9. Former name or former address, if changed since last report
Not Applicable
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class
Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares
2,165,024,111
11. Indicate the item numbers reported herein
Item 9. Other Events
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.
SFA Semicon Philippines CorporationSSP
PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C) Section 4.4 of the Revised Disclosure Rules
Subject of the Disclosure
SSP Posts US$152 M in Revenues in First Nine Months of 2017
Background/Description of the Disclosure
Publicly listed SFA Semicon Philippines Corporation (formerly known as Phoenix Semiconductor Philippines Corp) disclosed that its gross revenues for the first nine months of 2017 increased 30% to US$152.50 million from US$117.26 in the same period last year.
The Company (Trading Symbol: SSP) attributed the revenue growth from the increase in the sales volumes of its memory devices on the back of the sustained recovery in the global semiconductor industry.
“SSP benefited from the strong performance of our customer and partner, Samsung Electronics, and from the positive outlook of the industry as a whole,” SSP President Mr. Byunggil Go said.
SSP produced a total of 477.50 million units of memory devices in the first three quarters of 2017, an increase of 17.08% from the 407.85 million output last year.
The production of DRAM memory modules totaled 449.87 million units, most of which have been shifted to the next generation DDR4 format. Comparatively, DRAM output during the same period last year amounted to 371.58 million units.
Volumes of the branded micro SD memory cards reached 15.63 million units in 2017, a decrease of 56.91% from the 36.27 million recorded in the same period last year. However, a total of 11.96 million units of the new Embedded MMC (eMMC) flash cards for smartphones and other mobile devices was also recorded during the year.
Despite the robust performance in topline results, the Company posted a net income after tax of US$0.76 million for the nine months ended September 30, 2017, down from the US$6.02 million the previous year.
Mr. Go explained that the income margin decreased due to the change in the product mix and additional expenses associated with facility upgrading for the new eMMC products that were introduced early in the year. The sales volumes of the eMMC cards were not able to compensate for the drop in micro SD cards during the period.
The cost of sales increased 40% from US$105.9 million in 2016 to US$148.02 million during the current year. Nevertheless, he noted that the Company continued to streamline and improve its operations. It cut down general and administrative expenses by 7% to US$1.97 million from the US$2.12 million in 2016. He noted that the increased efficiencies were not sufficient to offset the rise in raw material cost.
Finance cost (interest expense and guarantee fees) and other expenses for the nine months ended September 30, 2017 went down to US$1.11 million and US$0.53 million.
Mr. Go pointed out that the prospects for the global semiconductor industry, which is being led by the memory and logic segments, remains positive for the balance of the year with double-digit growth in revenues and shipments in the whole-year of 2017.
SFA Semicon Philippines CorporationSSP