TAIPEI, Taiwan, April 29 /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 (1) of NT$13,397 million for the first quarter of 2009
(1Q09), down 46% year-over-year and down 27% sequentially. Net loss
for the quarter totaled NT$1,567 million, down from net income of
NT$2,337 million in 1Q08 and net loss of NT$800 million in 4Q08.
Losses per share for the quarter was NT$0.30 (or US$0.045 per ADS),
compared to diluted earnings per share of NT$0.41 for 1Q08 and
losses per share of NT$0.15 for 4Q08. (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 1Q09 Results Highlights -- Net
revenue contribution from IC packaging operations (including module
assembly), testing operations, and substrates sold to third parties
was NT$10,208 million, NT$2,768 million and NT$421 million,
respectively, and each represented approximately 76%, 21% and 3%,
respectively, of total net revenues for the quarter. -- Cost of
revenues was NT$12,739 million, down 31% year-over-year and down
16% sequentially. -- Raw material cost totaled NT$3,760 million
during the quarter, representing 28% of total net revenues,
compared with NT$4,910 million and 27% of net revenues in the
previous quarter. -- Labor cost totaled NT$2,524 million during the
quarter, representing 19% of total net revenues, compared with
NT$2,863 million and 16% of net revenues in the previous quarter.
-- Depreciation, amortization and rental expenses totaled NT$4,257
million during the quarter, up 8% year-over-year and down 1%
sequentially. -- Total operating expenses during 1Q09 were NT$2,069
million, including NT$750 million in R&D and NT$1,319 million
in SG&A, compared with operating expenses of NT$2,233 million
in 4Q08. The sequential decrease was primarily attributable to
continuing cost savings in 1Q09. Total operating expenses as a
percentage of net revenues for the current quarter were 15%, up
from 11% in 1Q08 and up from 12% in 4Q08. -- Operating loss for the
quarter totaled NT$1,411 million, down from operating income of
NT$967 million in the previous quarter. Operating margin decreased
to a negative 11% in 1Q09 from 5% in 4Q08. -- In terms of
non-operating items: -- Net interest expense was NT$435 million,
down from NT$522 million a quarter ago primarily due to lowered
average bank loan balances and interest rates during the quarter.
-- Net foreign exchange loss of NT$107 million was primarily
attributable to the appreciation of the U.S. dollar against the
N.T. dollar. -- Gain on equity-method investments of NT$24 million
was primarily attributable to our investment in USI. -- Other
non-operating income of NT$283 million were primarily related to
the valuation adjustment of financial assets and other
miscellaneous expenses. Total non-operating expenses for the
quarter were NT$235 million, compared to NT$69 million for 1Q08 and
NT$1,490 million for 4Q08. -- Loss before tax was NT$1,646 million
for 1Q09, compared with a loss of NT$523 million in the previous
quarter. We recorded income tax benefit of NT$50 million during the
quarter, compared to income tax expense of NT$300 million in 4Q08.
-- In 1Q09, net loss was NT$1,567 million, compared to net income
of NT$2,337 million for 1Q08 and net loss of NT$800 million for
4Q08. -- Our total number of shares outstanding at the end of the
quarter was 5,547,110,234 shares, including treasury stock owned by
our subsidiaries and shares bought back from the open market. We
had bought back treasury stock of 217,974,000 shares from the open
market and had cancelled 144,037,000 shares as of March 31, 2009.
Our losses per share for 1Q09 was NT$0.30, or US$0.045 per ADS,
based on 5,183,404,095 weighted average number of shares
outstanding in 1Q09. LIQUIDITY AND CAPITAL RESOURCES -- As of March
31, 2009, our cash and other financial assets totaled NT$27,750
million, compared to NT$27,406 million as of December 31, 2008. --
Capital expenditures in 1Q09 totaled US$24 million, of which US$14
million was used for IC packaging and US$10 million was used for
testing. -- As of March 31, 2009, we had total bank debt of
NT$63,675 million, compared to NT$62,703 million as of December 31,
2008. Total bank debt consisted of NT$7,488 million of revolving
working capital loans, NT$2,405 million of the current portion of
long-term debt, and NT$53,782 million of long-term debt. Total
unused credit lines were NT$53,203 million. -- Current ratio as of
March 31, 2009 was 2.10, compared to 1.83 as of December 31, 2008.
Net debt to equity ratio was 0.51 as of March 31, 2009. -- Total
number of employees was 25,032 as of March 31, 2009, compared to
29,407 as of March 31, 2008 and 26,977 as of December 31, 2008.
Business Review IC Packaging Services (2) -- Net revenues generated
from our IC packaging operations were NT$10,208 million during the
quarter, down NT$9,019 million, or 47% year-over- year, and down
NT$3,797 million, or 27% sequentially. -- Net revenues from
advanced substrate and leadframe-based packaging accounted for 88%
of total IC packaging net revenues during the quarter, up by 2
percentage points from the previous quarter. -- Gross margin for
our IC packaging operations was 5%, down by 16 percentage points
year-over-year and by 10 percentage points sequentially. -- Capital
expenditures for our IC packaging operations amounted to US$14
million during the quarter, of which US$13 million was used for
wirebonding packaging capacity and US$1 million was used for wafer
bumping and flip chip packaging equipment. -- As of March 31, 2009,
there were 8,419 wirebonders in operation. 6 wirebonders were added
and 33 wirebonders was disposed of during the quarter. -- Net
revenues from flip chip packages and wafer bumping services
accounted for 12% of total packaging net revenues, down by 3
percentage points from the previous quarter. (2) IC packaging
services include module assembly services. Testing Services -- Net
revenues generated from our testing operations were NT$2,768
million, down NT$2,127 million, or 43% year-over-year, and down
NT$1,062 million, or 28% sequentially. -- Final testing contributed
86% to total testing net revenues, up by 5 percentage points from
the previous quarter. Wafer sort contributed 10% to total testing
net revenues, down by 5 percentage points from the previous
quarter. Engineering testing contributed 4% to total testing net
revenues, which equaled the previous quarter. -- Depreciation,
amortization and rental expense associated with our testing
operations amounted to NT$1,512 million, up from NT$1,455 million
in 1Q08 and down from NT$1,575 million in 4Q08. -- In 1Q09, gross
margin for our testing operations was 5%, down by 32 percentage
points year-over-year and down by 17 percentage points
sequentially. -- Capital spending on our testing operations
amounted to US$10 million during the quarter. -- As of March 31,
2009, there were 1,572 testers in operation. 70 testers were added
and 81 testers were disposed of during the quarter. Substrate
Operations -- PBGA substrate manufactured by ASE amounted to
NT$1,076 million for the quarter, down NT$992 million, or 48%
year-over-year, and down NT$422 million, or 28% from the previous
quarter. Of the total output of NT$1,076 million, NT$421 million
was from sales to external customers. -- Gross margin for substrate
operations was negative 7% during the quarter, down by 22
percentage points year-over-year and down by 19 percentage points
sequentially. -- In 1Q09, the Company's internal substrate
manufacturing operations supplied 52% (by value) of our total
substrate requirements. Customers -- Our five largest customers
together accounted for approximately 33% of our total net revenues
in 1Q09, compared to 27% in 1Q08 and 30% in 4Q08. Only one single
customer accounted for more than 10% of our total net revenues. --
Our top 10 customers contributed 47% of our total net revenues
during the quarter, compared to 45% in 1Q08 and 46% in 4Q08. -- Our
customers that are integrated device manufacturers, or IDMs,
accounted for 35% of our total net revenues during the quarter,
compared to 43% in 1Q08 and 42% in 4Q08. 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, 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. -- Financial Tables to Follow -- Supplemental Financial
Information Consolidated Operations Amounts in NT$ Millions 1Q/09
4Q/08 1Q/08 Net Revenues 13,397 18,311 24,695 Revenues by End
Application Communication 48% 46% 45% Computer 16% 19% 25%
Automotive and Consumer 35% 35% 30% Others 1% 0% 0% Revenues by
Region North America 54% 54% 50% Europe 12% 15% 13% Taiwan 20% 15%
22% Japan 11% 12% 8% Other Asia 3% 4% 7% IC Packaging Services
Amounts in NT$ Millions 1Q/09 4Q/08 1Q/08 Net Revenues 10,208
14,005 19,227 Revenues by Packaging Type Advanced substrate &
leadframe based 88% 86% 88% Traditional leadframe based 6% 6% 4%
Module assembly 2% 4% 5% Others 4% 4% 3% Capacity CapEx (US$
Millions) * 14 27 78 Number of Wirebonders 8,419 8,446 8,126
Testing Services Amounts in NT$ Millions 1Q/09 4Q/08 1Q/08 Net
Revenues 2,768 3,830 4,895 Revenues by Testing Type Final test 86%
81% 77% Wafer sort 10% 15% 19% Engineering test 4% 4% 4% Capacity
CapEx (US$ Millions) * 10 19 44 Number of Testers 1,572 1,583 1,555
* 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 Mar. 31 Dec. 31 Mar. 31 2009
2008 2008 Net revenues: IC Packaging 10,208 14,005 19,227 Testing
2,768 3,830 4,895 Others 421 476 573 Total net revenues 13,397
18,311 24,695 Cost of revenues (12,739) (15,111) (18,507) Gross
profit 658 3,200 6,188 Operating expenses: Research and development
(750) (875) (1,096) Selling, general and administrative (1,319)
(1,358) (1,740) Total operating expenses (2,069) (2,233) (2,836)
Operating (loss) income (1,411) 967 3,352 Net non-operating
(expenses) income: Interest expense -- net (435) (522) (275)
Foreign exchange gain (loss) (107) (166) 301 Gain (loss) on
equity-method investments 24 (125) 104 Others 283 (677) (199) Total
non-operating (expenses) income (235) (1,490) (69) Income (loss)
before tax (1,646) (523) 3,283 Income tax benefit (expense) 50
(300) (412) (Loss) income from continuing operations and before
minority interest (1,596) (823) 2,871 Minority interest 29 23 (534)
Net income (loss) (1,567) (800) 2,337 Per share data: Earnings
(losses) per share -- Basic NT$(0.30) NT$(0.15) NT$0.43 -- Diluted
NT$(0.30) NT$(0.15) NT$0.41 Earnings (losses) per equivalent ADS --
Basic US$(0.045) US$(0.023) US$0.067 -- Diluted US$(0.045)
US$(0.023) US$0.065 Number of weighted average shares used in
diluted EPS calculation (in thousands) 5,183,404 5,324,543
5,662,801 Exchange rate (NT$ per US$1) 33.82 32.83 31.74 Advanced
Semiconductor Engineering, Inc. Summary of Consolidated Balance
Sheet Data (In NT$ millions) (Unaudited) As of Mar. 31, As of Dec.
31, 2009 2008 Current assets: Cash and cash equivalents 26,619
26,139 Financial assets -- current 1,131 1,267 Notes and accounts
receivable 10,320 11,388 Inventories 4,446 4,992 Others 2,954 2,581
Total current assets 45,470 46,367 Financial assets -- non current
4,540 4,327 Properties -- net 82,405 84,758 Intangible assets
12,499 12,592 Others 4,150 4,146 Total assets 149,064 152,190
Current liabilities: Short-term debts -- revolving credit 7,488
8,779 Current portion of long-term debts 2,405 2,694 Notes and
accounts payable 4,168 5,167 Others 7,575 8,631 Total current
liabilities 21,636 25,271 Long-term debts 53,782 49,855 Long-term
bonds payable 0 1,375 Other liabilities 3,594 3,728 Total
liabilities 79,012 80,229 Minority interest 2,076 2,289
Shareholders' equity 67,976 69,672 Total liabilities &
shareholders' equity 149,064 152,190 Current Ratio 2.10 1.83 Net
Debt to Equity 0.51 0.49 Contact: ASE, Inc. Room 1901, No. 333,
Section 1 Keelung Road, Taipei, Taiwan, 110 Tel: +886-2-8780-5489
Fax: +886-2-2757-6121 http://www.aseglobal.com/ Joseph Tung, CFO /
Vice President Freddie Liu, Vice President Allen Kan, Manager
Email: Clare Lin, Director (US Contact) Tel: +1-408-986-6524 Email:
DATASOURCE: Advanced Semiconductor Engineering, Inc. CONTACT:
Joseph Tung, CFO or Vice President; or Freddie Liu, Vice President;
or Allen Kan, Manager, +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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