Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Third Quarter of 2010

Oct 29, 2010, 02:00 ET from Advanced Semiconductor Engineering, Inc.

TAIPEI, Taiwan, Oct. 29 /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 revenue (1) of NT$51,489 million for the third quarter of 2010 (3Q10), up by 104% year-over-year and up by 11% sequentially. Net income for the quarter totaled NT$5,460 million, up from a net income of NT$3,187 million in 3Q09 and NT$4,613 million in 2Q10. Diluted earnings per share for the quarter was NT$0.91 (or US$0.143 per ADS), compared to diluted earnings per share of NT$0.56 for 3Q09 and NT$0.76 for 2Q10.

To aid investors in understanding the significance of the Company's successful tender offer for 98.9% of the outstanding common shares of Universal Scientific Industrial Co., Ltd. ("USI") in the second and third quarter of 2010, this earnings release includes (i) the Company's pro forma and actual financial results both reflecting the consolidation of USI, and (ii) consolidated financial results for USI. USI's financial results are reflected in the Company's actual financial results for the first quarter beginning in February 2010 and for the second and third quarter of 2010. The pro forma financial results reflect the completion of the USI tender offer as if it had occurred on January 1, 2009. The presentation of the financial results for USI and the Company as described above are for purposes of this earnings release only.

    (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
    3Q10 Results Highlights - Actual Basis
    -- Net revenue contribution from IC packaging operations (including module
       assembly), testing operations, EMS operations and substrates sold to
       third parties was NT$27,289 million, NT$6,017 million, NT$17,486
       million, and NT$697 million, respectively, and each represented
       approximately 53%, 12%, 34% and 1%, respectively, of total net revenues
       for the quarter.
    -- Cost of revenue was NT$40,384 million, up by 115% year-over-year and up
       by 11% sequentially.
       -- Raw material cost totaled NT$24,980 million during the quarter,
          representing 49% of total net revenue, compared with NT$22,108
          million and 48% of total net revenue in the previous quarter.
       -- Labor cost totaled NT$5,435 million during the quarter, representing
          11% of total net revenue, compared with NT$5,164 million and 11% of
          total net revenue in the previous quarter.
       -- Depreciation, amortization and rental expenses totaled NT$4,770
          million during the quarter, up by 16% year-over-year and up by 7%
          sequentially.
    -- Total operating expenses during 3Q10 were NT$4,440 million, including
       NT$1,668 million in R&D and NT$2,772 million in SG&A, compared with
       operating expenses of NT$4,153 million in 2Q10.  Total operating
       expenses as a percentage of net revenue for the current quarter were 9%,
       the same as the same quarter last year and the previous quarter.
    -- Operating income for the quarter totaled NT$6,665 million, up from
       NT$5,763 million in the previous quarter.  Operating margin increased
       to 13% in 3Q10 from 12% in 2Q10.
    -- In terms of non-operating items:
       -- Net interest expense was NT$280 million, slightly down from NT$282
          million a quarter ago.
       -- Net foreign exchange gain of NT$146 million was primarily
          attributable to the depreciation of the U.S. dollar against N.T.
          dollar and Renminbi("RMB").
       -- Gain on equity-method investments of NT$11 million was primarily
          attributable to our investment income of NT$13 million from Hung
          Ching Development & Construction Co.
       -- Other non-operating expenses of NT$67 million were related to
          miscellaneous loss.  Total non-operating expenses for the quarter
          were NT$190 million, compared to non-operating expenses of NT$156
          million for 3Q09 and non-operating expenses of NT$380 million for
          2Q10.
    -- Income before tax was NT$6,475 million for 3Q10, compared to NT$5,383
       million in the previous quarter.  We recorded income tax expense of
       NT$771 million during the quarter, compared to NT$611 million in 2Q10.
    -- In 3Q10, net income was NT$5,460 million, compared to net income of
       NT$3,187 million for 3Q09 and net income of NT$4,613 million for 2Q10.
    -- Our total number of shares outstanding at the end of the quarter was
       6,052,251,682, including retroactive stock dividend and treasury stock
       owned by our subsidiaries.  Our 3Q10 diluted earnings per share of
       NT$0.91 (or US$0.143 per ADS) was based on 5,984,316,940 weighted
       average number of shares outstanding in 3Q10.

    3Q10 Results Highlights - IC ATM(2) Basis
    -- Net revenue contribution from IC packaging operations, testing
       operations, and substrates sold to third parties was NT$27,301 million,
       NT$6,017 million and NT$697 million, respectively, and each represented
       approximately 80%, 18% and 2%, respectively, of total net revenues for
       the quarter.
    -- Cost of revenues was NT$24,912 million, up by 32% year-over-year and up
       by 6% sequentially.
       -- Raw material cost totaled NT$10,801 million during the quarter,
          representing 32% of total net revenue, compared with NT$10,278
          million and 32% of total net revenue in the previous quarter.
       -- Labor cost totaled NT$4,889 million during the quarter, representing
          14% of total net revenue, compared with NT$4,643 million and 15% of
           total net revenue in the previous quarter.
       -- Depreciation, amortization and rental expenses totaled NT$4,447
          million during the quarter, up by 8% year-over-year and up by 9%
          sequentially.
    -- Total operating expenses during 3Q10 were NT$3,213 million, including
       NT$1,260 million in R&D and NT$1,953 million in SG&A, compared with
       operating expenses of NT$2,936 million in 2Q10.  Total operating
       expenses as a percentage of net revenue for the current quarter were 9%,
       the same as the same quarter last year and the previous quarter.
    -- Operating income for the quarter totaled NT$5,890 million, up from
       NT$5,367 million in the previous quarter.  Operating margin was 17% in
       3Q10, the same as the previous quarter.
    -- In terms of non-operating items:
       -- Net interest expense was NT$279 million, up from NT$275 million a
          quarter ago.
       -- Net foreign exchange gain of NT$177 million was primarily
          attributable to the depreciation of the U.S. dollar against N.T.
          dollar and Renminbi("RMB").
       -- Gain on equity-method investments of NT$625 million was primarily
          attributable to our investment income in USI.
       -- Other non-operating expenses of NT$202 million were related to
          miscellaneous loss.  Total non-operating income for the quarter was
          NT$321 million, compared to non-operating expenses of NT$155 million
          for 3Q09 and non-operating expenses of NT$191 million for 2Q10.
    -- Income before tax was NT$6,211 million for 3Q10, compared to NT$5,176
       million in the previous quarter.  We recorded income tax expense of
       NT$596 million during the quarter, compared to NT$525 million in 2Q10.
    -- In 3Q10, net income was NT$5,460 million, compared to a net income of
       NT$3,187 million for 3Q09 and net income of NT$4,613 million for 2Q10.

    (2) ATM stands for Semiconductor Assembly, Testing and Material.

    3Q10 Results Highlights of USI
    -- Net revenue contribution from EMS operations was NT$17,486 million, up
       by 26% year-over-year and up by 19% sequentially.
    -- Cost of revenues was NT$15,387 million, up by 26% year-over-year and up
       by 19% sequentially.
       -- Raw material cost totaled NT$14,191 million during the quarter,
          representing 81% of total net revenue, compared with NT$11,838
          million and 80% of total net revenue in the previous quarter.
       -- Labor cost totaled NT$546 million during the quarter, representing
          3% of total net revenue, compared with NT$520 million and 4% of
          total net revenue in the previous quarter.
       -- Depreciation, amortization and rental expenses totaled NT$233
          million during the quarter, down by 19% year-over-year and up by 1%
          sequentially.
    -- Total operating expenses during 3Q10 were NT$1,131 million, including
       NT$407 million in R&D and NT$724 million in SG&A, compared with
       operating expenses of NT$1,218 million in 2Q10.  Total operating
       expenses as a percentage of net revenue for the current quarter were 6%,
       down from 7% in 3Q09 and down from 8% in 2Q10.
    -- Operating income for the quarter totaled NT$968 million, up from NT$545
       million in the previous quarter.  Operating margin was 6% in 3Q10, up
       by 2 percentage points from the previous quarter.
    -- Total non-operating income for the quarter was NT$114 million, compared
       to non-operating income of NT$53 million for 3Q09 and non-operating
       income of NT$91 million for 2Q10.
    -- Income before tax was NT$1,082million for 3Q10, compared to NT$636
       million in the previous quarter.  We recorded income tax expense of
       NT$174 million during the quarter, compared to NT$85 million in 2Q10.
    -- In 3Q10, net income was NT$906 million, compared to a net income of
       NT$605 million for 3Q09 and net income of NT$549 million for 2Q10.

    LIQUIdITY AND CAPITAL RESOURCES of Actual Basis
    -- As of September 30, 2010, our cash and current financial assets totaled
       NT$29,353 million, compared to NT$28,061 million as of June 30, 2010.
    -- Capital expenditures in 3Q10 totaled US$268 million, of which US$185
       million was used for IC packaging, US$72 million was used for testing,
       US$8 million was used for EMS and US$3 million was used for
       interconnect materials.
    -- As of September 30, 2010, we had total bank debt of NT$80,510 million,
       compared to NT$68,446 million as of June 30, 2010.  Total bank debt
       consisted of NT$19,116 million of revolving working capital loans,
       NT$3,239 million of the current portion of long-term debt, and
       NT$58,155 million of long-term debt.  Total unused credit lines
       amounted to NT$84,740 million.
    -- Current ratio as of September 30, 2010 was 1.43, compared to 1.41 as of
       June 30, 2010.  Net debt to equity ratio was 0.55 as of September 30,
       2010.
    -- Total number of employees was 47,952 as of September 30, 2010, compared
       to 27,940 as of September 30, 2009 and 44,374 as of June 30, 2010.

    Business Review
    IC Packaging Services(3)
    -- Net revenues generated from our IC packaging operations were NT$27,301
       million during the quarter, up by NT$7,296 million, or 36%
       year-over-year, and up by NT$1,594 million, or 6% sequentially.
    -- Net revenues from advanced substrate and leadframe-based packaging
       accounted for 84% of total IC packaging net revenues during the quarter,
       down by 1 percentage point from the previous quarter.
    -- Gross margin for our IC packaging operations during the quarter was 22%,
       up by 1 percentage point from the same quarter last year and the same
       as the previous quarter.
    -- Capital expenditures for our IC packaging operations amounted to US$185
       million during the quarter, of which US$159 million was used for
       wirebonding packaging capacity and US$26 million was used for wafer
       bumping and flip chip packaging equipment.
    -- As of September 30, 2010, there were 11,467 wirebonders in operation.
       805 wirebonders were added and 43 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, the same as the
       previous quarter.

    (3) IC packaging services include module assembly services.

    Testing Services
    -- Net revenues generated from our testing operations were NT$6,017
       million, up by NT$1,429 million, or 31% year-over-year, and up by
       NT$729 million, or 14%, sequentially.
    -- Final testing contributed 85% to total testing net revenues, up by 3
       percentage points from the previous quarter.  Wafer sort contributed
       13% to total testing net revenues, down by 2 percentage points from the
       previous quarter.  Engineering testing contributed 2% to total testing
       net revenues, down by 1 percentage point from the previous quarter.
    -- Depreciation, amortization and rental expense associated with our
       testing operations amounted to NT$1,585 million, up from NT$1,436
       million in 3Q09 and up from NT$1,403 million in 2Q10.
    -- In 3Q10, gross margin for our testing operations was 39%, up by 4
       percentage points year-over-year and the same as the previous quarter.
    -- Capital spending on our testing operations amounted to US$72 million
       during the quarter.
    -- As of September 30, 2010, there were 2,060 testers in operation.  245
       testers were added and 31 testers were disposed of during the quarter.

    EMS Services
    -- Net revenues generated from our EMS operations were NT$17,486 million,
       up by NT$3,600 million, or 26% year-over-year, and up by NT$2,760
       million, or 19%, sequentially.
    -- Electronics Packaging & EMS products contributed 20% to total EMS net
       revenues, down by 2 percentage points from the previous quarter.
       Computers & Peripherals products contributed 13% to total EMS net
       revenues, down by 3 percentage points from the previous quarter.
       Communications products contributed 37% to total EMS net revenues, up
       by 5 percentage points from the previous quarter.  Network Storage &
       Servers products contributed 10% to total EMS net revenues, which
       remained the same as the previous quarter.   Industrial & Automotive
       products contributed 20% to total EMS net revenues, which remained the
       same as the previous quarter.
    -- In 3Q10, gross margin for our EMS operations was 12%, the same as the
       same quarter last year and the previous quarter.
    -- Capital spending on our EMS operations amounted to US$8 million during
       the quarter.

    Substrate Operations
    -- PBGA substrate manufactured by ASE amounted to NT$2,669 million during
       the quarter, up by NT$420 million, or 19% year-over-year, and up by
       NT$109 million, or 4% from the previous quarter.  Of the total output
       of NT$2,669 million, NT$697 million was from sales to external
       customers.
    -- Gross margin for substrate operations was 25% during the quarter, up by
       3 percentage points year-over-year and down by 2 percentage points
       sequentially.
    -- In 3Q10, our internal substrate manufacturing operations supplied 47%
       (by value) of our total substrate requirements.

    Customers
    IC ATM consolidated Basis
    -- Our five largest customers together accounted for approximately 28% of
       our total net revenues in 3Q10, compared to 27% in 3Q09 and 29% in 2Q10.
       No single customer accounted for more than 10% of our total net
       revenues.
    -- Our top 10 customers contributed 44% of our total net revenues during
       the quarter, compared to 42% in 3Q09 and 43% in 2Q10.
    -- Our customers that are integrated device manufacturers, or IDMs,
       accounted for 38% of our total net revenues during the quarter,
       compared to 36% in 3Q09 and 35% in 2Q10.

    EMS Basis
    -- Our five largest customers together accounted for approximately 62% of
       our total net revenues in 3Q10, compared to 65% in 3Q09 and 62% in 2Q10.
       There were two customers, which accounted for more than 10% of our
       total net revenues.
    -- Our top 10 customers contributed 78% of our total net revenues during
       the quarter, compared to 82% in 3Q09 and 78% in 2Q10.

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., Broadcom Corporation, NVIDIA Corporation, NXP Semiconductors, Qualcomm Incorporated, Renesas Electronics Corporation, RF Micro Devices Inc. and STMicroelectronics N.V. 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, 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 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 2009 Annual Report on Form 20-F filed on June 11, 2010.

                      Supplemental Financial Information



    IC ATM Consolidated Operations

    Amounts in NT$ Millions             3Q/10          2Q/10           3Q/09

    Net Revenues                       34,015         31,697          25,205
    Revenues by End Application
      Communications                      48%            46%             45%
      Computers                           16%            18%             20%
      Automotive and Consumer             36%            36%             33%
      Others                               0%             0%              2%
    Revenues by Region
      North America                       54%            52%             52%
      Europe                              14%            14%             13%
      Taiwan                              18%            20%             20%
      Japan                                9%             9%             10%
      Other Asia                           5%             5%              5%



    IC Packaging Services

    Amounts in NT$ Millions             3Q/10          2Q/10           3Q/09

    Net Revenues                       27,301         25,707          20,005
    Revenues by Packaging Type
      Advanced substrate &
       leadframe based                    84%            85%             89%
      Traditional leadframe based          8%             6%              5%
      Module assembly                      5%             5%              3%
      Others                               3%             4%              3%
    Capacity
      CapEx (US$ Millions)*               185            227              91
      Number of Wirebonders            11,467         10,705           8,880



    Testing Services

    Amounts in NT$ Millions             3Q/10          2Q/10           3Q/09

    Net Revenues                        6,017          5,288           4,588
    Revenues by Testing Type
      Final test                          85%            82%             82%
      Wafer sort                          13%            15%             15%
      Engineering test                     2%             3%              3%
    Capacity
      CapEx (US$ Millions)*                72            127              17
      Number of Testers                 2,060          1,846           1,569



    EMS Services

    Amounts in NT$ Millions             3Q/10          2Q/10           3Q/09

    Net Revenues                       17,486         14,726          13,886
    Revenues by End Application
      Electronics Packaging & EMS         20%            22%             28%
      Computers & Peripherals             13%            16%             24%
      Communications                      37%            32%             24%
      Network Storage & Servers           10%            10%              7%
      Industrial & Automotive Products    20%            20%             17%
    Capacity
      CapEx (US$ Millions)*                 8              7               1

    * Capital expenditure amounts exclude building construction costs.



                   Advanced Semiconductor Engineering, Inc.
        Summary of Consolidated Income Statements Data - Actual Basis*
                   (In NT$ millions, except per share data)
                                 (Unaudited)

                                         For the                   For the
                                   three months ended           period ended

                               Sep. 30   Jun. 30   Sep. 30   Sep. 30   Sep. 30
                                  2010      2010      2009      2010      2009

    Net revenues:
      IC Packaging              27,289    25,700    20,005    75,069    46,804
      Testing                    6,017     5,288     4,588    15,968    11,233
      EMS                       17,486    14,726        --    42,351        --
      Others                       697       702       612     2,072     1,446
    Total net revenues          51,489    46,416    25,205   135,460    59,483

    Cost of revenues           (40,384)  (36,500)  (18,802) (106,883)  (47,834)
    Gross profit                11,105     9,916     6,403    28,577    11,649

    Operating expenses:
      Research and
       development              (1,668)   (1,560)     (956)   (4,529)   (2,531)
      Selling, general and
       administrative           (2,772)   (2,593)   (1,434)   (7,341)   (3,956)
      Total operating
       expenses                 (4,440)   (4,153)   (2,390)  (11,870)   (6,487)
    Operating income (loss)      6,665     5,763     4,013    16,707     5,162

    Net non-operating
     (expenses) income:
      Interest expense - net      (280)     (282)     (303)     (854)   (1,078)
      Foreign exchange gain
       (loss)                      146       (80)      (30)       62       (30)
      Gain (loss) on
       equity-method
       investments                  11        36       112        80       194
      Others                       (67)      (54)       65       (63)      168
      Total non-operating
       (expenses) income          (190)     (380)     (156)     (775)     (746)
    Income (loss) before tax     6,475     5,383     3,857    15,932     4,416

    Income tax benefit
     (expense)                    (771)     (611)     (558)   (1,838)   (1,066)
    (Loss) income from
     continuing operations
     and before minority
     interest                    5,704     4,772     3,299    14,094     3,350
    Minority interest             (244)     (159)     (112)     (626)      (55)

    Net income (loss)            5,460     4,613     3,187    13,468     3,295

    Per share data:
    Earnings (losses)
     per share
      - Basic                  NT$0.92   NT$0.78   NT$0.56   NT$2.28   NT$0.58
      - Diluted                NT$0.91   NT$0.76   NT$0.56   NT$2.24   NT$0.58

    Earnings (losses) per
     equivalent ADS
      - Basic                 US$0.145  US$0.122  US$0.087  US$0.358  US$0.087
      - Diluted               US$0.143  US$0.120  US$0.086  US$0.351  US$0.087

    Number of weighted
     average shares used
     in diluted EPS
     calculation (in
     thousands)              5,984,317 6,010,599 5,705,190 5,973,908 5,722,001

    Exchange rate
     (NT$ per US$1)              31.87     31.78     32.81     31.90     33.26

    * Figures above reflect consolidation of USI starting in February 2010.


Advanced Semiconductor Engineering, Inc.

Summary of Consolidated Income Statements Data - Pro Forma Basis Assuming USI

            Consolidated at the Beginning of Each Applicable Period
                   (In NT$ millions, except per share data)
                                 (Unaudited)

                                         For the                   For the
                                   three months ended           period ended

                               Sep. 30   Jun. 30   Sep. 30   Sep. 30   Sep. 30
                                  2010      2010      2009      2010      2009

    Net revenues:
      IC Packaging              27,289    25,700    20,002    75,069    46,793
      Testing                    6,154     5,722     5,014    16,960    12,243
      EMS                       17,486    14,726    13,886    46,718    36,547
      Others                       697       702       612     2,072     1,446
    Total net revenues          51,626    46,850    39,514   140,819    97,029

    Cost of revenues           (40,490)  (36,754)  (31,441) (111,505)  (81,401)
    Gross profit                11,136    10,096     8,073    29,314    15,628

    Operating expenses:
      Research and
       development              (1,668)   (1,560)   (1,344)   (4,660)   (3,660)
      Selling, general and
       administrative           (2,713)   (2,655)   (2,134)   (7,626)   (5,921)
      Total operating
       expenses                 (4,381)   (4,215)   (3,478)  (12,286)   (9,581)
    Operating income (loss)      6,755     5,881     4,595    17,028     6,047

    Net non-operating
     (expenses) income:
      Total non-operating
       (expenses) income          (186)     (402)     (236)     (853)     (917)
    Income (loss) before
     tax                         6,569     5,479     4,359    16,175     5,130

    Income tax benefit
     (expense)                    (771)     (607)     (670)   (1,854)   (1,304)
    (Loss) income from
     continuing operations
     and before minority
     interest                    5,798     4,872     3,689    14,321     3,826
    Minority interest             (165)      (41)     (119)     (352)      (68)

    Net income (loss)            5,633     4,831     3,570    13,969     3,758

    Per share data:
    Earnings (losses)
     per share
      - Basic                  NT$0.95   NT$0.81   NT$0.60   NT$2.35   NT$0.63
      - Diluted                NT$0.94   NT$0.80   NT$0.58   NT$2.31   NT$0.63

    Number of weighted
     average shares
     used in diluted
     EPS calculation
     (in thousands)          5,984,317 6,010,599 5,961,964 6,008,189 5,961,964



                   Advanced Semiconductor Engineering, Inc.
        Summary of Consolidated Income Statements Data - IC ATM Basis
                   (In NT$ millions, except per share data)
                                 (Unaudited)

                                         For the                   For the
                                   three months ended           period ended

                               Sep. 30   Jun. 30   Sep. 30   Sep. 30   Sep. 30
                                  2010      2010      2009      2010      2009

    Net revenues:
      IC Packaging              27,301    25,707    20,005    75,095    46,804
      Testing                    6,017     5,288     4,588    15,968    11,233
      Others                       697       702       612     2,072     1,446
    Total net revenues          34,015    31,697    25,205    93,135    59,483

    Cost of revenues           (24,912)  (23,394)  (18,802)  (69,282)  (47,834)
    Gross profit                 9,103     8,303     6,403    23,853    11,649

    Operating expenses:
      Research and
       development              (1,260)   (1,143)     (956)   (3,438)   (2,531)
      Selling, general and
       administrative           (1,953)   (1,793)   (1,434)   (5,340)   (3,956)
      Total operating
       expenses                 (3,213)   (2,936)   (2,390)   (8,778)   (6,487)
    Operating income (loss)      5,890     5,367     4,013    15,075     5,162

    Net non-operating
     (expenses) income:
      Interest expense - net      (279)     (275)     (303)     (847)   (1,078)
      Foreign exchange gain
       (loss)                      177       (77)      (30)      114       (30)
      Gain (loss) on
       equity-method
       investments                 625       313       112     1,266       194
      Others                      (202)     (152)       65      (289)      168
      Total non-operating
       (expenses) income           321      (191)     (156)      244      (746)
    Income (loss) before tax     6,211     5,176     3,857    15,319     4,416

    Income tax benefit
     (expense)                    (596)     (525)     (558)   (1,517)   (1,066)
    (Loss) income from
     continuing operations
     and before minority
     interest                    5,615     4,651     3,299    13,802     3,350
    Minority interest             (155)      (38)     (112)     (334)      (55)

    Net income (loss)            5,460     4,613     3,187    13,468     3,295

    Per share data:
    Earnings (losses)
     per share
      - Basic                  NT$0.92   NT$0.78   NT$0.56   NT$2.28   NT$0.58
      - Diluted                NT$0.91   NT$0.76   NT$0.56   NT$2.24   NT$0.58

    Number of weighted
     average shares
     used in diluted
     EPS calculation
     (in thousands)          5,984,317 6,010,599 5,705,190 5,973,908 5,722,001



                  Universal Scientific Industrial Co., Ltd.
                Summary of Consolidated Income Statements Data
                   (In NT$ millions, except per share data)
                                 (Unaudited)

                                         For the                   For the
                                   three months ended           period ended

                               Sep. 30   Jun. 30   Sep. 30   Sep. 30   Sep. 30
                                  2010      2010      2009      2010      2009

    Net revenues:
    Total net revenues          17,486    14,726    13,886    46,718    36,547

    Cost of revenues           (15,387)  (12,963)  (12,199)  (41,242)  (32,319)
    Gross profit                 2,099     1,763     1,687     5,476     4,228

    Operating expenses:
      Research and
       development                (407)     (417)     (387)   (1,222)   (1,128)
      Selling, general and
       administrative             (724)     (801)     (634)   (2,114)   (1,779)
      Total operating
       expenses                 (1,131)   (1,218)   (1,021)   (3,336)   (2,907)
    Operating income (loss)        968       545       666     2,140     1,321

    Net non-operating
     (expenses) income:
      Total non-operating
       (expenses) income           114        91        53       185       138
    Income (loss) before tax     1,082       636       719     2,325     1,459

    Income tax benefit
     (expense)                    (174)      (85)     (112)     (333)     (237)
    (Loss) income from
     continuing operations
     and before minority
     interest                      908       551       607     1,992     1,222
    Minority interest               (2)       (2)       (2)       (6)       (4)

    Net income (loss)              906       549       605     1,986     1,218



                   Advanced Semiconductor Engineering, Inc.
          Summary of Consolidated Balance Sheet Data - Actual Basis*
                              (In NT$ millions)
                                 (Unaudited)

                                                   As of             As of
                                           Sep. 30, 2010     Jun. 30, 2010

    Current assets:
      Cash and cash equivalents                   26,278            24,771
      Financial assets - current                   3,075             3,290
      Notes and accounts receivable               36,329            34,309
      Inventories                                 25,220            24,905
      Others                                       5,563             4,725
      Total current assets                        96,465            92,000

    Financial assets - non current                 2,328             2,389
    Properties - net                             102,698            95,906
    Intangible assets                             16,007            16,419
    Others                                         5,063             4,579
    Total assets                                 222,561           211,293

    Current liabilities:
     Short-term debts - revolving credit          19,116            15,494
     Current portion of long-term
      debts                                        3,239             2,136
     Notes and accounts payable                   24,997            24,896
     Others                                       20,296            22,757
     Total current liabilities                    67,648            65,283

    Long-term debts                               58,155            50,816
    Other liabilities                              4,195             4,116
    Total liabilities                            129,998           120,215

    Minority interest                              3,897             7,055

    Shareholders' equity                          88,666            84,023
    Total liabilities &
     shareholders' equity                        222,561           211,293

    Current Ratio                                   1.43              1.41
    Net Debt to Equity                              0.55              0.44

    * Figures above reflect consolidation of USI starting in February 2010.



                  Universal Scientific Industrial Co., Ltd.
                  Summary of Consolidated Balance Sheet Data
                              (In NT$ millions)
                                 (Unaudited)

                                                   As of             As of
                                           Sep. 30, 2010     Jun. 30, 2010

    Current assets:
      Cash and cash equivalents                   10,490            10,769
      Financial assets - current                     402               415
      Notes and accounts receivable               14,339            13,405
      Inventories                                  7,302             7,455
      Others                                         546               596
      Total current assets                        33,079            32,640

    Financial assets - non current                   529               571
    Properties - net                               4,892             4,975
    Intangible assets                                154               158
    Others                                           924               995
    Total assets                                  39,578            39,339

    Current liabilities:
      Short-term debts - revolving credit          5,832             5,592
      Current portion of long-term debts             245                --
      Notes and accounts payable                  13,642            13,525
      Others                                       1,852             3,827
      Total current liabilities                   21,571            22,944

    Long-term debts                                1,155               200
    Other liabilities                                340               340
    Total liabilities                             23,066            23,484

    Minority interest                                 37                35

    Shareholders' equity                          16,475            15,820
    Total liabilities &
     shareholders' equity                         39,578            39,339



    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:   +1-408-636-9524

SOURCE Advanced Semiconductor Engineering, Inc.



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