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

To: rhering who wrote (7689)	10/22/2003 11:02:16 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Chartered's Q3 sales jumps 8%, sees 20% growth in Q4 Silicon Strategies 10/22/2003, 6:50 PM ET SINGAPORE--Chartered Semiconductor Manufacturing Pte. Ltd. posted sales of $137.7 million in the third quarter, up 7.9 percent from $127.6 million in the previous quarter and $129.5 million in the like period a year ago. Net loss was $75.9 million in Q3, compared to a deficit of $89.4 million in the year-ago quarter. In the previous quarter, the Singaporean foundry provider posted a loss of $90 million. Included in third quarter 2003 net loss was a $3.3 million Fab 1 restructuring expense. Net loss was also unfavorably impacted by $23.8 million due to the accounting procedures. Capacity utilization in third quarter 2003 was 59 percent, compared to 39 percent in the year-ago quarter, and 55 percent in second quarter 2003. "In the third quarter, we saw improvement in each of the market sectors that Chartered serves, and our expectation is that further improvement will take place in the fourth quarter," said Chia Song Hwee, president & CEO of Chartered, in a statement. "Revenues of our 0.13-micron product offering increased over 45 percent sequentially, and now represent 8 percent of total revenues compared to 1 percent in the final quarter of last year. Since the fourth quarter of last year, we have increased shipments of mature technology wafers by 58 percent." Shipments in third quarter 2003 were 153.7 thousand wafers (eight-inch equivalent), an increase of 37.4 percent, compared to 111.9 thousand wafers (eight-inch equivalent) in third quarter 2002. Shipments in third quarter 2003 increased by 9.7 percent compared to 140.1 thousand wafers (eight-inch equivalent) shipped in second quarter 2003. Average selling prices decreased 1.7 percent from $911 per wafer in second quarter 2003 to $896 per wafer in third quarter 2003, primarily due to product mix and offset by higher shipments of 0.13-micron wafers. In the fourth quarter, Chartered is expected to post another loss of $50 million, plus or minus $5 million, on sales of $171 million, plus or minus $3 million. This represents a 22-to-26 percent jump over Q3. "Based on the current demand levels from our customers, we expect the fourth quarter to be a strong one for Chartered, particularly in the computer and consumer sectors of our business," said George Thomas, vice president & CFO of Chartered, in a statement. "Beyond the current quarter, visibility remains limited in the industry, with the strength of holiday sales always difficult to predict at this time of the year. "In the fourth quarter, Chartered revenue growth should once again be aided by the gains we are making in advanced technology. We expect the revenue contribution from 0.18-micron and below products to be in the low 40s, and 0.13-micron revenues to be up sequentially in both dollar terms and as a percent of total," he said. "In modeling Chartered's business, based on the current structure, we estimate that the quarterly revenue range required to break-even at the net income level is approximately $250-$270 million, depending on mix and average selling price assumptions. Revenues in this model include our share of SMP, and net income excludes the impact of the CSP accounting treatment related to its negative net worth," Thomas said.