“Managing our cash and liquidity position is particularly important given the current conditions of the financial and credit markets. Though we won’t be providing specific capital expenditure guidance for 2009 until January, directionally we expect it to be significantly lower next year, compared to this year. In addition, we are implementing a temporary salary reduction for the employees, including the senior management team, ranging from five percent to 20 percent based on job grades.
“As we look beyond the near-term challenges, in addition to the opportunities we are already pursuing at 65nm and 45/40nm technologies, we are really excited about our high-k metal-gate based 32nm and 28nm technology offerings and the customer excitement that is already gaining momentum around these capabilities. Finally, bringing back Chartered to sustainable profitability continues to be our top priority as we capitalize on these gains,” concluded Chia.
Webcast Conference Call Today
Chartered will be discussing its third quarter 2008 and fourth quarter 2008 outlook on a conference call today, October 31, 2008, at 8:30 a.m. Singapore time (US time 5:30 p.m. PT/8:30 p.m. ET, Thursday, October 30, 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 http://ir.charteredsemi.com.
Mid-Quarter Guidance
The Company provides a guidance update midway through each quarter. For fourth quarter 2008, the Company anticipates issuing its mid-quarter guidance update, via news release, on Friday, December 12, 2008, Singapore time.
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APPENDIX A |
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US GAAP Reconciliation Table |
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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. |
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3Q 2007
Actual |
2Q 2008
Actual |
3Q 2008
Actual |
4Q 2008 Guidance
Midpoint |
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| Revenues (d) | $ | 354.8M | $ | 457.6M | $ | 463.7M | $ | 368M | ||||
| Chartered’s share of SMP revenues | $ | 27.0M | $ | 24.9M | $ | 23.5M | $ | 11M | ||||
| Revenues including Chartered’s share of SMP | $ | 381.8M | $ | 482.5M | $ | 487.2M | $ | 379M | ||||
| ASP (e) | $ | 888 | $ | 864 | $ | 878 | $ | 897 | ||||
| ASP of Chartered’s share of SMP revenues (e) | $ | 790 | $ | 800 | $ | 780 | $ | 825 | ||||
| ASP including Chartered ’ s share of SMP (e) | $ | 881 | $ | 860 | $ | 873 | $ | 895 | ||||
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(d) Determined in accordance with US GAAP.
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(e) Eight-inch equivalent wafers. |
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Breakdown by Market Sector |
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Revenues (US GAAP) (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| Communications | 40 | % | 47 | % | 48 | % | 50 | % | 52 | % | |||||
| Computer | 24 | % | 18 | % | 16 | % | 14 | % | 13 | % | |||||
| Consumer | 33 | % | 32 | % | 33 | % | 31 | % | 31 | % | |||||
| Other | 3 | % | 3 | % | 3 | % | 5 | % | 4 | % | |||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Chartered ’ s share of SMP revenues (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| Communications | 42 | % | 44 | % | 39 | % | 28 | % | 50 | % | |||||
| Computer | 53 | % | 50 | % | 46 | % | 59 | % | 28 | % | |||||
| Consumer | 4 | % | 4 | % | 12 | % | 12 | % | 20 | % | |||||
| Other | 1 | % | 2 | % | 3 | % | 1 | % | 2 | % | |||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Revenues including Chartered ’ s share of SMP (Percentage of Total)
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| Communications | 40 | % | 46 | % | 48 | % | 48 | % | 52 | % | |||||
| Computer | 26 | % | 20 | % | 18 | % | 17 | % | 13 | % | |||||
| Consumer | 31 | % | 31 | % | 31 | % | 30 | % | 31 | % | |||||
| Other | 3 | % | 3 | % | 3 | % | 5 | % | 4 | % | |||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Breakdown by Region |
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Revenues (US GAAP) (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| Americas | 67 | % | 70 | % | 68 | % | 61 | % | 62 | % | |||||
| Europe | 9 | % | 9 | % | 9 | % | 8 | % | 10 | % | |||||
| Asia-Pacific | 24 | % | 21 | % | 23 | % | 22 | % | 19 | % | |||||
| Japan | - | - | - | 9 | % | 9 | % | ||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Chartered ’ s share of SMP Revenues (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| Americas | 23 | % | 27 | % | 27 | % | 17 | % | 20 | % | |||||
| Europe | 7 | % | 13 | % | 13 | % | 13 | % | 12 | % | |||||
| Asia-Pacific | 65 | % | 58 | % | 56 | % | 66 | % | 64 | % | |||||
| Japan | 5 | % | 2 | % | 4 | % | 4 | % | 4 | % | |||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Revenues including Chartered ’ s share of SMP (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| Americas | 63 | % | 68 | % | 66 | % | 58 | % | 60 | % | |||||
| Europe | 9 | % | 9 | % | 9 | % | 9 | % | 10 | % | |||||
| Asia-Pacific | 27 | % | 23 | % | 25 | % | 24 | % | 21 | % | |||||
| Japan | 1 | % | - | - | 9 | % | 9 | % | |||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Breakdown by Technology (micron) |
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Revenues (US GAAP) (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| 0.065 and below | 13 | % | 14 | % | 11 | % | 14 | % | 19 | % | |||||
| Up to 0.09 | 6 | % | 4 | % | 7 | % | 4 | % | 3 | % | |||||
| Up to 0.13 | 35 | % | 34 | % | 37 | % | 34 | % | 36 | % | |||||
| Up to 0.15 | - | - | - | - | - | ||||||||||
| Up to 0.18 | 10 | % | 11 | % | 10 | % | 17 | % | 14 | % | |||||
| Up to 0.25 | 13 | % | 13 | % | 15 | % | 14 | % | 11 | % | |||||
| Up to 0.35 | 14 | % | 15 | % | 12 | % | 10 | % | 10 | % | |||||
| Above 0.35 | 9 | % | 9 | % | 8 | % | 7 | % | 7 | % | |||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Chartered ’ s share of SMP Revenues (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| 0.065 and below | - | - | - | - | - | ||||||||||
| Up to 0.09 | - | - | - | - | - | ||||||||||
| Up to 0.13 | - | - | - | - | - | ||||||||||
| Up to 0.15 | 3 | % | 2 | % | - | - | - | ||||||||
| Up to 0.18 | 92 | % | 86 | % | 89 | % | 99 | % | 95 | % | |||||
| Up to 0.25 | 2 | % | 8 | % | 6 | % | 1 | % | 3 | % | |||||
| Up to 0.35 | 3 | % | 4 | % | 5 | % | - | 2 | % | ||||||
| Above 0.35 | - | - | - | - | - | ||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
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Revenues including Chartered ’ s share of SMP (Percentage of Total) |
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| 3Q 2007 | 4Q 2007 | 1Q 2008 | 2Q 2008 | 3Q 2008 | |||||||||||
| 0.065 and below | 12 | % | 13 | % | 10 | % | 13 | % | 19 | % | |||||
| Up to 0.09 | 6 | % | 4 | % | 7 | % | 4 | % | 3 | % | |||||
| Up to 0.13 | 33 | % | 31 | % | 34 | % | 32 | % | 34 | % | |||||
| Up to 0.15 | - | - | - | - | - | ||||||||||
| Up to 0.18 | 16 | % | 16 | % | 15 | % | 21 | % | 18 | % | |||||
| Up to 0.25 | 12 | % | 13 | % | 14 | % | 14 | % | 10 | % | |||||
| Up to 0.35 | 13 | % | 14 | % | 12 | % | 10 | % | 9 | % | |||||
| Above 0.35 | 8 | % | 9 | % | 8 | % | 6 | % | 7 | % | |||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
