TAIPEI, , July 28, 2017 /PRNewswire/ -- Advanced Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE: ASX) ("We", "ASE", or the "Company"), among the world's leading companies in semiconductor packaging and testing, today reported unaudited net revenues1 of NT$66,026 million for the second quarter of 2017 (2Q17), up by 5% year-over-year and down by 1% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,847 million, up from a net income attributable to shareholders of the parent of NT$4,302 million in 2Q16 and up from a net income attributable to shareholders of the parent of NT$2,559 million in 1Q17. Basic earnings per share for the quarter were NT$0.97 (or US$0.160 per ADS), compared to basic earnings per share of NT$0.56 for 2Q16 and NT$0.33 for 1Q17. Diluted earnings per share for the quarter were NT$0.89 (or US$0.148 per ADS), compared to diluted earnings per share of NT$0.47 for 2Q16 and NT$0.29 for 1Q17.
1 All financial information presented in this press release is unaudited, consolidated and prepared in accordance with Taiwan-IFRS (International Financial Reporting Standards as endorsed for use in the R.O.C.). Such financial information is generated internally by us and has not been subjected to the same review and scrutiny, including internal auditing procedures and audit by our independent auditors, to which we subject our audited consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. Any evaluation of the financial information presented in this press release should also take into account our published audited consolidated financial statements and the notes to those statements. In addition, the financial information presented is not necessarily indicative of our results of operations for any future period. |
RESULTS OF OPERATIONS
2Q17 Results Highlights - Consolidated
2Q17 Results Highlights - IC ATM2
2 ATM stands for Semiconductor Assembly, Testing and Material. |
2Q17 Results Highlights - EMS
LIQUIDITY AND CAPITAL RESOURCES
BUSINESS REVIEW
Packaging Operations3
3 IC packaging services include module assembly services. |
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 2017 to be as follows:
About ASE, Inc.
ASE is among the world's leading companies in semiconductor packaging and testing sector, 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. 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 share exchange contemplated by a joint share exchange agreement between Siliconware Precision Industries Co., Ltd. and us; 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 2016 Annual Report on Form 20-F filed on April 21, 2017.
Supplemental Financial Information
IC ATM Consolidated Operations |
|||
Amounts in NT$ Millions |
2Q/17 |
1Q/17 |
2Q/16 |
Net Revenues |
39,048 |
38,385 |
38,504 |
Revenues by Application |
|||
Communication |
48% |
50% |
52% |
Computer |
11% |
11% |
12% |
Automotive, Consumer & Others |
41% |
39% |
36% |
Packaging Operations |
|||
Amounts in NT$ Millions |
2Q/17 |
1Q/17 |
2Q/16 |
Net Revenues |
31,718 |
31,061 |
31,180 |
Revenues by Packaging Type |
|||
Bumping, Flip Chip, WLP & |
31% |
31% |
31% |
IC Wirebonding |
58% |
58% |
61% |
Discrete and Others |
11% |
11% |
8% |
Capacity |
|||
CapEx (US$ Millions)* |
161 |
120 |
136 |
Number of Wirebonders |
16,118 |
15,963 |
15,920 |
Testing Operations |
|||
Amounts in NT$ Millions |
2Q/17 |
1Q/17 |
2Q/16 |
Net Revenues |
6,350 |
6,365 |
6,502 |
Revenues by Testing Type |
|||
Final test |
83% |
81% |
77% |
Wafer sort |
14% |
15% |
20% |
Engineering test |
3% |
4% |
3% |
Capacity |
|||
CapEx (US$ Millions)* |
47 |
31 |
107 |
Number of Testers |
3,796 |
3,782 |
3,629 |
EMS Operations |
|||
Amounts in NT$ Millions |
2Q/17 |
1Q/17 |
2Q/16 |
Net Revenues |
28,248 |
29,363 |
24,886 |
Revenues by End Application |
|||
Communication |
48% |
49% |
46% |
Computer |
17% |
15% |
20% |
Consumer |
20% |
22% |
18% |
Industrial |
8% |
7% |
8% |
Automotive |
6% |
6% |
7% |
Others |
1% |
1% |
1% |
Capacity |
|||
CapEx (US$ Millions)* |
4 |
3 |
4 |
* 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 2017 |
Mar. 31 2017 |
Jun. 30 2016 |
Jun. 30 2017 |
Jun. 30 2016 |
|||||
Net revenues: |
|||||||||
Packaging |
30,494 |
29,806 |
30,178 |
60,300 |
58,214 |
||||
Testing |
6,350 |
6,365 |
6,503 |
12,715 |
12,498 |
||||
Direct Material |
928 |
892 |
759 |
1,820 |
1,651 |
||||
EMS |
28,210 |
29,355 |
24,845 |
57,565 |
49,594 |
||||
Others |
44 |
133 |
316 |
177 |
3,015 |
||||
Total net revenues |
66,026 |
66,551 |
62,601 |
132,577 |
124,972 |
||||
Cost of revenues4 |
(53,910) |
(54,576) |
(50,347) |
(108,486) |
(101,270) |
||||
Gross profit |
12,116 |
11,975 |
12,254 |
24,091 |
23,702 |
||||
Operating expenses: |
|||||||||
Research and development |
(2,952) |
(2,763) |
(2,745) |
(5,715) |
(5,353) |
||||
Selling, general and administrative4 |
(3,945) |
(3,987) |
(3,620) |
(7,932) |
(7,255) |
||||
Total operating expenses |
(6,897) |
(6,750) |
(6,365) |
(13,647) |
(12,608) |
||||
Operating income |
5,219 |
5,225 |
5,889 |
10,444 |
11,094 |
||||
Net non-operating (expenses) income: |
|||||||||
Interest expense - net |
(365) |
(435) |
(532) |
(800) |
(1,059) |
||||
Foreign exchange gain (loss) |
(201) |
2,891 |
(238) |
2,690 |
643 |
||||
Gain (loss) on valuation of financial assets |
800 |
(3,964) |
858 |
(3,164) |
498 |
||||
Gain (loss) on equity-method investments4,5 |
253 |
(171) |
541 |
82 |
645 |
||||
Others |
5,684 |
299 |
(438) |
5,983 |
(367) |
||||
Total non-operating income (expenses) |
6,171 |
(1,380) |
191 |
4,791 |
360 |
||||
Income before tax |
11,390 |
3,845 |
6,080 |
15,235 |
11,454 |
||||
Income tax expense |
(3,207) |
(886) |
(1,523) |
(4,093) |
(2,841) |
||||
Income from continuing operations and |
8,183 |
2,959 |
4,557 |
11,142 |
8,613 |
||||
Non-controlling interest |
(336) |
(400) |
(255) |
(736) |
(429) |
||||
Net income attributable to shareholders of the parent |
7,847 |
2,559 |
4,302 |
10,406 |
8,184 |
||||
Per share data: |
|||||||||
Earnings (losses) per share |
|||||||||
– Basic |
NT$0.97 |
NT$0.33 |
NT$0.56 |
NT$1.32 |
NT$1.07 |
||||
– Diluted |
NT$0.89 |
NT$0.29 |
NT$0.47 |
NT$1.22 |
NT$0.87 |
||||
Earnings (losses) per equivalent ADS |
|||||||||
– Basic |
US$0.160 |
US$0.053 |
US$0.087 |
US$0.214 |
US$0.163 |
||||
– Diluted |
US$0.148 |
US$0.047 |
US$0.072 |
US$0.199 |
US$0.132 |
||||
Number of weighted average shares used in |
8,604,623 |
7,931,315 |
8,238,396 |
8,121,989 |
8,272,966 |
||||
Exchange rate (NT$ per US$1) |
30.18 |
31.20 |
32.40 |
30.69 |
32.74 |
4 As of June 30, 2017, we have completed the identification of the difference between the cost of the investment and our share of the net fair value of subsidiary and associates' identifiable assets and liabilities. Accordingly, we retrospectively adjusted the provisional amounts recognized at the acquisition dates in May , July and November 2016, respectively. |
Advanced Semiconductor Engineering, Inc. |
|||||||||
Summary of Consolidated Statement of Comprehensive Income Data - IC ATM |
|||||||||
(In NT$ millions, except per share data) |
|||||||||
(Unaudited) |
|||||||||
For the three months ended |
For the six months ended |
||||||||
Jun. 30 2017 |
Mar. 31 2017 |
Jun. 30 2016 |
Jun. 30 2017 |
Jun. 30 2016 |
|||||
Net revenues: |
|||||||||
Packaging |
31,718 |
31,061 |
31,180 |
62,779 |
59,777 |
||||
Testing |
6,350 |
6,365 |
6,502 |
12,715 |
12,497 |
||||
Direct Material |
960 |
935 |
801 |
1,895 |
1,732 |
||||
Others |
20 |
24 |
21 |
44 |
41 |
||||
Total net revenues |
39,048 |
38,385 |
38,504 |
77,433 |
74,047 |
||||
Cost of revenues |
(30,021) |
(29,552) |
(28,945) |
(59,573) |
(56,656) |
||||
Gross profit |
9,027 |
8,833 |
9,559 |
17,860 |
17,391 |
||||
Operating expenses: |
|||||||||
Research and development |
(2,113) |
(2,000) |
(2,021) |
(4,113) |
(3,943) |
||||
Selling, general and administrative |
(2,812) |
(2,850) |
(2,623) |
(5,662) |
(5,311) |
||||
Total operating expenses |
(4,925) |
(4,850) |
(4,644) |
(9,775) |
(9,254) |
||||
Operating income |
4,102 |
3,983 |
4,915 |
8,085 |
8,137 |
||||
Net non-operating (expenses) income: |
|||||||||
Interest expense - net |
(443) |
(498) |
(576) |
(941) |
(1,180) |
||||
Foreign exchange gain (loss) |
(162) |
2,868 |
(306) |
2,706 |
528 |
||||
Gain (loss) on valuation of financial assets |
522 |
(4,072) |
828 |
(3,550) |
567 |
||||
Gain (loss) on equity-method investments4,5 |
5,410 |
601 |
1,144 |
6,011 |
2,293 |
||||
Others |
33 |
325 |
(397) |
358 |
(273) |
||||
Total non-operating income (expenses) |
5,360 |
(776) |
693 |
4,584 |
1,935 |
||||
Income before tax |
9,462 |
3,207 |
5,608 |
12,669 |
10,072 |
||||
Income tax expense |
(1,541) |
(570) |
(1,266) |
(2,111) |
(1,795) |
||||
Income from continuing operations and |
7,921 |
2,637 |
4,342 |
10,558 |
8,277 |
||||
Non-controlling interest |
(74) |
(78) |
(40) |
(152) |
(93) |
||||
Net income attributable to |
7,847 |
2,559 |
4,302 |
10,406 |
8,184 |
||||
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 2017 |
Mar. 31 2017 |
Jun. 30 2016 |
Jun. 30 2017 |
Jun. 30 2016 |
|||||
Net revenues: |
|||||||||
Total net revenues |
28,248 |
29,363 |
24,886 |
57,611 |
49,674 |
||||
Cost of revenues |
(25,127) |
(26,249) |
(22,326) |
(51,376) |
(45,107) |
||||
Gross profit |
3,121 |
3,114 |
2,560 |
6,235 |
4,567 |
||||
Operating expenses: |
|||||||||
Research and development |
(859) |
(780) |
(742) |
(1,639) |
(1,452) |
||||
Selling, general and administrative |
(1,126) |
(1,101) |
(996) |
(2,227) |
(1,916) |
||||
Total operating expenses |
(1,985) |
(1,881) |
(1,738) |
(3,866) |
(3,368) |
||||
Operating income |
1,136 |
1,233 |
822 |
2,369 |
1,199 |
||||
Net non-operating (expenses) income: |
|||||||||
Total non-operating income |
366 |
217 |
190 |
583 |
268 |
||||
Income before tax |
1,502 |
1,450 |
1,012 |
2,952 |
1,467 |
||||
Income tax expense |
(284) |
(303) |
(205) |
(587) |
(286) |
||||
Income from continuing operations and |
1,218 |
1,147 |
807 |
2,365 |
1,181 |
||||
Non-controlling interest |
(289) |
(313) |
(204) |
(602) |
(312) |
||||
Net income attributable to |
929 |
834 |
603 |
1,763 |
869 |
Advanced Semiconductor Engineering, Inc. |
|||||
Summary of Consolidated Balance Sheet Data |
|||||
(In NT$ millions) |
|||||
(Unaudited) |
|||||
As of Jun. 30, 2017 |
As of Mar. 31, 2017 |
||||
Current assets: |
|||||
Cash and cash equivalents |
43,891 |
42,474 |
|||
Financial assets – current |
4,138 |
3,720 |
|||
Notes and accounts receivable |
46,156 |
43,728 |
|||
Inventories |
42,818 |
42,616 |
|||
Others |
10,001 |
3,835 |
|||
Total current assets |
147,004 |
136,373 |
|||
Financial assets - non current & Investments - |
50,878 |
52,183 |
|||
Property plant and equipment |
140,378 |
140,072 |
|||
Intangible assets |
11,885 |
11,907 |
|||
Prepaid lease payments |
2,065 |
2,081 |
|||
Others |
4,413 |
4,901 |
|||
Total assets |
356,623 |
347,517 |
|||
Current liabilities: |
|||||
Short-term borrowings |
14,209 |
13,400 |
|||
Current portion of bonds payable |
15,236 |
15,179 |
|||
Current portion of long-term borrowings & capital |
7,454 |
7,218 |
|||
Notes and accounts payable |
32,471 |
30,621 |
|||
Others |
43,765 |
32,173 |
|||
Total current liabilities |
113,135 |
98,591 |
|||
Bonds payable |
25,845 |
28,476 |
|||
Long-term borrowings & capital lease obligations |
28,823 |
33,639 |
|||
Other liabilities |
9,757 |
10,053 |
|||
Total liabilities |
177,560 |
170,759 |
|||
Shareholders of the parent |
166,838 |
164,840 |
|||
Non-controlling interest |
12,225 |
11,918 |
|||
Total liabilities & shareholders' equity |
356,623 |
347,517 |
|||
Current Ratio |
1.30 |
1.38 |
|||
Net Debt to Equity |
0.24 |
0.29 |
|||
IR Contact:
Iris Wu, Manager Tel: +886.2.6636.5678 |
Grace Teng, Manager Tel: +886.2.6636.5678
|
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