MILPITAS, Calif.—(BUSINESS WIRE)—April 26, 2007— Chartered Semiconductor Manufacturing (Nasdaq: CHRT)(SGX-ST:CHARTERED), one of the world's top dedicated semiconductor foundries, today announced its results for first quarter 2007.

"As the industry continued to work through the excess inventory coupled with the usual seasonal slowness in the first quarter, Chartered revenues in first quarter 2007 were down 4.5 percent and revenues including our share of SMP were down 5.0 percent from the previous quarter. The revenue decline was primarily due to weakness in the consumer sector and to a lesser extent the computer sector, partially offset by strength in the communications sector. Revenues from 0.13-micron and below technologies, including those from 90 nanometer (nm), accounted for 57 percent of our total business revenues. Revenues from 90nm alone contributed 27 percent of our total business base revenues. Net income for the quarter was $5 million, in line with the previous guidance," said George Thomas, senior vice president and CFO of Chartered.

Summary of First Quarter 2007 Performance

-- Revenues were $323.8 million in first quarter 2007, down 8.8 percent from $355.2 million in first quarter 2006. Revenues including Chartered's share of SMP were $345.3 million, down 10.6 percent from $386.1 million in the year-ago quarter, primarily due to weakness in the consumer sector and to a much lesser extent the communications sector, partially offset by strength in the computer sector. Sequentially, revenues were down 4.5 percent compared to $339.1 million in fourth quarter 2006. Revenues including Chartered's share of SMP were down 5.0 percent from $363.7 million in fourth quarter 2006, primarily due to weakness in the consumer sector and to a lesser extent the computer sector, partially offset by strength in the communications sector.

-- Gross profit was $71.6 million, or 22.1 percent of revenues, down from a gross profit of $92.8 million, or 26.1 percent of revenues in the year-ago quarter, primarily due to lower revenues resulting from lower shipments and lower average selling price (ASP) per wafer. Gross profit was up 5.7 percent sequentially from $67.7 million, or 20.0 percent of revenues in fourth quarter 2006, primarily due to lower cost per wafer resulting from higher production levels supporting higher inventory and due to a less rich production mix, partially offset by lower ASP.

-- Other revenue primarily relates to rental income from SMP (Fab 5) and was $5.6 million compared to $5.0 million in the year-ago quarter.

-- Research and development (R&D) expenses were $37.9 million, an increase of 8.5 percent from the year-ago quarter, primarily due to higher development activities related to the advanced 65nm and 45nm technology nodes.

-- Sales and marketing expenses were $14.2 million, up 5.0 percent compared to $13.6 million in the year-ago quarter, primarily due to higher financial support for pre-contract customer design validation activities. Compared to the previous quarter, sales and marketing expenses were down 7.2 percent from $15.4 million, primarily due to lower payroll-related expenses.

-- General and administrative (G&A) expenses were $9.9 million, an increase of 2.5 percent compared to $9.7 million in the year-ago quarter. Compared to the previous quarter, G&A expenses were down 17.9 percent from $12.1 million, primarily due to lower payroll-related expenses.

-- Equity in income of Chartered's minority-owned joint-venture fab, SMP (Fab 5), was $5.3 million compared to $10.2 million in the year-ago quarter and $8.4 million in the previous quarter, primarily due to lower revenues resulting from lower ASP and lower shipments.

-- Net interest expense was $8.1 million, compared to $14.7 million in the year-ago quarter, primarily due to higher interest capitalization associated with the ramp of Fab 7.

-- The financial position of Chartered's consolidated joint venture fab, Chartered Silicon Partners (CSP or Fab 6), continued to be in a shareholders' deficit in first quarter 2007, and therefore none of the loss of $8.7 million in the first quarter was allocated to the minority interest. At the end of first quarter 2007, CSP's shareholders' deficit was $428.6 million.

-- Net income was $5.3 million, or 1.6 percent of revenues, compared to a net income of $22.0 million, or 6.2 percent of revenues in the year-ago quarter and a net income of $5.1 million or 1.5 percent of revenues in the previous quarter.

-- Basic earnings per American Depositary Share (ADS) and basic earnings per share in first quarter 2007 were $0.01 and $0.00 respectively, compared with basic earnings per ADS and basic earnings per share of $0.08 and $0.01 respectively in first quarter 2006. Diluted earnings per ADS and diluted earnings per share in first quarter 2007 were $0.01 and $0.00 respectively, compared with diluted earnings per ADS and diluted earnings per share of $0.08 and $0.01 respectively in first quarter 2006.

Wafer Shipments and Average Selling Prices (eight-inch equivalent)

-- Shipments in first quarter 2007 were 299.2 thousand wafers, a decrease of 6.0 percent compared to 318.2 thousand wafers in first quarter 2006. Shipments in first quarter 2007 increased by 1.3 percent compared to 295.5 thousand wafers shipped in fourth quarter 2006. Shipments including Chartered's share of SMP were 325.6 thousand wafers, a decrease of 6.8 percent compared to 349.4 thousand wafers in first quarter 2006. Shipments including Chartered's share of SMP in first quarter 2007 increased 0.8 percent compared to 322.9 thousand wafers shipped in fourth quarter 2006.

-- ASP was $1,071 per wafer in first quarter 2007, compared to $1,135 per wafer in fourth quarter 2006, primarily due to lower shipment of 90nm wafers in the first quarter. ASP including Chartered's share of SMP was $1,051 per wafer in first quarter 2007 compared to $1,115 per wafer in fourth quarter 2006.