STATS ChipPAC returned to profit --in 4th Qtr

SINGAPORE (XFN-ASIA) - STATS ChipPAC returned to profit in the fourth
quarter to December, with a net profit of 16.88 mln usd, compared to a
469 mln usd net loss a year before, as margins improved on the back of
robust semiconductor demand.

The strong fourth-quarter performance helped to narrow its 2005
net loss to 26.31 mln usd from 467.72 mln usd a year before, which
included a 453 mln usd goodwill write-down related to the merger of STATS and ChipPAC.

STATS ChipPAC's fourth-quarter net profit beat the 8.77-10.50 mln
usd
range of estimates of net profit by analysts polled by XFN-Asia. The
full-year net loss was also narrower than the 32.69-34.42 range of
forecasts of net loss by the analysts.

"This was another record quarter for us. We achieved continued
strong
revenue growth that exceeded the high end of our guidance," said STATS
ChipPAC president and chief executive Tan Lay Koon.

"Our net profit came in above the high end of our prior guidance
due
to higher sales combined with a favorable product mix and increased
operating synergies resulting from our merger," he said.

"We expect that positive momentum in our business will continue
into
the first quarter and full year of 2006, with revenues improving
faster
than the semiconductor industry as a whole," he said.

STATS ChipPAC expects sales in the first quarter to be 3-8 pct
greater than in the fourth quarter.

Based on US generally accepted accounting principles (GAAP),
diluted
earnings are expected at 0.03-0.06 usd per American Depositary Share
(ADS). Based on non-US GAAP, earnings per ADS could reach 0.10-0.13
usd.