Net income was US$1.2 million, or 0.33 cent per American depositary share, compared with a net loss of US$15 million, or 4.1 cents, a year earlier, the Shanghai-based chipmaker said Wednesday in a statement on its Web site. Sales rose 15 percent. Semiconductor Manufacturing had a gain of US$41.7 million from the sale of machinery and equipment, the statement said.

The chipmaker posted an operating loss that was bigger than analysts expected after a slowdown in clients’ orders because of falling sales of cell phones and consumer electronics. The slump is set to continue with Texas Instruments Inc., a key customer of Semiconductor Manufacturing, forecasting lower-than-expected sales in the current quarter.

“The results are disappointing and missed the company’s guidance” for margins, Warren Lau, a Macquarie Securities Ltd. analyst, said from Taipei. He rates the stock “underperform” with a target price of 75 Hong Kong cents for its shares.

The company was expected to report a net loss of US$25.6 million, according to the median estimate of eight analysts surveyed by Bloomberg. Semiconductor Manufacturing posted an operating loss of US$26.9 million, excluding the gain from disposal of assets. Revenue increased to US$383.8 million from US$333.1 million.

The shares rose 3.3 percent to HK$1.27 as of 10:19 a.m. in Hong Kong, compared with a 1.1 percent gain in the Hang Seng Index.

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