Tan Lay Koon, president and chief executive officer of STATS ChipPAC, said, “Revenue for the full year 2008 of $1,658.2 million increased by 0.4% over prior year and net income for the full year 2008 of $25.7 million decreased 72.6% compared to full year 2007. Fourth quarter 2008 revenue of $324.6 million decreased 31.9% over prior year and 31.3% sequentially over prior quarter. Our fourth quarter revenue reflected the contraction in demand for our services as our customers responded to the global economic crisis with sharp reduction in new build orders and aggressively reduced their inventories. In response to the severe operating environment, we took aggressive actions to reduce our operating costs that included reduction in capital expenditures and our global workforce.”
Net loss for fourth quarter of 2008, including $13.8 million in restructuring charges, was $22.1 million or $0.01 of net loss per diluted ordinary share, compared to net income of $41.3 million or $0.02 of net income per diluted ordinary share in the fourth quarter of 2007.
John Lau, chief financial officer of STATS ChipPAC, said, “We ended the year with $352.8 million of cash, cash equivalent, short and long term marketable securities and $473.5 million of debt, compared to $258.0 million and $664.6 million respectively in the prior year. Gross margin for fourth quarter of 2008 was 11.6% compared to 19.5% over prior year, and 18.5% in the prior quarter. Operating margin for fourth quarter of 2008 was (4.1)% of revenue, compared to 11.4% over prior year and 4.6% in the prior quarter. Fourth quarter 2008 operating margin included restructuring charges of $13.8 million, or 4.2% of revenue. Capital spending in the fourth quarter and full year 2008 were $22.4 million and $239.0 million or 6.9% and 14.4% of revenue respectively compared to $67.8 million and $268.8 million or 14.2% and 16.3% respectively in the prior year.”
