STATS ChipPAC gears up for 16%-18% revenue increase

Way better than the company's initial expectations.

According to a release, in its fourth quarter 2012 outlook, the company had expected net revenues to be approximately 2% to 8% increase compared to the prior quarter, with adjusted EBITDA in the range of 21% to 27% of revenue, and had expected capital expenditure in the fourth quarter of 2012 to be approximately $40 million to $50 million.

STATS ChipPAC now expects net revenues for the fourth quarter 2012 to be approximately $475 million to $482 million, an increase of approximately 16% to 18% compared to the prior quarter due to higher communications market demand and strong ramp in advanced silicon node wafers for high end smartphones and tablets.

It further expects adjusted EBITDA to be in the range of 25% to 26% of revenue and expects capital expenditure to be in the range of $55 million to $60
million in the fourth quarter of 2012.