Semiconductor Manufacturing International Corporation's (SMI) financial results for the quarter ended June 30, 2007 show a net loss of US$2.1 million, compared to a net income of US$8.8 million in the first quarter.
Chief Executive Officer Dr. Richard Chang said, "SMIC continued to expand its foundry business in the second quarter of 2007. The company posted increasing revenues year-on-year, but declining revenues quarter-on-quarter due to difficult pricing pressures in the DRAM market."
The company's revenue increased by 3.7% over the second quarter in 2006 to US$374.8 million, but decreased by 3.5% from US$388.3 million sequentially. Gross margins were 10.3% in the second quarter compared to 9.5% in the first quarter of the year.
"Looking at the recent market trends, mobile phone applications continue to grow in demand as well as in variety. We also see strong foundry demand for power management ICs and consumer applications such as personal multimedia players and MP3 and MPEG4 applications," said Dr. Chang.