Monday, October 23, 2006
Chartered Semiconductor posted better than expected third quarter results with revenues totaled $355.3 million, a 22.5 percent increase on the prior year. Net income was $24.4 million, a marked turnaround from the $34.5 million loss the third quarter of 2005 and well above guidance of around $11 million.
Utilization for the quarter stayed constant from the previous year at 74 percent.
The company attributed its robust performance to "significant growth" in its computer business, with CEO Chia Song Hwee saying orders from AMD and other new customers were growing "more than enough" to offset weakness in sectors like video game consoles and communications.
Chartered is also drawing strength from leading-edge technologies, with revenues from the 0.13 micron and below nodes advancing.
"Fast growth in advanced technology shipments and the better customer and market diversification we have today enable us to perform better in a soft industry environment," Chia said.
But he acknowledged that an inventory glut affecting many of the firm's customers was unlikely to unwind quickly, saying weakness in the consumer sector was "broad-based" and "expected to result in a muted second half for the foundry industry."
Chartered is predicting sluggish video game console, MP3 player and networking device sales will persist in the fourth quarter, pushing revenues down by about 5 percent.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
