SAN FRANCISOSingapore's Chartered Semiconductor Manufacturing Ltd. cut its planned capital expenditure outlay for 2008 by $100 million after posting a third quarter loss and saying its expects a larger loss in the fourth quarter.
Chartered reported a third quarter net loss of $24.4 million after posting a net income of $144.8 million in the same period of 2007, the company said Thursday (Oct. 30).
Charted posted third quarter revenue of $463.7 million in third quarter, up 31 percent year-to-year, the company said. Third quarter revenue including Chartered's share of the joint venture Silicon Manufacturing Partners increased to $487.2 million, up 28 percent year-to-year, the company said.
Chartered shipped 514.3 thousand wafers in the third quarter, an increase of 31.2 percent compared to 392.1 thousand wafers in third quarter 2007, the company said. Shipments in third quarter 2008 decreased by 0.6 percent compared to 517.3 thousand wafers shipped in second quarter, the company said.
Capacity utilization in the third quarter was 85 percent compared to 85 percent in the year-ago quarter, and 88 percent in second quarter 2008, Charted said. Total capacity in the third quarter increased about two percent sequentially, the company said.
Revenue from 65-nm products grew about 48 percent sequentially and represented 19 percent of Chartered's total revenue, said George Thomas, Chartered's chief financial officer, in a statement.
Charted says it expects fourth quarter revenue to be between $362 million and $374 million, a sequential drop of 19 to 22 percent. The company expects to report a loss for the fourth quarter of $52 million to $62 million.
"We started to see orders declining from the middle of August, followed by some customer requests to reschedule deliveries forward," Thomas said. "The weakness is expected to deepen into the fourth quarter, and current uncertainties in the market place make it difficult to predict with accuracy how the quarter will turn out."
As rival foundries have done in recent days, Chartered cut is capital expenditures forecast for 2008. The company now expects to spend about $650 million, down $100 million from previous estimates.
Chartered's third quarter loss equated to 11 cents per American depositary share.