TAIPEI, Taiwan, Feb. 12 /PRNewswire-Asia-FirstCall/ -- Advanced
Semiconductor Engineering, Inc. (TAIEX: 2311; NYSE: ASX) ("We",
"ASE", or the "Company"), the world's largest independent provider
of IC packaging and testing services, today reported unaudited net
revenues (Note 1) of NT$18,311 million for the fourth quarter of
2008 (4Q08), down 37% year-over-year and down 29% sequentially. Net
loss for the quarter totaled NT$800 million, down from net income
of NT$3,704 million in 4Q07 and net income of NT$2,212 million in
3Q08. Loss per share for the quarter was NT$0.15 (or US$0.023 per
ADS), compared to diluted earnings per share of NT$0.64 for 4Q07
and NT$0.41 for 3Q08. For the full year of 2008, the Company
reported net revenues of NT$94,431 million and net income of
NT$6,160 million. Diluted earnings per share for the full year of
2008 was NT$1.12, or US$0.178 per ADS. Note 1: All financial
information presented in this press release is unaudited,
consolidated and prepared in accordance with accounting principles
generally accepted in the Republic of China, or ROC GAAP. Such
financial information is generated internally by us, and has not
been subjected to the same review and scrutiny, including internal
auditing procedures and audit by our independent auditors, to which
we subject our audited consolidated financial statements, and may
vary materially from the audited consolidated financial information
for the same period. Any evaluation of the financial information
presented in this press release should also take into account our
published audited consolidated financial statements and the notes
to those statements. In addition, the financial information
presented is not necessarily indicative of our results for any
future period. RESULTS OF OPERATIONS 4Q08 Results Highlights -- Net
revenue contribution from IC packaging operations (including module
assembly), testing operations, and substrates sold to third parties
was NT$14,005 million, NT$3,830 million and NT$476 million,
respectively, and each represented approximately 76%, 21% and 3%,
respectively, of total net revenues for the quarter. -- Cost of
revenues was NT$15,096 million, down 23% year-over-year and down
21% sequentially. -- Raw material cost totaled NT$4,910 million
during the quarter, representing 27% of total net revenues,
compared with NT$7,370 million and 29% of net revenues in the
previous quarter. -- Labor cost totaled NT$2,863 million during the
quarter, representing 16% of total net revenues, compared with
NT$3,885 million and 15% of net revenues in the previous quarter.
-- Depreciation, amortization and rental expenses totaled NT$4,290
million during the quarter, up 4% year-over-year and up 3%
sequentially. -- Total operating expenses during 4Q08 were NT$2,232
million, including NT$811 million in R&D and NT$1,421 million
in SG&A, compared with operating expenses of NT$2,733 million
in 3Q08. The sequential decrease was primarily attributable to a
decrease in salary and employee bonus adjustment in 4Q08. Total
operating expenses as a percentage of net revenues for the current
quarter were 12%, up from 9% in 4Q07 and up from 11% in 3Q08. --
Operating profit for the quarter totaled NT$983 million, down from
NT$3,896 million in the previous quarter. Operating margin
decreased to 5% in 4Q08 from 15% in 3Q8. -- In terms of
non-operating items: -- Net interest expense was NT$522 million, up
from NT$421 million a quarter ago primarily due to a higher bank
loan balances during the quarter. -- Net foreign exchange loss of
NT$166 million was primarily attributable to the appreciation of
the U.S. dollar against the N.T. dollar. -- Loss on equity-method
investment of NT$125 million was primarily attributable to our
investment in USI. -- Other non-operating expenses of NT$693
million were primarily related to the severance pay of NT$270
million and loss from inventory valuation adjustment of NT$215
million. Total non- operating expenses for the quarter were
NT$1,506 million, compared to NT$873 million for 4Q07 and NT$742
million for 3Q08. -- Loss before tax was NT$523 million for 4Q08,
compared with income before tax of NT$3,154 million in the previous
quarter. We recorded income tax expense of NT$300 million during
the quarter, compared to income tax expense of NT$777 million in
3Q08. Income tax expense of NT$300 million in 4Q08 was primarily
related to the valuation allowance adjustment of deferred income
tax assets. -- In 4Q08, net loss was NT$800 million, compared to
net income of NT$3,704 million for 4Q07 and NT$2,212 million for
3Q08. -- Our total number of shares outstanding at the end of the
quarter was 5,690,427,734 shares, including treasury stock owned by
our subsidiaries and shares bought back from the open market. We
had bought back treasury stock of 108,700,000 shares from the open
market but had not yet cancelled as of December 31, 2008. Our
losses per share for 4Q08 was NT$0.15, or US$0.023 per ADS, based
on 5,324,543,204 weighted average number of shares outstanding in
4Q08. 2008 Full-year Results -- Net revenues for the full year of
2008 amounted to NT$94,431 million, down 7% from 2007. The revenue
contribution from IC packaging operations (including module
assembly), testing operations, and others were NT$73,392 million,
NT$19,021 million, and NT$2,018 million, respectively, and each
represented approximately 78%, 20% and 2% respectively, of total
net revenues for the year. -- Cost of revenues for the full year of
2008 were NT$71,886 million, a slight decrease compared to 2007. --
Raw material cost totaled NT$27,276 million during the year,
representing 29% of total net revenues, compared with NT$27,913
million and 28% of net revenues in 2007. -- Labor cost totaled
NT$14,550 million during the year, representing 15% of total net
revenues, compared with NT$14,684 million and 15% of net revenues
in 2007. -- Depreciation, amortization and rental expenses totaled
NT$16,361 million during the year, relatively unchanged compared to
2007. As a percentage of net revenues, depreciation, amortization
and rental expenses were 17% during the year, up from 16% in 2007.
-- Gross profit for the year was NT$22,545 million, down 23%
compared to NT$29,088 million in 2007. Gross margin was 24% for the
year, down from 29% in 2007. -- Total operating expenses during
2008 were NT$10,730 million, including NT$3,812 million in R&D
and NT$6,918 million in SG&A. Total operating expenses as a
percentage of net revenues was 11% in 2008, up from 10% in 2007. --
Operating income for the year was NT$11,815 million, compared to
operating income of NT$19,297 for the previous year. Operating
margin was 13% in 2008, which decreased from 19% in 2007. -- Total
non-operating expenses for the year was NT$2,339 million, compared
to NT$1,945 million for 2007. The increase was primarily due to the
valuation loss from financial assets, and the severance pay
recorded in 2008. -- Income before tax was NT$9,476 million for
2008. We recognized an income tax expense of NT$2,269 million
during the year. In 2008, net income amounted to NT$6,160 million,
compared with a net income of NT$12,165 in 2007. -- Our total
shares outstanding at the end of the year were 5,690,427,734,
including treasury stock. Our diluted EPS for 2008 was NT$1.12, or
US$0.178 per ADS, based on 5,457,356,171 weighted average number of
shares outstanding. LIQUIDITY AND CAPITAL RESOURCES -- As of
December 31, 2008, our cash and other financial assets totaled
NT$26,139 million, compared to NT$26,728 million as of September
30, 2008. -- Capital expenditures in 4Q08 totaled US$46 million, of
which US$27 million was used for IC packaging and US$19 million was
used for testing. -- For the full year 2008, the Company spent
US$395 million for capital expenditures, including US$227 million
for IC packaging, US$165 million for testing, and US$3 million for
interconnect material. -- As of December 31, 2008, we had total
bank debt of NT$62,703 million, compared to NT$66,367 million as of
September 30, 2008. Total bank debt consisted of NT$8,779 million
of revolving working capital loans, NT$2,694 million of the current
portion of long-term debt, NT$1,375 million of long-term bonds
payable and NT$49,855 million of long-term debt. Total unused
credit lines were NT$69,287 million. -- Current ratio as of
December 31, 2008 was 1.83, compared to 1.62 as of September 30,
2008. Net debt to equity ratio was 0.49 as of December 31, 2008. --
Total number of employees was 26,977 as of December 31, 2008,
compared to 29,942 as of December 31, 2007 and 30,511 as of
September 30, 2008. Business Review IC Packaging Services (Note 2)
-- Net revenues generated from our IC packaging operations were
NT$14,005 million during the quarter, down NT$8,556 million, or 38%
year-over- year, and down NT$6,122 million, or 30% sequentially. --
Net revenues from advanced substrate and leadframe-based packaging
accounted for 86% of total IC packaging net revenues during the
quarter, which equaled the previous quarter. -- Gross margin for
our IC packaging operations was 15%, down by 14 percentage points
year-over-year and by 6 percentage points sequentially. -- Capital
expenditures for our IC packaging operations amounted to US$27
million during the quarter, of which US$21 million was used for
wirebonding packaging capacity and US$6 million was used for wafer
bumping and flip chip packaging equipment. -- As of December 31,
2008, there were 8,446 wirebonders in operation. 10 wirebonders
were added and none was disposed of during the quarter. -- Net
revenues from flip chip packages and wafer bumping services
accounted for 15% of total packaging net revenues, which equaled
the previous quarter. Note 2: IC packaging services include module
assembly services. Testing Services -- Net revenues generated from
our testing operations were NT$3,830 million, down NT$1,846
million, or 33% year-over-year, and down NT$1,365 million, or 26%
sequentially. -- Final testing contributed 81% to total testing net
revenues, and was up 1% from the previous quarter. Wafer sort
contributed 15% to total testing net revenues, down 3 percentage
points from the previous quarter. Engineering testing contributed
4% to total testing net revenues, up 2 percentage points from the
previous quarter. -- Depreciation, amortization and rental expense
associated with our testing operations amounted to NT$1,575
million, up from NT$1,538 million in 4Q07 and down from NT$1,593
million in 3Q08. -- In 4Q08, gross margin for our testing
operations was 22%, down by 23 percentage points year-over-year and
down by 14 percentage points sequentially. -- Capital spending on
our testing operations amounted to US$19 million during the
quarter. -- As of December 31, 2008, there were 1,583 testers in
operation. 22 testers were added and 77 testers were disposed of
during the quarter. Substrate Operations -- PBGA substrate
manufactured by ASE amounted to NT$1,498 million for the quarter,
down NT$1,031 million, or 41% year-over-year, and down NT$783
million, or 34% from the previous quarter. Of the total output of
NT$1,498 million, NT$476 million was from sales to external
customers. -- Gross margin for substrate operations was 12% during
the quarter, down by 8 percentage points year-over-year and
sequentially. -- In 4Q08, the Company's internal substrate
manufacturing operations supplied 54% (by value) of our total
substrate requirements. -- As of December 31, 2008, the Company's
PBGA capacity was 52 million units per month. Customers -- Our five
largest customers together accounted for approximately 30% of our
total net revenues in 4Q08, compared to 23% in 4Q07 and 27% in
3Q08. No single customer accounted for more than 10% of our total
net revenues. -- Our top 10 customers contributed 46% of our total
net revenues during the quarter, compared to 43% in 4Q07 and
relatively unchanged compared to 3Q08. -- Our customers that are
integrated device manufacturers, or IDMs, accounted for 42% of our
total net revenues during the quarter, compared to 43% in 4Q07 and
41% in 3Q08. About ASE, Inc. ASE, Inc. is the world's largest
independent provider of IC packaging services and testing services,
including front-end engineering testing, wafer probing and final
testing services. ASE, Inc.'s international customer base of more
than 200 customers includes such leading names as ATI Technologies
Inc., CSR plc, Freescale Semiconductor, Inc., MediaTek Inc., NEC
Corporation, NVIDIA Corporation, NXP Semiconductors, Qualcomm
Incorporated, RF Micro Devices Inc., STMicroelectronics N.V. and
VIA Technologies, Inc. With advanced technological capabilities and
a global presence spanning Taiwan, Korea, Japan, Singapore,
Malaysia and the United States, ASE, Inc. has established a
reputation for reliable, high quality products and services. For
more information, visit our website at http://www.aseglobal.com/.
Safe Harbor Notice This press release contains "forward-looking
statements" within the meaning of Section 27A of the United States
Securities Act of 1933, as amended, and Section 21E of the United
States Securities Exchange Act of 1934, as amended, including
statements regarding our future results of operations and business
prospects. Although these forward-looking statements, which may
include statements regarding our future results of operations,
financial condition or business prospects, are based on our own
information and information from other sources we believe to be
reliable, you should not place undue reliance on these
forward-looking statements, which apply only as of the date of this
press release. The words "anticipate", "believe", "estimate",
"expect", "intend", "plan" and similar expressions, as they relate
to us, are intended to identify these forward-looking statements in
this press release. Our actual results of operations, financial
condition or business prospects may differ materially from those
expressed or implied in these forward-looking statements for a
variety of reasons, including risks associated with cyclicality and
market conditions in the semiconductor industry; demand for the
outsourced semiconductor packaging and testing services we offer
and for such outsourced services generally; the highly competitive
semiconductor industry; our ability to introduce new packaging,
interconnect materials and testing technologies in order to remain
competitive; our ability to successfully integrate pending and
future mergers and acquisitions; international business activities;
our business strategy; general economic and political conditions,
including the recent global financial crisis; possible disruptions
in commercial activities caused by natural or human-induced
disasters; our future expansion plans and capital expenditures; the
strained relationship between the Republic of China and the
People's Republic of China; fluctuations in foreign currency
exchange rates; and other factors. For a discussion of these risks
and other factors, please see the documents we file from time to
time with the Securities and Exchange Commission, including our
2007 Annual Report on Form 20-F filed on June 30, 2008. --
Supplemental Financial Information -- Consolidated Operations
Amounts in NT$ Millions 4Q/08 3Q/08 4Q/07 Net Revenues 18,311
25,815 28,976 Revenues by End Application Communication 46% 44% 43%
Computer 19% 23% 25% Automotive and Consumer 35% 33% 31% Others 0%
0% 1% Revenues by Region North America 54% 55% 51% Europe 15% 15%
13% Taiwan 15% 18% 20% Japan 12% 9% 7% Other Asia 4% 3% 9% IC
Packaging Services Amounts in NT$ Millions 4Q/08 3Q/08 4Q/07 Net
Revenues 14,005 20,127 22,561 Revenues by Packaging Type Advanced
substrate & leadframe based 86% 89% 87% Traditional leadframe
based 6% 4% 4% Module assembly 4% 4% 6% Others 4% 3% 3% Capacity
CapEx (US$ Millions) * 27 50 97 Number of Wirebonders 8,446 8,436
8,003 Testing Services Amounts in NT$ Millions 4Q/08 3Q/08 4Q/07
Net Revenues 3,830 5,195 5,676 Revenues by Testing Type Final test
81% 80% 76% Wafer sort 15% 18% 22% Engineering test 4% 2% 2%
Capacity CapEx (US$ Millions) * 19 45 60 Number of Testers 1,583
1,638 1,534 * Capital expenditure amounts exclude building
construction costs. Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Income Statements Data (In NT$ millions,
except per share data) (Unaudited) For the three months ended For
the period ended Dec. 31 Sep. 30 Dec. 31 Dec. 31 Dec. 31 2008 2008
2007 2008 2007 Net revenues: IC Packaging 14,005 20,127 22,561
73,392 78,517 Testing 3,830 5,195 5,676 19,021 20,007 Others 476
493 739 2,018 2,639 Total net revenues 18,311 25,815 28,976 94,431
101,163 Cost of revenues 15,096 19,186 19,717 71,886 72,075 Gross
profit 3,215 6,629 9,259 22,545 29,088 Operating expenses: Research
and development 811 925 1,128 3,812 3,284 Selling, general and
administrative 1,421 1,808 1,602 6,918 6,507 Total operating
expenses 2,232 2,733 2,730 10,730 9,791 Operating income 983 3,896
6,529 11,815 19,297 Net non-operating (income) expenses: Interest
expenses -- net 522 421 293 1,487 1,226 Foreign exchange loss
(gain) 166 146 (199) (282) (404) Loss (gain) on equity -method
investment 125 (69) (96) (77) (346) Others 693 244 875 1,211 1,469
Total non-operating expenses 1,506 742 873 2,339 1,945 (Loss)
income before tax (523) 3,154 5,656 9,476 17,352 Income tax expense
300 777 1,165 2,269 3,358 (Loss) income from continuing operations
and before minor interest (823) 2,377 4,491 7,207 13,994 Minority
interest (23) 165 787 1,047 1,829 Net (loss) income (800) 2,212
3,704 6,160 12,165 Per share data: Earnings (loss) per share --
Basic NT$(0.15) NT$0.41 NT$0.68 NT$1.14 NT$2.26 -- Diluted
NT$(0.15) NT$0.41 NT$0.64 NT$1.12 NT$2.18 Earnings (loss) per
equivalent ADS -- Basic US$(0.023) US$0.067 US$0.105 US$0.181
US$0.344 -- Diluted US$(0.023) US$0.066 US$0.099 US$0.178 US$0.332
Number of weighted Average shares used in diluted EPS calculation
(in thousands) 5,324,543 5,403,832 5,759,515 5,457,356 5,633,145
Exchange rate (NT$ per US$1) 32.83 30.95 32.44 31.47 32.80 Advanced
Semiconductor Engineering, Inc. Summary of Consolidated Balance
Sheet Data (In NT$ millions) (Unaudited) As of Dec. 31, As of Sep.
30, 2008 2008 Current assets: Cash and cash equivalents 26,139
26,728 Financial assets -- current 1,270 1,757 Notes and accounts
receivable 11,388 17,875 Inventories 4,992 5,808 Others 2,578 3,423
Total current assets 46,367 55,591 Financial assets -- non current
4,327 4,554 Properties -- net 84,758 84,953 Intangible assets
12,592 12,533 Others 4,146 4,294 Total assets 152,190 161,925
Current liabilities: Short-term debts -- revolving credit 8,779
10,956 Short-term debts -- current portion of long-term debts 2,694
2,958 Short-term debts -- current portion of bonds payable 0 1,375
Notes and accounts payable 5,167 8,868 Others 8,631 10,077 Total
current liabilities 25,271 34,234 Long-term debts 49,855 51,078
Long-term bonds payable 1,375 0 Other liabilities 3,728 2,938 Total
liabilities 80,229 88,250 Minority interest 2,289 2,843
Shareholders' equity 69,672 70,832 Total liabilities &
shareholders' equity 152,190 161,925 Current Ratio 1.83 1.62 Net
Debt to Equity 0.49 0.51 Contact: ASE, Inc. Joseph Tung, CFO / Vice
President Freddie Liu, Vice President Allen Kan, Manager Tel:
+886-2-8780-5489 Fax: +886-2-2757-6121 Email: Website:
http://www.aseglobal.com/ US contact: Clare Lin, Director Tel:
+1-408-986-6524 Email: DATASOURCE: Advanced Semiconductor
Engineering, Inc. CONTACT: Joseph Tung, CFO or Vice President, or
Freddie Liu, Vice President, +886-2-8780-5489, or fax,
+886-2-2757-6121, or , or Clare Lin, Director (US Contact),
+1-408-986-6524, or , all of Advanced Semiconductor Engineering,
Inc. Web Site: http://www.aseglobal.com/
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