STATS ChipPac
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extracted from CNA website
has reported a smaller-than-expected loss for the third quarter.
It booked a net loss of US$1 million for the three months to Sepember, compared to a loss of US$7.4 million in the same period a year ago.
Revenue jumped 30 percent to US$301 million.
The numbers include US$14 million in special items and costs related to the merger of STATS and ChipPAC.
The chip testing and packaging firm expects to return to the black in the fourth quarter.
STATS ChipPAC is gaining new customers as European and Japanese electronics makers outsource more of their chip testing and packaging needs.
It says the business outlook for 2006 remains bright.
For the nine months to September, losses came to US$43 million, compared to a US$1.3 million profit last year. - CNA /c -
what is the purpose of merging with chipPac to become the biggest testing company?
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to capitalise on competitive advantages
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on paper yes, but since the merger they have not reported a single good results.
before the merger the share price was 2.70, now less than a dollar. -
normally share prices will fall during mergers or acquisitions.
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if top management focus their strategy on share price, its usually for short term benefits and most likely will lead to business failure. They usually focus on long term development. Give them time, and u would probably see a rise in the share prices.
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i really dont understand why they find synergy.
it has been quite sometime since the merger. the share price keeps dropping.
even long term i dont see the company making good profits. more the chip industry is cyclical. -
Well...it may not be less than a dollar soon. I thought that the idea for merger was to make the company more competitive.Originally posted by dragg:on paper yes, but since the merger they have not reported a single good results.
before the merger the share price was 2.70, now less than a dollar.
ST assembly was the perfect choice for merger as both companies shared similar Core Values. -
most tech companies like that..quite volatile.
I think better invest in sth more stable.. like natural resources, etc -
too late.
i bought it at 3.80 many years ago.
the share price climbed to 2.70 after a string of good news. then came the stupid merger and it is now less than a dollar because of a string of poor results.
why merge if they cant generate better profits? -
maybe they were not focusing on maximising shareholder's wealth..jus company survival?
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I wonder why the company has a high cost of revenue....
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bribesOriginally posted by shade343:I wonder why the company has a high cost of revenue.... -
i dont understand why they merge when there arent obvious benefits.
they should have diversified. chip testing is hardly a lucrative business nowadays. -
STATSchipac on the way to recovery??
Last done:1.170
I bought mine at 90 cents!
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its cyclical, take profit while you can.Originally posted by shade343:STATSchipac on the way to recovery??
Last done:1.170
I bought mine at 90 cents! -
Nah. They are going to be profitable soon. Lets wait for the next Quarter's result.Originally posted by dragg:its cyclical, take profit while you can.
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hopefully. i bought at 1.85Originally posted by shade343:Nah. They are going to be profitable soon. Lets wait for the next Quarter's result.