FORM
6-K
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
April
26,
2007
|
Commission
File Number
|
001-16125
|
|
Advanced
Semiconductor Engineering, Inc.
|
|
|
(Exact name of Registrant as specified in its charter)
|
|
|
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 if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1):
____
Note:
Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form
6-K
if submitted solely to provide an attached annual report to security
holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7):
____
Note:
Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form
6-K
if submitted to furnish a report or other document that the registrant foreign
private issuer must furnish and make public under the laws of the jurisdiction
in which the registrant is incorporated, domiciled or legally organized (the
registrant's "home country"), or under the rules of the home country exchange
on
which the registrant's securities are traded, as long as the report or other
document is not a press release, is not required to be and has not been
distributed to the registrant's security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission
filing on EDGAR.
Indicate
by check mark whether by furnishing the information contained in this Form,
the
registrant 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
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.
|
||
|
Date:
April 26, 2007
|
By:
|
/s/
Joseph Tung
|
|
|
Name:
|
Joseph
Tung
|
|
|
Title:
|
Chief
Financial Officer
|
|
Advanced
Semiconductor Engineering, Inc.
|
 |
FOR
IMMEDIATE RELEASE
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
Freddie
Liu,
Vice
President
ir@aseglobal.com
Clare
Lin,
Director (US
Contact)
clare.lin@aseus.com
Tel:
+
1.408.986.6524
|
ADVANCED
SEMICONDUCTOR ENGINEERING, INC. REPORTS UNAUDITED
CONSOLIDATED FINANCIAL RESULTS FOR YEAR 2007 FIRST-QUARTER
CONSOLIDATED FINANCIAL RESULTS FOR YEAR 2007 FIRST-QUARTER
Taipei,
Taiwan,
R.O.C., April 25, 2007 - 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 consolidated net revenues1 of
NT$21,093 million for the first quarter of 2007 (1Q07), down 15% year-over-year
and down 7% sequentially. Net income for the quarter totaled NT$1,661 million,
down from NT$3,182 million in 1Q06 and down from NT$2,734 million in 4Q06.
Diluted earnings per share for the quarter was NT$0.36 (or US$0.055 per ADS),
compared to NT$0.69 for 1Q06 and NT$0.59 for 4Q06.
RESULTS
OF
OPERATIONS
1Q07
Results Highlights
| l |
Net
revenues
contribution from IC packaging operations (including module assembly),
testing operations, and substrate sold to third parties were NT$16,283
million, NT$4,324 million and NT$486 million, respectively, and each
represented approximately 77%, 21% and 2% respectively, of total
net
revenues for the quarter.
|
| l |
Cost
of
revenues was NT$16,096 million, down 12% year-over-year and relatively
unchanged sequentially.
|
| - |
As
a
percentage of total net revenues, cost of revenues was 76% in 1Q07,
up
from 73% in 1Q06 and up from 72% in
4Q06.
|
| - |
Raw
material
cost totaled NT$5,738 million during the quarter, representing 27%
of
total net revenues; compared with NT$5,990 million and 27% of net
revenues
in the previous quarter.
|
| - |
Depreciation,
amortization and rental expenses totaled NT$3,976 million during
the
quarter, up 6% year-over-year and up 5%
sequentially.
|
| l |
Total
operating expenses during
1Q07
were NT$2,226 million, including NT$689 million in R&D and NT$1,537
million in SG&A.
Total
operating expenses as a percentage of net revenues for the current
quarter
were 11%, up from 8% in 1Q06 and up from 10% in
4Q06.
|
| l |
Operating
profit for the quarter totaled NT$2,771 million, down from NT$4,223
million in the
|
_______________
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.
1
|
Advanced
Semiconductor Engineering, Inc.
|
|
|
previous
quarter. Operating margin decreased from 19% in 4Q06 to 13% in
1Q07.
|
| l |
In
terms of
non-operating items,
|
| - |
Net
interest
expense was NT$354
million,
up from NT$214 million a quarter ago, primarily due to a decrease
in cash
balance as a result of our acquisition of GAPT and investment in
Power-ASE.
|
| - |
Net
exchange
gain of NT$19 million was mainly attributable to the exchange gain
in U.S.
dollar-based assets due to the appreciation of the US dollar against
the
New Taiwan dollar, and the exchange gain from the appreciation of
the
Renminbi against the U.S. dollar.
|
| - |
Gain
on
long-term investment of NT$76 million was primarily related to investment
income of NT$99 million from USI, and partially offset by investment
loss
from Hung Ching Construction.
|
| - |
Other
non-operating expenses of NT$242 million were primarily related to
loss
from the sale of our investment in Taiwan Fixed Network Co., Ltd.,
inventory provision adjustment and other miscellaneous expenses.
Together
with other non-operating expenses, total non-operating expenses for
the
quarter were NT$501 million, compared to NT$602 million for 1Q06
and
NT$185 million for 4Q06.
|
| l |
Income
before tax was NT$2,270 million for 1Q07, compared
with NT$4,038 million in the previous quarter. We recorded an income
tax
expense of NT$320 million during the quarter. Minority interest adjustment
was NT$289 million for 1Q07.
|
| l |
In
1Q07,
net
income was NT$1,661 million, compared to net income of NT$3,182 million
for 1Q06 and NT$2,734 million for
4Q06.
|
| l |
Our
total
number of shares (excluding treasury stock) outstanding at the end
of the
quarter was 4,445,582,581. Our diluted EPS for 1Q07 was NT$0.36,
or
US$0.055 per ADS, based on 4,706,551,294 weighted average number
of shares
outstanding during the first
quarter.
|
LIQUIDITY
AND CAPITAL RESOURCES
| l |
As
of March
31, 2007, our cash and other financial assets totaled NT$26,712 million,
up from NT$26,634 million on December 31,
2006.
|
| l |
Capital
expenditures in 1Q07 totaled US$76 million, of which US$33 million
was for
IC packaging, US$43 million was for testing, and US$0.1 million was
for
interconnect materials.
|
| l |
As
of March
31, 2007, we had total bank debts of NT$41,620 million, up from NT$37,897
million as of December 31, 2006. The increase in bank debts was primary
attributed to our acquisition of GAPT and the drawn down of bank
debt by
Power-ASE. Total bank debts consisted of NT$5,477 million of revolving
working capital loans, NT$2,603 million of current portion of long-term
debts, NT$1,375 million of current portion of bonds payable, NT$23,957
million of long-term debts and NT$8,208 million of long-term bonds
payable. Total unused credit lines were NT$49,681
million.
|
| l |
Current
ratio
as of March 31, 2007 was 1.72, compared to 1.74 as of December 31,
2006
and net debt to equity ratio was 0.19 as of March 31,
2007.
|
| l |
Total
number
of employees was 28,069 as of March 31,
2007.
|
BUSINESS
REVIEW
IC
Packaging
Services2
| l |
Net
revenues
generated from our IC packaging operations were NT$16,283 million
during
|
_______________
2
IC packaging services include module assembly services.
2
|
Advanced
Semiconductor Engineering, Inc.
|
|
|
the
quarter,
down by NT$3,023 million or 16% year-over-year and down by NT$903
million
or 5% sequentially. On a sequential basis, the decrease in packaging
net
revenue was primarily due to volume
decrease.
|
| l |
Net
revenues
from advanced substrate and leadframe-based packaging accounted for
83% of
total IC packaging net revenues during the quarter, up by one percentage
point from the previous quarter.
|
| l |
Gross
margin
for our IC packaging operations was 21%, relatively unchanged
year-over-year and down by 4 percentage points
sequentially.
|
| l |
Capital
expenditure for our IC packaging operations amounted to US$33 million
during the quarter, of which US$32 million was for wirebonding packaging
capacity, and US$1 million was for wafer bumping and flip chip packaging
equipment.
|
| l |
As
of March
31, 2007, there were 7,050 wirebonders in operations. 541 wirebonders
were
added, of which 539 were from our acquisition of GAPT. 17 wirebonders
were
disposed of during the quarter.
|
| l |
Net
revenues
from flip chip packages and wafer bumping services accounted for
9% of
total packaging net revenues, down by three percentage points from
the
previous quarter.
|
Testing
Services
| l |
Net
revenues
generated from our testing operations were NT$4,324 million, down
by
NT$799 million or 16% year-over-year and down by NT$473 million or
10%
sequentially. Testing ASP remained relatively unchanged compared
to 4Q06.
The decrease in testing net revenues was primarily due to volume
decrease.
|
| l |
Final
testing
contributed 78% to total testing net revenues, up by one percentage
point
from the previous quarter. Wafer sort contributed 17% to total testing
net
revenues, down by one percentage point from the previous quarter.
Engineering testing contributed 5% to total testing net revenues,
relatively unchanged from the previous
quarter.
|
| l |
Depreciation,
amortization and rental expense associated with testing operation
amounted
to NT$1,573 million, down from NT$1,616 million in 1Q06 and up from
NT$1,556 million in 4Q06.
|
| l |
In
1Q07, gross
margin for our testing operations was 29%, down by ten percentage
points
year-over-year and down by seven percentage points sequentially.
The
sequential decrease in gross margin was primary due to the decrease
of
sales.
|
| l |
Capital
spending on our testing operations amounted to US$43 million during
the
quarter.
|
| l |
As
of March
31, 2007, there were 1,365 testers in operations. 98 testers were
added
and 38 testers were disposed of during the quarter. The added 98
testers
consist of 55 testers from our acquisition of GAPT, 28 testers from
consignment, and 15 testers from purchase and
lease.
|
Substrate
Operations
| l |
PBGA
substrate
manufactured by ASE amounted NT$1,716 million for the quarter, down
by
NT$116 million or 6% from a year-ago quarter, and down by NT$153
million
or 8% from the previous quarter.
Of
the total
output of NT$1,716 million, NT$486 million was from sales to external
customers.
|
| l |
Gross
margin
for substrate operations was 18% during the quarter, down by eight
percentage points compared with a year-ago quarter, and down by six
percentage points compared with previous
quarter.
|
| l |
In
1Q07, the
Company’s internal substrate manufacturing operations supplied 43% (by
value) of our total substrate
requirements.
|
| l |
As
of March
31, 2007, the Company’s PBGA capacity was at 48 million units per
month.
|
3
|
Advanced
Semiconductor Engineering, Inc.
|
|
Power-ASE
| l |
Net
revenues
from our joint venture with Powerchip totaled NT$530 million. Gross
profit
and operating profit was NT$204 million and NT$180 million,
respectively.
|
| l |
Capital
investment made to this joint venture totaled US$44 million in the
first
quarter of 2007.
|
Customers
| l |
Our
five
largest customers together accounted for approximately 27% of our
total
net revenues in 1Q07, down from 29% in 1Q06 and unchanged from 27%
in
4Q06. No single customer accounted for more than 10% of our total
net
revenues.
|
| l |
Our
top 10
customers contributed 42% of our total net revenues during the quarter,
down from 46% in 1Q06 and down from 43% in
4Q06.
|
| l |
Our
customers
that are integrated device manufacturers, or IDMs, accounted for
41% of
our total net revenues in 1Q07, compared to 42% in 1Q06 and 47% in
4Q06.
|
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., IBM Corporation, NVIDIA Corporation,
Koninklijke Philips Electronics N.V., 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
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. 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. 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; our ability to successfully integrate pending
and
future mergers and acquisitions; international business activities; our business
strategy; general economic and political conditions; 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 2005 Annual Report on Form
20-F filed on June 19, 2006.
4
Supplemental
Financial Information
Consolidated
Operations
|
Amounts
in NT$
Millions
|
1Q/07
|
4Q/06
|
1Q/06
|
|
Net
Revenues
Revenues
by End Application
|
21,093
|
22,574
|
24,837
|
|
Communication
|
45%
|
39%
|
34%
|
|
Computer
|
21%
|
24%
|
28%
|
|
Automotive
and
Consumers
|
32%
|
37%
|
37%
|
|
Others
|
2%
|
0%
|
1%
|
|
Revenues
by Region
|
|||
|
North
America
|
51%
|
54%
|
53%
|
|
Europe
|
12%
|
13%
|
11%
|
|
Taiwan
|
19%
|
18%
|
22%
|
|
Japan
|
10%
|
10%
|
9%
|
|
Other
Asia
|
8%
|
5%
|
5%
|
IC
Packaging
Services
|
Amounts
in NT$
Millions
|
1Q/07
|
4Q/06
|
1Q/06
|
|
Net
Revenues
Revenues
by Packaging Type
|
16,283
|
17,186
|
19,306
|
|
Advanced
substrate & leadframe based
|
83%
|
82%
|
82%
|
|
Traditional
leadframe
based
|
5%
|
5%
|
5%
|
|
Module
assembly
|
8%
|
8%
|
8%
|
|
Others
|
4%
|
5%
|
5%
|
|
Capacity
|
|||
|
CapEx
(US$
Millions) *
|
33
|
33
|
25
|
|
Number
of
Wirebonders
|
7,050
|
6,526
|
6,326
|
|
Wafer
Bumping
8”
(pcs/month)
|
87,000
|
80,000
|
70,000
|
|
Wafer
Bumping
12”
(pcs/month)
|
16,000
|
15,000
|
15,000
|
Testing
Services
|
Amounts
in NT$
Millions
|
1Q/07
|
4Q/06
|
1Q/06
|
|
Net
Revenues
Revenues
by Testing Type
|
4,324
|
4,797
|
5,123
|
|
Final
test
|
78%
|
77%
|
77%
|
|
Wafer
sort
|
17%
|
18%
|
19%
|
|
Engineering
test
|
5%
|
5%
|
4%
|
|
Capacity
|
|||
|
CapEx
(US$
Millions) *
|
43
|
33
|
14
|
|
Number
of
Testers
|
1,365
|
1,305
|
1,305
|
*
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
2007
|
Dec.
31
2006
|
Mar.
31
2006
|
||||||||||||||||
|
Net
revenues:
|
||||||||||||||||||
|
IC
Packaging
|
16,283
|
17,186
|
19,306
|
|||||||||||||||
|
Testing
|
4,324
|
4,797
|
5,123
|
|||||||||||||||
|
Others
|
486
|
591
|
408
|
|||||||||||||||
|
Total
net
revenues
|
21,093
|
22,574
|
24,837
|
|||||||||||||||
|
Cost
of
revenues
|
16,096
|
16,176
|
18,202
|
|||||||||||||||
|
Gross
profit
|
4,997
|
6,398
|
6,635
|
|||||||||||||||
|
Operating
expenses:
|
||||||||||||||||||
|
Research
and
development
|
689
|
690
|
634
|
|||||||||||||||
|
Selling,
general and administrative
|
1,537
|
1,485
|
1,316
|
|||||||||||||||
|
Total
operating expenses
|
2,226
|
2,175
|
1,950
|
|||||||||||||||
|
Operating
income (loss)
|
2,771
|
4,223
|
4,685
|
|||||||||||||||
|
Net
non-operating (income) expenses:
|
||||||||||||||||||
|
Interest
expenses - net
|
354
|
214
|
359
|
|||||||||||||||
|
Foreign
exchange loss (gain)
|
(19
|
)
|
(159
|
)
|
(43
|
)
|
||||||||||||
|
Loss
(gain) on
long-term investment
|
(76
|
)
|
(136
|
)
|
(61
|
)
|
||||||||||||
|
Others
|
242
|
266
|
347
|
|||||||||||||||
|
Total
non-operating (income) expenses
|
501
|
185
|
602
|
|||||||||||||||
|
Income
(loss)
before tax
|
2,270
|
4,038
|
4,083
|
|||||||||||||||
|
Income
tax
expense (benefit)
|
320
|
766
|
132
|
|||||||||||||||
|
Income
(loss)
from continuing operations
|
1,950
|
3,272
|
3,951
|
|||||||||||||||
|
Cumulative
effect of change in accounting principle
|
-
|
-
|
343
|
|||||||||||||||
|
Income
(loss)
before minority interest
|
1,950
|
3,272
|
3,608
|
|||||||||||||||
|
Minority
interest
|
289
|
538
|
426
|
|||||||||||||||
|
Net
income
(loss)
|
1,661
|
2,734
|
3,182
|
|||||||||||||||
|
Per
share
data:
|
||||||||||||
|
Earnings
(loss) per share
|
||||||||||||
|
–
Basic
|
NT$0.37
|
NT$0.62
|
NT$0.72
|
|||||||||
|
– Diluted
|
NT$0.36
|
NT$0.59
|
NT$0.69
|
|||||||||
|
Earnings
(loss) per pro forma equivalent ADS
|
||||||||||||
|
– Basic
|
US$0.057
|
US$0.094
|
US$0.112
|
|||||||||
|
– Diluted
|
US$0.055
|
US$0.090
|
US$0.106
|
|||||||||
|
Number
of
weighted average shares used in diluted EPS calculation (in
thousands)
|
4,706,551
|
4,693,690
|
4,651,513
|
|||||||||
|
Exchange
rate
(NT$ per US$1)
|
32.78
|
32.84
|
32.26
|
Advanced
Semiconductor Engineering, Inc.
Summary
of
Consolidated
Balance Sheet Data
(In
NT$
millions)
(Unaudited)
|
As
of Mar. 31,
2007
|
As
of Dec. 31,
2006
|
|||||||||
| Current assets: | ||||||||||
|
Cash
and cash
equivalents
|
14,008
|
15,730
|
||||||||
|
Financial
assets –
current
|
12,704
|
10,904
|
||||||||
|
Notes
and
accounts receivable
|
12,401
|
11,455
|
||||||||
|
Inventories
|
5,501
|
5,674
|
||||||||
|
Others
|
4,086
|
5,000
|
||||||||
|
Total
current
assets
|
48,700
|
48,763
|
||||||||
|
Financial
assets – non
current
|
5,659
|
5,735
|
||||||||
|
Properties
-
net
|
78,970
|
73,544
|
||||||||
|
Other
assets
|
10,239
|
8,999
|
||||||||
|
Total
assets
|
143,568
|
137,041
|
||||||||
|
Current
liabilities:
|
||||||||||
|
Short-term
debts – revolving
credit
|
5,477
|
2,868
|
||||||||
|
Short-term
debts – current
portion of long-term
debts
|
2,603
|
1,833
|
||||||||
|
Short-term
debts – current
portion of bonds payable
|
1,375
|
3,798
|
||||||||
|
Notes
and
accounts payable
|
7,553
|
7,305
|
||||||||
|
Others
|
11,322
|
12,206
|
||||||||
|
Total
current
liabilities
|
28,330
|
28,010
|
||||||||
|
Long-term
debts
|
23,957
|
23,639
|
||||||||
|
Long-term
bonds payable
|
8,208
|
5,759
|
||||||||
|
Other
liabilities
|
3,007
|
2,506
|
||||||||
|
Total
liabilities
|
63,502
|
59,914
|
||||||||
|
Minority
interest
|
11,470
|
11,107
|
||||||||
|
Shareholders’
equity
|
68,596
|
66,020
|
||||||||
|
Total
liabilities & shareholders’ equity
|
143,568
|
137,041
|
||||||||
|
Current
Ratio
|
1.72
|
1.74
|
||||||||
|
Net
Debt to Equity
|
0.19
|
0.15
|
||||||||