TAIPEI, Taiwan, April 30 /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 (1) of NT$24,695 million for the first quarter of 2008
(1Q08), up 17% year-over-year and down 15% sequentially. Net income
for the quarter totaled NT$2,337 million, up from NT$1,661 million
in 1Q07 and down from NT$3,704 million in 4Q07. Diluted earnings
per share for the quarter was NT$0.43 (or US$0.067 per ADS),
compared to NT$0.31 for 1Q07 and NT$0.66 for 4Q07. RESULTS OF
OPERATIONS 1Q08 Results Highlights -- Net revenues contribution
from IC packaging operations (including module assembly), testing
operations, and substrates sold to third parties were NT$19,227
million, NT$4,895 million and NT$573 million, respectively, and
each represented approximately 78%, 20% and 2% respectively, of
total net revenues for the quarter. -- Cost of revenues was
NT$18,507 million, up 15% year-over-year and down 6% sequentially.
-- As a percentage of total net revenues, cost of revenues was 75%
in 1Q08, down from 76% in 1Q07 and up from 68% in 4Q07. -- Raw
material cost totaled NT$7,301 million during the quarter,
representing 30% of total net revenues, compared with NT$8,004
million and 28% of net revenues in the previous quarter. --
Depreciation, amortization and rental expenses totaled NT$3,930
million during the quarter, down 2% year-over-year and down 5%
sequentially. -- Total labor cost amounted to NT$3,935 million in
1Q08 including the accrual of the bonus to employees, directors and
supervisors totaled NT$220 million. -- Total operating expenses
during 1Q08 were NT$2,836 million, including NT$1,096 million in
R&D and NT$1,740 million in SG&A. Compared with operating
expense of NT$2,730 million in 4Q07, the sequential increase was
primarily attributable to the accrual of the bonus to employees,
directors and supervisors totaled NT$181 million. Total operating
expenses as a percentage of net revenues for the current quarter
were 12%, up from 11% in 1Q07 and 9% in 4Q07. -- Operating profit
for the quarter totaled NT$3,352 million, down from NT$6,529
million in the previous quarter. Operating margin decreased from
23% in 4Q07 to 14% in 1Q08. -- In terms of non-operating items, --
Net interest expense was NT$275 million, down from NT$293 million a
quarter ago. -- Net exchange gain of NT$301 million was primarily
attributable to the exchange gain from the appreciation of the
Renminbi against the U.S. dollar. -- Gain on long-term investment
of NT$104 million was primarily attributable to investment income
of NT$113 million from USI and investment loss of NT$9 million from
Hung Ching Construction. -- Other non-operating expenses of NT$199
million were primarily related to loss from inventory provision
adjustment and other miscellaneous expenses. Together with other
non-operating expenses, total non-operating expenses for the
quarter were NT$69 million, compared to NT$501 million for 1Q07 and
NT$873 million for 4Q07. -- Income before tax was NT$3,283 million
for 1Q08, compared with NT$5,656 million in the previous quarter.
We recorded an income tax expense of NT$411 million during the
quarter, compared with an income tax expense of NT$1,165 million in
4Q07. Minority interest was NT$535 million for 1Q08. -- In 1Q08,
net income was NT$2,337 million, compared to net income of NT$1,661
million for 1Q07 and NT$3,704 million for 4Q07. -- Our total number
of shares outstanding at the end of the quarter was 5,255,439,976,
excluding treasury stock. Our diluted EPS for 1Q08 was NT$0.43, or
US$0.067 per ADS, based on 5,460,822,062 weighted average number of
shares outstanding in 1Q08. LIQUIDITY AND CAPITAL RESOURCES -- As
of March 31, 2008, our cash and other financial assets totaled
NT$29,127 million, compared to NT$28,216 million on December 31,
2007. -- Capital expenditures in 1Q08 totaled US$123 million, of
which US$78 million was for IC packaging, US$44 million was for
testing, and US$1 million was for interconnect materials. -- As of
March 31, 2008, we had total bank debts of NT$38,794 million,
compared to NT$39,710 million as of December 31, 2007. Total bank
debts consisted of NT$10,573 million of revolving working capital
loans, NT$6,060 million of current portion of long-term debts,
NT$1,375 million of current portion of bonds payable, NT$16,602
million of long-term debts and NT$4,184 million of long-term bonds
payable. Total unused credit lines were NT$64,518 million. --
Current ratio as of March 31, 2008 was 1.57, compared to 1.59 as of
December 31, 2007 and net debt to equity ratio was 0.11 as of March
31, 2008. -- Total number of employees was about 29,393 as of March
31, 2008. BUSINESS REVIEW IC Packaging Services (2) -- Net revenues
generated from our IC packaging operations were NT$19,227 million
during the quarter, up by NT$2,944 million or 18% year-over- year
and down by NT$3,334 million or 15% sequentially. On a sequential
basis, the decrease in packaging net revenue was primarily due to a
decrease in sales volume. -- Net revenues from advanced substrate
and leadframe-based packaging accounted for 84% of total IC
packaging net revenues during the quarter, up by 1 percentage point
compared with the previous quarter. -- Gross margin for our IC
packaging operations was 21%, relatively unchanged compared with a
year ago and down by 7 percentage points sequentially. -- Capital
expenditure for our IC packaging operations amounted to US$78
million during the quarter, of which US$37 million was for
wirebonding packaging capacity, and US$41 million was for wafer
bumping and flip chip packaging equipment. -- As of March 31, 2008,
there were 8,126 wirebonders in operation, of which 223 wirebonders
were added and 100 wirebonders were disposed of during the quarter.
-- Net revenues from flip chip packages and wafer bumping services
accounted for 9% of total packaging net revenues, down by 1
percentage point from the previous quarter. Testing Services -- Net
revenues generated from our testing operations were NT$4,895
million, up by NT$571 million or 13% year-over-year and down by
NT$781 million or 14% sequentially. -- Final testing contributed
77% to total testing net revenues, up by 1 percentage point
sequentially. Wafer sort contributed 19% to total testing net
revenues, down by 3 percentage points from the previous quarter.
Engineering testing contributed 4% to total testing net revenues,
up by 2 percentages point from the previous quarter. --
Depreciation, amortization and rental expense associated with our
testing operations amounted to NT$1,455 million, down from NT$1,581
million in 1Q07 and NT$1,538 million in 4Q07. -- In 1Q08, gross
margin for our testing operations was 37%, up by 8 percentage
points year-over-year and down by 8 percentage points sequentially.
-- Capital spending on our testing operations amounted to US$44
million during the quarter. -- As of March 31, 2008, there were
1,555 testers in operations, of which 79 testers were added and 58
testers were disposed of during the quarter. Substrate Operations
-- PBGA substrate manufactured by ASE amounted to NT$2,068 million
for the quarter, up by NT$352 million or 21% from a year-ago
quarter, and down by NT$462 million or 18% from the previous
quarter. Of the total output of NT$2,068 million, NT$573 million
was from sales to external customers. -- Gross margin for substrate
operations was 15% during the quarter, down by 4 percentage points
from a year ago quarter and down by 5 percentage points from the
previous quarter. -- In 1Q08, the Company's internal substrate
manufacturing operations supplied 59% (by value) of our total
substrate requirements. -- As of March 31, 2008, the Company's PBGA
capacity was at 48 million units per month. Customers -- Our five
largest customers together accounted for approximately 27% of our
total net revenues in 1Q08, compared to 27% in 1Q07 and 23% in
4Q07. No single customer accounted for more than 10% of our total
net revenues. -- Our top 10 customers contributed 45% of our total
net revenues during the quarter, compared to 42% in 1Q07 and 4Q07.
-- Our customers that are integrated device manufacturers, or IDMs,
accounted for 42% of our total net revenues during the quarter,
compared to 43% in 1Q07 and 42% in 4Q07. 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. Note 2: IC packaging services include module
assembly services. About ASE, Inc. ASE, Inc. is the world's largest
independent provider of IC packaging services and, together with
its subsidiary ASE Test Limited (NASDAQ:ASTSF), the world's largest
independent provider of IC 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; 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 2006 Annual Report on Form 20-F
filed on June 25, 2007, as amended. Supplemental Financial
Information Consolidated Operations Amounts in NT$ Millions 1Q/08
4Q/07 1Q/07 Net Revenues 24,695 28,976 21,093 Revenues by End
Application Communication 45% 43% 45% Computer 25% 25% 21%
Automotive and Consumers 30% 31% 32% Others 0% 1% 2% IC Packaging
Services Amounts in NT$ Millions 1Q/08 4Q/07 1Q/07 Net Revenues
19,227 22,561 16,283 Revenues by Packaging Type Advanced substrate
& leadframe based 84% 83% 83% Traditional leadframe based 4% 4%
5% Module assembly 5% 6% 8% Others 7% 7% 4% Capacity CapEx (US$
Millions) * 78 97 33 Number of Wirebonders 8,126 8,003 7,050
Testing Services Amounts in NT$ Millions 1Q/08 4Q/07 1Q/07 Net
Revenues 4,895 5,676 4,324 Revenues by Testing Type Final test 77%
76% 78% Wafer sort 19% 22% 17% Engineering test 4% 2% 5% Capacity
CapEx (US$ Millions) * 44 60 43 Number of Testers 1,555 1,534 1,365
* 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 ended Mar. 31 Dec. 31 Mar. 31 2008
2007 2007 Net revenues: IC Packaging 19,227 22,561 16,283 Testing
4,895 5,676 4,324 Others 573 739 486 Total net revenues 24,695
28,976 21,093 Cost of revenues 18,507 19,717 16,096 Gross profit
6,188 9,259 4,997 Operating expenses: Research and development
1,096 1,128 689 Selling, general and administrative 1,740 1,602
1,537 Total operating expenses 2,836 2,730 2,226 Operating income
3,352 6,529 2,771 Net non-operating (income) expenses: Interest
expenses - net 275 293 354 Foreign exchange gain (301) (198) (19)
Gain on long-term investment (104) (96) (76) Others 199 874 242
Total non-operating expenses 69 873 501 Income before tax 3,283
5,656 2,270 Income tax expense 411 1,165 320 Income from continuing
operations and minor interest 2,872 4,491 1,950 Minority interest
535 787 289 Net income 2,337 3,704 1,661 Per share data: Earnings
(loss) per share - Basic NT$0.44 NT$0.71 NT$0.32 - Diluted NT$0.43
NT$0.66 NT$0.31 Earnings (loss) per pro forma equivalent ADS -
Basic US$0.070 US$0.109 US$0.049 - Diluted US$0.067 US$0.102
US$0.048 Number of weighted average shares used in diluted EPS
calculation (in thousands) 5,460,822 5,559,851 5,456,471 Exchange
rate (NT$ per US$1) 31.74 32.44 32.78 Advanced Semiconductor
Engineering, Inc. Summary of Consolidated Balance Sheet Data (In
NT$ millions) (Unaudited) As of Mar. 31, As of Dec. 31, 2008 2007
Current assets: Cash and cash equivalents 16,589 17,158 Financial
assets - current 12,538 11,058 Notes and accounts receivable 16,732
18,748 Inventories 5,439 5,597 Others 4,574 4,341 Total current
assets 55,872 56,902 Financial assets - non current 4,818 4,850
Properties - net 81,297 81,788 Others 9,118 8,837 Total assets
151,105 152,377 Current liabilities: Short-term debts - revolving
credit 10,573 9,072 Short-term debts - current portion of long-term
debts 6,060 5,327 Short-term debts - current portion of bonds
payable 1,375 1,375 Notes and accounts payable 7,762 9,242 Others
9,785 10,735 Total current liabilities 35,555 35,751 Long-term
debts 16,602 18,046 Long-term bonds payable 4,184 5,890 Other
liabilities 2,949 2,950 Total liabilities 59,290 62,637 Minority
interest 14,958 14,567 Shareholders' equity 76,857 75,173 Total
liabilities & shareholders' equity 151,105 152,377 Current
Ratio 1.57 1.59 Net Debt to Equity 0.11 0.13 Contact: ASE, Inc.
Tel: +886-2-8780-5489 Fax: +886-2-2757-6121
http://www.aseglobal.com/ Joseph Tung, CFO / Vice President Freddie
Liu, Vice President Email: Clare Lin, Director (US Contact) Tel:
+1-408-986-6524 DATASOURCE: Advanced Semiconductor Engineering,
Inc. CONTACT: Joseph Tung, CFO and Vice President, or Freddie Liu,
Vice President, both of ASE, Inc., ; or US Contact, Clare Lin,
Director, +1-408-986-6524, Web site: http://www.aseglobal.com/
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