Singapore's Chartered Semiconductor raises Q4 profit
forecasts
SINGAPORE : Singapore contract chip maker Chartered Semiconductor
Manufacturing (CSM) on Friday raised its profit forecast by six
million US dollars for the fourth quarter due to
better-than-expected orders.
The revised forecast means profit in the December quarter will
likely be 11-21 million dollars, up from the previous estimates of
5-15 million dollars, the world's third biggest contract chip maker
said in a statement.
For the fourth quarter, Chartered now expects revenues of 363-371
million dollars, up from the previous forecast of 355-363 million
dollars.
"Consistent with higher revenues, our fourth quarter net profit is
now expected to be approximately six million dollars higher than
the mid-point of the range previously guided," chief financial
officer George Thomas said.
Analysts said the company's revenues were boosted by strong sales
of Microsoft's Xbox 360, the latest game console from the US
software giant. Chartered is one of two chip suppliers for the game
console.
"We believe CSM's optimism for its fourth quarter is largely
premised on the production ramp up of Xbox 360 CPUs (central
processing chips)," OCBC Securities said in a note to
clients.
"Following the launch on November 22 in the US, Microsoft's latest
game console was wildly popular and was sold out quickly at most US
stores shortly after its debut," it said.
The profit upgrade boosted Chartered's shares, which were up one
cent at 1.34 Singapore dollars by mid-morning. - AFP /ct
