Stats ChipPAC

Stats ChipPAC: 2Q10 results. Revenue +35.7% yoy to $435m, reflecting strong demand across all segments and was better than seasonal trend. Overall utilization continued to trend up from 51% last yr to 67% this qtr. Net profit surged to $37m from $2.2m a yr ago, as margins improved due to cost reduction and better product mix. Group now reaping the benefits of the restructuring /work force reduction plan carried out last yr

Mgt positive on outlook, increased capex budget to US$270m from US$200m, mostly on invmts in wafer level packaging and 300nm eWLB manufacturing capacity. Cash flow remained healthy. Recorded cash (and mkt sec) of $381m, debt of $451m....

Stats makes cash tender offer for all of its $213m 6.75% senior notes due 2011, expects to record charge to net income in 3Q10 relating to premium that may be paid in lieu of this offer. Company also proposed capital reduction and cash distribution of up to $600m to sh/h (approx 23.7cts/sh), although actual distribution depends on company’s ability to raise new debt.