ASTT Asat Hldg Ltd American Dep (MM)

HONG KONG and MILPITAS, Calif., Nov. 7 /PRNewswire-FirstCall/ -- ASAT Holdings Limited (NASDAQ:ASTT), a global provider of semiconductor package design, assembly and test services, today announced financial results for the first quarter fiscal 2008, ended July 31, 2007. (Logo: http://www.newscom.com/cgi-bin/prnh/20030414/ASATLOGO ) Net revenue in the first quarter increased approximately 5 percent to $37.7 million, compared with net revenue of $36.0 million in the previous quarter. First quarter net loss was $5.7 million, or a net loss of $0.14 per American Depositary Share (ADS). First quarter net loss includes a charge of approximately $132,000 in reorganization costs for follow-on expenses related to completing the move of the Company's manufacturing operations to China. Net loss in the fourth quarter was $11.0 million, or a net loss of $0.25 per ADS. Additional First Quarter Results -- Net sales for assembly were $36.3 million -- Net sales for test were $1.4 million -- Capital expenditures were $1.1 million -- Cash and cash equivalents at the end of the quarter were $9.8 million "Earlier this year we implemented a clearly defined plan to improve our financial structure. Included in this plan was securing consent from our bondholders, obtaining financing to strengthen our balance sheet, and improving our overall financial performance. We have delivered on all three areas and have created a solid foundation that we will build on," said Tung Lok Li, acting chief executive officer of ASAT Holdings Limited. "During this challenging period we received strong support from our customers, vendors and employees. I want to personally thank everyone for their loyalty and dedication during this important stage of our transition." "Following the 98 percent approval for our consent solicitation we were able to secure a $20 million line of credit, which exceeded our original expectations," said Kei Hong Chua, chief financial officer of ASAT Holdings Limited. "The terms of the line of credit -- Libor plus 0.80 percent -- are very favorable and reflect the confidence the lenders have in our business." Second Quarter Fiscal 2008 Outlook "We are seeing positive momentum with our expanded sales efforts and expect revenue should continue to improve," said Mr. Li. "Based on current expectations and our customer's forecasts, revenue in the second quarter, which ended on October 31, should be approximately $40.2 million. In addition, we believe revenue in the January quarter, ending January 31, 2008, will increase in the range of 3 percent to 8 percent above the October quarter." Conference Call and Webcast on Wednesday, November 7, 2007 at 8:30 a.m. ET ASAT Holdings Limited is scheduled to hold a conference call to discuss the financial results and other financial matters today at 8:30 am ET/5:30 am PT. To access the call, dial (973) 935-8766. A replay of the call will be available until November 14, 2007. To access the replay, dial (973) 341-3080. The passcode is 9338123. A live webcast of the call will also be available via the investor relations section of the Company's website at http://www.asat.com/. ASAT Holdings Limited ASAT Holdings Limited is a global provider of semiconductor package design, assembly and test services. With 18 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. Today the Company has operations in the United States, Asia and Europe. For more information, visit http://www.asat.com/. Safe Harbor This news release contains statements and information that involve risks, uncertainties and assumptions. These statements and information constitute "forward-looking statements" within the meaning of federal securities laws including 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. Such forward-looking statements, including statements regarding expected revenues, liquidity and financial position in our fiscal quarter, our manufacturing capacity and cost structure, our operational efficiencies, our relocation and reorganization costs, our customer retention, growth and expectations, our obtaining additional financing, our continuation as a going concern and our capital needs, involve known and unknown risks, uncertainties, assumptions and other factors that could cause the actual performance, financial condition or results of operations of ASAT Holdings Limited to differ materially from those expressed or implied in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those contained in these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy, our progress in ramping the new China facility, acceptance and demand for the Company's products and services, continued operational efficiencies, customer retention, growth and expectations, operational and technological risks and revisions to the preliminary unaudited financial results which may occur during preparation of financial statements and disclosures and the preparation of the Company's quarterly report on Form 6-K and annual report on Form 20-F. The risks, uncertainties and other factors also include, among others, our ability to successfully implement our diversification strategy and our long-term growth strategy, our ability to continue to realize operational efficiencies and improvements to our cost structure, and those risks, uncertainties, assumptions and other factors stated in the section entitled "Risk Factors" in our Annual Report on Form 20- F filed with the United States Securities and Exchange Commission on October 15, 2007 and the section entitled "Risk Factors" in our quarterly reports on Form 6-K filed with the United States Securities and Exchange Commission. The forward-looking statements in this release reflect the current beliefs and expectations of the Company as of this date, and the Company undertakes no obligation to update these projections and forward-looking statements to reflect actual results or events or circumstances that occur after the date of this news release. Revenue Breakdown by Market Segment Three Months Ended July 31, 2007 April 30, 2007 Market Segment % of Net Revenues % of Net Revenues (Unaudited) Communications 48 49 Automotive/Industrial & Other 15 16 Consumer 20 19 PC/Computing 17 16 Revenue Breakdown by Region Three Months Ended July 31, 2007 April 30, 2007 Region % of Net Revenues % of Net Revenues (Unaudited) United States 82 82 Europe 5 4 Asia 13 14 Revenue Breakdown by Customer Type Three Months Ended July 31, 2007 April 30, 2007 Customer Type % of Net Revenues % of Net Revenues (Unaudited) Fabless 83 80 IDM 17 20 Summary financial data follows ASAT Holdings Limited Consolidated Statements of Operations (USD in thousands, except share data) For the three months ended July 31, 2007, April 30, 2007 and July 31, 2006 Three Months Ended July 31, April 30, July 31, 2007 2007 2006 (Unaudited) (Unaudited) (Unaudited) Net Sales 37,735 35,985 46,333 Cost of sales (Note A) 32,702 33,399 41,751 Gross profit 5,033 2,586 4,582 Operating expenses: Selling, general and administrative 5,227 5,794 5,376 Research and development 512 475 604 Reorganization expenses (Note B) 132 682 421 Facilities and relocation charges - 89 1,554 Total operating expenses 5,871 7,040 7,955 Loss from operations (838) (4,454) (3,373) Other income/(expense), net 222 (397) 231 Interest expense: - amortization of deferred charges (892) (858) (1,024) - third parties (4,100) (4,013) (3,914) Loss before income taxes (5,608) (9,722) (8,080) Income tax expense (Note C) (105) (1,264) - Net loss (5,713) (10,986) (8,080) Other comprehensive loss: Foreign currency translation - 22 5 Comprehensive loss (5,713) (10,964) (8,075) Net loss applicable to common shareholders: Net loss (5,713) (10,986) (8,080) Preferred shares: Cumulative preferred share dividends (507) (497) (489) Accretion of preferred shares (362) (339) (276) Net loss applicable to common shareholders: (6,582) (11,822) (8,845) Basis and diluted loss per ADS (Note D): Basic and diluted: Net loss (0.14) (0.25) (0.19) Basic and diluted weighted average number of ADS outstanding (Note D) 46,956,590 46,695,972 45,520,597 Basis and diluted loss per ordinary share: Basic and diluted: Net loss (0.01) (0.02) (0.01) Basic and diluted weighted average number of ordinary shares outstanding 704,348,844 700,439,575 682,808,960 Note A: Includes $228, $1,356 and $nil inventory write-down for the three months ended July 31, 2007, April 30, 2007 and July 31, 2006, respectively. Note B: Includes charges of $132, $682 and $421 associated with headcount reductions, primarily in the Company's Hong Kong operations, for the three months ended July 31, 2007, April 30, 2007 and July 31, 2006, respectively. Note C: The amount mainly represents provision for the Hong Kong profits tax concerning a tax dispute for the fiscal year 2000. Note D: On December 8, 2006, the Company announced an intention to change the ADS ratio from 5 ordinary shares per 1 ADS to 15 ordinary shares per 1 ADS, representing the equivalent of a 1-for-3 reverse split. The new ADS ratio had taken effect at the close of business on December 22, 2006 and the new ADS ratio had in place at beginning of the next business day on December 26, 2006. The basic and diluted loss per ADS has been prepared on the number of ADS after the reverse share split. ASAT Holdings Limited Consolidated Balance Sheet (USD in thousands) As of July 31, 2007, April 30, 2007 and July 31, 2006 July 31, April 30, July 31, 2007 2007 2006 (Unaudited) (Audited)* (Unaudited) ASSETS Current assets: Cash and cash equivalents 9,765 7,325 13,390 Current portion of restricted cash 900 900 - Accounts receivable, net 17,590 17,704 22,747 Inventories 13,504 13,270 22,013 Prepaid expenses and other current assets 5,411 5,171 7,473 Total current assets 47,170 44,370 65,623 Restricted cash 900 900 3,320 Property, plant & equipment, net 75,857 79,582 89,804 Deferred charges, net 4,931 5,277 6,514 Other non-current assets 5,067 5,008 4,465 Total assets 133,925 135,137 169,726 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Short-term bank facilities 1,331 3,837 - Accounts payable 29,228 25,926 36,138 Accrued liabilities and other payable 22,781 22,445 25,278 Amount due to QPL 2,418 2,532 3,723 Current portion of capital lease obligations 1,724 1,822 2,072 Total current liabilities 57,482 56,562 67,211 Other payable, net of current portion 2,602 2,086 - Long-term bank facilities 2,588 - - Purchase money loan 8,796 8,249 6,805 9.25% senior notes due 2011 150,000 150,000 150,000 Capital lease obligations, net of current portion 406 758 2,091 Total liabilities 221,874 217,655 226,107 Series A Redeemable Convertible Preferred Shares 6,105 5,743 4,785 Shareholders' deficit: Common stock 7,114 7,114 6,899 Less: Repurchase of shares at par (71) (71) (71) Additional paid-in capital 245,992 246,072 246,456 Accumulated deficits (346,905) (341,192) (314,232) Accumulated other comprehensive loss (184) (184) (218) Total shareholders' deficit (94,054) (88,261) (61,166) Total liabilities and shareholders' deficit 133,925 135,137 169,726 * Extracted from the audited financial statement ASAT Holdings Limited Consolidated Statements of Cash Flows (USD in thousands) For the three months ended July 31, 2007, April 30, 2007 and July 31, 2006 Three Months Ended July 31, April 30, July 31, 2007 2007 2006 (Unaudited) (Unaudited) (Unaudited) Operating activities: Net loss (5,713) (10,986) (8,080) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization: Property, plant and equipment 5,674 5,708 5,915 Deferred charges and debt discount 892 858 1,024 Loss on disposal of property, plant and equipment 2 173 3 Unrealised foreign exchange loss 82 - - Amortization of stock-based compensation 282 169 318 Changes in operating assets and liabilities: Accounts receivable, net 114 2,162 6,860 Restricted cash - 1,520 - Inventories (120) 1,974 1,257 Prepaid expenses and other current assets (240) (347) 611 Other non-current assets (59) 49 (195) Accounts payable 2,327 305 893 Accrued liabilities and other payable 336 (4,692) 1,580 Amount due to QPL (114) (222) (2,103) Other payable, net of current portion 516 2,086 - Net cash provided by (used in) operating activities 3,979 (1,243) 8,083 Investing activities: Proceeds from disposal of property, plant and equipment - 146 - Acquisition of property, plant and equipment (1,089) (3,533) (6,676) Net cash used in investing activities (1,089) (3,387) (6,676) Financing activities: Proceeds from draw down of new loan - 1,304 - Repayment of capital lease obligations (450) (443) (427) Proceeds from right offering - - 490 Net cash (used in) provided by financing activities (450) 861 63 Net increase (decrease) in cash and cash equivalents 2,440 (3,769) 1,470 Cash and cash equivalents at beginning of period 7,325 11,072 11,915 Effects of foreign exchange rates change - 22 5 Cash and cash equivalents at end of period 9,765 7,325 13,390 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest expense 86 7,014 120 Income taxes 172 102 - http://www.newscom.com/cgi-bin/prnh/20030414/ASATLOGO http://photoarchive.ap.org/ DATASOURCE: ASAT Holdings Limited CONTACT: Jim Fanucchi of Summit IR Group Inc., +1-408-404-5400, , for ASAT Holdings Limited Web site: http://www.asat.com/

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