SINGAPORE--1/28/2010, UNITED STATES--(Marketwire - January 28, 2010) - 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 2009.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said,
"We delivered another strong quarter with significant improvement in
profitability. Revenue for fourth quarter of 2009 increased by 21.6% over
the corresponding quarter a year ago and by 1.3% over prior quarter to
$394.7 million. Revenue for the full year 2009 of $1,325.7 million
decreased by 20.0% over prior year. Our fourth quarter revenue growth
reflected continued recovery in the semiconductor industry. As a result of
higher savings realized from our cost reduction efforts and richer product
mix, profitability for the quarter significantly improved over
corresponding quarter a year ago and prior quarter."
Net income for fourth quarter of 2009 was $33.8 million or $0.02 of net
income per diluted ordinary share, compared to net loss of $22.1 million or
$0.01 of net loss per diluted ordinary share in the corresponding quarter a
year ago and net income of $25.1 million or $0.01 of net income per diluted
ordinary share in the prior quarter. Net income for the full year 2009,
including restructuring charges of $16.1 million, was $10.1 million or
$0.00 of net income per diluted ordinary share, compared to net income of
$25.7 million or $0.01 of net income per diluted ordinary share in 2008.
John Lau, Chief Financial Officer of STATS ChipPAC, said, "Our gross margin
in the fourth quarter of 2009 was 21.2% compared to 11.6% in the
corresponding quarter a year ago and 20.2% in the prior quarter. Operating
margin for fourth quarter of 2009 was 11.4% of revenue compared to (4.1)%
in the corresponding quarter a year ago and 9.4% in the prior quarter.
Capital spending in the fourth quarter and full year of 2009 was $76.2
million and $159.2 million or 19.3% and 12.0% of revenue compared to $22.4
million and $239.0 million or 6.9% and 14.4%, respectively, in the prior
year. Capital spending increased in the fourth quarter of 2009 as we
invested in additional capacity in wafer packaging and flip chip bumping
ahead of anticipated ramp. We ended the fourth quarter of 2009 with record
cash, cash equivalent and marketable securities of $368.1 million and debt
of $458.0 million, compared to $352.8 million and $473.5 million,
respectively, as of the fourth quarter of 2008."
Forward-looking Statements
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, 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 fourth quarter of 2009 and fiscal year 2009 ended on December
27, 2009, while our fourth quarter of 2008 and fiscal year 2008 ended on
December 28, 2008. 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 28, December 27, December 28, December 27,
2008 2009 2008 2009
---------- ----------- ----------- -----------
Net revenues $ 324,613 $ 394,734 $ 1,658,188 $ 1,325,685
Cost of revenues (286,812) (311,195) (1,383,797) (1,117,308)
---------- ----------- ----------- -----------
Gross profit 37,801 83,539 274,391 208,377
Operating expenses:
Selling, general and
administrative 28,959 24,689 118,337 95,516
Research and
development 8,441 13,918 37,825 43,358
Restructuring charges 13,760 - 19,790 16,072
Equipment impairment - - 21,091 -
Accelerated share-based
compensation - - 1,562 -
---------- ----------- ----------- -----------
Total operating
expenses 51,160 38,607 198,605 154,946
---------- ----------- ----------- -----------
Operating income (loss) (13,359) 44,932 75,786 53,431
Other income
(expenses), net (8,999) (6,438) (26,464) (38,693)
---------- ----------- ----------- -----------
Income (loss) before
income taxes (22,358) 38,494 49,322 14,738
Income tax benefit
(expense) 378 (3,245) (19,172) (3,712)
---------- ----------- ----------- -----------
Net income (loss) (21,980) 35,249 30,150 11,026
Less: Net income
attributable to the
noncontrolling
interest (169) (1,414) (4,448) (973)
---------- ----------- ----------- -----------
Net income (loss)
attributable to
STATS ChipPAC Ltd. $ (22,149) $ 33,835 $ 25,702 $ 10,053
========== =========== =========== ===========
Net income (loss) per
ordinary share
attributable to
STATS ChipPAC Ltd.:
Basic $ (0.01) $ 0.02 $ 0.01 $ 0.00
Diluted $ (0.01) $ 0.02 $ 0.01 $ 0.00
Ordinary shares (in
thousands) used in
per ordinary share
calculation:
Basic 2,202,192 2,202,218 2,143,934 2,202,218
Diluted 2,202,192 2,202,236 2,146,249 2,202,230
Key Ratios and
Information:
Gross Margin 11.6% 21.2% 16.5% 15.7%
Operating Expenses
as a % of Revenue 15.7% 9.8% 11.9% 11.7%
Operating Margin (4.1)% 11.4% 4.6% 4.0%
Depreciation &
Amortization,
including
Amortization of Debt
Issuance Costs $ 68,376 $ 67,169 $ 286,428 $ 268,349
Capital Expenditures $ 22,441 $ 76,223 $ 239,020 $ 159,222
STATS ChipPAC Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)
December 28, December 27,
2008 2009
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 337,230 $ 351,195
Accounts receivable, net 139,520 208,766
Inventories 60,717 61,859
Other current assets 33,841 52,215
----------- -----------
Total current assets 571,308 674,035
Marketable securities 15,587 16,929
Property, plant and equipment, net 1,216,342 1,115,497
Investment in equity investee 9,001 7,743
Goodwill and intangible assets 595,894 591,125
Other non-current assets * 38,931 21,611
----------- -----------
Total assets $ 2,447,063 $ 2,426,940
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and other payables $ 148,931 $ 182,704
Other current liabilities 152,836 103,394
Short-term debts 76,953 224,786
----------- -----------
Total current liabilities 378,720 510,884
Long-term debts 396,500 233,181
Other non-current liabilities 64,144 59,329
----------- -----------
Total liabilities 839,364 803,394
----------- -----------
STATS ChipPAC Ltd. shareholders' equity 1,548,657 1,564,669
----------- -----------
Noncontrolling interest 59,042 58,877
----------- -----------
Total liabilities and equity $ 2,447,063 $ 2,426,940
----------- -----------
* Includes $1.0 million and $0.4 million of non-current restricted cash as
of December 28, 2008 and December 27, 2009, respectively.
STATS ChipPAC Ltd.
Other Supplemental Information
(Unaudited)
4Q 2008 3Q 2009 4Q 2009
Net Revenues by Product Line
Packaging - laminate 55.0% 59.4% 56.7%
Packaging - leaded 18.0% 14.4% 15.2%
Test and other services 27.0% 26.2% 28.1%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Net Revenues by End User Market
Communications 48.2% 48.6% 48.8%
Personal Computers 21.8% 18.2% 17.7%
Consumer, Multi-applications and Others 30.0% 33.2% 33.5%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Net Revenues by Region
United States of America 69.0% 72.4% 65.5%
Europe 8.3% 4.9% 8.3%
Asia 22.7% 22.7% 26.2%
------- ------- -------
100.0% 100.0% 100.0%
======= ======= =======
Number of Testers 977 973 962
Number of Wirebonders 4,684 4,554 4,538
Overall Equipment Utilization Rate 48% 60% 64%
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) 867 9859
email: