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© batman2000-dreamstime.com Business | April 24, 2014

1Q: better than expected for STATS ChipPAC

STATS ChipPAC first quarter of 2014 was better than expected. However, revenue still decreased 7.5% from the previous quarter reflecting a seasonally weaker demand in most end markets.
Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said, "Revenue for the first quarter of 2014 was better than expected, decreasing by 7.5% to USD 365.5 million from prior quarter, and reflected seasonally weaker demand in most end markets. During the quarter, we saw continued strength in demand in the emerging market wireless chipset space. We made good progress on strategic growth initiatives with new program qualifications and production volume ramp in advanced wafer level technologies such as embedded Wafer Level Ball Grid Array (eWLB). eWLB is gaining recognition as a technology of choice for high performance, super-thin packages with advanced system level integration for the mobile communications market."

Gross margin for the first quarter of 2014 was 10.0% compared to 10.5% in the prior quarter and 15.4% in the first quarter of 2013, mainly due to the lower first quarter 2014 revenue. Operating margin for the first quarter of 2014 was 0.7% of revenue, compared to 1.3% in the prior quarter and 6.1% in first quarter 2013. Net loss for the first quarter of 2014 was USD 15.8 million compared to net loss of USD 12.1 million in the prior quarter and net income of USD 3.5 million in first quarter 2013.

Dennis Chia, Chief Financial Officer of STATS ChipPAC, said, "Our adjusted EBITDA1 in the first quarter was USD 78.4 million or 21.4% of revenue, compared to USD 91.3 million and USD 96.4 million or 23.1% and 23.7% of revenue in the prior quarter and the first quarter 2013, respectively. Excluding the new factory construction in Korea, capital expenditure for the first quarter 2014 was USD 98.0 million or 26.8% of revenue. Overall capital spending in the first quarter 2014 was USD 113.6 million or 31.1% of revenue compared to USD 92.4 million or 22.7% of revenue in the first quarter 2013. We ended the first quarter of 2014 with cash, cash equivalents and bank deposits of USD 176.9 million and debt of USD 1,011.9 million compared to USD 182.8 million and USD 912.2 million as of the end of fourth quarter of 2013, respectively."

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