6-K 1 u92170ae6vk.txt ST ASSEMBLY TEST SERVICES LTD UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED June 30, 2003 COMMISSION FILE NUMBER 000-29103 ST ASSEMBLY TEST SERVICES LTD (Exact name of registrant as specified in its charter) Not Applicable -------------- (Translation of registrant's name into English) Republic of Singapore --------------------- (Jurisdiction of incorporation or organization) 5 YISHUN STREET 23 SINGAPORE 768442 (65) 6824-7888 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F Form 20-F X Form 40-F ----- ----- Indicate by check mark whether the registrant by furnishing the information contained in the form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 Yes No X ----- ----- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). Not Applicable Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ST ASSEMBLY TEST SERVICES LTD BY: /s/ Tan Lay Koon --------------------------------------------- Name : Tan Lay Koon Title : President and Chief Executive Officer Date : July 30, 2003 EARNINGS RELEASE STATS REPORTS SECOND QUARTER 2003 RESULTS NET REVENUES UP 71% FROM YEAR-AGO-QUARTER AND 16% FROM PRIOR QUARTER CONTINUING IMPROVEMENTS IN OPERATING MARGINS - NET REVENUES OF $87.6 MILLION - LOSS PER ADS OF $0.01 SINGAPORE AND MILPITAS, CALIFORNIA, JULY 30, 2003 - ST Assembly Test Services Ltd ("STATS" - Nasdaq: STTS and SGX: ST Assembly), a leading semiconductor test and assembly service provider, today reported second quarter net revenues of $87.6 million, an increase of 71% over the same quarter a year ago and an increase of 16% over the prior quarter. Net loss for the second quarter 2003 was $0.7 million compared to a net loss of $21.6 million in the same quarter a year ago, and net loss of $9.6 million in the prior quarter. The net loss included a gain of $3.8 million (net of tax) from the sale of our marketable securities. Diluted loss per American Depository Share (ADS) was $0.01 and diluted loss per ordinary share was $0.001 in the second quarter compared to a loss of $0.22 per ADS and $0.02 per ordinary share in the same quarter a year ago, and a loss per ADS and loss per ordinary share of $0.10 and $0.01, respectively, in the prior quarter. Tan Lay Koon, President and Chief Executive Officer, commented "Despite the challenging operating environment, we again increased our net revenues in the second quarter, our seventh consecutive quarter of sequential revenue growth. Gross profit margin improved to 11% in the second quarter compared to negative 17% in the quarter a year ago, and 5% in the prior quarter. Net loss narrowed to $0.7 milllion, an improvement of $20.9 million over the same quarter a year ago and an improvement of $8.9 million over the prior quarter. With the exception of the wireless handset segment, we saw continuing strength in all other market segments that STATS participated in, namely broadband access, networking, computing peripheral and digital consumer. Our financial performance has validated our strategy of offering integrated assembly and test solutions under one roof to our customers. This strategy is based on a commitment to continuing investments in advanced packaging technologies to complement our leadership in mixed signal testing. During the quarter we announced a new systems-in-package (SiP) solution and further enhancement to our flip chip package offering. Reflecting our progress in advanced packaging engagements, revenues from our array packages rose further to $15.4 million or 39% of assembly revenues in this quarter. Our investments in Winstek Semiconductor Corporation ("Winstek") in Taiwan and FastRamp Test Services, Inc. ("FastRamp") in the US have allowed us to participate in new market opportunities. Net revenues at our FastRamp facilities in Milpitas and San Diego grew 13% sequentially. Winstek's revenues grew 91% over the same quarter a year ago and 34% over the prior quarter as we gained further traction with our Taiwanese customers. Winstek 1 contributed 9% of our revenues in the quarter, and is today one of the leading test houses serving foundries and fabless design houses in Taiwan. We have also, despite the challenging conditions in the semiconductor industry in the last two years, continued to invest for the future. We added to our existing manufacturing presence in Singapore, Taiwan and the US with our recent expansion into China. On July 3, 2003, we announced our plan to set up a 25,000 square foot manufacturing facility in Shanghai, China. This facility will give us a foothold to participate in China's expanding outsourcing semiconductor business and support our global customers' needs in China. STATS ended the quarter with a strong balance sheet and our cash, cash equivalents and marketable securities balance was $201.0 million as of June 30, 2003." HIGHLIGHTS OF FINANCIAL PERFORMANCE - Net revenues for the second quarter were $87.6 million compared to $51.3 million in the same quarter a year ago, and $75.5 million in the prior quarter. Revenues from assembly in this quarter were $39.0 million or 45% of net revenues and test revenues were $48.6 million or 55% of net revenues. - Gross profit for second quarter 2003 was $9.9 million or a gross margin of 11% compared to gross loss of $8.8 million or negative gross margin of 17% in the same quarter a year ago. Gross margin in this quarter improved from the gross margin of 5% in the prior quarter due principally to higher utilization. - Depreciation expense and the cost of leasing production equipment was $32.6 million in the second quarter 2003 compared to $29.2 million in the same quarter a year ago, and $31.0 million in the prior quarter. - Operating expenses in the second quarter 2003 were $12.6 million compared to $13.4 million in the same quarter a year ago, and $12.8 million in the prior quarter. - Selling, general and administrative ("SG&A") expenses for the second quarter of 2003 decreased to $8.3 million or 9% of net revenues compared to $8.8 million or 17% of net revenues in the same quarter a year ago, and $8.7 million or 12% of net revenues in the prior quarter. - Research and development ("R&D") expenses were $4.0 million in the second quarter or 5% of net revenues compared to $4.5 million or 9% of net revenues in the same quarter a year ago, and $4.5 million or 6% of net revenues in the prior quarter. - Unit shipments for the test business in second quarter 2003 increased by 60% over the same quarter a year ago, and increased 17% sequentially. Unit shipments in our assembly business increased by 52% over the same quarter a year ago, and increased 16% sequentially. - Average selling prices (ASPs) for the test business increased by about 6% compared to the prior quarter due principally to an increase in the number of complex devices tested requiring longer test time. ASPs in the assembly business decreased 11% this quarter from the prior quarter primarily due to product mix changes. - Capital expenditures, including that of Winstek and FastRamp, were $46.9 million in this quarter principally for new capabilities and production equipment. As of June 30, 2003, the company had 339 testers, including 68 testers at Winstek, 17 testers at FastRamp and 696 wirebonders. 2 MIXED SIGNAL EXPERTISE Mixed signal devices continued to be the largest contributor to our test revenues, comprising 83% of total test revenues in the second quarter 2003. During the quarter, revenues from high-end digital testing increased over the prior quarter but decreased as a percentage of test revenues to 17%. TEST REVENUES BREAKDOWN BY TESTING TYPE
THREE MONTHS ENDED ------------------ MARCH 31, 2003 JUNE 30, 2003 ---------------------------------------------------------------------- TYPE OF TESTING % OF TEST REVENUES % OF TEST REVENUES ---------------------------------------------------------------------- Mixed Signal 79.9 82.5 ---------------------------------------------------------------------- Digital 19.9 17.4 ---------------------------------------------------------------------- Memory 0.2 0.1 ----------------------------------------------------------------------
MARKET DYNAMICS The United States remained our largest revenue contributor by region, contributing 81% of net revenues although revenues from Europe and Asia increased slightly as a percentage of net revenues in the second quarter. Revenues from Europe increased to 5% of net revenues reflecting an improvement in demand from our European customers. The communications segment continued to be our largest revenue contributor in this quarter accounting for 55% of net revenues. Net revenues from integrated device manufacturers ("IDMs") and fabless semiconductor companies were about the same at 45% and 44% of net revenues, respectively. REVENUES BREAKDOWN BY MARKET SEGMENT
THREE MONTHS ENDED ------------------ MARCH 31, 2003 JUNE 30, 2003 ---------------------------------------------------------------------- MARKET SEGMENT % OF NET REVENUES % OF NET REVENUES ---------------------------------------------------------------------- Communications 55.8 54.9 ---------------------------------------------------------------------- Computer 33.2 31.4 ---------------------------------------------------------------------- Consumer/Others 11.0 13.7 ----------------------------------------------------------------------
REVENUES BREAKDOWN BY REGION
THREE MONTHS ENDED ------------------ MARCH 31, 2003 JUNE 30, 2003 ---------------------------------------------------------------------- REGION % OF NET REVENUES % OF NET REVENUES ---------------------------------------------------------------------- United States 83.1 81.1 ---------------------------------------------------------------------- Europe 3.3 4.5 ---------------------------------------------------------------------- Asia 13.6 14.4 ----------------------------------------------------------------------
REVENUES BREAKDOWN BY CUSTOMER TYPE
THREE MONTHS ENDED ------------------ MARCH 31, 2003 JUNE 30, 2003 ---------------------------------------------------------------------- CUSTOMER TYPE % OF NET REVENUES % OF NET REVENUES ---------------------------------------------------------------------- Foundries 9.3 11.3 ---------------------------------------------------------------------- Fabless 45.9 43.5 ---------------------------------------------------------------------- IDMs 44.8 45.2 ----------------------------------------------------------------------
3 BUSINESS OUTLOOK The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. "Other than the weakness in the wireless handset space, we expect the growth momentum we have been seeing in the other end markets we are engaged with to continue. Although the market environment remains challenging, we expect our revenue growth momentum to continue into the third quarter. Based on current outlook, we expect revenues in the third quarter of 2003 to be about 5% to 10% higher than in the second quarter of 2003," said Tan Lay Koon, President and Chief Executive Officer. "We expect aggregate utilization in the third quarter to improve marginally from the 67% in the second quarter. We expect our budgeted capital expenditures for the full year 2003 to be about $150 to $180 million," added Pearlyne Wang, acting Chief Financial Officer. HIGHLIGHTS OF SECOND QUARTER ACHIEVEMENTS During the second quarter we announced qualification of total System-in-Package (SiP) solutions in PBGA, stPBGA, and LGA packages as well as its surface mount manufacturing capability. SiP technology integrates one or more ICs, passives, RF and other components in a package to reduce the complexity of a system board. The STATS model emphasizes early engagement with customers at the system architecture and partitioning stage. STATS performs thermal, electrical, and mechanical characterization concurrently with test planning as part of the overall design and layout process to offer lower cost and faster turnaround. SiP is currently used to integrate baseband and RF devices for cellular, GPS and Bluetooth products. SiP solutions are also found in digital cameras, PDAs and numerous computing applications. In June 2003, Winstek announced that it had signed a strategic alliance agreement with Orient Semiconductor Electronics, Ltd. ("OSE"), a leading Taiwanese assembly company, to jointly offer full turnkey assembly and test services to the Taiwan semiconductor market. Under the agreement, Winstek will provide wafer probe and final test to OSE customers who require turnkey assembly and test. At the same time, OSE will support Winstek customers with packaging services under the turnkey service model. In May 2003, STATS introduced the Flip Chip Ball Grid Array with Buildup Substrate and Heat Spreader (FCBGA-HB) for high performance communication and computing applications. The new FCBGA-HB is part of STATS total flip chip solutions, which comprises in-house thermal/electrical simulation, wafer bumping, 300mm wafer front-end assembly, and complete test capabilities for such high performance packages. The FCBGA-HB features STATS' innovative one-piece heat spreader for superior electrical and thermal performance, on a high performance four to eight layer buildup substrate. The patent-pending one-piece heat spreader also offers simplicity of assembly and greater flexibility at lower cost. The FCBGA-HB is targeted at high performance applications used in enterprise servers, network switches/routers, next generation network processors and wireless base stations. During the quarter, STATS announced development of a low cost packaging solution for 10 Gbps, which was jointly developed with Aeluros, a leader in high-performance, low-power CMOS solutions based in Mountain View, California. By combining respective research and development efforts during the IC design layout process, STATS and Aeluros were able to successfully expand the potential of the PBGA package to address the requirements of 10 Gbps applications. Aeluros will be deploying STATS' low cost solution to deliver a series of leading-edge high-speed CMOS devices. 4 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2003 IN THOUSANDS OF US DOLLARS (EXCEPT SHARE AND PER SHARE DATA)
FOR THE THREE MONTHS ENDED JUNE 30, ----------------------------------- 2002 2003 -------- -------- Net revenues .................................................................... $ 51,259 $ 87,602 Cost of revenues ................................................................ (60,031) (77,680) -------- -------- Gross profit (loss) ............................................................. (8,772) 9,922 -------- -------- Operating expenses: Selling, general and administrative ........................................... 8,826 8,273 Research and development ...................................................... 4,530 4,033 Others, net ................................................................... 19 281 -------- -------- Total operating expenses ................................................... 13,375 12,587 -------- -------- Operating loss .................................................................. (22,147) (2,665) Other income (expense): Interest expense, net ......................................................... (1,775) (1,911) Foreign currency exchange gain ................................................ 423 389 Other non-operating income, net ............................................... 1,771 5,176 -------- -------- Total other income ......................................................... 419 3,654 -------- -------- Income (loss) before income taxes ............................................... (21,728) 989 Income tax benefit (expense) .................................................... 441 (1,273) -------- -------- Net loss before minority interest ............................................... (21,287) (284) Minority interest ............................................................... (278) (418) -------- -------- Net loss ........................................................................ $(21,565) $ (702) ======== ======== Basic and diluted net loss per ordinary share.................................... $ (0.02) $ (0.001) Basic and diluted net loss per ADS .............................................. (0.22) (0.01) Ordinary shares (in thousands) used in per ordinary share calculation: - basic and diluted ............................................................. 991,536 992,301 ======== ======== ADS (in thousands) used in per ADS calculation: - basic and diluted ............................................................ 99,154 99,230 ======== ========
5 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2003 IN THOUSANDS OF US DOLLARS
FOR THE THREE MONTHS ENDED JUNE 30, ----------------------------------- 2002 2003 -------- ------ Net loss ........................................................................ $(21,565) (702) ======== ====== Other comprehensive income (loss): Unrealized gain on available-for-sale marketable securities ....................................................... 160 4,186 Realized gain on available-for-sale marketable securities included in net loss .................................. - (4,854) Foreign currency translation adjustment ....................................... 1,152 113 -------- ------ Comprehensive loss .............................................................. $(20,253) (1,257) ======== ======
ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2003 IN THOUSANDS OF US DOLLARS (EXCEPT SHARE AND PER SHARE DATA)
FOR THE SIX MONTHS ENDED JUNE 30, --------------------------------- 2002 2003 --------- --------- Net revenues ................................................................... $ 90,663 $ 163,133 Cost of revenues ............................................................... (113,259) (149,695) --------- --------- Gross profit (loss) ............................................................ (22,596) 13,438 --------- --------- Operating expenses: Selling, general and administrative .......................................... 17,850 16,977 Research and development ..................................................... 8,688 8,525 Others, net .................................................................. 149 (106) --------- --------- Total operating expenses ................................................... 26,687 25,396 --------- --------- Operating loss ................................................................. (49,283) (11,958) Other income (expense): Interest expense, net ........................................................ (1,784) (3,577) Foreign currency exchange gain ............................................... 622 153 Other non-operating income, net .............................................. 2,232 6,166 --------- --------- Total other income ......................................................... 1,070 2,742 --------- --------- Loss before income taxes ....................................................... (48,213) (9,216) Income tax benefit (expense) ................................................... 300 (162) --------- --------- Net loss before minority interest .............................................. (47,913) (9,378) Minority interest .............................................................. (205) (951) --------- --------- Net loss ....................................................................... $ (48,118) $ (10,329) ========= ========= Basic and diluted net loss per ordinary share .................................. $ (0.05) $ (0.01) Basic and diluted net loss per ADS ............................................. $ (0.49) $ (0.10) Ordinary shares (in thousands) used in per ordinary share calculation: - basic and diluted ........................................................... 991,000 992,273 ========= ========= ADS (in thousands) used in per ADS calculation: - basic and diluted ............................................................ 99,100 99,227 ========= =========
6 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2003 IN THOUSANDS OF US DOLLARS
FOR THE SIX MONTHS ENDED JUNE 30, --------------------------------- 2002 2003 -------- -------- Net loss ....................................................................... $(48,118) $(10,329) ======== ======== Other comprehensive income (loss): Unrealized gain on available-for-sale marketable securities ....................................................... 487 4,500 Realized (gain) loss on available-for-sale marketable securities included in net loss .................................. 2 (4,837) Foreign currency translation adjustment ...................................... 760 116 -------- -------- Comprehensive loss ............................................................. $(46,869) $(10,550) ======== ========
7 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2002 AND JUNE 30, 2003 IN THOUSANDS OF US DOLLARS
DECEMBER 31, JUNE 30, 2002 2003 ------------ --------- ASSETS Current assets: Cash and cash equivalents .................................................... $ 167,661 $ 179,493 Marketable securities ........................................................ 11,960 6,401 Accounts receivable, net ..................................................... 49,461 61,232 Amounts due from ST and ST affiliates ........................................ 3,727 4,967 Other receivables ............................................................ 8,913 1,991 Inventories .................................................................. 9,744 13,056 Prepaid expenses ............................................................. 10,565 10,779 Other current assets ......................................................... 5,066 4,203 --------- --------- Total current assets ....................................................... 267,097 282,122 Marketable securities .......................................................... 57,883 15,113 Property, plant and equipment, net ............................................. 357,456 396,398 Prepaid expenses ............................................................... 4,351 3,376 Goodwill ....................................................................... 1,321 1,321 Other assets ................................................................... 33,860 40,607 --------- --------- Total assets ............................................................... $ 721,968 $ 738,937 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable ............................................................. $ 15,336 $ 12,111 Short term borrowings ........................................................ 5,174 12,878 Current obligations under capital leases ..................................... 6,558 11,692 Current installments of long-term debt ....................................... 16,414 10,678 Amounts due to ST and ST affiliates .......................................... 1,858 2,592 Accrued operating expenses ................................................... 22,578 23,834 Income taxes payable ......................................................... 1,263 3,673 Other payables ............................................................... 32,065 48,801 --------- --------- Total current liabilities .................................................. 101,246 126,259 Obligations under capital leases, excluding current portion ................................................................ 5,520 2,928 Long-term debt, excluding current portion ...................................... 13,357 12,959 Convertible notes .............................................................. 205,013 208,296 Other non-current liabilities .................................................. 4,494 5,498 --------- --------- Total liabilities .......................................................... 329,630 355,940 Minority interests ............................................................. 25,826 26,900 Shareholders' equity: Share capital .................................................................. 160,295 160,336 Additional paid-in capital ..................................................... 389,679 389,773 Accumulated other comprehensive loss ........................................... (9,266) (9,487) Retained deficit ............................................................... (174,196) (184,525) --------- --------- Total shareholders' equity ................................................. 366,512 356,097 --------- --------- Total Liabilities and Shareholders' Equity ................................. $ 721,968 $ 738,937 ========= =========
8 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2003 IN THOUSANDS OF US DOLLARS
FOR THE SIX MONTHS ENDED JUNE 30, --------------------------------- 2002 2003 --------- --------- Net loss ............................................................................. $ (48,118) $ (10,329) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization ...................................................... 49,628 59,010 Amortization of leasing prepayments ................................................ 10,343 6,136 (Gain) loss on sale of property, plant and equipment ............................... 238 (56) Accretion of discount on convertible notes ......................................... 1,825 3,283 Deferred income taxes .............................................................. (857) (1,793) Exchange gain ...................................................................... (331) (413) Minority interest in income in subsidiary .......................................... 205 951 Gain on sale or maturity of marketable securities .................................. (567) (4,835) Changes in operating working capital: Accounts receivable ................................................................ (11,954) (11,745) Amounts due from ST and ST affiliates .............................................. (310) (748) Inventories ........................................................................ (2,111) (3,312) Other receivables, prepaid expenses and other assets ............................... (1,251) 1,086 Accounts payable, accrued operating expenses and other payables .................................................................... 1,396 393 Amounts due to ST and ST affiliates ................................................ 230 243 --------- --------- Net cash provided by (used in) operating activities .................................. (1,634) 37,871 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale or maturity of marketable securities .............................. 1,399 64,714 Purchases of marketable securities ................................................... (105,527) (11,819) Purchases of property, plant and equipment ........................................... (62,861) (73,665) Other, net ........................................................................... 8 (4,417) --------- --------- Net cash used in investing activities ................................................ (166,981) (25,187) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Repayment of short-term debt ......................................................... - (144) Repayment of long-term debt .......................................................... (7,0137) (7,397) Proceeds from issuance of convertible notes .......................................... 195,032 - Proceeds from bank borrowings ........................................................ 11,867 8,950 (Increase) decrease in restricted cash ............................................... (12,121) 1,486 Grants received ...................................................................... 1,150 - Capital lease payments ............................................................... (7,726) (4,263) Proceeds from issuance of shares ..................................................... 1,778 99 --------- --------- Net cash provided by (used in) financing activities .................................. 182,967 (1,269) --------- --------- Net increase in cash and cash equivalents ............................................ 14,352 11,415 Effect of exchange rate changes on cash and cash equivalents .................................................................... 526 417 Cash and cash equivalents at beginning of the period ................................. 115,214 167,661 --------- --------- Cash and cash equivalents at end of the period ....................................... $ 130,092 $ 179,493 ========= ========= SUPPLEMENTARY CASH FLOW INFORMATION Cash paid for: Interest ........................................................................... $ 513 $ 3,606 Income taxes ....................................................................... $ 804 $ 343
9 ABOUT ST ASSEMBLY TEST SERVICES LTD. (STATS) ST Assembly Test Services Ltd. ("STATS" - NNM: STTS and SGX: ST Assembly), is a leading semiconductor test and assembly service provider to fabless companies, integrated device manufacturers and wafer foundries. With its principal operations in Singapore and global operations in the United States, United Kingdom, Germany, Japan and Taiwan, STATS offers full back-end turnkey solutions to customers worldwide. STATS' expertise is in testing mixed-signal semiconductors, which are extensively used in fast growing communications applications such as data networking, broadband and mobile communications. STATS also offers advanced assembly services and has developed a wide array of traditional and advanced leadframe and laminate based products, including various ball grid array packages to serve some of the world's technological leaders. STATS was listed on the Nasdaq National Market and The Singapore Exchange in January 2000 and is in the Morgan Stanley Capital International (MSCI) Index and the Straits Times Industrial Index. Further information is available at www.stts.com Certain of the statements in this press release including but not limited to statements regarding industry growth and statements in "Business Outlook" on revenue growth, utilization rates and capital expenditures are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; demand for end-use applications products such as communications equipment and personal computers; reliance on a small group of principal customers; decisions by customers to discontinue outsourcing of test and assembly services; changes in customer order patterns; rescheduling or canceling of customer orders; changes in product mix; capacity utilization; level of competition; pricing pressures including declines in average selling prices; continued success in technological innovations; delays in acquiring or installing new equipment; shortages in supply of key components; availability of financing; exchange rate fluctuations; litigation and other risks described from time to time in the Company's SEC filings, including its annual report on Form 20-F dated March 31, 2003. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. SINGAPORE CONTACTS: Elaine Ang Khor Hwee Eng Manager, Investor Relations/Corporate Communications Senior Communications Executive Tel: (65) 6824 1738, Fax: (65) 6822 8887 Tel: (65) 6824 1291, Fax: (65) 6822 7831 email: angelaine@stats.st.com.sg email: khorhweeeng@stats.st.com.sg US CONTACTS: Drew Davies Lisa Lavin Director, Investor Relations Marcom Manager Tel: (408) 586 0608, Fax: (408) 586 0652 Tel: (208) 939 3104, Fax: (208) 939 4817 email: daviesd@statsus.com email: lavinl@statsus.com
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