Gadgets & Electronics

SMIC Reports Sales Decline

Semiconductor Manufacturing International Corporation's (SMI) sales decreased 14.7% in the first quarter of 2005 to $248.8 million from $291.8 million in the prior quarter. These figures came today during the company's quarterly earnings announcement.

SMIC reported an increase in capacity to 131,172 8-inch equivalent wafers per month and a utilization rate of 85% in the first quarter of 2005. Gross margins were 3.4% in the first quarter of 2005 compared to 20.3% in the fourth quarter of 2004. Net loss increased to $30.0 million in the first quarter of 2005 compared to a loss of $11.2 million in the fourth quarter of 2004.

"Our revenues were in line with expectations, down 15% in 1Q05, mainly due to industry softness and a generally tough pricing environment for foundries," said Dr. Richard Chang, President and Chief Executive Officer of SMIC.

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