Download pdf version Singapore – 10/27/2009, United States – 10/27/2009
– STATS ChipPAC Ltd. (“STATS ChipPAC” or the “Company” – SGX-ST: STATSChP), a leading semiconductor test and advanced packaging service provider, today announced results for third quarter 2009.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said, “We had a good third quarter. Revenue for third quarter of 2009 increased by 21.5% to $389.8 million compared to prior quarter and decreased by 17.5% over the third quarter of 2008. Our third quarter revenue growth reflected continued improvement in the semiconductor industry. As a result of realized savings from our cost reduction efforts, our profitability in the third quarter was significantly better than the prior quarter and the third quarter of 2008.”
Net income for third quarter of 2009 was $25.1 million or $0.01 of net income per diluted ordinary share, compared to net income of $2.2 million or $0.00 per diluted ordinary shares in the prior quarter, and $7.9 million or $0.00 of net income per diluted ordinary share in the third quarter of 2008.
John Lau, Chief Financial Officer of STATS ChipPAC, said, “Our gross margin in third quarter of 2009 was 20.2% compared to 15.1% in the prior quarter, and 18.5% in the third quarter of 2008. Operating margin for third quarter of 2009 was 9.4% of revenue, compared to 4.7% in the prior quarter, and 4.6% in the third quarter of 2008. Capital spending in the third quarter of 2009 was $40.9 million or 10.5% of revenue compared to $97.3 million or 20.6% of revenue in the third quarter of 2008. We ended the third quarter of 2009 with $348.0 million of cash, cash equivalent and marketable securities and $468.2 million of debt, compared to $352.8 million and $473.5 million, respectively, as of the fourth quarter of 2008.”
Certain statements in this release are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, extent of deterioration in general business and economic conditions and the state of the semiconductor industry; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; customer credit risks; possible future application of push-down accounting; pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; our ability to generate cash; potential impairment charges; availability of financing; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of the Company as a passive foreign investment company; our ability to develop and protect our intellectual property; rescheduling or canceling of customer orders; changes in our product mix; our capacity utilization; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; shortages in supply of key components; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; changes in environmental laws and regulations; our ability to meet specific conditions imposed for the continued listing or delisting of our ordinary shares under the Singapore Exchange Securities Trading Limited (“SGX-ST”); exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited (“Temasek”) that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labor union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases; and other risks described from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F dated March 9, 2009. You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.
Our 52-53 week fiscal year ends on the Sunday nearest and prior to December 31. Our fiscal quarters end on a Sunday and are generally thirteen weeks in length. Our third quarter of 2009 ended on September 27, 2009, while our third quarter of 2008 and fiscal year 2008 ended on September 28, 2008 and December 28, 2008, respectively. References to “US GAAP” are to Generally Accepted Accounting Principles as practiced in the United States of America and references to “$” are to the lawful currency of the United States of America.
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.