ChipPac Beats Estimates, Raises Guidance

ChipPac (CHPC Quote) posted a wider loss in the first quarter and revenue fell, but the company beat lowered estimates and saw sequential improvements in its results.

The semiconductor packaging and test services company said it lost $11.5 million, or 15 cents a share, compared with a loss of $9.7 million, or 14 cents a share, in the same quarter a year ago. Analysts polled by Thomson Financial/First Call had been expecting the company to lose 17 cents a share.

Revenue was $79.2 million, down from $89.9 million in the year-ago quarter, but up 3% sequentially. Analysts had been expecting revenue of $77 million.

For the rest of the year, the company said visibility continues to improve. ChipPac now expects a second-quarter loss of 7 cents to 9 cents a share on revenue of $88.5 million to $91 million, ahead of estimates of a loss of 11 cents on revenue of $84.5 million.

Shares of ChipPac were climbing 7.5% to $9.70 on the news.