STATS Reports Third Quarter 2001 Results.Business Editors/High Tech WritersSINGAPORE Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). and 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)--Oct. 23, 2001 ST Assembly Test Services Ltd ("STATS" - NNM NNM Network Node Manager NNM NASDAQ National Market (financial) NNM National Nutrition Month (March; American Dietetic Association) NNM Naryan-Mar (Russia) NNM Net New Money : STTS STTS System Test & Troubleshooting Station STTS Service Tunnel Transport System (Channel Tunnel) and SGX SGX Singapore Exchange SGX Supergreenx (trance/electronic musician) : ST Assembly)
-- Net revenues of $28.0 million
-- Loss per ADS of $0.33
ST Assembly Test Services Ltd ("STATS" - NNM: STTS and SGX: ST Assembly), a leading semiconductor test and assembly service provider, today announced results for the third quarter ended September September: see month. 30, 2001. Tan TAN See tax anticipation note (TAN). Bock Noun 1. bock - a very strong lager traditionally brewed in the fall and aged through the winter for consumption in the spring bock beer lager beer, lager - a general term for beer made with bottom fermenting yeast (usually by decoction mashing); originally Seng, Chairman and Chief Executive Officer said, "Notwithstanding the very challenging economic conditions, we saw some positive signs in our business as reflected in the sequential One after the other in some consecutive order such as by name or number. increase in unit shipments in the third quarter. Unit shipments for test and assembly businesses increased sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen by 15.1% and 21.4% respectively in the third quarter. Visibility however remains limited and average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. ("ASPs") declined significantly principally as a result of changes in product mix. Revenues for third quarter were in line with reported guidance and expectations. Our strategy in this downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. is to continue investing in strategic areas while managing and controlling costs aggressively. We will continue to invest about $4 million per quarter on advanced package development. In the third quarter, we invested in flip chip A chip packaging technique in which the active area of the chip is "flipped over" facing downward. Instead of facing up and bonded to the package leads with wires from the outside edges of the chip, any surface area of the flip chip can be used for interconnection, which is typically done and 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. bumping Bumping can refer to:
1. into 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 through a US$28 million acquisition of a majority interest in Winstek Semiconductor Corporation in August 2001. Winstek will enable us to capture a part of the test and assembly 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. opportunities in Taiwan. A higher degree of penetration of the Taiwanese market will help us broaden our end market exposure in the consumer and computer segments. We are able to continue to invest for the future because we are financially strong with a very healthy balance sheet. We ended the third quarter with $151.8 million of cash and cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has ." Highlights of Third Quarter Performance Net revenues for the third quarter were $28.0 million, a decrease of 69.0% over the corresponding period a year ago, and a decrease of 20.5% sequentially over second quarter 2001. This is despite an increase in the unit shipments of assembly and test businesses in the current quarter over the prior quarter. The fall in net revenues was due to the erosion of ASPs caused principally by changes in product mix. Third quarter 2001 reported a net loss of $32.3 million compared to a profit of $16.5 million for the corresponding period a year ago, and a net loss of $31.7 million in the second quarter. Contributions from Winstek to net revenues and net income were not material in this quarter. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per ADS and diluted loss per ordinary share for the third quarter was $0.33 and $0.03 respectively compared to diluted earnings of $0.17 per ADS and $0.02 per ordinary share in the corresponding period in 2000. Assembly business contributed $14.3 million or 50.9% of the third quarter revenues. The remaining $13.7 million or 49.1% of the net revenues came from test business. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the third quarter was negative $2.1 million compared with $38.1 million for the corresponding period a year ago and $0.6 million for second quarter 2001. Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the U.S. and our calculation of adjusted EBITDA is not necessarily comparable to similarly titled measures of other companies in our industry. Gross profit for the third quarter was negative $22.0 million or a gross margin of negative 78.3% compared to a gross profit of $27.3 million or a gross margin of 30.2% in the same quarter a year ago. Gross profit for the third quarter was marginally lower than the gross profit of negative $21.9 million in the second quarter. Gross margin for the third quarter was worse than the gross margin of negative 62.2% in the second quarter because of lower revenues and the high level of fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . Depreciation expense and cost of leasing production equipment for this quarter was $29.1 million or 103.7% of net revenues compared to $22.7 million or 25.1% of net revenues in the corresponding period a year ago. Depreciation expense and cost of leasing production equipment in this quarter remained stable compared to that in the second quarter of $29.2 million or 82.7% of net revenues. Third quarter 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 $11.8 million or 42.0% of net revenues compared to $14.3 million or 15.8% of net revenues in the corresponding period a year ago, and compared to $12.3 million or 35.0% of net revenues in second quarter 2001. Selling, general and administrative ("SG&A") expenses, which include stock-based compensation, were $8.0 million or 28.4% of net revenues, compared to $10.2 million or 11.3% of net revenues in the corresponding period a year ago, and compared to $8.8 million or 25.1% of net revenues in the second quarter. The decrease in SG&A expenses was a result of ongoing cost reduction initiatives. Research and development expenses were $3.8 million during the quarter, or 13.6% of net revenues compared to $3.5 million or 9.9% of revenues in second quarter 2001. Unit Shipments and Average Selling Prices Unit shipments for the test business in third quarter 2001 decreased by 54.8% over the same quarter a year ago and increased 15.1% sequentially over the second quarter 2001. Unit shipments in our assembly business decreased by 49.0% over the same quarter a year ago and increased 21.4% sequentially over the second quarter 2001. ASPs of test business decreased 17.5% compared to second quarter 2001 due principally to a change in the mix of devices tested, as STATS tested more computer-related devices during the quarter. In the assembly business, the ASPs for this quarter decreased 37.4% from the second quarter of 2001 principally as a result of significant loading of traditional leadframe packages with lower ASPs during the quarter. STATS continues to maintain its leadership in mixed signal testing which accounted for 91.8% of STATS' test revenues.
Test Revenues Breakdown by Testing Type
Three Months Ending
30 June, 2001 30 September, 2001
------------- ------------------
Type of Testing % of Test Revenues % of Test Revenues
--------------------------------------------------------------------
Mixed Signal 85.1 91.8
--------------------------------------------------------------------
Digital 14.9 8.1
--------------------------------------------------------------------
Memory 0.0 0.1
--------------------------------------------------------------------
Capital Expenditures In this quarter, STATS incurred $11.6 million in capital expenditures principally for IT systems enhancements, peripherals and equipment. As of 30 September 2001, STATS had 223 testers and 532 wirebonders and Winstek had 19 testers. Market Dynamics Revenues generated from the computer segment increased to 41.5% of net revenues reflecting the stronger demand in the computer sector. The communications segment continued to be our largest revenue contributor in this quarter and accounted for 56.4% of net revenues. The U.S. remained our largest revenue contributor by region. Contribution to net revenues from integrated device manufacturers See IDM. ("IDMs") in third quarter increased to 56.7% of net revenues from 48.3% of net revenues in second quarter reflecting stronger demand from certain IDM (1) See identity management. (2) (Integrated Device Manufacturer) A company that performs every step of the chip-making process, including design, manufacture, test and packaging. Examples of IDMs are Intel, AMD, Motorola, IBM, TI and Lucent. customers.
Revenues Breakdown by Market Segment
Three Months Ending
30 June, 2001 30 September, 2001
----------------------------------------------------------------------
Market Segment % of Net Revenues % of Net Revenue
----------------------------------------------------------------------
Communications 60.8 56.4
----------------------------------------------------------------------
Computer 36.4 41.5
----------------------------------------------------------------------
Consumer and Others 2.8 2.1
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Revenues Breakdown by Region
Three Months Ending
30 June, 2001 30 September, 2001
------------------------------------------------------------------
Region % of Net Revenues % of Net Revenue
------------------------------------------------------------------
United States 80.1 81.0
------------------------------------------------------------------
Europe 11.4 11.4
------------------------------------------------------------------
Asia 8.5 7.6
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Revenues Breakdown by Customer Type
Three Months Ending
30 June, 2001 30 September, 2001
--------------------------------------------------------------------
Customer Type % of Net Revenues % of Net Revenues
--------------------------------------------------------------------
Foundries 4.8 5.9
--------------------------------------------------------------------
Fabless 46.9 37.4
--------------------------------------------------------------------
IDMs 48.3 56.7
--------------------------------------------------------------------
Business Outlook The following statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and actual results may differ materially. "The positive tone in our business that we saw in the third quarter has continued into the fourth quarter. Visibility has however remained limited. The horrifying terrorist attacks of September 11 have added a greater degree of uncertainty to the global economic conditions and the health of the semiconductor industry. Against this backdrop Backdrop may refer to:
Added Tan Lay Koon, Chief Financial Officer, "Accordingly, we expect revenues in the fourth quarter 2001 to be flat to 5% higher compared to third quarter driven by higher unit shipments of test and assembly businesses and stability in ASPs. Consequently, we expect 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 be at the same level of the third quarter of about 35% to 40%. We do not expect the fourth quarter to be profitable. Our strong balance sheet has given us considerable financial flexibility. We continue investing prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. in strategic areas while managing costs and conserving con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: cash aggressively. Our capital expenditures for the fourth quarter are expected to be about $33.1 million of which about $10 million will be for the establishment of a new front-end front-end adj. 1. Of or relating to the initial phase of a project: a front-end investment. 2. Of or relating to the forward parts of a vehicle: a front-end alignment. testing facility in Silicon Valley. If we commit all the capital expenditures budgeted for the fourth quarter, we will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. capital expenditures of $66.9 million in 2001 compared to $276.9 million in 2000." Highlights of Third Quarter Achievements In August, STATS expanded its manufacturing footprint to Taiwan through the acquisition of a majority interest in Winstek Semiconductor Corporation, a specialist test house located in Hsin-Chu Hsin-Chu (or Hsinchu) could refer to:
fu artof>, or department, or of an independent chow; also, the seat of government of such a district. , Taiwan. Winstek has capabilities to test optical, mixed-signal, digital and radio frequency (RF) devices and is also capable of providing an integrated range of services including wafer probe, final test, turnkey See turnkey system. and drop shipment services. Winstek provides STATS with the platform to significantly increase STATS' presence in Taiwan, home of two of the largest foundries in the world and the second largest base of fabless (FABricationLESS) A semiconductor vendor that does not have inhouse manufacturing facilities. Although it designs and tests the chips, it relies on external foundries (fabs) for their actual fabrication. See fab, foundry and IDM. integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for companies in the world. STATS was awarded the 2001 Advanced Packaging Award in the Contract Services category for its Simplified Package Modeling technique. Sponsored by Advanced Packaging magazine and SEMICON SEMICON Semiconductors Equipment and Material International Conference West, the award recognizes outstanding achievements in the semiconductor packaging industry from around the world based on innovation, cost effectiveness, speed/throughput, quality, ease of use, maintainability and environmental responsibility. STATS' Simplified Package Modeling technique provides customers unmatched design flexibility, early confirmation of thermal performance, and the potential to significantly reduce design cycle time. STATS expanded its flip chip assembly capabilities in August through the signing of a technology licensing agreement with Flip Chip Technologies, L.L.C (FCT FCT Faculdade de Ciências e Tecnologia (Portuguese University) FCT Fundamentals of Computation Theory FCT Fundação para a Ciência e a Tecnologia (Portuguese Science and Technology Foundation) ). The agreement enables STATS to use FCT's proprietary Flex-on-Cap wafer bumping process and Redistribution re·dis·tri·bu·tion n. 1. The act or process of redistributing. 2. An economic theory or policy that advocates reducing inequalities in the distribution of wealth. technologies to facilitate manufacture of advanced flip chip 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 completes STATS' existing backend flip chip assembly process. The agreement provides STATS with future technology development, site engineering support and more importantly, opportunities for cost and cycle time reduction by locating wafer bumping capabilities and redistribution technology in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. . The flip chip bump process also enables STATS to participate in wafer scale packages, direct chip attach TO ATTACH, crim. law, practice. To an attachment for contempt for the non- take or apprehend by virtue of the order of a writ or precept, commonly called an attachment. It differs from an arrest in this, that he who arrests a man, takes him to a person of higher power to be disposed of; and integrated passive devices. In September, STATS unveiled an integrated IT architecture that will be linked seamlessly to customers' manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in the future. Continuing to invest in STATS' in-house infrastructure to drive supply chain management, the IT architecture will form a virtual manufacturing Virtual manufacturing The modeling of manufacturing systems using audiovisual or other sensory features to simulate or design alternatives for an actual manufacturing environment, or the prototyping and manufacture of a proposed product using computers. system with customers as part of their supply chain. STATS' new IT architecture comprises two key components, MySTATS and e-TAS(TM), which are being developed concurrently con·cur·rent adj. 1. Happening at the same time as something else. See Synonyms at contemporary. 2. Operating or acting in conjunction with another. 3. Meeting or tending to meet at the same point; convergent. . MySTATS is an external, self-service portal which will eventually be linked with customers' networks, providing them online access to real time and reliable work-in-progress work-in-progress n (COMM) → trabajo en curso work-in-progress n (Comm) → en-cours m inv: (= value); valeur f reports as well as other relevant data from STATS' operations. It will also incorporate the RosettaNet (RosettaNet, Lawrenceville, NJ, www.rosettanet.org) A non-profit subsidiary of the trade organization GS1 US, formerly known as the Uniform Code Council (UCC). RosettaNet is devoted to standardizing interfaces for electronic commerce between supply chain partners. standard to facilitate data interchange An interchange is a location where two things meet, usually perform some kind of exchange, and possibly go on their ways again. It is most commonly used in four contexts:
September also saw STATS launching its enhanced website, aimed at providing increased depth and breadth of information about STATS, its products and services. STTS.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. is an information-rich resource for customers and shareholders, offering expanded content and dynamic features throughout the site. STTS.COM's enhanced focus on services, solutions and key differentiators will more effectively communicate STATS' value proposition to its global audience. STTS.COM is part of a continued effort by STATS to enhance customer support via the web, an effort that also includes the development of MySTATS and e-TAS(TM). In September, STATS was added to the Straits Straits: see Dardanelles; Bosporus. Times Industrial Index ("STI STI systolic time intervals. Index"), the most widely recognized index of the Singapore stockmarket. The STI index consists of 45 component stocks that were selected based on level of trading activity and market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. .
ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended September 30, 2000 and 2001
In thousands of US Dollars (except share and per share data)
For the three months ended September 30,
2000 2001
---- ----
Net revenues $90,538 $ 28,049
Cost of revenues (63,202) (50,021)
-------- --------
Gross profit (loss) 27,336 (21,972)
-------- --------
Operating expenses:
Selling, general and
administrative 10,168 7,939
Research and development 4,078 3,816
Others, net 41 28
-------- --------
Total operating expenses 14,287 11,783
-------- --------
Operating income (loss) 13,049 (33,755)
Other income :
Interest income, net 2,684 1,161
Foreign currency
exchange gain (loss) 606 (562)
Other non-operating income, net 967 840
-------- --------
Total other income 4,257 1,439
-------- --------
Income (loss) before
income taxes 17,306 (32,316)
Income tax expense (851) (122)
-------- --------
Net income (loss) before
minority interest $ 16,455 $ (32,438)
Minority interest - 139
-------- --------
Net income (loss) 16,455 (32,299)
-------- --------
Other comprehensive income:
Unrealized gain on
available-for-sale
marketable securities - 40
-------- --------
Comprehensive income (loss) $ 16,455 $ (32,259)
======== ========
Basic net income (loss)
per ordinary share $ 0.02 $ (0.03)
Diluted net income (loss)
per ordinary share $ 0.02 $ (0.03)
Basic net income (loss)
per ADS $ 0.17 $ (0.33)
Diluted net income (loss)
per ADS $ 0.17 $ (0.33)
Ordinary shares
(in thousands) used
in per ordinary share
calculation:
- basic 984,774 989,608
- effect of dilutive options 7,200 -
-------- --------
- diluted 991,974 989,608
======== ========
ADS (in thousands) used in
per ADS calculation:
- basic 98,477 98,961
- effect of dilutive options 720 -
-------- --------
- diluted 99,197 98,961
======== ========
ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES
OTHER DATA
For the Three Months Ended September 30, 2000 and 2001
In thousands of US Dollars
For the three months ended September 30,
2000 2001
---- ----
EBITDA (Note 1) $38,103 ($2,146)
Note 1. Defined as Net income (loss) plus depreciation and amortization, income tax expense, expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. leases and specific inventory write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. , less net interest income. This has been included because STATS believes that adjusted EBITDA is useful to securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, other companies in our industry may calculate EBITDA differently and therefore our adjusted EBITDA is not necessarily comparable to similarly titled measures of these companies. Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the U.S. and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. 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 such generally accepted accounting principles.
ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(LOSS) For the Nine Months Ended
September 30, 2000 and 2001
In thousands of US Dollars (except share and per share data)
For the nine months ended September 30,
2000 2001
--------- ---------
Net revenues $ 238,473 $ 111,943
Cost of revenues (158,668) (165,764)
--------- ---------
Gross profit (loss) 79,805 (53,821)
--------- ---------
Operating expenses:
Selling, general and
administrative 29,847 28,633
Research and development 10,972 10,839
Others, net (192) 110
--------- ---------
Total operating expenses 40,627 39,582
--------- ---------
Operating income (loss) 39,178 (93,403)
Other income:
Interest income, net 5,756 4,670
Foreign currency
exchange gain (loss) 1,068 (229)
Other non-operating income, net 2,741 2,777
--------- ---------
Total other income 9,565 7,218
--------- ---------
Income (loss) before
income taxes 48,743 (86,185)
Income tax expense (2,390) (943)
--------- ---------
Net income (loss) before
minority interest $ 46,353 $ (87,128)
Minority interest - 139
--------- ---------
Net income (loss) 46,353 (86,989)
--------- ---------
Other comprehensive income:
Unrealized gain on
available-for-sale
marketable securities - 109
--------- ---------
Comprehensive income (loss) $ 46,353 $ (86,880)
========= =========
Basic net income (loss)
per ordinary share $ 0.05 $ (0.09)
Diluted net income (loss)
per ordinary share $ 0.05 $ (0.09)
Basic net income (loss) per ADS $ 0.49 $ (0.88)
Diluted net income (loss)
per ADS $ 0.48 $ (0.88)
Ordinary shares (in thousands)
used in per ordinary share
calculation:
- basic 955,160 988,889
- effect of dilutive options 7,894 -
--------- ---------
- diluted 963,054 988,889
========= =========
ADS (in thousands) used in
per ADS calculation:
- basic 95,516 98,889
- effect of dilutive options 789 -
--------- ---------
- diluted 96,305 98,889
========= =========
ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES
OTHER DATA
For the Nine Months Ended September 30, 2000 and 2001
In thousands of US Dollars
For the nine months ended September 30,
2000 2001
--------- ---------
EBITDA (Note 1) $103,490 $5,629
Note 1. Defined as Net income (loss) plus depreciation and amortization, income tax expense, expenses relating to prepaid leases and specific inventory write-off, less net interest income. This has been included because STATS believes that adjusted EBITDA is useful to securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, other companies in our industry may calculate EBITDA differently and therefore our adjusted EBITDA is not necessarily comparable to similarly titled measures of these companies. Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the U.S. and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with such generally accepted accounting principles.
ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2000 and September 30, 2001
In thousands of US Dollars
December 31, September 30,
2000 2001
---- ----
ASSETS
Current assets:
Cash and cash equivalents $141,733 $140,774
Accounts receivable, net 52,315 19,671
Amounts due from ST and ST affiliates 8,727 2,003
Short-term deposits with ST affiliates 10,000 --
Other receivables 18,989 8,731
Inventories 14,793 7,097
Marketable securities 11,486 3,339
Prepaid expenses 24,809 24,804
-------- --------
Total current assets 282,852 206,419
Property, plant and equipment, net 380,934 368,760
Marketable securities 10,420 7,695
Prepaid expenses 37,552 19,251
Goodwill -- 1,321
Other assets -- 2,577
-------- --------
Total Assets $711,758 $606,023
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 14,799 $ 14,673
Short-term debts -- 6,380
Accounts payable 13,956 9,700
Amounts due to ST and ST affiliates 2,062 1,263
Accrued operating expenses 32,963 11,526
Other payables 27,705 17,255
Income taxes payable 2,846 1,351
--------- ---------
Total current liabilities 94,331 62,148
Deferred liabilities 2,631 3,860
Long-term debt, excluding
current installments 29,599 14,673
--------- ---------
Total Liabilities 126,561 80,681
Minority interests -- 25,437
Shareholders' Equity:
Share capital 159,461 159,954
Additional paid-in capital 386,325 387,420
Accumulated other comprehensive loss (9,731) (9,622)
Retained earnings (deficit) 49,142 (37,847)
--------- ---------
Total Shareholders' Equity 585,197 499,905
--------- ---------
Total Liabilities and
Shareholders' Equity $ 711,758 $ 606,023
======== ========
ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2000 and 2001
In thousands of US Dollars
For the nine months ended September 30,
2000 2001
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 46,353 $ (86,989)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 51,706 74,915
Loss (gain) on sale of property,
plant and equipment (195) 111
Exchange loss 3,633 218
Minority interest in loss in subsidiary - (139)
Others 678 (575)
Changes in operating working capital:
Accounts receivable (28,780) 33,114
Amounts due from ST and ST affiliates 1,417 6,724
Inventories (4,362) 7,696
Other receivables and prepaid expenses 6,800 29,915
Accounts payable 5,726 (4,977)
Amounts due to ST and ST affiliates (3,088) (799)
Accrued operating expenses and other payables 1,904 (23,170)
----- --------
Net cash provided by operating activities 81,792 36,044
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale or maturity of
marketable securities - 20,181
Purchases of marketable securities (20,095) (8,743)
Proceeds from maturity of
short-term deposits - 10,000
Acquisition of subsidiary,
net of cash acquired - 1,835
Purchases of property, plant and equipment (240,320) (45,789)
Proceeds from sale of property,
plant and equipment 5,978 2,186
----- -----
Net cash used in investing activities (254,437) (20,330)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of short-term debt (60,000) (2,443)
Repayment of long-term debt (7,468) (14,711)
Proceeds from issuance of shares 389,019 738
------- --------
Net cash provided by (used in)
financing activities 321,551 (16,416)
------- --------
Net increase (decrease) in cash
and cash equivalents 148,906 (702)
Effect of exchange rate changes
on cash and cash equivalents (3,953) (257)
Cash and cash equivalents at
beginning of the period 16,568 141,733
------ -------
Cash and cash equivalents at
end of the period $ 161,521 $ 140,774
======= =======
SUPPLEMENTARY CASH FLOW INFORMATION
Cash paid for:
Interest $ 3,045 $ 1,418
Income taxes $ 461 $ 2,971
About ST Assembly Test Services Ltd. (STATS) ST Assembly Test Services ("STATS" - NNM: STTS and SGX: ST Assembly), is a leading semiconductor test and assembly service provider to 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. , integrated device manufacturers and wafer foundries. With its principal operations in Singapore and global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. 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. , United Kingdom, Japan and Taiwan, STATS offers full back-end (programming) back-end - Any software performing either the final stage in a process, or a task not apparent to the user. A common usage is in a compiler. A compiler's back-end generates machine language and performs optimisations specific to the machine's architecture. turnkey solutions to customers worldwide. STATS' expertise is in testing mixed-signal semiconductors, which are extensively used in fast growing communications applications such as data networking, broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). and mobile communications. STATS also offers advanced assembly services and has developed a wide array of traditional and advanced leadframe and laminate laminate, n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. based products, including various ball grid array “BGA” redirects here. For other uses, see BGA (disambiguation). A ball grid array (BGA) is a type of surface-mount packaging used for integrated circuits. packages to serve some of the world's technological leaders. STATS was listed on the Nasdaq National Market and 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 in January January: see month. 2000 and is in the Morgan Stanley Capital International Morgan Stanley Capital International (MSCI) This firm publishes a number of well known benchmarks, such as the MSCI World Index. (MSCI) Provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. Singapore Index and the Straits Times Industrial Index. Further information is available at www.stts.com. Certain of the statements in this press release are 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. including statements with respect to industry growth, that involve a number of risks and uncertainties which could cause actual results to differ materially. Factors that could cause actual results to differ include : general business and economic conditions and the state of the semiconductor industry; demand for end-use applications products such as communications equipment and personal computers; decisions by customers to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: outsourcing of test and assembly services; changes in customer order patterns; rescheduling or cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of customer orders; changes in product mix; 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. ; level of competition; pricing pressures; continued success in technological innovation; delays in acquiring or installing new equipment; litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other risks described from time-to-time in the Company's SEC filings, including its annual report on Form 20-F dated March 30, 2001. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. |
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