Macronix International Co Ltd

TWSE:2337

Earnings Call Transcript 2021-Q4

[Operator]

Good day, and thank you for standing by. Welcome to Macronix International Company Limited Fourth Quarter Earnings Conference Call. [Operator Instructions] The presentation and the discussion contains certain forward-looking statements with respect to the results of operation, financial condition and current expectations. The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from those expressed or implied by such statements.

Such risks and uncertainties include, but are not limited to, the impact of competitive products and pricing, timely design acceptance by customers, timely introduction of new technologies, ability to ramp new products into volume, industry-wide shifts in supply and demand for semiconductor products, industry overcapacity, availability of manufacturing capacity, financial stability in end markets, and other risks.

The forward-looking statements in this release reflect the current belief of Macronix as of the date of this release, and Macronix undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date. Please be advised that today's conference is being recorded.

I'd now like to hand the conference over to your speaker today, Dr. C.Y. Lu, President of Macronix. Please go ahead, sir.

[Chih-Yuan Lu, executive]

Hello, everybody, ladies and gentlemen. Welcome to the Fourth Quarter Investor Conference. I will review our results. And then I will give it to our Financial Chief Officer about financial detailed results then I will do the business update for you.

Okay. Let's move to the next slide. Okay. The fourth quarter of 2021, we have a very solid results with a significant margin expansion as you can see from the following tables. The revenue, fourth quarter versus reviewed the third quarter and also compared with fourth quarter last 2020, that's the audited results. As you can see, our fourth quarter also achieved a very solid result. It's almost like the third quarter, since this is very seldom to happen, okay?

And the gross margin of fourth quarter is 47.2%, compared with the third quarter is 42.9%. And then you can see also a gray -- green -- gray box over there, this pro forma. Gross margin, 44.1%. Pro forma is our financial restatements, we just include the effect of a onetime event. That's a onetime event, mostly at the disposal of our 6-inch fab.

Compared with the last year, our gross margin has largely improved. Our operation margin also improved even larger. We end with 28.1% versus last quarter, 23.4%, even with the pro forma, 26.2% is still a significant growth. If compared with last year, it's almost double the results.

Okay. Since the fourth quarter, I also present with you the whole year of 2021. This table is showing the whole year 2021 results compared with the 2021 pro forma versus 2020 results. As you can see, this is the first time Macronix in a record high revenue, NT$50.6 billion okay? And then the gross margin is 41.6% versus a pro forma of 42.0%. And compared with last year, it's only 33.7%. Although 33.7% is a good number, but this quarter is even better. Operating margin is 21.9% versus last quarter a highest record 22.7% versus last year, 14.7%. So this is our overall results.

I would like to transfer to our CFO, Paul Yeh to detail with you of all the finance results. Paul?

[Pei-Fu Yeh, executive]

Okay. Thank you, C.Y. This is Paul Yeh. I'm going to report our fourth quarter of 2021 versus fourth quarter in 2020.

[Foreign Language]

[Chih-Yuan Lu, executive]

Okay. [Foreign Language]

[Pei-Fu Yeh, executive]

Hello, Amber?

[Operator]

Yes, I'm here.

[Pei-Fu Yeh, executive]

Yes, we're about to finish.

[Chih-Yuan Lu, executive]

Any oral question in your please?

[Operator]

There's currently no questions. Please continue.

[Pei-Fu Yeh, executive]

Okay.

[Chih-Yuan Lu, executive]

If no question, we wait for another 1 minute, and we will complete today's event.

[Foreign Language]

[Pei-Fu Yeh, executive]

Amber, we are running up.

[Operator]

Right. Thank you. So ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.