Tuesday, Semiconductor Manufacturing International Corp. (SMI) recorded a wider loss for the fourth quarter compared to last year, resulting from a drop in revenue and a significant increase in operating expenses. Looking forward, the company provided guidance for the first quarter of the fiscal 2010. Separately, the company announced the appointment of new chief business officer, chief operating officer and chief financial officer.
Net loss attributable to the Shanghai, China-based company widened to $482.26 million or $1.08 per ADS from $139.45 million or $0.37 per ADS in the comparable period last year.
Fourth quarter revenue fell 22.2% to $333.09 million from $272.47 million, while operating expenses surged to $496.82 million from $46.44 million in the prior year quarter.
Sales from Greater China, as a percentage of total revenue, continued to grow, and reached 38% of total revenue for the quarter while Mainland China sales reached 21% of total revenue, growing 23.6% year-over-year. Revenue from advanced technology nodes of 0.13 micron and below grew by 12.9% quarter-over-quarter.
In the current quarter, the company recorded gross profit of $35.28 million or margin of 10.6% compared to a loss of $74.63 million or 27.4% margin in the year-ago period.
Looking ahead, the company expects first quarter 2010, revenue to range from flat to 2% increase. Operating expenses excluding foreign exchange differences is expected to range from $84 million to $88 million and capital expenditure to be between $95 million to $100 million for the first quarter.
Separately, the company said that it has named Chris Chi as its chief business officer. Prior to joining the company, Chi worked as a consultant for C-Square Consulting. Further, the company appointed Simon Yang as the chief operating officer, in order to fill the vacancy caused by the resignation of Marco Mora. Prior to joining Semiconductor Yang was the Chief Technology Officer and Senior Vice President of Operations of Chartered Semiconductor.
Additionally, the company appointed Gary Tseng as the chief financial officer. Prior to joining the company, in 2008, Tseng was the chief operating officer at China Solar Corp., a thin-film solar manufacturing start-up company in Shandong, China.
The company also confirmed media reports of a possible capital injection plan and said that it is currently in negotiations with an investor regarding a proposed investment through subscription of shares. The terms of the investment is still under negotiation and no binding agreement has been entered into till now.
The directors of the company are also looking at other strategic and other opportunities to enhance shareholder value in addition to the present offer.
SMI is currently trading at $4.23, up $0.12 or 2.92% on a volume of 0.20 million shares on the NYSE.
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