|
|
 |
|
|
-
Printable Version
-
-
CHARTERED REPORTS RECORD THIRD-QUARTER 2000 RESULTS
-
-
Strong Third-Quarter Performance Due To Higher Wafer
Shipments, Improved Productivity and Richer Mix
-
- *All
currency figures stated in this news release are in
US dollars
-
-
-
Revenues of $305.6 million, up 67% from 3Q 1999
-
Earnings per ADS of $0.51, up $0.57 from 3Q 1999
-
Earnings per ordinary share of $0.05, up $0.06
from 3Q 1999
-
-
SINGAPORE -- October 19, 2000 -- Chartered Semiconductor
Manufacturing (Nasdaq: CHRT and SGX-ST: CHARTERED) today
announced record revenues and net income for its third-quarter
ended September 30, 2000, marking the seventh consecutive
quarter of solid growth and improved financial performance.
-
- "Our
strong third-quarter results reflect both our ability
to successfully execute our strategies in high growth
targeted markets and to make step function improvements
toward operational excellence in our fabs. The focus
and dedication of Chartered employees worldwide has
allowed the company to deliver financial performance
unequaled in our history," reported Barry Waite, president
& CEO of Chartered, summarizing the results of the quarter.
-
-
Highlights of Third-Quarter Performance
-
-
- Net
revenues grew to $305.6 million for third-quarter
2000, up 67% compared to $183.3 million in third-quarter
1999. The significant increase in revenues was due
primarily to higher shipments, improved customer
and product mix, and to a lesser extent, enhanced
pricing. Including Chartered's share of its minority-owned
joint-venture company, net revenues were $328.8
million, up 79% from $183.8 million in the same
quarter a year ago.
- Gross
profit was $103.6 million, or 33.9% of net revenues,
up from $48.4 million, or 26.4% of net revenues,
in the same quarter a year ago, driven primarily
by higher revenues and strong operational improvement
across our fabs. Without the start-up related impact
of Chartered Silicon Partners (Fab 6), gross profit
margin would have been approximately 8 percentage
points higher.
- Recurring
operating expenses as a percentage of net revenues
were 16.0% compared to 17.7% in third-quarter 1999.
Research and development (R&D) expense increased
by $3.9 million primarily due to additional investments
in next generation technology and modules in support
of our strategy to provide a full suite of process
technologies necessary for enabling system level
integration. General and administrative (G&A) expenses
increased $12.7 million due primarily to increased
staffing and other payroll related expenses.
- Nonrecurring
operating expenses were $13.6 million in third-quarter
2000 compared to $8.8 million in third-quarter last
year. Pre-production start-up costs in Fab 7 were
$1.6 million in the third quarter. Stock-based compensation
charges were $0.5 million compared to $8.8 million
in third-quarter 1999. This quarter also included
a provision of $11.6 million for the estimated impact
on a licensing agreement resulting from faster technology
migration in the marketplace and the recent acceleration
of Chartered's technology roadmap.
- Equity
in income of our joint venture fab, Silicon Manufacturing
Partners (Fab 5) was $5.0 million compared to a
loss of $6.6 million in the comparable period last
year, reflecting the fab's continuing progress in
executing its manufacturing ramp. Other income was
$4.8 million compared to $0.1 million in the same
period last year, primarily due to grant income
related to our R&D and training activities. Net
interest income was $12.0 million compared to a
net expense of $4.1 million in the same period last
year, primarily due to the receipt of proceeds from
the company's initial public offering in October
1999 and the follow-on offering in May 2000.
- Net
income of $71.6 million, or 23.4% of net revenues,
reflected an improvement of $77.8 million from negative
$6.2 million, or negative 3.4% of net revenues,
in the same quarter a year ago. Net income, after
excluding stock-based compensation charges was $72.1
million in third-quarter 2000 compared to $2.7 million
in third-quarter 1999.
- Earnings
per American Depositary Share (ADS) and earnings
per share (EPS) in third-quarter 2000 were $0.51
and $0.05 respectively on a diluted basis, compared
with a loss of $0.06 and $0.01 respectively in third-quarter
1999. Earnings per American Depositary Share (ADS)
and earnings per share (EPS), after excluding stock-based
compensation charge were $0.52 and $0.05 respectively
on a diluted basis, compared with $0.03 and $0.003
respectively in third-quarter 1999. Average diluted
ADS count and ordinary share count increased by
41.0 million and 409.7 million respectively, primarily
due to the initial public offering in October 1999
and the follow-on offering in May 2000.
-
-
Wafer Shipments and Average Selling Prices
-
- Shipments
in third-quarter 2000 were 246.0 thousand wafers
(eight-inch equivalent), an increase of 39% compared
to 176.8 thousand in third-quarter 1999. High growth
communications and consumer markets accounted for
the majority of this increased demand.
-
Average Selling Price (ASP) increased by 22% to
$1,242 per wafer in third-quarter 2000 compared
to $1,014 per wafer (adjusted to exclude the terminated
print-head business) in third-quarter 1999. ASP
improved as a result of customer and product mix
enrichment and enhanced pricing.
- Capacity
utilization was 103% in third-quarter of the year,
the same as the comparable quarter last year.
- Market
Dynamics
-
-
The communications segment continued to be the largest
contributor to revenues, in line with our strategic
emphasis on delivering a suite of technologies and services
centered on the needs of the communications markets.
-
- "Our
strong first quarter results reflect the continued execution
of our strategies for better serving the communications
markets while continuing to push for operational excellence.
We have gained additional margin benefits from improved
operating leverage as each of our fabs was able to achieve
higher output and efficiencies" said Barry Waite, President
& CEO of Chartered, summarizing the results of the
quarter.
-
- Wafer
Shipments and Average Selling Prices
- Shipments
in first-quarter 2000 were 210.1 thousand wafers (eight-inch
equivalent), an increase of 37% compared to 153.8 thousand
in first-quarter 1999. This was primarily due to the
addition of new customers and higher demand resulting
from what the Company believes is the increased trend
toward outsourcing by Integrated Device Manufacturers
(IDMs) and System OEMs. Average selling prices (ASPs)
improved in first-quarter 2000 compared to the same
period last year primarily as a result of wafer shipments
with a higher mix of advanced technologies. ASPs increased
by 24% to $1,134 per wafer in first-quarter 2000 compared
to $916 per wafer (adjusted to exclude the terminated
print-head business) in first-quarter 1999. On a comparable
basis, ASP in fourth-quarter 1999 was $1,108, with a
product mix similar to that of the first-quarter 2000.
-
- Market
Dynamics
- The
Company continued to make good progress in moving its
product mix toward value-added systems-level technologies.
For the twelve months ending March 31, 2000, 48% of
net revenues came from the communications market segment
compared to 44% in the twelve months ending December
31, 1999. This trend was also reflected geographically
as Europe, with its high concentration of IDMs and systems
companies serving the global communications market,
continued to record the fastest growth.
-
-
Revenue Breakdown by Market Segment*
-
| |
Twelve
months ending
|
| |
June
30, 2000
|
September 30, 2000
|
|
Market
Segment
|
%
of Net revenues
|
%
of Net revenues
|
|
Communications
|
52
|
52
|
|
Computer
|
25
|
25
|
|
Consumer
|
15
|
15
|
|
Memory
|
7
|
7
|
|
Others
|
1
|
1
|
- *Including
Chartered's share of its minority-owned joint-venture
company
Breakdown by Region*
| |
Twelve
months ending
|
| |
June
30, 2000
|
September 30, 2000
|
|
Region
|
%
of Net revenues
|
%
of Net revenues
|
|
America
|
59
|
58
|
|
Europe
|
24
|
25
|
|
Asia
– Pacific
|
13
|
13
|
|
Japan
|
4
|
4
|
-
- *Including
Chartered's share of its minority-owned joint-venture
company
Highlights of Third-Quarter Activities and Achievements
-
- During
the quarter the company announced five supply agreements,
exemplifying the success and breadth of its partnering
strategy.
- Broadcom of the U.S for leading-edge logic and
mixed signal for communications
- Dialog of Germany for mixed signal and system-on-chip
for communications
- Oki of Japan for RFCMOS development and production
for Bluetooth applications
- Ricoh of Japan for logic for computer peripherals
and optical mass storage
- Conexant of the U.S, a memorandum of understanding
for leading-edge logic and mixed signal for communications
- The
company also announced during the quarter a landmark,
five year, $700 million joint development agreement
with Lucent Technologies Microelectronics Group.
The non-exclusive agreement brings together a global
team of 600 people to develop logic, mixed signal
and embedded SRAM process technologies at the 0.13-micron,
0.10-micron and 0.08-micron technology nodes. A
key aspect of this agreement is the establishment
of a jointly staffed Bell Labs R&D center on Chartered's
campus in Singapore. Chartered believes its "communications-smart"
approach to silicon manufacturing will produce robust,
reliable solutions that are especially well suited
for communications products as well as for consumer
and computer peripheral electronics.
- In
September, Chartered Silicon Partners (Fab 6), one
of company's joint venture fabs, successfully concluded
a 6-year term loan and guarantee facility for $820
million funded by a syndicate of leading banks.
Funds will be used, as required, primarily for funding
its capacity ramp.
-
-
Review and Outlook
- Progress
in recent years has clearly placed Chartered in the
top tier of foundry service providers. Chartered has
moved rapidly toward operational excellence in its fabs,
and its facilities today successfully compete with the
best in the industry. Our leveraged R&D and joint venture
agreements provide both strength and reduced risk, and
our newly accelerated technology roadmap provides a
clear, customer-driven path through the next series
of product generations necessary to support the growth
opportunities in future years.
-
- "Perhaps
more than anything else, Chartered highly values its
interdependent customer relationships which are built
on a level of trust which tightly couples us to leaders
in communications and other high growth markets. We've
never felt better about our strategic positioning and
ability to take advantage of the long term growth in
both the communications and the foundry services markets,"
concluded Barry Waite.
-
-
 -
 - Notes
for Statement of Operations:
-
- Note
(1)
- The
equity accounting method was applied for the investment
in CSP in the period prior to October
1,1999. From October 1, 1999 forward, CSP was treated
as a consolidated subsidary
-
- Note
(2)
- Chartered's
capital expenditures and equity investments in Fab 5
net of equity inflow from Fab 6 partners (assumes consolidated
reporting of Fab 6 in 1999)
-
About Chartered
-
Chartered
Semiconductor Manufacturing is one of the world's
top three silicon foundries. The Company's business
model is distinguished by its strategy to build trusted
long-term relationships, where manufacturing is part
of a larger customer-service focus that includes joint
development and implementation of new process technologies
supporting novel applications within the broad communications
market. Chartered operates five semiconductor fabrication
facilities at its Singapore headquarters, with a sixth
fab under construction.
-
-
A
company with both global presence and perspective,
Chartered is traded on both the Nasdaq Stock Market
in the United States (NASDAQ:CHRT) and on the Singapore
Exchange Securities Trading Limited in Singapore (SGX-ST:CHARTERED).
The Company reported 1999 revenues of US$694.3 million.
More than 3400 Chartered employees are based at 11
locations around the world. Information about Chartered
Semiconductor Manufacturing can be found at www.charteredsemi.com
-
-
Safe Harbor Statement under the provisions of the
United States Private Securities Litigation Reform
Act of 1995
-
This
news release contains forward-looking statements,
as defined in the safe harbor provisions of the United
States Private Securities Litigation Reform Act of
1995. These forward-looking statements, including
the statements relating to the Company's continued
ability to implement its partnering, technology and
growth strategies, the Company's emphasis on the communications
market, the success of the Lucent joint development
agreement, the outlook for longer-term growth in the
communications and foundry services market and the
appropriateness of the Company's business model and
strategy, reflect the Company's current views with
respect to future events and financial performance,
and are subject to certain risks and uncertainties,
which could cause actual results to differ materially
from historical results or those anticipated. For
example, the forward looking statements could be affected
by the Company's continued ability to maintain the
performance levels of all its fabs; the amendment
or termination of the Lucent joint development agreement;
unforeseen delays or difficulties in the implementation
of the Company's technology roadmap, the Lucent joint
development agreement, the Company's R&D, JV or supply
agreements or the $820 million facility for Fab 6;
and changes in the semiconductor industry, market
outlook or customer demands. Although the Company
believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions,
it can give no assurance that its expectations will
be attained. A description of certain of the risks
and uncertainties which could cause actual results
to differ materially from those indicated in the forward-looking
statements can be found in the section captioned "Risk
Factors" in the Company's Annual Report on Form 20-F
filed with the U.S. Securities and Exchange Commission.
The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
-
-
-
|
|
|
|
