TAIPEI, Taiwan, April 29, 2016 /PRNewswire/ -- Advanced
Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE: ASX) ("We",
"ASE", or the "Company"), the world's largest independent provider
of packaging and testing services, today reported unaudited net
revenues[1] of NT$62,371 million for
the first quarter of 2016 (1Q16), down by 4% year-over-year and
down by 17% sequentially. Net income attributable to
shareholders of the parent for the quarter totaled NT$4,163 million, down from a net income
attributable to shareholders of the parent of NT$4,469 million in 1Q15 and down from a net
income attributable to shareholders of the parent of NT$4,990 million in 4Q15. Basic earnings
per share for the quarter were NT$0.54 (or US$0.082 per ADS), compared to basic earnings per
share of NT$0.58 for 1Q15 and
NT$0.65 for 4Q15. Diluted earnings
per share for the quarter were NT$0.43 (or US$0.065 per ADS), compared to diluted earnings
per share of NT$0.56 for 1Q15 and
NT$0.63 for 4Q15.
[1] All financial
information presented in this press release is unaudited,
consolidated and prepared in accordance with Taiwan-IFRS
(International Financial Reporting Standards as endorsed for use in
the R.O.C.). 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 of operations for any future period.
|
RESULTS OF OPERATIONS
1Q16 Results Highlights – Consolidated
- Net revenue contribution from packaging operations, testing
operations, EMS operations, substrates sold to third parties and
others, each represented approximately 45%, 10%, 40%, 1% and 4%,
respectively, of total net revenues for the quarter.
- Cost of revenue was NT$50,922
million for the quarter, down from NT$62,279 million in 4Q15.
- Raw material cost totaled NT$27,357
million during the quarter, representing 44% of total net
revenues.
- Labor cost totaled NT$8,284
million during the quarter, representing 13% of total net
revenues.
- Depreciation, amortization and rental expenses totaled
NT$7,010 million during the
quarter.
- Gross margin increased 0.8 percentage points to 18.4% in 1Q16
from 17.6% in 4Q15.
- Operating margin was 8.3% in 1Q16 compared to 9.0% in
4Q15.
- In terms of non-operating items:
- Net interest expense was NT$527
million.
- Net foreign exchange gain of NT$881
million was primarily attributable to the depreciation of
the U.S. dollar against the NT dollar.
- Loss on valuation of financial assets and liabilities was
NT$360 million.
- Net gain on equity-method investments was NT$385 million, including NT$401 million of the share of profit from our
investment in Siliconware Precision Industries Co., Ltd.
- Other net non-operating income of NT$71
million was primarily related to miscellaneous income. Total
non-operating income for the quarter were NT$450 million.
- Income before tax was NT$5,656
million for 1Q16, compared to NT$6,572 million in 4Q15. We recorded income tax
expenses of NT$1,318 million during
the quarter, compared to NT$1,260
million in 4Q15.
- In 1Q16, net income attributable to shareholders of the parent
was NT$4,163 million, compared to net
income attributable to shareholders of the parent of NT$4,469 million for 1Q15 and net income
attributable to shareholders of the parent of NT$4,990 million for 4Q15.
- Our total number of shares outstanding at the end of the
quarter was 7,918,272,896, including treasury stock owned by our
subsidiaries. Our 1Q16 basic earnings per share of NT$0.54 (or US$0.082 per ADS) were based on 7,649,385,595
weighted average number of shares outstanding in 1Q16. Our 1Q16
diluted earnings per share of NT$0.43
(or US$0.065 per ADS) were based on
8,293,276,666 weighted average number of shares outstanding in
1Q16.
1Q16 Results Highlights – IC ATM[2]
- Cost of revenues was NT$27,711
million for the quarter, down by 3% sequentially.
- Raw material cost totaled NT$8,086
million during the quarter, representing 23% of total net
revenues.
- Labor cost totaled NT$7,194
million during the quarter, representing 20% of total net
revenues.
- Depreciation, amortization and rental expenses totaled
NT$6,379 million during the
quarter.
- Gross margin decreased 4.0 percentage points to 22.0% in 1Q16
from 26.0% in 4Q15.
- Operating margin was 9.1% in 1Q16 compared to 13.8% in
4Q15.
[2] ATM stands for
Semiconductor Assembly, Testing and Material.
|
1Q16 Results Highlights – EMS
- Cost of revenues for the quarter was NT$22,781 million, down by 38% sequentially.
- Raw material cost totaled NT$19,310
million during the quarter, representing 78% of total net
revenues.
- Labor cost totaled NT$1,089
million during the quarter, representing 4% of total net
revenues.
- Depreciation, amortization and rental expenses totaled
NT$667 million during the
quarter.
- Gross margin increased to 8.1% in 1Q16 from 7.3% in 4Q15.
- Operating margin decreased to 1.5% in 1Q16 from 2.7% in
4Q15.
LIQUIDITY AND CAPITAL RESOURCES
- Capital expenditures in 1Q16 totaled US$115 million, of which US$62 million were used for packaging,
US$47 million for testing,
US$2 million for EMS and US$4 million for interconnect materials.
- As of March 31, 2016, total
unused credit lines amounted to NT$173,204
million.
- Current ratio was 1.25 and net debt to equity ratio was 0.41 as
of March 31, 2016.
- Total number of employees was 63,357 as of March 31, 2016, compared to 65,789 as of
December 31, 2015.
BUSINESS REVIEW
Packaging Operations[3]
- Gross margin for our packaging operations during the quarter
was 19.1%, down by 4.4 percentage points from 4Q15.
- Capital expenditures for our packaging operations amounted to
US$62 million during the quarter, of
which US$30 million were used for
purchases of wafer bumping and flip chip packaging equipment and
US$28 million for common equipment
purchases, including SiP equipment purchases, and US$4 million for wirebond packaging specific
purposes.
[3] IC packaging
services include module assembly services.
|
Testing Operations
- Depreciation, amortization and rental expense associated with
our testing operations amounted to NT$1,681
million during the quarter, up from NT$1,676 million in 4Q15.
- In 1Q16, gross margin for our testing operations was 32.9%,
down by 4.7 percentage point from the previous quarter.
- Capital expenditures for our testing operations amounted to
US$47 million during the quarter
EMS Operations
- In 1Q16, gross margin for our EMS operations was 8.1%, up by
0.8 percentage points from the previous quarter.
- Capital expenditures for our EMS operations amounted to
US$2 million during the quarter.
Substrate Operations
- PBGA substrate manufactured by ASE amounted to NT$2,270 million during the quarter, up by
NT$289 million, or by 15% from 4Q15.
Of the total output of NT$2,270
million, NT$892 million was
from sales to external customers.
- Gross margin for substrate operations was 16.9% during the
quarter, up by 3.9 percentage points from 4Q15.
- In 1Q16, our internal substrate manufacturing operations
supplied 31% (by value) of our total substrate requirements.
Customers
IC ATM CONSOLIDATED BASIS
- Our five largest customers together accounted for approximately
35% of our total net revenues in 1Q16, compared to 37% in 4Q15. One
customer accounted for more than 10% of our total net revenues in
1Q16.
- Our top 10 customers contributed 51% of our total net revenues
during the quarter, compared to 54% in 4Q15.
- Our customers that are integrated device manufacturers, or
IDMs, accounted for 35% of our total net revenues during the
quarter, compared to 33% in 4Q15.
EMS BASIS
- Our five largest customers together accounted for approximately
77% of our total net revenues in 1Q16, compared to 85% in 4Q15. One
customer accounted for more than 10% of our total net revenues in
1Q16.
- Our top 10 customers contributed 89% of our total net revenues
during the quarter, compared to 92% in 4Q15.
OUTLOOK
Based on our current business outlook and exchange rate
assumptions, management projects overall performance for the second
quarter of 2016 to be as follows:
- IC ATM business will approach 4Q15 levels, driven by a moderate
recovery while SiP business remains seasonally soft;
- IC ATM gross margin should see meaningful improvement from
1Q16, but could be a bit lower than 4Q15;
- EMS business should decline moderately on a quarter over
quarter basis;
- EMS gross margin should be similar with 1Q16 levels.
About ASE, Inc.
ASE, Inc. is the world's largest independent
provider of packaging services and testing services, including
front-end engineering testing, wafer probing and final testing
services. With
advanced technological capabilities and a global
presence spanning Taiwan,
China, Korea,
Japan, Singapore, Malaysia and the
United States, ASE, Inc. has established a
reputation for reliable, high quality products and
services. For more information, please
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 or electronic industry;
changes in our regulatory environment, including our ability to
comply with new or stricter environmental regulations and to
resolve environmental liabilities; demand for the outsourced
semiconductor packaging, testing and electronic manufacturing
services we offer and for such outsourced services generally; the
highly competitive semiconductor or manufacturing industry we are
involved in; our ability to introduce new technologies in order to
remain competitive; international business activities; our business
strategy; our future expansion plans and capital expenditures; the
strained relationship between the Republic of China and the People's Republic of China; general
economic and political conditions; the recent global economic
crisis; possible disruptions in commercial activities caused by
natural or human-induced disasters; 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 2014 Annual Report on Form 20-F filed on March 18, 2015.
Supplemental Financial Information
IC ATM Consolidated Operations
Amounts in NT$
Millions
|
1Q/16
|
4Q/15
|
1Q/15
|
Net
Revenues
|
35,543
|
38,406
|
38,605
|
Revenues by
Application
|
|
|
|
Communication
|
51%
|
55%
|
55%
|
Computer
|
12%
|
12%
|
11%
|
Automotive, Consumer
& Others
|
37%
|
33%
|
34%
|
Packaging Operations
Amounts in NT$
Millions
|
1Q/16
|
4Q/15
|
1Q/15
|
Net
Revenues
|
28,597
|
31,121
|
31,546
|
Revenues by
Packaging Type
|
|
|
|
Advanced
Packaging
|
29%
|
33%
|
33%
|
IC
Wirebonding
|
62%
|
58%
|
58%
|
Discrete and
Others
|
9%
|
9%
|
9%
|
Capacity
|
|
|
|
CapEx (US$
Millions)*
|
62
|
64
|
67
|
Number of
Wirebonders
|
15,629
|
15,568
|
15,772
|
Testing Operations
Amounts in NT$
Millions
|
1Q/16
|
4Q/15
|
1Q/15
|
Net
Revenues
|
5,995
|
6,356
|
6,180
|
Revenues by Testing
Type
|
|
|
|
Final test
|
78%
|
77%
|
74%
|
Wafer sort
|
18%
|
19%
|
21%
|
Engineering
test
|
4%
|
4%
|
5%
|
Capacity
|
|
|
|
CapEx (US$
Millions)*
|
47
|
18
|
52
|
Number of
Testers
|
3,453
|
3,435
|
3,339
|
EMS Operations
Amounts in NT$
Millions
|
1Q/16
|
4Q/15
|
1Q/15
|
Net
Revenues
|
24,788
|
39,347
|
28,344
|
Revenues by End
Application
|
|
|
|
Communication
|
51%
|
64%
|
47%
|
Computer
|
19%
|
15%
|
17%
|
Consumer
|
15%
|
11%
|
18%
|
Industrial
|
7%
|
5%
|
11%
|
Automotive
|
7%
|
4%
|
6%
|
Others
|
1%
|
1%
|
1%
|
Capacity
|
|
|
|
CapEx (US$
Millions)*
|
2
|
5
|
16
|
* Capital
expenditure excludes building construction costs.
|
Advanced
Semiconductor Engineering, Inc.
Summary of
Consolidated Statement of Comprehensive Income Data
(In NT$ millions,
except per share data)
(Unaudited)
|
|
For the three months
ended
|
|
|
Mar. 31
2016
|
|
Dec. 31
2015
|
|
Mar. 31
2015
|
|
Net
revenues:
|
|
|
|
|
|
|
Packaging
|
28,036
|
|
29,093
|
|
29,321
|
|
Testing
|
5,995
|
|
6,356
|
|
6,180
|
|
Direct
Material
|
892
|
|
798
|
|
861
|
|
EMS
|
24,749
|
|
39,301
|
|
28,300
|
|
Others
|
2,699
|
|
-
|
|
-
|
|
Total net
revenues
|
62,371
|
|
75,548
|
|
64,662
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(50,922)
|
|
(62,279)
|
|
(52,349)
|
|
Gross
profit
|
11,449
|
|
13,269
|
|
12,313
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
(2,608)
|
|
(2,814)
|
|
(2,547)
|
|
Selling, general and
administrative
|
(3,635)
|
|
(3,654)
|
|
(3,474)
|
|
Total operating
expenses
|
(6,243)
|
|
(6,468)
|
|
(6,021)
|
|
Operating
income
|
5,206
|
|
6,801
|
|
6,292
|
|
|
|
|
|
|
|
|
Net non-operating
(expenses) income:
|
|
|
|
|
|
|
Interest expense -
net
|
(527)
|
|
(538)
|
|
(526)
|
|
Foreign exchange gain
(loss)
|
881
|
|
428
|
|
540
|
|
Gain (loss) on
valuation of financial assets
and
liabilities
|
(360)
|
|
(722)
|
|
(969)
|
|
Gain (loss) on
equity-method investments
|
385
|
|
424
|
|
4
|
|
Others
|
71
|
|
179
|
|
165
|
|
Total non-operating
income (expenses)
|
450
|
|
(229)
|
|
(786)
|
|
Income before
tax
|
5,656
|
|
6,572
|
|
5,506
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(1,318)
|
|
(1,260)
|
|
(856)
|
|
Income from
continuing operations and
before noncontrolling
interest
|
4,338
|
|
5,312
|
|
4,650
|
|
Noncontrolling
interest
|
(175)
|
|
(322)
|
|
(181)
|
|
|
|
|
|
|
|
|
Net income
attributable to
shareholders of the
parent
|
4,163
|
|
4,990
|
|
4,469
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
Earnings (losses) per
share
|
|
|
|
|
|
|
– Basic
|
NT$0.54
|
|
NT$0.65
|
|
NT$0.58
|
|
– Diluted
|
NT$0.43
|
|
NT$0.63
|
|
NT$0.56
|
|
|
|
|
|
|
|
|
Earnings (losses) per
equivalent ADS
|
|
|
|
|
|
|
– Basic
|
US$0.082
|
|
US$0.100
|
|
US$0.092
|
|
– Diluted
|
US$0.065
|
|
US$0.097
|
|
US$0.089
|
|
|
|
|
|
|
|
|
Number of weighted
average shares used in
diluted EPS calculation
(in thousands)
|
8,293,277
|
|
7,840,049
|
|
7,868,151
|
|
|
|
|
|
|
|
|
Exchange rate (NT$
per US$1)
|
33.07
|
|
32.55
|
|
31.52
|
|
|
|
|
|
|
|
|
Advanced
Semiconductor Engineering, Inc.
Summary of
Consolidated Statement of Comprehensive Income Data – IC
ATM
(In NT$ millions,
except per share data)
(Unaudited)
|
|
For the three months
ended
|
|
|
Mar. 31
2016
|
|
Dec. 31
2015
|
|
Mar. 31
2015
|
|
Net
revenues:
|
|
|
|
|
|
|
Packaging
|
28,597
|
|
31,121
|
|
31,546
|
|
Testing
|
5,995
|
|
6,356
|
|
6,180
|
|
Direct
Material
|
931
|
|
910
|
|
861
|
|
Others
|
20
|
|
19
|
|
18
|
|
Total net
revenues
|
35,543
|
|
38,406
|
|
38,605
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(27,711)
|
|
(28,429)
|
|
(28,610)
|
|
Gross
profit
|
7,832
|
|
9,977
|
|
9,995
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
(1,922)
|
|
(2,081)
|
|
(1,909)
|
|
Selling, general and
administrative
|
(2,688)
|
|
(2,583)
|
|
(2,540)
|
|
Total operating
expenses
|
(4,610)
|
|
(4,664)
|
|
(4,449)
|
|
Operating
income
|
3,222
|
|
5,313
|
|
5,546
|
|
|
|
|
|
|
|
|
Net non-operating
(expenses) income:
|
|
|
|
|
|
|
Interest expense -
net
|
(604)
|
|
(584)
|
|
(530)
|
|
Foreign exchange gain
(loss)
|
834
|
|
364
|
|
532
|
|
Gain (loss) on
valuation of financial assets and liabilities
|
(261)
|
|
(622)
|
|
(1,129)
|
|
Gain (loss) on
equity-method investments
|
1,431
|
|
1,333
|
|
616
|
|
Others
|
124
|
|
336
|
|
195
|
|
Total non-operating
income (expenses)
|
1,524
|
|
827
|
|
(316)
|
|
Income before
tax
|
4,746
|
|
6,140
|
|
5,230
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(529)
|
|
(1,099)
|
|
(709)
|
|
Income from
continuing operations and
before noncontrolling
interest
|
4,217
|
|
5,041
|
|
4,521
|
|
Noncontrolling
interest
|
(54)
|
|
(51)
|
|
(52)
|
|
|
|
|
|
|
|
|
Net income
attributable to
shareholders of the
parent
|
4,163
|
|
4,990
|
|
4,469
|
|
|
|
|
|
|
|
|
Advanced
Semiconductor Engineering, Inc.
Summary of
Consolidated Statement of Comprehensive Income Data –
EMS
(In NT$ millions,
except per share data)
(Unaudited)
|
|
For the three months
ended
|
|
|
Mar. 31
2016
|
|
Dec. 31
2015
|
|
Mar. 31
2015
|
|
Net
revenues:
|
|
|
|
|
|
|
Total net
revenues
|
24,788
|
|
39,347
|
|
28,344
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(22,781)
|
|
(36,473)
|
|
(26,079)
|
|
Gross
profit
|
2,007
|
|
2,874
|
|
2,265
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
(710)
|
|
(760)
|
|
(661)
|
|
Selling, general and
administrative
|
(920)
|
|
(1,038)
|
|
(914)
|
|
Total operating
expenses
|
(1,630)
|
|
(1,798)
|
|
(1,575)
|
|
Operating
income
|
377
|
|
1,076
|
|
690
|
|
|
|
|
|
|
|
|
Net non-operating
(expenses) income:
|
|
|
|
|
|
|
Total non-operating
income (expenses)
|
78
|
|
(64)
|
|
216
|
|
Income before
tax
|
455
|
|
1,012
|
|
906
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(81)
|
|
(170)
|
|
(156)
|
|
Income from
continuing operations and
before noncontrolling
interest
|
374
|
|
842
|
|
750
|
|
Noncontrolling
interest
|
(108)
|
|
(269)
|
|
(130)
|
|
|
|
|
|
|
|
|
Net income
attributable to
shareholders of the
parent
|
266
|
|
573
|
|
620
|
|
Advanced
Semiconductor Engineering, Inc.
Summary of
Consolidated Balance Sheet Data
(In NT$
millions)
(Unaudited)
|
|
|
As of Mar. 31, 2016
|
|
As of Dec. 31, 2015
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
45,070
|
|
|
55,251
|
|
Financial assets –
current
|
|
|
3,971
|
|
|
3,864
|
|
Notes and accounts
receivable
|
|
|
40,528
|
|
|
44,931
|
|
Inventories
|
|
|
44,224
|
|
|
48,972
|
|
Others
|
|
|
3,210
|
|
|
3,715
|
|
Total current
assets
|
|
|
137,003
|
|
|
156,733
|
|
|
|
|
|
|
|
|
|
Financial assets –
non current & Investments – equity method
|
|
|
51,985
|
|
|
38,347
|
|
Property plant and
equipment
|
|
|
147,234
|
|
|
149,997
|
|
Intangible
assets
|
|
|
11,861
|
|
|
11,889
|
|
Prepaid lease
payments
|
|
|
2,458
|
|
|
2,556
|
|
Others
|
|
|
5,949
|
|
|
5,766
|
|
Total
assets
|
|
|
356,490
|
|
|
365,288
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term borrowings
and short-term bills payable
|
|
|
34,154
|
|
|
36,983
|
|
Current portion of
bonds payable
|
|
|
14,482
|
|
|
14,686
|
|
Current portion of
long-term borrowings & capital lease obligations
|
|
|
1,356
|
|
|
2,157
|
|
Notes and accounts
payable
|
|
|
28,907
|
|
|
34,139
|
|
Others
|
|
|
30,530
|
|
|
32,537
|
|
Total current
liabilities
|
|
|
109,429
|
|
|
120,502
|
|
|
|
|
|
|
|
|
|
Bonds
payable
|
|
|
32,582
|
|
|
23,740
|
|
Long-term borrowings
& capital lease obligations
|
|
|
36,089
|
|
|
42,795
|
|
Other
liabilities
|
|
|
9,653
|
|
|
9,831
|
|
Total
liabilities
|
|
|
187,753
|
|
|
196,868
|
|
Shareholders of the
parent
|
|
|
158,016
|
|
|
156,916
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
|
10,721
|
|
|
11,504
|
|
Total liabilities
& shareholders' equity
|
|
|
356,490
|
|
|
365,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Ratio
|
|
|
1.25
|
|
|
1.30
|
|
Net Debt to
Equity
|
|
|
0.41
|
|
|
0.36
|
|
|
|
|
|
|
|
|
|
IR Contact:
Michelle Jao,
Manager mjao@iselabs.com Tel: +1.510.687.2481 http://www.aseglobal.com
|
Grace Teng,
Manager grace_teng@aseglobal.com Tel: +886.2.6636.5678
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/advanced-semiconductor-engineering-inc-reports-unaudited-consolidated-financial-results-for-the-first-quarter-of-2016-300259976.html
SOURCE Advanced Semiconductor Engineering, Inc.