ADVANCED SEMICONDUCTOR ENGINEERING INC TAIPEI, Taiwan, April 29, 2016 /PRNewswire/ -- Advanced Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE: ASX) ("We", "ASE", or the "Company"), the world's largest independent provider of packaging and testing services, today reported unaudited net revenues[1] of NT$62,371 million for the first quarter of 2016 (1Q16), down by 4% year-over-year and down by 17% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$4,163 million, down from a net income attributable to shareholders of the parent of NT$4,469 million in 1Q15 and down from a net income attributable to shareholders of the parent of NT$4,990 million in 4Q15. Basic earnings per share for the quarter were NT$0.54 (or US$0.082 per ADS), compared to basic earnings per share of NT$0.58 for 1Q15 and NT$0.65 for 4Q15. Diluted earnings per share for the quarter were NT$0.43 (or US$0.065 per ADS), compared to diluted earnings per share of NT$0.56 for 1Q15 and NT$0.63 for 4Q15.
[1] All financial information
presented in this press release
is unaudited, consolidated and
prepared in accordance with
Taiwan-IFRS (International
Financial Reporting Standards as
endorsed for use in the R.O.C.).
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 of operations for any
future period.
RESULTS OF OPERATIONS
1Q16 Results Highlights - Consolidated
-- Net revenue contribution from packaging operations, testing operations,
EMS operations, substrates sold to third parties and others, each
represented approximately 45%, 10%, 40%, 1% and 4%, respectively, of
total net revenues for the quarter.
-- Cost of revenue was NT$50,922 million for the quarter, down from
NT$62,279 million in 4Q15.
-- Raw material cost totaled NT$27,357 million during the quarter,
representing 44% of total net revenues.
-- Labor cost totaled NT$8,284 million during the quarter, representing
13% of total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$7,010
million during the quarter.
-- Gross margin increased 0.8 percentage points to 18.4% in 1Q16 from 17.6%
in 4Q15.
-- Operating margin was 8.3% in 1Q16 compared to 9.0% in 4Q15.
-- In terms of non-operating items:
-- Net interest expense was NT$527 million.
-- Net foreign exchange gain of NT$881 million was primarily
attributable to the depreciation of the U.S. dollar against the NT
dollar.
-- Loss on valuation of financial assets and liabilities was NT$360
million.
-- Net gain on equity-method investments was NT$385 million, including
NT$401 million of the share of profit from our investment in
Siliconware Precision Industries Co., Ltd.
-- Other net non-operating income of NT$71 million was primarily
related to miscellaneous income. Total non-operating income for the
quarter were NT$450 million.
-- Income before tax was NT$5,656 million for 1Q16, compared to NT$6,572
million in 4Q15. We recorded income tax expenses of NT$1,318 million
during the quarter, compared to NT$1,260 million in 4Q15.
-- In 1Q16, net income attributable to shareholders of the parent was
NT$4,163 million, compared to net income attributable to shareholders of
the parent of NT$4,469 million for 1Q15 and net income attributable to
shareholders of the parent of NT$4,990 million for 4Q15.
-- Our total number of shares outstanding at the end of the quarter was
7,918,272,896, including treasury stock owned by our subsidiaries. Our
1Q16 basic earnings per share of NT$0.54 (or US$0.082 per ADS) were
based on 7,649,385,595 weighted average number of shares outstanding in
1Q16. Our 1Q16 diluted earnings per share of NT$0.43 (or US$0.065 per
ADS) were based on 8,293,276,666 weighted average number of shares
outstanding in 1Q16.
1Q16 Results Highlights - IC ATM[2]
-- Cost of revenues was NT$27,711 million for the quarter, down by 3%
sequentially.
-- Raw material cost totaled NT$8,086 million during the quarter,
representing 23% of total net revenues.
-- Labor cost totaled NT$7,194 million during the quarter, representing
20% of total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$6,379
million during the quarter.
-- Gross margin decreased 4.0 percentage points to 22.0% in 1Q16 from 26.0%
in 4Q15.
-- Operating margin was 9.1% in 1Q16 compared to 13.8% in 4Q15.
[2] ATM stands for Semiconductor
Assembly, Testing and Material.
1Q16 Results Highlights - EMS
-- Cost of revenues for the quarter was NT$22,781 million, down by 38%
sequentially.
-- Raw material cost totaled NT$19,310 million during the quarter,
representing 78% of total net revenues.
-- Labor cost totaled NT$1,089 million during the quarter, representing
4% of total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$667
million during the quarter.
-- Gross margin increased to 8.1% in 1Q16 from 7.3% in 4Q15.
-- Operating margin decreased to 1.5% in 1Q16 from 2.7% in 4Q15.
LIQUIDITY AND CAPITAL RESOURCES
-- Capital expenditures in 1Q16 totaled US$115 million, of which US$62
million were used for packaging, US$47 million for testing, US$2 million
for EMS and US$4 million for interconnect materials.
-- As of March 31, 2016, total unused credit lines amounted to NT$173,204
million.
-- Current ratio was 1.25 and net debt to equity ratio was 0.41 as of March
31, 2016.
-- Total number of employees was 63,357 as of March 31, 2016, compared to
65,789 as of December 31, 2015.
BUSINESS REVIEW
Packaging Operations[3]
-- Gross margin for our packaging operations during the quarter was 19.1%,
down by 4.4 percentage points from 4Q15.
-- Capital expenditures for our packaging operations amounted to US$62
million during the quarter, of which US$30 million were used for
purchases of wafer bumping and flip chip packaging equipment and US$28
million for common equipment purchases, including SiP equipment
purchases, and US$4 million for wirebond packaging specific purposes.
[3] IC packaging services
include module assembly
services.
Testing Operations
-- Depreciation, amortization and rental expense associated with our
testing operations amounted to NT$1,681 million during the quarter, up
from NT$1,676 million in 4Q15.
-- In 1Q16, gross margin for our testing operations was 32.9%, down by 4.7
percentage point from the previous quarter.
-- Capital expenditures for our testing operations amounted to US$47
million during the quarter
EMS Operations
-- In 1Q16, gross margin for our EMS operations was 8.1%, up by 0.8
percentage points from the previous quarter.
-- Capital expenditures for our EMS operations amounted to US$2 million
during the quarter.
Substrate Operations
-- PBGA substrate manufactured by ASE amounted to NT$2,270 million during
the quarter, up by NT$289 million, or by 15% from 4Q15. Of the total
output of NT$2,270 million, NT$892 million was from sales to external
customers.
-- Gross margin for substrate operations was 16.9% during the quarter, up
by 3.9 percentage points from 4Q15.
-- In 1Q16, our internal substrate manufacturing operations supplied 31%
(by value) of our total substrate requirements.
Customers
IC ATM CONSOLIDATED BASIS
-- Our five largest customers together accounted for approximately 35% of
our total net revenues in 1Q16, compared to 37% in 4Q15. One customer
accounted for more than 10% of our total net revenues in 1Q16.
-- Our top 10 customers contributed 51% of our total net revenues during
the quarter, compared to 54% in 4Q15.
-- Our customers that are integrated device manufacturers, or IDMs,
accounted for 35% of our total net revenues during the quarter, compared
to 33% in 4Q15.
EMS BASIS
-- Our five largest customers together accounted for approximately 77% of
our total net revenues in 1Q16, compared to 85% in 4Q15. One customer
accounted for more than 10% of our total net revenues in 1Q16.
-- Our top 10 customers contributed 89% of our total net revenues during
the quarter, compared to 92% in 4Q15.
OUTLOOK
Based on our current business outlook and exchange rate assumptions, management projects overall performance for the second quarter of 2016 to be as follows:
-- IC ATM business will approach 4Q15 levels, driven by a moderate recovery
while SiP business remains seasonally soft;
-- IC ATM gross margin should see meaningful improvement from 1Q16, but
could be a bit lower than 4Q15;
-- EMS business should decline moderately on a quarter over quarter basis;
-- EMS gross margin should be similar with 1Q16 levels.
About ASE, Inc.
ASE, Inc. is the world's largest independent provider of packaging services and testing services, including front-end engineering testing, wafer probing and final testing services. With advanced technological capabilities and a global presence spanning Taiwan, China, Korea, Japan, Singapore, Malaysia and the United States, ASE, Inc. has established a reputation for reliable, high quality products and services. For more information, please 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. 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 or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; general economic and political conditions; the recent global economic 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 2014 Annual Report on Form 20-F filed on March 18, 2015.
Supplemental Financial Information
IC ATM Consolidated Operations
Amounts in NT$ Millions 1Q/16 4Q/15 1Q/15
----- ----- -----
Net Revenues 35,543 38,406 38,605
------ ------ ------
Revenues by Application
-----------------------
Communication 51% 55% 55%
------------- --- --- ---
Computer 12% 12% 11%
-------- --- --- ---
Automotive, Consumer & Others 37% 33% 34%
----------------------------- --- --- ---
Packaging Operations
Amounts in NT$ Millions 1Q/16 4Q/15 1Q/15
----- ----- -----
Net Revenues 28,597 31,121 31,546
------ ------ ------
Revenues by Packaging Type
--------------------------
Advanced Packaging 29% 33% 33%
------------------ --- --- ---
IC Wirebonding 62% 58% 58%
-------------- --- --- ---
Discrete and Others 9% 9% 9%
------------------- --- --- ---
Capacity
--------
CapEx (US$ Millions)* 62 64 67
-------------------- --- --- ---
Number of Wirebonders 15,629 15,568 15,772
--------------------- ------ ------ ------
Testing Operations
Amounts in NT$ Millions 1Q/16 4Q/15 1Q/15
----- ----- -----
Net Revenues 5,995 6,356 6,180
----- ----- -----
Revenues by Testing Type
------------------------
Final test 78% 77% 74%
---------- --- --- ---
Wafer sort 18% 19% 21%
--- --- ---
Engineering test 4% 4% 5%
--- --- ---
Capacity
--------
CapEx (US$ Millions)* 47 18 52
-------------------- --- --- ---
Number of Testers 3,453 3,435 3,339
----------------- ----- ----- -----
EMS Operations
Amounts in NT$ Millions 1Q/16 4Q/15 1Q/15
----- ----- -----
Net Revenues 24,788 39,347 28,344
------ ------ ------
Revenues by End Application
---------------------------
Communication 51% 64% 47%
------------- --- --- ---
Computer 19% 15% 17%
-------- --- --- ---
Consumer 15% 11% 18%
-------- --- --- ---
Industrial 7% 5% 11%
---------- --- --- ---
Automotive 7% 4% 6%
---------- --- --- ---
Others 1% 1% 1%
------ --- --- ---
Capacity
--------
CapEx (US$ Millions)* 2 5 16
-------------------- --- --- ---
* Capital expenditure excludes building construction costs.
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Statement of Comprehensive Income Data
(In NT$ millions, except per share data)
(Unaudited)
For the three months ended
==========================
Mar. 31 Dec. 31 Mar. 31
2016 2015 2015
Net revenues:
Packaging 28,036 29,093 29,321
Testing 5,995 6,356 6,180
Direct Material 892 798 861
EMS 24,749 39,301 28,300
Others 2,699 - -
Total net revenues 62,371 75,548 64,662
------ ------ ------
Cost of revenues (50,922) (62,279) (52,349)
Gross profit 11,449 13,269 12,313
------ ------ ------
Operating expenses:
Research and development (2,608) (2,814) (2,547)
Selling, general and
administrative (3,635) (3,654) (3,474)
Total operating expenses (6,243) (6,468) (6,021)
Operating income 5,206 6,801 6,292
----- ----- -----
Net non-operating (expenses) income:
Interest expense - net (527) (538) (526)
Foreign exchange gain
(loss) 881 428 540
Gain (loss) on valuation of financial assets
and liabilities (360) (722) (969)
Gain (loss) on equity-
method investments 385 424 4
Others 71 179 165
Total non-operating
income (expenses) 450 (229) (786)
--- ---- ----
Income before tax 5,656 6,572 5,506
Income tax expense (1,318) (1,260) (856)
------ ------ ----
Income from continuing
operations and 4,338 5,312 4,650
before noncontrolling interest
Noncontrolling interest (175) (322) (181)
---- ---- ----
Net income attributable to
shareholders of the
parent 4,163 4,990 4,469
===== ===== =====
Per share data:
Earnings (losses) per share
- Basic NT$0.54 NT$0.65 NT$0.58
- Diluted NT$0.43 NT$0.63 NT$0.56
Earnings (losses) per equivalent ADS
- Basic US$0.082 US$0.100 US$0.092
- Diluted US$0.065 US$0.097 US$0.089
Number of weighted
average shares used in 8,293,277 7,840,049 7,868,151
diluted EPS calculation (in
thousands)
32.55
Exchange rate (NT$ per
US$1) 33.07 31.52
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Statement of Comprehensive Income Data - IC ATM
(In NT$ millions, except per share data)
(Unaudited)
For the three months ended
==========================
Mar. 31 Dec. 31 Mar. 31
2016 2015 2015
Net revenues:
Packaging 28,597 31,121 31,546
Testing 5,995 6,356 6,180
Direct Material 931 910 861
Others 20 19 18
Total net revenues 35,543 38,406 38,605
------ ------ ------
Cost of revenues (27,711) (28,429) (28,610)
Gross profit 7,832 9,977 9,995
----- ----- -----
Operating expenses:
Research and development (1,922) (2,081) (1,909)
Selling, general and
administrative (2,688) (2,583) (2,540)
Total operating expenses (4,610) (4,664) (4,449)
Operating income 3,222 5,313 5,546
----- ----- -----
Net non-operating (expenses) income:
Interest expense - net (604) (584) (530)
Foreign exchange gain
(loss) 834 364 532
Gain (loss) on valuation of financial assets and
liabilities
(261) (622) (1,129)
Gain (loss) on equity-
method investments 1,431 1,333 616
Others 124 336 195
Total non-operating
income (expenses) 1,524 827 (316)
----- --- ----
Income before tax 4,746 6,140 5,230
Income tax expense (529) (1,099) (709)
---- ------ ----
Income from continuing
operations and 4,217 5,041 4,521
before noncontrolling interest
Noncontrolling interest (54) (51) (52)
--- --- ---
Net income attributable to
shareholders of the
parent 4,163 4,990 4,469
===== ===== =====
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Statement of Comprehensive Income Data - EMS
(In NT$ millions, except per share data)
(Unaudited)
For the three months ended
==========================
Mar. 31 Dec. 31 Mar. 31
2016 2015 2015
Net revenues:
Total net revenues 24,788 39,347 28,344
------ ------ ------
Cost of revenues (22,781) (36,473) (26,079)
Gross profit 2,007 2,874 2,265
----- ----- -----
Operating expenses:
Research and development (710) (760) (661)
Selling, general and
administrative (920) (1,038) (914)
Total operating expenses (1,630) (1,798) (1,575)
Operating income 377 1,076 690
--- ----- ---
Net non-operating (expenses) income:
Total non-operating
income (expenses) 78 (64) 216
--- --- ---
Income before tax 455 1,012 906
Income tax expense (81) (170) (156)
--- ---- ----
Income from continuing
operations and 374 842 750
before noncontrolling interest
Noncontrolling interest (108) (269) (130)
---- ---- ----
Net income attributable to
shareholders of the
parent 266 573 620
=== === ===
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)
(Unaudited)
As of Mar. 31,
2016
As of Dec. 31, 2015
===================
Current assets:
Cash and cash equivalents 45,070 55,251
Financial assets - current 3,971 3,864
Notes and accounts receivable 40,528 44,931
Inventories 44,224 48,972
Others 3,210 3,715
----- -----
Total current assets 137,003 156,733
Financial assets - non current
& Investments - equity method
51,985 38,347
Property plant and equipment 147,234 149,997
Intangible assets 11,861 11,889
Prepaid lease payments 2,458 2,556
Others 5,949 5,766
----- -----
Total assets 356,490 365,288
======= =======
Current liabilities:
Short-term borrowings and
short-term bills payable 34,154 36,983
Current portion of bonds
payable 14,482 14,686
Current portion of long-term
borrowings & capital lease
obligations
1,356 2,157
Notes and accounts payable 28,907 34,139
Others 30,530 32,537
------ ------
Total current liabilities 109,429 120,502
Bonds payable 32,582 23,740
Long-term borrowings &
capital lease obligations 36,089 42,795
Other liabilities 9,653 9,831
----- -----
Total liabilities 187,753 196,868
Shareholders of the parent 158,016 156,916
Noncontrolling interest 10,721 11,504
------ ------
Total liabilities &
shareholders' equity 356,490 365,288
======= =======
Current Ratio 1.25 1.30
Net Debt to Equity 0.41 0.36
IR Contact:
Michelle Jao, Manager Grace Teng, Manager
mjao@iselabs.com grace_teng@aseglobal.com
Tel: +1.510.687.2481 Tel: +886.2.6636.5678
http://www.aseglobal.comTo view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/advanced-semiconductor-engineering-inc-reports-unaudited-consolidated-financial-results-for-the-first-quarter-of-2016-300259976.html
SOURCE Advanced Semiconductor Engineering, Inc.
