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.