revenue growing by 24% [11][12] - The revenue breakdown for Q2 was 20.1% in testing, 24.7% in assembly, 36% in LCD driver business, and 19.2% in bumping [15][16] Market Data and Key Metrics Changes - The automotive and industrial markets represented about 9% of total revenue in Q2, while TVs accounted for 24% and smart mobile devices increased to 39% [12] - The company is experiencing strong demand from TDDI and NAND flash businesses, particularly from new customer programs [10][13] Company Strategy and Development Direction - The company is focused on diversifying its customer base and end markets, which is driving revenue growth [8] - There is an emphasis on improving product cost and capacity utilization, with a target to maintain CapEx under 20% of total revenue [9][25] - The company is optimistic about growth in NAND and NOR flash segments, with plans to ramp up production and engage with key players in the market [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2019, citing healthy inventory levels and strong customer demand [13] - The company expects continued revenue growth in Q3 and Q4, although Q4 may see slightly lower growth compared to Q3 [31][32] - Management highlighted the positive impact of trade tensions, leading to increased customer shipping capacity to Taiwan [10] Other Important Information - A cash dividend of $0.77 per ADS was approved by shareholders, reflecting the company's commitment to returning value to shareholders [9][14] - The company completed the sale of 9.1 million common shares of JMC, resulting in a disposal gain of approximately $31.7 million [16] Q&A Session Summary Question: Can you provide additional color on gross margin trends for the second half? - Management indicated that gross margins are expected to improve further, with Q2's actual gross margin at 18.6% after adjusting for the JMC sale [21][23] Question: What is the CapEx outlook for the remainder of the year? - The company aims to keep total CapEx for 2019 in the range of 20% to 25% of total revenue [25] Question: What is the expected free cash flow for the remaining quarters? - Free cash flow for the total year is projected to be in the range of $5 million to $10 million, with Q3 expected to show negative free cash flow due to bonuses and dividends [27] Question: Can you provide updates on the joint venture in China? - The joint venture is progressing, with Unigroup taking the majority stake, and the company is recognizing long-term investment gains [29] Question: What is the revenue outlook for Q3 and Q4? - Management forecasts good performance for Q3, with Q4 expected to show sequential growth but slightly lower than Q3 [31][32]

ChipMOS Technologies, Inc. (NASDAQ:IMOS) Q1 2019 Results Earnings Conference Call May 7, 2019 8:00 AM ET Company Participants David Pasquale - Global IR Partners Shih-Jye Cheng - CEO Silvia Su - VP of Finance & Accounting Management Center Operator Greetings, and welcome to the ChipMOS Technologies Inc. First Quarter 2019 Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host today, David Pasquale, Global IR Partners. ...

Table of Contents As filed with the Securities and Exchange Commission on April 25, 2019 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transi ...

Financial Data and Key Metrics Changes - In Q4 2018, total revenue was US$162.4 million, with net earnings of US$16.9 million, translating to $0.46 per basic ADS, an increase from $0.37 per basic ADS in Q3 2018 [15][16] - For the full year 2018, total revenue reached US$603.8 million, with net earnings of $0.90 per basic ADS, down from $2.34 per basic ADS in 2017 [15][16] - Gross margin improved to 22.8% in Q4 2018, up from 19.5% in Q3 2018, reflecting operational efficiency and a favorable product mix [6][7] Business Line Data and Key Metrics Changes - The revenue breakdown for Q4 2018 was 23.5% from testing, 24.6% from assembly, 33.7% from LCD driver business, and 18.2% from bumping [16] - The DDIC business grew approximately 18.2% in 2018 compared to 2017, representing about 31.6% of total revenue [8] - TDDI products accounted for 28.3% of DDIC revenue in Q4, up from 22.8% in Q3, indicating strong demand in this segment [9] Market Data and Key Metrics Changes - The memory product revenue declined about 5% in Q4 compared to Q3, aligning with broader market trends [10] - The company reported a 15.93% revenue increase in January 2019 and a 9.75% increase in February 2019 compared to the same periods in the previous year, indicating a strong start to 2019 [21] Company Strategy and Development Direction - The company aims for high single-digit organic growth in 2019, focusing on LCD driver products, particularly TDDI and fine pitch COF smartphone models [21] - Strategic investments will continue in DDIC testing and 12-inch COF assembly capacity to meet strong demand [13] - The company has secured long-term contracts with customers, ensuring utilization rates and reducing market risk [13] Management Comments on Operating Environment and Future Outlook - Management noted industry softness in Niche DRAM due to trade tensions but emphasized the company's diverse customer base and geography as a growth driver [7] - The company expects memory pricing to stabilize in the second half of 2019 after significant drops in Q1 [23] - The 5G buildout is anticipated to be a major catalyst for growth in the semiconductor industry over the next two years [12] Other Important Information - The company completed a capital reduction plan in Q4 2018, reducing the number of common shares by around 15%, which is expected to enhance shareholder returns [11] - A cash dividend distribution of around NT$1.2 per share was approved, alongside a cash dividend of NT$0.3 [14] Q&A Session Summary Question: What are the biggest growth drivers for 2019? - Management identified LCD driver products, especially TDDI and fine pitch COF smartphone models, as key growth drivers, with an internal goal for organic growth set at high single-digit percentages [21] Question: When might memory pricing stabilize? - Management indicated that DRAM pricing has seen significant drops, with expectations for recovery signs in the second half of 2019 once customer inventories are cleared [23]