ChipPac Raises Second-Quarter Guidance

Semiconductor packaging company ChipPac(CHPC Quote - Cramer on CHPC - Stock Picks) said on Tuesday that it was raising its second-quarter guidance due to increased demand, and the company filed documents with the SEC sell $12 million shares of stock worth about $138 million.

ChipPac said it now expects to post a narrower net loss of 5 cents to 7 cents a share in the second quarter, compared to the company's original guidance of a loss of 7 cents to 9 cents a share. Analysts polled by Thomson Financial/First Call are looking for a loss of 8 cents.

Second-quarter revenue is also expected to be higher, in the range of $91 million to $95 million, representing growth of 15% to 20%. Originally the company had forecast growth of 12% to 15% for the quarter.

In a press release, ChipPac said its new outlook is the result of increased customer demand and select pricing increases. The company expects to achieve an operating profit in the second-quarter.

Separately, ChipPac announced plans to sell 12 million shares worth about $138 million. The company will use the proceeds to pay down loans and other general corporate purposes.