Chartered reiterates 2Q guidance: Flat sales, profits evaporating

June 8, 2007 – Singapore foundry Chartered Semiconductor says its second quarter “is essentially progressing in line” with what the company originally projected at the end of 1Q — meaning essentially flat revenues Q-Q ($323M +/- $6M), and profits continuing to slide to somewhere between $5M and breakeven.

In its initial April 27 forecast, Chartered said it expected utilization rates to climb back to somewhere in between 74%-80%, vs. 70% in 1Q (which was flat with 4Q), and wafer shipments rebounding 15% after inching up 1% in 1Q. Average selling prices were seen continuing to sink, however, following a 5.6% decline in 1Q with a bigger 12%-16% decline (to around $902-$942/wafer).

Chartered also had projected its capacity would rise 4.5% in 2Q07 to 483,000 wafers (200mm equivalent), almost entirely due to additions at its Fab 2 and Fab 7 facilities.


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