ASAT Holdings announces preliminary Q1 fiscal 2005 financial results

ASAT Holdings Limited has announced that revenue for its first quarter of fiscal 2005, ending July 31, 2004, is expected to be approximately $54 million, a decline of approximately 14 percent sequentially. 

This compares with the Company's original revenue guidance, given on May 25, 2004, of flat to four percent sequential growth above the $63 million reported for the fourth quarter of fiscal 2004.

"We believe a combination of factors contributed to the sequential decline in first quarter revenue.  These factors included pricing and margin erosion created by accelerated capacity expansion at several companies within the SATS industry; an inventory correction and a shortfall in fine geometry wafer receipts from certain foundries throughout the quarter," said Harry R. Rozakis, chief executive officer of ASAT Holdings Limited. 

"In addressing these dynamic market conditions, we have taken actions focused on reaching the Company's growth and profitability targets for the remainder of fiscal 2005.  We continue to focus on loading our China factory as a key component of this strategy and are seeing good progress in this area."

For more information visit www.asat.com.