Looks like things not getting better for BRCM
03/20 00:17 UPDATE 1-ST Assembly <STTS.SI> cuts Q1 forecast
(Updates with comments from conference call, analysts)
SINGAPORE, March 20 (Reuters) - Singapore's ST Assembly Test Services <STTS.O> said it would suffer a first quarter loss of US$23 million to US$25 million and revenues would be about 50 percent lower compared with the fourth quarter of last year.
Weaker demand came from customers across the board, chairman and chief executive officer Tan Bock Seng said in a conference call with analysts on Tuesday after the profit warning. "There is no one customer that we are aware of that is not expecting some slow down," Tan said.
ST Assembly's top customers in the first quarter were Analog Devices Inc <ADI.N>, Alcatel SA <CGEP.PA>, Broadcom Corp <BRCM.O>, Infineon Technologies AG <IFXGn.DE> and Marvell Technology Group Ltd <MRVL.O>.
In terms of order cancellation, Tan said it had slowed down quite substantially and seemed to be bottoming out.
The firm, a provider of semiconductor test and assembly services for designers and wafer foundries, issued its warning some two weeks after sister company Chartered Semicondudctor Manufacturing <CSMF.SI>.
ST Assembly, part of the government-owned Singapore Technogies group, said it expected to post a loss of US$0.23 to US$0.25 per American Depositary Share (ADS) in the first quarter.
Among the assumptions that led the firm to a loss per ADS was a negative gross margin of about 20 percent, Tan said...
Fred |
