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Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Second Quarter of 2016

(PRNewswire) —  Advanced Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE: ASX) ("We", "ASE", or the "Company"), among the leading providers of packaging and testing services, today reported unaudited net revenues[1] of NT$62,601 million for the second quarter of 2016 (2Q16), down by 11% year-over-year and up by 0.4% sequentially.  Net income attributable to shareholders of the parent for the quarter totaled NT$4,679 million, up from a net income attributable to shareholders of the parent of NT$3,652 million in 2Q15 and up from a net income attributable to shareholders of the parent of NT$4,163 million in 1Q16.  Basic earnings per share for the quarter were NT$0.61 (or US$0.094 per ADS), compared to basic earnings per share of NT$0.48 for 2Q15 and NT$0.54 for 1Q16. Diluted earnings per share for the quarter were NT$0.51 (or US$0.079 per ADS), compared to diluted earnings per share of NT$0.43 for 2Q15 and 1Q16.

RESULTS OF OPERATIONS

2Q16 Results Highlights - Consolidated

2Q16 Results Highlights - IC ATM[2]

2Q16 Results Highlights - EMS

LIQUIDITY AND CAPITAL RESOURCES

BUSINESS REVIEW

Packaging Operations[3]

Testing Operations

EMS Operations

Substrate Operations

Customers

IC ATM CONSOLIDATED BASIS

EMS Basis

OUTLOOK

Based on our current business outlook and exchange rate assumptions, management projects overall performance for the third quarter of 2016 to be as follows:

About ASE, Inc.

ASE, Inc. is among the leading providers 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 uncertainties as to whether we can complete the acquisition of 100% of Siliconware Precision Industries Co., Ltd. shares not otherwise owned by ASE; 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 2015 Annual Report on Form 20-F filed on April 29, 2016.


Supplemental Financial Information


IC ATM Consolidated Operations

Amounts in NT$ Millions

2Q/16

1Q/16

2Q/15

Net Revenues

38,504

35,543

37,671

Revenues by Application




Communication

52%

51%

55%

Computer

12%

12%

10%

Automotive, Consumer & Others

36%

37%

35%


Packaging Operations

Amounts in NT$ Millions

2Q/16

1Q/16

2Q/15

Net Revenues

31,180

28,597

30,558

Revenues by Packaging Type




Bumping, Flip Chip, WLP & SiP

31%

29%

31%

IC Wirebonding

61%

62%

57%

Discrete and Others

8%

9%

12%

Capacity




CapEx (US$ Millions)*

136

62

140

Number of Wirebonders

15,920

15,629

15,662


Testing Operations

Amounts in NT$ Millions

2Q/16

1Q/16

2Q/15

Net Revenues

6,502

5,995

6,230

Revenues by Testing Type




Final test

77%

78%

75%

Wafer sort

20%

18%

21%

Engineering test

3%

4%

4%

Capacity




CapEx (US$ Millions)*

107

47

43

Number of Testers

3,629

3,453

3,370


EMS Operations

Amounts in NT$ Millions

2Q/16

1Q/16

2Q/15

Net Revenues

24,886

24,788

34,576

Revenues by End Application




Communication

46%

51%

44%

Computer

20%

19%

13%

Consumer

18%

15%

28%

Industrial

8%

7%

9%

Automotive

7%

7%

5%

Others

1%

1%

1%

Capacity




CapEx (US$ Millions)*

4

2

27

* 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


For the six months ended


Jun. 30

2016


Mar. 31

2016


Jun. 30

2015


Jun. 30

2016


Jun. 30

2015

Net revenues:










Packaging

30,178


28,036


28,618


58,214


57,939

Testing

6,503


5,995


6,231


12,498


12,411

Direct Material

759


892


839


1,651


1,700

EMS

24,845


24,749


34,534


49,594


62,834

Others

316


2,699


-


3,015


-

Total net revenues

62,601


62,371


70,222


124,972


134,884











Cost of revenues

(50,346)


(50,922)


(58,656)


(101,268)


(111,005)

Gross profit

12,255


11,449


11,566


23,704


23,879











Operating expenses:










Research and development

(2,745)


(2,608)


(2,733)


(5,353)


(5,280)

Selling, general and administrative

(3,579)


(3,635)


(3,424)


(7,214)


(6,898)

Total operating expenses

(6,324)


(6,243)


(6,157)


(12,567)


(12,178)

Operating income

5,931


5,206


5,409


11,137


11,701











Net non-operating (expenses) income:










Interest expense - net

(532)


(527)


(471)


(1,059)


(997)

Foreign exchange gain (loss)

(238)


881


839


643


1,379

Gain (loss) on valuation of financial assets   and liabilities

 

858


 

(360)


 

(349)


 

498


 

(1,318)

Gain (loss) on equity-method investments

892


385


(54)


1,277


(50)

Others

(438)


71


26


(367)


191

Total non-operating income (expenses)

542


450


(9)


992


(795)

Income before tax

6,473


5,656


5,400


12,129


10,906











Income tax expense

(1,523)


(1,318)


(1,596)


(2,841)


(2,452)

Income from continuing operations and 
  
before noncontrolling interest

4,950


4,338


3,804


9,288


8,454

Noncontrolling interest

(271)


(175)


(152)


(446)


(333)











Net income attributable to
  
shareholders of the parent

 

4,679


 

4,163


 

3,652


 

8,842


 

8,121











Per share data:










Earnings (losses) per share










- Basic

NT$0.61


NT$0.54


NT$0.48


NT$1.16


NT$1.06

- Diluted

  NT$0.51


  NT$0.43


  NT$0.43


  NT$0.94


NT$1.02











Earnings (losses) per equivalent ADS               










- Basic

 US$0.094


US$0.082


 US$0.077


 US$0.177


US$0.170

- Diluted

 US$0.079


 US$0.065


 US$0.070


 US$0.144


 US$0.164











Number of weighted average shares used in
  diluted EPS calculation (in thousands)

8,238,396


8,293,278


8,151,710


8,272,966


7,829,459











Exchange rate (NT$ per US$1)

32.40


33.07


30.84


32.74


31.18











 

 

 

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


For the six months ended


Jun. 30

2016


Mar. 31

2016


Jun. 30

2015


Jun. 30

2016


Jun. 30

2015

Net revenues:










Packaging

31,180


28,597


30,558


59,777


62,104

Testing

6,502


5,995


6,230


12,497


12,410

Direct Material

801


931


865


1,732


1,726

Others

21


20


18


41


36

Total net revenues

38,504


35,543


37,671


74,047


76,276











Cost of revenues

(28,943)


(27,711)


(28,167)


(56,654)


(56,777)

Gross profit

9,561


7,832


9,504


17,393


19,499











Operating expenses:










Research and development

(2,021)


(1,922)


(1,969)


(3,943)


(3,878)

Selling, general and administrative

(2,583)


(2,688)


(2,434)


(5,271)


(4,974)

Total operating expenses

(4,604)


(4,610)


(4,403)


(9,214)


(8,852)

Operating income

4,957


3,222


5,101


8,179


10,647











Net non-operating (expenses) income:










Interest expense - net

(576)


(604)


(489)


(1,180)


(1,019)

Foreign exchange gain (loss)

(306)


834


630


528


1,162

Gain (loss) on valuation of financial assets
  and liabilities

 

828


 

(261)


 

(516)


 

567


 

(1,645)

Gain (loss) on equity-method investments

1,495


1,431


839


2,926


1,455

Others

(397)


124


(336)


(273)


(141)

Total non-operating income (expenses)

1,044


1,524


128


2,568


(188)

Income before tax

6,001


4,746


5,229


10,747


10,459











Income tax expense

(1,266)


(529)


(1,537)


(1,795)


(2,246)

Income from continuing operations and
  before noncontrolling interest

4,735


4,217


3,692


8,952


8,213

Noncontrolling interest

(56)


(54)


(40)


(110)


(92)











Net income attributable to
  
shareholders of the parent

 

4,679


 

4,163


 

3,652


 

8,842


 

8,121











 

 

 


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


For the six months ended


Jun. 30

2016


Mar. 31

2016


Jun. 30

2015


Jun. 30

2016


Jun. 30

2015

Net revenues:










Total net revenues

24,886


24,788


34,576


49,674


62,920











Cost of revenues

(22,326)


(22,781)


(32,370)


(45,107)


(58,449)

Gross profit

2,560


2,007


2,206


4,567


4,471











Operating expenses:










Research and development

(742)


(710)


(783)


(1,452)


(1,444)

Selling, general and administrative

(996)


(920)


(962)


(1,916)


(1,876)

Total operating expenses

(1,738)


(1,630)


(1,745)


(3,368)


(3,320)

Operating income

822


377


461


1,199


1,151











Net non-operating (expenses) income:










Total non-operating income

190


78


423


268


639

Income before tax

1,012


455


884


1,467


1,790











Income tax expense

(205)


(81)


(64)


(286)


(220)

Income from continuing operations and
  
before noncontrolling interest

807


374


820


1,181


1,570

Noncontrolling interest

(204)


(108)


(110)


(312)


(240)











Net income attributable to
  
shareholders of the parent

 

603


 

266


 

710


 

869


 

1,330

 

 

 

Advanced Semiconductor Engineering, Inc.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)




As of Jun. 30, 2016


As of Mar. 31, 2016






Current assets:





Cash and cash equivalents


36,873


45,070

Financial assets - current


3,588


4,358

Notes and accounts receivable


44,680


40,528

Inventories


44,263


44,224

Others


7,567


2,823

Total current assets


136,971

 


137,003

 






Financial assets - non current & Investments -
  equity method


 

50,457


 

52,340

Property plant and equipment


147,650


147,234

Intangible assets


11,898


11,861

Prepaid lease payments


2,402


2,458

Others


5,564


5,594

Total assets


354,942


356,490






Current liabilities:





Short-term borrowings and short-term bills payable


18,319


34,154

Current portion of bonds payable


22,550


14,482

Current portion of long-term borrowings & capital
  lease obligations


 

5,229


 

1,356

Notes and accounts payable


31,340


28,907

Others


43,330


30,530

Total current liabilities


120,768


109,429






Bonds payable


24,652


32,582

Long-term borrowings & capital lease obligations


39,664


36,089

Other liabilities


9,629


9,653

Total liabilities


194,713


187,753






Shareholders of the parent


149,362


158,016






Noncontrolling interest


10,867


10,721






Total liabilities & shareholders' equity


354,942


356,490











Current Ratio


1.13


1.25

Net Debt to Equity


0.44


0.41











 

 

 

[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.

[2]

ATM stands for Semiconductor Assembly, Testing and Material.

[3]

IC packaging services include module assembly services.

IR Contact:

Michelle Jao, Manager

Grace Teng, Manager

Email Contact

Email Contact  

Tel: +1.510.687.2481

Tel: +886.2.6636.5678

http://www.aseglobal.com


To 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-second-quarter-of-2016-300306134.html

SOURCE Advanced Semiconductor Engineering, Inc.

Contact:
Advanced Semiconductor Engineering, Inc.
Web: http://www.aseglobal.com