Insurance settlement payout boosts earnings of Stats ChipPac

Stats ChipPac's third quarter net profit has quadrupled to US$13.3 million (S$16.6 million) from US$3.2 million in the same period last year.

Revenue for the three months ended Sept 29 fell by 1.8 per cent to US$400.8 million.

The fall reflected a bifurcation of the smartphone market, with sluggish demand in the

high-end segment partially offset by strength in the low-cost segment.

Gross profit fell to US$56.8 million from US$65.2 million previously, mainly due to lower revenue.

Net profit, however, was boosted by the recognition of US$19.6 million of insurance settlement as final compensation for Stats ChipPac's business interruption insurance claims related to a flood in Thailand.

Earnings per share amounted to one US cent while net asset value per share shrank to 45 US cents compared to 46 US cents as at Dec 30.

On its prospect, the company expects net revenues in the fourth quarter to range between flat and a 5 per cent fall compared to the third quarter.