UNITED STATES--(Marketwire - January 30, 2008) - SINGAPORE -- 1/31/2008 -- STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading
independent semiconductor test and advanced packaging service provider,
today announced results for the fourth quarter and full year 2007.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said,
"We delivered a strong fourth quarter with record quarterly net income of
$41.3 million bringing the 2007 full year net income to a record high of
$93.7 million. Our revenue for the fourth quarter 2007 grew 15.1%
sequentially to $476.7 million with strong demand across the computing,
communications and consumer end markets, and revenue contribution from our
recently acquired factory in Pathumthani, Thailand. Overall, we made good
progress in 2007 growing our 3D solutions offering, such as stacked flip
chip package for mobile platforms and Fan-in Package on Package, to meet
our customers' continuing demand for increased functional integration,
improved yield and lower cost solutions. We are also expanding our flip
chip offering to provide our customers with full turnkey solution in China.
We invested more in technology, including the establishment of a new
research and development facility focused on advanced wafer integration."
Revenue for the fourth quarter of 2007 increased to $476.7 million, this
represents 14.6% increase over the fourth quarter of 2006 and 15.1%
sequential increase compared to the third quarter of 2007. Net income for
the fourth quarter of 2007 improved 46.2% to $41.3 million or $0.19 per
diluted ADS, compared to net income of $28.3 million or $0.13 per diluted
ADS in the fourth quarter of 2006.
John Lau, Chief Financial Officer of STATS ChipPAC, said, "We significantly
improved our capital efficiency in 2007. In the three months and twelve
months ended December 30, 2007, we spent approximately $67.8 million and
$268.8 million in capital expenditures, which were 14.2% and 16.3% of
revenue, respectively, compared to 13.0% and 21.6% of revenue in the three
and twelve months ended December 31, 2006, respectively. Our operating
margin was 11.4% and 9.7% of revenue in the three and twelve months ended
December 30, 2007, respectively, compared to 11.3% and 9.6% in the three
and twelve months ended December 31, 2006, respectively. This included
$10.9 million expenses incurred in connection with the tender offer by
Singapore Technologies Semiconductors Pte Ltd, a wholly owned subsidiary of
Temasek Holdings (Private) Limited, in 2007. We will continue to emphasize
cost controls, improve efficiencies across our operations and maintain
discipline in capital spending on strategic customer programs."
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 from our
expectations 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; reliance on a small
group of principal customers; continued success in technological
innovations; availability of financing; pricing pressures including
declines in average selling prices; the ability to meet the applicable
requirements for the termination of registration under the U.S. Securities
Exchange Act of 1934, as amended; ability to meet specific conditions
imposed for the continued listing or delisting of the Company's securities
on the SGX-ST; our substantial level of indebtedness; potential impairment
charges; adverse tax and other financial consequences if the South Korean
taxing authorities do not agree with our interpretation of the applicable
tax laws; ability to develop and protect our intellectual property;
rescheduling or canceling of customer orders; changes in products mix;
intellectual property rights disputes and litigation; 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; 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;
significant ownership by Temasek Holdings that may result in conflicting
interests with Temasek Holdings and our affiliates; unsuccessful
acquisitions and investments in other companies and businesses; our ability
to continue to successfully integrate the operations of the former separate
STATS and ChipPAC companies and their employees; labor union problems in
South Korea; uncertainties of conducting business in China; 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 12, 2007. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
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 to December 31. Our fiscal quarters end on a Sunday and are
generally thirteen weeks in length. Our fourth quarter of 2007 ended on
December 30, 2007, while our fourth quarter of 2006 ended on December 31,
2006. 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 Twelve Months Ended
------------------------ ------------------------
December December December December
31, 2006 30, 2007 31, 2006 30, 2007
----------- ----------- ----------- -----------
Net revenues $ 415,982 $ 476,676 $ 1,616,933 $ 1,651,560
Cost of revenues (332,145) (383,800) (1,290,773) (1,330,284)
----------- ----------- ----------- -----------
Gross profit 83,837 92,876 326,160 321,276
Operating expenses:
Selling, general
and
administrative 29,134 29,955 139,466 112,593
Research and
development 7,932 8,742 30,446 34,918
Tender offer
expenses - - - 10,922
Held for sale
asset impairment - - - 1,725
Restructuring
charges - - 1,938 990
----------- ----------- ----------- -----------
Total operating
expenses 37,066 38,697 171,850 161,148
----------- ----------- ----------- -----------
Operating income 46,771 54,179 154,310 160,128
Other income
(expenses), net (10,920) (5,581) (41,733) (31,045)
----------- ----------- ----------- -----------
Income before income
taxes 35,851 48,598 112,577 129,083
Income tax expense (5,493) (5,336) (25,759) (29,581)
----------- ----------- ----------- -----------
Income before minority
interest 30,358 43,262 86,818 99,502
Minority interest (2,083) (1,916) (10,010) (5,818)
----------- ----------- ----------- -----------
Net income $ 28,275 $ 41,346 $ 76,808 $ 93,684
=========== =========== =========== ===========
Net income per
ordinary share:
Basic $ 0.01 $ 0.02 $ 0.04 $ 0.05
Diluted $ 0.01 $ 0.02 $ 0.04 $ 0.04
Net income per ADS:
Basic $ 0.14 $ 0.20 $ 0.39 $ 0.46
Diluted $ 0.13 $ 0.19 $ 0.37 $ 0.44
Ordinary shares (in
thousands) used in
per ordinary share
calculation:
Basic 2,000,590 2,047,333 1,991,110 2,032,962
Diluted 2,169,571 2,209,813 2,161,545 2,188,687
ADS (in thousands) used
in per ADS
calculation:
Basic 200,059 204,733 199,111 203,296
Diluted 216,957 220,981 216,154 218,869
Key Ratios and
Information:
Gross Margin 20.2% 19.5% 20.2% 19.5%
Operating Expenses as a
% of Revenue 8.9% 8.1% 10.6% 9.8%
Operating Margin 11.3% 11.4% 9.6% 9.7%
Depreciation &
Amortization,
including
Amortization
of Debt
Issuance Costs $ 64,538 $ 69,946 $ 268,689 $ 256,913
Capital
Expenditures $ 54,019 $ 67,778 $ 348,495 $ 268,754
Share-based
compensation expense
included under
SFAS 123(R) were as
follows:
Cost of revenues $ 1,435 $ 1,111 $ 5,965 $ 4,783
Selling, general
and
administrative 1,259 636 6,143 3,118
Research and
development 332 192 1,580 968
----------- ----------- ----------- -----------
$ 3,026 $ 1,939 $ 13,688 $ 8,869
=========== =========== =========== ===========
STATS ChipPAC Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)
December 31, December 30,
2006 2007
============== ==============
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 216,583 $ 242,691
Accounts receivable, net 243,779 271,360
Inventories 111,614 83,312
Other current assets 27,845 38,489
============== ==============
Total current assets 599,821 635,852
Marketable securities 15,358 15,296
Property, plant and equipment, net 1,192,830 1,276,490
Investment in equity investee 10,292 10,350
Goodwill and intangible assets 555,358 588,712
Other non-current assets * 84,621 70,254
============== ==============
Total assets $ 2,458,280 $ 2,596,954
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and other payables $ 201,999 $ 235,044
Other current liabilities 104,482 128,417
Short-term debts 65,373 240,781
============== ==============
Total current liabilities 371,854 604,242
Long-term debts 697,523 423,853
Other non-current liabilities 84,807 125,093
============== ==============
Total liabilities 1,154,184 1,153,188
============== ==============
Minority interest 57,946 59,797
============== ==============
Shareholders' equity 1,246,150 1,383,969
============== ==============
Total liabilities and shareholders'
equity $ 2,458,280 $ 2,596,954
============== ==============
* Includes $1.6 million and $1.0 million of non-current restricted cash
as of December 30, 2007 and December 31, 2006, respectively.
STATS ChipPAC Ltd.
Other Supplemental Information
(Unaudited)
4Q 2006 Q3 2007 Q4 2007
Net Revenues by Product Line
Packaging - array 57.8% 56.4% 54.5%
Packaging - leaded 17.1% 18.5% 19.3%
Test and other services 25.1% 25.1% 26.2%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Net Revenues by End User Market
Communications 57.0% 52.4% 54.6%
Personal Computers 17.5% 14.6% 16.2%
Consumer, Multi-applications and Others 25.5% 33.0% 29.2%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Net Revenues by Region
United States of America 74.3% 73.9% 75.8%
Europe 3.2% 3.3% 3.1%
Asia 22.5% 22.8% 21.1%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Number of Testers 985 891 1,051
Number of Wirebonders 3,812 3,933 4,519
Overall Equipment Utilization Rate 75% 78% 79%
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: