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


July 30, 2010
 
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: July 30, 2010                                 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
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 SECOND QUARTER OF 2010


Taipei, Taiwan, R.O.C., July 30, 2010 – 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 revenue1 of NT$46,416 million for the second quarter of 2010 (2Q10), up 122% year-over-year and up 24% sequentially.  Net income for the quarter totaled NT$4,613 million, up from a net income of NT$1,674 million in 2Q09 and NT$3,395 million in 1Q10.  Diluted earnings per share for the quarter was NT$0.76 (or US$0.120 per ADS), compared to diluted earnings per share of NT$0.29 for 2Q09 and NT$0.57 for 1Q10.

To aid investors in understanding the significance of the Company's successful tender offer for 78.1% of the outstanding common shares of Universal Scientific Industrial Co., Ltd. ("USI") in the second quarter of 2010, this earnings release includes (i) the Company's pro forma and actual financial results both reflecting the consolidation of USI, and (ii) consolidated financial results for USI.  USI's financial results are reflected in the Company's actual financial results for the first quarter beginning in February 2010 and for the second quarter of 2010.  The pro forma financial results reflect the completion of the USI tender offer as if it had occurred on January 1, 2009.  The presentation of the financial results for USI and the Company as described above are for purposes of this earnings release only.

RESULTS OF OPERATIONS

2Q10 Results Highlights – Actual Basis
l
Net revenue contribution from IC packaging operations (including module assembly), testing operations, EMS operations and substrates sold to third parties was NT$25,700 million, NT$5,288 million, NT$14,726 million, and NT$702 million, respectively, and each represented approximately 55%, 11%, 32% and 2%, respectively, of total net revenues for the quarter.
 
l
Cost of revenue was NT$36,500 million, up 123% year-over-year and up 22% sequentially.
 
 

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.
 
 
 
 

 
 
 
 
-
Raw material cost totaled NT$22,108 million during the quarter, representing 48% of total net revenue, compared with NT$17,130 million and 46% of total net revenue in the previous quarter.
 
 
-
Labor cost totaled NT$5,164 million during the quarter, representing 11% of total net revenue, compared with NT$4,476 million and 12% of total net revenue in the previous quarter.
 
 
-
Depreciation, amortization and rental expenses totaled NT$4,470 million during the quarter, up 7% year-over-year and sequentially.
 
l
Total operating expenses during 2Q10 were NT$4,153 million, including NT$1,560 million in R&D and NT$2,593 million in SG&A, compared with operating expenses of NT$3,277 million in 1Q10.  Total operating expenses as a percentage of net revenue for the current quarter were 9%, slightly down from 10% in 2Q09 and the same as the previous quarter.
 
l
Operating income for the quarter totaled NT$5,763 million, up from NT$4,279 million in the previous quarter.  Operating margin increased to 12% in 2Q10 from 11% in 1Q10.
 
l
In terms of non-operating items:
 
 
-  
Net interest expense was NT$282 million, down from NT$292 million a quarter ago primarily due to lower loan balance during the quarter.
 
 
-  
Net foreign exchange loss of NT$80 million was primarily attributable to the appreciation of the U.S. dollar against the N.T. dollar.
 
 
-  
Gain on equity-method investments of NT$36 million was primarily attributable to our investment income of NT$43 million from Hung Ching Construction and investment loss of other investments.
 
 
-  
Other non-operating loss of NT$54 million was primarily related to miscellaneous loss.  Total non-operating expenses for the quarter was NT$380 million, compared to non-operating expenses of NT$337 million for 2Q09 and non-operating expense of NT$206 million for 1Q10.
 
l
Income before tax was NT$5,383 million for 2Q10, compared to NT$4,073 million in the previous quarter.  We recorded income tax expense of NT$611 million during the quarter, compared to NT$455 million in 1Q10.
 
l
In 2Q10, net income was NT$4,613 million, compared to net income of NT$1,674 million for 2Q09 and net income of NT$3,395 million for 1Q10.
 
l
Our total number of shares outstanding at the end of the quarter was 6,049,280,572, including retroactive stock dividend and treasury stock owned by our subsidiaries.  Our 2Q10 diluted earnings per share of NT$0.76 (or US$0.120 per ADS) was based on 6,010,598,704 weighted average number of shares outstanding in 2Q10.

2Q10 Results Highlights – Pro Forma Basis Assuming USI Consolidated at the Beginning of Each Applicable Period
l
Net revenue contribution from IC packaging operations, testing operations, EMS operations and substrates sold to third parties was NT$25,700 million, NT$5,288 million, NT$14,726 million, and NT$702 million, respectively, and each represented approximately 55%, 11%, 32% and 2%, respectively, of total net revenues for the quarter.
 
l
Cost of revenues was NT$36,500 million, up 35% year-over-year and up 8% sequentially.
 
l
Total operating expenses during 2Q10 were NT$4,153 million, including NT$1,560 million in R&D and NT$2,593 million in SG&A, compared with operating expenses of NT$3,616 million in 1Q10.  Total operating expenses as a percentage of net revenue for the current quarter were 9%, the same as 2Q09 and the previous quarter.
 
l
Operating income for the quarter totaled NT$5,763 million, up from NT$4,450 million in the previous quarter.  Operating margin was 12% in 2Q10, slightly up 1% from the previous quarter.
 
 
 
 

 
 
 
 
l
Total non-operating expenses for the quarter were NT$380 million, compared to non-operating expenses of NT$386 million for 2Q09 and non-operating expenses of NT$236 million for 1Q10.
 
l
Income before tax was NT$5,383 million for 2Q10, compared to NT$4,214 million in the previous quarter.  We recorded income tax expense of NT$611 million during the quarter, compared to NT$470 million in 1Q10.
 
l
In 2Q10, net income was NT$4,613 million, compared to a net income of NT$1,883 million for 2Q09 and net income of NT$3,488 million for 1Q10.
 
l
Our total number of shares outstanding at the end of the quarter was 6,049,280,572, including retroactive stock dividend and treasury stock owned by our subsidiaries.  Our 2Q10 diluted earnings per share of NT$0.76 was based on 6,010,598,704 weighted average number of shares outstanding in 2Q10.

2Q10 Results Highlights – IC ATM2 Basis
l
Net revenue contribution from IC packaging operations, testing operations, and substrates sold to third parties was NT$25,707 million, NT$5,288 million and NT$702 million, respectively, and each represented approximately 81%, 17% and 2%, respectively, of total net revenues for the quarter.
 
l
Cost of revenues was NT$23,394 million, up 43% year-over-year and up 12% sequentially.
 
 
-  
Raw material cost totaled NT$10,278 million during the quarter, representing 32% of total net revenue, compared with NT$8,886 million and 32% of total net revenue in the previous quarter.
 
 
-  
Labor cost totaled NT$4,643 million during the quarter, representing 15% of total net revenue, compared with NT$4,135 million and 15% of total net revenue in the previous quarter.
 
 
-  
Depreciation, amortization and rental expenses totaled NT$4,093 million during the quarter, down 2% year-over-year and up 2% sequentially.
 
l
Total operating expenses during 2Q10 were NT$2,936 million, including NT$1,143 million in R&D and NT$1,793 million in SG&A, compared with operating expenses of NT$2,629 million in 1Q10.  Total operating expenses as a percentage of net revenue for the current quarter were 9%, down from 10% in 2Q09 and the previous quarter.
 
l
Operating income for the quarter totaled NT$5,367 million, up from NT$3,818 million in the previous quarter.  Operating margin increased to 17% in 2Q10 from 14% in 1Q10.
 
l
In terms of non-operating items:
 
 
-  
Net interest expense was NT$275 million, down from NT$293 million a quarter ago primarily due to lower loan balance during the quarter.
 
 
-  
Net foreign exchange loss of NT$77 million was primarily attributable to the appreciation of the U.S. dollar against the N.T. dollar.
 
 
-  
Gain on equity-method investments of NT$313 million was primarily attributable to our investment income in USI.
 
 
-  
Other non-operating loss of NT$152 million was primarily related to miscellaneous loss.  Total non-operating expenses for the quarter was NT$191 million, compared to non-operating expenses of NT$337 million for 2Q09 and non-operating income of NT$113 million for 1Q10.
 

2 ATM stands for Semiconductor Assembly, Testing and Material.
 
 
 
 

 
 
 
l
Income before tax was NT$5,176 million for 2Q10, compared to NT$3,931 million in the previous quarter.  We recorded income tax expense of NT$525 million during the quarter, compared to NT$395 million in 1Q10.
 
l
In 2Q10, net income was NT$4,613 million, compared to a net income of NT$1,674 million for 2Q09 and net income of NT$3,395 million for 1Q10.

2Q10 Results Highlights of USI
l
Net revenue contribution from EMS operations was NT$14,726 million, up 23% year-over-year and up 2% sequentially.
 
l
Cost of revenues was NT$12,963 million, up 22% year-over-year and up 1% sequentially.
 
 
-  
Raw material cost totaled NT$11,838 million during the quarter, representing 80% of total net revenue, compared with NT$11,777 million and 81% of total net revenue in the previous quarter.
 
 
-  
Labor cost totaled NT$520 million during the quarter, representing 4% of total net revenue, compared with NT$487 million and 3% of total net revenue in the previous quarter.
 
 
-  
Depreciation, amortization and rental expenses totaled NT$231 million during the quarter, down 30% year-over-year and down 9% sequentially.
 
l
Total operating expenses during 2Q10 were NT$1,218 million, including NT$417 million in R&D and NT$801 million in SG&A, compared with operating expenses of NT$988 million in 1Q10.  Total operating expenses as a percentage of net revenue for the current quarter were 8%, the same as 2Q09 and up from 7% in 1Q10.
 
l
Operating income for the quarter totaled NT$545 million, down from NT$626 million in the previous quarter.  Operating margin was 4% in 2Q10, the same as the previous quarter.
 
l
Total non-operating income for the quarter was NT$91 million, compared to non-operating income of NT$22 million for 2Q09 and non-operating expenses of NT$20 million for 1Q10.
 
l
Income before tax was NT$636 million for 2Q10, compared to NT$606 million in the previous quarter.  We recorded income tax expense of NT$85 million during the quarter, compared to NT$74 million in 1Q10.
 
l
In 2Q10, net income was NT$549 million, compared to a net income of NT$349 million for 2Q09 and net income of NT$530 million for 1Q10.

LIQUIDITY AND CAPITAL RESOURCES OF ACTUAL BASIS
l
As of June 30, 2010, our cash and current financial assets totaled NT$28,061 million, compared to NT$40,417 million as of March 31, 2010.
 
l
Capital expenditures in 2Q10 totaled US$366million, of which US$227 million was used for IC packaging, US$127 million was used for testing, US$7 million was used for EMS and US$5 million was used for interconnect materials.
 
l
As of June 30, 2010, we had total bank debt of NT$68,446 million, compared to NT$78,317 million as of March 31, 2010.  Total bank debt consisted of NT$15,494 million of revolving working capital loans, NT$2,136 million of the current portion of long-term debt, and NT$50,816 million of long-term debt.  Total unused credit lines amounted to NT$86,585 million.
 
l
Current ratio as of June 30, 2010 was 1.42, compared to 1.61 as of March 31, 2010.  Net debt to equity ratio was 0.44 as of June 30, 2010.
 
l
Total number of employees was 44,374 as of June 30, 2010, compared to 26,406 as of June 30, 2009 and 42,953 as of March 31, 2010.
 
 
 
 

 
 
 
BUSINESS REVIEW

IC Packaging Services3
l
Net revenues generated from our IC packaging operations were NT$25,707 million during the quarter, up NT$9,116 million, or 55% year-over-year, and up NT$3,619 million, or 16% sequentially.
 
l
Net revenues from advanced substrate and leadframe-based packaging accounted for 85% of total IC packaging net revenues during the quarter, down 2 percentage points from the previous quarter.
 
l
Gross margin for our IC packaging operations during the quarter was 22%, up by 3 percentage points from the same quarter last year and previous quarter.
 
l
Capital expenditures for our IC packaging operations amounted to US$227 million during the quarter, of which US$186 million was used for wirebonding packaging capacity and US$41 million was used for wafer bumping and flip chip packaging equipment.
 
l
As of June 30, 2010, there were 10,705 wirebonders in operation.  916 wirebonders were added and 28 wirebonders were disposed of during the quarter.
 
l
Net revenues from flip chip packages and wafer bumping services accounted for 16% of total packaging net revenues, up by 1 percentage point from the previous quarter.

Testing Services
l
Net revenues generated from our testing operations were NT$5,288 million, up NT$1,411 million, or 36% year-over-year, and up NT$626 million, or 13%, sequentially.
 
l
Final testing contributed 83% to total testing net revenues, which remained the same as the previous quarter.  Wafer sort contributed 15% to total testing net revenues, up 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$1,403 million, down from NT$1,480 million in 2Q09 and up from NT$1,372 million in 1Q10.
 
l
In 2Q10, gross margin for our testing operations was 39%, up by 11 percentage points year-over-year and up 4 percentage points from the previous quarter.
 
l
Capital spending on our testing operations amounted to US$127 million during the quarter.
l
As of June 30, 2010, there were 1,846 testers in operation.  242 testers were added and 30 testers were disposed of during the quarter.

EMS Services
l
Net revenues generated from our EMS operations were NT$14,726 million, up NT$2,748 million, or 23% year-over-year, and up NT$220 million, or 2%, sequentially.
 
l
Electronics Packaging & EMS products contributed 22% to total EMS net revenues, down by 6 percentage points from the previous quarter.  Computers & Peripherals products contributed 16% to total EMS net revenues, down by 9 percentage points from the previous quarter.  Communications products contributed 32% to total EMS net revenues, up by 11 percentage points from the previous quarter.  Network Storage & Servers products contributed 10% to total EMS net revenues, up by 1 percentage point from the previous quarter.   Industrial & Automotive products contributed 20% to total EMS net revenues, up by 3 percentage points from the previous quarter.
 

3 IC packaging services include module assembly services.
 
 
 
 

 
 
 
l
In 2Q10, gross margin for our EMS operations was 12%, up 1 percentage point from 2Q09 and the previous quarter.
 
l
Capital spending on our EMS operations amounted to US$7 million during the quarter.

Substrate Operations
l
PBGA substrate manufactured by ASE amounted to NT$2,560 million during the quarter, up NT$721 million, or 39% year-over-year, and up NT$230 million, or 10% from the previous quarter.  Of the total output of NT$2,560 million, NT$702 million was from sales to external customers.
 
l
Gross margin for substrate operations was 27% during the quarter, up by 10 percentage points year-over-year and up by 3 percentage points sequentially.
 
l
In 2Q10, our internal substrate manufacturing operations supplied 45% (by value) of our total substrate requirements.

Customers
IC ATM CONSOLIDATED BASIS
l
Our five largest customers together accounted for approximately 29% of our total net revenues in 2Q10, compared to 32% in 2Q09 and 30% in 1Q10.  No single customer accounted for more than 10% of our total net revenues.
 
l
Our top 10 customers contributed 43% of our total net revenues during the quarter, compared to 46% in 2Q09 and 44% in 1Q10.
 
l
Our customers that are integrated device manufacturers, or IDMs, accounted for 35% of our total net revenues during the quarter, compared to 30% in 2Q09 and 37% in 1Q10.

USI CONSOLIDATED BASIS
l
Our five largest customers together accounted for approximately 62% of our total net revenues in 2Q10, compared to 66% in 2Q09 and 63% in 1Q10.  There are four customers  accounted for more than 10% of our total net revenues.
 
l
Our top 10 customers contributed 78% of our total net revenues during the quarter, compared to 83% in 2Q09 and 79% in 1Q10.

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, 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, 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 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 2009 Annual Report on Form 20-F filed on June 11, 2010.

 
 
 

 
 
 
Supplemental Financial Information
IC ATM Consolidated Operations
Amounts in NT$ Millions
2Q/10
1Q/10
2Q/09
Net Revenues
31,697
27,423
20,881
Revenues by End Application
     
Communications
46%
45%
50%
Computers
18%
20%
18%
Automotive and Consumer
36%
35%
31%
Others
0%
0%
1%
Revenues by Region
     
North America
52%
50%
55%
Europe
14%
12%
11%
Taiwan
20%
23%
22%
Japan
9%
10%
8%
Other Asia
5%
5%
4%

IC Packaging Services
Amounts in NT$ Millions
2Q/10
1Q/10
2Q/09
Net Revenues
25,707
22,088
16,591
Revenues by Packaging Type
     
Advanced substrate & leadframe based
85%
87%
91%
Traditional leadframe based
6%
6%
5%
Module assembly
5%
4%
2%
Others
4%
3%
2%
Capacity
     
CapEx (US$ Millions)*
227
137
30
Number of Wirebonders
10,705
9,817
8,501

Testing Services
Amounts in NT$ Millions
2Q/10
1Q/10
2Q/09
Net Revenues
5,288
4,662
3,877
Revenues by Testing Type
     
Final test
83%
83%
82%
Wafer sort
15%
14%
15%
Engineering test
2%
3%
3%
Capacity
     
CapEx (US$ Millions)*
127
43
13
Number of Testers
1,846
1,634
1,510

USI Consolidated Operations
Amounts in NT$ Millions
2Q/10
1Q/10
2Q/09
Net Revenues
14,726
14,506
11,978
Revenues by End Application
     
Electronics Packaging & EMS
22%
28%
32%
Computers & Peripherals
16%
25%
23%
Communications
32%
21%
22%
Network Storage & Servers
10%
9%
8%
Industrial&Automotive Products
20%
17%
15%
Capacity
     
CapEx (US$ Millions)*
 7
9
-**
* Capital expenditure amounts exclude building construction costs.
** < US$1 million.
 
 
 
 

 

 
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Income Statements Data – Actual Basis*
(In NT$ millions, except per share data)
(Unaudited)
 
   
For the three months ended
   
For the period ended
 
   
Jun. 30
2010
   
Mar. 31
2010
   
Jun. 30
2009
   
Jun. 30
2010
   
Jun. 30
2009
 
Net revenues:
                             
IC Packaging
    25,700       22,081       16,591       47,781       26,799  
Testing
    5,288       4,662       3,877       9,951       6,645  
EMS
    14,726       10,139       -       24,864       -  
Others
    702       673       413       1,375       834  
Total net revenues
    46,416       37,555       20,881       83,971       34,278  
                                         
Cost of revenues
    (36,500 )     (29,999 )     (16,310 )     (66,499 )     (29,031 )
Gross profit
    9,916       7,556       4,571       17,472       5,247  
                                         
Operating expenses:
                                       
Research and development
    (1,560 )     (1,301 )     (825 )     (2,861 )     (1,575 )
Selling, general and administrative
    (2,593 )     (1,976 )     (1,203 )     (4,569 )     (2,522 )
Total operating expenses
    (4,153 )     (3,277 )     (2,028 )     (7,430 )     (4,097 )
Operating income (loss)
    5,763       4,279       2,543       10,042       1,150  
                                         
Net non-operating (expenses) income:
                                       
Interest expense - net
    (282 )     (292 )     (340 )     (574 )     (775 )
Foreign exchange gain (loss)
    (80 )     (3 )     106       (84 )     (1 )
Gain (loss) on equity-method investments
    36       32       58       69       82  
Others
    (54 )     57       (161 )     4       104  
Total non-operating (expenses) income
    (380 )     (206 )     (337 )     (585 )     (590 )
Income (loss) before tax
    5,383       4,073       2,206       9,457       560  
                                         
Income tax benefit (expense)
    (611 )     (455 )     (559 )     (1,067 )     (509 )
(Loss) income from continuing operations and before minority interest
    4,772       3,618       1,647       8,390       51  
Minority interest
    (159 )     (223 )     27       (382 )     57  
                                         
Net income (loss)
    4,613       3,395       1,674       8,008       108  
                                         
Per share data:
                                       
Earnings (losses) per share
                                       
– Basic
    NT$0.78       NT$0.59       NT$0.30       NT$1.36       NT$0.02  
– Diluted
    NT$0.76       NT$0.57       NT$0.29       NT$1.34       NT$0.02  
                                         
Earnings (losses) per equivalent ADS
                                       
– Basic
    US$0.122       US$0.092       US$0.045       US$0.214       US$0.003  
– Diluted
    US$0.120       US$0.089       US$0.044       US$0.210       US$0.003  
                                         
Number of weighted average shares used in diluted EPS calculation (in thousands)
    6,010,599       5,890,374       5,680,034       5,957,463       5,693,239  
                                         
Exchange rate (NT$ per US$1)
    31.78       31.95       33.16       31.86       33.49  
 
* Figures above reflect consolidation of USI starting in February 2010.
 
 
 
 

 

 
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Income Statements Data – Pro Forma Basis Assuming USI Consolidated at the Beginning of Each Applicable Period
(In NT$ millions, except per share data)
(Unaudited)
 
   
For the three months ended
   
For the period ended
 
   
Jun. 30
2010
   
Mar. 31
2010
   
Jun. 30
2009
   
Jun. 30
2010
   
Jun. 30
2009
 
Net revenues:
                             
IC Packaging
    25,700       22,080       16,588       47,780       26,799  
Testing
    5,288       4,662       3,877       9,950       6,645  
EMS
    14,726       14,506       11,978       29,232       22,661  
Others
    702       673       412       1,375       826  
Total net revenues
    46,416       41,921       32,855       88,337       56,931  
                                         
Cost of revenues
    (36,500 )     (33,855 )     (26,921 )     (70,355 )     (49,134 )
Gross profit
    9,916       8,066       5,934       17,982       7,797  
                                         
Operating expenses:
                                       
Research and development
    (1,560 )     (1,432 )     (1,206 )     (2,992 )     (2,315 )
Selling, general and administrative
    (2,593 )     (2,184 )     (1,773 )     (4,777 )     (3,667 )
Total operating expenses
    (4,153 )     (3,616 )     (2,979 )     (7,769 )     (5,982 )
Operating income (loss)
    5,763       4,450       2,955       10,213       1,815  
                                         
Net non-operating (expenses) income:
                                       
Total non-operating (expenses) income
    (380 )     (236 )     (386 )     (616 )     (626 )
Income (loss) before tax
    5,383       4,214       2,569       9,597       1,189  
                                         
Income tax benefit (expense)
    (611 )     (470 )     (637 )     (1,081 )     (634 )
(Loss) income from continuing operations and before minority interest
    4,772       3,744       1,932       8,516       555  
Minority interest
    (159 )     (256 )     (49 )     (416 )     (78 )
                                         
Net income (loss)
    4,613       3,488       1,883       8,100       477  
                                         
Per share data:
                                       
Earnings (losses) per share
                                       
– Basic
    NT$0.78       NT$0.59       NT$0.32       NT$1.37       NT$0.08  
– Diluted
    NT$0.76       NT$0.58       NT$0.32       NT$1.34       NT$0.08  
                                         
Number of weighted average shares used in diluted EPS calculation (in thousands)
    6,010,599       5,994,358       5,933,203       6,009,168       5,933,203  

 
 
 

 
 

Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Income Statements Data – IC ATM Basis
(In NT$ millions, except per share data)
(Unaudited)
 
   
For the three months ended
   
For the period ended
 
   
Jun. 30
2010
   
Mar. 31
2010
   
Jun. 30
2009
   
Jun. 30
2010
   
Jun. 30
2009
 
Net revenues:
                             
IC Packaging
    25,707       22,088       16,591       47,794       26,799  
Testing
    5,288       4,662       3,877       9,951       6,645  
Others
    702       673       413       1,375       834  
Total net revenues
    31,697       27,423       20,881       59,120       34,278  
                                         
Cost of revenues
    (23,394 )     (20,976 )     (16,310 )     (44,370 )     (29,031 )
Gross profit
    8,303       6,447       4,571       14,750       5,247  
                                         
Operating expenses:
                                       
Research and development
    (1,143 )     (1,035 )     (825 )     (2,177 )     (1,575 )
Selling, general and administrative
    (1,793 )     (1,594 )     (1,203 )     (3,387 )     (2,522 )
Total operating expenses
    (2,936 )     (2,629 )     (2,028 )     (5,564 )     (4,097 )
Operating income (loss)
    5,367       3,818       2,543       9,186       1,150  
                                         
Net non-operating (expenses) income:
                                       
Interest expense - net
    (275 )     (293 )     (340 )     (568 )     (775 )
Foreign exchange gain (loss)
    (77 )     14       106       (63 )     (1 )
Gain (loss) on equity-method investments
    313       327       58       640       82  
Others
    (152 )     65       (161 )     (87 )     104  
Total non-operating (expenses) income
    (191 )     113       (337 )     (78 )     (590 )
Income (loss) before tax
    5,176       3,931       2,206       9,108       560  
                                         
Income tax benefit (expense)
    (525 )     (395 )     (559 )     (921 )     (509 )
(Loss) income from continuing operations and before minority interest
    4,651       3,536       1,647       8,187       51  
Minority interest
    (38 )     (141 )     27       (179 )     57  
                                         
Net income (loss)
    4,613       3,395       1,674       8,008       108  
                                         
Per share data:
                                       
Earnings (losses) per share
                                       
– Basic
    NT$0.78       NT$0.59       NT$0.30       NT$1.36       NT$0.02  
– Diluted
    NT$0.76       NT$0.57       NT$0.29       NT$1.34       NT$0.02  
                                         
Number of weighted average shares used in diluted EPS calculation (in thousands)
    6,010,599       5,890,374       5,680,034       5,957,463       5,693,239  
 
 
 
 

 
 

Universal Scientific Industrial Co., Ltd.
Summary of Consolidated Income Statements Data
(In NT$ millions, except per share data)
(Unaudited)


   
For the three months ended
   
For the period ended
 
   
Jun. 30
2010
   
Mar. 31
2010
   
Jun. 30
2009
   
Jun. 30
2010
   
Jun. 30
2009
 
Net revenues:
                             
Total net revenues
    14,726       14,506       11,978       29,232       22,661  
                                         
Cost of revenues
    (12,963 )     (12,892 )     (10,620 )     (25,855 )     (20,120 )
Gross profit
    1,763       1,614       1,358       3,377       2,541  
                                         
Operating expenses:
                                       
Research and development
    (417 )     (398 )     (381 )     (815 )     (741 )
Selling, general and administrative
    (801 )     (590 )     (571 )     (1,390 )     (1,145 )
Total operating expenses
    (1,218 )     (988 )     (952 )     (2,205 )     (1,886 )
Operating income (loss)
    545       626       406       1,172       655  
                                         
Net non-operating (expenses) income:
                                       
Total non-operating (expenses) income
    91       (20 )     22       71       85  
Income (loss) before tax
    636       606       428       1,243       740  
                                         
Income tax benefit (expense)
    (85 )     (74 )     (78 )     (159 )     (125 )
(Loss) income from continuing operations and
before minority interest
    551       532       350       1,084       615  
Minority interest
    (2 )     (2 )     (1 )     (4 )     (2 )
                                         
Net income (loss)
    549       530       349       1,080       613  


 
 

 

 
 Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Balance Sheet Data – Actual Basis*
(In NT$ millions)
(Unaudited)
 
   
As of Jun. 30, 2010
   
As of Mar. 31, 2010
 
             
Current assets:
           
Cash and cash equivalents
    24,771       36,505  
Financial assets – current
    3,290       3,912  
Notes and accounts receivable
    34,309       33,396  
Inventories
    24,905       20,687  
Others
    3,481       5,623  
Total current assets
    90,756       100,123  
                 
Financial assets – non current
    2,389       2,430  
Properties – net
    95,906       86,748  
Intangible assets
    16,419       16,504  
Others
    4,579       3,993  
Total assets
    210,049       209,798  
                 
Current liabilities:
               
Short-term debts – revolving credit
    15,494       20,797  
Current portion of long-term debts
    2,136       1,438  
Notes and accounts payable
    24,896       23,787  
Others
    21,513       16,263  
Total current liabilities
    64,039       62,285  
                 
Long-term debts
    50,816       56,082  
Other liabilities
    4,116       3,991  
Total liabilities
    118,971       122,358  
                 
Minority interest
    7,055       7,235  
                 
Shareholders’ equity
    84,023       80,205  
Total liabilities & shareholders’ equity
    210,049       209,798  
                 
Current Ratio
    1.42       1.61  
Net Debt to Equity
    0.44       0.43  
 
* Figures above reflect consolidation of USI starting in February 2010.
 
 
 
 

 

 
Universal Scientific Industrial Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)
(Unaudited)
 
   
As of Jun. 30, 2010
   
As of Mar. 31, 2010
 
             
Current assets:
           
Cash and cash equivalents
    10,769       10,144  
Financial assets – current
    415       597  
Notes and accounts receivable
    13,405       14,054  
Inventories
    7,455       6,892  
Others
    596       541  
Total current assets
    32,640       32,228  
                 
Financial assets – non current
    571       575  
Properties – net
    4,975       4,886  
Intangible assets
    158       155  
Others
    995       941  
Total assets
    39,339       38,785  
                 
Current liabilities:
               
Short-term debts – revolving credit
    5,592       5,219  
Current portion of long-term debts
    -       140  
Notes and accounts payable
    13,525       14,160  
Others
    3,827       2,104  
Total current liabilities
    22,944       21,623  
                 
Long-term debts
    200       210  
Other liabilities
    340       334  
Total liabilities
    23,484       22,167  
                 
Minority interest
    35       33  
                 
Shareholders’ equity
    15,820       16,585  
Total liabilities & shareholders’ equity
    39,339       38,785