SINGAPORE -- 02/11/2009, UNITED STATES--(Marketwire - February 11, 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 the fourth quarter and full year 2008.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said,
"Revenue for the full year 2008 of $1,658.2 million increased by 0.4% over
prior year and net income for the full year 2008 of $25.7 million decreased
72.6% compared to full year 2007. Fourth quarter 2008 revenue of $324.6
million decreased 31.9% over prior year and 31.3% sequentially over prior
quarter. Our fourth quarter revenue reflected the contraction in demand
for our services as our customers responded to the global economic crisis
with sharp reduction in new build orders and aggressively reduced their
inventories. In response to the severe operating environment, we took
aggressive actions to reduce our operating costs that included reduction in
capital expenditures and our global workforce."
Net income for full year 2008, including $19.8 million in restructuring
charges and $21.1 million in equipment impairment charges, was $25.7
million or $0.01 of net income per diluted ordinary share, compared to net
income of $93.7 million or $0.04 of net income per diluted ordinary share
in 2007. Net loss for fourth quarter of 2008, including $13.8 million in
restructuring charges, was $22.1 million or $0.01 of net loss per diluted
ordinary share, compared to net income of $41.3 million or $0.02 of net
income per diluted ordinary share in the fourth quarter of 2007.
John Lau, Chief Financial Officer of STATS ChipPAC, said, "We ended the
year with $352.8 million of cash, cash equivalent, short and long term
marketable securities and $473.5 million of debt, compared to $258.0
million and $664.6 million respectively in the prior year. Gross margin
for fourth quarter of 2008 was 11.6% compared to 19.5% over prior year, and
18.5% in the prior quarter. Operating margin for fourth quarter of 2008
was (4.1)% of revenue, compared to 11.4% over prior year and 4.6% in the
prior quarter. Fourth quarter 2008 operating margin included restructuring
charges of $13.8 million, or 4.2% of revenue. Capital spending in the
fourth quarter and full year 2008 were $22.4 million and $239.0 million or
6.9% and 14.4% of revenue respectively compared to $67.8 million and $268.8
million or 14.2% and 16.3% respectively in the prior year."
Forward-looking Statements
Certain statements in this release, including statements regarding expected
future financial results, restructuring charges 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; our proposed capital reduction and cash distribution; availability
of financing; prevailing market conditions; our ability to meet the
applicable requirements for the termination of registration under the U.S.
Securities Exchange Act of 1934, as amended; our ability to meet specific
conditions imposed for the continued listing or delisting of our ordinary
shares on the Singapore Exchange Securities Trading Limited ("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. 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.
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 fourth quarter of 2008 ended on
December 28, 2008, while our fourth quarter of 2007 ended on December 30,
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. 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.
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 30, December 28, December 30, December 28,
2007 2008 2007 2008
------------ ------------ ------------ ------------
Net revenues $ 476,676 $ 324,613 $ 1,651,560 $ 1,658,188
Cost of revenues (383,800) (286,812) (1,330,284) (1,383,797)
------------ ------------ ------------ ------------
Gross profit 92,876 37,801 321,276 274,391
Operating
expenses:
Selling, general
and
administrative 29,955 28,959 112,593 118,337
Research and
development 8,742 8,441 34,918 37,825
Restructuring
charges - 13,760 990 19,790
Equipment
impairment - - - 21,091
Accelerated
share-based
compensation - - - 1,562
Tender offer
expenses - - 10,922 -
Impairment of
assets held
for sale - - 1,725 -
------------ ------------ ------------ ------------
Total
operating
expenses 38,697 51,160 161,148 198,605
------------ ------------ ------------ ------------
Operating income
(loss) 54,179 (13,359) 160,128 75,786
Other income
(expenses), net (5,581) (8,999) (31,045) (26,464)
------------ ------------ ------------ ------------
Income (loss)
before income
taxes 48,598 (22,358) 129,083 49,322
Income tax benefit
(expense) (5,336) 378 (29,581) (19,172)
------------ ------------ ------------ ------------
Income (loss)
before minority
interest 43,262 (21,980) 99,502 30,150
Minority interest (1,916) (169) (5,818) (4,448)
------------ ------------ ------------ ------------
Net income (loss) $ 41,346 $ (22,149) $ 93,684 $ 25,702
============ ============ ============ ============
Net income (loss)
per ordinary
share:
Basic $ 0.02 $ (0.01) $ 0.05 $ 0.01
Diluted $ 0.02 $ (0.01) $ 0.04 $ 0.01
Ordinary shares
(in thousands)
used in per
ordinary share
calculation:
Basic 2,047,333 2,202,192 2,032,962 2,143,934
Diluted 2,209,813 2,202,192 2,188,687 2,146,249
Key Ratios and
Information:
Gross Margin 19.5% 11.6% 19.5% 16.5%
Operating Expenses
as a % of Revenue 8.1% 15.7% 9.8% 11.9%
Operating Margin 11.4% (4.1)% 9.7% 4.6%
Depreciation &
Amortization,
including
Amortization of
Debt Issuance
Costs $ 69,946 $ 68,376 $ 256,913 $ 286,428
Capital
Expenditures $ 67,778 $ 22,441 $ 268,754 $ 239,020
Share-based
compensation
expense included
under SFAS 123(R)
were as follows:
Cost of
revenues $ 1,111 $ 98 $ 4,783 $ 905
Selling,
general and
administrative 636 124 3,118 875
Research and
development 192 36 968 228
Accelerated
share-based
compensation - - - 1,562
------------ ------------ ------------ ------------
$ 1,939 $ 258 $ 8,869 $ 3,570
============ ============ ============ ============
STATS ChipPAC Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)
December 30, December 28,
2007 2008
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 242,691 $ 337,230
Accounts receivable, net 271,360 139,520
Inventories 83,312 60,717
Other current assets 38,489 33,841
------------ ------------
Total current assets 635,852 571,308
Marketable securities 15,296 15,587
Property, plant and equipment, net 1,276,490 1,216,342
Investment in equity investee 10,350 9,001
Goodwill and intangible assets 588,712 595,894
Other non-current assets * 70,254 38,931
------------ ------------
Total assets $ 2,596,954 $ 2,447,063
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and other payables $ 235,044 $ 148,931
Other current liabilities 128,417 152,836
Short-term debts 240,781 76,953
------------ ------------
Total current liabilities 604,242 378,720
Long-term debts 423,853 396,500
Other non-current liabilities 125,093 64,144
------------ ------------
Total liabilities 1,153,188 839,364
------------ ------------
Minority interest 59,797 59,042
------------ ------------
Shareholders' equity 1,383,969 1,548,657
------------ ------------
Total liabilities and shareholders' equity $ 2,596,954 $ 2,447,063
------------ ------------
* Includes $1.0 million and $1.6 million of non-current restricted cash
as of December 28, 2008 and December 30, 2007, respectively.
STATS ChipPAC Ltd.
Other Supplemental Information
(Unaudited)
4Q 2007 3Q 2008 4Q 2008
Net Revenues by Product Line
Packaging - laminate 54.5% 58.7% 55.0%
Packaging - leaded 19.3% 17.5% 18.0%
Test and other services 26.2% 23.8% 27.0%
-------- -------- --------
100.0% 100.0% 100.0%
======== ======== ========
Net Revenues by End User Market
Communications 54.6% 51.7% 48.2%
Personal Computers 16.2% 15.8% 21.8%
Consumer, Multi-applications and Others 29.2% 32.5% 30.0%
-------- -------- --------
100.0% 100.0% 100.0%
======== ======== ========
Net Revenues by Region
United States of America 75.8% 71.4% 69.0%
Europe 3.1% 5.2% 8.3%
Asia 21.1% 23.4% 22.7%
-------- -------- --------
100.0% 100.0% 100.0%
======== ======== ========
Number of Testers 1,051 994 977
Number of Wirebonders 4,519 4,760 4,684
Overall Equipment Utilization Rate 79% 70% 48%
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: