|Hsinchu, Taiwan, August 9, 2004- Vanguard International Semiconductor Corporation today announced its financial results for the second quarter of 2004. Net sales of NT$4,161million were 11.5% more than the level recorded in the first quarter or a 56.6% growth on a year-over-year basis. Net income was NT$928million and earnings per share were NT$0.33.
Mr. Daniel S. Chen, spokesman and vice president of Vanguard International Semiconductor Corporation, noted that the second quarter average utilization rate was102%. The wafer shipments were 163 thousand wafers, an 11% increase over the first quarter of 2004, and a 44% jump on a year-over-year basis. Logic foundry accounted for 77% of total wafer shipments or a 15% growth over the previous quarter. The continuous growth of logic foundry shipments resulted in the gross margin to improve to 29% in the second quarter from 25% in the previous quarter.
The first half revenue of 2004 was NT$7,893 million and the income before tax for the same period was NT2,509 million.
Based on the current business forecast, the management's expectations for third quarter 2004 performance are:
1.Market is going through a mid-cycle inventory adjustment.
2.Fab remains fully loaded.
3.ASP to improve slightly qoq.
4.Revenue to grow slightly qoq.
5.Gross margin continues to improve qoq.
Vanguard ended DRAM production in July and has transformed to a pure foundry.