FREMONT, Calif. -- Chip-packaging specialist ChipPAC Inc. today (July 31) said it has entered into an agreement with an undisclosed company to sell one of its empty office buildings in Malaysia.
The company made the disclosure within its second quarter results ended June 30. Revenue for the three months increased 10.1 percent to $106.8 million, compared to $97.1 million in the same quarter a year ago. This is an increase of 20.6 percent compared to the quarter ended March 31, 2003, ahead of prior guidance of 10 percent to 15 percent sequential growth.
Net loss was $4.5 million, or minus $0.05 per diluted share, compared to a net loss of $7.1 million, or minus $0.08 per diluted share, in the same quarter a year ago. Prior guidance for the three months ended June 30 was for net loss to be in the range of minus $0.02 to minus $0.05 per diluted share.
Increased unit volume improved capacity utilization to 68 percent during the quarter. The overall unit volume increase was 21 percent, led by a 33.4 percent increase in unit volume at its China facility.
Dennis McKenna, chairman and CEO of ChipPAC, painted a mixed picture. "Our company was able to achieve 20.6 percent sequential revenue growth during the second quarter despite weak demand from our wireless handset customers, and constrained capacity for some advanced packages," he said in a statement.
"Communications was one of the bright spots in the quarter, with WLAN and high-density flash memory using our industry leading stack technology. We also saw strength in our computing segment, with strong demand in graphics and chipsets for mobile, desktop and server applications," he said.
"Entering the third quarter, we expect revenue growth will be flat to up 3 percent over the second quarter 2003 as inventory replenishments from the second quarter will slow in the third quarter as demand is met," he said. "This would be year over year revenue growth of 11 percent to 14 percent. Overall, we expect the net loss for the third quarter to be in the range of $(0.05) to $(0.08) per share, excluding special charges and the potential gain on the sale of our Malaysia building."