Edgar Filing: CHIPMOS TECHNOLOGIES BERMUDA LTD

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of February, 2004

ChipMOS TECHNOLOGIES (Bermuda) LTD.

(Translation of Registrant’s Name Into English)

No. 1, R&D Road 1

Science-Based Industrial Park

Hsinchu, Taiwan

Republic of China

(Address of Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F x Form 40-F ¨

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes ¨ No x

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

(Registrant)

Date: February 10, 2004

By /S/ S. J. Cheng

Name: S. J. Cheng

Title: Deputy Chairman & Chief Executive Officer

EXHIBITS

Exhibit Number


1.1		Earnings Release for the Fourth Quarter of 2003

Exhibit 1.1

For Immediate Release

Contact:

Investor Relations/Media Relations

Dr. S.K. Chen

ChipMOS TECHNOLOGIES (Bermuda) LTD.

886-6-507-7712

s.k._chen@chipmos.com.tw

ChipMOS Bermuda Announces Unaudited Consolidated Results

for the Fourth Quarter of 2003 and the Year of 2003

Hsinchu, Taiwan, February 10, 2004 – ChipMOS TECHNOLOGIES (Bermuda) LTD. (Nasdaq: IMOS) (“ChipMOS Bermuda”) today announced its unaudited consolidated results for the fourth quarter and the year ended December 31, 2003.

Revenue for the fourth quarter 2003 was NT$2,484 million, an increase of 37% from NT$1,813 million for the same period in 2002 and an increase of 2% from NT$2,438 million for the third quarter of 2003. The gross margin for the fourth quarter of 2003 was 28% compared to 1% for the same period in 2002 and 20% for the third quarter of 2003. Net income for the fourth quarter of 2003 was NT$365 million or NT$6.18 per common share, compared to a net loss of NT$235 million or NT$4.00 per common share for the same period in 2002 and a net income of NT$173 million or NT$2.95 per common share for the third quarter of 2003.

For the fiscal year ended December 31, 2003, ChipMOS Bermuda had revenue of NT$8,956 million, an increase of 37% from NT$6,526 million in 2002, and a net profit of NT$418 million, compared to a net loss of NT$970 million in 2002. The net income per common share for the twelve months ended December 31, 2003 was NT$7.10, compared to a net loss per common share of NT$16.49 in 2002.

S.J. Cheng, Deputy Chairman and Chief Executive Officer of ChipMOS Bermuda, remarked, “We broke even in the third quarter of 2003 and continued to make profit in the fourth quarter of 2003. Effective October 2003, we raised the price of our LCD driver IC assembly and testing services between 20% and 25%, which contributed to the growth of our revenue and gross margin in the fourth quarter of 2003. Total revenue of NT$8,956 million has been generated in 2003 – the highest annual revenue we have generated since our incorporation. In response to the slowdown of the global economy and the subdued demand for semiconductors in 2000 and 2001, we tried to enhance our competitiveness and market share

in particular through investing in back-end or back-end related companies in the last two years. The operating results of those companies have improved and some of those companies made a profit in 2003. We are pleased what we achieved in 2003 met our expectations and we are confident that ChipMOS Bermuda is well positioned to take on future opportunities and challenges.”

Outlook

The demand for our LCD driver IC assembly and testing services has been increasing in line with the increase in demand for TFT LCD displays. LCD driver ICs are primarily used in handheld electronics, cellular phones, flat-panel displays and notebook computers. In the fourth quarter of 2003, we packaged most of the LCD driver IC using tape carrier package, or TCP, technology and chip-on-film, or COF, technology. Demand for COF packages has particularly been increasing, reaching 12% of our total LCD driver IC delivery in December 2003. Based on current market conditions, we believe that the demand for COF packages will continue to increase in the first quarter of 2004. As the prices for LCD driver IC continue to rise, in particular for COF packages, which have a higher margin, we expect our LCD driver IC operation to contribute more to our revenue and profit in the first quarter of 2004. In order to meet customer demands, we plan to further expand our capacity of our LCD driver IC operation to the scale of 32 million pieces per month by the end of the second quarter of 2004.

Due to the growth in handheld electronics and IA (Information Appliances) products, there has been a market shortage of flash memory since mid 2003. As a result, the demand of IDM (Integrated Device Manufacturer) customers for our assembly and testing services for flash memory products has increased, while the demand for SRAM and DRAM kept flat. Accordingly, we have allocated more capacity to our assembly and testing services for flash memory. We currently believe that our revenue from assembly and testing services for flash memory will increase in the first quarter of 2004.

Our Shanghai operation has increased its capacity to 6 million pieces per month by the end of December 2003. This capacity increase is expected to improve the gross margin of our China operation. Further expansion is expected to occur mainly in two areas, namely, assembly and testing of memory and LCD driver IC, and will be implemented in line with market demands.

About ChipMOS TECHNOLOGIES (Bermuda) LTD.:

ChipMOS Bermuda is a leading provider of semiconductor testing and assembly services to customers in Taiwan, Japan and the U.S. With advanced facilities in Hsinchu and Tainan

Science-Based Industrial Parks in Taiwan and Shanghai, ChipMOS Bermuda and its subsidiaries provide testing and assembly services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries. For more information, please visit its company website at http://www.chipmos.com.tw

FORWARD-LOOKING STATEMENTS

Certain statements contained in this announcement may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) and in the Company’s other filings with the SEC.

Financial information contained in this press release is unaudited and consolidated.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

For the Three Months Ended December 31, 2003 and 2002

Expressed in Thousand of Local Currency (NTD) and U.S. Dollars (USD) ⁽¹⁾

Except for Per Share Amounts and Shares Outstanding

3 months ended on December 31

Sequential Comparison

4Q 2003

% of
Sales

4Q 2002

% of
Sales

4Q 2003

% of

Sales

3Q 2003

USD

NTD

USD

NTD

Net Revenues

73,129

2,484,177

100%

1,813,209

100%

73,129

2,484,177

100%

2,437,737

Cost of Sales

52,642

1,788,238

72%

1,806,449

99%

52,642

1,788,238

72%

1,947,998

Gross Profits

20,487

695,939

28%

6,760

20,487

695,939

28%

489,739

Operating Expenses

5,150

174,948

158,065

5,150

174,948

192,796

Total Operating Expenses

5,150

174,948

158,065

5,150

174,948

192,796

Income from Operations

15,337

520,991

21%

(151,305

)

-8%

15,337

520,991

21%

296,943

Non-Operating Income

3,422

116,252

9,584

3,422

116,252

148,653

Non-Operating Expenses

2,492

84,666

186,091

10%

2,492

84,666

182,005

Net Non-Operating Income

930

31,586

(176,507

)

-10%

930

31,586

(33,352

)

Income before Income Tax and Minority Interest

16,267

552,577

22%

(327,812

)

-18%

16,267

552,577

22%

263,591

Income Tax Credit (Expenses)

(1,030

)

(34,982

)

-1%

(762

)

(1,030

)

(34,982

)

-1%

144

Income before Minority Interest

15,237

517,595

21%

(328,574

)

-18%

15,237

517,595

21%

263,735

Minority Interest

(4,502

)

(152,928

)

-6%

93,659

(4,502

)

(152,928

)

-6%

(90,271

)

Net income

10,735

364,667

15%

(234,915

)

-13%

10,735

364,667

15%

173,464

Earnings Per Share

0.18

6.18

(4.00

)

0.18

6.18

2.95

Shares Outstanding ('K)

59,011

58,711

59,011

58,873

Note (1) : Local currency values have been translated into U.S. dollars at the weighted average rate of 33.97 per U.S. dollar for the fourth quarter of 2003.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

As of December 31, 2003

Figures in Thousand of Local Currency (NTD) and U.S. dollars (USD) ⁽¹⁾

Dec-03

Dec-02

Sep-03

ASSETS

USD

NTD

Cash & Cash Equivalents

51,553

1,751,257

2,564,400

14%

436,594

Short Term Investment

48,479

1,646,831

874,932

1,919,145

11%

Accounts Receivable

70,562

2,396,994

12%

1,697,429

10%

3,177,652

18%

Inventories

9,877

335,497

166,493

254,181

Other Current Assets

22,971

780,333

365,500

486,244

Total Current Assets

203,442

6,910,912

36%

5,668,754

32%

6,273,816

35%

Investment in affiliates

37,248

1,265,329

1,441,866

1,185,542

Net Property, Plant & Equipment

306,762

10,420,692

54%

10,043,629

56%

9,662,303

54%

Intangible Assets

5,848

198,660

51,876

148,416

Other Assets

13,874

471,291

747,586

505,139

Total Assets

567,174

19,266,884

100%

17,953,711

100%

17,775,216

100%

LIABILITIES

Current Liabilities

141,629

4,811,139

25%

4,083,385

23%

3,842,116

22%

Long Term Liabilities

98,935

3,360,811

17%

4,011,435

22%

3,480,779

19%

Other Liabilities

21,524

731,172

258,434

720,905

Total Liabilities

262,088

8,903,122

46%

8,353,254

47%

8,043,800

45%

Minority Interest

92,394

3,138,625

16%

2,887,109

16%

2,980,933

17%

SHAREHOLDERS’ EQUITY

Capital Stock

570

19,379

19,233

Common Stock Option Warrants

2,552

86,675

64,401

85,396

Deferred Compensation

(1,254

)

(42,615

)

(39,245

)

(42,312

)

Capital Surplus

228,100

7,748,557

40%

7,645,968

43%

7,645,967

43%

Legal Surplus

5,518

187,434

Retained Earnings

(21,968

)

(746,248

)

-3%

(1,164,351

)

-7%

(1,110,915

)

-6%

Treasury Stock-Subsidiaries

421

420

421

Cumulated Translation Adjustment

(838

)

(28,466

)

(512

)

(34,741

)

Unrealized loss on long-term investments

Total Equity

212,692

7,225,137

38%

6,713,348

37%

6,750,483

38%

Total Liabilities & Shareholders’ Equity

567,174

19,266,884

100%

17,953,711

100%

17,775,216

100%

Note (1) : Local currency amounts have been translated into U.S. dollars at the rate of 33.97 per U.S. dollar at the end of December, 2003.