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Chartered sees strong 1Q, files for stock offering

Chartered Semiconductor Manufacturing (Nasdaq: CHRT) said it sees a surge in first quarter income and plans to sell more stock.

After market close Thursday, the Singapore-based chip foundry said it registered to sell 78 million ordinary shares either directly or in the form of American depositary shares. Shareholders of Charter are selling another 135 million ordinary shares, the company said.

Each ADS is equivalent to 10 ordinary shares. Chartered, which started trading on the Nasdaq in October, will have the equivalent of at least 135.9 million American depositary shares outstanding after the offering, according to regulatory filings.

American depositary shares of Chartered fell on news of the follow-on stock offering. In afterhours activity on the Island electronic communications network, Chartered traded at 85 5/16. The stock closed Thursday's regular Nasdaq trading at 88 15/16, up 9 3/16 for the session.

Also Thursday, Chartered said it expects to report first quarter net income of $37.8 million, or 29 cents per ADS. That compares to a loss of $34.9 million, or 35 cents per share, in the year ago period.

The company sees first quarter revenue of $238.4 million, up 82.3 percent year-over-year.

Prior to Thursday's announcement, First Call's survey of 6 analysts predicted a first quarter profit of 18 cents per share.

Competitors of Chartered include Taiwan Semiconductor (Nasdaq: TSM), United Microelectronics and the chip manufacturing operations of IBM (NYSE: IBM).>