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
October
31, 2008
| 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: October 31,
2008
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
Allen Kan,
Manager
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 THE THIRD-QUARTER OF 2008
Taipei, Taiwan,
R.O.C., October
31, 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$25,815 million for the third quarter of 2008 (3Q08), down 7%
year-over-year and up 1% sequentially. Net income for the quarter
totaled NT$2,212
million, down from NT$4,225 million in 3Q07 and down from NT$2,412 million in
2Q08. Diluted earnings per share for the quarter was NT$0.41 (or
US$0.066 per ADS), compared to NT$0.76 for 3Q07 and NT$0.42 for
2Q08.
RESULTS
OF OPERATIONS
3Q08 Results
Highlights
|
l
|
Net revenue
contribution from IC packaging operations (including module assembly),
testing operations, and substrates sold to third parties was NT$20,127
million, NT$5,195 million and NT$493 million, respectively, and each
represented approximately 78%, 20% and 2%, respectively, of total net
revenues for the quarter.
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|
l
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Cost of
revenues was NT$19,186 million, down 1% year-over-year and up 1%
sequentially.
|
|
-
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As a
percentage of total net revenues, cost of revenues was 74% in 3Q08, up
from 70% in 3Q07 and down from 75% in
2Q08.
|
|
-
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Raw material
cost totaled NT$7,370 million during the quarter, representing 29% of
total net revenues, compared with NT$7,695 million and 30% of net revenues
in the previous quarter.
|
|
-
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Depreciation,
amortization and rental expenses totaled NT$4,169 million during the
quarter, up 2% year-over-year and up 5%
sequentially.
|
|
l
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Total
operating expenses during 3Q08 were NT$2,733 million, including NT$925
million in R&D and NT$1,808 million in SG&A, compared with
operating expenses of NT$2,928 million in 2Q08. The sequential
decrease was primarily attributable to bonuses paid to employees and
compensation to directors and supervisors of one of our subsidiaries in
2Q08. Total
operating expenses as a percentage of net revenues for the current quarter were 11%, up from 8% in 3Q07 and
relatively
unchanged compared to 2Q08.
|
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
|
l
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Operating profit for the quarter totaled
NT$3,896 million, up from NT$3,584 million in the previous
quarter. Operating margin increased to 15% in 3Q08 from 14% in 2Q8.
|
|
l
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In terms of non-operating
items:
|
|
-
|
Net interest expense was
NT$421 million, up from NT$268 million a quarter ago primarily due to an increase
in total bank loans.
|
|
-
|
Net exchange loss of NT$146 million was primarily attributable to exchange
losses from the appreciation of the the
U.S. dollar against
the N.T. dollar.
|
|
-
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Gain on
equity-method investment of NT$69 million was primarily attributable to
investment gain of NT$44 million from USI and investment gain of NT$27
million from Hung Ching
Construction.
|
|
-
|
Other
non-operating expenses of NT$244 million were primarily related to
valuation loss from financial assets and loss from inventory provision
adjustment. Together with other non-operating expenses, total
non-operating expenses for the quarter were NT$742 million, compared to
NT$280 million for 3Q07 and NT$22 million for
2Q08.
|
|
l
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Income before
tax was NT$3,154 million for 3Q08, compared with NT$3,562 million in the
previous quarter. We recorded an income tax expense of NT$777
million during the quarter, compared with an income tax expense of NT$779
million in 2Q08. Minority interest was NT$165 million for 3Q08,
down from NT$371 million in the previous quarter, primarily due to the
completion of the ASE Test privatization transaction at the end of
May.
|
|
l
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In 3Q08, net
income was NT$2,212 million, compared to net income of NT$4,225 million
for 3Q07 and NT$2,412 million for
2Q08.
|
|
l
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Our total
number of shares outstanding at the end of the quarter was 5,681,934,764
shares, including treasury stock. Our diluted EPS for 3Q08 was
NT$0.41, or US$0.066 per ADS, based on 5,403,832,355 weighted average
number of shares outstanding in
3Q08.
|
LIQUIDITY
AND CAPITAL RESOURCES
|
l
|
As of
September 30, 2008, our cash and other financial assets totaled NT$28,485
million, compared to NT$32,648 million as of June 30,
2008.
|
|
l
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Capital
expenditures in 3Q08 totaled US$98 million, of which US$53 million was
used for IC packaging and US$45 million was used for
testing.
|
|
l
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As of
September 30, 2008, we had total bank debts of NT$66,367 million, compared
to NT$64,687 million as of June 30, 2008. Total bank debts
consisted of NT$10,956 million of revolving working capital loans,
NT$2,958 million of the current portion of long-term debts, NT$1,375
million of current portion of bonds payable and NT$51,078 million of
long-term debts. Total unused credit lines were NT$68,732
million.
|
|
l
|
Current ratio
as of September 30, 2008 was 1.62, compared to 1.24 as of June 30,
2008. Net debt to equity ratio was 0.51 as of September 30,
2008.
|
|
l
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Total number
of employees was 30,511 as of September 30,
2008.
|
2
BUSINESS
REVIEW
IC Packaging
Services2
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l
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Net revenues
generated from our IC packaging operations were NT$20,127 million during
the quarter, down NT$1,517 million, or 7% year-over-year, and up NT$94
million, or 1% sequentially.
|
|
l
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Net revenues
from advanced substrate and leadframe-based packaging accounted for 89% of
total IC packaging net revenues during the quarter, which equaled to the
previous quarter.
|
|
l
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Gross margin
for our IC packaging operations was 21%, down 5% year-over-year and
unchanged sequentially.
|
|
l
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Capital
expenditures for our IC packaging operations amounted to US$53 million
during the quarter, of which US$39 million was used for wirebonding
packaging capacity and US$14 million was used for wafer bumping and flip
chip packaging equipment.
|
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l
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As of
September 30, 2008, there were 8,436 wirebonders in operation. 17
wirebonders were added and 7 wirebonders were disposed of during the
quarter.
|
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l
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Net revenues
from flip chip packages and wafer bumping services accounted for 15% of
total packaging net revenues, up 2 percentage points from the previous
quarter.
|
Testing
Services
|
l
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Net revenues generated from our testing operations were
NT$5,195 million, down NT$87 million, or 2% year-over-year, and up NT$93 million, or 2% sequentially.
|
|
l
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Final testing
contributed 80% to total testing net revenues, and was up 2% from the
previous quarter. Wafer sort contributed 18% to total testing
net revenues, down 1 percentage point from the previous
quarter. Engineering testing contributed 2% to total testing
net revenues, down 1 percentage point from the previous
quarter.
|
|
l
|
Depreciation,
amortization and rental expense associated with our testing operations
amounted to NT$1,593 million, down from NT$1,517 million in 3Q07 and up
from NT$1,475 million in 2Q08.
|
|
l
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In 3Q08, gross
margin for our testing operations was 36%, down 5 percentage points
year-over-year and down 2 percentage points
sequentially.
|
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l
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Capital
spending on our testing operations amounted to US$45 million during the
quarter.
|
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l
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As of
September 30, 2008, there were 1,638 testers in operation. 71
testers were added and 55 testers were disposed of during the
quarter.
|
Substrate
Operations
|
l
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PBGA substrate
manufactured by ASE amounted to NT$2,281 million for the quarter, down
NT$331 million, or 13% year-over-year, and up NT$120 million, or 6% from
the previous quarter. Of the
total output of NT$2,281 million, NT$493 million was from sales to
external customers.
|
|
l
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Gross margin
for substrate operations was 20% during the quarter, down 4 percentage
points year-over-year and up 5 percentage points from the previous
quarter.
|
|
l
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In 3Q08, the
Company’s internal substrate manufacturing operations supplied 62% (by
value) of our total substrate
requirements.
|
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l
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As of
September 30, 2008, the
Company’s PBGA capacity was 52 million units per month.
|
Customers
|
l
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Our five
largest customers together accounted for approximately 27% of our total
net revenues in 3Q08, compared to 26% in 3Q07 and 28% in
2Q08. No single customer accounted for more than 10% of our
total net revenues.
|
2 IC
packaging services include module assembly services.
3
|
l
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Our top 10
customers contributed 46% of our total net revenues during the quarter,
compared to 43% in 3Q07 and 47% in
2Q08.
|
|
l
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Our customers
that are integrated device manufacturers, or IDMs, accounted for 40% of
our total net revenues during the quarter, compared to 39% in 3Q07 and 41%
in 2Q08.
|
About
ASE, Inc.
ASE,
Inc. is the world's largest independent provider of IC packaging services and
testing services, including front-end engineering testing, wafer probing and
final testing services. ASE, Inc.’s international customer base of
more than 200 customers includes such leading names as ATI Technologies
Inc., CSR plc, Freescale Semiconductor, Inc.,
MediaTek Inc., NEC Corporation, NVIDIA Corporation, NXP Semiconductors, Qualcomm
Incorporated, RF Micro Devices Inc., STMicroelectronics N.V. and VIA
Technologies, Inc. With advanced technological capabilities and a
global presence spanning Taiwan, Korea, Japan, Singapore, Malaysia and the
United States, ASE, Inc. has established a reputation for reliable, high quality
products and services. For more information, visit our website at
http://www.aseglobal.com.
Safe
Harbor Notice
This press release
contains “forward-looking statements” within the meaning of Section 27A of the
United States Securities Act of 1933, as amended, and Section 21E of the United
States Securities Exchange Act of 1934, as amended, including statements
regarding our future results of operations and business
prospects. Although these forward-looking statements, which may
include statements regarding our future results of operations, financial
condition or business prospects, are based on our own information and
information from other sources we believe to be reliable, you should not place
undue reliance on these forward-looking statements, which apply only as of the
date of this press release. We were not involved in the preparation
of these projections. The words “anticipate”, “believe”, “estimate”,
“expect”, “intend”, “plan” and similar expressions, as they relate to us, are
intended to identify these forward-looking statements in this press
release. Our actual results of operations, financial condition or
business prospects may differ materially from those expressed or implied in
these forward-looking statements for a variety of reasons, including risks
associated with cyclicality and market conditions in the semiconductor industry;
demand for the outsourced semiconductor packaging and testing services we offer
and for such outsourced services generally; the highly competitive semiconductor
industry; our ability to introduce new packaging, interconnect materials and
testing technologies in order to remain competitive; international business
activities; our business strategy; our future expansion plans and capital
expenditures; the strained relationship between the ROC and the PRC; general
economic and political conditions, including the recent global financial crisis;
possible disruptions in commercial activities caused by natural or human-induced
disasters; fluctuations in foreign currency exchange rates; and other
factors. For a discussion of these risks and other factors, please
see the documents we file from time to time with the Securities and Exchange
Commission, including our 2007 Annual Report on Form 20-F filed on June 30,
2008, as amended.
4
Supplemental
Financial Information
Consolidated
Operations
|
Amounts in NT$
Millions
|
3Q/08
|
2Q/08
|
3Q/07
|
|
Net Revenues
Revenues by End
Application
|
25,815
|
25,610
|
27,733
|
|
Communication
|
44%
|
45%
|
44%
|
|
Computer
|
23%
|
24%
|
22%
|
|
Automotive and
Consumer
|
33%
|
31%
|
33%
|
|
Others
|
0%
|
0%
|
1%
|
|
Revenues
by Region
|
|||
|
North
America
|
55%
|
53%
|
49%
|
|
Europe
|
15%
|
13%
|
13%
|
|
Taiwan
|
18%
|
22%
|
22%
|
|
Japan
|
9%
|
8%
|
8%
|
|
Other
Asia
|
3%
|
4%
|
8%
|
IC
Packaging Services
|
Amounts in NT$
Millions
|
3Q/08
|
2Q/08
|
3Q/07
|
|
Net Revenues
Revenues by Packaging
Type
|
20,127
|
20,033
|
21,644
|
|
Advanced
substrate & leadframe based
|
89%
|
89%
|
88%
|
|
Traditional
leadframe based
|
4%
|
4%
|
4%
|
|
Module
assembly
|
4%
|
4%
|
5%
|
|
Others
|
3%
|
3%
|
3%
|
|
Capacity
|
|||
|
CapEx (US$
Millions) *
|
53
|
71
|
83
|
|
Number of
Wirebonders
|
8,436
|
8,426
|
7,649
|
Testing
Services
|
Amounts in NT$
Millions
|
3Q/08
|
2Q/08
|
3Q/07
|
|
Net Revenues
Revenues by Testing
Type
|
5,195
|
5,102
|
5,282
|
|
Final
test
|
80%
|
78%
|
76%
|
|
Wafer
sort
|
18%
|
19%
|
21%
|
|
Engineering
test
|
2%
|
3%
|
3%
|
|
Capacity
|
|||
|
CapEx (US$
Millions) *
|
45
|
56
|
55
|
|
Number of
Testers
|
1,638
|
1,622
|
1,580
|
*
Capital expenditure amounts exclude building construction costs.
Advanced
Semiconductor Engineering, Inc.
Summary
of Consolidated Income Statements Data
(In
NT$ millions, except per share data)
(Unaudited)
|
For the three
months ended
|
For the period
ended
|
|||||||||||||||||||
|
Sep.
30
2008
|
Jun.
30
2008
|
Sep.
30
2007
|
Sep.
30
2008
|
Sep.
30
2007
|
||||||||||||||||
|
Net
revenues:
|
||||||||||||||||||||
|
IC
Packaging
|
20,127 | 20,033 | 21,644 | 59,387 | 55,956 | |||||||||||||||
|
Testing
|
5,195 | 5,102 | 5,282 | 15,191 | 14,331 | |||||||||||||||
|
Others
|
493 | 475 | 807 | 1,541 | 1,901 | |||||||||||||||
|
Total net
revenues
|
25,815 | 25,610 | 27,733 | 76,119 | 72,188 | |||||||||||||||
|
Cost of
revenues
|
19,186 | 19,098 | 19,303 | 56,790 | 52,358 | |||||||||||||||
|
Gross
profit
|
6,629 | 6,512 | 8,430 | 19,329 | 19,830 | |||||||||||||||
|
Operating
expenses:
|
||||||||||||||||||||
|
Research and
development
|
925 | 980 | 748 | 3,002 | 2,157 | |||||||||||||||
|
Selling,
general and administrative
|
1,808 | 1,948 | 1,573 | 5,495 | 4,905 | |||||||||||||||
|
Total
operating expenses
|
2,733 | 2,928 | 2,321 | 8,497 | 7,062 | |||||||||||||||
|
Operating
income
|
3,896 | 3,584 | 6,109 | 10,832 | 12,768 | |||||||||||||||
|
Net
non-operating (income) expenses:
|
||||||||||||||||||||
|
Interest
expenses - net
|
421 | 268 | 273 | 964 | 932 | |||||||||||||||
|
Foreign
exchange gain
|
146 | (294 | ) | (39 | ) | (449 | ) | (205 | ) | |||||||||||
|
Gain on
equity-method investment
|
(69 | ) | (28 | ) | (111 | ) | (202 | ) | (250 | ) | ||||||||||
|
Others
|
244 | 76 | 157 | 520 | 595 | |||||||||||||||
|
Total
non-operating expenses
|
742 | 22 | 280 | 833 | 1,072 | |||||||||||||||
|
Income before
tax
|
3,154 | 3,562 | 5,829 | 9,999 | 11,696 | |||||||||||||||
|
Income tax
expense
|
777 | 779 | 1,008 | 1,968 | 2,193 | |||||||||||||||
|
Income from
continuing operations and before minor interest
|
2,377 | 2,783 | 4,821 | 8,031 | 9,503 | |||||||||||||||
|
Minority
interest
|
165 | 371 | 596 | 1,071 | 1,042 | |||||||||||||||
|
Net
income
|
2,212 | 2,412 | 4,225 | 6,960 | 8,461 | |||||||||||||||
|
Per share
data:
|
||||||||||||||||||||
|
Earnings
(loss) per share
|
||||||||||||||||||||
|
–
Basic
|
NT$0.41 | NT$0.44 | NT$0.78 | NT$1.29 | NT$1.57 | |||||||||||||||
|
–
Diluted
|
NT$0.41 | NT$0.42 | NT$0.76 | NT$1.26 | NT$1.53 | |||||||||||||||
|
Earnings
(loss) per equivalent ADS
|
||||||||||||||||||||
|
–
Basic
|
US$0.067 | US$0.073 | US$0.119 | US$0.207 | US$0.238 | |||||||||||||||
|
–
Diluted
|
US$0.066 | US$0.070 | US$0.116 | US$0.203 | US$0.232 | |||||||||||||||
|
Number of
weighted average shares used in diluted EPS calculation (in
thousands)
|
5,403,832 | 5,663,514 | 5,596,982 | 5,489,339 | 5,617,306 | |||||||||||||||
|
Exchange rate
(NT$ per US$1)
|
30.95 | 30.36 | 32.86 | 31.02 | 32.91 | |||||||||||||||
Advanced
Semiconductor Engineering, Inc.
Summary
of Consolidated Balance Sheet Data
(In
NT$ millions)
(Unaudited)
|
As of Sep. 30,
2008
|
As of Jun. 30,
2008
|
|||||||
|
Current
assets:
|
||||||||
|
Cash and cash
equivalents
|
26,728 | 23,305 | ||||||
|
Financial
assets – current
|
1,757 | 9,343 | ||||||
|
Notes and
accounts receivable
|
17,875 | 17,633 | ||||||
|
Inventories
|
5,808 | 5,598 | ||||||
|
Others
|
3,423 | 3,232 | ||||||
|
Total current
assets
|
55,591 | 59,111 | ||||||
|
Financial
assets – non current
|
4,554 | 4,568 | ||||||
|
Properties –
net
|
84,953 | 82,965 | ||||||
|
Others
|
16,827 | 17,676 | ||||||
|
Total
assets
|
161,925 | 164,320 | ||||||
|
Current
liabilities:
|
||||||||
|
Short-term
debts – revolving credit
|
10,956 | 12,906 | ||||||
|
Short-term
debts – current portion of long-term
debts
|
2,958 | 5,712 | ||||||
|
Short-term
debts – current portion of bonds payable
|
1,375 | 1,375 | ||||||
|
Notes and
accounts payable
|
8,868 | 8,339 | ||||||
|
Others
|
10,077 | 19,492 | ||||||
|
Total current
liabilities
|
34,234 | 47,824 | ||||||
|
Long-term
debts
|
51,078 | 40,663 | ||||||
|
Long-term
bonds payable
|
0 | 4,031 | ||||||
|
Other
liabilities
|
2,938 | 2,808 | ||||||
|
Total
liabilities
|
88,250 | 95,326 | ||||||
|
Minority
interest
|
2,843 | 2,980 | ||||||
|
Shareholders’
equity
|
70,832 | 66,014 | ||||||
|
Total
liabilities & shareholders’ equity
|
161,925 | 164,320 | ||||||
|
Current
Ratio
|
1.62 | 1.24 | ||||||
|
Net Debt to
Equity
|
0.51 | 0.46 | ||||||