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
May 2,
2008
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Commission
File Number 001-16125
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Advanced
Semiconductor Engineering, Inc.
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(
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
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(Address
of principal executive offices)
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Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
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Form
20-F X
Form 40-F ____
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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.
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Yes
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No X
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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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Advanced
Semiconductor Engineering, Inc.
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 |
FOR
IMMEDIATE RELEASE
Contact:
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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
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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
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ADVANCED
SEMICONDUCTOR ENGINEERING, INC. REPORTS UNAUDITED
CONSOLIDATED
FINANCIAL RESULTS FOR FIRST QUARTER OF 2008
Taipei, Taiwan,
R.O.C., April
30, 2008 – 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 revenues1 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
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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.
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Cost of
revenues was NT$18,507 million, up 15% year-over-year and down 6%
sequentially.
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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.
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-
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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.
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-
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Depreciation,
amortization and rental expenses totaled NT$3,930 million during the
quarter, down 2% year-over-year and down 5%
sequentially.
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-
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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.
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Total
operating expenses during 1Q08 were NT$2,836 million, including NT$1,096
million in
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_______________________________________
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
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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.
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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.
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In terms of non-operating
items,
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-
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Net interest expense was
NT$275 million, down from NT$293 million a quarter ago.
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-
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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.
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-
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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.
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-
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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.
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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.
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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.
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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.
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LIQUIDITY
AND CAPITAL RESOURCES
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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.
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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.
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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.
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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.
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Total number
of employees was about 29,393 as of March 31,
2008.
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2
BUSINESS
REVIEW
IC Packaging
Services2
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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.
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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.
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Gross margin
for our IC packaging operations was 21%, relatively unchanged compared
with a year ago and down by 7 percentage points
sequentially.
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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.
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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.
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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.
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Testing
Services
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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.
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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.
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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.
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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.
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Capital
spending on our testing operations amounted to US$44 million during the
quarter.
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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.
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Substrate
Operations
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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.
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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.
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In 1Q08, the
Company’s internal substrate manufacturing operations supplied 59% (by
value) of our total substrate
requirements.
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As of March
31, 2008, the
Company’s PBGA capacity was at 48 million units per month.
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_______________________________________
2 IC packaging services
include module assembly services.
3
Customers
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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.
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Our top 10
customers contributed 45% of our total net revenues during the quarter,
compared to 42% in 1Q07 and 4Q07.
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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.
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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.
4
Supplemental
Financial Information
Consolidated
Operations
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Amounts in NT$
Millions
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1Q/08
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4Q/07
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1Q/07
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Net Revenues
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24,695
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28,976
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21,093
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Revenues by End
Application
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|||
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Communication
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45%
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43%
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45%
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Computer
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25%
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25%
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21%
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Automotive and
Consumers
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30%
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31%
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32%
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Others
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0%
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1%
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2%
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IC
Packaging Services
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Amounts in NT$
Millions
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1Q/08
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4Q/07
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1Q/07
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Net Revenues
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19,227
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22,561
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16,283
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Revenues by Packaging
Type
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Advanced
substrate & leadframe based
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84%
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83%
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83%
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Traditional
leadframe based
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4%
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4%
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5%
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Module
assembly
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5%
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6%
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8%
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Others
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7%
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7%
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4%
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Capacity
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CapEx (US$
Millions) *
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78
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97
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33
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Number of
Wirebonders
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8,126
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8,003
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7,050
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Testing
Services
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Amounts in NT$
Millions
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1Q/08
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4Q/07
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1Q/07
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Net Revenues
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4,895
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5,676
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4,324
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Revenues by Testing
Type
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Final
test
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77%
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76%
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78%
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Wafer
sort
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19%
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22%
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17%
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Engineering
test
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4%
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2%
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5%
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Capacity
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CapEx (US$
Millions) *
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44
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60
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43
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Number of
Testers
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1,555
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1,534
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1,365
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*
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)
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For the three
months ended
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||||||||||||
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Mar.
31
2008
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Dec.
31
2007
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Mar.
31
2007
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||||||||||
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Net
revenues:
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||||||||||||
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IC
Packaging
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19,227 | 22,561 | 16,283 | |||||||||
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Testing
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4,895 | 5,676 | 4,324 | |||||||||
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Others
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573 | 739 | 486 | |||||||||
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Total net
revenues
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24,695 | 28,976 | 21,093 | |||||||||
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Cost of
revenues
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18,507 | 19,717 | 16,096 | |||||||||
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Gross
profit
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6,188 | 9,259 | 4,997 | |||||||||
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Operating
expenses:
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||||||||||||
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Research and
development
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1,096 | 1,128 | 689 | |||||||||
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Selling,
general and administrative
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1,740 | 1,602 | 1,537 | |||||||||
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Total
operating expenses
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2,836 | 2,730 | 2,226 | |||||||||
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Operating
income
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3,352 | 6,529 | 2,771 | |||||||||
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Net
non-operating (income) expenses:
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||||||||||||
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Interest
expenses - net
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275 | 293 | 354 | |||||||||
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Foreign
exchange gain
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(301 | ) | (198 | ) | (19 | ) | ||||||
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Gain on
long-term investment
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(104 | ) | (96 | ) | (76 | ) | ||||||
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Others
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199 | 874 | 242 | |||||||||
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Total
non-operating expenses
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69 | 873 | 501 | |||||||||
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Income before
tax
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3,283 | 5,656 | 2,270 | |||||||||
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Income tax
expense
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411 | 1,165 | 320 | |||||||||
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Income from
continuing operations and minor interest
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2,872 | 4,491 | 1,950 | |||||||||
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Minority
interest
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535 | 787 | 289 | |||||||||
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Net
income
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2,337 | 3,704 | 1,661 | |||||||||
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Per share
data:
|
||||||||||||
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Earnings
(loss) per share
|
||||||||||||
|
–
Basic
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NT$0.44 | NT$0.71 | NT$0.32 | |||||||||
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–
Diluted
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NT$0.43 | NT$0.66 | NT$0.31 | |||||||||
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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,
2008
|
As of Dec. 31,
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 | ||||||
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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 | ||||||
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.
|
|||||
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Date:
May 2, 2008
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By:
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/s/
Joseph Tung
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Name:
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Joseph
Tung
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Title:
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Chief
Financial Officer
|