Chartered: 2Q on track, profit factors will even out

June 10, 2009 – Singapore foundry Chartered Semiconductor Manufacturing says its 2Q08 sales should come in just about as projected, up about 17% to ~$455M. Net income is seen at previously projected levels of ~$6M, as a ~$15M reduction in gross income, due mainly to a buildup of work-in-progress inventory as well as higher depreciation at its Fab 3E and a weak US dollar, should be offset by a tax credit. Other expectations for the quarter remain unchanged: ASPs down ~3% to ~$860, utilization up two ticks to ~88%, and EPS up from breakeven in 1Q to a profit of a penny or two.

Two additional 65nm customers are expected to enter production during the quarter, suggesting that “momentum at that node [will] continue into the latter half of the year as more products enter into production,” said George Thomas, SVP and CFO of Chartered, in a statement.


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