<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Chartered forecasts slightly lower losses
</TR><!-- headline one : end --><TR>It sees 60% rise in sales in second quarter but analysts are less upbeat </TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->LOS ANGELES: - Chartered Semiconductor Manufacturing has revised upwards its guidance for the current quarter, in another sign of a possible recovery in the chip sector.
Chartered said on Thursday that it now expected second-quarter revenue to rise about 60 per cent from its first-quarter revenue of US$244 million (S$355.8 million), clocking in at about US$338 million to US$348 million.
It also now expects to incur a loss of about US$45 million to US$53 million in the current three months, compared to its previous forecast of a US$54 million to US$64 million loss.
'Compared to our expectation in April, we are seeing incremental improvement in our business, mainly coming from our mature technologies,' finance director George Thomas said in a statement.
Investors and analysts were unimpressed with the revised guidance. Chartered's Singapore-traded shares rose three cents to close at $2.36 yesterday.
'Demand is still weak, it's just less bad than it was before,' said Mr Patrick Yau, an analyst at Macquarie Securities who has a 'neutral' call on the stock.
'The industry as a whole is still bleeding, and it's important to note that while things are improving, we won't be seeing record profits any time soon.'
Chartered's share price has almost doubled since the beginning of the year, outpacing the mainboard as investors bet that the semiconductor equipment industry will recover soon.
The company's revised guidance was in line with that given by market leaders Taiwan Semiconductor Manufacturing and United Microelectronics Corp, which have also been experiencing a revival on some inventory restocking and an increase in client demand.
At the same time, other technology companies ranging from PC makers to LCD panel manufacturers have been reporting a similar comeback, with many optimistic on their prospects in the second half of the year as the global downturn eases.
'We believe that both monitor and TV panel prices could continue to rise steadily, with some supply tightness in popular screen sizes in the near term,' PC monitor maker TPV Technology chairman Jason Hsuan said on Wednesday, while announcing the company's results.
Chartered has shored up its financial position. In April, it raised about US$300 million from a rights issue. Its 27-for-10 rights issue, at seven cents apiece, had drawn a strong response, with the issue being oversubscribed.
Early this year, the company had announced that it would cut 600 jobs, as customers slashed orders amid the global economic slowdown. REUTERS
</TR><!-- headline one : end --><TR>It sees 60% rise in sales in second quarter but analysts are less upbeat </TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->LOS ANGELES: - Chartered Semiconductor Manufacturing has revised upwards its guidance for the current quarter, in another sign of a possible recovery in the chip sector.
Chartered said on Thursday that it now expected second-quarter revenue to rise about 60 per cent from its first-quarter revenue of US$244 million (S$355.8 million), clocking in at about US$338 million to US$348 million.
It also now expects to incur a loss of about US$45 million to US$53 million in the current three months, compared to its previous forecast of a US$54 million to US$64 million loss.
'Compared to our expectation in April, we are seeing incremental improvement in our business, mainly coming from our mature technologies,' finance director George Thomas said in a statement.
Investors and analysts were unimpressed with the revised guidance. Chartered's Singapore-traded shares rose three cents to close at $2.36 yesterday.
'Demand is still weak, it's just less bad than it was before,' said Mr Patrick Yau, an analyst at Macquarie Securities who has a 'neutral' call on the stock.
'The industry as a whole is still bleeding, and it's important to note that while things are improving, we won't be seeing record profits any time soon.'
Chartered's share price has almost doubled since the beginning of the year, outpacing the mainboard as investors bet that the semiconductor equipment industry will recover soon.
The company's revised guidance was in line with that given by market leaders Taiwan Semiconductor Manufacturing and United Microelectronics Corp, which have also been experiencing a revival on some inventory restocking and an increase in client demand.
At the same time, other technology companies ranging from PC makers to LCD panel manufacturers have been reporting a similar comeback, with many optimistic on their prospects in the second half of the year as the global downturn eases.
'We believe that both monitor and TV panel prices could continue to rise steadily, with some supply tightness in popular screen sizes in the near term,' PC monitor maker TPV Technology chairman Jason Hsuan said on Wednesday, while announcing the company's results.
Chartered has shored up its financial position. In April, it raised about US$300 million from a rights issue. Its 27-for-10 rights issue, at seven cents apiece, had drawn a strong response, with the issue being oversubscribed.
Early this year, the company had announced that it would cut 600 jobs, as customers slashed orders amid the global economic slowdown. REUTERS
