On July 27, the foundry announced that it had posted a net loss--its first in almost two years--of $24.7 million, down from a $12.9 million profit one year ago. Revenues came in at $324.3 million, an 11 percent drop from 2006.

President and CEO Chia Song Hwee told a conference call that a "mixed bag" of factors were weighing on the firm, with persistent weakness in the PC business at the 90-nm node and a slower than anticipated ramp its 65-nm offerings offsetting the "healthy" growth seen in areas such as digital baseband and PC peripherals.

Chartered also said unanticipated tax expenses, a result of the company's leading-edge technologies registering more non-deductible losses than expected, bit into its earnings.

Nonetheless, its lackluster quarter does not seem likely to be a one-off. Chia admitted the foundry's leading-edge business was facing challenges, noting that he was "disappointed" with the tepid growth outlook Chartered is facing for the rest of the year.

By: Docmemory
Copyright © 2023 CST, Inc. All Rights Reserved