Taiwanese assembly and test services supplier ChipMOS Technologies Inc. said it has signed a syndicated loan agreement with a local banking syndicate for $31.9 million (1 billion new Taiwanese dollars).
The four-year loan comes from a syndicate consisting of six local banks in Taiwan. Taiwan Cooperative Bank is acting as the lead manager of the syndicate, and the five co-manager banks are Chang Hwa Bank, Hua Nan Commercial Bank, Ta Chong Bank, Shin Kong Bank and Fuhwa Bank. The proceeds of the loan will be used by ChipMOS Taiwan for working capital and general corporate purposes; the company said that currently it intends to use the money primarily in support of its Taiwan operations.
"Our business strategies have weathered the challenges of the market downturn that started in 2001, which is evidenced by our current market competitiveness. Receipt of the syndicated loan is a positive recognition of our recent operating results and future prospects," S.J. Cheng, Chairman and CEO of ChipMOS, said in a statement.
ChipMOS posted Q1 revenue of $106 million (3.3 billion new Taiwanese dollars), compared to $117 million (3.7 billion NT) in Q4 2004, and $98 million (3 billion NT) in Q1 2004. Net income for the quarter was $6 million (174 million NT), or 8 cents (2.58 NT) per common share. On a consolidated basis, Q1's gross margin was 20 percent, compared to 36 percent in Q1 2004 and 23 percent in Q4 2004.
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