Chartered Semiconductor Q2 loss reduction is still loss of 112 million yuan

Fourth global wafer foundries - Chartered Semiconductor Manufacturing losses continue to occur in the second quarter of this year, a net loss of $67 million 100 thousand, over the same period last year made a net profit $15 million 300 thousand. Chartered as of June this year, a quarterly net, which is lower than the first quarter loss of $84 million 500 thousand, more than analysts forecast a net loss of $79 million 900 thousand. Last month, Chartered has said that the company's second quarter net would be predicted at the lower end of 78 million to $88 million.

Xie Songhui, President of Chartered Semiconductor, said the cost of opening the seventh quarter of the new wafer plant in the second quarter continued to bring pressure on the gross profit margin, and will continue until the plant to achieve a balance of payments. In the second quarter, the cost of the wafer plant is $7 million 900 thousand, and the plant is expected to make a break even in the fourth quarter of the year. Franchise semiconductor second quarter turnover of $194 million, compared with $181 million 400 thousand in the previous quarter, an increase of 7%, but fell by more than the same period last year, 24.2%.

The second quarter of the plant utilization rate of 65%, lower than the same period last year, the rate of 90%, but higher than the first quarter of this year, up to 59%. Chartered Semiconductor Forecast in the third quarter of this year, there will be a net loss of $47 million, but turnover is expected to grow by more than the second quarter of 46%, which means that the utilization rate of the plant will be increased from 65% to 70%. At the same time, Chartered Semiconductor also said it plans to redeem or repurchase will expire in April 2006, a total of $575 million of convertible notes.

The company will redeem the $450 million of senior notes and private offering of $250 million of senior notes to redeem the notes that are due. Chartered Semiconductor to be sold in private notes, will be converted into ordinary shares. Chartered Semiconductor pointed out that the second half of this year, wafer manufacturing has been on track, is expected to be stronger than the first six months of sales. Chartered Semiconductor expects third quarter revenue of about $283 million, a loss per share will be reduced from $0.27 in the second quarter to $0.19.

Xie Songhui said that the semiconductor industry optimistic about the prospects, will support the operational performance of the second half of the Chartered semiconductor. Generally speaking, the market situation is improving, the stock has returned to normal levels, now in the third and fourth quarter, semiconductor companies usually in the two quarter sales will be higher, according to the prospect of the semiconductor industry, the expected basic factors of concessionary semiconductor will continue to improve. Compared with the second quarter, the company is optimistic about the performance of the consumer electronics industry in the third quarter, but the poor performance of the communications industry, some of which will be offset by lower demand in the computer industry.