SINGAPORE : Chartered Semiconductor Manufacturing's net profit slumped 76 percent in the first quarter, dragged down by seasonally weak demand and excess inventory affecting the industry, the Singapore chip maker said Friday.
For the three months to March, net profit totalled US$5.34 million, down from US$21.98 million a year ago, the company said in a statement.
Sales fell 8.8 percent to US$323.8 million.
"The revenue decline was primarily due to weakness in the consumer sector and to a lesser extent the computer sector, partially offset by strength in the communications sector," said George Thomas, senior vice president and chief financial officer.
In the first quarter, the company shipped 299,200 wafers, down 6.0 percent from a year ago.
The average selling price for the wafers fell to US$1,071 from US$1,135 in the three months to December, the company said.
Chartered utilised 70 percent of its capacity in the first quarter, down from 82 percent for the same period in 2006.
For the second quarter, the company forecast earnings to range from a net loss of five million dollars to a profit of five million dollars, while sales are expected at US$317 million to US$329 million.
"Barring any severe macro-economic issues which are difficult to predict, we continue to expect growth for the foundry industry in the second half of the year, driven primarily by seasonal strength as well as the continuing depletion of excess inventory across the semiconductor supply chain," said chief executive Chia Song Hwee.
Chartered, which makes built-to-order chips in competition with Taiwan Semiconductor Manufacturing Co, is also listed on the high-tech NASDAQ market in New York and counts US computer giant IBM as among its customers.
For the three months to March, net profit totalled US$5.34 million, down from US$21.98 million a year ago, the company said in a statement.
Sales fell 8.8 percent to US$323.8 million.
"The revenue decline was primarily due to weakness in the consumer sector and to a lesser extent the computer sector, partially offset by strength in the communications sector," said George Thomas, senior vice president and chief financial officer.
In the first quarter, the company shipped 299,200 wafers, down 6.0 percent from a year ago.
The average selling price for the wafers fell to US$1,071 from US$1,135 in the three months to December, the company said.
Chartered utilised 70 percent of its capacity in the first quarter, down from 82 percent for the same period in 2006.
For the second quarter, the company forecast earnings to range from a net loss of five million dollars to a profit of five million dollars, while sales are expected at US$317 million to US$329 million.
"Barring any severe macro-economic issues which are difficult to predict, we continue to expect growth for the foundry industry in the second half of the year, driven primarily by seasonal strength as well as the continuing depletion of excess inventory across the semiconductor supply chain," said chief executive Chia Song Hwee.
Chartered, which makes built-to-order chips in competition with Taiwan Semiconductor Manufacturing Co, is also listed on the high-tech NASDAQ market in New York and counts US computer giant IBM as among its customers.
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