Other News Releases in Electronic Components
Market Analysis on Chinese Printed Circuit Board and Equipment Market
Handy Chooses The LEHR Eco Trimmer as a 2009 Innovation Award Winner
TI Chief Financial Officer Kevin March to deliver keynote at Credit Suisse investor conference
Other News Releases in Earnings
Escalon(R) Reports First Quarter Fiscal 2010 Results
Electronic Game Card, Inc. Files 10-Q for Period Ending September 30, 2009
Wolverine Tube Reports 2009 Third Quarter Results
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
See more news releases in: Electronic Components, Semiconductors, Computer Electronics, Banking & Financial Services, Earnings
Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Third Quarter of 2009
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
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
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: ir@aseglobal.com
Clare Lin, Director (US Contact)
Email: clare.lin@aseus.com
Tel: +1-408-986-6524
SOURCE Advanced Semiconductor Engineering, Inc.