SINGAPORE--10/27/2009, UNITED STATES--(Marketwire - October 27, 2009) - STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading
semiconductor test and advanced packaging service provider, today announced
results for third quarter 2009.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said,
"We had a good third quarter. Revenue for third quarter of 2009 increased
by 21.5% to $389.8 million compared to prior quarter and decreased by 17.5%
over the third quarter of 2008. Our third quarter revenue growth reflected
continued improvement in the semiconductor industry. As a result of
realized savings from our cost reduction efforts, our profitability in the
third quarter was significantly better than the prior quarter and the third
quarter of 2008."
Net income for third quarter of 2009 was $25.1 million or $0.01 of net
income per diluted ordinary share, compared to net income of $2.2 million
or $0.00 per diluted ordinary shares in the prior quarter, and $7.9 million
or $0.00 of net income per diluted ordinary share in the third quarter of
2008.
John Lau, Chief Financial Officer of STATS ChipPAC, said, "Our gross margin
in third quarter of 2009 was 20.2% compared to 15.1% in the prior quarter,
and 18.5% in the third quarter of 2008. Operating margin for third quarter
of 2009 was 9.4% of revenue, compared to 4.7% in the prior quarter, and
4.6% in the third quarter of 2008. Capital spending in the third quarter of
2009 was $40.9 million or 10.5% of revenue compared to $97.3 million or
20.6% of revenue in the third quarter of 2008. We ended the third quarter
of 2009 with $348.0 million of cash, cash equivalent and marketable
securities and $468.2 million of debt, compared to $352.8 million and
$473.5 million, respectively, as of the fourth quarter of 2008."
Forward-looking Statements
Certain statements in this release are forward-looking statements that
involve a number of risks and uncertainties that could cause actual events
or results to differ materially from those described in this release.
Factors that could cause actual results to differ include, but are not
limited to, extent of deterioration in general business and economic
conditions and the state of the semiconductor industry; prevailing market
conditions; demand for end-use applications products such as communications
equipment, consumer and multi-applications and personal computers;
decisions by customers to discontinue outsourcing of test and packaging
services; level of competition; our reliance on a small group of principal
customers; our continued success in technological innovations; customer
credit risks; possible future application of push-down accounting; pricing
pressures, including declines in average selling prices; intellectual
property rights disputes and litigation; our ability to control operating
expenses; our substantial level of indebtedness and access to credit
markets; our ability to generate cash; potential impairment charges;
availability of financing; adverse tax and other financial consequences if
the taxing authorities do not agree with our interpretation of the
applicable tax laws; classification of the Company as a passive foreign
investment company; our ability to develop and protect our intellectual
property; rescheduling or canceling of customer orders; changes in our
product mix; our capacity utilization; delays in acquiring or installing
new equipment; limitations imposed by our financing arrangements which may
limit our ability to maintain and grow our business; returns from research
and development investments; changes in customer order patterns; shortages
in supply of key components; disruption of our operations; loss of key
management or other personnel; defects or malfunctions in our testing
equipment or packages; changes in environmental laws and regulations; our
ability to meet specific conditions imposed for the continued listing or
delisting of our ordinary shares under the Singapore Exchange Securities
Trading Limited ("SGX-ST"); exchange rate fluctuations; regulatory
approvals for further investments in our subsidiaries; majority ownership
by Temasek Holdings (Private) Limited ("Temasek") that may result in
conflicting interests with Temasek and our affiliates; unsuccessful
acquisitions and investments in other companies and businesses; labor union
problems in South Korea; uncertainties of conducting business in China and
changes in laws, currency policy and political instability in other
countries in Asia; natural calamities and disasters, including outbreaks of
epidemics and communicable diseases; and other risks described from time to
time in the Company's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F dated March 9, 2009.
You should not unduly rely on such statements. We do not intend, and do not
assume any obligation, to update any forward-looking statements to reflect
subsequent events or circumstances.
Our 52-53 week fiscal year ends on the Sunday nearest and prior to December
31. Our fiscal quarters end on a Sunday and are generally thirteen weeks in
length. Our third quarter of 2009 ended on September 27, 2009, while our
third quarter of 2008 and fiscal year 2008 ended on September 28, 2008 and
December 28, 2008, respectively. References to "US GAAP" are to Generally
Accepted Accounting Principles as practiced in the United States of America
and references to "$" are to the lawful currency of the United States of
America.
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging
design, assembly, test and distribution solutions in diverse end market
applications including communications, digital consumer and computing.
With global headquarters in Singapore, STATS ChipPAC has design, research
and development, manufacturing or customer support offices in 10 different
countries. STATS ChipPAC is listed on the SGX-ST. Further information is
available at
www.statschippac.com. Information contained in this website
does not constitute a part of this release.
STATS ChipPAC Ltd.
Condensed Consolidated Statements of Operations
(In thousands of U.S. Dollars, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
---------------------------- ----------------------------
September 28, September 27, September 28, September 27,
2008 2009 2008 2009
------------- ------------- ------------- -------------
Net revenues $ 472,191 $ 389,768 $ 1,333,575 $ 930,951
Cost of
revenues (384,829) (311,161) (1,096,985) (806,113)
------------- ------------- ------------- -------------
Gross profit 87,362 78,607 236,590 124,838
Operating
expenses:
Selling,
general and
administrative 29,296 26,714 89,378 70,827
Research and
development 10,100 12,044 29,384 29,440
Restructuring
charges 5,130 3,139 6,030 16,072
Equipment
impairment 21,091 - 21,091 -
Accelerated
share-based
compensation - - 1,562 -
------------- ------------- ------------- -------------
Total
operating
expenses 65,617 41,897 147,445 116,339
------------- ------------- ------------- -------------
Operating
income 21,745 36,710 89,145 8,499
Other income
(expenses),
net (7,340) (11,090) (17,465) (32,255)
------------- ------------- ------------- -------------
Income (loss)
before income
taxes 14,405 25,620 71,680 (23,756)
Income tax
benefit
(expense) (4,921) 315 (19,550) (467)
------------- ------------- ------------- -------------
Net income
(loss) 9,484 25,935 52,130 (24,223)
Less: Net
(income) loss
attributable
to the
noncontrolling
interest (1,602) (873) (4,279) 441
------------- ------------- ------------- -------------
Net income
(loss)
attributable
to STATS
ChipPAC Ltd. $ 7,882 $ 25,062 $ 47,851 $ (23,782)
============= ============= ============= =============
Net income
(loss) per
ordinary share
attributable
to STATS
ChipPAC Ltd.:
Basic $ 0.00 $ 0.01 $ 0.02 $ (0.01)
Diluted $ 0.00 $ 0.01 $ 0.02 $ (0.01)
Ordinary shares
(in thousands)
used in per
ordinary share
calculation:
Basic 2,202,163 2,202,218 2,124,512 2,202,218
Diluted 2,204,307 2,202,236 2,127,594 2,202,218
Key Ratios and
Information:
Gross Margin 18.5% 20.2% 17.7% 13.4%
Operating Expenses
as a % of Revenue 13.9% 10.8% 11.0% 12.5%
Operating Margin 4.6% 9.4% 6.7% 0.9%
Depreciation &
Amortization,
including
Amortization of
Debt Issuance
Costs $ 73,227 $ 67,201 $ 218,052 $ 201,180
Capital
Expenditures $ 97,262 $ 41,156 $ 216,579 $ 82,999
STATS ChipPAC Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)
December 28, September 27,
2008 2009
------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 337,230 $ 330,897
Accounts receivable, net 139,520 208,408
Inventories 60,717 61,343
Other current assets 33,841 35,227
------------- -------------
Total current assets 571,308 635,875
Marketable securities 15,587 17,110
Property, plant and equipment, net 1,216,342 1,104,852
Investment in equity investee 9,001 7,654
Goodwill and intangible assets 595,894 592,631
Other non-current assets * 38,931 31,072
------------- -------------
Total assets $ 2,447,063 $ 2,389,194
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and other payables $ 148,931 $ 171,499
Other current liabilities 152,836 108,099
Short-term debts 76,953 218,601
------------- -------------
Total current liabilities 378,720 498,199
Long-term debts 396,500 249,637
Other non-current liabilities 64,144 52,245
------------- -------------
Total liabilities 839,364 800,081
------------- -------------
STATS ChipPAC Ltd. shareholders' equity 1,548,657 1,531,631
------------- -------------
Noncontrolling interest 59,042 57,482
------------- -------------
Total liabilities and equity $ 2,447,063 $ 2,389,194
------------- -------------
* Includes $0.4 million and $1.0 million of non-current restricted cash as
of September 27, 2009 and December 28, 2008, respectively.
STATS ChipPAC Ltd.
Other Supplemental Information
(Unaudited)
3Q 2008 2Q 2009 3Q 2009
Net Revenues by Product Line
Packaging - laminate 58.7% 58.5% 59.4%
Packaging - leaded 17.5% 14.7% 14.4%
Test and other services 23.8% 26.8% 26.2%
-------- -------- --------
100.0% 100.0% 100.0%
======== ======== ========
Net Revenues by End User Market
Communications 51.7% 53.3% 48.6%
Personal Computers 15.8% 17.5% 18.2%
Consumer, Multi-applications and Others 32.5% 29.2% 33.2%
-------- -------- --------
100.0% 100.0% 100.0%
======== ======== ========
Net Revenues by Region
United States of America 71.4% 76.2% 72.4%
Europe 5.2% 3.9% 4.9%
Asia 23.4% 19.9% 22.7%
-------- -------- --------
100.0% 100.0% 100.0%
======== ======== ========
Number of Testers 994 962 973
Number of Wirebonders 4,760 4,596 4,554
Overall Equipment Utilization Rate 70% 51% 60%
Contact Information: Investor Relations Contact:
Tham Kah Locke
Vice President of Corporate Finance
Tel: (65) 6824 7788
Fax: (65) 6720 7826
email:
Media Contact:
Lisa Lavin
Deputy Director of Corporate Communications
Tel: (208) 867 9859
email: