This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Semiconductor Manufacturing International CEO Discusses Q1 2011 Results - Earnings Call Transcript

Stocks in this article: SMI

Please also be reminded of the Safe Harbor statement which provides as follows. SMIC's statements of its current expectation are forward looking statements, subject to significant risk and uncertainties.

The actual results may differ materially from those contained in such forward-looking statements. Information as to those factors that could cause actual results to vary can be found in SMIC's Form 20-F filed with the United States Securities and Exchange Commission on June 29, 2010.

For today's agenda, our President and CEO, Dr. David N.K. Wang will speak on SMIC's key initiatives and comment on our business. Following that, CFO, Gary Tseng will walk us through our first quarter 2011 financial results and followed by second quarter 2011 guidance. Then we will open the call for questions-and-answers.

I will now turn the call over to our CEO, Dr. David Wang.

Dr. David N. K. Wang

Thank you, En-Ling. Good morning and good evening to everyone. Thank you for joining us. Today, I’m going to highlight our first quarter performance, our outlook for 2011, several of our recent events, our technology progress and our position in the strengthening Chinese market.

Highlighting our first quarter performance, revenue increased 7% year-over-year and decreased 9% quarter-over-quarter to US$371 million. The quarter-over-quarter revenue decline was largely due to first quarter seasonality and our key customer transition through 65 and 45-nanometer. Despite these situations, China is placed resilient and in the first quarter, China sales grew 54% year-over-year and 3% quarter-over-quarter, and now account for 36% of our revenue.

Looking into the second quarter, as mentioned previously, our customer transition to 65-nanometer and 45-nanometer were also impact our second quarter revenue, for the well rebound in the second half of the year.

As we have a large percentage exposure for the communications market, Q2 is also in part – impacted by communication customers experiencing paradigm shifts in the T&T [ph] sector. Due to this paradigm shift the Japan earthquake disruption for semiconductor supply chain, sound continued adjustment to inventory levels, as well as our continued customer transition to 65-nano and 45 nanometers, we expect our Q2 revenue to decrease as guided.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs