FREMONT, Calif. -- ChipPAC Inc. here today reported sales of $97.1 million for the quarter, a 22.6% increase from $79 million in the prior quarter and 11.1% from $87.4 million in the like period a year ago.
The IC-packaging and assembly provider reported a loss of $7.1 million, or minus $0.05 a share, in the quarter, compared to a loss of $7.5 million, or minus $0.11 a share, a year ago. In the previous quarter, ChipPAC posted a loss of $11.5 million, or minus $0.15 a share.
Revenues and loss before extraordinary item were both ahead of the company's initial guidance. First Call consensus estimates were $95 million in revenue and a net loss of $0.05 per share.
Increased factory utilization rates, continued cost management, favorable product mix and price stability contributed to the improvement in margins, said Dennis McKenna, chairman and CEO of ChipPAC.
"We achieved our third quarter of sequential growth," he said in a statement. "We also achieved year over year improvement in revenue, gross margin, operating income and net income. All of our manufacturing sites, Korea, Malaysia and China, had revenue and unit volume improvements," he said.
"Our three targeted end markets of computing, communications, and consumer/industrial, all had strong sequential
growth, led by wireless communications based on the strength of our advanced packaging, test capabilities and customer alignment," he added.
McKenna was optimistic for the current quarter. "We expect continued sequential revenue growth for the third quarter despite the seasonally weak summer months of July and August and production level adjustments based on slower growth for the
computing end market," he said.
"Overall, we expect revenues for the third quarter ending September 30, 2002 will increase by 2% to 5% over the second quarter ended June 30, 2002, with a sequentially reduced loss in the range of ($0.03) to ($0.01) per diluted share," he added.