Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Czechsinthemail who wrote (8761)	10/18/2000 7:33:33 AM
From: DJBEINO	Respond to of 9582

Chartered Semiconductor to see strong Q3 By Peh Soo Hwee SINGAPORE, Oct 18 (Reuters) - Chartered Semiconductor Manufacturing Ltd, the world's third largest made-to-order chipmaker, was expected to unveil strong third quarter results on Thursday with revenues up as much as 65 percent, analysts said. The expected robust growth is in sharp contrast to the gloom which has fallen over the sector and helped push the share price of Singapore's largest listed tech company to 11-month lows on Wednesday. Strong demand for telecommunications equipment was expected to further strengthen the company's recovery story. Four analysts polled by Reuters expected Chartered to post net profit of US$60-66 million on third quarter revenues near US$300 million. ``I expect Chartered's results to come in strongly,'' said Chua Wee Thia, technology analyst at Vickers Ballas, who forecast a net profit of US$60 million and revenues of US$291 million. Some analysts estimate the company recorded a loss in the third quarter last year of about US$7 million. As the firm only listed in November some comparative figures were not immediately available. Chartered's revenues rose about 66 percent year-on-year in the second quarter. The company reported net income of about US$58 million for the quarter versus a loss of US$13.6 million in the same period the previous year. But analysts said there were growing concerns heading into 2001 about a slowdown in the telecommunications market, which accounts for about half of Chartered's sales, and increased competition from rival foundries. ``We should be expecting some tough competition in mobile handsets next year and potential inventory issues due to over-projection in demand for handsets,'' said Warren Lau, analyst at HSBC Securities. About 15-20 percent of Chartered's sales come from mobile handsets. TAIWAN RIVALS Chartered was expected to face even tougher competition from its competitors in Taiwan, which have thus far had heavier exposure to the personal computer market. Analysts' warnings that PC sales were slowing have hit chipmakers' stocks hard in recent week. ``If there is continuous weak demand for PCs, I would expect the Taiwanese players to ship some of their capacity towards their communications customers,'' said Lau. But others said Chartered could benefit from the growing number of companies entering the mobile phone business. ``We're seeing a lot of competition in the wireless area particularly in the handset area. However, competition in the end-markets is good news for semiconductor companies because they are supplying more chips to more competitors,'' said Daniel Heyler, a semiconductor analyst at Merrill Lynch in Taiwan. A string of earnings warnings from hi-tech companies in the United States and the prospect of increased competition has taken a toll on Chartered's share price. The stock used to trade at a huge premium to larger Taiwan rivals Taiwan Semiconductor Manufacturing Corp (TSMC) and United Microelectronics (UMC) . On Wednesday it hit a low of S$6.55 before edging back to S$6.75 by 0745 GMT, down 40 cents on the day. TSMC shares ended T$6.50 lower at T$87.50 (about S$4.74) while UMC stock slipped T$3.50 to T$52.60 (about S$2.85). Chartered is trading at about 23 times its expected 2000 earnings, while TSMC, the world largest independent foundry, is trading at 18.5 times and UMC at 12.6 times. TSMC is also expected to report its third quarter results on Thursday. biz.yahoo.com