Monday May 21, 4:16 pm Eastern Time
Press Release
Chartered Updates Outlook for Second Quarter 2001
SINGAPORE--(BUSINESS WIRE)--May 22, 2001--Chartered Semiconductor Manufacturing
(Nasdaq:CHRT - news; SGX-ST:CHARTERED) today announced that due to
weaker-than-expected market conditions, revenues and earnings for the company's second quarter
will be below its earlier guidance.
``Like so many others in the semiconductor industry, we have found it to be particularly difficult to
forecast near-term revenue trends this year due to weakening economic conditions and the
prolonged process of bringing inventories into balance throughout the supply chain,'' said Chia Song
Hwee, senior vice president, CFO & CAO of Chartered. ``Our customers have very low near-term
visibility, and consequently many have found it necessary to continually adjust their ordering levels.
This trend is most apparent with our customers who are in the communications market, which made
up approximately one-half of our business base in 2000.''
Based on the company's current assessment, revenues for the second quarter will be down
approximately 48% from the first quarter of 2001. This compares to prior guidance of a 25%
decline. Average factory utilization is expected to be in the low 30s, and it is now anticipated that for
the quarter, the company will record a loss in the range of US$0.76 to US$0.78 per American
Depositary Share (ADS). This compares to prior guidance of a loss of US$0.50 to US$0.52 per
ADS.
``Given the current turbulent market environment, it is difficult to predict revenue trends in the
coming quarters for both the industry and Chartered. Our belief continues to be that based on
historical patterns and on the severity of the decline seen in the first two quarters of 2001,
Chartered's revenues will increase sequentially in both the third quarter and the fourth quarter,'' said
Barry Waite, president & CEO of Chartered.
The company will host a conference call related to this announcement at 9:00a.m. today, May 22,
2001, Singapore time, which is May 21, 6:00p.m. Pacific Time in the US. Participants will be Barry
Waite, president & CEO, and Chia Song Hwee, senior vice president, CFO & CAO. The call will
be webcast at charteredsemi.com and will be archived for
playback on the Web site through May 29, Singapore time.
Chartered anticipates reporting the results of its second quarter on Friday, July 20, Singapore time. |
