Chartered Reports Fourth Quarter and Year 2005 Results.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. -- 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 )(SGX-ST:CHARTERED): --Chartered revenues of $367.2 million in 4Q 2005, up 92.7 percent from 4Q 2004 and up 26.6 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen . Revenues including Chartered's share of 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. of $399.4 million, up 95.1 percent from 4Q 2004 and up 26.2 percent sequentially. --Net income of $26.5 million in 4Q 2005, compared to net loss of $26.8 million in 4Q 2004, and a net loss of $34.5 million in the previous quarter. Chartered Semiconductor Manufacturing (Nasdaq:CHRT)(SGX-ST:CHARTERED), one of the world's top dedicated semiconductor foundries, today announced its results for fourth quarter and year ended December December: see month. 31, 2005. "In fourth quarter, we posted record revenues at the Chartered level as well as record revenues including our share of SMP, as we capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. on the growth in our leading-edge technologies and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions. Although 2005 started out disappointing with the overhang Overhang Calculated as stock options granted, plus the remaining options to still be granted, and then divided by the total shares outstanding. Notes: A high percentage for the overhang is usually a bad thing. of inventory correction CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. in the semiconductor supply chain and demand softness in certain end markets negatively impacting our bottom line, our fundamentals were improving leading us to achieve several key milestones by the end of the year. Revenues from the 90-nanometer (nm) technology node See technology generation. exceeded the $100 million mark in fourth quarter 2005, contributing 28 percent of our total business base revenues in just its second quarter of ramp. We were also able to achieve our target to bring down our breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations 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 to 75 percent in the fourth quarter, setting the path toward a sustainable profitability model," 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. Summary of Fourth Quarter 2005 Performance --Revenues were $367.2 million in fourth quarter 2005, up 92.7 percent from $190.6 million in fourth quarter 2004. Revenues including Chartered's share of SMP were $399.4 million, up 95.1 percent from $204.7 million in the year-ago quarter, with the largest dollar increase coming from the consumer sector, followed by the computer and communications sectors. Sequentially, revenues were up 26.6 percent compared to $290.1 million in third quarter 2005. Revenues including Chartered's share of SMP were up 26.2 percent from $316.5 million in third quarter 2005 primarily due to significant growth in the consumer sector followed by the computer sector, partially offset by a decline in the communications sector. --Gross profit was $88.0 million, or 24.0 percent of revenues, up from a profit of $0.8 million, or 0.4 percent of revenues in the year-ago quarter, primarily due to significantly higher revenues. Gross profit was up 137.7 percent sequentially from $37.0 million, or 12.8 percent of revenues in third quarter 2005, primarily due to higher revenues. --Research and development (R&D) expenses were $35.4 million, an increase of 24.4 percent from the year-ago quarter, primarily due to increased design services activities and higher development activities related to the advanced 65nm technology node, partially offset by the completed 0.13-micron technology development program. --Pre-production fab start-up Start-up The earliest stage of a new business venture. cost was nil in fourth quarter 2005 as Fab 7 started commercial production during second quarter 2005. Pre-production fab start-up cost was $9.9 million in fourth quarter 2004. --Sales and marketing expenses were $10.2 million, up 13.8 percent compared to $8.9 million in the year-ago quarter, primarily due to higher expenses related to the Electronic Design Automation (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. ) offerings. Compared to the previous quarter, sales and marketing expenses were down 10.7 percent from $11.4 million, primarily due to lower financial support for customer 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. activities. --General and administrative (G&A) expenses were $9.7 million, an increase of 20.6 percent compared to $8.0 million in the year-ago quarter, primarily due to higher payroll-related expenses and the effect of 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 in fourth quarter 2004. --Other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. was nil in fourth quarter 2005 compared to an income of $10.0 million in the year-ago quarter, which included a gain of $10.4 million resulting from an 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 with CSMC CSMC Confederate States Marine Corps (Civil War) CSMC Coral Springs Medical Center CSMC Combat Systems Maintenance Center CSMC Combat System Maintenance Central CSMC Cyber Security Management Center Technologies Corporation. --Equity in income (loss) of Chartered's minority-owned joint-venture fab, SMP (Fab 5), was an income of $10.5 million compared to a loss of $10.4 million in the year-ago quarter and an income of $4.2 million in the previous quarter, primarily due to higher revenues. --Other income was $1.9 million compared to $24.8 million in the year-ago quarter. Other income in fourth quarter 2004 included the recognition of a gain of $14.3 million related to the Technology Transfer and License Agreement (TTLA TTLA Texas Trial Lawyers Association TTLA Tarantella, Inc. (stock symbol) TTLA Taiwan TFT LCD Association TTLA Tennessee Trial Lawyers Association TTLA Tobacco Trial Lawyers' Association TTLA Tennessee Theological Library Association ) and the Operational Assistance Agreement (OAA OAA Older Americans Act OAA Ontario Association of Architects OAA Open Agent Architecture OAA Old Age Assistance OAA Obstetric Anaesthetists' Association OAA Office of Academic Affiliations (Department of Veterans Affairs) ) with CSMC Technologies Corporation and a training grant income of $8.4 million. --Net interest expense was $16.1 million, compared to a net interest expense of $1.2 million in the year-ago quarter, primarily due to higher interest expense resulting from higher interest rates and higher outstanding debt and lower interest capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. associated with the ramp of Fab 7, partially offset by higher interest income. --None of the losses in Chartered's 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 (1) (Certified Systems Professional) An earlier award for successful completion of an ICCP examination in systems development. See ICCP. (2) (Commerce Service P or Fab 6), were allocated to the minority interest in fourth quarter 2005. CSP's financial position continued to be in capital deficit in fourth quarter 2005; therefore, Chartered continued to recognize 100 percent of the joint venture's results, which was a loss of $16.3 million in the quarter. CSP's loss decreased in fourth quarter 2005 compared to the previous quarter primarily due to higher revenues and to a lesser extent lower depreciation. At the end of fourth quarter 2005, CSP's capital deficit was $395.2 million. --Net income was $26.5 million, or 7.2 percent of revenues, compared to a net loss of $26.8 million, or negative 14.1 percent of revenues, in the year-ago quarter and a net loss of $34.5 million or negative 11.9 percent of revenues in the previous quarter. --Basic earnings per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (ADS) and basic earnings per share in fourth quarter 2005 were $0.10 and $0.01 respectively, compared with a basic loss per ADS and basic loss per share of $0.11 and $0.01 respectively in fourth quarter 2004. Summary of Year 2005 Performance --Revenues were $1,032.7 million, up 10.8 percent compared to $932.1 million in 2004. Revenues including Chartered's share of SMP were $1,131.9 million, up 2.6 percent from $1,102.9 million a year ago, driven by higher revenues in the consumer sector, partially offset by declines in the communications sector and to a lesser extent the computer sector. --Gross profit was $115.7 million, or 11.2 percent of revenues, a decline from $162.8 million, or 17.5 percent of revenues in 2004, primarily due to lower utilization rate, increased depreciation and other manufacturing costs associated with the addition of new capacity during the year. --Pre-production fab start-up costs, all related to Fab 7, were $22.7 million compared to $33.2 million a year ago, as Fab 7 started commercial production during second quarter 2005. --Sales and marketing expenses were $42.2 million, an increase of 11.7 percent from $37.8 million in 2004, primarily due to higher expenses related to EDA offerings and higher financial support for customer prototyping activities. --G&A expenses were $38.8 million, 14.5 percent higher compared to $33.9 million in 2004. The higher expenses were primarily due to payroll-related expenses and the following in year 2004:
-- A gain of $3.0 million associated with the resolution of
contingencies related to a technology license agreement.
-- A gain of $1.1 million associated with the resolution of a
supplier advance that was previously considered doubtful
of recovery.
--Equity in income of SMP was $6.5 million compared to $27.6 million in 2004, primarily due to significantly lower revenues. --Other income was $2.4 million compared to $52.3 million in 2004. The reduction was primarily due to the following:
-- Recognition of a gain in 2004 of $14.3 million related to
the TTLA and the OAA with CSMC Technologies Corporation.
-- Higher grant income of $29.4 million in 2004.
-- An expense of $7.0 million in third quarter 2005, relating
to termination of hedging transactions and other costs as
a result of the cash tender offer for the senior
convertible notes due April 2006.
--None of the losses in Chartered's consolidated joint-venture fab, CSP, were allocated to the minority interest in 2005. CSP's financial position continued to be in capital deficit in 2005, thereby requiring Chartered to recognize 100 percent of CSP's results which was a loss of $132.4 million in 2005, compared to $113.9 million in 2004. --Net loss was $159.6 million, or negative 15.5 percent of revenues, compared to a net income of $6.6 million, or 0.7 percent of revenues in 2004. --Basic loss per ADS and basic loss per share in 2005 were $0.65 and $0.06 respectively, compared with basic earnings per ADS and basic earnings per share of $0.03 and $0.00 respectively in 2004. 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. (eight-inch equivalent) --Shipments in fourth quarter 2005 were 314.8 thousand wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. , an increase of 64.2 percent compared to 191.8 thousand wafers in fourth quarter 2004. Shipments in fourth quarter 2005 increased by 16.3 percent compared to 270.7 thousand wafers shipped in third quarter 2005. Shipments including Chartered's share of SMP were 345.8 thousand wafers, an increase of 72.2 percent compared to 200.8 thousand wafers in fourth quarter 2004. Shipments including Chartered's share of SMP in fourth quarter 2005 increased by 17.1 percent compared to 295.2 thousand wafers shipped in third quarter 2005. --Shipments in 2005 were 965.0 thousand wafers, an increase of 4.8 percent compared to 921.0 thousand wafers shipped in 2004. Shipments including Chartered's share of SMP were 1,051.8 thousand wafers, an increase of 1.6 percent compared to 1,035.5 thousand wafers in 2004. --Average Selling Price (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 $1,139 per wafer in fourth quarter 2005, an increase of 10.0 percent from $1,035 per wafer in third quarter 2005, primarily due to richer product mix. ASP including Chartered's share of SMP was $1,130 per wafer in fourth quarter 2005 compared to $1,039 per wafer in third quarter 2005. --ASP was $1,036 in 2005, an increase of 2.4 percent compared to $1,012 per wafer in 2004, primarily due to richer product mix, partially offset by price decline in certain mature technologies during the year. ASP including Chartered's share of SMP was $1,045 per wafer in 2005 compared to $1,065 per wafer in 2004. Capacity and Utilization --Capacity utilization in fourth quarter 2005 was 79 percent compared to 61 percent in the year-ago quarter, and 74 percent in third quarter 2005. 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. was 70 percent in 2005 compared to 80 percent in 2004. Total capacity in fourth quarter 2005 was up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. nine percent sequentially. For full year 2005, advanced (0.13-micron and below) capacity increased approximately 118 percent while total capacity increased by approximately 16 percent to 1.5 million eight-inch equivalent wafers from 1.3 million in 2004, primarily due to Fab 7 ramp. Capacity utilization is based on total shipments and total capacity, both of which include Chartered's share of SMP.
Utilization Table
Data including Chartered's share of SMP
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
Thousand 8" equivalent wafers 2004 2005 2005 2005 2005
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Total wafers shipped 200.8 186.2 224.5 295.2 345.8
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Total capacity 327.0 317.0 346.5 401.4 435.9
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Utilization 61% 59% 65% 74% 79%
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Capacity by Fab
Thousand 8" 4Q 1Q 2Q 3Q 4Q Est 1Q
equivalent wafers 2004 2005 2005 2005 2005 2006
----------------------------------------------------------------------
Fab 2 131.8 130.6 137.7 139.2 145.7 142.6
----------------------------------------------------------------------
Fab 3 73.0 71.4 74.3 74.2 74.2 69.5
----------------------------------------------------------------------
Fab 5
(Chartered's share) 37.0 34.5 35.8 36.2 35.6 34.3
----------------------------------------------------------------------
Fab 6 85.2 80.5 89.4 100.5 112.9 114.5
----------------------------------------------------------------------
Fab 7 (a) - - 9.3 51.3 67.5 66.6
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Total 327.0 317.0 346.5 401.4 435.9 427.5
----------------------------------------------------------------------
(a) Fab 7 started commercial shipment in June 2005.
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
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Communications 47% 37% 44% 38% 29%
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Computer 31% 31% 34% 25% 22%
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Consumer 17% 27% 16% 32% 45%
----------------------------------------------------------------------
Other (b) 5% 5% 6% 5% 4%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Breakdown by Region
Revenues including Chartered's share of SMP Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Americas 67% 68% 58% 72% 74%
----------------------------------------------------------------------
Europe 14% 13% 17% 10% 9%
----------------------------------------------------------------------
Asia-Pacific 15% 13% 16% 11% 11%
----------------------------------------------------------------------
Japan 4% 3% 5% 4% 4%
----------------------------------------------------------------------
Other (b) - 3% 4% 3% 2%
----------------------------------------------------------------------
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
2004 2005 2005 2005 2005
----------------------------------------------------------------------
0.09 and below 0% 0% 0% 24% 28%
----------------------------------------------------------------------
Up to 0.13 25% 32% 23% 17% 20%
----------------------------------------------------------------------
Up to 0.15 3% 4% 6% 4% 4%
----------------------------------------------------------------------
Up to 0.18 17% 18% 18% 9% 12%
----------------------------------------------------------------------
Up to 0.25 11% 11% 11% 10% 6%
----------------------------------------------------------------------
Up to 0.35 26% 21% 26% 21% 20%
----------------------------------------------------------------------
Above 0.35 18% 11% 12% 12% 8%
----------------------------------------------------------------------
Other (b) - 3% 4% 3% 2%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
(b) Includes revenues from services related to generation of
customers' mask sets.
Top Customers Chartered's top five customers in 2005, in order of revenue significance (excluding Chartered's share of SMP revenues), 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. , 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) , 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. , MStar and 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. . Collectively, Chartered's top five customers accounted for 56 percent of total revenues in 2005, compared with 52 percent in the previous year. Broadcom and IBM each exceeded 10 percent of total revenues in 2005. Year 2005 Highlights and Events Advanced 90nm and 65nm Technology/300mm Manufacturing Year 2005 was a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. year for Chartered as the Company demonstrated its capability in volume manufacturing advanced 90nm technology and announced several steps to further enhance its technology position in the future: --First 300mm fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facility, Fab 7, commenced commercial production in second quarter 2005. --Made available a comprehensive 65nm design manual and SPICE models and announced production of 65nm multi-project wafers in fourth quarter 2005. --Expanded relationship with IBM by formally extending its joint development efforts to include 45nm 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. process technology. The Chartered-IBM joint development now spans three major generations of technologies from 90nm to 45nm. --Samsung extended its commitment and involvement in the joint technology development by licensing the 90nm common design enablement platform originated by IBM and Chartered. Customers/Operations Chartered continued to make good progress in engaging new customers in 2005. Agreements were announced with: --Infineon for manufacture of 65nm logic products for low-power In electronics, the term low-power means one of two things about a device:
n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. 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. solution. --ATI for volume production of its 0.13-micron low-power, all-copper process, providing ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. with additional manufacturing capacity for its media processor IMAGEON The Imageon (previously ATI Imageon) is a line of media processor line developed by ATI providing graphics acceleration and other multimedia features for handheld devices such as mobile phones and Personal Digital Assistants (PDA). 2240 for high-volume camera phones. EDA / IP Chartered further expanded the common design enablement platform during the year and also announced a milestone common DFM DFM Design for Manufacturing (newsletter) DFM Design for Manufacturability DFM Dubai Financial Market DFM Delphi Form (computer filename extension) DFM Distinguished Flying Medal DFM Diesel Fuel Marine initiative: --Chartered and IBM announced further expansion of their jointly developed 90nm process platform with the addition of common design enablement support. Expanded support -- provided by ARM, Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services. http://cadence.com/. See also Verilog. , Magma Design Automation Magma Design Automation (NASDAQ: LAVA) is a software company in the electronic design automation (EDA) industry. The company was founded in 1997 and maintains headquarters in San Jose, California. and Synopsys (Synopsys, Inc., Mountain View, CA, www.synopsys.com) A leading supplier of electronic design automation (EDA) solutions in the worldwide electronics market. Founded in 1986 by Dr. Aart J. -- augments the existing ecosystem of support for the IBM-Chartered 90nm base process platform. --Chartered, IBM and Samsung also announced a comprehensive, 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. strategy and an initial set of solutions as part of a cross-fab, common DFM initiative. The multi-faceted effort, which includes participation by leading EDA and DFM tool suppliers, is focused on offering a series of rules, models and utility kits that provide new levels of predictability and control to achieve working silicon faster and yield ramp more efficiently. Financing In 2005, Chartered successfully executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. a financing plan that substantially lengthened length·en tr. & intr.v. length·ened, length·en·ing, length·ens To make or become longer. length  en·er n. its debt maturity profile and at the same time
helped its de-leveraging objectives. Chartered raised a total of $925
million from a public offering of "Senior Notes" and a private
placement of "Units." The Senior Notes consisted of $375
million of 5.75 percent senior notes due 2010 and $250 million of 6.375
percent senior notes due 2015. The "Units" comprised
convertible redeemable RedeemableEligible for redemption under the terms of an indenture. preference shares and amortizing bonds An amortizing bond is a bond that repays part of the principal (face value) along with the coupon payments, according to the schedule defined in the bond agreement at issuance. due 2010, totaling to an amount of $300 million. Chartered also launched and completed a cash tender offer, repurchasing approximately 83 percent or $478 million of the outstanding $575 million 2.5 percent senior convertible notes due April 2006. Review and Outlook "Based on current demand levels from our customers and also comprehending two fewer days in the quarter compared to the previous quarter, we expect Chartered revenues and revenues including our share of SMP to decline sequentially approximately three percent in first quarter 2006. The outlook for first quarter 2006 has been steadily improving and we are now seeing less than normal industry seasonality impact in our business," said George Thomas George Thomas may refer to:
"We expect a utilization rate of approximately 83 percent for the first quarter. Revenues from 0.13-micron and below technologies, including 90nm, are expected to represent around 48 percent of our total business base revenues, and 90nm revenues alone are expected to contribute approximately 27 percent of our total business base revenues. With this business outlook, we expect to close first quarter 2006 with a net income of around $15 million." The outlook for first quarter 2006 is as follows:
4Q 2005 1Q 2006 Guidance
-------- ------------------------------
Actual Midpoint and Sequential
range change
----------------------------------------------------------------------
Down 2%
Revenues $367.2M $356M, +/- $4M to 4%
----------------------------------------------------------------------
Revenues including Down 2%
Chartered's share of SMP $399.4M $386M, +/- $5M to 5%
----------------------------------------------------------------------
Down 4%
ASP (c) $1,139 $1,079, +/- $20 to 7%
----------------------------------------------------------------------
ASP including Chartered's Down 3%
share of SMP (c) $1,130 $1,070, +/- $25 to 8%
----------------------------------------------------------------------
Utilization 79% 83%, +/- 2% -
----------------------------------------------------------------------
Gross profit (loss) $88.0M $75M, +/- $4M -
----------------------------------------------------------------------
Net income (loss) (d) $26.5M $15M, +/- $5M -
----------------------------------------------------------------------
Basic earnings (loss)
per ADS $0.10 $0.06, +/- $0.02 -
----------------------------------------------------------------------
(c) Eight-inch equivalent wafers.
(d) Net income includes the negative profit impact from losses
attributable to minority interest, which was $8.0 million in
fourth quarter 2005, and is projected to be approximately $2.5
million in first quarter 2006.
Guidance comments for year 2006: --R&D expenditures: approximately $150 million, compared to $122 million in 2005. --Capital expenditures: approximately $650 million, compared to $628 million in 2005. 2006 capital expenditures are primarily targeted for 0.13-micron and below capacity and are cash-flow based. --Depreciation and amortization: approximately $520 million, compared to $508 million in 2005. --Wafer capacity: approximately 1.8 million wafers (eight-inch equivalent) in 2006, an increase of approximately 21 percent over 2005. For the same period, advanced capacity (0.13-micron and below) is planned to increase over 72 percent and represent approximately 35 percent of total. CEO Closing Comments "Chartered today has a technology position that it has never had in its history and a cost structure that is better than in the past. We are excited about the opportunities that are ahead of us in 2006, as we expand our customer engagements on the Chartered-IBM 65nm and 90nm common technology platform and 0.13-micron technologies, and further solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. the gains from the 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. solutions we offer in more mature technologies," concluded Chia. Webcast Conference Call Today Chartered will be discussing its fourth quarter 2005 and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results and first quarter 2006 outlook on a conference call today, January January: see month. 27, 2006, 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 26, 2006). 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 2006, 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 3, 2006, Singapore time.
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.
1Q 2006
4Q 2004 3Q 2005 4Q 2005 Guidance Year Year
Actual Actual Actual Midpoint 2004 2005
----------------------------------------------------------------------
Revenues(e) $190.6M $290.1M $367.2M $356.0M $932.1M $1,032.7M
----------------------------------------------------------------------
Chartered's
share of
SMP
revenues $14.1M $26.4M $32.2M $30.0M $170.8M $99.2M
----------------------------------------------------------------------
Revenues
including
Chartered's
share of
SMP $204.7M $316.5M $399.4M $386.0M $1,102.9M $1,131.9M
----------------------------------------------------------------------
----------------------------------------------------------------------
ASP (e)(f) $994 $1,035 $1,139 $1,079 $1,012 $1,036
----------------------------------------------------------------------
ASP of
Chartered's
share
of SMP
revenues (f) $1,561 $1,074 $1,038 $980 $1,492 $1,144
----------------------------------------------------------------------
ASP including
Chartered's
share of
SMP (f) $1,019 $1,039 $1,130 $1,070 $1,065 $1,045
----------------------------------------------------------------------
(e) Determined in accordance with US GAAP.
(f) Eight-inch equivalent wafers.
Breakdown by Market Sector
Revenues (US GAAP) Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Communications 47% 37% 43% 36% 28%
----------------------------------------------------------------------
Computer 30% 29% 32% 24% 19%
----------------------------------------------------------------------
Consumer 18% 28% 18% 35% 48%
----------------------------------------------------------------------
Other (g) 5% 6% 7% 5% 5%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Chartered's share of SMP revenues Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Communications 43% 33% 44% 54% 42%
----------------------------------------------------------------------
Computer 47% 59% 51% 37% 51%
----------------------------------------------------------------------
Consumer 10% 7% 3% 7% 6%
----------------------------------------------------------------------
Other - 1% 2% 2% 1%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Revenues including Chartered's share of SMP Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Communications 47% 37% 44% 38% 29%
----------------------------------------------------------------------
Computer 31% 31% 34% 25% 22%
----------------------------------------------------------------------
Consumer 17% 27% 16% 32% 45%
----------------------------------------------------------------------
Other (g) 5% 5% 6% 5% 4%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Breakdown by Region
Revenues (US GAAP) Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Americas 71% 73% 63% 74% 76%
----------------------------------------------------------------------
Europe 10% 8% 11% 9% 8%
----------------------------------------------------------------------
Asia-Pacific 16% 14% 17% 11% 11%
----------------------------------------------------------------------
Japan 3% 2% 5% 3% 3%
----------------------------------------------------------------------
Other (g) - 3% 4% 3% 2%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Chartered's share of SMP Revenues Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Americas 15% 15% 17% 43% 49%
----------------------------------------------------------------------
Europe 74% 74% 66% 28% 28%
----------------------------------------------------------------------
Asia-Pacific 2% - 4% 9% 17%
----------------------------------------------------------------------
Japan 9% 11% 13% 20% 6%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Revenues including Chartered's share of SMP Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
Americas 67% 68% 58% 72% 74%
----------------------------------------------------------------------
Europe 14% 13% 17% 10% 9%
----------------------------------------------------------------------
Asia-Pacific 15% 13% 16% 11% 11%
----------------------------------------------------------------------
Japan 4% 3% 5% 4% 4%
----------------------------------------------------------------------
Other (g) - 3% 4% 3% 2%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Breakdown by Technology (micron)
Revenues (US GAAP) Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
0.09 and below - - - 26% 31%
----------------------------------------------------------------------
Up to 0.13 27% 33% 26% 18% 21%
----------------------------------------------------------------------
Up to 0.15 - - - - -
----------------------------------------------------------------------
Up to 0.18 15% 17% 14% 6% 9%
----------------------------------------------------------------------
Up to 0.25 11% 12% 12% 11% 7%
----------------------------------------------------------------------
Up to 0.35 28% 22% 29% 23% 21%
----------------------------------------------------------------------
Above 0.35 19% 13% 15% 13% 9%
----------------------------------------------------------------------
Other (g) - 3% 4% 3% 2%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Chartered's share of SMP Revenues Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
0.09 and below - - - - -
----------------------------------------------------------------------
Up to 0.13 3% 10% 3% - -
----------------------------------------------------------------------
Up to 0.15 39% 53% 50% 47% 45%
----------------------------------------------------------------------
Up to 0.18 56% 37% 47% 43% 40%
----------------------------------------------------------------------
Up to 0.25 2% - - 5% 3%
----------------------------------------------------------------------
Up to 0.35 - - - 5% 12%
----------------------------------------------------------------------
Above 0.35 - - - - -
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
Revenues including Chartered's share of SMP Percentage of Total
----------------------------------------------------------------------
4Q 1Q 2Q 3Q 4Q
2004 2005 2005 2005 2005
----------------------------------------------------------------------
0.09 and below - - - 24% 28%
----------------------------------------------------------------------
Up to 0.13 25% 32% 23% 17% 20%
----------------------------------------------------------------------
Up to 0.15 3% 4% 6% 4% 4%
----------------------------------------------------------------------
Up to 0.18 17% 18% 18% 9% 12%
----------------------------------------------------------------------
Up to 0.25 11% 11% 11% 10% 6%
----------------------------------------------------------------------
Up to 0.35 26% 21% 26% 21% 20%
----------------------------------------------------------------------
Above 0.35 18% 11% 12% 12% 8%
----------------------------------------------------------------------
Other (g) - 3% 4% 3% 2%
----------------------------------------------------------------------
Total 100% 100% 100% 100% 100%
----------------------------------------------------------------------
(g) Includes revenues from services related to generation of
customers' mask sets.
About Chartered Chartered Semiconductor Manufacturing (Nasdaq:CHRT)(SGX-ST:CHARTERED), one of the world's top dedicated semiconductor foundries, offers leading-edge technologies down to 65 nanometer One billionth of a meter. Nanometers are used to measure the wavelengths of light. See angstrom and metric system. (nm), enabling today's system-on-chip See SoC. designs. The company further serves the needs of customers through its collaborative, joint development approach on a 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. that extends to 45nm. Chartered's strategy is based on open and comprehensive design enablement solutions, manufacturing enhancement methodologies, and a commitment to flexible sourcing. In Singapore, the company operates a 300mm fabrication facility and four 200mm facilities. 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 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 the first quarter of 2006; projected revenues and average selling prices (including Chartered's share of SMP), utilization rate, gross profit, net income or profit and earnings per ADS; our expectation of revenue contribution from 0.13-micron and below technologies including 90nm; percentage of revenue from (i) 0.13-micron and below technologies and (ii) 90nm as a percentage of our total business base revenues; the estimated capacity by fabs for the first quarter 2006 and the guidance on R&D expenditures, capital expenditures, depreciation and amortization, wafer capacity and percentage of increase of advanced capacity for year 2006, 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 consumer, computer and communications markets; demands from our major customers, excess inventory and life cycles of specific products; competition from other foundries; unforeseen delays or interruptions in 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; the timing and rate of the semiconductor market recovery; economic conditions in the United States as well as globally and 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 strategy of integrated device manufacturers See IDM. . 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 for the year ended December 31, 2004 and the Company's Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. Supplement dated July July: see month. 29, 2005 filed with the U.S. Securities and Exchange Commission on August 1, 2005 pursuant to Rule 424(b)(5) of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and relating to our registration statement on Form F-3 (Registration No. 333-56878). 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.
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,
2004 2005 2004 2005
--------- --------- --------- ----------
Net revenue $190,608 $367,213 $932,131 $1,032,734
Cost of revenue 189,856 279,261 769,318 917,048
--------- --------- --------- ----------
Gross profit 752 87,952 162,813 115,686
--------- --------- --------- ----------
Operating expenses:
Research and development 28,445 35,373 118,281 122,073
Fab start-up costs 9,942 - 33,199 22,697
Sales and marketing 8,939 10,174 37,751 42,181
General and administrative 8,025 9,677 33,850 38,756
Other operating expenses
(income), net (10,022) - (8,994) 3,938
--------- --------- --------- ----------
Total operating
expenses 45,329 55,224 214,087 229,645
--------- --------- --------- ----------
Operating income (loss) (44,577) 32,728 (51,274) (113,959)
Equity in income (loss)
of SMP (10,406) 10,513 27,563 6,486
Other income, net 24,767 1,863 52,299 2,442
Interest expense, net (1,224) (16,125) (18,563) (41,214)
Foreign exchange gain
(loss), net 1,298 (1,041) 1,320 (356)
--------- --------- --------- ----------
Income (loss) before
income taxes (30,142) 27,938 11,345 (146,601)
Income tax (expense) benefit 3,314 (1,404) (4,774) (12,997)
--------- --------- --------- ----------
Net income (loss) (26,828) 26,534 6,571 (159,598)
Less: Accretion to
redemption value
of convertible
redeemable
preference shares - (2,401) - (3,196)
--------- --------- --------- ----------
Net income (loss) available
to common shareholders $(26,828) $ 24,133 $ 6,571 $ (162,794)
========= ========= ========= ==========
Net earnings (loss) per
common share and ADS
Basic net earnings (loss)
per common share $ (0.01) $ 0.01 $ 0.00 $ (0.06)
Diluted net earnings (loss)
per common share $ (0.01) $ 0.01 $ 0.00 $ (0.06)
Basic net earnings (loss)
per ADS $ (0.11) $ 0.10 $ 0.03 $ (0.65)
Diluted net earnings (loss)
per ADS $ (0.11) $ 0.08 $ 0.03 $ (0.65)
Number of shares (in
millions) used in computing:
Basic net earnings (loss)
per common share 2,509.2 2,512.9 2,508.4 2,511.4
Effect of dilutive options - 348.7 8.5 1.2
--------- --------- --------- ----------
Diluted net earnings
(loss) per common share 2,509.2 2,861.6 2,516.9 2,512.6
========= ========= ========= ==========
Number of ADS (in millions)
used in computing:
Basic net earnings (loss)
per ADS 250.9 251.3 250.8 251.1
Effect of dilutive options - 34.9 0.9 0.1
--------- --------- --------- ----------
Diluted net earnings
(loss) per ADS 250.9 286.2 251.7 251.2
========= ========= ========= ==========
CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
Determined in accordance with US GAAP
As of
---------------------------------
December 31, December 31,
2004 2005
----------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 539,399 $ 819,856
Receivables, net 143,148 184,897
Inventories 72,159 134,240
Other current assets 46,761 33,027
----------- -----------
Total current assets 801,467 1,172,020
Investment in SMP 93,765 50,384
Property, plant and equipment, net 1,914,515 2,049,695
Technology licenses, net 121,953 106,612
Other non-current assets 158,312 138,583
----------- -----------
Total assets $3,090,012 $3,517,294
=========== ===========
LIABILITIES, CONVERTIBLE REDEEMABLE
PREFERENCE SHARES AND SHAREHOLDERS'
EQUITY
Payables $ 152,348 $ 97,524
Current installments of long-term debt 352,985 319,634
Other current liabilities 118,388 246,318
----------- -----------
Total current liabilities 623,721 663,476
Long-term debt, excluding current
installments 882,745 1,128,258
Other non-current liabilities 77,915 128,523
----------- -----------
Total liabilities 1,584,381 1,920,257
Convertible redeemable preference shares - 250,663
Shareholders' equity 1,505,631 1,346,374
----------- -----------
Total liabilities, convertible
redeemable preference shares
and shareholders' equity $3,090,012 $3,517,294
=========== ===========
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,
2004 2005
------------ -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 6,571 $ (159,598)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Equity in income of SMP (27,563) (6,486)
Cash dividends received from SMP - 29,460
Depreciation and amortization 437,590 507,687
Foreign exchange (gain) loss, net (19) 434
Gain on disposal of property, plant
and equipment (11,703) (1,594)
Others, net (7,032) 8,051
Changes in operating working capital:
Receivables 16,327 (44,280)
Inventories (15,726) (62,081)
Prepaid expenses and other current assets (180) 853
Payables and other liabilities (66,581) 131,928
------------ -------------
Net cash provided by operating activities 331,684 404,374
------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment (686,252) (628,127)
Payments for technology licenses (37,083) (9,351)
Payments for deposits (65,000) -
Proceeds from sale of property, plant
and equipment 31,217 6,245
Receipts related to refund of deposits and
other assets 24,403 45,690
Proceeds from SMP capital reduction - 17,300
Others - (2,832)
------------ -------------
Net cash used in investing activities (732,715) (571,075)
------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt
Borrowings 318,000 1,128,592
Repayments (287,312) (990,172)
Receipts of customer deposits 450 81,300
Refund of customer deposits - (22,035)
Issuance of ordinary shares 2,001 2,387
Issuance of convertible redeemable
preference shares - 247,513
Others 1,800 -
------------ -------------
Net cash provided by financing activities 34,939 447,585
------------ -------------
Net increase (decrease) in cash and cash
equivalents (366,092) 280,884
Effect of exchange rate changes on cash and
cash equivalents 19 (427)
Cash and cash equivalents at the beginning
of the period 905,472 539,399
------------ -------------
Cash and cash equivalents at the end
of the period $ 539,399 $ 819,856
============ =============
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. |
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