Pure play foundry Chartered Semiconductor Manufacturing has beaten its previous guidance for Q4, with revenues up 32.7 percent sequentially instead of the previous forecast of between 28 percent and 31 percent.

The company today announced Q4 and full year 2003 earnings and made public its capital expenditure plans and earnings projections for 2004.

Revenue grew to $182.8 million in Q4 2003. Chartered narrowed its net loss to $43.2 million in Q4 compared to a net loss of $108.7 in the same quarter a year ago.

"Our revenue growth far outpaced that of the industry in the fourth quarter, and we expect the same in the first quarter of 2004," said Chia Song Hwee, president and CEO, in a statement. "While our growth is partly due to the industry recovery, which accelerated in the second half of 2003, we believe we are beginning to see results from the strategy we put in place in late 2002."

For the year, Chartered's revenue climbed to $551.9 million, a 22.9 percent increase compared to 2002. Chartered also narrowed its full year net loss to $284.8 million, compared to 2002's net loss of $417.1 million.

Average selling price also increased in Q4 to $911, up 1.7 percent from Q3, due to a richer mix, the company said. The ASP represented a decrease of 15.4 percent compared to 2002's price.

Q4 capacity utilization hit 71 percent compared to 39 percent in Q4 2002 and 59 percent in Q3 2003.  For the year, capacity utilization hit 58 percent, up from 37 percent in 2002.

Chartered increased its advanced capacity by 71 percent, while total capacity grew by only 5 percent, as part of the company's capacity revitalization program.

For 2004, Chartered said it planned to spend $700 million in capital expenditures. That spending includes equipping Fab 6 to full capacity and installing a 300mm pilot line in Fab 7.

Chartered expects to turn a profit in Q1 of 2004. Revenues are expected at about $224 million, plus or minus 3 million, the company said. Net income including special items will turn black at $7.4 million plus or minus 5 million, Chartered said in its forecast.

By: DocMemory
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