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
August 5,
2008
| Commission File Number 001-16125 | |
|
Advanced
Semiconductor Engineering, Inc.
|
|
|
(
Exact name of Registrant as specified in its charter)
|
|
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26
Chin Third Road
Nantze
Export Processing Zone
Kaoshiung,
Taiwan
Republic
of China
|
|
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(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:
August 5,
2008
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By: | /s/ Joseph Tung | ||
|
|
Name: |
Joseph
Tung
|
||
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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
Freddie Liu, 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 2008
Taipei, Taiwan,
R.O.C., August
5, 2008 – 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 revenues1 of NT$25,610 million for the second quarter of
2008 (2Q08), up 10% year-over-year and up 4% sequentially. Net income
for the quarter totaled NT$2,412
million, down from NT$2,575 million in 2Q07 and up from NT$2,337 million in
1Q08. Diluted earnings per share for the quarter was NT$0.44 (or
US$0.072 per ADS), compared to NT$0.48 for 2Q07 and NT$0.43 for
1Q08.
RESULTS
OF OPERATIONS
2Q08 Results
Highlights
|
l
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Net revenue
contribution from IC packaging operations (including module assembly),
testing operations, and substrates sold to third parties was NT$20,033
million, NT$5,102 million and NT$475 million, respectively, and each
represented approximately 78%, 20% and 2% respectively, of total net
revenues for the quarter.
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l
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Cost of
revenues was NT$19,098 million, up 13% year-over-year and up 3%
sequentially.
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-
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As a
percentage of total net revenues, cost of revenues was 75% in 2Q08, up
from 73% in 2Q07 and relatively unchanged compared to
1Q08.
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-
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Raw material
cost totaled NT$7,695 million during the quarter, representing 30% of
total net revenues, compared with NT$7,301 million and 30% of net revenues
in the previous quarter.
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-
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Depreciation,
amortization and rental expenses totaled NT$3,972 million during the
quarter, down 4% year-over-year and up 1%
sequentially.
|
|
l
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Total
operating expenses during 2Q08 were NT$2,928 million, including NT$980
million in R&D and NT$1,948 million in SG&A. Compared
with operating expenses of NT$2,836 million in 1Q08, the sequential
increase was primarily attributable to bonuses paid
to
|
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 review 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.
1
|
|
employees and
compensation to directors and supervisors of one of our subsidiaries in
2Q08. Total
operating expenses as a percentage of net revenues for the current quarter were 11%, relatively unchanged compared with 2Q07 and
1Q08.
|
|
l
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Operating profit for the quarter totaled
NT$3,584 million, up from NT$3,352 million in the previous
quarter. Operating margin was 14% in 2Q08 and remained unchanged compared with the previous quarter.
|
|
l
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In terms of non-operating
items:
|
|
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-
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Net interest expense was
NT$268 million, down from NT$275 million a quarter ago.
|
|
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-
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Net exchange gain of NT$294 million was primarily attributable to exchange
gains from the appreciation of the
Renminbi against the U.S. dollar.
|
|
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-
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Gain on
long-term investment of NT$28 million was primarily attributable to
investment income of NT$32 million from USI and investment loss of NT$3
million from Hung Ching
Construction.
|
|
|
-
|
Other
non-operating expenses of NT$76 million were primarily related to loss
from inventory provision adjustment and other miscellaneous
expenses. Together with other non-operating expenses, total
non-operating expenses for the quarter were NT$22 million, compared to
NT$292 million for 2Q07 and NT$69 million for
1Q08.
|
|
l
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Income before
tax was NT$3,562 million for 2Q08, compared with NT$3,283 million in the
previous quarter. We recorded an income tax expense of NT$779
million during the quarter, compared with an income tax expense of NT$411
million in 1Q08. The sequential increase of the income tax
expense was primarily due to the undistributed earnings tax of one of our
subsidiaries in 2Q08. Minority interest was NT$371 million for
2Q08, down from NT$535 million in the previous quarter, primarily due to
the completion of the ASE Test privatization transaction at the end of
May.
|
|
l
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In 2Q08, net
income was NT$2,412 million, compared to net income of NT$2,575 million
for 2Q07 and NT$2,337 million for
1Q08.
|
|
l
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Our total
number of shares outstanding at the end of the quarter was 5,476,949,209,
excluding treasury stock. Our diluted EPS for 2Q08 was NT$0.44,
or US$0.072 per ADS, based on 5,494,051,808 weighted average number of
shares outstanding in 2Q08.
|
LIQUIDITY
AND CAPITAL RESOURCES
|
l
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As of June 30,
2008, our cash and other financial assets totaled NT$32,648 million,
compared to NT$29,127 million on March 31,
2008.
|
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l
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Capital
expenditures in 2Q08 totaled US$130 million, of which US$71 million was
used for IC packaging, US$56 million was used for testing, and US$3
million was used for interconnect
materials.
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|
l
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As of June 30,
2008, we had total bank debts of NT$64,687 million, compared to NT$38,794
million as of March 31, 2008. The increase in our bank debt was
mainly attributable to the financing of the ASE Test
privatization. Total bank debts consisted of NT$12,456 million
of revolving working capital loans, NT$6,162 million of the current
portion of long-term debts, NT$1,375 million of current portion of bonds
payable, NT$40,663 million of long-term debts and NT$4,031 million of
long-term bonds payable. Total unused credit lines were
NT$69,692 million.
|
|
l
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Current ratio
as of June 30, 2008 was 1.24, compared to 1.57 as of March 31,
2008. Net debt to equity ratio was 0.57 as of June 30,
2008.
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l
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Total number
of employees was approximately 30,363 as of June 30,
2008.
|
2
BUSINESS
REVIEW
IC Packaging
Services2
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l
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Net revenues
generated from our IC packaging operations were NT$20,033 million during
the quarter, up by NT$2,004 million or 11% year-over-year and up by NT$806
million or 4% sequentially. On a sequential basis, the
increase in packaging net revenue was primarily due to an increase in sales volume.
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l
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Net revenues
from advanced substrate and leadframe-based packaging accounted for 84% of
total IC packaging net revenues during the quarter, which equaled the
previous quarter.
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l
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Gross margin
for our IC packaging operations was 21%, down by 3% year-over-year and
unchanged sequentially.
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l
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Capital
expenditures for our IC packaging operations amounted to US$71 million
during the quarter, of which US$61 million was used for wirebonding
packaging capacity, and US$10 million was used for wafer bumping and flip
chip packaging equipment.
|
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l
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As of June 30,
2008, there were 8,426 wirebonders in operation. 358 wirebonders were
added, of which 119 wirebonders were obtained from the acquisition of ASE
Weihai Inc. and 58 wirebonders were disposed of during the
quarter.
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l
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Net revenues
from flip chip packages and wafer bumping services accounted for 10% of
total packaging net revenues, up by 1 percentage point from the previous
quarter.
|
Testing
Services
|
l
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Net revenues generated from
our testing operations were NT$5,102 million, up by NT$377 million or 8% year-over-year and up
by
NT$207 million
or 4%
sequentially.
|
|
l
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Final testing
contributed 77% to total testing net revenues, and stay unchanged versus
previous quarter. Wafer sort contributed 20% to total testing
net revenues, up by 1 percentage points from the previous
quarter. Engineering testing contributed 3% to total testing
net revenues, down by 1 percentage point from the previous
quarter.
|
|
l
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Depreciation,
amortization and rental expense associated with our testing operations
amounted to NT$1,475 million, down from NT$1,574 million in 2Q07 and up
from NT$1,455 million in 1Q08.
|
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l
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In 2Q08, gross
margin for our testing operations was 38%, up by 3 percentage points
year-over-year and up by 1 percentage point
sequentially.
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l
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Capital
spending on our testing operations amounted to US$56 million during the
quarter.
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As of June 30,
2008, there were 1,622 testers in operations. 130 testers were
added, of which 52 testers were obtained from the acquisition of ASE
Weihai Inc. and 63 testers were disposed of during the
quarter.
|
Substrate
Operations
|
l
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PBGA substrate
manufactured by ASE amounted to NT$2,161 million for the quarter, up by
NT$114 million or 6% from a year-ago quarter, and up by NT$93 million or
5% from the previous quarter. Of the
total output of NT$2,161 million, NT$475 million was from sales to
external customers.
|
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l
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Gross margin
for substrate operations was 15% during the quarter, down by 6 percentage
points from a year ago quarter and unchanged from the previous
quarter.
|
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l
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In 2Q08, the
Company’s internal substrate manufacturing operations supplied 58% (by
value) of our total substrate
requirements.
|
2 IC
packaging services include module assembly services.
3
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l
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As of June 30,
2008, the Company’s PBGA capacity was at 52 million units per month.
|
Customers
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l
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Our five
largest customers together accounted for approximately 28% of our total
net revenues in 2Q08, compared to 27% in 2Q07 and in 1Q08. No
single customer accounted for more than 10% of our total net
revenues.
|
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l
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Our top 10
customers contributed 46% of our total net revenues during the quarter,
compared to 44% in 2Q07 and 1Q08.
|
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l
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Our customers
that are integrated device manufacturers, or IDMs, accounted for 40% of
our total net revenues during the quarter, compared to 39% in 2Q07 and 42%
in 1Q08.
|
About
ASE, Inc.
ASE,
Inc. is the world's largest independent provider of IC packaging services and,
together with its subsidiary ASE Test Limited, the world's largest independent
provider of IC 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., CSR plc, Freescale Semiconductor, Inc.,
MediaTek Inc., NEC Corporation, NVIDIA Corporation, NXP Semiconductors, Qualcomm
Incorporated, RF Micro Devices Inc., STMicroelectronics N.V. and VIA
Technologies, Inc. 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 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. We were not involved in the preparation
of these projections. 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 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; international business
activities; our business strategy; our future expansion plans and capital
expenditures; the strained relationship between the ROC and the PRC; general
economic and political conditions; 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 2007 Annual Report on Form
20-F filed on June 30, 2008, as amended.
4
Supplemental
Financial Information
Consolidated
Operations
|
Amounts in NT$
Millions
|
2Q/08
|
1Q/08
|
2Q/07
|
|
Net Revenues
|
25,610
|
24,695
|
23,362
|
|
Revenues by End
Application
|
|||
|
Communication
|
45%
|
45%
|
46%
|
|
Computer
|
24%
|
25%
|
22%
|
|
Automotive and
Consumers
|
31%
|
30%
|
32%
|
|
Others
|
0%
|
0%
|
0%
|
|
Revenues
by Region
|
|||
|
North
America
|
50%
|
50%
|
48%
|
|
Europe
|
9%
|
11%
|
12%
|
|
Taiwan
|
21%
|
23%
|
23%
|
|
Japan
|
9%
|
8%
|
9%
|
|
Other
Asia
|
11%
|
8%
|
8%
|
IC
Packaging Services
|
Amounts in NT$
Millions
|
2Q/08
|
1Q/08
|
2Q/07
|
|
Net Revenues
|
20,033
|
19,227
|
18,029
|
|
Revenues by Packaging
Type
|
|||
|
Advanced
substrate & leadframe based
|
84%
|
84%
|
85%
|
|
Traditional
leadframe based
|
4%
|
4%
|
5%
|
|
Module
assembly
|
4%
|
5%
|
6%
|
|
Others
|
8%
|
7%
|
4%
|
|
Capacity
|
|||
|
CapEx (US$
Millions) *
|
71
|
78
|
49
|
|
Number of
Wirebonders
|
8,426
|
8,126
|
7,040
|
Testing
Services
|
Amounts in NT$
Millions
|
2Q/08
|
1Q/08
|
2Q/07
|
|
Net Revenues
|
5,102
|
4,895
|
4,724
|
|
Revenues by Testing
Type
|
|||
|
Final
test
|
77%
|
77%
|
76%
|
|
Wafer
sort
|
20%
|
19%
|
20%
|
|
Engineering
test
|
3%
|
4%
|
4%
|
|
Capacity
|
|||
|
CapEx (US$
Millions) *
|
56
|
44
|
20
|
|
Number of
Testers
|
1,622
|
1,555
|
1,385
|
*
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 ended
|
For the period
ended
|
||||||||||||||
|
Jun.
30
2008
|
Mar.
31
2008
|
Jun.
30
2007
|
Jun.
30
2008
|
Jun.
30
2007
|
|||||||||||
|
Net
revenues:
|
|||||||||||||||
|
IC
Packaging
|
20,033 | 19,227 | 18,029 | 39,260 | 34,312 | ||||||||||
|
Testing
|
5,102 | 4,895 | 4,724 | 9,997 | 9,049 | ||||||||||
|
Others
|
475 | 573 | 609 | 1,048 | 1,094 | ||||||||||
|
Total net
revenues
|
25,610 | 24,695 | 23,362 | 50,305 | 44,455 | ||||||||||
|
Cost of
revenues
|
19,098 | 18,507 | 16,958 | 37,605 | 33,055 | ||||||||||
|
Gross
profit
|
6,512 | 6,188 | 6,404 | 12,700 | 11,400 | ||||||||||
|
Operating
expenses:
|
|||||||||||||||
|
Research and
development
|
980 | 1,096 | 720 | 2,076 | 1,409 | ||||||||||
|
Selling,
general and administrative
|
1,948 | 1,740 | 1,795 | 3,688 | 3,332 | ||||||||||
|
Total
operating expenses
|
2,928 | 2,836 | 2,515 | 5,764 | 4,741 | ||||||||||
|
Operating
income
|
3,584 | 3,352 | 3,889 | 6,936 | 6,659 | ||||||||||
|
Net
non-operating (income) expenses:
|
|||||||||||||||
|
Interest
expenses - net
|
268 | 275 | 306 | 543 | 659 | ||||||||||
|
Foreign
exchange gain
|
(294 | ) | (301 | ) | (147 | ) | (595 | ) | (165 | ) | |||||
|
Gain on
long-term investment
|
(28 | ) | (104 | ) | (65 | ) | (133 | ) | (141 | ) | |||||
|
Others
|
76 | 199 | 198 | 276 | 439 | ||||||||||
|
Total
non-operating expenses
|
22 | 69 | 292 | 91 | 792 | ||||||||||
|
Income before
tax
|
3,562 | 3,283 | 3,597 | 6,845 | 5,867 | ||||||||||
|
Income tax
expense
|
779 | 411 | 866 | 1,191 | 1,185 | ||||||||||
|
Income from
continuing operations and before minor interest
|
2,783 | 2,872 | 2,731 | 5,654 | 4,682 | ||||||||||
|
Minority
interest
|
371 | 535 | 156 | 906 | 446 | ||||||||||
|
Net
income
|
2,412 | 2,337 | 2,575 | 4,748 | 4,236 | ||||||||||
|
Per share
data:
|
|||||||||||||||
|
Earnings
(loss) per share
|
|||||||||||||||
|
–
Basic
|
NT$0.46 | NT$0.44 | NT$0.50 | NT$0.90 | NT$0.82 | ||||||||||
|
–
Diluted
|
NT$0.44 | NT$0.43 | NT$0.48 | NT$0.86 | NT$0.79 | ||||||||||
|
Earnings
(loss) per equivalent ADS
|
|||||||||||||||
|
–
Basic
|
US$0.075 | US$0.070 | US$0.075 | US$0.146 | US$0.125 | ||||||||||
|
–
Diluted
|
US$0.072 | US$0.067 | US$0.073 | US$0.138 | US$0.120 | ||||||||||
|
Number of
weighted average shares used in diluted EPS calculation (in
thousands)
|
5,494,052 | 5,460,822 | 5,433,905 | 5,479,984 | 5,463,437 | ||||||||||
|
Exchange rate
(NT$ per US$1)
|
30.36 | 31.74 | 33.11 | 31.05 | 32.94 | ||||||||||
Advanced
Semiconductor Engineering, Inc.
Summary
of Consolidated Balance Sheet Data
(In
NT$ millions)
(Unaudited)
|
As of
Jun. 30, 2008
|
As of Mar. 31,
2008
|
|||||||
|
Current
assets:
|
||||||||
|
Cash and cash
equivalents
|
23,305
|
16,589
|
||||||
|
Financial
assets – current
|
9,343
|
12,538
|
||||||
|
Notes and
accounts receivable
|
17,633
|
16,994
|
||||||
|
Inventories
|
5,598
|
5,439
|
||||||
|
Others
|
3,232
|
4,312
|
||||||
|
Total current
assets
|
59,111
|
55,872
|
||||||
|
Financial
assets – non current
|
4,568
|
4,818
|
||||||
|
Properties –
net
|
83,209
|
81,297
|
||||||
|
Others
|
17,432
|
9,118
|
||||||
|
Total
assets
|
164,320
|
151,105
|
||||||
|
Current
liabilities:
|
||||||||
|
Short-term
debts – revolving credit
|
12,456
|
10,573
|
||||||
|
Short-term
debts – current portion of long-term
debts
|
6,162
|
6,060
|
||||||
|
Short-term
debts – current portion of bonds payable
|
1,375
|
1,375
|
||||||
|
Notes and
accounts payable
|
8,339
|
7,762
|
||||||
|
Others
|
19,492
|
9,785
|
||||||
|
Total current
liabilities
|
47,824
|
35,555
|
||||||
|
Long-term
debts
|
40,663
|
16,602
|
||||||
|
Long-term
bonds payable
|
4,031
|
4,184
|
||||||
|
Other
liabilities
|
2,808
|
2,949
|
||||||
|
Total
liabilities
|
95,326
|
59,290
|
||||||
|
Minority
interest
|
2,980
|
14,958
|
||||||
|
Shareholders’
equity
|
66,014
|
76,857
|
||||||
|
Total
liabilities & shareholders’ equity
|
164,320
|
151,105
|
||||||
|
Current
Ratio
|
1.24
|
1.57
|
||||||
|
Net Debt to
Equity
|
0.57
|
0.11
|
||||||