SMIC of China said its net loss decreased to $8.7 million in the first quarter of 2006, compared to a net loss of $15 million in the fourth quarter of 2005 and a deficit of $30 million in the like period a year ago.

Over the last six quarters, SMIC has lost a total of $131.4 million. Sales, meanwhile, increased 5.4 percent in the first quarter of 2006 to $351.1 million from $333.1 million in the prior quarter. In the like period a year ago, SMIC posted sales of $248.8 million.

The company reported a utilization rate of 95 percent in the first quarter of 2006, compared to 93 percent in the previous period and 85 percent a year ago.

Wafer shipments increased to 388,010 units of 8-inch equivalent wafers in 1Q ¡¥06, up 3.1 percent from 376,227 units of 8-inch equivalent wafers in 4Q ¡¥05, and up 36.2 percent from 284,912 8-inch equivalent wafers in 1Q ¡¥05.

''I am pleased to announce that our performance during the first quarter exceeded our expectations as quarterly revenues continued to increase to $351 million during the first quarter helping to narrow our operating loss to $6 million in the first quarter,'' said Richard Chang, president and chief executive, in a statement.

For 2006, total planned capital expenditures will be approximately $1.1 billion and will be adjusted based on market conditions. Revenues for Q2 are expected to increase by 2-to-5 percent over 1Q ¡¥06. Utilization rate for Q2 is expected to be approximately 93-to-95, the company said.

By: DocMemory
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