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Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year 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 revenues1 of NT$77,128 million for the fourth quarter of 2016 (4Q16), up by 2% year-over-year and up by 6% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,976 million, up from a net income attributable to shareholders of the parent of NT$4,708 million in 4Q15 and up from a net income attributable to shareholders of the parent of NT$5,506 million in 3Q16. Basic earnings per share for the quarter were NT$1.04 (or US$0.164 per ADS), compared to basic earnings per share of NT$0.62 (or US$0.095 per ADS) for 4Q15 and NT$0.72 (or US$0.113 per ADS) for 3Q16. Diluted earnings per share for the quarter were NT$0.86 (or US$0.136 per ADS), compared to diluted earnings per share of NT$0.60 for 4Q15 and NT$0.64 for 3Q16.

For the full year of 2016, the Company reported net revenues of NT$274,884 million and net income attributable to shareholders of the parent of NT$21,692 million. Basic earnings per share for the full year of 2016 were NT$2.83 (or US$0.439 per ADS). Diluted earnings per share for the full year of 2016 were NT$2.35 (or US$0.364 per ADS).

RESULTS OF OPERATIONS

4Q16 Results Highlights -- Consolidated

4Q16 Results Highlights -- IC ATM2

4Q16 Results Highlights -- EMS

2016 Full-Year Results Highlights -- Consolidated

2016 Full-Year Results Highlights -- IC ATM

2016 Full-Year Results Highlights -- EMS

LIQUIDITY AND CAPITAL RESOURCES

BUSINESS REVIEW

Packaging Operations3

Testing Operations

EMS Operations

Substrate Operations

Customers
IC ATM consolidated Basis

EMS Basis

ASE-SPIL TRANSACTION UPDATE

OUTLOOK
Based on our current business outlook and exchange rate assumptions, management projects overall performance for the first quarter of 2017 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

4Q/16

3Q/16

4Q/15

Net Revenues

43,463

43,006

38,406

Revenues by Application




Communication

53%

53%

55%

Computer

10%

12%

12%

Automotive, Consumer & Others

37%

35%

33%

Packaging Operations

Amounts in NT$ Millions             

4Q/16

3Q/16

4Q/15

Net Revenues

35,242

34,832

31,121

Revenues by Packaging Type




Bumping, Flip Chip, WLP
& SiP

32%

33%

33%

IC Wirebonding

57%

57%

58%

Discrete and Others

11%

10%

9%

Capacity




CapEx (US$ Millions)*

87

112

64

Number of Wirebonders

15,897

15,905

15,568

Testing Operations

Amounts in NT$ Millions             

4Q/16

3Q/16

4Q/15

Net Revenues

7,303

7,232

6,356

Revenues by Testing Type




Final test

77%

75%

77%

Wafer sort

20%

21%

19%

Engineering test

3%

4%

4%

Capacity




CapEx (US$ Millions)*

30

57

18

Number of Testers

3,739

3,725

3,435

EMS Operations

* Capital expenditure excludes building construction costs.

Amounts in NT$ Millions

4Q/16

3Q/16

4Q/15

Net Revenues

34,634

31,190

39,347

Revenues by End Application




Communication

53%

51%

64%

Computer

14%

16%

15%

Consumer

20%

20%

11%

Industrial

7%

7%

5%

Automotive

5%

5%

4%

Others

1%

1%

1%

Capacity




CapEx (US$ Millions)*

6

10

5

 

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 year ended


Dec. 31

2016


Sep. 30

2016


Dec. 31

2015


Dec. 31

2016


Dec. 31

2015


Net revenues:











Packaging

33,620


33,449


29,093


125,283


116,607


Testing

7,303


7,231


6,355


27,032


25,192


Direct Material

806


805


798


3,262


3,260


EMS

34,627


31,174


39,301


115,395


138,242


Others

772


125


1


3,912


1


Total net revenues

77,128


72,784


75,548


274,884


283,302













Cost of revenues

(61,751)


(58,671)


(62,279)


(221,690)


(233,167)


Gross profit

15,377


14,113


13,269


53,194


50,135



Operating expenses:











Research and development

(3,091)


(2,947)


(2,814)


(11,391)


(10,938)


Selling, general and administrative

(4,157)


(3,728)


(3,654)


(15,099)


(14,313)


Total operating expenses

(7,248)


(6,675)


(6,468)


(26,490)


(25,251)


Operating income

8,129


7,438


6,801


26,704


24,884













Net non-operating (expenses) income:











Interest expense - net

(451)


(478)


(538)


(1,987)


(2,027)


Foreign exchange gain (loss)

(308)


1,593


428


1,928


(713)


Gain (loss) on valuation of financial assets and liabilities

2,167


(1,998)


(722)


667


2,462


Gain (loss) on equity-method investments4

216


457


142


1,317


121


Others

(73)


(137)


179


(577)


279


Total non-operating income (expenses)

1,551


(563)


(511)


1,348


122


Income before tax

9,680


6,875


6,290


28,052


25,006













Income tax expense

(1,274)


(976)


(1,259)


(5,091)


(4,839)


Income from continuing operations and
  before noncontrolling interest

8,406


5,899


5,030


22,961


20,167


Noncontrolling interest

(430)


(393)


(322)


(1,269)


(970)













Net income attributable to
 shareholders of the parent

 

7,976


 

5,506


 

4,708


 

21,692


 

19,197













Per share data:











Earnings (losses) per share











-- Basic

NT$1.04


  NT$0.72


  NT$0.62


  NT$2.83


  NT$2.51


-- Diluted

NT$0.86


  NT$0.64


  NT$0.60


  NT$2.35


  NT$2.41













Earnings (losses) per equivalent ADS











-- Basic

 US$0.164


 US$0.113


 US$0.095


 US$0.439


 US$0.396


-- Diluted

US$0.136


 US$0.101


 US$0.092


 US$0.364


 US$0.381













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

8,255,714


8,252,369


7,840,049


8,284,187


8,250,064













Exchange rate (NT$ per US$1)

31.62


31.78


32.55


32.22


31.65













 


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 year ended


Dec. 31

2016


Sep. 30

2016


Dec. 31

2015


Dec. 31

2016


Dec. 31

2015

Net revenues:










Packaging

35,242


34,832


31,121


129,851


125,714


Testing

7,303


7,232


6,356


27,032


25,192


Direct Material

898


920


910


3,550


3,564


Others

20


22


19


83


74


Total net revenues

43,463


43,006


38,406


160,516


154,544



Cost of revenues

(31,816)


(32,037)


(28,428)


(120,507)


(114,416)


Gross profit

11,647


10,969


9,978


40,009


40,128













Operating expenses:











Research and development

(2,270)


(2,130)


(2,082)


(8,343)


(8,085)


Selling, general and administrative

(3,005)


(2,646)


(2,583)


(10,922)


(10,439)


Total operating expenses

(5,275)


(4,776)


(4,665)


(19,265)


(18,524)


Operating income

6,372


6,193


5,313


20,744


21,604













Net non-operating (expenses) income:











Interest expense - net

(499)


(526)


(584)


(2,204)


(2,143)


Foreign exchange gain (loss)

(432)


1,504


364


1,600


(311)


Gain (loss) on valuation of financial assets and liabilities

 

2,108


 

(1,987)


 

(622)


 

687


 

2,166


Gain (loss) on equity-method investments4

1,405


1,287


1,051


4,985


2,443


Others

104


(152)


336


(320)


(9)


Total non-operating income (expenses)

2,686


126


545


4,748


2,146


Income before tax

9,058


6,319


5,858


25,492


23,750













Income tax expense

(967)


(719)


(1,099)


(3,481)


(4,361)


Income from continuing operations and
 
before noncontrolling interest

8,091


5,600


4,759


22,011


19,389


Noncontrolling interest

(115)


(94)


(51)


(319)


(192)













Net income attributable to
 
shareholders of the parent

 

7,976


 

5,506


 

4,708


 

21,692


 

19,197


 

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 year ended


Dec. 31

2016


Sep. 30

2016


Dec. 31

2015


Dec. 31

2016


Dec. 31

2015


Net revenues:











Total net revenues

34,634


31,190


39,347


115,498


138,428













Cost of revenues

(31,038)


(28,066)


(36,473)


(104,211)


(128,098)


Gross profit

3,596


3,124


2,874


11,287


10,330













Operating expenses:











Research and development

(840)


(841)


(760)


(3,133)


(2,950)


Selling, general and administrative

(1,099)


(1,053)


(1,038)


(4,068)


(3,774)


Total operating expenses

(1,939)


(1,894)


(1,798)


(7,201)


(6,724)


Operating income

1,657


1,230


1,076


4,086


3,606













Net non-operating (expenses) income:











Total non-operating income

114


224


(64)


606


17


Income before tax

1,771


1,454


1,012


4,692


3,623













Income tax expense

(509)


(249)


(170)


(1,044)


(510)


Income from continuing operations and
 
before noncontrolling interest

1,262


1,205


842


3,648


3,113


Noncontrolling interest

(305)


(289)


(269)


(906)


(781)













Net income attributable to

shareholders of the parent

 

957


 

916


 

573


 

2,742


 

2,332


 

Advanced Semiconductor Engineering, Inc.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)


As of Dec. 31, 2016


As of Sep. 30, 2016










Current assets:









Cash and cash equivalents



38,392




37,661


Financial assets -- current



3,895




1,931


Notes and accounts receivable



51,145




52,010


Inventories



45,626




47,777


Others



3,731




3,990



Total current assets



142,789

 




143,369

 











Financial assets – non current & Investments -- equity method4



 

52,174




 

51,975


Property plant and equipment



143,880




145,209


Intangible assets



12,120




12,217


Prepaid lease payments



2,237




2,382


Others



4,743




5,476


Total assets



357,943




360,628











Current liabilities:









Short-term borrowings



20,955




33,007


Current portion of bonds payable



9,658




9,385


Current portion of long-term borrowings & capital lease obligations



 

6,683




 

6,384


Notes and accounts payable



35,804




37,856


Others



31,153




31,765


Total current liabilities



104,253

 




118,397

 











Bonds payable



27,342




26,872


Long-term borrowings & capital lease obligations



47,013




44,255


Other liabilities



9,765




9,886


Total liabilities



188,373

 




199,410

 


Shareholders of the parent



157,578




150,159











Noncontrolling interest



11,992

 




11,059

 


Total liabilities & shareholders' equity



357,943




360,628




















Current Ratio



1.37

 




1.21

 


Net Debt to Equity



0.41

 




0.50

 


 

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.
4 As of September 30, 2016, we have completed the identification of the difference between the cost of the investment and our share of the net fair value of SPIL's identifiable assets and liabilities. Accordingly, we retrospectively adjusted the provisional amounts recognized at the acquisition dates in September 2015, March and April 2016, respectively.

IR Contact:

Michelle Jao, Manager
Email Contact
Tel: +1.510.687.2481
http://www.aseglobal.com

Grace Teng, Manager
Email Contact
Tel: +886.2.6636.5678

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-fourth-quarter-and-full-year-of-2016-300397155.html

SOURCE Advanced Semiconductor Engineering, Inc.

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