ChipMOS Technologies (Bermuda) Ltd. Q2 2008 Earnings Call Transcript

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2008-08-20 17:50:24.0

Tags: Revenue, Microsoft ASP, DRAM, Deutsche Bank AG, Call Transcript, Earnings, Memory, Operational Accounting, Semiconductors, Hardware, Components, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Our first question is from Peter Kim with Deutsche Bank. Please go ahead with you question.

Peter Kim - Deutsche Bank

Hi. Thanks for taking my question. Could you give us an idea about your top customers, percentage of revenues they represented?

SK Chen

Okay. In the first half of this year the revenue from our top customers was the (inaudible) in USA, it is about 21% and the revenue from ProMOS was also around 21% and the factories of Novatek is about 10%. Hynix is ranked at number four, is about 6.5%.

The [T1 makers] from USA contributed about 5.3% and ranked at number five, the top 10 customers contribute around 80% of our total revenue in the first half of this year.

Peter Kim - Deutsche Bank

So, following up ProMOS used to be your number one customer and obviously they reported Q2 results that were pretty dismal, and so I was wondering what your outlook for ASP was for DRAM overall? I assume that ProMOS represents a big percentage of your DRAM revenue?

SJ Cheng

You mean ASP for DRAM or ASP for (inaudible)?

Peter Kim - Deutsche Bank

ASP for DRAM and just from the testing and packaging?

SJ Cheng

So the ASP for DRAM we see the [counter price] for August is continuing to drop. It's a single digit in between 3% to 5% drop, that will be the counter price in August. And for [packaging] I think right now the customers did negotiate a price with us by monthly basis. But the room is pretty limited.

Peter Kim - Deutsche Bank

Lastly, you were talking about your mixed-signal increases. As I recall, your mixed-signal margins were never really that good. And I was wondering, if you are expecting to see increases in mixed-signal, what do you expect the margin from that business to be?

SK Chen

To answer your question, you can see. Previously our top 10 customer occupy around more than 90% of our revenue. Then our top 10 customer occupies very close to 80%. So we already had to cooperate to diversify from our key business segment. Even in the LCD driver to other areas already. Since right now is the beginning, the growth margin is positive. But, they are limited, because they have not reached the economy of scale yet. But overall speaking, under the current situation, the mixed-signal growth margin is much-much better than all the memories.

 

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