Semiconductor firm TSMC (TSM) has announced revenue of NT$77.29 billion, net income of NT$32.61 billion, and fully diluted earnings per share of NT$1.32 for the first quarter ended March 31, 2006.

On a consolidated basis, net sales were NT$77.85 billion while net income and EPS remained at NT$32.61 billion and NT$1.32, respectively.

Year-over-year, first quarter unconsolidated revenue increased 38.9% while net income and fully diluted EPS increased 93.9% and 93.6%, respectively.

On a sequential basis, unconsolidated first quarter results represent a 4.8% decrease in revenue, a 3.8% decrease in net income and a 3.9% decrease in fully diluted EPS.

As a result of stronger than expected demand in certain product segments, first quarter revenue surpassed guidance.

Advanced process technologies (0.13-micron and below) accounted for 49% of wafer revenues while revenues from 90-nanometer process technology alone was 20% of the total wafer sales. Gross margin declined from 49.1% in the previous quarter to 47.4% in the first quarter, with 3.3% depreciation in US dollars being an important factor.

Operating margin was 39.9% compared to 42.2% in the previous quarter, while net margin increased slightly to 42.2% from 41.8% quarter over quarter.

"Due primarily to seasonality and a weaker US dollar, our first quarter business had declined as we expected, although revenue surpassed our guidance," said Lora Ho, VP and Chief Financial Officer of TSMC.