TAIPEI, Taiwan, July 31 /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$20,881 million for the second quarter of
2009 (2Q09), down 18% year-over-year and up 56% sequentially. Net
income for the quarter totaled NT$1,674 million, down from net
income of NT$2,412 million in 2Q08 and up from net loss of NT$1,567
million in 1Q09. Diluted earnings per share for the quarter was
NT$0.32 (or US$0.049 per ADS), compared to diluted earnings per
share of NT$0.42 for 2Q08 and losses per share of NT$0.30 for 1Q09.
For the first half of 2009, diluted earnings per share was NT$0.02
(or US$0.003 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 2Q09 Results Highlights -- Net revenue
contribution from IC packaging operations (including module
assembly), testing operations, and substrates sold to third parties
was NT$16,591 million, NT$3,877 million and NT$413 million,
respectively, and each represented approximately 79%, 19% and 2%,
respectively, of total net revenues for the quarter. -- Cost of
revenues was NT$16,357 million, down 14% year-over-year and up 28%
sequentially. -- Raw material cost totaled NT$6,168 million during
the quarter, representing 30% of total net revenue, compared with
NT$3,760 million and 28% of net revenue in the previous quarter. --
Labor cost totaled NT$3,028 million during the quarter,
representing 15% of total net revenue, compared with NT$2,524
million and 19% of net revenue in the previous quarter. --
Depreciation, amortization and rental expenses totaled NT$4,170
million during the quarter, up 5% year-over-year and down 2%
sequentially. -- Total operating expenses during 2Q09 were NT$2,028
million, including NT$825 million in R&D and NT$1,203 million
in SG&A, compared with operating expenses of NT$2,069 million
in 1Q09. Total operating expenses as a percentage of net revenue
for the current quarter were 10%, down from 11% in 2Q08 and 15% in
1Q09. -- Operating income for the quarter totaled NT$2,496 million,
up from operating loss of NT$1,411 million in the previous quarter.
Operating margin increased to 12% in 2Q09 from negative 11% in
1Q09. -- In terms of non-operating items: -- Net interest expense
was NT$340 million, down from NT$435 million a quarter ago
primarily due to lower average interest rates and bank loan
balances during the quarter. -- Net foreign exchange gain of NT$106
million was primarily attributable to the depreciation of the U.S.
dollar against the N.T. dollar. -- Gain on equity-method
investments of NT$58 million was primarily attributable to our
investment in USI. -- Other non-operating loss of NT$114 million
was primarily related to the valuation adjustment of financial
assets and other miscellaneous expenses. Total non-operating
expenses for the quarter were NT$290 million, compared to NT$22
million for 2Q08 and NT$235 million for 1Q09. -- Income before tax
was NT$2,206 million for 2Q09, compared to a loss of NT$1,646
million in the previous quarter. We recorded income tax expense of
NT$559 million during the quarter, compared to income tax benefit
of NT$50 million in 1Q09. The sequential increase of the income tax
expense was primarily due to the recognition of undistributed
earnings tax and the adjustment of deferred tax asset. -- In 2Q09,
net income was NT$1,674 million, compared to net income of NT$2,412
million for 2Q08 and net loss of NT$1,567 million for 1Q09. --
After cancelling 217,974,000 shares in treasury stock that we
bought back from the open market, our total number of shares
outstanding at the end of the quarter was 5,473,701,414 shares
(this still includes treasury stock owned by our subsidiaries). Our
2Q09 diluted earnings per share of NT$0.32 (or US$0.049 per ADS)
was based on 5,164,077,671 weighted average number of shares
outstanding in 2Q09. LIQUIDITY AND CAPITAL RESOURCES -- As of June
30, 2009, our cash and other financial assets totaled NT$28,676
million, compared to NT$27,750 million as of March 31, 2009. --
Capital expenditures in 2Q09 totaled US$45 million, of which US$31
million was used for IC packaging, US$13 million was used for
testing and US$1 million was used for interconnect materials. -- As
of June 30, 2009, we had total bank debt of NT$62,176 million,
compared to NT$63,675 million as of March 31, 2009. Total bank debt
consisted of NT$7,888 million of revolving working capital loans,
NT$1,932 million of the current portion of long-term debt, and
NT$52,356 million of long-term debt. Total unused credit lines
amounted to NT$46,106 million. We have secured a NT$12 billion
5-year term loan facility with syndication banks. This facility
will be primarily used for refinancing of our existing bank debt.
-- Current ratio as of June 30, 2009 was 1.90, compared to 2.10 as
of March 31, 2009. Net debt to equity ratio was 0.49 as of June 30,
2009. -- Total number of employees was 26,406 as of June 30, 2009,
compared to 30,363 as of June 30, 2008 and 25,032 as of March 31,
2009. Business Review IC Packaging Services (Note 2) -- Net
revenues generated from our IC packaging operations were NT$16,591
million during the quarter, down NT$3,442 million, or 17%
year-over- year, and up NT$6,383 million, or 63% sequentially. --
Net revenues from advanced substrate and leadframe-based packaging
accounted for 91% of total IC packaging net revenues during the
quarter, up by 3 percentage points from the previous quarter. --
Gross margin for our IC packaging operations was 19%, down by 2
percentage points year-over-year and up by 14 percentage points
sequentially. -- Capital expenditures for our IC packaging
operations amounted to US$31 million during the quarter, of which
US$25 million was used for wirebonding packaging capacity and US$6
million was used for wafer bumping and flip chip packaging
equipment. -- As of June 30, 2009, there were 8,501 wirebonders in
operation. 181 wirebonders were added and 99 wirebonders were
disposed during the quarter. -- Net revenues from flip chip
packages and wafer bumping services accounted for 14% of total
packaging net revenues, up by 1 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$3,877 million, down NT$1,225 million, or
24% year-over-year, and up NT$1,109 million, or 40% sequentially.
-- Final testing contributed 82% to total testing net revenues,
down by 4 percentage points from the previous quarter. Wafer sort
contributed 15% to total testing net revenues, up by 5 percentage
points from the previous quarter. Engineering testing contributed
3% to total testing net revenues, down by one percentage point from
the previous quarter. -- Depreciation, amortization and rental
expense associated with our testing operations amounted to NT$1,480
million, up from NT$1,475 million in 2Q08 and down from NT$1,512
million in 1Q09. -- In 2Q09, gross margin for our testing
operations was 28%, down by 10 percentage points year-over-year and
up by 23 percentage points sequentially. -- Capital spending on our
testing operations amounted to US$13 million during the quarter. --
As of June 30, 2009, there were 1,510 testers in operation. 33
testers were added and 95 testers were disposed of during the
quarter. Substrate Operations -- PBGA substrate manufactured by ASE
amounted to NT$1,839 million for the quarter, down NT$322 million,
or 15% year-over-year, and up NT$763 million, or 71% from the
previous quarter. Of the total output of NT$1,839 million, NT$413
million was from sales to external customers. -- Gross margin for
substrate operations was 17% during the quarter, up by 2 percentage
points year-over-year and up by 24 percentage points sequentially.
-- In 2Q09, the Company's internal substrate manufacturing
operations supplied 56% (by value) of our total substrate
requirements. Customers -- Our five largest customers together
accounted for approximately 32% of our total net revenues in 2Q09,
compared to 29% in 2Q08 and 33% in 1Q09. Only one single customer
accounted for more than 10% of our total net revenues. -- Our top
10 customers contributed 45% of our total net revenues during the
quarter, compared to 48% in 2Q08 and 47% in 1Q09. -- Our customers
that are integrated device manufacturers, or IDMs, accounted for
30% of our total net revenues during the quarter, compared to 41%
in 2Q08 and 34% in 1Q09. 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. -- Tables to Follow -- Supplemental Financial Information
Consolidated Operations Amounts in NT$ Millions 2Q/09 1Q/09 2Q/08
Net Revenues 20,881 13,397 25,610 Revenues by End Application
Communication 49% 48% 45% Computer 16% 16% 24% Automotive and
Consumer 34% 35% 31% Others 1% 1% 0% Revenues by Region North
America 55% 54% 53% Europe 11% 12% 13% Taiwan 22% 20% 22% Japan 8%
11% 8% Other Asia 4% 3% 4% IC Packaging Services Amounts in NT$
Millions 2Q/09 1Q/09 2Q/08 Net Revenues 16,591 10,208 20,033
Revenues by Packaging Type Advanced substrate & leadframe based
91% 88% 89% Traditional leadframe based 5% 6% 5% Module assembly 2%
2% 4% Others 2% 4% 2% Capacity CapEx (US$ Millions) * 31 14 71
Number of Wirebonders 8,501 8,419 8,426 Testing Services Amounts in
NT$ Millions 2Q/09 1Q/09 2Q/08 Net Revenues 3,877 2,768 5,102
Revenues by Testing Type Final test 82% 86% 78% Wafer sort 15% 10%
19% Engineering test 3% 4% 3% Capacity CapEx (US$ Millions) * 13 10
56 Number of Testers 1,510 1,572 1,622 * 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 period ended ended Jun. 30 Mar. 31 Jun. 30 Jun. 30
Jun. 30 2009 2009 2008 2009 2008 Net revenues: IC Packaging 16,591
10,208 20,033 26,799 39,260 Testing 3,877 2,768 5,102 6,645 9,997
Others 413 421 475 834 1,048 Total net revenues 20,881 13,397
25,610 34,278 50,305 Cost of revenues (16,357) (12,739) (19,098)
(29,095) (37,605) Gross profit 4,524 658 6,512 5,183 12,700
Operating expenses: Research and development (825) (750) (980)
(1,575) (2,077) Selling, general and administrative (1,203) (1,319)
(1,948) (2,522) (3,687) Total operating expenses (2,028) (2,069)
(2,928) (4,097) (5,764) Operating income (loss) 2,496 (1,411) 3,584
1,086 6,936 Net non-operating (expenses) income: Interest expense -
net (340) (435) (268) (775) (544) Foreign exchange gain (loss) 106
(107) 294 (1) 595 Gain (loss) on equity-method investments 58 24 28
82 133 Others (114) 283 (76) 168 (275) Total non-operating
(expenses) income (290) (235) (22) (526) (91) Income (loss) before
tax 2,206 (1,646) 3,562 560 6,845 Income tax benefit (expense)
(559) 50 (779) (509) (1,191) (Loss) income from continuing
operations and before minority interest 1,647 (1,596) 2,783 51
5,654 Minority interest 27 29 (371) 57 (906) Net income (loss)
1,674 (1,567) 2,412 108 4,748 Per share data: Earnings (losses) per
share - Basic NT$0.33 NT$(0.30) NT$0.44 NT$0.02 NT$0.87 - Diluted
NT$0.32 NT$(0.30) NT$0.42 NT$0.02 NT$0.83 Earnings (losses) per
equivalent ADS - Basic US$0.049 US$(0.045) US$0.073 US$0.003
US$0.140 - Diluted US$0.049 US$(0.045) US$0.070 US$0.003 US$0.133
Number of weighted average shares used in diluted EPS calculation
(in thousands) 5,164,078 5,183,404 5,663,514 5,176,083 5,689,771
Exchange rate (NT$ per US$1) 33.16 33.82 30.36 33.49 31.05 Advanced
Semiconductor Engineering, Inc. Summary of Consolidated Balance
Sheet Data (In NT$ millions) (Unaudited) As of Jun. 30, As of Mar.
31, 2009 2009 Current assets: Cash and cash equivalents 20,285
26,619 Financial assets - current 8,391 1,131 Notes and accounts
receivable 14,583 10,320 Inventories 5,215 4,446 Others 3,511 2,954
Total current assets 51,985 45,470 Financial assets - non current
4,587 4,540 Properties - net 78,546 82,405 Intangible assets 12,091
12,499 Others 3,956 4,150 Total assets 151,165 149,064 Current
liabilities: Short-term debts - revolving credit 7,888 7,488
Current portion of long-term debts 1,932 2,405 Notes and accounts
payable 6,842 4,168 Others 10,771 7,575 Total current liabilities
27,433 21,636 Long-term debts 52,356 53,782 Other liabilities 3,618
3,594 Total liabilities 83,407 79,012 Minority interest 2,182 2,076
Shareholders' equity 65,576 67,976 Total liabilities &
shareholders' equity 151,165 149,064 Current Ratio 1.90 2.10 Net
Debt to Equity 0.49 0.51 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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