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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (26)	10/23/2001 12:04:31 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Chartered's fab utilization slips to 22% in Q3; loss hits $118.3 million Foundry cuts 2001 capital spending by another $150 million to $550 million this year Semiconductor Business News (10/22/01 18:56 p.m. EST) SINGAPORE--Chartered Semiconductor Manufacturing Pte. Ltd. here today reported revenues fell 21% sequentially to $79.2 million in the third quarter from $100.7 million in Q2, resulting in a net loss of $118.3 million in the Q3 period. The world's third largest pure-play silicon foundry said its fab capacity utilization rate dropped to just 22% in the third quarter compared to 31% in Q2 and 103% in the same period last year. "The extended process of bringing inventories into balance throughout the supply chain, coupled with dampened consumer sentiment resulting from a further weakening global economy, caused many customers to once again reduce their order rates," said Barry Waite, president and chief executive officer of Chartered. "Declines were most pronounced in the communications segment, reflecting ongoing inventory reductions, while the computer segment was essentially flat." Chartered said it now plans to lower its 2001 capital expenditures for 200-mm equipment by $150 million, bringing the company's full-year total to just $550 million. In July, Chartered announced it was cutting 2001 investments from $1 billion to $700 million and it pushed back the start of its planned 300-mm wafer fab until 2003 (see July 19 story). The Singapore foundry company today said it continues to work closely with its fab equipment vendors and remains "fully committed to 300-mm process development." The company said it now expects revenues to be flat to sequentially down 5% in the fourth quarter from Q3. Chartered said it is forecasting fab capacity utilization to be in the low-to-mid-20 percent range in Q4. Chartered is also predicting a loss of $0.95-to-$0.97 per American Depositary Share (ADS) compared to $0.86 per ADS in the third quarter. Chartered said it shipped 64,400 eight-inch equivalent processed wafers in the third quarter, a decline of 73.8% from 246,000 in Q3 of 2000 and 26.6% lower than 87,800 in the second quarter. Average selling prices for processed wafers dropped 0.9% to $1,231 in the third quarter compared to $1,242 in the same period last year, said the company. In Q2, the ASP was $1,192 per wafer, excluding a $3.9 million adjustment for a specific customer. Without that adjustment, ASPs in the second quarter were $1,147 per wafer.