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ChipPAC Soars on Outlook

Its loss widens and revenue are a little light.
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Semiconductor test-equipment maker

ChipPAC

(CHPC)

was a major gainer in Wednesday's after market despite a widened loss in its third quarter and lower-than-expected revenue.

ChipPac, based in Fremont, Calif., lost $17.9 million, or 19 cents a share, on revenue of $105.4 million in the latest third quarter, compared with a loss of $3.2 million, or 3 cents a share, on revenue of $94.7 million in the quarter.

The quarter included some charges for layoffs and restructuring. Excluding those, the loss was $7.1 million, or 7 cents a share, in the latest quarter, matching the Thomson First Call estimate. Analysts were forecasting revenue of $107.6 million.

Investors were evidently keying on the company's fourth-quarter outlook, in which the company predicted revenue up 10% to 15% from the third quarter, implying a midpoint about $117 million. Analysts were forecasting revenue of $115.7 million for the fourth quarter. The company also said it expects fourth-quarter earnings to be breakeven to 2 cents a share. Analysts were forecasting breakeven.

"We are driving higher revenue and new business opportunities based on the strength of our product and geographical offerings in IC package assembly and test," the company said, adding that about 40% of the third-quarter's revenue was generated in the last month of the quarter.

Since their 4 p.m. close, the shares are up 79 cents, or 10%, at $8 in Instinet after-hours trading.