Chartered Semiconductor, one of the world's biggest makers of custom-built microchips, on July 25 said it returned to profitability in the second quarter but forecast a net loss for the next three months. Net income was 43.4 million US dollars, compared with a net loss of 25.3 million dollars in the same quarter last year, the company said.
The net income includes a tax benefit of 49.5 million dollars, Chartered said. Revenues jumped 41.1 percent to 457.6 million dollars from 324.3 million in the same quarter last year, said the company which is listed in Singapore and on New York's NASDAQ high-tech market. The company, which makes chips for set-top boxes, video-game devices and MP3 and DVD players, forecasts a third-quarter loss of 29 million dollars.
Chia Song Hwee, Chartered's president and chief executive officer, said the company faces a challenge from rising costs. "Crude oil price increases, a weaker US dollar and input cost increases in items such as chemicals, process gases and supplies are nullifying the results of our cost reduction and productivity improvement efforts," he said.