SMIC Q1 Profit Rises; Issues Q2 Guidance - Quick Facts

(RTTNews) - Semiconductor Manufacturing International Corp. (SMI) reported first-quarter net profit attributable to SMIC of $69.8 million compared to $61.4 million, a year ago. Gross margin was 27.8% compared to 24.2%. Revenue was $793.1 million, an increase of 25.0% from $634.3 million, prior year.

Haijun Zhao, SMIC's CEO, said: "In the first half of 2017, we are confronting the challenges of customer changes in market positioning, seasonal inventory adjustments, and overall muted handset market growth in China; however, we have actively pursued new incremental revenue from a variety of customers and markets to mitigate the impact of such headwinds."

For second-quarter, the company expects: revenue to decline by 3% to 6% QoQ; and gross margin to range from 25% to 27%.