Siliconwareorward-looking statements are inherently subject to risks, uncertainties and assumptions about us, including, among other things:
-- the intensely competitive semiconductor and personal computer industries and markets; -- risks associated with international business activities; -- our dependence on key personnel; -- natural disasters, such as earthquakes and droughts, which are beyond our control; -- general economic and political conditions, including those related to the semiconductor and personal computer industries; -- possible disruptions in commercial activities caused by human-induced disasters, including terrorist activity and armed conflict, and outbreaks of contagious diseases, such as severe acute respiratory syndrome, or SARS, which reduce end-user purchases relative to expectations and orders; -- fluctuations in foreign currency exchange rates; -- additional disclosures we made in our previous, or may make future, Form 20-F annual reports and Form 6-K periodic reports to the Securities and Exchange Commission, or the SEC; and -- those other risks identified in our annual report for the year ended December 31, 2004 on Form 20-F filed with the U.S. Securities and Exchange Commission on June 27, 2005.
The words "anticipate," "believe," "estimate," "expect," "intend," "plan," "will," "shall" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this annual report might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.
Siliconware Precision Industries Co. Ltd. to Restate US GAAP Reconciliation of Prior Results; No Change to Primary Financial Statements under ROC GAAP Thursday April 27, 9:40 pm ET
TAICHUNG, Taiwan, April 27 /Xinhua-PRNewswire-FirstCall/ -- Siliconware Precision Industries Co., Ltd. (TAIEX: 2325; Nasdaq: SPIL) ("SPIL" or the "Company"), a leading provider of comprehensive semiconductor assembly and test services based in Taiwan, announced today that an item in the footnotes to the Company's financial statements as of and for the years ended December 31, 2002, 2003 and 2004 were incorrectly recorded for the purposes of the U.S. GAAP reconciliation included therein. An error relating to derivative instruments was discovered in the course of preparing responses to comments received from the U.S. Securities and Exchange Commission ("SEC") in relation to the Company's Annual Report on Form 20-F for the year ended December 31, 2004.
SPIL has estimated the impact of the fair value of certain derivative instruments embedded in its convertible bonds under U.S. GAAP to decrease its net loss by NT$54 million in 2002, to decrease its net income by NT$151 million in 2003 and to increase its net income by NT$4 million in 2004. As a result, the Company currently expects to reduce its previously reported net loss under U.S. GAAP in 2002 by 24.2% from NT$223 million to NT$169 million, to decrease its previously reported net income under U.S. GAAP in 2003 by 4.6% from NT$3,248 million to NT$3,097 million; and to increase its previously reported net income under U.S. GAAP in 2004 by only 0.1% from NT$3,667 million to NT$3,671 million. Although the absolute number of the difference in 2002 caused by the error was relatively small (NT$54 million), the percentage of the impact on the net loss was relatively high (24.2%) due to the very low net loss reported under U.S. GAAP as the Company experienced a difficult year in 2002. In addition, the impact on the Company's equity only accounted for 0.18%, 0.27% and 0.24% of the Company's stockholders' equity as of December 31, 2002, 2003 and 2004, respectively.
The error discovered does not affect SPIL's financial results reported under ROC GAAP for any years in the three-year period ended December 31, 2004, nor do they affect the Company's current or future cash payments.
The decision to restate its financial statements was made today by the audit committee of SPIL's board of directors, upon the recommendation of management and with the concurrence of PricewaterhouseCoopers, the Company's independent auditors. SPIL expects to file its restated financial statements in respect of those years in its Annual Report on Form 20-F for the year ended December 31, 2005. The response to the recent inquiries from the SEC may be subject to further SEC review; and the resolution of such inquiries may result in additional restatements and adjustments to the anticipated restatement amounts described above.