“UMS 4Q2012 gross material margin declined to 41% from 54% in 4Q2011. This decline in margin was mainly due to inventory adjustment made during the quarter as well as UMS extending price discount on some products lines. The price discount was made in return for a 5 year contract extension of the Semicon Integrated System business with a key customer”.Gross Material Margin = (Revenue – COGS)/Revenue COGS = (Change in inventory + Raw material purchases and sub-contractors charges) Simply put, taking out the impairment, exchange differences and one time gain, the result is even worse. I believe we can bear that this industry is not always smooth sailing, but what I missed out was probably a severe impairment to margins. If ......
I talked about UMS latest full year results a day ago. I have to update that I may have missed out on a pretty important piece of information.
