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
3,
2007
|
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: August 3, 2007 |
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
Freddie
Liu, Vice President
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 YEAR 2007 SECOND-QUARTER
Taipei,
Taiwan,
R.O.C., August
3, 2007 –
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$23,362 million for the second quarter of 2007 (2Q07), down 11%
year-over-year and up 11% sequentially. Net income for the quarter
totaled NT$2,575 million, down from NT$7,319 million in 2Q06 and up from
NT$1,661 million in 1Q07. Diluted earnings per share for the quarter
was NT$0.52 (or US$0.079 per ADS), compared to NT$1.58 for 2Q06 and NT$0.36
for
1Q07.
For
the six months
ended June 30, 2007, the Company reported net revenues of NT$44,455 million
and
net income of NT$4,236 million. Earnings per share for the 1st half of
2007 was
NT$0.92, or US$0.139 per ADS.
RESULTS
OF
OPERATIONS
2Q07
Results Highlights
|
l
|
Net
revenues
contribution from IC packaging operations (including module assembly),
testing operations, and substrate sold to third parties were NT$18,029
million, NT$4,724 million and NT$609 million, respectively, and
each
represented approximately 77%, 20% and 3% respectively, of total
net
revenues for the quarter.
|
|
l
|
Cost
of
revenues was NT$16,958 million, down 10% year-over-year and up
5%
sequentially.
|
|
-
|
As
a
percentage of total net revenues, cost of revenues was 73% in 2Q07,
up
from 71% in 2Q06 and down from 76% in
1Q07.
|
|
-
|
Raw
material
cost totaled NT$6,375 million during the quarter, representing
27% of
total net revenues; compared with NT$5,746 million and 27% of net
revenues
in the previous quarter.
|
|
-
|
Depreciation,
amortization and rental expenses totaled NT$4,108 million during
the
quarter, up 10% year-over-year and up 3% sequentially.
|
|
l
|
Total
operating expenses during 2Q07 were NT$2,516 million, including
NT$720
million in
|
_________________
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
August
3,
2007
| Advanced Semiconductor Engineering, Inc. |
|
|
|
R&D
and
NT$1,796 million in SG&A. Compared with operating expense
of NT$2,226 million in 1Q07, the sequential increase was primarily
attributable to the bonus to employee and compensation to directors
of
subsidiary in 2Q07. Total operating expenses as a percentage of
net revenues for the current quarter were 11%, up from 8% in
2Q06 and
relatively unchanged compared to 1Q07.
|
|
l
|
Operating
profit for the quarter totaled NT$3,888 million, up from NT$2,771
million
in the previous quarter. Operating margin increased from 13% in
1Q07 to 17% in 2Q07.
|
|
l
|
In
terms of
non-operating items,
|
|
-
|
Net
interest
expense was NT$306 million, down from NT$354 million a quarter
ago
primarily due to a decrease in total bank
loans.
|
|
-
|
Net
exchange
gain of NT$147 million was mainly attributable to the exchange
gain in
U.S. dollar-based liabilities due to the depreciation of the US
dollar
against the New Taiwan dollar, and the exchange gain from the appreciation
of the Renminbi against the U.S. dollar.
|
|
-
|
Gain
on
long-term investment of NT$65 million was primarily related to
investment
income of NT$50 million from USI, investment income of NT$16 million
from
Hung Ching Construction, and partially offset by investment loss
from Hung
Ching Kwan Co.
|
|
-
|
Other
non-operating expenses of NT$197 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$291 million, compared
to
income of NT$3,146 million for 2Q06 and expenses of NT$501 million
for
1Q07.
|
|
l
|
Income
before
tax was NT$3,597 million for 2Q07, compared with NT$2,270 million
in the
previous quarter. We recorded an income tax expense of NT$866
million during the quarter, compared with an income tax expense
of NT$320
million in 1Q07. The sequential increase of the income tax
expense was primarily due to the undistributed earnings tax of
subsidiary
in 2Q07. Minority interest adjustment was NT$156 million for
2Q07.
|
|
l
|
In
2Q07, net
income was NT$2,575 million, compared to net income of NT$7,319
million
for 2Q06 and NT$1,661 million for 1Q07. For the six months
ended June 30, 2007, the company reported net income of NT$4,236
million,
compared with net income of NT$10,501 million in the same period
2006.
|
|
l
|
Our
total
number of shares (excluding treasury stock) outstanding at the
end of the
quarter was 4,460,887,738. Our diluted EPS for 2Q07 was
NT$0.52, or US$0.079 per ADS, based on 4,719,868,485 weighted average
number of shares outstanding during the second quarter. EPS for
the first half of 2007 was NT$0.92, or US$0.139 per
ADS.
|
LIQUIDITY
AND CAPITAL RESOURCES
|
l
|
As
of June 30,
2007, our cash and other financial assets totaled NT$26,683 million,
down
from NT$26,712 million on March 31, 2007.
|
|
l
|
Capital
expenditures in 2Q07 totaled US$69 million, of which US$49 million
was for
IC packaging, US$20 million was for testing, and US$0.2 million
was for
interconnect materials.
|
|
l
|
For
the first
half of 2007, the Company spent US$145 million for capital expenditures,
including US$83 million for IC packaging, US$62 million for testing,
and
US$0.3 million for IC substrate.
|
|
l
|
As
of June 30,
2007, we had total bank debts of NT$38,696 million, down from NT$41,620
million as of March 31, 2007. Total bank debts consisted of
NT$4,966 million of revolving working capital loans, NT$2,425 million
of
current portion of long-term debts, NT$22,034 million of long-term
debts
and NT$9,271 million of long-term bonds payable. Total unused
|
|
|
credit
lines
were NT$52,034 million.
|
|
l
|
Current
ratio
as of June 30, 2007 was 1.54, compared to 1.72 as of March 31,
2007 and
net debt to equity ratio was 0.16 as of June 30, 2007.
|
|
l
|
Total
number
of employees was 27,746 as of June 30,
2007.
|
BUSINESS
REVIEW
IC
Packaging Services2
|
l
|
Net
revenues
generated from our IC packaging operations were NT$18,029 million
during
the quarter, down by NT$1,926 million or 10% year-over-year and
up by
NT$1,746 million or 11% sequentially. On a sequential basis,
the increase in packaging net revenue was primarily due to volume
increase.
|
|
l
|
Net
revenues
from advanced substrate and leadframe-based packaging accounted
for 85% of
total IC packaging net revenues during the quarter, up by two percentage
points from the previous quarter.
|
|
l
|
Gross
margin
for our IC packaging operations was 24%, up by 1 percentage point
year-over-year and up by 3 percentage points sequentially.
|
|
l
|
Capital
expenditure for our IC packaging operations amounted to US$49 million
during the quarter, of which US$45 million was for wirebonding
packaging
capacity, and US$4 million was for wafer bumping and flip chip
packaging
equipment.
|
|
l
|
As
of June 30,
2007, there were 7,040 wirebonders in operation, of which 19 wirebonders
were added and 29 wirebonders were disposed of during the
quarter.
|
|
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 one percentage point from the
previous
quarter.
|
Testing
Services
|
l
|
Net
revenues
generated from our testing operations were NT$4,724 million, down
by
NT$976 million or 17% year-over-year and up by NT$400 million or
9%
sequentially. The increase in testing net revenues was
primarily due to an increase in testing volume and average selling
prices
(ASP).
|
|
l
|
Final
testing
contributed 76% to total testing net revenues, down by two percentage
points from the previous quarter. Wafer sort contributed 20% to
total testing net revenues, up by three percentage points from
the
previous quarter. Engineering testing contributed 4% to total
testing net revenues, down by one percentage point from the previous
quarter.
|
|
l
|
Depreciation,
amortization and rental expense associated with our testing operations
amounted to NT$1,567 million, down from NT$1,585 million in 2Q06
and down
from NT$1,573 million in 1Q07.
|
|
l
|
In
2Q07, gross
margin for our testing operations was 35%, down by eight percentage
points
year-over-year and up by six percentage points
sequentially. The sequential increase in gross margin was
primary due to the increase of sales and utilization.
|
|
l
|
Capital
spending on our testing operations amounted to US$20 million during
the
quarter.
|
|
l
|
As
of June 30,
2007, there were 1,385 testers in operations, of which 58 testers
were
added and 38 testers were disposed of during the
quarter.
|
Substrate
Operations
|
l
|
PBGA
substrate
manufactured by ASE amounted NT$2,047 million for the quarter,
up by NT$39
million or 2% from a year-ago quarter, and up by NT$331 million
or 19%
from the
|
|
|
previous
quarter. Of the total output of NT$2,047 million,
NT$608 million was from sales to external customers.
|
|
l
|
Gross
margin
for substrate operations was 21% during the quarter, down by
three
percentage points compared with the year-ago quarter, and up
by three
percentage points compared with the previous quarter.
|
|
l
|
In
2Q07, the
Company’s internal substrate manufacturing operations supplied 54% (by
value) of our total substrate requirements.
|
|
l
|
As
of June 30,
2007, the Company’s PBGA capacity was at 48 million units per
month.
|
Customers
|
l
|
Our
five
largest customers together accounted for approximately 27% of our
total
net revenues in 2Q07, relatively unchanged compared to 2Q06 and
1Q07. No single customer accounted for more than 10% of our
total net revenues.
|
|
l
|
Our
top 10
customers contributed 44% of our total net revenues during the
quarter,
relatively unchanged compared to 2Q06 and up from 42% in
1Q07.
|
|
l
|
Our
customers
that are integrated device manufacturers, or IDMs, accounted for
35% of
our total net revenues in 2Q07, compared to 41% in 2Q06 and
1Q07.
|
About
ASE, Inc.
ASE,
Inc. is the
world's largest independent provider of IC packaging services and, together
with
its subsidiary ASE Test Limited (Nasdaq: ASTSF), 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
Securities Act and Section 21E of the Exchange Act, 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 annual report. 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 2006 Annual Report on Form
20-F filed on June 25, 2007.
Supplemental
Financial Information
Consolidated
Operations
|
Amounts
in NT$
Millions
|
2Q/07
|
1Q/07
|
2Q/06
|
|
Net
Revenues
|
23,362
|
21,093
|
26,287
|
|
Revenues
by
End
Application
|
|||
|
Communication
|
46%
|
45%
|
36%
|
|
Computer
|
22%
|
21%
|
25%
|
|
Automotive
and
Consumers
|
32%
|
32%
|
38%
|
|
Others
|
0%
|
2%
|
1%
|
|
Revenues
by Region
|
|||
|
North
America
|
48%
|
51%
|
53%
|
|
Europe
|
12%
|
12%
|
13%
|
|
Taiwan
|
23%
|
19%
|
18%
|
|
Japan
|
9%
|
10%
|
9%
|
|
Other
Asia
|
8%
|
8%
|
7%
|
IC
Packaging
Services
|
Amounts
in NT$
Millions
|
2Q/07
|
1Q/07
|
2Q/06
|
|
Net
Revenues
|
18,029
|
16,283
|
19,955
|
|
Revenues
by Packaging
Type
|
|||
|
Advanced
substrate & leadframe based
|
85%
|
83%
|
84%
|
|
Traditional
leadframe based
|
5%
|
5%
|
5%
|
|
Module
assembly
|
6%
|
8%
|
6%
|
|
Others
|
4%
|
4%
|
5%
|
|
Capacity
|
|||
|
CapEx
(US$
Millions) *
|
49
|
33
|
53
|
|
Number
of
Wirebonders
|
7,040
|
7,050
|
6,517
|
|
Wafer
Bumping
8” (pcs/month)
|
87,000
|
87,000
|
78,000
|
|
Wafer
Bumping
12” (pcs/month)
|
17,000
|
16,000
|
15,000
|
Testing
Services
|
Amounts
in NT$
Millions
|
2Q/07
|
1Q/07
|
2Q/06
|
|
Net
Revenues
|
4,724
|
4,324
|
5,700
|
|
Revenues
by Testing
Type
|
|||
|
Final
test
|
76%
|
78%
|
76%
|
|
Wafer
sort
|
20%
|
17%
|
19%
|
|
Engineering
test
|
4%
|
5%
|
5%
|
|
Capacity
|
|||
|
CapEx
(US$
Millions) *
|
20
|
43
|
58
|
|
Number
of
Testers
|
1,385
|
1,365
|
1,314
|
*
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
2007
|
Mar.
31
2007
|
Jun.
30
2006
|
Jun.
30
2007
|
Jun.
30
2006
|
|||||
|
Net
revenues:
|
|||||||||
|
IC
Packaging
|
18,029
|
16,283
|
19,955
|
34,312
|
39,261
|
||||
|
Testing
|
4,724
|
4,324
|
5,700
|
9,048
|
10,823
|
||||
|
Others
|
609
|
486
|
632
|
1,095
|
1,040
|
||||
|
Total
net
revenues
|
23,362
|
21,093
|
26,287
|
44,455
|
51,124
|
||||
|
Cost
of
revenues
|
16,958
|
16,096
|
18,787
|
33,054
|
36,989
|
||||
|
Gross
profit
|
6,404
|
4,997
|
7,500
|
11,401
|
14,135
|
||||
|
Operating
expenses:
|
|||||||||
|
Research
and
development
|
720
|
689
|
645
|
1,409
|
1,279
|
||||
|
Selling,
general and administrative
|
1,796
|
1,537
|
1,409
|
3,333
|
2,725
|
||||
|
Total
operating expenses
|
2,516
|
2,226
|
2,054
|
4,742
|
4,004
|
||||
|
Operating
income (loss)
|
3,888
|
2,771
|
5,446
|
6,659
|
10,131
|
||||
|
Net
non-operating (income) expenses:
|
|||||||||
|
Interest
expenses - net
|
306
|
354
|
338
|
660
|
697
|
||||
|
Foreign
exchange loss (gain)
|
(147)
|
(19)
|
20
|
(166)
|
(23)
|
||||
|
Loss
(gain) on
long-term investment
|
(65)
|
(76)
|
(83)
|
(141)
|
(144)
|
||||
|
Others
|
197
|
242
|
(3,421)
|
439
|
(3,073)
|
||||
|
Total
non-operating (income) expenses
|
291
|
501
|
(3,146)
|
792
|
(2,543)
|
||||
|
Income
(loss)
before tax
|
3,597
|
2,270
|
8,592
|
5,867
|
12,674
|
||||
|
Income
tax
expense (benefit)
|
866
|
320
|
435
|
1,186
|
567
|
||||
|
Income
(loss)
from continuing operations
|
2,731
|
1,950
|
8,157
|
4,681
|
12,107
|
||||
|
Cumulative
effect of change in accounting principle
|
-
|
-
|
-
|
-
|
343
|
||||
|
Income
(loss)
before minority interest
|
2,731
|
1,950
|
8,157
|
4,681
|
11,764
|
||||
|
Minority
interest
|
156
|
289
|
838
|
445
|
1,263
|
||||
|
Net
income
(loss)
|
2,575
|
1,661
|
7,319
|
4,236
|
10,501
|
||||
|
Per
share
data:
|
|||||||||
|
Earnings
(loss) per share
|
|||||||||
|
–
Basic
|
NT$0.58
|
NT$0.37
|
NT$1.67
|
NT$0.95
|
NT$
2.39
|
||||
|
–
Diluted
|
NT$0.52
|
NT$0.36
|
NT$1.58
|
NT$0.92
|
NT$
2.27
|
||||
|
Earnings
(loss) per pro forma equivalent ADS
|
|||||||||
|
–
Basic
|
US$0.087
|
US$0.057
|
US$0.259
|
US$0.144
|
US$0.372
|
||||
|
–
Diluted
|
US$0.079
|
US$0.055
|
US$0.245
|
US$0.139
|
US$0.353
|
||||
|
Number
of
weighted average shares used in diluted EPS calculation (in
thousands)
|
4,719,868
|
4,706,551
|
4,673,421
|
4,712,560
|
4,661,704
|
||||
|
Exchange
rate
(NT$ per US$1)
|
33.11
|
32.78
|
32.12
|
32.94
|
32.19
|
||||
Advanced
Semiconductor Engineering, Inc.
Summary
of
Consolidated Balance Sheet Data
(In
NT$
millions)
(Unaudited)
|
As
of Jun. 30,
2007
|
As
of Mar. 31,
2007
|
|||||||||
|
Current
assets:
|
||||||||||
|
Cash
and cash
equivalents
|
13,294
|
14,008
|
||||||||
|
Financial
assets – current
|
13,389
|
12,704
|
||||||||
|
Notes
and
accounts receivable
|
13,812
|
12,401
|
||||||||
|
Inventories
|
5,586
|
5,501
|
||||||||
|
Others
|
3,865
|
4,086
|
||||||||
|
Total
current
assets
|
49,946
|
48,700
|
||||||||
|
Financial
assets – non current
|
4,802
|
5,659
|
||||||||
|
Properties
–
net
|
77,618
|
78,970
|
||||||||
|
Other
assets
|
9,897
|
10,239
|
||||||||
|
Total
assets
|
142,263
|
143,568
|
||||||||
|
Current
liabilities:
|
||||||||||
|
Short-term
debts – revolving credit
|
4,966
|
5,477
|
||||||||
|
Short-term
debts – current portion of long-term
debts
|
2,425
|
2,603
|
||||||||
|
Short-term
debts – current portion of bonds payable
|
0
|
1,375
|
||||||||
|
Notes
and
accounts payable
|
7,616
|
7,553
|
||||||||
|
Others
|
17,383
|
11,322
|
||||||||
|
Total
current
liabilities
|
32,390
|
28,330
|
||||||||
|
Long-term
debts
|
22,034
|
23,957
|
||||||||
|
Long-term
bonds payable
|
9,271
|
8,208
|
||||||||
|
Other
liabilities
|
3,029
|
3,007
|
||||||||
|
Total
liabilities
|
66,724
|
63,502
|
||||||||
|
Minority
interest
|
11,760
|
11,470
|
||||||||
|
Shareholders’
equity
|
63,779
|
68,596
|
||||||||
|
Total
liabilities & shareholders’ equity
|
142,263
|
143,568
|
||||||||
|
Current
Ratio
|
1.54
|
1.72
|
||||||||
|
Net
Debt to
Equity
|
0.16
|
0.19
|
||||||||