Singapore–ST Assembly Test Services Ltd. (STATS) is now expecting fourth quarter (Q4) revenues to be flat compared to third quarter revenues of US$90.5 million, with diluted earnings per ADS of about $0.06 to $0.07. The revised expectation for revenues represents a reduction from the prior guidance of 8% to 10% sequential revenue growth, reports the company.
“In recent weeks, like many semiconductor companies, we are seeing a downward revision of demand from our customers,” explained Tan Bock Seng, STATS chairman and CEO. “The softening of demand is due primarily to weaknesses in end markets for personal computers and wireless handsets. We expect this downward revision in demand to persist into the first quarter (Q1) of next year. Based on current visibility, we expect Q1 revenues to be down sequentially from this quarter. Our long-term outlook for our business, however, remains positive–driven by growing outsourcing by integrated device manufacturers and fabless semiconductor companies, and our strong position in mixed signal testing and advanced packaging serving communications customers. Despite the weakness in Q4, we expect to finish fiscal full-year 2000 with record revenue and earnings growth in excess of 60% and 1,000%, respectively, over 1999.”