HSINCHU, Taiwan, March 16, 2017 — (PRNewswire) — ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today provided its consolidated financial forecast for the first quarter of 2017 pursuant to a request from the Taiwan Stock Exchange. This is intended to provide additional information on the underlying financial forecast of the first quarter of 2017 guidance provided by the Company on March 9, 2017 and does not represent a change in that guidance.

Based on Taiwan's applicable regulations, a publicly listed company is prohibited from providing any financial forecast or business guidance publicly if its sum total of the non-operating income and expenses on the consolidated (or individual) financial reports for the most recent four quarters accounts for more than 10 percent of the sum total of the profit before tax.  Otherwise a company may be required to publish a simplified financial forecast for the period concerned.  ChipMOS provided guidance for the first quarter of 2017 in its press release issued on March 9, 2017 as well as in the accompanying investor conference calls hosted by the Company.  Given the Company's non-operating income and expenses for the most recent four quarters are accounted for 18% of the profit before tax, the Taiwan Stock Exchange deemed it was necessary for the Company to publish a simplified financial forecast, as listed below.

ChipMOS TECHNOLOGIES INC. and Subsidiaries (the "Group")

Summary Consolidated Financial Forecast for the First Quarter of 2017

I. Contents of important items:

(All figures in Thousands of New Taiwan Dollars)             

Note:

1. Comprehensive income represents the comprehensive income attributable to equity holders of the Company (excluding non-controlling interests and predecessors' interests under common control).
2. Earnings per share represents the basic earnings per share attributable to equity holders of the Company.

II. Explanation regarding the summary of significant basic assumptions and the bases of estimates:
(All figures in Thousands of New Taiwan Dollars)

1. Consolidated revenue:

The Group's forecasted revenue for the First Quarter of 2017 ("1Q17") is primarily based on the Company's business plan and reflects traditional seasonality and fewer working days in 1Q17 due to Chinese New Year closures.  Consolidated revenue for 1Q17 is forecast to decline 4.0% ~ 8.0% as compared to the prior quarter.  Forecasted figures are provided in the following table:

2. Consolidated cost of revenue:

The Group's forecasted cost of revenue for 1Q17 is primarily based on the expected operating targets and historical experience. Consolidated cost of revenue for 1Q17 is expected to show a decline of 2.7% ~ 3.3%, as compared to the prior quarter. This forecast mainly correlates with the forecast sequential decline in revenue and partially offset by the increased accrual of employees' bonuses based on the increased profit resulted from the recognition of the equity interest disposal gain on the subsidiary, ChipMOS TECHNOLOGIES (Shanghai) LTD. ("ChipMOS Shanghai").  Forecasted figures are provided in the following table:

3. Consolidated operating expenses:

The Group's forecasted operating expenses for 1Q17 are primarily based on historical experience and the Company's operating plan. Consolidated operating expenses for 1Q17 are forecasted to be in the range of down 15.0% to up 8.4% as compared to the prior quarter. Forecasted figures are provided in the following table: