Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year of 2009
TAIPEI, Taiwan, Feb. 5 /PRNewswire-Asia-FirstCall/ -- Advanced Semiconductor Engineering, Inc. (TAIEX: 2311; NYSE: ASX) ("We", "ASE", or the "Company"), the world's largest independent provider of IC packaging and testing services, today reported unaudited net revenues (Note 1) of NT$26,293 million for the fourth quarter of 2009 (4Q09), up 44% year-over-year and up 4% sequentially. Net income for the quarter totaled NT$3,450 million, up from a net loss of NT$800 million in 4Q08 and up from net income of NT$3,187 million in 3Q09. Diluted earnings per share for the quarter was NT$0.66 (or US$0.102 per ADS), compared to losses per share of NT$0.15 for 4Q08 and diluted earnings per share of NT$0.61 for 3Q09.
For the full year of 2009, the Company reported net revenues of NT$85,775 million and net income of NT$6,744 million. Diluted earnings per share for the full year of 2009 was NT$1.29, or US$0.195 per ADS.
Note 1: All financial information presented in this press release is
unaudited, consolidated and prepared in accordance with accounting
principles generally accepted in the Republic of China, or ROC GAAP. Such
financial information is generated internally by us, and has not been
subjected to the same review and scrutiny, including internal auditing
procedures and audit 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.
RESULTS OF OPERATIONS
4Q09 Results Highlights
-- Net revenue contribution from IC packaging operations (including module
assembly), testing operations, and substrates sold to third parties was
NT$21,131 million, NT$4,563 million and NT$599 million, respectively,
and each represented approximately 81%, 17% and 2%, respectively, of
total net revenues for the quarter.
-- Cost of revenues was NT$19,686 million, up 28% year-over-year and up 4%
sequentially.
* Raw material cost totaled NT$8,166 million during the quarter,
representing 31% of total net revenue, compared with NT$7,442 million
and 30% of total net revenue in the previous quarter.
* Labor cost totaled NT$3,754 million during the quarter, representing
14% of total net revenue, compared with NT$3,590 million and 14% of
total net revenue in the previous quarter.
* Depreciation, amortization and rental expenses totaled NT$4,067
million during the quarter, down 5% year-over-year and down 1%
sequentially.
-- Total operating expenses during 4Q09 were NT$2,645 million, including
NT$1,081 million in R&D and NT$1,564 million in SG&A, compared with
operating expenses of NT$2,390 million in 3Q09. Total operating
expenses as a percentage of net revenue for the current quarter were
10%, down from 12% in 4Q08 and up from 9% in 3Q09.
-- Operating income for the quarter totaled NT$3,962 million, down from
NT$3,967 million in the previous quarter. Operating margin decreased
to 15% in 4Q09 from 16% in 3Q09.
-- In terms of non-operating items:
* Net interest expense was NT$256 million, down from NT$303 million a
quarter ago primarily due to lower average interest rates and loan
balance during the quarter.
* Net foreign exchange gain of NT$35 million was primarily attributable
to the depreciation of the U.S. dollar against the N.T. dollar.
* Gain on equity-method investments of NT$135 million was primarily
attributable to our investment in USI and HC.
* Other non-operating income of NT$96 million was primarily related to
scrap sales and other miscellaneous gains. Total non-operating
income for the quarter was NT$10 million, compared to non-operating
expenses of NT$1,275 million for 4Q08 and NT$110 million for 3Q09.
-- Income before tax was NT$3,972 million for 4Q09, compared to NT$3,857
million in the previous quarter. We recorded income tax expense of
NT$418 million during the quarter, compared to NT$558 million in 3Q09.
-- In 4Q09, net income was NT$3,450 million, compared to a net loss of
NT$800 million for 4Q08 and net income of NT$3,187 million for 3Q09.
-- Our total number of shares outstanding at the end of the quarter was
5,488,829,114, including treasury stock owned by our subsidiaries. Our
4Q09 diluted earnings per share of NT$0.66 (or US$0.102 per ADS) was
based on 5,200,502,367 weighted average number of shares outstanding in
4Q09.
2009 Full-Year Results
-- Net revenues for the full year of 2009 amounted to NT$85,775 million,
down 9% from 2008. The revenue contribution from IC packaging
operations (including module assembly), testing operations, and
substrates sold to third parties was NT$67,935 million, NT$15,795
million, and NT$2,045 million, respectively, and each represented
approximately 79%, 19% and 2% respectively, of total net revenues for
the year.
-- Cost of revenues for the full year of 2009 were NT$67,629 million,
compared with NT$72,661 million in 2008.
-- Gross profit for the year was NT$18,146 million, down 17% compared to
NT$21,770 million in 2008. Gross margin was 21% for the year, down
from 23% in 2008.
* Raw material cost totaled NT$25,536 million during the year,
representing 30% of total net revenues, compared with NT$27,276
million and 29% of total net revenues in 2008.
* Labor cost totaled NT$12,897 million during the year, representing
15% of total net revenues, compared with NT$14,550 million and 15% of
total net revenues in 2008.
* Depreciation, amortization and rental expenses totaled NT$16,603
million during the year, representing 19% of total net revenues,
compared with NT$16,371 million and 17% of total net revenues in
2008.
-- Total operating expenses during 2009 were NT$9,132 million, including
NT$3,612 million in R&D and NT$5,520 million in SG&A. Total operating
expenses as a percentage of net revenues was 11% in 2009, the same as
the period in 2008.
-- Operating income for the year was NT$9,014 million, compared to
operating income of NT$11,246 for the previous year. Operating margin
was 11% in 2009, down from 12% in 2008.
-- Total non-operating expenses for the year were NT$626 million,
compared to NT$1,770 million for 2008. The decrease was primarily due
to the valuation adjustment from financial assets and liabilities, and
the gain on equity-method long-term Investment.
-- Income before tax was NT$8,388 million for 2009. We recognized an
income tax expense of NT$1,485 million during the year.
-- In 2009, net income amounted to NT$6,744 million, compared with a net
income of NT$6,160 in 2008.
-- Our total shares outstanding at the end of the year were 5,488,829,114,
including treasury stock owned by our subsidiaries. Our diluted
earnings per share for 2009 was NT$1.29, or US$0.195 per ADS, based on
5,207,574,499 weighted average number of shares outstanding.
LIQUIDITY AND CAPITAL RESOURCES
-- As of Dec 31, 2009, our cash and other financial assets totaled
NT$27,578 million, compared to NT$32,520 million as of Sep 30, 2009.
-- Capital expenditures in 4Q09 totaled US$172 million, of which US$139
million was used for IC packaging, US$32 million was used for testing
and US$1 million was used for interconnect materials.
-- For the full year 2009, we spent US$349 million for capital
expenditures, including US$274 million for IC packaging, US$73 million
for testing, and US$2 million for interconnect material.
-- As of Dec 31, 2009, we had total bank debt of NT$63,040 million,
compared to NT$66,381 million as of Sep 30, 2009. Total bank debt
consisted of NT$13,025 million of revolving working capital loans,
NT$935 million of the current portion of long-term debt, and NT$49,080
million of long-term debt. Total unused credit lines amounted to
NT$67,319 million.
-- Current ratio as of Dec 31, 2009 was 1.78, compared to 1.52 as of Sep
30, 2009. Net debt to equity ratio was 0.47 as of Dec 31, 2009.
-- Total number of employees was 29,538 as of Dec 31, 2009, compared to
26,977 as of Dec 31, 2008 and 27,940 as of Sep 30, 2009.
Business Review
IC Packaging Services (Note 2)
-- Net revenues generated from our IC packaging operations were NT$21,131
million during the quarter, up NT$7,126 million, or 51% year-over-year,
and up NT$1,126 million, or 6% sequentially.
-- Net revenues from advanced substrate and leadframe-based packaging
accounted for 87% of total IC packaging net revenues during the
quarter, down by 1 percentage point from the previous quarter.
-- Gross margin for our IC packaging operations during the quarter was
21%, up by 6 percentage points last year and the same as the previous
quarter.
-- Capital expenditures for our IC packaging operations amounted to US$139
million during the quarter, of which US$101 million was used for
wirebonding packaging capacity and US$38 million was used for wafer
bumping and flip chip packaging equipment.
-- As of Dec 31, 2009, there were 9,515 wirebonders in operation. 796
wirebonders were added and 161 wirebonders were disposed of during the
quarter.
-- Net revenues from flip chip packages and wafer bumping services
accounted for 14% of total packaging net revenues, down by 2 percentage
points from the previous quarter.
Note 2: IC packaging services include module assembly services.
Testing Services
-- Net revenues generated from our testing operations were NT$4,563
million, up NT$733 million, or 19% year-over-year, and down NT$25
million, or 1%, sequentially.
-- Final testing contributed 83% to total testing net revenues, up by 1
percentage point from the previous quarter. Wafer sort contributed 14%
to total testing net revenues, down by 1 percentage point from the
previous quarter. Engineering testing contributed 3% to total testing
net revenues, which remained unchanged from the previous quarter.
-- Depreciation, amortization and rental expense associated with our
testing operations amounted to NT$1,414 million, down from NT$1,575
million in 4Q08 and down from NT$1,436 million in 3Q09.
-- In 4Q09, gross margin for our testing operations was 35%, up by 7
percentage points year-over-year and the same as the previous quarter.
-- Capital spending on our testing operations amounted to US$32 million
during the quarter.
-- As of Dec 31, 2009, there were 1,603 testers in operation. 51 testers
were added and 17 testers were disposed of during the quarter.
Substrate Operations
-- PBGA substrate manufactured by ASE amounted to NT$2,297 million during
the quarter, up NT$799 million, or 53% year-over-year, and up NT$48
million, or 2% from the previous quarter. Of the total output of
NT$2,297million, NT$599 million was from sales to external customers.
-- Gross margin for substrate operations was 25% during the quarter, up by
13 percentage points year-over-year and up by 3 percentage points
sequentially.
-- In 4Q09, our internal substrate manufacturing operations supplied 57%
(by value) of our total substrate requirements.
Customers
-- Our five largest customers together accounted for approximately 27% of
our total net revenues in 4Q09, compared to 30% in 4Q08 and 27% in
3Q09. No single customer accounted for more than 10% of our total net
revenues.
-- Our top 10 customers contributed 42% of our total net revenues during
the quarter, compared to 46% in 4Q08 and 42% in 3Q09.
-- Our customers that are integrated device manufacturers, or IDMs,
accounted for 38% of our total net revenues during the quarter,
compared to 42% in 4Q08 and 35% in 3Q09.
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., MediaTek Inc., NEC Electronics Corporation, NVIDIA Corporation, NXP Semiconductors, Qualcomm Incorporated, RF Micro Devices Inc. and STMicroelectronics N.V. 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 presentation 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 presentation. 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 presentation. 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, including the recent global financial crisis; 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 2008 Annual Report on Form 20-F filed on June 24, 2009.
Supplemental Financial Information
Consolidated Operations
Amounts in NT$ Millions 4Q/09 3Q/09 4Q/08
Net Revenues 26,293 25,205 18,311
Revenues by End Application
Communication 44% 44% 46%
Computer 18% 17% 19%
Automotive and Consumer 37% 37% 35%
Others 1% 2% 0%
Revenues by Region
North America 50% 52% 54%
Europe 13% 13% 15%
Taiwan 21% 20% 15%
Japan 10% 10% 12%
Other Asia 6% 5% 4%
IC Packaging Services
Amounts in NT$ Millions 4Q/09 3Q/09 4Q/08
Net Revenues 21,131 20,005 14,005
Revenues by Packaging Type
Advanced substrate &
leadframe based 87% 88% 86%
Traditional leadframe based 6% 6% 6%
Module assembly 4% 3% 4%
Others 3% 3% 4%
Capacity
CapEx (US$ Millions) * 139 91 27
Number of Wirebonders 9,515 8,880 8,446
Testing Services
Amounts in NT$ Millions 4Q/09 3Q/09 4Q/08
Net Revenues 4,563 4,588 3,830
Revenues by Testing Type
Final test 83% 82% 81%
Wafer sort 14% 15% 15%
Engineering test 3% 3% 4%
Capacity
CapEx (US$ Millions) * 32 17 19
Number of Testers 1,603 1,569 1,583
* 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 For the years
ended ended
Dec. 31 Sep. 30 Dec. 31 Dec. 31 Dec. 31
2009 2009 2008 2009 2008
Net revenues:
IC Packaging 21,131 20,005 14,005 67,935 73,392
Testing 4,563 4,588 3,830 15,795 19,021
Others 599 612 476 2,045 2,018
Total net revenues 26,293 25,205 18,311 85,775 94,431
Cost of revenues (19,686) (18,848) (15,375) (67,629) (72,661)
Gross profit 6,607 6,357 2,936 18,146 21, 770
Operating expenses:
Research and development (1,081) (956) (827) (3,612) (3,671)
Selling, general and
administrative (1,564) (1,434) (1,357) (5,520) (6,853)
Total operating expenses (2,645) (2,390) (2,184) (9,132) (10,524)
Operating income (loss) 3,962 3,967 752 9,014 11,246
Net non-operating (expenses)
income:
Interest expense - net (256) (303) (522) (1,334) (1,487)
Foreign exchange gain (loss) 35 (30) (166) 4 282
Gain (loss) on
equity-method investments 135 112 (125) 329 77
Others 96 111 (462) 375 (642)
Total non-operating
(expenses) income 10 (110) (1,275) (626) (1,770)
Income (loss) before tax 3,972 3,857 (523) 8,388 9,476
Income tax benefit (expense) (418) (558) (300) (1,485) (2,268)
(Loss) income from
continuing operations and
before minority interest 3,554 3,299 (823) 6,903 7,208
Minority interest (104) (112) 23 (159) (1,048)
Net income (loss) 3,450 3,187 (800) 6,744 6,160
Per share data:
Earnings (losses)
per share
- Basic NT$0.67 NT$0.62 NT$(0.15) NT$1.31 NT$1.14
- Diluted NT$0.66 NT$0.61 NT$(0.15) NT$1.29 NT$1.12
Earnings (losses) per
equivalent ADS
- Basic US$0.104 US$0.094 US$(0.023) US$0.198 US$0.181
- Diluted US$0.102 US$0.093 US$(0.023) US$0.195 US$0.178
Number of weighted
average shares used in
diluted EPS calculation
(in thousands) 5,200,502 5,186,949 5,324,543 5,207,574 5,457,356
Exchange rate
(NT$ per US$1) 32.26 32.81 32.83 33.01 31.47
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)
(Unaudited)
As of Dec. 31, As of Sep. 30,
2009 2009
Current assets:
Cash and cash equivalents 22,558 26,059
Financial assets - current 5,020 6,461
Notes and accounts receivable 17,812 16,847
Inventories 12,206 5,723
Others 3,817 4,397
Total current assets 61,413 59,487
Financial assets - non current 5,160 4,797
Properties - net 79,364 77,566
Intangible assets 12,232 12,900
Others 3,892 3,932
Total assets 162,061 158,682
Current liabilities:
Short-term debts - revolving credit 13,025 17,856
Current portion of long-term debts 935 3,972
Notes and accounts payable 8,954 8,209
Others 11,660 9,047
Total current liabilities 34,574 39,084
Long-term debts 49,080 44,553
Other liabilities 3,693 3,807
Total liabilities 87,347 87,444
Minority interest 3,098 2,664
Shareholders' equity 71,616 68,574
Total liabilities & shareholders' equity 162,061 158,682
Current Ratio 1.78 1.52
Net Debt to Equity 0.47 0.48
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
Allen Kan, Manager
Email: [email protected]
Clare Lin, Director (US Contact)
Tel: +1-408-986-6524
Email: [email protected]
SOURCE Advanced Semiconductor Engineering, Inc.
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