Is it true that 8 out 10 staff in CSM are FTrash?
<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published November 1, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Chartered posts Q3 net loss of US$24.4m
'Temporary salary reduction' of 5-20% for staff of Singapore foundry
By ONG BOON KIAT
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>
CHARTERED Semiconductor Manufacturing, which is facing slowing demand, reported a third-quarter net loss of US$24.4 million yesterday, falling from a net profit of US$114.8 million in the year-ago quarter. This translates to a net loss of one US cent per share for the three months ended Sept 30, compared with a net profit of four US cents per share previously.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>FEELING THE HEAT
The negative macroeconomic environment that has been prevailing for several months and the resulting difficult market conditions are finally impacting the foundry industry, says Mr Chia</TD></TR></TBODY></TABLE>The contract chip maker added that, starting November, it is implementing a 5-20 per cent 'temporary salary reduction' for its employees. This company-wide exercise will include the senior management team.
'The challenge that we face is the slowing down of demand coming into Q4 2008,' Chartered president and CEO Chia Song Hwee told BT in an interview.
The salary-trimming exercise, together with other expected payroll reductions, will help Chartered save between US$25 million and US$30 million on an annual basis, Mr Chia said.
Chartered's Q3 revenue rose 30.7 per cent to US$463.7 million, from US$354.8 million for the year-ago period.
<TABLE cellSpacing=0 cellPadding=5 width=120 align=left border=0><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=4 width=200 align=left border=0><TBODY><TR bgColor=#4e6e78><TD colSpan=2 height=8>[FONT=Verdana, Arial, Helvetica, sans-serif]Related link: </TD></TR><TR bgColor=#d5e9f1><TD>
</TD><TD>[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-2]Click here for Chartered's news release[/SIZE][/FONT]</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>Taking into account its share of the minority-owned joint-venture fab SMP, Q3 revenue was US$487.2 million, up 27.6 per cent from US$381.8 million in the year-ago quarter.
The company incurred higher expenses year on year on several fronts. R&D expenses rose 13.5 per cent to US$44.2 million; general and administrative expenses rose 19.8 per cent to US$11.2 million, due primarily to higher payroll-related expenses; while sales and marketing expenses climbed 33.4 per cent to US$19.5 million.
In the company's earlier guidance, a reduction in wafer starts and higher depreciation of a plant were listed as adverse factors that would crimp margins in Q3. Yesterday, Chartered said that orders have been declining since mid-August, and that some of its customers have requested to push their deliveries forward.
'The negative macroeconomic environment that has been prevailing for several months and the resulting difficult market conditions are finally impacting the foundry industry,' Mr Chia said.
To tackle the looming challenges, the company has laid out three near-term priorities.
The first is to - through optimising product mix, improving efficiency and reducing cost - lower the company's breakeven utilisation rate, to around 75 per cent by year-end.
This means Chartered can be expected to break even operationally when it hits this mark, and earn operating income if it exceeds it. The company's utilisation rate for its Q3 period is at around 85 per cent.
The company also intends to focus on 'positioning for early phase of demand recovery' and 'preserving our cash and liquidity position'.
For Q4, the company expects to see revenue of between US$362 million and US$374 million, and a net loss of between US$52 million and US$62 million.
Chartered has had two profitable quarters to start its year - with net income of US$43.4 million and US$2.4 million for Q2 and Q1 respectively.
Chartered shares closed half a cent lower at 22.5 Singapore cents yesterday. [/FONT]
</TD></TR></TBODY></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published November 1, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Chartered posts Q3 net loss of US$24.4m
'Temporary salary reduction' of 5-20% for staff of Singapore foundry
By ONG BOON KIAT
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>CHARTERED Semiconductor Manufacturing, which is facing slowing demand, reported a third-quarter net loss of US$24.4 million yesterday, falling from a net profit of US$114.8 million in the year-ago quarter. This translates to a net loss of one US cent per share for the three months ended Sept 30, compared with a net profit of four US cents per share previously.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>FEELING THE HEATThe negative macroeconomic environment that has been prevailing for several months and the resulting difficult market conditions are finally impacting the foundry industry, says Mr Chia</TD></TR></TBODY></TABLE>The contract chip maker added that, starting November, it is implementing a 5-20 per cent 'temporary salary reduction' for its employees. This company-wide exercise will include the senior management team.
'The challenge that we face is the slowing down of demand coming into Q4 2008,' Chartered president and CEO Chia Song Hwee told BT in an interview.
The salary-trimming exercise, together with other expected payroll reductions, will help Chartered save between US$25 million and US$30 million on an annual basis, Mr Chia said.
Chartered's Q3 revenue rose 30.7 per cent to US$463.7 million, from US$354.8 million for the year-ago period.
<TABLE cellSpacing=0 cellPadding=5 width=120 align=left border=0><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=4 width=200 align=left border=0><TBODY><TR bgColor=#4e6e78><TD colSpan=2 height=8>[FONT=Verdana, Arial, Helvetica, sans-serif]Related link: </TD></TR><TR bgColor=#d5e9f1><TD>
The company incurred higher expenses year on year on several fronts. R&D expenses rose 13.5 per cent to US$44.2 million; general and administrative expenses rose 19.8 per cent to US$11.2 million, due primarily to higher payroll-related expenses; while sales and marketing expenses climbed 33.4 per cent to US$19.5 million.
In the company's earlier guidance, a reduction in wafer starts and higher depreciation of a plant were listed as adverse factors that would crimp margins in Q3. Yesterday, Chartered said that orders have been declining since mid-August, and that some of its customers have requested to push their deliveries forward.
'The negative macroeconomic environment that has been prevailing for several months and the resulting difficult market conditions are finally impacting the foundry industry,' Mr Chia said.
To tackle the looming challenges, the company has laid out three near-term priorities.
The first is to - through optimising product mix, improving efficiency and reducing cost - lower the company's breakeven utilisation rate, to around 75 per cent by year-end.
This means Chartered can be expected to break even operationally when it hits this mark, and earn operating income if it exceeds it. The company's utilisation rate for its Q3 period is at around 85 per cent.
The company also intends to focus on 'positioning for early phase of demand recovery' and 'preserving our cash and liquidity position'.
For Q4, the company expects to see revenue of between US$362 million and US$374 million, and a net loss of between US$52 million and US$62 million.
Chartered has had two profitable quarters to start its year - with net income of US$43.4 million and US$2.4 million for Q2 and Q1 respectively.
Chartered shares closed half a cent lower at 22.5 Singapore cents yesterday. [/FONT]
</TD></TR></TBODY></TABLE>
