Quarterly results for TSMC (TSM), announced today, show a decrease in revenue, largely a result of the company's decline in wafer shipments.

First quarter revenue reached NT$55.65 billion while net income and fully diluted earnings per share came to NT$16.82 billion and NT$0.72 per share, respectively.

On a sequential basis, first quarter results represent a 12.9% decrease in revenue, a 24.2% decrease in net income and a 25.3% decrease in fully diluted EPS.

TSMC says the 12.9% decrease in first quarter revenue mainly resulted from an 8.8% decrease in wafer shipments and a 4.4% weaker US dollar against the local currency. The average wafer selling price remained at the same level.

Gross margin for the first quarter declined to 38.9% from the previous quarter's 42.5%, due to lower levels of wafer output and the unfavorable movement of the currency exchange rate. Net margin for the quarter was 30.2%, while

it was 34.7% in the last quarter.