“We are encouraged by the positive signs in our business, as evidenced by the revenue growth into the second quarter. Two additional 65nm customers are expected to enter production ramp in the second quarter, broadening our customer base at the leading edge. We expect the momentum to continue into the latter half of the year as more products enter into production and increase the breadth of applications we serve. Integration of Fab 3E is proceeding according to plan, and in the coming quarters, I believe we will be able to meet some of the additional requirements of existing customers in the mature technologies. Despite these positive signs, like most other businesses, we continue to be cautious about the potential negative impact from a global economic condition that could become more unfavorable going forward. In addition, we also need to deal with the challenges of intense competition and cost pressure in the foundry industry,” said Chia Song Hwee, president & CEO of Chartered.
“As we further ramp our 65nm programs and deliver on 45nm and its derivative processes to our customer base, we will not lose focus on our goal to get our breakeven utilization back on track and improve our profitability. In order to achieve that, we will continue to optimize our product portfolio and pricing, and further improve our productivity and cost structure,” concluded Chia.
Webcast Conference Call Today
Chartered will be discussing its first quarter 2008 and second quarter 2008 outlook on a conference call today, April 25, 2008, at 8:30 a.m. Singapore time (US time 5:30 p.m. PT/8:30 p.m. ET, Thursday, April 24, 2008). A webcast of the conference call will be available to all interested parties on Chartered’s Web site at www.charteredsemi.com, under Investor Relations, or at ir.charteredsemi.com
Mid-Quarter Guidance
The Company provides a guidance update midway through each quarter. For second quarter 2008, the Company anticipates issuing its mid-quarter guidance update, via news release, on Tuesday, June 10, 2008, Singapore time.
APPENDIX A
US GAAP Reconciliation Table
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”). SMP 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, the tables below provide a reconciliation.
|
1Q 2007
Actual |
4Q 2007
Actual |
1Q 2008
Actual |
2Q 2008 Guidance
Midpoint |
|||||
| Revenues (f) | $323.8M | $352.6M | $388.2M | $455M | ||||
| Chartered ’ s share of SMP revenues | $21.5M | $25.2M | $25.9M | $25M | ||||
| Revenues including Chartered ’ s share of SMP | $345.3M | $377.8M | $414.1M | $480M | ||||
| ASP (g) | $1,071 | $899 | $892 | $861 | ||||
| ASP of Chartered ’ s share of SMP revenues (g) | $817 | $781 | $799 | $796 | ||||
| ASP including Chartered ’ s share of SMP (g) | $1,051 | $889 | $885 | $857 | ||||
|
(f) Determined in accordance with US GAAP. |
||||||||
|
(g) Eight-inch equivalent wafers. |
||||||||
|
Breakdown by Market Sector |
||||||||||
|
Revenues (US GAAP) (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| Communications | 34% | 41% | 40% | 47% | 48% | |||||
| Computer | 43% | 30% | 24% | 18% | 16% | |||||
| Consumer | 20% | 26% | 33% | 32% | 33% | |||||
| Other | 3% | 3% | 3% | 3% | 3% | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Chartered ’ s share of SMP revenues (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| Communications | 60% | 54% | 42% | 44% | 39% | |||||
| Computer | 35% | 42% | 53% | 50% | 46% | |||||
| Consumer | 4% | 3% | 4% | 4% | 12% | |||||
| Other | 1% | 1% | 1% | 2% | 3% | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Revenues including Chartered ’ s share of SMP (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| Communications | 36% | 42% | 40% | 46% | 48% | |||||
| Computer | 43% | 31% | 26% | 20% | 18% | |||||
| Consumer | 19% | 24% | 31% | 31% | 31% | |||||
| Other | 2% | 3% | 3% | 3% | 3% | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Breakdown by Region |
||||||||||
|
Revenues (US GAAP) (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| Americas | 80% | 71% | 67% | 70% | 68% | |||||
| Europe | 7% | 9% | 9% | 9% | 9% | |||||
| Asia-Pacific | 12% | 19% | 24% | 21% | 23% | |||||
| Japan | 1% | 1% | - | - | - | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Chartered ’ s share of SMP Revenues (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| Americas | 47% | 30% | 23% | 27% | 27% | |||||
| Europe | 15% | 9% | 7% | 13% | 13% | |||||
| Asia-Pacific | 34% | 56% | 65% | 58% | 56% | |||||
| Japan | 4% | 5% | 5% | 2% | 4% | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Revenues including Chartered ’ s share of SMP (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| Americas | 78% | 67% | 63% | 68% | 66% | |||||
| Europe | 7% | 9% | 9% | 9% | 9% | |||||
| Asia-Pacific | 14% | 22% | 27% | 23% | 25% | |||||
| Japan | 1% | 2% | 1% | - | - | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Breakdown by Technology (micron) |
||||||||||
|
Revenues (US GAAP) (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| 0.065 and below | - | 7% | 13% | 14% | 11% | |||||
| Up to 0.09 | 29% | 12% | 6% | 4% | 7% | |||||
| Up to 0.13 | 32% | 36% | 35% | 34% | 37% | |||||
| Up to 0.15 | - | - | - | - | - | |||||
| Up to 0.18 | 7% | 8% | 10% | 11% | 10% | |||||
| Up to 0.25 | 9% | 12% | 13% | 13% | 15% | |||||
| Up to 0.35 | 13% | 15% | 14% | 15% | 12% | |||||
| Above 0.35 | 10% | 10% | 9% | 9% | 8% | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Chartered ’ s share of SMP Revenues (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| 0.065 and below | - | - | - | - | - | |||||
| Up to 0.09 | - | - | - | - | - | |||||
| Up to 0.13 | - | - | - | - | - | |||||
| Up to 0.15 | 14% | 14% | 3% | 2% | - | |||||
| Up to 0.18 | 66% | 77% | 92% | 86% | 89% | |||||
| Up to 0.25 | 1% | 6% | 2% | 8% | 6% | |||||
| Up to 0.35 | 19% | 3% | 3% | 4% | 5% | |||||
| Above 0.35 | - | - | - | - | - | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
|
Revenues including Chartered ’ s share of SMP (Percentage of Total) |
||||||||||
| 1Q 2007 | 2Q 2007 | 3Q 2007 | 4Q 2007 | 1Q 2008 | ||||||
| 0.065 and below | - | 6% | 12% | 13% | 10% | |||||
| Up to 0.09 | 27% | 11% | 6% | 4% | 7% | |||||
| Up to 0.13 | 30% | 33% | 33% | 31% | 34% | |||||
| Up to 0.15 | 1% | 1% | - | - | - | |||||
| Up to 0.18 | 11% | 14% | 16% | 16% | 15% | |||||
| Up to 0.25 | 8% | 11% | 12% | 13% | 14% | |||||
| Up to 0.35 | 14% | 14% | 13% | 14% | 12% | |||||
| Above 0.35 | 9% | 10% | 8% | 9% | 8% | |||||
| Total | 100% | 100% | 100% | 100% | 100% | |||||
