Singapore's STATS says chip assembly and test recovery broadens in Q4
With write-downs and charges, net loss totals $47 million in quarter
Semiconductor Business News
(01/29/02 18:38 p.m. EST)
siliconstrategies.com
SINGAPORE -- ST Assembly Test Services Ltd (STATS) today posted a 20.9% sequential increase in net revenues to $33.9 million in the fourth quarter from $28.0 million in Q3 of 2001, but sales were 63.4% lower than $92.8 million in Q4 of 2000.
The Singapore-based chip assembly and test contractor reported a net loss of $47.0 million for the fourth quarter period, including an asset impairment charge of $23.7 million for equipment write-down, a write-down of prepaid leases of $3.1 million, and a deferred tax benefit of $9.6 million. In Q4 of 2000, the company had a net income of $8.0 million.
STATS said unit shipments in test and assembly operations sequentially increased 21.3% in both business segments. Average "selling" prices for chip testing rose 2.0% from the third quarter, while assembly services "ASPs" were 6.6% higher on a sequential basis, said David Davoody, president and CEO of STATS.
"The recovery in the computer market that we saw in the third quarter has broadened to selected segments in the wireless and wireline communications space," Davoody said.
The chief executive officer said the company's business "appeared to bottom out in the third quarter," and STATS ended up with "significantly better fourth quarter performance compared to earlier expectations."
"Nevertheless, the business environment remains challenging and visibility remains limited. While we are optimistic that, barring any unexpected setbacks to the global economy, this year could be a better year, we do not currently have visibility to be specific about 2002 expectations," Davoody said. He added that the company is now estimating that its revenues will be flat-to-5% higher than Q4 of 2001. |
