TAIPEI, Taiwan, Oct. 30 /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$25,205 million for the third quarter of
2009 (3Q09), down 2% year-over-year and up 21% sequentially. Net
income for the quarter totaled NT$3,187 million, up from NT$2,212
million in 3Q08 and up from NT$1,674 million in 2Q09. Diluted
earnings per share for the quarter was NT$0.61 (or US$0.093 per
ADS), compared to diluted earnings per share of NT$0.41 for 3Q08
and NT$0.32 for 2Q09. For the first three quarters of 2009, diluted
earnings per share was NT$0.63 (or US$0.095 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 3Q09 Results Highlights * Net
revenue contribution from IC packaging operations (including module
assembly), testing operations, and substrates sold to third parties
was NT$20,005 million, NT$4,588 million and NT$612 million,
respectively, and each represented approximately 79%, 18% and 3%,
respectively, of total net revenues for the quarter. * Cost of
revenues was NT$18,848 million, down 3% year-over-year and up 15%
sequentially. - Raw material cost totaled NT$7,442 million during
the quarter, representing 30% of total net revenue, compared with
NT$6,168 million and 30% of net revenue in the previous quarter. -
Labor cost totaled NT$3,590 million during the quarter,
representing 14% of total net revenue, compared with NT$3,028
million and 15% of net revenue in the previous quarter. -
Depreciation, amortization and rental expenses totaled NT$4,108
million during the quarter, down 1% year-over-year and down 1%
sequentially. * Total operating expenses during 3Q09 were NT$2,390
million, including NT$956 million in R&D and NT$1,434 million
in SG&A, compared with operating expenses of NT$2,028 million
in 2Q09. Total operating expenses as a percentage of net revenue
for the current quarter were 9%, down from 11% in 3Q08 and 10% in
2Q09. * Operating income for the quarter totaled NT$3,967 million,
up from NT$2,496 million in the previous quarter. Operating margin
increased to 16% in 3Q09 from 12% in 2Q09. * In terms of
non-operating items: - Net interest expense was NT$303 million,
down from NT$340 million a quarter ago primarily due to lower
average interest rates during the quarter. - Net foreign exchange
loss of NT$30 million was primarily attributable to the
depreciation of the U.S. dollar against the N.T. dollar. - Gain on
equity-method investments of NT$112 million was primarily
attributable to our investment in USI. - Other non-operating income
of NT$111 million was primarily related to scrap sales and other
miscellaneous gains. Total non-operating expenses for the quarter
were NT$110 million, compared to NT$561million for 3Q08 and NT$290
million for 2Q09. * Income before tax was NT$3,857 million for
3Q09, compared to NT$2,206 million in the previous quarter. We
recorded income tax expense of NT$558 million during the quarter,
compared to NT$559 million in 2Q09. * In 3Q09, net income was
NT$3,187 million, compared to NT$2,212 million for 3Q08 and
NT$1,674 million for 2Q09. * Our total number of shares outstanding
at the end of the quarter was 5,480,262,954, including treasury
stock owned by our subsidiaries. Our 3Q09 diluted earnings per
share of NT$0.61 (or US$0.093 per ADS) was based on 5,186,949,206
weighted average number of shares outstanding in 3Q09. LIQUIDITY
AND CAPITAL RESOURCES * As of Sep 30, 2009, our cash and other
financial assets totaled NT$32,520 million, compared to NT$28,676
million as of Jun 30, 2009. * Capital expenditures in 3Q09 totaled
US$109 million, of which US$91 million was used for IC packaging,
US$17 million was used for testing and US$1 million was used for
interconnect materials. * As of Sep 30, 2009, we had total bank
debt of NT$66,381 million, compared to NT$62,176 million as of June
30, 2009. Total bank debt consisted of NT$17,856 million of
revolving working capital loans, NT$3,972 million of the current
portion of long-term debt, and NT$44,553 million of long-term debt.
Total unused credit lines amounted to NT$52,404 million. * Current
ratio as of Sep 30, 2009 was 1.52, compared to 1.90 as of Jun 30,
2009. Net debt to equity ratio was 0.48 as of Sep 30, 2009. * Total
number of employees was 27,940 as of Sep 30, 2009, compared to
30,511 as of Sep 30, 2008 and 26,406 as of Jun 30, 2009. BUSINESS
REVIEW IC Packaging Services (Note 2) * Net revenues generated from
our IC packaging operations were NT$20,005 million during the
quarter, down NT$122 million, or 1% year-over-year, and up NT$3,414
million, or 21% sequentially. * Net revenues from advanced
substrate and leadframe-based packaging accounted for 88% of total
IC packaging net revenues during the quarter, down by 3 percentage
points from the previous quarter. * Gross margin for our IC
packaging operations during the quarter was 21%, flat from same
period last year and up by 2 percentage points sequentially. *
Capital expenditures for our IC packaging operations amounted to
US$91 million during the quarter, of which US$71 million was used
for wirebonding packaging capacity and US$20 million was used for
wafer bumping and flip chip packaging equipment. * As of Sep 30,
2009, there were 8,880 wirebonders in operation. 391 wirebonders
were added and 12 wirebonders were disposed of during the quarter.
* Net revenues from flip chip packages and wafer bumping services
accounted for 16% of total packaging net revenues, up by 2
percentage point from the previous quarter. Note 2: IC packaging
services include module assembly services. Testing Services * Net
revenues generated from our testing operations were NT$4,588
million, down NT$607 million, or 12% year-over-year, and up NT$711
million, or 18%, sequentially. * Net revenue from final testing,
wafer sorting, and engineering testing accounted for 82%, 15%, and
3%, respectively, of total net revenues, all of which remained
unchanged from the previous quarter. * Depreciation, amortization
and rental expense associated with our testing operations amounted
to NT$1,436 million, down from NT$1,593 million in 3Q08 and down
from NT$1,480 million in 2Q09. * In 3Q09, gross margin for our
testing operations was 35%, down by 1 percentage point
year-over-year and up by 7 percentage points sequentially. *
Capital spending on our testing operations amounted to US$17million
during the quarter. * As of Sep 30, 2009, there were 1,569 testers
in operation. 70 testers were added and 11 testers were disposed of
during the quarter. Substrate Operations * PBGA substrate
manufactured by ASE amounted to NT$2,249 million during the
quarter, down NT$32 million, or 1% year-over-year, and up NT$410
million, or 22% from the previous quarter. Of the total output of
NT$2,249million, NT$612 million was from sales to external
customers. * Gross margin for substrate operations was 22% during
the quarter, up by 2 percentage points year-over-year and up by 5
percentage points sequentially. * In 3Q09, our internal substrate
manufacturing operations supplied 52% (by value) of our total
substrate requirements. Customers * Our five largest customers
together accounted for approximately 27% of our total net revenues
in 3Q09, compared to 27% in 3Q08 and 32% in 2Q09. No single
customer accounted for more than 10% of our total net revenues. *
Our top 10 customers contributed 42% of our total net revenues
during the quarter, compared to 46% in 3Q08 and 45% in 2Q09. * Our
customers that are integrated device manufacturers, or IDMs,
accounted for 35% of our total net revenues during the quarter,
compared to 41% in 3Q08 and 30% in 2Q09. 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., MediaTek Inc., NEC
Electronics Corporation, NVIDIA Corporation, NXP Semiconductors,
Qualcomm Incorporated, RF Micro Devices Inc. and STMicroelectronics
N.V. 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
presentation 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 presentation.
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 presentation.
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 2008 Annual Report on Form 20-F
filed on June 24, 2009. Supplemental Financial Information
Consolidated Operations Amounts in NT$ Millions 3Q/09 2Q/09 3Q/08
Net Revenues 25,205 20,881 25,815 Revenues by End Application
Communication 44% 49% 44% Computer 17% 16% 23% Automotive and
Consumer 37% 34% 33% Others 2% 1% 0% Revenues by Region North
America 52% 55% 55% Europe 13% 11% 15% Taiwan 20% 22% 18% Japan 10%
8% 9% Other Asia 5% 4% 3% IC Packaging Services Amounts in NT$
Millions 3Q/09 2Q/09 3Q/08 Net Revenues 20,005 16,591 20,127
Revenues by Packaging Type Advanced substrate & leadframe based
88% 91% 89% Traditional leadframe based 6% 5% 4% Module assembly 3%
2% 4% Others 3% 2% 3% Capacity CapEx (US$ Millions) * 91 31 50
Number of Wirebonders 8,880 8,501 8,436 Testing Services Amounts in
NT$ Millions 3Q/09 2Q/09 3Q/08 Net Revenues 4,588 3,877 5,195
Revenues by Testing Type Final test 82% 82% 80% Wafer sort 15% 15%
18% Engineering test 3% 3% 2% Capacity CapEx (US$ Millions) * 17 13
45 Number of Testers 1,569 1,510 1,638 * 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 For the nine ended months ended Sep. 30 Jun. 30 Sep. 30 Sep.
30 Sep. 30 2009 2009 2008 2009 2008 Net revenues: IC Packaging
20,005 16,591 20,127 46,804 59,387 Testing 4,588 3,877 5,195 11,233
15,191 Others 612 413 493 1,446 1,541 Total net revenues 25,205
20,881 25,815 59,483 76,119 Cost of revenues (18,848) (16,357)
(19,384) (47,944) (57,287) Gross profit 6,357 4,524 6,431 11,539
18,833 Operating expenses: Research and development (956) (825)
(907) (2,531) (2,844) Selling, general and administrative (1,434)
(1,203) (1,809) (3,956) (5,496) Total operating expenses (2,390)
(2,028) (2,716) (6,487) (8,340) Operating income (loss) 3,967 2,496
3,715 5,052 10,493 Net non-operating (expenses) income: Interest
expense - net (303) (340) (421) (1,078) (964) Foreign exchange gain
(loss) (30) 106 (146) (30) 449 Gain (loss) on equity-method
investments 112 58 69 194 202 Others 111 (114) (63) 278 (181) Total
non-operating (expenses) income (110) (290) (561) (636) (494)
Income (loss) before tax 3,857 2,206 3,154 4,416 9,999 Income tax
benefit (expense) (558) (559) (777) (1,066) (1,968) (Loss) income
from continuing operations and before minority interest 3,299 1,647
2,377 3,350 8,031 Minority interest (112) 27 (165) (55) (1,071) Net
income (loss) 3,187 1,674 2,212 3,295 6,960 Per share data:
Earnings (losses) per share - Basic NT$0.62 NT$0.33 NT$0.41 NT$0.64
NT$1.29 - Diluted NT$0.61 NT$0.32 NT$0.41 NT$0.63 NT$1.26 Earnings
(losses) per equivalent ADS - Basic US$0.094 US$0.049 US$0.068
US$0.096 US$0.207 - Diluted US$0.093 US$0.049 US$0.067 US$0.095
US$0.203 Number of weighted average shares used in diluted EPS
calculation (in thousands) 5,186,949 5,164,078 5,403,832 5,202,233
5,489,339 Exchange rate (NT$ per US$1) 32.81 33.16 30.95 33.26
31.02 Advanced Semiconductor Engineering, Inc. Summary of
Consolidated Balance Sheet Data (In NT$ millions) (Unaudited) As of
Sep. 30, As of Jun. 30, 2009 2009 Current assets: Cash and cash
equivalents 26,059 20,285 Financial assets - current 6,461 8,391
Notes and accounts receivable 16,847 14,583 Inventories 5,723 5,215
Others 4,397 3,511 Total current assets 59,487 51,985 Financial
assets - non current 4,797 4,587 Properties - net 77,566 78,546
Intangible assets 12,900 12,091 Others 3,932 3,956 Total assets
158,682 151,165 Current liabilities: Short-term debts - revolving
credit 17,856 7,888 Current portion of long-term debts 3,972 1,932
Notes and accounts payable 8,209 6,842 Others 9,047 10,771 Total
current liabilities 39,084 27,433 Long-term debts 44,553 52,356
Other liabilities 3,807 3,618 Total liabilities 87,444 83,407
Minority interest 2,664 2,182 Shareholders' equity 68,574 65,576
Total liabilities & shareholders' equity 158,682 151,165
Current Ratio 1.52 1.90 Net Debt to Equity 0.48 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 Allen
Kan, Manager Email: Clare Lin, Director (US Contact) Email: Tel:
+1-408-986-6524 DATASOURCE: Advanced Semiconductor Engineering,
Inc. CONTACT: Joseph Tung, CFO and 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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