UNITED STATES--(Marketwire - April 23, 2008) - SINGAPORE -- 4/24/2008 -- STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading
semiconductor test and advanced packaging service provider, today announced
results for the first quarter 2008.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said,
"Revenue for the first quarter of 2008 of $427.2 million increased by 9.4%
over the first quarter of 2007 and declined by 10.4% from prior quarter.
Our first quarter revenue reflected the seasonally softer demand and tight
inventory control by our customers as they became increasingly cautious
about their business outlook because of the global economic uncertainty."
Net income for the first quarter of 2008 grew by 4.7% to $17.9 million or
$0.08 per diluted ADS, compared to net income of $17.0 million or $0.08 per
diluted ADS in the first quarter of 2007.
John Lau, Chief Financial Officer of STATS ChipPAC, said, "We continue to
be disciplined in capital spending in the first quarter of 2008. In the
first quarter of 2008, we spent approximately $55.2 million in capital
expenditures, which were 12.9% of revenue compared to 14.2% of revenue in
the prior quarter. Due to the lower utilization rate from the weaker
demand, higher material cost, and Asian currencies appreciation, gross
margin for the first quarter of 2008 was 17.4% compared to 19.5% in the
prior quarter."
Forward-looking Statements
Certain statements in this release, including statements regarding expected
future financial results and industry growth, 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, general business and economic conditions and the
state of the semiconductor industry; level of competition; demand for
end-use applications products such as communications equipment and personal
computers; decisions by customers to discontinue outsourcing of test and
packaging services; our reliance on a small group of principal customers;
our continued success in technological innovations; pricing pressures,
including declines in average selling prices; availability of financing;
prevailing market conditions; our ability to meet the applicable
requirements for the termination of registration under the Exchange Act;
our ability to meet specific conditions imposed for the continued listing
or delisting of our ordinary shares on the SGX-ST; our substantial level of
indebtedness; potential impairment charges; delays in acquiring or
installing new equipment; adverse tax and other financial consequences if
the South Korean taxing authorities do not agree with our interpretation of
the applicable tax laws; our ability to develop and protect our
intellectual property; rescheduling or canceling of customer orders;
changes in our product mix; intellectual property rights disputes and
litigation; our capacity utilization; limitations imposed by our financing
arrangements which may limit our ability to maintain and grow our business;
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; 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
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 SEC filings, including its annual report
on Form 20-F dated March 7, 2008. We do not intend, and do not assume any
obligation to update any forward-looking statements to reflect subsequent
events or circumstances.
Since the beginning of fiscal 2005, we have employed quarterly and fiscal
year reporting periods. 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 first quarter of 2008 ended on
March 30, 2008, while our first quarter of 2007 ended on April 1, 2007.
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. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP) 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 Singapore Exchange Securities
Trading Limited (SGX-ST). Further information is available at
www.statschippac.com. Information contained in this website does not
constitute a part of this release.
STATS ChipPAC Ltd.
Condensed Consolidated Statements of Operations
(In thousands of U.S. Dollars, except share and per share data)
(Unaudited)
Three Months Ended
--------------------
April 1, March 30,
2007 2008
--------- ---------
Net revenues $ 390,470 $ 427,242
Cost of revenues (312,911) (352,704)
--------- ---------
Gross profit 77,559 74,538
Operating expenses:
Selling, general and administrative 27,999 31,466
Research and development 8,185 10,005
Restructuring expenses - 900
Tender offer charges 6,808 -
--------- ---------
Total operating expenses 42,992 42,371
--------- ---------
Operating income 34,567 32,167
Other income (expenses), net (8,719) (5,307)
--------- ---------
Income before income taxes 25,848 26,860
Income tax expense (7,651) (7,620)
--------- ---------
Income before minority interest 18,197 19,240
Minority interest (1,150) (1,387)
--------- ---------
Net income $ 17,047 $ 17,853
========= =========
Net income per ordinary share:
Basic $ 0.01 $ 0.01
Diluted $ 0.01 $ 0.01
Net income per ADS:
Basic $ 0.08 $ 0.09
Diluted $ 0.08 $ 0.08
Ordinary shares (in thousands) used in per
ordinary share calculation:
Basic 2,009,832 2,052,159
Diluted 2,191,760 2,202,146
ADS (in thousands) used in per ADS calculation:
Basic 200,983 205,216
Diluted 219,176 220,215
Key Ratios and Information:
Gross Margin 19.9% 17.4%
Operating Expenses as a % of Revenue 11.0% 9.9%
Operating Margin 8.9% 7.5%
Depreciation & Amortization, including
Amortization of Debt Issuance Costs $ 61,397 $ 72,263
Capital Expenditures $ 56,786 $ 55,216
Share-based compensation expense included under
SFAS 123(R) were as follows:
Cost of revenues $ 1,488 $ 586
Selling, general and administrative 1,018 515
Research and development 376 139
--------- ---------
$ 2,882 $ 1,240
========= =========
STATS ChipPAC Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)
December 30, March 30,
2007 2008
------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 242,691 $ 262,884
Accounts receivable, net 271,360 264,347
Inventories 83,312 83,505
Other current assets 38,489 43,451
------------- -------------
Total current assets 635,852 654,187
Marketable securities 15,296 15,809
Property, plant and equipment, net 1,276,490 1,271,178
Investment in equity investee 10,350 10,257
Goodwill and intangible assets 588,712 586,586
Other non-current assets * 70,254 66,079
------------- -------------
Total assets $ 2,596,954 $ 2,604,096
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and other payables $ 235,044 $ 226,842
Other current liabilities 128,417 130,377
Short-term debts 240,781 226,348
------------- -------------
Total current liabilities 604,242 583,567
Long-term debts 423,853 421,616
Other non-current liabilities 125,093 116,635
------------- -------------
Total liabilities 1,153,188 1,121,818
------------- -------------
Minority interest 59,797 66,194
------------- -------------
Shareholders' equity 1,383,969 1,416,084
------------- -------------
Total liabilities and shareholders' equity $ 2,596,954 $ 2,604,096
------------- -------------
* Includes $1.7 million and $1.6 million of non-current restricted cash
as of March 30, 2008 and December 30, 2007, respectively.
STATS ChipPAC Ltd.
Other Supplemental Information
(Unaudited)
1Q 2007 4Q 2007 1Q 2008
Net Revenues by Product Line
Packaging - array 58.6% 54.5% 55.0%
Packaging - leaded 16.9% 19.3% 18.7%
Test and other services 24.5% 26.2% 26.3%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Net Revenues by End User Market
Communications 52.5% 54.6% 53.7%
Personal Computers 16.1% 16.2% 16.0%
Consumer, Multi-applications and Others 31.4% 29.2% 30.3%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Net Revenues by Region
United States of America 77.1% 75.8% 75.4%
Europe 2.2% 3.1% 3.4%
Asia 20.7% 21.1% 21.2%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Number of Testers 938 1,051 1,041
Number of Wirebonders 3,808 4,519 4,679
Overall Equipment Utilization Rate 75% 79% 69%
Contact Information: Investor Relations Contact:
Tham Kah Locke
Vice President of Corporate Finance
Tel: (65) 6824 7788
Fax: (65) 6720 7826
email:
Media Contact:
Lisa Lavin
Deputy Director of Corporate Communications
Tel: (208) 939 3104
Fax: (208) 939 4817
email: