FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
DATED AUGUST 6, 2002
Advanced Semiconductor Engineering, Inc.
(Exact name of Registrant as specified in its charter)
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26 Chin Third Road
Nantze Export Processing Zone
Kaoshiung, Taiwan
Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
FORM 20-F X FORM 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
YES NO X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): Not applicable
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ADVANCED SEMICONDUCTOR
ENGINEERING, INC.
Dated: August 6, 2002 By: /s/ Joseph Tung
------------------------------
Name: Joseph Tung
Title: Chief Financial Officer
Advanced Semiconductor Engineering, Inc. [Logo]
FOR IMMEDIATE RELEASE
Contact:
ASE, Inc. Joseph Tung, CFO / Vice President
Freddie Liu, Assistant Vice President
Room 1901, No. 333, Section 1
Keelung Road, Taipei, Taiwan, 110 Investor_relations@asek.asetwn.com.tw
Tel: + 886-2-8780-5489 http://www.aseglobal.com
Fax: + 886-2-2757-6121
ADVANCED SEMICONDUCTOR ENGINEERING, INC. REPORTS YEAR 2002
SECOND-QUARTER FINANCIAL RESULTS
Taipei, Taiwan, R.O.C., August 6th, 2002 - Advanced Semiconductor Engineering,
Inc. (TAIEX: 2311, NYSE: ASX), ("ASE", or the "Company"), one of the world's
largest independent providers of semiconductor packaging and testing services,
today reported quarterly revenues1 of NT$10,828 million, up 8% sequentially and
up 28% versus a year ago period.
Net income amounted to NT$74 million in the second quarter ended June 1st,
2002. Diluted earnings per share for the quarter was NT$0.02, or US$0.003 per
ADS2.
"ASE's performance in the second quarter was within our expectation." commented
Mr. Jason Chang, Chairman of ASE. "Despite the weakness in PC sector in the
second quarter, it was mitigated by our well-balanced exposure in all 3C areas.
We have witnessed volume increases in the wireless communication area, and the
consumer sector continued to demonstrate steady growth. Even though visibility
remains low as we enter into the second half of the year, we remain confident
in achieving sequential quarterly growth given our wide customer base and the
accelerated outsourcing in IC backend manufacturing."
Dr. Leonard Liu, President of ASE Group further commented: "In addition to
continuously developing leading edge technologies and processes through our
internal efforts, we also made significant progress in teaming up with our
customers and complimentary service providers to align our technology roadmap
with those of the semiconductor industry leaders. The outsourcing trend in the
IC assembly and test business is currently driven by the availability of
leading edge technology and capacity of the independent service providers, as
well as their capability to deliver total turn-key solutions. We are striving
to redefine the business model of IC backend manufacturing services by
providing the most advanced and complete manufacturing solutions to our
customers, and we believe that ASE is equipped with all the critical
capabilities to drive the change,"
CONSOLIDATED FINANCIAL RESULTS
o Net revenues amounted to NT$10,828 million, up 8% sequentially and up 28%
versus year ago quarter.
o The revenue contribution can be broken down into - NT$8,437 million from
assembly operations, NT$2,390 million from testing operations, and NT$1
million from other miscellaneous sales.
o Costs of goods sold were NT$9,212 million and included NT$2,810 in
depreciation expenses. Gross profit for the quarter was NT$1,616 million,
representing a gross margin of 15%, up three percentage points
sequentially.
--------
1 All financial information is in accordance with generally accepted accounting
principles in the Republic of China and was unaudited.
2 One ADS is equal to 5 shares of the Company.
1
Advanced Semiconductor Engineering, Inc. [Logo]
o Total operating expenses were NT$1,612 million, including NT$494 million
in research and development expenses. Goodwill amortization related to the
acquisition of consolidated entities was NT$202 million. Selling, general
and administrative expenses totaled NT$1,118 million.
o Net interest expense for the quarter was NT$344 million. Foreign exchange
loss amounted to NT$262 million, as a result of the appreciation of the NT
dollars, which had a negative impact on our US dollar-denominated
deposits. On the other hand, the relatively weakness of the NT dollars
versus the Japanese Yen also has a negative impact on our Yen-denominaed
liabilities.
o The Company recognized an investment loss of NT$73 million from its
minority-owned affiliates, including NT$49 million from Hung Ching
Construction and NT$24 million from other invested companies. The company
also recorded an investment income of NT$42 million from Universal
Scientific Industrial Co., LTD. ("USI). The goodwill amortization related
to non-consolidated affiliates of NT$56 million remained unchanged
compared to previous quarter.
o Loss before tax was NT$379 million. The Company recognized an income tax
benefit of NT$204 million during the quarter.
o Minority income adjustment for the quarter amounted to NT$249 million.
o Effective January 1st, 2002, ROC GAAP requires that the Company's stocks
held and owned by its subsidiaries be presented as treasury stocks. As a
result of this GAAP change, total number of outstanding shares used in
calculating the Company's EPS has reduced from 3,254,800,000 shares to
3,090,678,000 shares, reflecting a deduction of 164,122,000 shares
representing Company's stock held by its subsidiaries. After adjusting for
this GAAP change, the Company's loss per share for the first quarter of
2002 was NT$0.07, or a loss per ADS of US$0.011. The Company's earnings
per share for the second quarter of 2002 was NT$0.02, or US$0.003 per ADS.
o Capital expenditures in Q2 2002 totaled US$103 million. The breakdown of
the capital expenditures by operations is as follows: US$64 million for
assembly operations, US$26 million for testing operations and US$13
million for material manufacturing operations. The entire capital
expenditure was for advanced assembly, test and substrate capacity and
technology upgrades.
o EBITDA for the quarter totaled NT$3,430 million. As of June 30, 2002, the
Company had cash on hand of NT$7,638 million, as compared to NT$10,080
million as of March 31, 2002. The decrease in our cash position was mainly
due to the sinking fund requirement in connection with the Company's Euro
Convertible Bond due in November 2002, as well as the repayment of certain
of the company's long term debt. Total bank debt amounted to NT$39,840
million, of which NT$23,786 million constituted long term financing.
BUSINESS REVIEW
Assembly Operation
------------------
o Revenues generated from the Company's assembly operation were NT$8,437
million, up 8% sequentially and an increase of 34% year-over-year.
o Total assembly volume reached 57.7 billion pins, up 6% from the previous
quarter and up 49% year-over-year.
o Average selling price (ASP) per pin increased 2% sequentially, and down
13% year-over-year. o Fine pitch assembly (bonding pad pitch below 60
micron) comprised 51% of total assembly revenues, down from 54%
sequentially and up from 46% year-over-year.
o BGA revenues comprised 47% of total assembly revenues, down from 54% from
the previous quarter and down from 49% from one year ago. The decrease in
the percentage of BGA revenue was mainly due to the relative weakness in
the PC sector as most high-end chipsets and graphic chips for PCs use BGA
packages. The average number of pins per unit for the BGA packages was 238
in Q2 2002, compared to 284 pins in Q1 2002 and 210 in Q2 2001.
o Volume from advanced leadframe based packages, including Low-profile Quad
Flat Package (LQFP) and Thermal-enhanced Quad Flat Package (TQFP)
increased 20%
2
Advanced Semiconductor Engineering, Inc. [Logo]
sequentially and 88% year-over-year. Revenues from QFP, LQFP and TQFP
packages accounted for 35% of total assembly revenues, up from 28% from
the previous quarter and also 29% a year ago.
o Gross margin of the assembly operations was 18%, up two percentage points
sequentially and up six percentage points year-over-year.
o The average utilization rate of the assembly operation was around 65% to
70%. The fine pitch assembly capacity operated at near-full utilization.
o Capital spending on the assembly operations amounted to US$64 million, of
which US$55 million was for the wirebonding assembly capacity, and US$9
million was for wafer bumping and flip chip assembly capacity.
o As of June 30, 2002, there were 4,040 wirebonders in operations, of which
2,540 wirebonders were capable of performing fine pitch wirebonding
services. A total of 237 wirebonders were purchased and delivered during
the second quarter of 2002.
Testing Operations
------------------
o Revenues generated from the Company's testing operation were NT$2,390
million, up 7% sequentially and up 8% year-over-year.
o Of the total testing revenues, 86% was contributed by the Company's final
test operation, 6% by the wafer sort operation, and 8% by the engineering
test operation.
o Testing volume (in terms of test time) increased around mid-ten percent
sequentially, whereas ASP declined in the mid-single digit percentage.
o Gross margin of the test operation was 6%, compared to negative 2% in the
previous quarter and 5% in the second quarter of 2001.
o The average utilization rate of the testing operation was approximately
60%, with higher utilization rates on advanced tester platforms.
o As of June 30, 2002, the Company operated a total of 1,048 testers.
Material Operations
-------------------
o Materials revenues were NT$724 million for the quarter and consisted of
NT$228 million in QFP leadframe and NT$496 million in PBGA substrates.
Leadframe revenue grew 13% compared to the previous quarter as a result of
stronger demand in the high-end etching QFP leadframe packages. PBGA
substrate revenues declined 19%, reflecting the decreased volume in BGA
packages. The materials revenues were not reflected in the Company's
consolidated revenues since they were inter-company sales transaction.
Highlights
----------
o ASE and MTBS to jointly develop next generation Large Silicon Flip Chip
Package.
o ASE Hosts Third-Annual Tech Forum on Semiconductor Packaging and Test.
o ASE to collaborate with IBM on next generation flip chip packaging
technology.
o ISE Offers Semiconductor Companies Worldwide Remote Access to Broad Range
of Test Platforms.
o ASE Advances in Fine Pitch Wire Bonding Technology.
3
Advanced Semiconductor Engineering, Inc. [Logo]
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements
are forward-looking, and actual results may differ materially. Economic and
industry conditions remain uncertain, and continue to make it particularly
difficult to forecast product demand.
The Company expects
o consolidated revenues to grow by mid-single digit percentage points
sequentially
o gross margin to improve by low-single digit percentage points sequentially
o operating margin to be at a low-single digit percentage
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
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. 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. 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 the highly competitive nature of the semiconductor
industry, our ability to introduce new packaging and testing technologies in
order to remain competitive, our ability to successfully integrate future
acquisitions, risks associated with international business activities, our
business strategy, general economic and political conditions, possible
disruptions in commercial activities caused by natural disasters or industrial
accidents, our future expansion plans and capital expenditures, and
fluctuations in foreign currency exchange rates. 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 Annual Report on
Form 20-F filed on June 28, 2002.
##
4
Supplemental Financial Information
Consolidated Operations
-----------------------------------------------------------------------------
Amounts in NT$ Millions 2Q/02 1Q/02 2Q/01
-----------------------------------------------------------------------------
Net Revenues 10,828 10,044 8,483
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Revenues by End Application
-----------------------------------------------------------------------------
Communication 32% 32% 39%
-----------------------------------------------------------------------------
Computer 33% 39% 33%
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Automotive and Consumers 34% 27% 28%
-----------------------------------------------------------------------------
Others 1% 2% 0%
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Revenues by Region
-----------------------------------------------------------------------------
North America 63% 63% 66%
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Europe 6% 4% 4%
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Taiwan 22% 27% 26%
-----------------------------------------------------------------------------
Japan 1% 1% 2%
-----------------------------------------------------------------------------
Other Asia 8% 5% 2%
-----------------------------------------------------------------------------
Assembly Operations
-----------------------------------------------------------------------------
Amounts in NT$ Millions 2Q/02 1Q/02 2Q/01
-----------------------------------------------------------------------------
Net Revenues 8,437 7,815 6,274
-----------------------------------------------------------------------------
Revenues by End Application
-----------------------------------------------------------------------------
Communication 31% 32% 39%
-----------------------------------------------------------------------------
Computer 35% 42% 34%
-----------------------------------------------------------------------------
Automotive and Consumers 33% 25% 27%
-----------------------------------------------------------------------------
Others 1% 1% 0%
-----------------------------------------------------------------------------
Revenues by Package Type
-----------------------------------------------------------------------------
BGA 47% 54% 49%
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QFP 33% 28% 28%
-----------------------------------------------------------------------------
PDIP, PLCC, Sos 12% 11% 13%
-----------------------------------------------------------------------------
Others 8% 7% 10%
-----------------------------------------------------------------------------
Capacity
-----------------------------------------------------------------------------
CapEx (US$ Millions) * 64 25 34
-----------------------------------------------------------------------------
Number of Wirebonders 4,040 3,882 4,101
-----------------------------------------------------------------------------
Testing Operations
-----------------------------------------------------------------------------
Amounts in NT$ Millions 2Q/02 1Q/02 2Q/01
-----------------------------------------------------------------------------
Net Revenues 2,390 2,227 2,204
-----------------------------------------------------------------------------
Revenues by End Application
-----------------------------------------------------------------------------
Communication 34% 33% 40%
-----------------------------------------------------------------------------
Computer 27% 29% 29%
-----------------------------------------------------------------------------
Automotive and Consumers 35% 35% 30%
-------------------------------------------------------------------------------
Others 4% 3% 1%
-----------------------------------------------------------------------------
Revenues by Testing Type
-----------------------------------------------------------------------------
Final test 86% 83% 81%
-----------------------------------------------------------------------------
Wafer sort 6% 7% 10%
-----------------------------------------------------------------------------
Engineering test 8% 10% 9%
-----------------------------------------------------------------------------
Capacity
-----------------------------------------------------------------------------
CapEx (US$ Millions)* 26 20 16
-----------------------------------------------------------------------------
Number of Testers 1,048 1,036 1,052
-----------------------------------------------------------------------------
* Capital expenditure amounts exclude building construction cost.
5
Advanced Semiconductor Engineering, Inc.
Consolidated Summary Income Statements Data
(In NT$ millions, except per share data)
(Unaudited)
For the three months ended For the six months ended
--------------------------------------- -------------------------
Jun. 30 Mar. 31 Jun. 30 Jun. 30 Jun. 30
2002 2002 2001 2002 2001
Net revenues:
Assembly 8,437 7,815 6,274 16,252 14,416
Testing 2,390 2,227 2,204 4,618 5,310
Others 1 2 5 2 7
--------- --------- ---------- --------- ---------
Total net revenues 10,828 10,044 8,483 20,872 19,733
--------- --------- ---------- --------- ---------
Cost of revenues 9,212 8,796 7,596 18,008 16,463
--------- --------- ---------- --------- ---------
Gross Profit 1,616 1,248 887 2,864 3,270
--------- --------- ---------- --------- ---------
Operating expenses:
Research and development 494 422 355 915 719
Selling, general and administrative 1,118 1,052 1,129 2,170 2,180
--------- --------- ---------- --------- ---------
Total operating expenses 1,612 1,474 1,484 3,085 2,899
--------- --------- ---------- --------- ---------
Operating income (loss) 4 (226) (597) (221) 371
--------- --------- ---------- --------- ---------
Other (income) expenses:
Interest expenses, net 344 444 429 789 840
Foreign currency loss (gain), net 262 3 (69) 265 (333)
Loss (gain) on long-term investment 87 71 148 158 433
Loss (gain) on dispose of assets 32 16 (6) 48 2
Others (342) (143) (185) (485) (339)
--------- --------- ---------- --------- ---------
Total non-operating expenses 383 391 317 775 603
--------- --------- ---------- --------- ---------
Income (loss) before tax (379) (617) (914) (996) (232)
--------- --------- ---------- --------- ---------
Income tax expense (benefit) (204) (109) 90 (313) 246
--------- --------- ---------- --------- ---------
Net income (loss) before minority interest (175) (508) (1,004) (683) (478)
--------- --------- ---------- --------- ---------
Minority interest (249) (278) (386) (526) (212)
Net income 74 (230) (618) (157) (266)
Per share data:
EPS - Basic NT$0.02 NT$(0.07) NT$(0.19) NT$(0.05) NT$(0.08)
EPS - Diluted NT$0.02 NT$(0.07) NT$(0.19) NT$(0.05) NT$(0.08)
Earnings per ADS - Basic US$0.003 US$(0.011) US$(0.029) US$(0.007) US$(0.012)
Earnings per ADS - Diluted US$0.003 US$(0.011) US$(0.029) US$(0.007) US$(0.012)
Number of weighted average shares used in
the EPS calculation (in thousands,
retroactively adjusted for stock dividend) 3,090,678 3,090,678 3,254,800 3,090,678 3,254,800
Forex (NT$ per US$1) 34.61 35.05 33.26 34.83 32.94
6
Advanced Semiconductor Engineering, Inc.
Consolidated Summary Balance Sheet Data
(In NT$ millions)
(Unaudited)
As of As of
Jun. 30, 2002 Mar. 31, 2002
------------- -------------
Current assets:
Cash and cash equivalents ..................... 7,638 10,080
Short-term investments ........................ 3,984 5,344
Notes and accounts receivable ................. 7,691 7,360
Inventories ................................... 2,924 2,641
Others ........................................ 5,807 3,621
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Total ......................................... 28,044 29,046
Long-term investments ........................... 7,938 6,834
Properties - net ................................ 59,694 59,851
Other assets .................................... 7,965 7,449
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Total assets .................................... 103,641 103,180
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Current liabilities:
Short-term debts .............................. 16,300 15,232
Notes and accounts payable .................... 3,832 3,069
Others ........................................ 6,045 4,819
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Total ......................................... 26,177 23,120
Long-term debts ................................. 27,002 28,961
Other liabilities ............................... 556 420
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Total liabilities ............................... 53,735 52,501
Minority interest ............................... 11,143 11,612
Shareholders' equity ............................ 38,763 39,067
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Total liabilities & shareholders' equity ........ 103,641 103,180
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7