Increased revenues for STATS ChipPAC

"Our second quarter revenue reflected growth from seasonal demand tempered by macroeconomic concerns. We saw higher demand in storage and strong demand for our advanced packaging services driven by demand for smartphones and tablets. Our customers however remained cautious and continued to tightly manage inventory due to the deteriorating macroeconomic conditions." Net income for the second quarter of 2012 was $8.9 million, or $0.00 of net income per diluted ordinary share compared to net income of $19.2 million or $0.01 of net income per diluted ordinary share in the second quarter of 2011 and $2.8 million or $0.00 of net income per diluted ordinary share in the first quarter of 2012. John Lau, Chief Financial Officer of STATS ChipPAC, said, "Gross profit for the second quarter of 2012 was $71.7 million or 17.0% of revenue, compared to $62.7 million or 16.1% in the first quarter of 2012 and $73.7 million or 17.2% in the second quarter of 2011. Operating margin before flood related plan charges for the second quarter of 2012 was 7.9% of revenue compared to 6.7% in the first quarter of 2012 and 8.3% in the second quarter of 2011. Our adjusted EBITDA1 in the second quarter of 2012 was 23.0% of revenue, compared to 23.0% in the first quarter of 2012 and 26.3% in the second quarter of 2011. Capital spending in the second quarter of 2012 was $96.8 million or 22.9% of revenue compared to $98.3 million or 25.2% in the first quarter of 2012 and $94.1 million or 22.0% in the second quarter of 2011 mainly for investments in advanced packaging and turnkey test and included $9.3 million for the new factory building in Singapore." Outlook Tan Lay Koon commented, "Based on current visibility, we expect net revenues in the third quarter of 2012 to be flat compared to the prior quarter, with adjusted EBITDA1 in the range of 21% to 23% of revenue. We expect capital expenditure2 in the third quarter of 2012 to be approximately $170 million to $190 million and includes approximately $20 million for the new factory building in Singapore. The capital intensity in the third quarter is unique as we stage capacity in advance to support anticipated demand later this year for advanced packaging and test turnkey services for customers in the high end smartphone market."