EX-99.1 2 u00630exv99w1.htm EX-99.1 RELEASE OF STATS CHIPPAC LTD. DATED JULY 30, 2010 Ex-99.1
Exhibit 99.1
STATS ChipPAC Reports Second Quarter 2010 Results
Singapore — 7/30/2010, United States — 7/30/2010 — STATS ChipPAC Ltd. (“STATS ChipPAC” or the “Company” — SGX-ST: STATSChP), a leading semiconductor test and advanced packaging service provider, today announced results for the second quarter 2010.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said, “We are pleased with our second quarter performance. Revenue for second quarter of 2010 increased by 35.7% to $435.3 million compared to the second quarter of 2009 and increased by 12.2% over the prior quarter. Our second quarter revenue reflected strong demand across all segments and was better than seasonal trend. As a result of higher savings from cost reduction effort and richer product mix, profitability for the quarter significantly improved over corresponding quarter a year ago.”
Net income for second quarter of 2010 was $37.3 million or $0.02 of net income per diluted ordinary share, compared to $2.2 million or $0.00 per diluted ordinary share in the second quarter of 2009 and net income of $27.5 million or $0.01 of net income per diluted ordinary share in the prior quarter.
John Lau, Chief Financial Officer of STATS ChipPAC, said, “Our gross margin in the second quarter of 2010 was 21.5% compared to 15.1% in the second quarter of 2009 and 20.0% in the prior quarter. Operating margin for second quarter of 2010 was 12.9% of revenue compared to 4.7% in the second quarter of 2009 and 11.2% in the prior quarter. Capital spending in the second quarter of 2010 was $67.7 million or 15.5% of revenue compared to $32.4 million or 10.1% of revenue in the second quarter of 2009, as we continued investments in wafer level packaging and 300mm eWLB manufacturing capacity. We ended the second quarter of 2010 with cash, cash equivalent and marketable securities of $381.1 million and debt of $451.4 million, compared to $368.1 million and $458.0 million, respectively, as of the fourth quarter of 2009.”
The Company has today announced that it has commenced a cash tender offer and consent solicitation in respect of its $213.0 million of 6.75% Senior Notes due 2011 (“Existing Notes”) and is concurrently offering senior notes (“New Notes”) in a private placement in furtherance of its capital reduction plans, details of which are contained in a separate press release.
Forward-looking Statements
Certain statements in this release are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, general business and economic conditions and the state of the semiconductor industry; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; possible future application of push-down accounting;
     
(STATSCHIPPAC LOGO)
  STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

 

 

pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; potential impairment charges; availability of financing; changes in our product mix; our capacity utilization; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; shortages in supply of key components; customer credit risks; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or cancelling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited (“Temasek”) that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labor union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases, the continued trading and listing of our ordinary shares on the Singapore Exchange Securities Trading Limited (“SGX-ST”); and other risks described from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F dated March 5, 2010. You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.
Our 52-53 week fiscal year ends on the Sunday nearest and prior to December 31. Our fiscal quarters end on a Sunday and are generally thirteen weeks in length. Our second quarter of 2010 ended on June 27, 2010, while our second quarter of 2009 and fiscal year 2009 ended on June 28, 2009 and December 27, 2009, respectively. References to “US GAAP” are to Generally Accepted Accounting Principles as practiced in the United States of America and references to “$” are to the lawful currency of the United States of America.
No Offering of New Notes and No Offer to Purchase Existing Notes
This release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from such registration requirements. The Company has not registered and does not intend to register any part of the proposed offering of New Notes in the United States. This release also does not constitute an offer to purchase, a solicitation of an offer to purchase, or a solicitation of tenders or consents with respect to, any Existing Notes.
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.
Investor Relations Contact:
Tham Kah Locke
Vice President of Corporate Finance
Tel: (65) 6824 7788, Fax: (65) 6720 7826
email: kahlocke.tham@statschippac.com
Media Contact:
Lisa Lavin
Deputy Director of Corporate Communications
Tel: (208) 867 9859
email: lisa.lavin@statschippac.com
     
(STATSCHIPPAC LOGO)
  STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

 

 

STATS ChipPAC Ltd.
Condensed Consolidated Statements of Operations
(In thousands of U.S. Dollars, except share and per share data)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 28,     June 27,     June 28,     June 27,  
    2009     2010     2009     2010  
Net revenues
   $ 320,690     $ 435,320     $ 541,183     $ 823,267  
Cost of revenues
     (272,289 )     (341,726 )     (494,952 )     (651,996 )
 
                        
Gross profit
     48,401       93,594       46,231       171,271  
Operating expenses:
                                
Selling, general and administrative
     23,506       25,390       44,113       47,973  
Research and development
     9,771       12,254       17,396       23,792  
Restructuring charges
     —       —       12,933       —  
 
                        
Total operating expenses
     33,277       37,644       74,442       71,765  
 
                        
Operating income (loss)
     15,124       55,950       (28,211 )     99,506  
Other income (expenses), net
     (12,532 )     (7,672 )     (21,165 )     (15,536 )
 
                        
Income (loss) before income taxes
     2,592       48,278       (49,376 )     83,970  
Income tax expense
     (362 )     (8,882 )     (782 )     (15,865 )
 
                        
Net income (loss)
     2,230       39,396       (50,158 )     68,105  
Less: Net (income) loss attributable to the noncontrolling interest
     (7 )     (2,064 )     1,314       (3,323 )
 
                        
Net income (loss) attributable to STATS ChipPAC Ltd.
   $ 2,223     $ 37,332     $ (48,844 )   $ 64,782  
 
                        
 
                                
Net income (loss) per ordinary share attributable to STATS ChipPAC Ltd.:
                                
Basic
   $ 0.00     $ 0.02     $ (0.02 )   $ 0.03  
Diluted
   $ 0.00     $ 0.02     $ (0.02 )   $ 0.03  
 
                                
Ordinary shares (in thousands) used in per ordinary share calculation:
                                
Basic
     2,202,218       2,202,218       2,202,218       2,202,218  
Diluted
     2,202,223       2,202,240       2,202,218       2,202,239  
 
                                
Key Ratios and Information:
                                
Gross Margin
     15.1 %     21.5 %     8.5 %     20.8 %
Operating Expenses as a % of Revenue
     10.4 %     8.6 %     13.7 %     8.7 %
Operating Margin
     4.7 %     12.9 %     (5.2 )%     12.1 %
Depreciation & Amortization, including Amortization of Debt Issuance Costs
   $ 67,324     $ 69,365     $ 133,979     $ 137,180  
Capital Expenditures
   $ 32,350     $ 67,650     $ 41,843     $ 167,037  
     
(STATSCHIPPAC LOGO)
  STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

 

 

STATS ChipPAC Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)
                 
    December 27,     June 27,  
    2009     2010  
            (Unaudited)  
ASSETS
                
 
                
Current assets:
                
Cash, cash equivalents and marketable securities
   $ 351,195     $ 364,216  
Accounts receivable, net
     208,766       255,420  
Inventories
     61,859       65,836  
Other current assets *
     52,215       49,012  
 
            
Total current assets
     674,035       734,484  
 
                
Marketable securities
     16,929       16,849  
Property, plant and equipment, net
     1,115,497       1,150,227  
Investment in equity investee
     7,743       8,013  
Goodwill and intangible assets
     591,125       590,856  
Other non-current assets *
     21,611       25,319  
 
            
Total assets
   $ 2,426,940     $ 2,525,748  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts and other payables
   $ 182,704     $ 213,083  
Other current liabilities
     103,394       104,836  
Short-term debts
     224,786       77,155  
 
            
Total current liabilities
     510,884       395,074  
Long-term debts
     233,181       374,254  
Other non-current liabilities
     59,329       65,847  
 
            
Total liabilities
     803,394       835,175  
 
            
STATS ChipPAC Ltd. shareholders’ equity
     1,564,669       1,629,702  
 
            
Noncontrolling interest
     58,877       60,871  
 
            
Total liabilities and equity
   $ 2,426,940     $ 2,525,748  
 
            
 
*   Includes $0.4 million of non-current restricted cash as of December 27, 2009, and $0.03 million of current restricted cash and $0.4 million of non-current restricted cash as of June 27, 2010.
     
(STATSCHIPPAC LOGO)
  STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com

 

 

STATS ChipPAC Ltd.
Other Supplemental Information
(Unaudited)
                         
    2Q 2009   1Q 2010   2Q 2010
Net Revenues by Product Line
                        
Packaging — laminate
     58.5 %     55.5 %     55.6 %
Packaging — leaded
     14.7 %     15.3 %     15.3 %
Test
     23.0 %     22.2 %     20.5 %
Wafer level processing and other services
     3.8 %     7.0 %     8.6 %
 
                        
 
     100.0 %     100.0 %     100.0 %
 
                        
Net Revenues by End User Market
                        
Communications
     53.3 %     52.3 %     51.5 %
Personal Computers
     17.5 %     15.4 %     16.1 %
Consumer, Multi-applications and Others
     29.2 %     32.3 %     32.4 %
 
                        
 
     100.0 %     100.0 %     100.0 %
 
                        
Net Revenues by Region
                        
United States of America
     76.2 %     61.5 %     56.7 %
Europe
     3.9 %     12.8 %     14.4 %
Asia
     19.9 %     25.7 %     28.9 %
 
                        
 
     100.0 %     100.0 %     100.0 %
 
                        
 
                        
Number of Testers
     962       929       940  
Number of Wirebonders
     4,596       4,538       4,456  
 
                        
Overall Equipment Utilization Rate
     51 %     63 %     67 %
     
(STATSCHIPPAC LOGO)
  STATS ChipPAC Ltd.
Company Registration No.: 199407932D
Headquarters: 10 Ang Mo Kio Street 65, #05-17/20 Techpoint,
Singapore 569059
www.statschippac.com