TAIPEI, Taiwan, Oct. 31 /Xinhua-PRNewswire-FirstCall/ -- Advanced
Semiconductor Engineering, Inc. (TAIEX: 2311; NYSE: ASX) ("We",
"ASE", or the "Company"), the world's largest independent provider
of IC packaging and testing services, today reported unaudited net
revenues (Note 1) of NT$25,815 million for the third quarter of
2008 (3Q08), down 7% year-over-year and up 1% sequentially. Net
income for the quarter totaled NT$2,212 million, down from NT$4,225
million in 3Q07 and down from NT$2,412 million in 2Q08. Diluted
earnings per share for the quarter was NT$0.41 (or US$0.066 per
ADS), compared to NT$0.76 for 3Q07 and NT$0.42 for 2Q08. 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 review 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 3Q08
Results Highlights -- Net revenue contribution from IC packaging
operations (including module assembly), testing operations, and
substrates sold to third parties was NT$20,127 million, NT$5,195
million and NT$493 million, respectively, and each represented
approximately 78%, 20% and 2%, respectively, of total net revenues
for the quarter. -- Cost of revenues was NT$19,186 million, down 1%
year-over-year and up 1% sequentially. -- As a percentage of total
net revenues, cost of revenues was 74% in 3Q08, up from 70% in 3Q07
and down from 75% in 2Q08. -- Raw material cost totaled NT$7,370
million during the quarter, representing 29% of total net revenues,
compared with NT$7,695 million and 30% of net revenues in the
previous quarter. -- Depreciation, amortization and rental expenses
totaled NT$4,169 million during the quarter, up 2% year-over-year
and up 5% sequentially. -- Total operating expenses during 3Q08
were NT$2,733 million, including NT$925 million in R&D and
NT$1,808 million in SG&A, compared with operating expenses of
NT$2,928 million in 2Q08. The sequential decrease was primarily
attributable to bonuses paid to employees and compensation to
directors and supervisors of one of our subsidiaries in 2Q08. Total
operating expenses as a percentage of net revenues for the current
quarter were 11%, up from 8% in 3Q07 and relatively unchanged
compared to 2Q08. -- Operating profit for the quarter totaled
NT$3,896 million, up from NT$3,584 million in the previous quarter.
Operating margin increased to 15% in 3Q08 from 14% in 2Q8. -- In
terms of non-operating items: -- Net interest expense was NT$421
million, up from NT$268 million a quarter ago primarily due to an
increase in total bank loans. -- Net exchange loss of NT$146
million was primarily attributable to exchange losses from the
appreciation of the the U.S. dollar against the N.T. dollar. --
Gain on equity-method investment of NT$69 million was primarily
attributable to investment gain of NT$44 million from USI and
investment gain of NT$27 million from Hung Ching Construction. --
Other non-operating expenses of NT$244 million were primarily
related to valuation loss from financial assets and loss from
inventory provision adjustment. Together with other non-operating
expenses, total non-operating expenses for the quarter were NT$742
million, compared to NT$280 million for 3Q07 and NT$22 million for
2Q08. -- Income before tax was NT$3,154 million for 3Q08, compared
with NT$3,562 million in the previous quarter. We recorded an
income tax expense of NT$777 million during the quarter, compared
with an income tax expense of NT$779 million in 2Q08. Minority
interest was NT$165 million for 3Q08, down from NT$371 million in
the previous quarter, primarily due to the completion of the ASE
Test privatization transaction at the end of May. -- In 3Q08, net
income was NT$2,212 million, compared to net income of NT$4,225
million for 3Q07 and NT$2,412 million for 2Q08. -- Our total number
of shares outstanding at the end of the quarter was 5,681,934,764
shares, including treasury stock. Our diluted EPS for 3Q08 was
NT$0.41, or US$0.066 per ADS, based on 5,403,832,355 weighted
average number of shares outstanding in 3Q08. LIQUIDITY AND CAPITAL
RESOURCES -- As of September 30, 2008, our cash and other financial
assets totaled NT$28,485 million, compared to NT$32,648 million as
of June 30, 2008. -- Capital expenditures in 3Q08 totaled US$98
million, of which US$53 million was used for IC packaging and US$45
million was used for testing. -- As of September 30, 2008, we had
total bank debts of NT$66,367 million, compared to NT$64,687
million as of June 30, 2008. Total bank debts consisted of
NT$10,956 million of revolving working capital loans, NT$2,958
million of the current portion of long-term debts, NT$1,375 million
of current portion of bonds payable and NT$51,078 million of
long-term debts. Total unused credit lines were NT$68,732 million.
-- Current ratio as of September 30, 2008 was 1.62, compared to
1.24 as of June 30, 2008. Net debt to equity ratio was 0.51 as of
September 30, 2008. -- Total number of employees was 30,511 as of
September 30, 2008. Business Review IC Packaging Services (Note 2)
-- Net revenues generated from our IC packaging operations were
NT$20,127 million during the quarter, down NT$1,517 million, or 7%
year-over-year, and up NT$94 million, or 1% sequentially. -- Net
revenues from advanced substrate and leadframe-based packaging
accounted for 89% of total IC packaging net revenues during the
quarter, which equaled to the previous quarter. -- Gross margin for
our IC packaging operations was 21%, down 5% year- over-year and
unchanged sequentially. -- Capital expenditures for our IC
packaging operations amounted to US$53 million during the quarter,
of which US$39 million was used for wirebonding packaging capacity
and US$14 million was used for wafer bumping and flip chip
packaging equipment. -- As of September 30, 2008, there were 8,436
wirebonders in operation. 17 wirebonders were added and 7
wirebonders were disposed of during the quarter. -- Net revenues
from flip chip packages and wafer bumping services accounted for
15% of total packaging net revenues, up 2 percentage points from
the previous quarter. Note 2: IC packaging services include module
assembly services. Testing Services -- Net revenues generated from
our testing operations were NT$5,195 million, down NT$87 million,
or 2% year-over-year, and up NT$93 million, or 2% sequentially. --
Final testing contributed 80% to total testing net revenues, and
was up 2% from the previous quarter. Wafer sort contributed 18% to
total testing net revenues, down 1 percentage point from the
previous quarter. Engineering testing contributed 2% to total
testing net revenues, down 1 percentage point from the previous
quarter. -- Depreciation, amortization and rental expense
associated with our testing operations amounted to NT$1,593
million, down from NT$1,517 million in 3Q07 and up from NT$1,475
million in 2Q08. -- In 3Q08, gross margin for our testing
operations was 36%, down 5 percentage points year-over-year and
down 2 percentage points sequentially. -- Capital spending on our
testing operations amounted to US$45 million during the quarter. --
As of September 30, 2008, there were 1,638 testers in operation. 71
testers were added and 55 testers were disposed of during the
quarter. Substrate Operations -- PBGA substrate manufactured by ASE
amounted to NT$2,281 million for the quarter, down NT$331 million,
or 13% year-over-year, and up NT$120 million, or 6% from the
previous quarter. Of the total output of NT$2,281 million, NT$493
million was from sales to external customers. -- Gross margin for
substrate operations was 20% during the quarter, down 4 percentage
points year-over-year and up 5 percentage points from the previous
quarter. -- In 3Q08, the Company's internal substrate manufacturing
operations supplied 62% (by value) of our total substrate
requirements. -- As of September 30, 2008, the Company's PBGA
capacity was 52 million units per month. Customers -- Our five
largest customers together accounted for approximately 27% of our
total net revenues in 3Q08, compared to 26% in 3Q07 and 28% in
2Q08. No single customer accounted for more than 10% of our total
net revenues. -- Our top 10 customers contributed 46% of our total
net revenues during the quarter, compared to 43% in 3Q07 and 47% in
2Q08. -- Our customers that are integrated device manufacturers, or
IDMs, accounted for 40% of our total net revenues during the
quarter, compared to 39% in 3Q07 and 41% in 2Q08. 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., CSR plc,
Freescale Semiconductor, Inc., MediaTek Inc., NEC Corporation,
NVIDIA Corporation, NXP Semiconductors, Qualcomm Incorporated, RF
Micro Devices Inc., STMicroelectronics N.V. and VIA Technologies,
Inc. With advanced technological capabilities and a global presence
spanning Taiwan, Korea, Japan, Singapore, Malaysia and the United
States, ASE, Inc. has established a reputation for reliable, high
quality products and services. For more information, visit our
website at http://www.aseglobal.com/. Safe Harbor Notice This 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 press release. We were not involved in the
preparation of these projections. 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 press release. 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; international
business activities; our business strategy; our future expansion
plans and capital expenditures; the strained relationship between
the ROC and the PRC; general economic and political conditions,
including the recent global financial crisis; possible disruptions
in commercial activities caused by natural or human-induced
disasters; 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 2007 Annual
Report on Form 20-F filed on June 30, 2008, as amended. -- Tables
to Follow -- Supplemental Financial Information Consolidated
Operations Amounts in NT$ Millions 3Q/08 2Q/08 3Q/07 Net Revenues
25,815 25,610 27,733 Revenues by End Application Communication 44%
45% 44% Computer 23% 24% 22% Automotive and Consumer 33% 31% 33%
Others 0% 0% 1% Revenues by Region North America 55% 53% 49% Europe
15% 13% 13% Taiwan 18% 22% 22% Japan 9% 8% 8% Other Asia 3% 4% 8%
IC Packaging Services Amounts in NT$ Millions 3Q/08 2Q/08 3Q/07 Net
Revenues 20,127 20,033 21,644 Revenues by Packaging Type Advanced
substrate & leadframe based 89% 89% 88% Traditional leadframe
based 4% 4% 4% Module assembly 4% 4% 5% Others 3% 3% 3% Capacity
CapEx (US$ Millions) * 53 71 83 Number of Wirebonders 8,436 8,426
7,649 Testing Services Amounts in NT$ Millions 3Q/08 2Q/08 3Q/07
Net Revenues 5,195 5,102 5,282 Revenues by Testing Type Final test
80% 78% 76% Wafer sort 18% 19% 21% Engineering test 2% 3% 3%
Capacity CapEx (US$ Millions) * 45 56 55 Number of Testers 1,638
1,622 1,580 * Capital expenditure amounts exclude building
construction costs. Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Income Statements Data (In NT$ millions,
except per share data) (Unaudited) For the three months For the
period ended ended Sep. 30 Jun. 30 Sep. 30 Sep. 30 Sep. 30 2008
2008 2007 2008 2007 Net revenues: IC Packaging 20,127 20,033 21,644
59,387 55,956 Testing 5,195 5,102 5,282 15,191 14,331 Others 493
475 807 1,541 1,901 Total net revenues 25,815 25,610 27,733 76,119
72,188 Cost of revenues 19,186 19,098 19,303 56,790 52,358 Gross
profit 6,629 6,512 8,430 19,329 19,830 Operating expenses: Research
and development 925 980 748 3,002 2,157 Selling, general and
administrative 1,808 1,948 1,573 5,495 4,905 Total operating
expenses 2,733 2,928 2,321 8,497 7,062 Operating income 3,896 3,584
6,109 10,832 12,768 Net non-operating (income) expenses: Interest
expenses -- net 421 268 273 964 932 Foreign exchange gain 146 (294)
(39) (449) (205) Gain on equity-method investment (69) (28) (111)
(202) (250) Others 244 76 157 520 595 Total non-operating expenses
742 22 280 833 1,072 Income before tax 3,154 3,562 5,829 9,999
11,696 Income tax expense 777 779 1,008 1,968 2,193 Income from
continuing operations and before minor interest 2,377 2,783 4,821
8,031 9,503 Minority interest 165 371 596 1,071 1,042 Net income
2,212 2,412 4,225 6,960 8,461 Per share data: Earnings (loss) per
share -- Basic NT$0.41 NT$0.44 NT$0.78 NT$1.29 NT$1.57 -- Diluted
NT$0.41 NT$0.42 NT$0.76 NT$1.26 NT$1.53 Earnings (loss) per
equivalent ADS -- Basic US$0.067 US$0.073 US$0.119 US$0.207
US$0.238 -- Diluted US$0.066 US$0.070 US$0.116 US$0.203 US$0.232
Number of weighted average shares used in diluted EPS calculation
(in thousands) 5,403,832 5,663,514 5,596,982 5,489,339 5,617,306
Exchange rate (NT$ per US$1) 30.95 30.36 32.86 31.02 32.91 Advanced
Semiconductor Engineering, Inc. Summary of Consolidated Balance
Sheet Data (In NT$ millions) (Unaudited) As of Sep. 30, As of Jun.
30, 2008 2008 Current assets: Cash and cash equivalents 26,728
23,305 Financial assets - current 1,757 9,343 Notes and accounts
receivable 17,875 17,633 Inventories 5,808 5,598 Others 3,423 3,232
Total current assets 55,591 59,111 Financial assets -- non current
4,554 4,568 Properties -- net 84,953 82,965 Others 16,827 17,676
Total assets 161,925 164,320 Current liabilities: Short-term debts
-- revolving credit 10,956 12,906 Short-term debts -- current
portion of long-term debts 2,958 5,712 Short-term debts -- current
portion of bonds payable 1,375 1,375 Notes and accounts payable
8,868 8,339 Others 10,077 19,492 Total current liabilities 34,234
47,824 Long-term debts 51,078 40,663 Long-term bonds payable 0
4,031 Other liabilities 2,938 2,808 Total liabilities 88,250 95,326
Minority interest 2,843 2,980 Shareholders' equity 70,832 66,014
Total liabilities & shareholders' equity 161,925 164,320
Current Ratio 1.62 1.24 Net Debt to Equity 0.51 0.46 Contact: ASE,
Inc. Joseph Tung, CFO / Vice President Freddie Liu, Vice President
Allen Kan, Manager Tel: +886-2-8780-5489 Fax: +886-2-2757-6121
Email: http://www.aseglobal.com/ US contact: Clare Lin, Director
Tel: +1-408-986-6524 Email: DATASOURCE: Advanced Semiconductor
Engineering, Inc. CONTACT: Joseph Tung, CFO or Vice President, or
Freddie Liu, Vice President, +886-2-8780-5489, or fax,
+886-2-2757-6121, or , or Clare Lin, Director (US Contact),
+1-408-986-6524, or , all of ASE Web Site:
http://www.aseglobal.com/
Copyright