All currency figures stated in this report are in US dollars.
The financial statement amounts in this report are determined in accordance with US GAAP.
In order to provide investors additional information regarding the Company's financial results as determined in accordance with US GAAP, in this report Chartered also provides information on its total business base revenues, which include the Company's share of Silicon Manufacturing Partners ("Revenues including Chartered's share of SMP"). Silicon Manufacturing Partners (SMP or Fab 5) is a minority-owned joint-venture company and under US GAAP reporting, SMP revenues are not consolidated into Chartered's revenues ("Revenues"). References to revenues including Chartered's share of SMP in this report are therefore not in accordance with US GAAP. To ensure clarity, in Appendix A of this report we have included a reconciliation table which provides comparable data based on revenues determined in accordance with US GAAP, which do not include the Company's share of SMP.
CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US Dollars, except share and per share data)
Determined in accordance with US GAAP
Three Months Ended Six Months Ended
June 30, June 30,
2006 2007 2006 2007
--------- --------- --------- ---------
Net revenue $364,829 $324,292 $720,060 $648,088
Cost of revenue 276,363 264,403 538,816 516,463
--------- --------- --------- ---------
Gross profit 88,466 59,889 181,244 131,625
--------- --------- --------- ---------
Other revenue 5,266 5,590 10,287 11,212
Operating expenses:
Research and development 37,867 38,511 72,746 76,081
Sales and marketing 11,933 13,357 25,504 27,602
General and administrative 9,758 9,680 19,436 19,596
Other operating expense, net 8,395 2,388 7,721 7,170
--------- --------- --------- ---------
Total operating
expenses 67,953 63,936 125,407 130,449
--------- --------- --------- ---------
Equity in income of associated
companies, net 7,947 10,110 18,117 16,207
Other income (loss), net (5,274) 810 (12,613) (241)
Interest expense, net (10,410) (8,695) (25,109) (16,765)
--------- --------- --------- ---------
Income before income taxes 18,042 3,768 46,519 11,589
Income tax expense 5,145 28,477 11,647 30,014
--------- --------- --------- ---------
Net income (loss) 12,897 (24,709) 34,872 (18,425)
--------- --------- --------- ---------
Less: Accretion to redemption
value of convertible
redeemable preference shares 2,358 2,404 4,782 4,785
--------- --------- --------- ---------
Net income (loss) available to
ordinary shareholders $ 10,539 $(27,113) $ 30,090 $(23,210)
========= ========= ========= =========
Net earnings (loss) per ordinary share and ADS
Basic net earnings (loss) per
ordinary share $ 0.00 $ (0.01) $ 0.01 $ (0.01)
Diluted net earnings (loss)
per ordinary share $ 0.00 $ (0.01) $ 0.01 $ (0.01)
Basic net earnings (loss) per
ADS $ 0.04 $ (0.11) $ 0.12 $ (0.09)
Diluted net earnings (loss)
per ADS $ 0.04 $ (0.11) $ 0.12 $ (0.09)
Number of ordinary shares (in millions) used in computing:
Basic net earnings (loss)
per ordinary share 2,527.2 2,538.2 2,520.5 2,537.5
Effect of dilutive
securities 8.5 - 7.5 -
--------- --------- --------- ---------
Diluted net earnings (loss)
per ordinary share 2,535.7 2,538.2 2,528.0 2,537.5
========= ========= ========= =========
Number of ADS (in millions) used in computing:
Basic net earnings (loss)
per ADS 252.7 253.8 252.1 253.8
Effect of dilutive
securities 0.9 - 0.7 -
--------- --------- --------- ---------
Diluted net earnings (loss)
per ADS 253.6 253.8 252.8 253.8
========= ========= ========= =========
