Chartered Improves Fourth Quarter Outlook for Revenue and Bottom Line; Company Expects to Turn Gross Margin Positive.Business Editors/High-Tech Writers MILPITAS, Calif.--(BUSINESS WIRE)--Dec. 1, 2003 Today, in its scheduled mid-quarter update, Chartered Semiconductor Manufacturing Chartered Semiconductor Manufacturing SGX: C27 NASDAQ: CHRT (abbreviated CSM) is the world's fourth largest dedicated independent semiconductor foundry, with its headquarters and main operations located in the Woodlands Industrial Park, Kranji Singapore. (Nasdaq: CHRT CHRT Canadian Human Rights Tribunal CHRT Chert (lithological term) CHRT Consolidated Human Resource Technology and SGX-ST: CHARTERED) indicated that it expects higher revenues and an improved net loss for fourth quarter 2003, compared to its original guidance, which was provided on October 23, 2003. For the fourth quarter, Chartered now projects revenues will be up approximately 28 to 31% sequentially, compared to the original guidance of "up 22 to 26%." Revenues including Chartered's share of Silicon Manufacturing Partners (SMP (Symmetric MultiProcessing) A multiprocessing architecture in which multiple CPUs, residing in one cabinet, share the same memory. SMP systems provide scalability. As business increases, additional CPUs can be added to absorb the increased transaction volume. ) are expected to be up 24 to 27% sequentially, compared to the original guidance of "up 17 to 21%." "We now expect that Chartered's fourth quarter revenues including our share of SMP will be approximately $232 million, up 85% compared to the year-ago quarter," said George Thomas George Thomas may refer to:
Chartered now expects the revenue contribution from 0.18-micron and below products to be in the mid-40s in the fourth quarter, compared to 39% in third quarter, and expects revenues from 0.13-micron products to be up approximately 30% sequentially. Based on its current assessment of market and customer trends, the Company's updated guidance for fourth quarter 2003 is as follows:
3Q 2003 4Q 2003 Guidance
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Actual October 23 December 1
Guidance Guidance
Midpoint/Range Midpoint/Range
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Revenues (a) $137.7M $171M, +/- $3M $178M, +/- $2M
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Chartered's share
of SMP revenues $47.6M $50M, +/- $1M $54M, +/- $1M
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Revenues including
Chartered's share of
SMP $185.3M $221M, +/- $4M $232M, +/- $3M
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----------------------------------------------------------------------
ASP (a) $896 $906, +/- $20 $906, +/- $10
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ASP of Chartered's
share of SMP
revenues $1,522 $1,600, +/- $25 $1,600, +/- $15
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ASP including SMP $1,002 $1,005, +/- $25 $1,008, +/- $15
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Net loss (a) (b) $75.9M $50.0M, +/- $5M $44.0M, +/- $4M
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Total unusual items
gain/(loss) $(3.3)M $(3.0)M $(3.0)M
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- Fab 1
restructuring
charge $(3.3)M $(3.0)M $(3.0)M
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Loss per ADS $0.30 $0.20, +/- $0.02 $0.18, +/- $0.02
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Net loss without
unusual items (b) $72.6M $47.0M, +/- $5M $41.0M, +/- $4M
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(a) Determined in accordance with US GAAP
(b) Includes loss impact due to CSP accounting treatment of $23.8M in
3Q 2003 and $16.0M in 4Q 2003
Utilization 59% 66%, +/- 2% points 69%, +/- 2% points
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Chartered plans to release fourth quarter 2003 results on Friday, January 30, 2004, Singapore time, before the Singapore market opens. Chartered's original guidance for fourth quarter 2003 was published in the Company's third-quarter 2003 earnings release which can be found on Chartered's Web site at www.charteredsemi.com, under Investor Relations Investor relations The process by which the corporation communicates with its investors. , Earnings Releases section. About Chartered Chartered Semiconductor Manufacturing, one of the world's top three dedicated semiconductor foundries, is forging a customized approach to outsourced semiconductor manufacturing by building lasting and collaborative partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence of communications, computing computing - computer and consumer markets. In Singapore, Chartered operates five fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facilities and has a sixth fab, which will be developed as a 300mm facility. A company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (Nasdaq: CHRT) and on the Singapore Exchange “SGX” redirects here. For other uses, see SGX (disambiguation). Singapore Exchange Limited SGX: S68 (SGX) is the stock exchange in Singapore. SGX was formed on December 1 1999, following the merger of two established and well-respected financial (SGX-ST: CHARTERED). Chartered's 3,500 employees are based at 11 locations around the world. Information about Chartered can be found at www.charteredsemi.com. Presentation of Information in this News Release The Company's financial results are prepared and determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . In order to give investors additional information, Chartered has also provided information on its total business base revenues and ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). , which included the Company's share of Silicon Manufacturing Partners. Silicon Manufacturing Partners (SMP or Fab 5) is a minority-owned joint-venture company and under US GAAP reporting, SMP revenues are not consolidated into Chartered's revenues. References to revenues or ASP including Chartered's share of SMP in this report are therefore not in accordance with US GAAP. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the provisions of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our outlook for fourth quarter 2003 including projected higher revenues and improved net loss, healthy growth in our market sectors and higher demand from customers, increase in the revenue contribution from 0.18-micron and below products, reduced loss per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. and improved utilization rate reflect our current views with respect to future events and financial performance, and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are: changes in market outlook and trends, specifically in the foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. services and communications and computer segments; pricing pressures, reliance on a small group of customers, rescheduling and canceling of orders; changes in product mix; the rate of semiconductor market recovery; economic conditions in the United States as well as globally; customer demands; unforeseen delays or interruptions in our plans for our fabrication facilities; the performance level of and technology mix in our fabrication facilities; our progress on leading edge products; the successful implementation of our partnership, technology and supply alliances and competition. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our Annual Report on Form 20-F and our First Quarter 2003 Quarterly Report on Form 6-K filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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