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CHARTERED UPDATES OUTLOOK FOR SECOND QUARTER 2001
SINGAPORE - May 22, 2001 - Chartered Semiconductor
Manufacturing (Nasdaq: CHRT and SGX-ST: CHARTERED) today
announced that due to weaker-than-expected market conditions,
revenues and earnings for the company's second quarter
will be below its earlier guidance.
"Like so many others in the semiconductor industry,
we have found it to be particularly difficult to forecast
near-term revenue trends this year due to weakening
economic conditions and the prolonged process of bringing
inventories into balance throughout the supply chain,"
said Chia Song Hwee, senior vice president, CFO & CAO
of Chartered. "Our customers have very low near-term
visibility, and consequently many have found it necessary
to continually adjust their ordering levels. This trend
is most apparent with our customers who are in the communications
market, which made up approximately one-half of our
business base in 2000."
Based on the company's current assessment, revenues
for the second quarter will be down approximately 48%
from the first quarter of 2001. This compares to prior
guidance of a 25% decline. Average factory utilization
is expected to be in the low 30s, and it is now anticipated
that for the quarter, the company will record a loss
in the range of US$0.76 to US$0.78 per American Depositary
Share (ADS). This compares to prior guidance of a loss
of US$0.50 to US$0.52 per ADS.
"Given the current turbulent market environment, it
is difficult to predict revenue trends in the coming
quarters for both the industry and Chartered. Our belief
continues to be that based on historical patterns and
on the severity of the decline seen in the first two
quarters of 2001, Chartered's revenues will increase
sequentially in both the third quarter and the fourth
quarter," said Barry Waite, president & CEO of Chartered.
The company will host a conference call related to this
announcement at 9:00a.m. today, May 22, 2001, Singapore
time, which is May 21, 6:00p.m. Pacific Time in the
US. Participants will be Barry Waite, president & CEO,
and Chia Song Hwee, senior vice president, CFO & CAO.
The call will be webcast at http://www.charteredsemi.com/investor/index_investor.htm
and will be archived for playback on the Web site through
May 29, Singapore time.
Chartered anticipates reporting the results of its second
quarter on Friday, July 20, Singapore time.
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 substantially
completed sixth fab that is in the process of being
equipped as a 300mm facility.
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 2000 revenues of over
US$1.1 billion. More than 4,300 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 without
limitation, statements relating to Company's performance
in the second quarter of 2001 and for the remainder
of 2001 and the statements relating to the near-term
and longer-term market outlook and company growth, 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. Among the factors that could cause actual
results to differ materially are: changes in market
outlook and trends; changes in economic fundamentals;
customer demands; the successful implementation of our
partnership, technology and supply alliances; unforeseen
delays or interruptions in the construction and ramp
up of our fabrication facilities; the performance level
of our fabrication facilities; availability of materials,
equipment, manpower and timely regulatory approvals,
the availability of financing and terms thereof and
the continued success in technological advances. Although
the Company believes the expectations reflected in such
forward looking statements are based upon reasonable
assumptions, it can give no assurance that these expectations
will be attained. In addition to the foregoing factors,
a description of certain other risks and uncertainties
which could cause actual results to differ materially
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. You are
cautioned not to place undue reliance on these forward-looking
statements, which are based on management's current
view of future events. 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.
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