Chartered Reports Fourth Quarter and Year 2003 Results; First Quarter 2004 Revenues Expected to Grow Over 20%.Business Editors/High-Tech Writers MILPITAS Milpitas (mĭl'pē`təs), city (1990 pop. 50,686), Santa Clara co., W Calif., a suburb of San Jose, southeast of San Francisco; inc. 1954. Manufactures include computers and paint. , Calif.--(BUSINESS WIRE)--Jan. 29, 2004 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 ) -- Revenues of $182.8 million, up 32.7% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen compared to guidance of up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 28% to 31% sequentially -- Loss per ADS of $0.17 compared to loss of $0.45 in 4Q 2002, and guidance of $0.16 to $0.20 loss -- Loss per ordinary share of $0.02 compared to loss of $0.05 in 4Q 2002 -- 1Q 2004 net loss expected to be approximately $9 million (approximately $7 million net income when normalized to exclude the impact of Fab 1 restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and CSP (1) (Certified Systems Professional) An earlier award for successful completion of an ICCP examination in systems development. See ICCP. (2) (Commerce Service P accounting treatment) Chartered Semiconductor Manufacturing (Nasdaq:CHRT)(SGX-ST:CHARTERED), one of the world's top three dedicated semiconductor foundries, today announced its results for fourth quarter and year ended December December: see month. 31, 2003. "Our revenue growth rate far outpaced that of the industry in the fourth quarter, and we expect the same in the first quarter of 2004," said Chia Song Hwee, president & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Chartered. "While our growth is partly due to the industry recovery, which accelerated in the second half of 2003, we believe we are beginning to see results from the strategy we put in place in late 2002 and communicated in early 2003. "Our customer engagements have broadened significantly, our revenues from advanced technology products are up sharply, and we are realizing solid gains against our objective of making a step-function improvement in the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of our mature capacity. In advanced technologies, total revenues were up 120 percent from the year-ago quarter, and within that, revenues of our 0.13-micron offering have now reached 10 percent of total, up from one percent of total in the year-ago quarter. Shipments of mature technology wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. are up 85 percent from the year-ago quarter, benefiting significantly from both new customers and new products," Chia said. Summary of Fourth Quarter 2003 Performance -- Revenues were $182.8 million, up 32.7% compared to third quarter 2003. 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. ) were $237.2 million, up 28.0% from $185.3 million in the previous quarter, due to increases in all major market sectors with the largest contribution coming from the communications sector. Compared to fourth quarter 2002, revenues were up 69.3% from $107.9 million. Revenues including Chartered's share of SMP were up 89.3% from $125.3 million in the year-ago quarter, driven primarily by the communications sector and to a lesser extent the consumer and computer sectors. The largest percentage increase occurred in the consumer sector, which increased almost four-fold Adj. 1. four-fold - having four units or components; "quadruple rhythm has four beats per measure"; "quadruplex wire" quadruple, quadruplex, quadruplicate, fourfold from the year-ago quarter. -- Gross profit was $11.1 million, or 6.1% of revenues, an improvement from a gross loss of $53.9 million, or negative 49.9% of revenues in the year-ago quarter, primarily due to significantly higher revenues and cost reductions. Gross profit improved sequentially by $32.8 million from a loss of $21.7 million, or negative 15.8% of revenues in third quarter 2003, primarily due to higher revenues. -- Research and development (R&D) expenses were $31.1 million, an increase of 11.0% from the year-ago quarter, primarily due to increased investments to accelerate the Company's technology roadmap A roadmap may refer to:
The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of processes, enabling systems-level integration. Beginning in first quarter 2003, R&D expenses include Chartered's share of expenses related to the IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) joint-development agreement, announced in November November: see month. 2002. -- Sales and marketing expenses were $9.8 million, unchanged from the year-ago quarter, and an increase of 19.1% from $8.3 million in the previous quarter. The sequential One after the other in some consecutive order such as by name or number. increase was primarily due to a higher level of prototyping (1) Creating a demo of a new system. Prototyping is essential for clarifying information requirements. The design of a system (functional specs) must be finalized before the system can be built. activity. -- General and administrative (G&A) expenses were $10.7 million, an increase of 32.0% compared to $8.1 million in the year-ago quarter. The fourth quarter 2002 expense benefited from employee leave clearance CLEARANCE, com. law. The name of a certificate given by the collector of a port, in which is stated the master or commander (naming him) of a ship or vessel named and described, bound for a port, named, and having on board goods described, has entered and cleared his ship or vessel and the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of an employee retirement program. -- Other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $11.5 million, which included two items: -- A fixed asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $9.0 million related to certain pieces of equipment that have been reclassified as held for sale, as part of Chartered's fab capacity rationalization rationalization, in psychology: see defense mechanism. -- A charge of $2.5 million related to Fab 1 restructuring -- Equity in income (loss) of our minority-owned joint-venture fab, SMP (Fab 5), was an income of $14.7 million compared to a loss of $11.5 million in the year-ago quarter, primarily due to significantly higher revenues. Equity in income of SMP increased 67.0% from an income of $8.8 million in the previous quarter, also primarily due to higher revenues. -- Net interest expense was $7.9 million, an increase of 68.8% from $4.7 million in the year-ago quarter, primarily due to lower interest income resulting from lower interest rates. -- None of the losses in our consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: joint-venture fab, Chartered Silicon Partners (CSP or Fab 6), were allocated to the minority interest in fourth quarter 2003, compared to $17.6 million in the year-ago quarter. CSP remained in a negative net worth position in fourth quarter 2003; therefore, Chartered continued to recognize 100% of the joint venture's results, which were a loss of $35.5 million in the quarter. At the end of the quarter, CSP's net worth was negative $151.2 million. -- Net loss was $43.2 million, or negative 23.6% of revenues, compared to a net loss of $108.7 million, or negative 100.7% of revenues, in the year-ago quarter. -- Loss per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (ADS) and loss per share in fourth quarter 2003 were $0.17 and $0.02 respectively, compared with a loss per ADS and loss per share of $0.45 and $0.05 respectively in fourth quarter 2002. Average ADS count and ordinary share count increased by 9.7 million and 96.6 million respectively, primarily due to the eight-for-ten rights offering completed in October October: see month. 2002. Summary of Year 2003 Performance -- Revenues were $551.9 million, up 22.9% compared to $449.2 million in 2002. Revenues including Chartered's share of SMP were $727.7 million, up 50.1% from $484.8 million a year ago, driven primarily by the communications sector and to a lesser extent the consumer and computer sectors. -- Gross loss was $96.4 million, or negative 17.5% of revenues, an improvement from a loss of $179.5 million, or negative 40.0% of revenues in 2002, primarily due to higher revenues and lower depreciation. -- R&D expenses were $124.5 million, an increase of 30.7% from $95.3 million in 2002, primarily due to increased investments to accelerate the Company's technology roadmap The context of product management The existence of product managers in the product software industry indicates that software is becoming more and more commercialized as a standard product. which provides customers a breadth of processes, enabling systems-level integration. Beginning in first quarter 2003, R&D expenses include Chartered's share of expenses related to the IBM joint-development agreement, announced in November 2002. -- Sales and marketing expenses were $38.3 million, a decline of 7.1% from $41.2 million in 2002, primarily due to lower financial support for customer prototyping activities. -- G&A expenses were $35.9 million, a decline of 16.7% compared to $43.1 million in 2002. The reduction was primarily due to a $4.9 million gain resulting from equipment disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of in second quarter 2003. Excluding this gain, the decline in 2003 was 5.4%. -- Other operating expenses were a gain of $6.1 million, which included three items: -- Included in net loss was a gain of $28.7 million associated with the conclusion of the Company's Economic Value Added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. (EVA Eva to marry winner of singing contest. [Ger. Opera: Wagner, Meistersinger, Westerman, 225–228] See : Prize 1. Eva - A toy ALGOL-like language used in "Formal Specification of Programming Languages: A Panoramic Primer", F.G. ) employee bonus plan. Of this amount, $27.5 million was recorded in the "other operating expenses" line. -- Included in net loss was a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $14.1 million associated with the phase out of Fab 1, $12.4 million of which was recorded in the "other operating expenses" line. -- A fixed asset impairment of $9.0 million related to certain pieces of equipment that have been reclassified as held for sale, as part of Chartered's fab capacity rationalization. -- Equity in income (loss) of our minority-owned joint-venture fab, SMP (Fab 5), was an income of $23.2 million compared to a loss of $84.8 million in 2002, primarily due to significantly higher revenues. -- Minority interest in loss of our joint-venture fab, Chartered Silicon Partners (CSP or Fab 6), was $9.5 million compared to $55.6 million in 2002. Due to cumulative losses, CSP's net worth became negative in first quarter 2003, triggering a consolidation accounting requirement resulting in Chartered effectively recognizing 100% of CSP's losses (and profits) until such time as CSP's net worth becomes positive. At the end of the year, CSP's net worth was negative $151.2 million. -- Net loss was $284.8 million, or negative 51.6% of revenues, compared to a net loss of $417.1 million, or negative 92.8% of revenues in 2002. -- Loss per American Depositary Share (ADS) and loss per share in 2003 were $1.14 and $0.11 respectively, compared with a loss per ADS and loss per share of $2.32 and $0.23 respectively in 2002. Average ADS count and ordinary share count increased by 70.3 million and 703.2 million respectively, primarily due to the eight-for-ten rights offering completed in October 2002. Wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. Shipments and Average Selling Prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. -- Shipments in fourth quarter 2003 were 200.6 thousand wafers (eight-inch equivalent), an increase of 91.2% compared to 104.9 thousand wafers (eight-inch equivalent) in fourth quarter 2002. Shipments in fourth quarter 2003 increased by 30.5% compared to 153.7 thousand wafers (eight-inch equivalent) shipped in third quarter 2003. Shipments including Chartered's share of SMP were 235.0 thousand wafers (eight-inch equivalent), an increase of 97.6% compared to 119.0 thousand (eight-inch equivalent) in fourth quarter 2002. Shipments including Chartered's share of SMP in fourth quarter 2003 increased by 27.0% compared to 185.0 thousand wafers (eight-inch equivalent) shipped in third quarter 2003. -- Shipments in 2003 were 606.0 thousand (eight-inch equivalent), an increase of 45.3% compared to 417.0 thousand wafers (eight-inch equivalent) shipped in 2002. Shipments including Chartered's share of SMP were 722.2 thousand wafers (eight-inch equivalent), an increase of 62.2% compared to 445.2 thousand (eight-inch equivalent) in 2002. -- 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). was $911 in fourth quarter 2003, an increase of 1.7% from $896 per wafer in third quarter 2003, primarily due to richer mix. ASP including Chartered's share of SMP was $1,010 per wafer in fourth quarter 2003 compared to $1,002 per wafer in third quarter 2003. -- ASP was $911 in 2003, a decrease of 15.4% compared to $1,077 per wafer in 2002, primarily due to customer mix and pricing pressures, partially offset by substantially higher shipments of advanced technology products. ASP including Chartered's share of SMP was $1,008 per wafer in 2003 compared to $1,089 per wafer in 2002. Capacity and Utilization -- Capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. in fourth quarter 2003 was 71% compared to 39% in the year-ago quarter, and 59% in third quarter 2003. Capacity utilization was 58% in 2003 compared to 37% in 2002. The capacity level in fourth quarter 2003 was up approximately 6% sequentially. For full year 2003, as a result of the company's capacity revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. program announced in February February: see month. 2003, advanced capacity (0.18-micron and below) increased 71%; however, total capacity increased only 5%.
Utilization Table
Data including Chartered's share of SMP
Thousand 8" equivalent 4Q 2002 1Q 2003 2Q 2003 3Q 2003 4Q 2003
----------------------- -------- --------- --------- ------- --------
Total wafers shipped 118.9 135.4 166.8 185.0 235.0
----------------------- -------- --------- --------- ------- --------
Total capacity 301.1 297.8 305.4 313.7 332.8
----------------------- -------- --------- --------- ------- --------
Utilization 39% 45% 55% 59% 71%
----------------------- -------- --------- --------- ------- --------
Capacity by Fab
(Thousand 8" 4Q 1Q 2Q 3Q 4Q Est 1Q
equivalent wafers) 2002 2003 2003 2003 2003 2004
---------------------- ------ ------ ------ ------ ------ ------
Fab 1 44.5 44.3 44.3 44.6 45.5 45.2
---------------------- ------ ------ ------ ------ ------ ------
Fab 2 128.8 126.0 127.4 128.8 131.2 129.8
---------------------- ------ ------ ------ ------ ------ ------
Fab 3 64.4 62.9 63.7 56.7 60.2 61.6
---------------------- ------ ------ ------ ------ ------ ------
Fab 5 (CHRT's share) 26.7 26.1 27.0 33.6 34.4 34.4
---------------------- ------ ------ ------ ------ ------ ------
Fab 6 36.7 38.5 43.0 50.0 61.5 60.8
---------------------- ------ ------ ------ ------ ------ ------
Total 301.1 297.8 305.4 313.7 332.8 331.8
---------------------- ------ ------ ------ ------ ------ ------
Market Dynamics The following business statistics tables provide information on revenues including Chartered's share of SMP by market sector, region and technology.
Breakdown by Market Sector
Revenues including Chartered's share of SMP Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
--------------------------- ----- ----- ----- ----- -----
Communications 47% 43% 49% 49% 47%
--------------------------- ----- ----- ----- ----- -----
Computer 40% 43% 34% 33% 32%
--------------------------- ----- ----- ----- ----- -----
Consumer 9% 10% 14% 15% 18%
--------------------------- ----- ----- ----- ----- -----
Other 4% 4% 3% 3% 3%
--------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
--------------------------- ----- ----- ----- ----- -----
Breakdown by Region
Revenues including Chartered's share of SMP Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
Americas 62% 57% 59% 62% 61%
------------------------------- ----- ----- ----- ----- -----
Europe 16% 25% 21% 18% 16%
------------------------------- ----- ----- ----- ----- -----
Asia-Pacific 15% 13% 15% 15% 19%
------------------------------- ----- ----- ----- ----- -----
Japan 7% 5% 5% 5% 4%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Breakdown by Technology (micron)
Revenues including Chartered's share of SMP Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
0.13 and below 1% 1% 6% 8% 10%
------------------------------- ----- ----- ----- ----- -----
Up to 0.15 2% 9% 8% 15% 16%
------------------------------- ----- ----- ----- ----- -----
Up to 0.18 36% 33% 22% 16% 20%
------------------------------- ----- ----- ----- ----- -----
Up to 0.25 19% 15% 17% 20% 16%
------------------------------- ----- ----- ----- ----- -----
Up to 0.35 24% 23% 25% 23% 20%
------------------------------- ----- ----- ----- ----- -----
Above 0.35 18% 19% 22% 18% 18%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
------------------------------- ----- ----- ----- ----- -----
0.18 and below 39% 43% 36% 39% 46%
------------------------------- ----- ----- ----- ----- -----
Chartered's top five customers in 2003, in order of revenue significance (excluding revenues from SMP), were: Broadcom Broadcom Corporation is an American supplier of integrated circuits (ICs) for broadband communications. Founded in 1991 by Henry Samueli (chairman and CTO) and Henry Nicholas, it became a public company in 1998 and now employs over 5,000 people worldwide. , Agilent (Agilent Technologies, Santa Clara, CA, www.agilent.com) The test and measurement subsidiary of HP. In 1999, HP split off the division that started the company into an independent subsidiary named Agilent Technologies. At the time, the $2. , Mediatek MediaTek Inc (Chinese: 聯發科技, usually referred to as MTK) is a fabless semiconductor company located in Taiwan. It began as a supplier of integrated circuits for digital media and storage, especially DVD. , Motorola (Motorola, Inc., Schaumburg, IL, www.motorola.com) A leading manufacturer of semiconductor devices, electronics, telecommunications and satellite systems. Founded in Chicago in 1928 by Paul V. , and ST Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. . Collectively, our top five customers accounted for approximately 41% of total revenues in 2003, compared with 53% in the previous year. Broadcom was the only customer that exceeded 10% of total revenues in 2003. Year 2003 Highlights and Events Technology Chartered took a number of steps to further strengthen its technology position toward industry leadership. Chartered, IBM and Infineon announced a multi-year joint development agreement to accelerate the move to 65-nanometer (nm) semiconductor manufacturing process technology. Under this agreement, Chartered, IBM and Infineon plan to jointly develop a common advanced 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. process at 65nm, as well as variants tuned for high performance and low power. This is an extension of the Chartered-IBM joint development agreement announced in November 2002. In January January: see month. 2004, Chartered and IBM announced another agreement under which Chartered will manufacture selected 90nm SOI (Silicon On Insulator) A chip architecture that increases transistor switching speed by reducing capacitance (build-up of electrical charges in the transistor's elements), and thus reducing the discharge time. The power requirement is also reduced in some designs. products for IBM in volume-driven, high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" solutions. These agreements follow the joint development agreements signed by IBM and Chartered in November 2002 and have resulted in a foundry platform solution supported by both companies. Under the initial agreements, the two companies are jointly developing 90nm and 65nm bulk CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. processes for foundry chip production on 300-millimeter (mm) silicon wafers and are engaged in a reciprocal Bilateral; two-sided; mutual; interchanged. Reciprocal obligations are duties owed by one individual to another and vice versa. A reciprocal contract is one in which the parties enter into mutual agreements. manufacturing arrangement that provides dual-sourcing flexibility for their customers. Together, the two companies are providing a common 90nm design manual and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. as well as common spice spice, aromatic vegetable product used as a flavoring or condiment. The term was formerly applied also to pungent or aromatic foods (e.g., gingerbread and currants), to ingredients of incense or perfume (e.g., myrrh), and to embalming agents. models for the jointly developed process platform. Customers Chartered entered into several mature technology sourcing engagements during the year, in line with its strategy to increase utilization of mature capacity and thereby accelerate return to profitability. These include niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the technology engagements with Toppan of Japan for sole-source volume production of its dual-band radio frequency identification See RFID. (RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. ) chips and two unnamed customers for display drivers. Legerity also announced it completed qualification for production at Chartered of its flagship This article is about the lead ship, store, or product of a group. For other uses, see Flagship (disambiguation). A flagship is the ship used by the commanding officer of a group of naval ships. proprietary high-voltage adj. 1. having, operating on, or powered by high voltage; as, a high-voltage generator; a high-voltage line s>. 2. same as high-powered. Adj. 1. process called HV7. In addition, volume manufacturing engagements were signed with Infineon of Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). for manufacture of power MOSFETs A Power MOSFET is a specific type of Metal Oxide Semiconductor Field-Effect Transistor (MOSFET) designed to handle large powers. Compared to the other power semiconductor devices (IGBT, Thyristor... , and with an unnamed leading communications semiconductor company in 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. . Chartered also made further progress into the China market, including collaboration Working together on a project. See collaborative software. on IC manufacturing for telecom switches and routers with ZTE ZTE Zalaegerszegi Torna Egylet (Hungarian sports club) Corporation and an announcement with Fudan Microelectronics on plans to increase production volume of smart cards Example of widely used contactless smart cards are Hong Kong's Octopus card, Paris' Calypso/Navigo card and Lisbon' LisboaViva card, which predate the ISO/IEC 14443 standard. The following tables list smart cards used for public transportation and other electronic purse applications. and digital power meter meter, unit of measure meter, abbr. m, fundamental unit of length in the metric system. The meter was originally defined as 1/10,000,000 of the distance between the equator and either pole; however, the original survey was inaccurate and the meter was later products. EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. / IP Chartered continued to strengthen its EDA and IP design solutions by strengthening and extending its alliance programs, focused on enabling more first-source wins. Announcements made in 2003 related to broadening broad·en tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad alliances with Virage Logic, Mentor Graphics Mentor Graphics, Inc (NASDAQ: MENT) is a US-based multinational corporation dealing in electronic design automation (EDA) for electrical engineering and electronics, as of 2004, ranked third in the EDA industry it helped create. and the Virtual Component Exchange (VCX VCX Virtual Component Exchange VCX Voice Core Exchange VCX Virtual Channel Crossconnect ) and expanding Chartered's design services alliance program with new additions to its global network: Accent in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ; QThink and Time to
Market in the United States; HOYA Hoya, city, JapanHoya (hō`yä), city (1990 pop. 95,148), Tokyo Metropolis, E central Honshu, Japan, on the Shakoji River. It is a residential suburb of Tokyo and an agricultural center where raw silk is produced. and Toppan in Japan; and Uleadtek in Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan . Chartered also announced formation of the NanoAccess Alliance, under which Chartered and more than 15 leading third-party companies are pre-qualifying 90nm design solutions, based upon the Chartered-IBM process platform, for earlier silicon validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. and lower risk production of leading-edge integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. and system-on-chip See SoC. devices. Review and Outlook "A lot has changed since the first quarter of 2003 when we detailed our strategy to enhance growth and improve Chartered's cost structure," said George Thomas George Thomas may refer to:
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate of over $200 million. Now, in the first quarter of this year, we are expecting a gross profit of approximately $35 million and are expecting to be positive at the net income level, when normalized for Fab 1 restructuring expense and CSP accounting treatment. Though we are pleased with the progress made over the past twelve months, we still have more work to do in order to further grow revenues and to reduce Chartered's break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. . "Advanced technology products have been the largest contributor to revenue growth over the last year, and we expect that to continue in 2004, as customer recognition of our improved competitive position broadens. In order to support the expected growth in customer demand for our 0.13-micron and 90nm offerings, our 2004 capital expenditure plan has been set at $700 million and it includes equipping e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. Fab 6 to its full capacity and installing a 300mm pilot line in Fab 7," Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs said. The outlook for the first quarter 2004 is as follows:
4Q 2003 1Q 2004 Guidance
--------- ------------------------------
Actual Midpoint and range Sequential
change
---------------------------- --------- ------------------- ----------
Up 21%
Revenues $182.8M $224.0M, +/- $3M to 24%
---------------------------- --------- ------------------- ----------
Revenues including Up 16%
Chartered's share of SMP $237.2M $280.0M, +/- $4M to 20%
---------------------------- --------- ------------------- ----------
Up 4%
ASP $911 $966, +/- $20 to 8%
---------------------------- --------- ------------------- ----------
ASP including Chartered's Up 1%
share of SMP $1,010 $1,045, +/- $25 to 6%
---------------------------- --------- ------------------- ----------
Utilization 71% 81%, +/- 2% pts -
---------------------------- --------- ------------------- ----------
Gross Profit $11.1M $35.5M, +/- $4M -
---------------------------- --------- ------------------- ----------
Net loss $(43.2)M $(8.6)M, +/- $5M -
---------------------------- --------- ------------------- ----------
Loss per ADS $(0.17) $(0.03), +/- $0.02 -
---------------------------- --------- ------------------- ----------
---------------------------- --------- ------------------- ----------
Net loss without
unusual items $(40.7)M $(5.6)M, +/- $5M -
---------------------------- --------- ------------------- ----------
---------------------------- --------- ------------------- ----------
Impact of CSP accounting
treatment $(17.4)M $(13.0)M -
---------------------------- --------- ------------------- ----------
Normalized net (loss) profit $(23.3)M $7.4M +/- $5M -
---------------------------- --------- ------------------- ----------
Guidance comments for first quarter 2004: -- Advanced technologies: In the first quarter, revenue contribution from 0.18-micron and below products is expected to be in the mid 40s percentage, and 0.13-micron revenues are expected to grow considerably faster than overall revenues. -- Fab 1: As announced in first quarter of 2003, Fab 1 will cease operation this quarter, having successfully transitioned on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" business to Fab 2. Annualized cost savings from this action is projected to be $25 million, commencing in second quarter of 2004. Chartered's first-quarter revenue is expected to include a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. benefit of approximately $10 million due to end-of-life end-of-life Cardiac pacing noun The point at which a pacemaker signals need for replacement, as its battery is nearing depletion Medtalk adjective and safety stock purchases by Fab 1 customers. Guidance comments for year 2004: -- R&D expenditures: approximately $130 million, compared to $125 million in 2003. -- Capital expenditures: approximately $700 million, significantly higher in the first half than the second half of the year. The majority will be for Fab 7, and the balance primarily for Fab 6. 2003 capital expenditures were $221 million. Capital expenditures are cash flow based. -- Depreciation and amortization: approximately $455 million, compared to $439 million in 2003. -- Wafer capacity: approximately 1,225 thousand wafers (eight-inch equivalent), a reduction of 2% from 2003. Advanced capacity is planned to increase approximately 34% while, primarily due to the shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of Fab 1, mature capacity is expected to decrease approximately 14%. CEO Closing Comments "Increasing customer acceptance of the Chartered-IBM advanced technology platform, coupled with the market gains we have made in our 0.13-micron offering, are allowing Chartered to compete and win business opportunities never before open to the Company," said Chia. "Of particular note is the 90nm SOI sourcing agreement recently announced between ourselves and IBM. This not only puts Chartered in the position of building arguably ar·gu·a·ble adj. 1. Open to argument: an arguable question, still unresolved. 2. That can be argued plausibly; defensible in argument: three arguable points of law. the most advanced technology product in the world, but we believe it will also allow Fab 7 to reach cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. critical mass more quickly. The Chartered team is enthused and motivated mo·ti·vate tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates To provide with an incentive; move to action; impel. mo by the market opportunity opening up for the Company." Webcast Conference Call Today Chartered will be discussing its fourth quarter 2003 results and first quarter 2004 outlook on a conference call today, January 30, 2004, at 8:30 a.m. Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). time (US time 4:30 p.m. PT/7:30 p.m. ET, January 29, 2004). A webcast of the conference call will be available to all interested parties on Chartered's Web site at www.charteredsemi.com, under Investor Relations Investor relations The process by which the corporation communicates with its investors. , or at http://ir.charteredsemi.com. Mid-Quarter Guidance The Company provides a guidance update midway Midway, island group (2 sq mi/5.2 sq km), central Pacific, c.1,150 mi (1,850 km) NW of Honolulu, comprising Sand and Eastern islands with the surrounding atoll. Discovered by Americans in 1859, Midway was annexed in 1867. A cable station was opened in 1903. through each quarter. For first quarter 2004, the Company anticipates issuing its mid-quarter guidance update, via news release, on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , March 12, 2004, Singapore time. All currency figures stated in this report are in US dollars. The financial statement amounts in this report are 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 provide investors additional information regarding the Company's financial results as determined in accordance with US GAAP, in this report Chartered also provides information on its total business base revenues, which include the Company's share of Silicon Manufacturing Partners ("Revenues including Chartered's share of SMP"). 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 ("Revenues"). References to revenues including Chartered's share of SMP in this report are therefore not in accordance with US GAAP. To ensure clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the , in Appendix appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity. A of this report we have included a reconciliation table which provides comparable data based on revenues determined in accordance with US GAAP, which do not include the Company's share of SMP.
APPENDIX A
US GAAP Reconciliation Table
In order to provide investors additional information regarding the
company's financial results as determined in accordance with US GAAP,
in this report Chartered also provides information on its total
business base revenues, which include the Company's share of Silicon
Manufacturing Partners ("Revenues including Chartered's share of
SMP"). SMP is a minority-owned joint-venture company and under US GAAP
reporting, SMP revenues are not consolidated into Chartered's revenues
("Revenues"). References to revenues including Chartered's share of
SMP in this report are therefore not in accordance with US GAAP. To
ensure clarity, the tables below provide a reconciliation.
4Q 2002 3Q 2003 4Q 2003 1Q 2004 Year Year
Actual Actual Actual Guidance 2002 2003
Midpoint
-------------- -------- -------- -------- ------- ------- --------
Revenues (a) $107.9M $137.7M $182.8M $224.0M $449.2M $551.9M
-------------- -------- -------- -------- ------- ------- --------
Chartered's
share of SMP
revenues $17.4M $47.6M $54.4M $56.0M $35.6M $175.8M
-------------- -------- -------- -------- ------- ------- --------
Revenues
including
SMP $125.3M $185.3M $237.2M $280.0M $484.8M $727.7M
-------------- -------- -------- -------- ------- ------- --------
-------------- -------- -------- -------- ------- ------- --------
ASP (a) $1,029 $896 $911 $966 $1,077 $911
-------------- -------- -------- -------- ------- ------- --------
ASP of
Chartered's
share of SMP
revenues $1,241 $1,522 $1,583 $1,556 $1,262 $1,513
-------------- -------- -------- -------- ------- ------- --------
ASP including
Chartered's
share of SMP $1,054 $1,002 $1,010 $1,045 $1,089 $1,008
-------------- -------- -------- -------- ------- ------- --------
-------------- -------- -------- -------- ------- ------- --------
Net loss (a) $(108.7)M $(75.9)M $(43.2)M $(8.6)M $(417.1)M $(284.8)M
-------------- -------- -------- -------- ------- ------- --------
Total unusual
items
gain/(loss) $(10.0)M $(3.3)M $(2.5)M $(3.0)M $(10.0)M $22.8M
-------------- -------- -------- -------- ------- ------- --------
- Workforce
resizing and
fixed asset
write-off $ (10.0)M - - - $(10.0)M -
-------------- -------- -------- -------- ------- ------- --------
- Conclusion
of EVA bonus
plan - - - - - $28.7M
-------------- -------- -------- -------- ------- ------- --------
- Fab 1
restructuring
charge - $(3.3)M $(2.5)M $(3.0)M - $(14.1)M
-------------- -------- -------- -------- ------- ------- --------
- Intellectual
property
licensing and
gain on
equipment
disposal - - - - - $8.2M
-------------- -------- -------- -------- ------- ------- --------
Net loss
without
unusual
items $(98.7)M $(72.6)M $(40.7)M $(5.6)M $(407.1)M $(307.6)M
-------------- -------- -------- -------- ------- ------- --------
-------------- -------- -------- -------- ------- ------- --------
Impact of
CSP
accounting
treatment - $(23.8)M $(17.4)M $(13.0)M - $(74.3)M
-------------- -------- -------- -------- ------- ------- --------
Normalized
net (loss)
profit $(98.7)M $(48.8)M $(23.3)M $7.4M $(407.1)M $(233.3)M
-------------- -------- -------- -------- ------- ------- --------
(a) Determined in accordance with US GAAP
Breakdown by Market Sector
Revenues (US GAAP) Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
Communications 45% 43% 47% 45% 46%
------------------------------- ----- ----- ----- ----- -----
Computer 40% 39% 32% 33% 31%
------------------------------- ----- ----- ----- ----- -----
Consumer 10% 13% 17% 18% 20%
------------------------------- ----- ----- ----- ----- -----
Other 5% 5% 4% 4% 3%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Chartered's share of SMP revenues Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
Communications 60% 45% 59% 58% 51%
------------------------------- ----- ----- ----- ----- -----
Computer 36% 53% 39% 33% 36%
------------------------------- ----- ----- ----- ----- -----
Consumer 3% 1% 2% 8% 11%
------------------------------- ----- ----- ----- ----- -----
Other 1% 1% 0% 1% 2%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Revenues including Chartered's share of SMP Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
Communications 47% 43% 49% 49% 47%
------------------------------- ----- ----- ----- ----- -----
Computer 40% 43% 34% 33% 32%
------------------------------- ----- ----- ----- ----- -----
Consumer 9% 10% 14% 15% 18%
------------------------------- ----- ----- ----- ----- -----
Other 4% 4% 3% 3% 3%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Breakdown by Region
Revenues (US GAAP) Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
Americas 65% 63% 64% 64% 65%
------------------------------- ----- ----- ----- ----- -----
Europe 13% 15% 16% 13% 11%
------------------------------- ----- ----- ----- ----- -----
Asia-Pacific 15% 16% 16% 19% 20%
------------------------------- ----- ----- ----- ----- -----
Japan 7% 6% 4% 4% 4%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Chartered's share of SMP Revenues Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
Americas 43% 40% 44% 55% 47%
------------------------------- ----- ----- ----- ----- -----
Europe 38% 53% 40% 33% 34%
------------------------------- ----- ----- ----- ----- -----
Asia-Pacific 16% 5% 10% 4% 14%
------------------------------- ----- ----- ----- ----- -----
Japan 3% 2% 6% 8% 5%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Revenues including Chartered's share of SMP Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
Americas 62% 57% 59% 62% 61%
------------------------------- ----- ----- ----- ----- -----
Europe 16% 25% 21% 18% 16%
------------------------------- ----- ----- ----- ----- -----
Asia-Pacific 15% 13% 15% 15% 19%
------------------------------- ----- ----- ----- ----- -----
Japan 7% 5% 5% 5% 4%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Breakdown by Technology (micron)
Revenues (US GAAP) Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
0.13 and below 0% 1% 8% 10% 13%
------------------------------- ----- ----- ----- ----- -----
Up to 0.15 0% 0% 0% 0% 0%
------------------------------- ----- ----- ----- ----- -----
Up to 0.18 32% 24% 12% 8% 17%
------------------------------- ----- ----- ----- ----- -----
Up to 0.25 18% 17% 20% 27% 21%
------------------------------- ----- ----- ----- ----- -----
Up to 0.35 29% 32% 32% 31% 26%
------------------------------- ----- ----- ----- ----- -----
Above 0.35 21% 26% 28% 24% 23%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Chartered's share of SMP Revenues Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------- ----- ----- ----- ----- -----
0.13 and below 3% 0% 1% 0% 0%
------------------------------- ----- ----- ----- ----- -----
Up to 0.15 15% 33% 35% 58% 69%
------------------------------- ----- ----- ----- ----- -----
Up to 0.18 61% 59% 58% 40% 30%
------------------------------- ----- ----- ----- ----- -----
Up to 0.25 21% 8% 6% 2% 1%
------------------------------- ----- ----- ----- ----- -----
Up to 0.35 0% 0% 0% 0% 0%
------------------------------- ----- ----- ----- ----- -----
Above 0.35 0% 0% 0% 0% 0%
------------------------------- ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------- ----- ----- ----- ----- -----
Revenues including Chartered's share of SMP Percentage of Total
4Q 1Q 2Q 3Q 4Q
2002 2003 2003 2003 2003
------------------------------ ----- ----- ----- ----- -----
0.13 and below 1% 1% 6% 8% 10%
------------------------------ ----- ----- ----- ----- -----
Up to 0.15 2% 9% 8% 15% 16%
------------------------------ ----- ----- ----- ----- -----
Up to 0.18 36% 33% 22% 16% 20%
------------------------------ ----- ----- ----- ----- -----
Up to 0.25 19% 15% 17% 20% 16%
------------------------------ ----- ----- ----- ----- -----
Up to 0.35 24% 23% 25% 23% 20%
------------------------------ ----- ----- ----- ----- -----
Above 0.35 18% 19% 22% 18% 18%
------------------------------ ----- ----- ----- ----- -----
Total 100% 100% 100% 100% 100%
------------------------------ ----- ----- ----- ----- -----
About Chartered Chartered Semiconductor Manufacturing, one of the world's top three dedicated semiconductor foundries, is forging a customized approach to outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, semiconductor manufacturing by building lasting and collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. 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 3,300 employees are based at 11 locations around the world. Information about Chartered can be found at www.charteredsemi.com. 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 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 the first quarter of 2004 and outlook for the year 2004 including projected revenues and average selling prices (including Chartered's share of SMP); normalized net income, utilization rate, gross profit, net loss and loss per American Depositary Share; the growth of revenues (including Chartered's share of SMP) from advance technologies and percentage of the revenues arising from the sale of 0.13-micron, 0.18-micron and below products; higher utilization of mature capacity and shipments of mature technology wafers, joint development agreement with IBM and Infineon to strengthen our technology; mature technology sourcing engagements to increase utilization of mature capacity; progress made in the China market; strengthening and extending of EDA and IP design solutions to enable more first-source wins; formation of NanoAccess Alliance; R&D and capital expenditure plans for 2004 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 services and communications and computer markets; the growth rate of fabless companies Fabless Company The Fabless Semiconductor Association (FSA) defines fabless as follows: Fabless (without fab) refers to the business methodology of outsourcing the manufacturing of silicon wafers, which hundreds of semiconductor companies have adopted. and the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. strategy of integrated device manufacturers See IDM. ; 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 at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . 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. NanoAccess is a trademark of Chartered Semiconductor Manufacturing. All other trademarks are the property of their respective owners.
CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US Dollars, except share and per share data)
Determined in accordance with US GAAP
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2003 2002 2003
--------- -------- --------- ---------
Net revenue $ 107,925 $182,752 $ 449,241 $ 551,911
Cost of revenue 161,790 171,655 628,726 648,330
--------- -------- --------- ---------
Gross profit (loss) (53,865) 11,097 (179,485) (96,419)
--------- -------- --------- ---------
Operating expenses:
Research and development 28,059 31,136 95,285 124,533
Fab start-up costs 2,586 2,292 8,338 9,219
Sales and marketing 9,846 9,840 41,182 38,272
General and
administrative 8,127 10,729 43,103 35,885
Other operating expenses 10,025 11,530 10,025 (6,124)
--------- -------- --------- ---------
Total operating
expenses 58,643 65,527 197,933 201,785
--------- -------- --------- ---------
Operating loss (112,508) (54,430) (377,418) (298,204)
Equity in income (loss)
of SMP (11,521) 14,682 (84,846) 23,194
Other income 4,367 5,172 23,632 23,186
Interest income 4,954 2,439 16,637 12,168
Interest expense (9,630) (10,333) (41,661) (42,222)
Exchange gain (loss) 264 (883) (1,966) (733)
--------- -------- --------- ---------
Loss before income taxes (124,074) (43,353) (465,622) (282,611)
Income tax benefit
(expense) (2,191) 138 (7,029) (11,671)
--------- -------- --------- ---------
Loss before minority
interest (126,265) (43,215) (472,651) (294,282)
Minority interest in loss
of CSP 17,613 - 55,563 9,491
--------- -------- --------- ---------
Net loss (108,652) (43,215) (417,088) (284,791)
========= ======== ========= =========
Net loss per share and ADS*
Basic and diluted net loss
per share (0.05) (0.02) (0.23) (0.11)
Basic and diluted net loss
per ADS (0.45) (0.17) (2.32) (1.14)
Number of shares (in
millions) used in
computing basic and diluted
net loss per share 2,408.8 2,505.4 1,799.1 2,502.3
Number of ADS (in millions)
used in computing basic and
diluted net loss per ADS 240.9 250.5 179.9 250.2
* Share and per share data for 2002 reflect a retroactive adjustment
due to an eight-for-ten rights offering completed in October 2002.
CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
Determined in accordance with US GAAP
As of
---------------------------
December 31, December 31,
2002 2003
------------ ------------
ASSETS
Cash and cash equivalents $1,210,925 $ 905,472
Receivables, net 95,764 193,025
Inventories 21,275 56,433
Prepaid expenses 4,081 5,027
------------ ------------
Total current assets 1,332,045 1,159,957
Investment in SMP 33,764 62,257
Other non-current assets 94,320 133,660
Technology license agreements 16,540 126,713
Property, plant and equipment, net 1,861,231 1,539,440
------------ ------------
Total assets $3,337,900 $3,022,027
LIABILITIES AND SHAREHOLDERS' EQUITY
Payables $ 134,750 $ 71,543
Current installments of long-term debt 64,001 223,660
Accrued operating expenses 141,016 116,520
Income tax payable 20,578 28,607
Other current liabilities 29,641 37,305
------------ ------------
Total current liabilities 389,986 477,635
Long-term debt, excluding current
installments 1,115,930 989,092
Other non-current liabilities 38,885 60,745
------------ ------------
Total liabilities 1,544,801 1,527,472
Minority interest 7,640 -
Shareholders' equity 1,785,459 1,494,555
------------ ------------
Total liabilities and
shareholders' equity $3,337,900 $3,022,027
============ ============
CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US Dollars)
Determined in accordance with US GAAP
For The Twelve Months Ended
---------------------------
December 31, December 31,
2002 2003
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (417,088) $ (284,791)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Equity in loss (income) of SMP 44,651 (23,194)
Depreciation and amortization 452,417 439,283
Foreign exchange loss (gain) (1,642) 26
Minority interest in loss of CSP (55,563) (9,491)
Loss (gain) on disposal of property,
plant and equipment (784) (5,917)
Cancellation of employee bonus
award plan - (27,531)
Other 5,840 5,551
Changes in operating working capital:
Receivables (19,366) (48,501)
Inventories (8,509) (35,158)
Prepaid expenses (2,176) (946)
Payables and accrued operating expenses (2,926) 23,319
Other current liabilities (1,680) 7,404
Income tax payable (4,089) 8,029
------------ ------------
Net cash (used in) provided by operating
activities (10,915) 48,083
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant,
equipment and other assets 20,978 6,119
Purchase of property, plant and equipment (419,501) (220,761)
Payment for technology intangibles (48,803) (59,705)
Payments for other investments - (110,000)
------------ ------------
Net cash used in investing activities (447,326) (384,347)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt
Borrowings 228,000 125,000
Repayments (206,176) (65,033)
Issuance of ordinary shares 616,947 2,993
Deposits (11,599) (32,123)
------------ ------------
Net cash provided by financing activities 627,172 30,837
------------ ------------
Net increase (decrease) in cash and
cash equivalents 168,931 (305,427)
Effect of exchange rate changes on cash and
cash equivalents 378 (26)
Cash and cash equivalents at the beginning
of the year 1,041,616 1,210,925
------------ ------------
Cash and cash equivalents at the end
of the year $1,210,925 $ 905,472
============ ============
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