Stats Chippac

Stats Chippac: Revenue for 1Q13 + 4.2% yoy to $406.4m but -15.4% qoq, which had the benefit of an extra week. Excluding the extra wk, 1Q13 rev was -8.9% vs qoq. The first qtr revenue saw seasonal demand weakness, tight inventory control in the wireless handset, tablet and consumer markets, and continued softness in the personal computer market. Net income was $3.5m, +25% yoy and +106% qoq. Going forward, grp note that based on current visibility, expect net revenues in 2Q13 to increase approximately 2% to 6% compared to the prior qtr, with adjusted EBITDA in the range of 21% to 25% of revenue. Strees however that the outlook for 2Q13 is subject to a number of risks and uncertainties that could cause actual events or results to differ materially from those disclosed in the outlook statements. Separately we note and re-highlight that recently TSMC, the world’s largest contract maker of chips, forecast record quarterly sales and raised its spending plan as continued growth in the smartphone market drives demand. Recall that TSMC is a key customer of Stats Chippac, and we do not rule out some positive momentum to flow through, on back of TSMC’s positive guidance.