Advanced Semiconductor Engineering, Inc. Reports Year 2001 First-Quarter Financial Results

Apr 26, 2001, 01:00 ET from Advanced Semiconductor Engineering, Inc.

    TAIPEI, Taiwan, April 26 /PRNewswire/ --
 Advanced Semiconductor Engineering, Inc. (NYSE:   ASX) (TAIEX: 2311), ("ASE", or
 the "Company"), one of the world's largest independent providers of
 semiconductor packaging and testing services, today reported quarterly sales
 of NT$11,250 million and quarterly earnings of NT$352 million in the first
 quarter ended March 31, 2001.  Fully diluted earnings per share for the
 quarter were NT$0.12, or US$0.019 per ADS.
     "The first quarter was a difficult quarter for the industry, and ASE is
 not immune from this slowdown," said Mr. Jason Chang, chairman of ASE Inc.
 "While the industry came down at a pace much faster than expected, we are
 having extremely poor visibility.  Facing this tough environment, we are
 taking necessary actions to improve our cost structure and consequently better
 protect profitability."
     Dr. Leonard Liu, president of ASE also commented, "As we are beginning to
 see companies taking dramatic actions to write-off inventory, we believe the
 situation should gradually start to improve.  Today, technology continues to
 evolve at a very rapid pace, and the only way to create demand is by
 introducing new technology to the market to provide better solutions and
 stimulate consumption.  Given the economy of scale of our operation and our
 diversified revenue sources, we believe we can weather this down cycle much
 better than most of our competitors."
 
     Financial Results
 
     First-Quarter 2001 Results: Year-over-Year Comparison
 
     * Net revenues increased 1% to NT$11,250 million.
     * Gross profit declined 32% to NT$2,383 million.
     * Operating income decreased 57% to NT$968 million.
     * Net income fell 76% to NT$352 million.
     * Fully diluted earnings per share declined 78% to NT$0.12,
       or US$0.019 per ADS.
 
     Net Revenues:
     Consolidated net revenues totaled NT$11,250 million in the first quarter
 of 2001, up 1% from NT$11,162 million in the same period in 2000.  Assembly
 revenues decreased 3% to NT$8,142 million, and testing revenues increased 12%
 to NT$3,106 million. With the exception of ASE Inc.  Kaoshiung and ASE Test
 Inc., all other operations posted lower revenues in the first quarter of 2001
 compared with a year ago.
 
     Gross Profit:
     Gross profit decreased 32% YoY to NT$2,383 million.  Gross margin also
 declined to 21.2% from 31.3% in the same period of 2000.  The lower gross
 margin was mainly attributable to the higher depreciation expense recorded in
 the quarter as a result of our capacity expansion in year 2000.  Depreciation
 expense during the quarter totaled NT$2,468 million, which represented a 46%
 increase from the same period last year.  Depreciation expense as a percentage
 of net revenues rose from 15.1% in Q1 2000 to 21.9% in Q1 2001 as a result of
 lower utilization rate in both assembly and test operations.  Cost for raw
 material also increased from NT$3,263 million in the first quarter of 2000 to
 NT$3,401 million for this quarter, which represented 1% increase as a
 percentage of net revenues.
 
     Operating Expenses / Income:
     Operating expenses increased 14% YoY to NT$1,415 million.  Of the total,
 research and development ("R&D") spending increased 51% to NT$364 million, or
 3.2% of net revenues versus 2.2% for the same period last year.  Selling,
 general and administrative expenses during the quarter increased 6% from the
 year-ago period to NT$1,051 million, or 9.3% of net revenues versus 8.9% for
 the same quarter last year.  Total operating expenses as a percentage of
 revenues rose to 12.6% in Q1 2001 from 11.1% in Q1 2000.  Goodwill
 amortization expense relating to the acquisition of consolidated entities
 (including ASE Chung Li, ASE Korea and ISE Labs) amounted to NT$151 million in
 the latest quarter.
     Operating income fell 57% YoY to NT$968 million.  Operating margin,
 meanwhile, declined to 8.6% in the latest quarter from 20.2% in the same
 period last year.
 
     Non-operating Expenses:
     Total non-operating expenses decreased from NT$307 million a year ago to
 NT$286 million.  Net interest expense decreased 10% to NT$411 million during
 the latest quarter from NT$456 million in Q1 2000 as a result of decreased
 leverage in 2000.  We recorded a foreign exchange gain of NT$264 million as a
 result of the Yen's depreciation which had a positive impact on our Yen
 denominated liabilities.  Long-term investment gain or loss decreased from a
 gain of NT$68 million to a loss of NT$191 million, mainly due to loss recorded
 by USI and Hung Ching Construction in the latest quarter.  Goodwill
 amortization expenses for non-consolidated entities amount to NT$95 million
 during the quarter.  During the first quarter of 2001, we received a cash
 dividend of NT$100 million from our investment in a venture capital fund.
 
     Net income:
     Income tax expense of NT$156 million in Q1 2001 represents an effective
 tax rate of 22.9%.  Minority interest expense totaled NT$174 million in the
 quarter.  Net income for the first quarter 2001 reached NT$352 million, a
 decline of 76% compared with the same period last year.
     Fully diluted earnings per share were NT$0.12 in Q1 2001, versus NT$0.54
 in Q1 2000.  Fully diluted earnings per ADS were US$0.019 versus US$0.087 in
 the first quarter last year.
 
     Shares Outstanding:
     Retroactively adjusted for the company's 2000 stock dividend, a weighted
 average total of 2,752 million ASE common shares were used to calculate per
 share data for the 1Q 2001 versus 2,652 million Common shares for the same
 period 2000.  Each ADS represents 5 common shares.
 
     Capital Expenditures:
     Capital spending in Q1 2001 totaled US$79 million.  Capital expenditures
 by operation breaks down as follows: US$26 million to assembly operations,
 US$27 million to testing operations and US$26 million to material
 manufacturing operations.
 
     First-Quarter 2001 Results: Sequential Comparison
 
     * Net revenues declined 16% sequentially.
     * Gross profit decreased 39%.
     * Operating income decreased 60%.
     * Net income dropped 73%.
 
     Net Revenues:
     Net revenues in Q1 2001 declined 16% from the prior quarter.  Assembly
 revenues decreased 17% to NT$8,142 million, whereas testing revenues decreased
 12% to NT$3,106 million.  The lower revenues is attributable to the industry
 slowdown across the board. Total combined assembly and test revenues from PC
 sector grew from 24% in Q4 2000 to 29% in Q1 2001 as some of our PC related
 chipset design companies out-performed other sectors.
 
     Gross Profit:
     Gross profit in Q1 2001 decreased 39% on a sequential basis.  Gross
 margin, meanwhile, declined by 8.1 percentage points to 21.2%.  Raw material
 cost decreased 7% from NT$3,662 million in previous quarter to NT$3,401
 million in Q1 2001, but increased from 27.3% to 30.2% as a percentage of net
 revenues due to lower ASP.  Depreciation expenses for the quarter increased
 NT$179 million.  As a percentage of net revenues, depreciation expenses
 increased from 17.1% to 21.9%, reflecting lower machine utilization rate in
 our factories due to volume decline.
 
     Operating Expenses / Income:
     Operating expenses decreased 7% on a sequential basis, of which R&D
 expenses reduced 11%, and SG&A expenses decreased 5%.  Operating income
 declined 60% sequentially, and operating margin dropped 9.4 percentage points
 from 18.0% in the previous quarter to 8.6% for Q1 2001.
 
     Non-operating Expenses:
     Non-operating expenses improved by 27% to NT$286 million, or 2.5% of net
 revenues versus 2.9% for the previous quarter.  The improvement mainly came
 from higher foreign exchange gain recognized during the quarter
 (NT$264 million vs. NT$152 million), and reduced loss from our long term
 investment (NT$191 million vs. NT$233 million).
 
     Net income:
     Income before tax declined 66% sequentially to NT$682 million.  Minority
 interests decreased to NT$174 million, reflecting lower profit contribution by
 our consolidated entities, especially ASE Test Limited.  Net income decreased
 73% compared with the fourth quarter of last year. Fully diluted earnings per
 share declined from NT$0.47 to NT$0.12 sequentially.
 
     About ASE Inc.
     ASE Inc. is one of the world's largest independent providers of
 semiconductor packaging services and, together with its subsidiary
 ASE Test Limited (Nasdaq:   ASTSF), one of the world's largest independent
 providers of semiconductor testing services, including front-end engineering
 testing, wafer probing and final testing services.  The Company's
 international customer base of more than 200 blue-chip customers includes such
 leading names as Advanced Micro Devices, Inc., Altera Corporation, Cirrus
 Logic International Ltd., Conexant Systems, Inc., LSI Logic Corporation, and
 Qualcomm Incorporated.  With advanced-process technological capabilities and a
 global presence spanning Taiwan, Korea, Hong Kong, Singapore, Malaysia and the
 United States, ASE Inc. has established a reputation for reliable, high
 quality products and services.  For more information, visit the website,
 http://www.aseglobal.com .
 
     Safe Harbor Notice
     This press release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995, including
 statements regarding our future revenues, earnings, and other results of
 operations.  Our actual results may differ materially from the results
 discussed 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 assembly and
 testing services we offer and for such outsourced services generally, our
 ability to maintain a high capacity utilization rate relative to our fixed
 costs, competition in our industry, and other reasons.  For a discussion of
 these and other factors which may cause our results to differ materially from
 our forward-looking statements, please read the discussion of these risks in
 the documents we filed from time to time with Securities and Exchange
 Commission, including our Prospectus on Form F1 and F4 filed Sept. 27, 2000
 and our Current Reports on Form 6-K filed Feb. 26, 2001, Dec. 27 and Oct. 30,
 2000.
 
                       Supplemental Financial Information
 
     Assembly Operations
     Amounts in NT$ Millions         1Q/01      1Q/00     4Q/00
     Net Revenue                     8,142      8,378     9,844
     End Application by Revenue
     Communication                     34%        41%       38%
     Computer                          30%        42%       25%
     Automotive and Consumers          35%        15%       36%
     Others                             1%         2%        1%
 
     Package Type by Revenue
     BGA                               52%        42%       43%
     QFP                               27%        33%       35%
     PDIP, PLCC, Sos                   12%        16%       15%
     Others                             9%         9%        7%
 
     Capacity
     CapEx (US$ Millions)              26         82        64
     Number of Wirebonders          3,909      3,061     3,973
 
     Testing Operations
     Amounts in NT$ Millions            1Q/01    1Q/00    4Q/00
     Net Revenue                        3,106    2,776    3,540
     End Application by Revenue
     Communication                     37%        30%       28%
     Computer                          28%        34%       23%
     Automotive and Consumers          33%        26%       43%
     Others                             2%        10%        6%
 
     Testing Type by Revenue
     Logic and Mixed Signal            97%        99%       97%
     Memory                             3%         1%        3%
 
     Capacity
     CapEx (US$ Millions)              27         98       107
     Number of Testers              1,059        773     1,029
 
 
                    Advanced Semiconductor Engineering, Inc.
                  Consolidated Summary Income Statements Data
                    (In NT$ millions, except per share data)
                                  (Unaudited)
 
                                    For the three months ended
                                   Mar. 31    Mar. 31   Dec. 31
                                     2001      2000      2000
     Net revenues:
      Assembly                      8,142      8,379     9,844
      Testing                       3,106      2,776     3,539
      Others                            2          7         9
     Total net revenues            11,250     11,162    13,392
 
     Cost of revenues               8,867      7,672     9,464
     Gross Profit                   2,383      3,490     3,928
 
     Operating expenses:
      Research and development        364        240       410
      Selling, general and
       administrative               1,051        996     1,110
      Total operating expenses      1,415      1,236     1,520
     Operating income                 968      2,254     2,408
 
     Other (income) expenses:
      Interest expenses, net          411        456       363
      Foreign currency loss (gain),
       net                           (264)      (250)     (152)
      Loss (gain) on long-term
       investment*                    285         19       327
      Loss (gain) on dispose
       of assets                        8         14       (18)
      Other non-operating expenses   (154)        68      (126)
      Total non-operating expenses    286        307       394
     Income before income tax         682      1,947     2,014
 
     Income tax expense (credit)      156        240       247
     Net income before minority
      interest                        526      1,707     1,767
 
     Minority interest                174        243       473
     Net income                       352      1,464     1,294
 
     Per share data:
      EPS - Basic                 NT$0.13    NT$0.55   NT$0.48
      EPS - Fully Diluted         NT$0.12    NT$0.54   NT$0.47
 
      Earnings per ADS - Basic   US$0.020   US$0.090  US$0.075
      Earnings per ADS -
       Fully Diluted             US$0.019   US$0.087  US$0.072
 
     Number of weighted average
      shares used in the EPS
       calculation (in thousands,
        retroactively adjusted
         for stock dividend)    2,752,000  2,651,676  2,677,603
 
     Forex (NT$ per US$1)           32.61      30.76      32.17
 
     * As a result of the recently announced debt restructuring of the Asia
 Pulp and paper ("APP") group of companies, ASE Inc. is revising its unaudited
 consolidated financial statement for the year ended December 31, 2000, to
 include a provision for loss of NT$236 million reflecting the impairment in
 the value of certain bonds issued by the APP Global Finance Limited and held
 by the Company as a long-term investment.  As a result of the revision, the
 Company's unaudited consolidated net income for the year ended December 31,
 2000, was NT$5,837 million, compared to NT$6,073 million without the provision
 for loss.
 
 
                    Advanced Semiconductor Engineering, Inc.
                    Consolidated Summary Balance Sheet Data
                               (In NT$ millions)
                                  (Unaudited)
 
                                  As of Mar. 31,   As of Dec. 31,
                                      2001            2000
     Current assets:
      Cash and cash equivalents      12,775          14,166
      Short-term investments          1,685           1,683
      Notes and accounts receivable   9,511           9,261
      Inventories                     2,879           3,246
      Others                          2,575           2,432
      Total                          29,425          30,788
 
     Long-term investments           10,652          10,712
     Properties - net                60,600          60,566
     Other assets                     7,063           6,275
     Total assets                   107,740         108,341
 
     Current liabilities:
      Short-term debts               13,512          13,765
      Notes and accounts payable      3,347           3,860
      Others                          6,460           8,246
      Total                          23,319          25,871
 
     Long-term debts                 26,588          25,979
      Other liabilities               1,538             760
      Total liabilities              51,445          52,610
 
     Minority interest               12,253          12,062
 
     Shareholders' equity            44,042          43,669
     Total liabilities &
      shareholders' equity          107,740         108,341
 
 
 

SOURCE Advanced Semiconductor Engineering, Inc.
    TAIPEI, Taiwan, April 26 /PRNewswire/ --
 Advanced Semiconductor Engineering, Inc. (NYSE:   ASX) (TAIEX: 2311), ("ASE", or
 the "Company"), one of the world's largest independent providers of
 semiconductor packaging and testing services, today reported quarterly sales
 of NT$11,250 million and quarterly earnings of NT$352 million in the first
 quarter ended March 31, 2001.  Fully diluted earnings per share for the
 quarter were NT$0.12, or US$0.019 per ADS.
     "The first quarter was a difficult quarter for the industry, and ASE is
 not immune from this slowdown," said Mr. Jason Chang, chairman of ASE Inc.
 "While the industry came down at a pace much faster than expected, we are
 having extremely poor visibility.  Facing this tough environment, we are
 taking necessary actions to improve our cost structure and consequently better
 protect profitability."
     Dr. Leonard Liu, president of ASE also commented, "As we are beginning to
 see companies taking dramatic actions to write-off inventory, we believe the
 situation should gradually start to improve.  Today, technology continues to
 evolve at a very rapid pace, and the only way to create demand is by
 introducing new technology to the market to provide better solutions and
 stimulate consumption.  Given the economy of scale of our operation and our
 diversified revenue sources, we believe we can weather this down cycle much
 better than most of our competitors."
 
     Financial Results
 
     First-Quarter 2001 Results: Year-over-Year Comparison
 
     * Net revenues increased 1% to NT$11,250 million.
     * Gross profit declined 32% to NT$2,383 million.
     * Operating income decreased 57% to NT$968 million.
     * Net income fell 76% to NT$352 million.
     * Fully diluted earnings per share declined 78% to NT$0.12,
       or US$0.019 per ADS.
 
     Net Revenues:
     Consolidated net revenues totaled NT$11,250 million in the first quarter
 of 2001, up 1% from NT$11,162 million in the same period in 2000.  Assembly
 revenues decreased 3% to NT$8,142 million, and testing revenues increased 12%
 to NT$3,106 million. With the exception of ASE Inc.  Kaoshiung and ASE Test
 Inc., all other operations posted lower revenues in the first quarter of 2001
 compared with a year ago.
 
     Gross Profit:
     Gross profit decreased 32% YoY to NT$2,383 million.  Gross margin also
 declined to 21.2% from 31.3% in the same period of 2000.  The lower gross
 margin was mainly attributable to the higher depreciation expense recorded in
 the quarter as a result of our capacity expansion in year 2000.  Depreciation
 expense during the quarter totaled NT$2,468 million, which represented a 46%
 increase from the same period last year.  Depreciation expense as a percentage
 of net revenues rose from 15.1% in Q1 2000 to 21.9% in Q1 2001 as a result of
 lower utilization rate in both assembly and test operations.  Cost for raw
 material also increased from NT$3,263 million in the first quarter of 2000 to
 NT$3,401 million for this quarter, which represented 1% increase as a
 percentage of net revenues.
 
     Operating Expenses / Income:
     Operating expenses increased 14% YoY to NT$1,415 million.  Of the total,
 research and development ("R&D") spending increased 51% to NT$364 million, or
 3.2% of net revenues versus 2.2% for the same period last year.  Selling,
 general and administrative expenses during the quarter increased 6% from the
 year-ago period to NT$1,051 million, or 9.3% of net revenues versus 8.9% for
 the same quarter last year.  Total operating expenses as a percentage of
 revenues rose to 12.6% in Q1 2001 from 11.1% in Q1 2000.  Goodwill
 amortization expense relating to the acquisition of consolidated entities
 (including ASE Chung Li, ASE Korea and ISE Labs) amounted to NT$151 million in
 the latest quarter.
     Operating income fell 57% YoY to NT$968 million.  Operating margin,
 meanwhile, declined to 8.6% in the latest quarter from 20.2% in the same
 period last year.
 
     Non-operating Expenses:
     Total non-operating expenses decreased from NT$307 million a year ago to
 NT$286 million.  Net interest expense decreased 10% to NT$411 million during
 the latest quarter from NT$456 million in Q1 2000 as a result of decreased
 leverage in 2000.  We recorded a foreign exchange gain of NT$264 million as a
 result of the Yen's depreciation which had a positive impact on our Yen
 denominated liabilities.  Long-term investment gain or loss decreased from a
 gain of NT$68 million to a loss of NT$191 million, mainly due to loss recorded
 by USI and Hung Ching Construction in the latest quarter.  Goodwill
 amortization expenses for non-consolidated entities amount to NT$95 million
 during the quarter.  During the first quarter of 2001, we received a cash
 dividend of NT$100 million from our investment in a venture capital fund.
 
     Net income:
     Income tax expense of NT$156 million in Q1 2001 represents an effective
 tax rate of 22.9%.  Minority interest expense totaled NT$174 million in the
 quarter.  Net income for the first quarter 2001 reached NT$352 million, a
 decline of 76% compared with the same period last year.
     Fully diluted earnings per share were NT$0.12 in Q1 2001, versus NT$0.54
 in Q1 2000.  Fully diluted earnings per ADS were US$0.019 versus US$0.087 in
 the first quarter last year.
 
     Shares Outstanding:
     Retroactively adjusted for the company's 2000 stock dividend, a weighted
 average total of 2,752 million ASE common shares were used to calculate per
 share data for the 1Q 2001 versus 2,652 million Common shares for the same
 period 2000.  Each ADS represents 5 common shares.
 
     Capital Expenditures:
     Capital spending in Q1 2001 totaled US$79 million.  Capital expenditures
 by operation breaks down as follows: US$26 million to assembly operations,
 US$27 million to testing operations and US$26 million to material
 manufacturing operations.
 
     First-Quarter 2001 Results: Sequential Comparison
 
     * Net revenues declined 16% sequentially.
     * Gross profit decreased 39%.
     * Operating income decreased 60%.
     * Net income dropped 73%.
 
     Net Revenues:
     Net revenues in Q1 2001 declined 16% from the prior quarter.  Assembly
 revenues decreased 17% to NT$8,142 million, whereas testing revenues decreased
 12% to NT$3,106 million.  The lower revenues is attributable to the industry
 slowdown across the board. Total combined assembly and test revenues from PC
 sector grew from 24% in Q4 2000 to 29% in Q1 2001 as some of our PC related
 chipset design companies out-performed other sectors.
 
     Gross Profit:
     Gross profit in Q1 2001 decreased 39% on a sequential basis.  Gross
 margin, meanwhile, declined by 8.1 percentage points to 21.2%.  Raw material
 cost decreased 7% from NT$3,662 million in previous quarter to NT$3,401
 million in Q1 2001, but increased from 27.3% to 30.2% as a percentage of net
 revenues due to lower ASP.  Depreciation expenses for the quarter increased
 NT$179 million.  As a percentage of net revenues, depreciation expenses
 increased from 17.1% to 21.9%, reflecting lower machine utilization rate in
 our factories due to volume decline.
 
     Operating Expenses / Income:
     Operating expenses decreased 7% on a sequential basis, of which R&D
 expenses reduced 11%, and SG&A expenses decreased 5%.  Operating income
 declined 60% sequentially, and operating margin dropped 9.4 percentage points
 from 18.0% in the previous quarter to 8.6% for Q1 2001.
 
     Non-operating Expenses:
     Non-operating expenses improved by 27% to NT$286 million, or 2.5% of net
 revenues versus 2.9% for the previous quarter.  The improvement mainly came
 from higher foreign exchange gain recognized during the quarter
 (NT$264 million vs. NT$152 million), and reduced loss from our long term
 investment (NT$191 million vs. NT$233 million).
 
     Net income:
     Income before tax declined 66% sequentially to NT$682 million.  Minority
 interests decreased to NT$174 million, reflecting lower profit contribution by
 our consolidated entities, especially ASE Test Limited.  Net income decreased
 73% compared with the fourth quarter of last year. Fully diluted earnings per
 share declined from NT$0.47 to NT$0.12 sequentially.
 
     About ASE Inc.
     ASE Inc. is one of the world's largest independent providers of
 semiconductor packaging services and, together with its subsidiary
 ASE Test Limited (Nasdaq:   ASTSF), one of the world's largest independent
 providers of semiconductor testing services, including front-end engineering
 testing, wafer probing and final testing services.  The Company's
 international customer base of more than 200 blue-chip customers includes such
 leading names as Advanced Micro Devices, Inc., Altera Corporation, Cirrus
 Logic International Ltd., Conexant Systems, Inc., LSI Logic Corporation, and
 Qualcomm Incorporated.  With advanced-process technological capabilities and a
 global presence spanning Taiwan, Korea, Hong Kong, Singapore, Malaysia and the
 United States, ASE Inc. has established a reputation for reliable, high
 quality products and services.  For more information, visit the website,
 http://www.aseglobal.com .
 
     Safe Harbor Notice
     This press release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995, including
 statements regarding our future revenues, earnings, and other results of
 operations.  Our actual results may differ materially from the results
 discussed 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 assembly and
 testing services we offer and for such outsourced services generally, our
 ability to maintain a high capacity utilization rate relative to our fixed
 costs, competition in our industry, and other reasons.  For a discussion of
 these and other factors which may cause our results to differ materially from
 our forward-looking statements, please read the discussion of these risks in
 the documents we filed from time to time with Securities and Exchange
 Commission, including our Prospectus on Form F1 and F4 filed Sept. 27, 2000
 and our Current Reports on Form 6-K filed Feb. 26, 2001, Dec. 27 and Oct. 30,
 2000.
 
                       Supplemental Financial Information
 
     Assembly Operations
     Amounts in NT$ Millions         1Q/01      1Q/00     4Q/00
     Net Revenue                     8,142      8,378     9,844
     End Application by Revenue
     Communication                     34%        41%       38%
     Computer                          30%        42%       25%
     Automotive and Consumers          35%        15%       36%
     Others                             1%         2%        1%
 
     Package Type by Revenue
     BGA                               52%        42%       43%
     QFP                               27%        33%       35%
     PDIP, PLCC, Sos                   12%        16%       15%
     Others                             9%         9%        7%
 
     Capacity
     CapEx (US$ Millions)              26         82        64
     Number of Wirebonders          3,909      3,061     3,973
 
     Testing Operations
     Amounts in NT$ Millions            1Q/01    1Q/00    4Q/00
     Net Revenue                        3,106    2,776    3,540
     End Application by Revenue
     Communication                     37%        30%       28%
     Computer                          28%        34%       23%
     Automotive and Consumers          33%        26%       43%
     Others                             2%        10%        6%
 
     Testing Type by Revenue
     Logic and Mixed Signal            97%        99%       97%
     Memory                             3%         1%        3%
 
     Capacity
     CapEx (US$ Millions)              27         98       107
     Number of Testers              1,059        773     1,029
 
 
                    Advanced Semiconductor Engineering, Inc.
                  Consolidated Summary Income Statements Data
                    (In NT$ millions, except per share data)
                                  (Unaudited)
 
                                    For the three months ended
                                   Mar. 31    Mar. 31   Dec. 31
                                     2001      2000      2000
     Net revenues:
      Assembly                      8,142      8,379     9,844
      Testing                       3,106      2,776     3,539
      Others                            2          7         9
     Total net revenues            11,250     11,162    13,392
 
     Cost of revenues               8,867      7,672     9,464
     Gross Profit                   2,383      3,490     3,928
 
     Operating expenses:
      Research and development        364        240       410
      Selling, general and
       administrative               1,051        996     1,110
      Total operating expenses      1,415      1,236     1,520
     Operating income                 968      2,254     2,408
 
     Other (income) expenses:
      Interest expenses, net          411        456       363
      Foreign currency loss (gain),
       net                           (264)      (250)     (152)
      Loss (gain) on long-term
       investment*                    285         19       327
      Loss (gain) on dispose
       of assets                        8         14       (18)
      Other non-operating expenses   (154)        68      (126)
      Total non-operating expenses    286        307       394
     Income before income tax         682      1,947     2,014
 
     Income tax expense (credit)      156        240       247
     Net income before minority
      interest                        526      1,707     1,767
 
     Minority interest                174        243       473
     Net income                       352      1,464     1,294
 
     Per share data:
      EPS - Basic                 NT$0.13    NT$0.55   NT$0.48
      EPS - Fully Diluted         NT$0.12    NT$0.54   NT$0.47
 
      Earnings per ADS - Basic   US$0.020   US$0.090  US$0.075
      Earnings per ADS -
       Fully Diluted             US$0.019   US$0.087  US$0.072
 
     Number of weighted average
      shares used in the EPS
       calculation (in thousands,
        retroactively adjusted
         for stock dividend)    2,752,000  2,651,676  2,677,603
 
     Forex (NT$ per US$1)           32.61      30.76      32.17
 
     * As a result of the recently announced debt restructuring of the Asia
 Pulp and paper ("APP") group of companies, ASE Inc. is revising its unaudited
 consolidated financial statement for the year ended December 31, 2000, to
 include a provision for loss of NT$236 million reflecting the impairment in
 the value of certain bonds issued by the APP Global Finance Limited and held
 by the Company as a long-term investment.  As a result of the revision, the
 Company's unaudited consolidated net income for the year ended December 31,
 2000, was NT$5,837 million, compared to NT$6,073 million without the provision
 for loss.
 
 
                    Advanced Semiconductor Engineering, Inc.
                    Consolidated Summary Balance Sheet Data
                               (In NT$ millions)
                                  (Unaudited)
 
                                  As of Mar. 31,   As of Dec. 31,
                                      2001            2000
     Current assets:
      Cash and cash equivalents      12,775          14,166
      Short-term investments          1,685           1,683
      Notes and accounts receivable   9,511           9,261
      Inventories                     2,879           3,246
      Others                          2,575           2,432
      Total                          29,425          30,788
 
     Long-term investments           10,652          10,712
     Properties - net                60,600          60,566
     Other assets                     7,063           6,275
     Total assets                   107,740         108,341
 
     Current liabilities:
      Short-term debts               13,512          13,765
      Notes and accounts payable      3,347           3,860
      Others                          6,460           8,246
      Total                          23,319          25,871
 
     Long-term debts                 26,588          25,979
      Other liabilities               1,538             760
      Total liabilities              51,445          52,610
 
     Minority interest               12,253          12,062
 
     Shareholders' equity            44,042          43,669
     Total liabilities &
      shareholders' equity          107,740         108,341
 
 
 SOURCE  Advanced Semiconductor Engineering, Inc.