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

To: BWAC who wrote (5837)	3/14/2003 12:03:04 PM
From: Gottfried	Read Replies (3) \| Respond to of 25522

OT *** few things surprise me after the fact.:) Bearish investor sentiment bcaresearch.com

To: BWAC who wrote (5837)	3/14/2003 1:34:44 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 25522

Chartered says it may lack funds, cuts back 2003 capex By Peter Clarke Semiconductor Business News (03/14/03 10:48 a.m. EST) SINGAPORE --- Struggling Singaporean foundry chipmaker Chartered Semiconductor Manufacturing Pte. Ltd. said it needs more money that it may not be able to raise, in its 2002 annual report filed to the U.S. Securities and Exchange Commission. Chartered did manage to raise about $600 million in a poorly subscribed rights issue in 2002 (see September 2, 2002, story) but it trails a long way behind Taiwan Semiconductor Manufacturing Co. Ltd. and United Microelectronics Corp. in the foundry market. A lack of funds for investment could see the company falling further behind and lose credibility as a foundry supplier. The company is looking for partners to help it equip a 300-mm wafer fab. The annual report makes depressing reading. It contains the phrase: “We expect to incur substantial capital and research and development expenditures in connection with our growth plans and will require additional financing that may not be available.” Elsewhere the company said its capital expenditure budget for 2003 is about $275 million. This compares with 2000 when Chartered spent $964 million and 2001 when it spent $490 million and 2002 when Chartered spent $420 million on capital expenditure, it said. The company has set a 2003 budget for R&D of $120 million. “In addition, we expect to incur substantial capital expenditures beyond 2003 to fully equip Fab 7," Chartered said, referring to its latest production plant, which is intended for 300-mm wafers. “We will require additional financing to complete such equipping,” it added. Chartered, which is controlled by the Singaporean state through an intermediary called Singapore Technologies Group, also stressed that it has been loss-making since its inception. “We have a history of losses and negative operating cash flows and this may continue,” the report said. Even in the up years of 1998, 1999 and 2001, Chartered incurred net losses of $190.0 million, $32.6 million and $384.0 million, respectively. For the year ended December 31, 2002, Chartered incurred a net loss of $417.1 million, the company said. As of December 31, 2002, the company has an accumulated debt of $834.0 million. “We cannot assure you that our net losses or negative operating cash flows will not continue or increase in the future or that we will become profitable,” the report said.