Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed a Form 6-K on April 10, 2017, reporting unaudited consolidated net revenues for March 2017 and the first quarter (Q1) of 2017. ASE is a leading provider of outsourced semiconductor packaging, testing, and electronic manufacturing services.
Key Financial Metrics
Consolidated Net Revenues
| Period | Currency | Current Period | Prior Month/Quarter | Prior Year Period | Sequential Change | YoY Change |
|---|---|---|---|---|---|---|
| March 2017 | NT$ Million | 22,768 | 21,096 | 23,550 | +7.9% | -3.3% |
| March 2017 | US$ Million | 740 | 681 | 715 | +8.6% | +3.4% |
| Q1 2017 | NT$ Million | 66,551 | 77,129 | 62,371 | -13.7% | +6.7% |
| Q1 2017 | US$ Million | 2,133 | 2,439 | 1,887 | -12.6% | +13.0% |
ATM Assembly, Testing, and Material Business
| Period | Currency | Current Period | Prior Month/Quarter | Prior Year Period | Sequential Change | YoY Change |
|---|---|---|---|---|---|---|
| March 2017 | NT$ Million | 13,303 | 12,302 | 12,385 | +8.1% | +7.4% |
| March 2017 | US$ Million | 432 | 397 | 376 | +8.8% | +14.9% |
| Q1 2017 | NT$ Million | 38,385 | 43,463 | 35,543 | -11.7% | +8.0% |
| Q1 2017 | US$ Million | 1,230 | 1,375 | 1,075 | -10.5% | +14.5% |
Note: The filing does not provide data on profit, cash flow, margins, debt, or liquidity.
Material Changes
- Sequential Growth: March 2017 consolidated revenues increased 7.9% sequentially in NT$ and 8.6% in US$ compared to February 2017.
- Quarterly Decline: Q1 2017 consolidated revenues decreased 13.7% sequentially in NT$ and 12.6% in US$ compared to Q4 2016, reflecting typical seasonality.
- Year-Over-Year Performance: Q1 2017 revenues grew 6.7% in NT$ and 13.0% in US$ compared to Q1 2016. The US$ growth was significantly higher due to foreign exchange fluctuations.
- ATM Segment: The ATM business showed stronger YoY growth in US$ terms (+14.5% for Q1) compared to consolidated figures, driven by currency effects.
Guidance, Outlook, and Risks
The filing contains a Safe Harbor Notice regarding forward-looking statements. Management does not provide specific numerical guidance in this document but highlights several risks that could cause actual results to differ materially:
- Market Conditions: Cyclicality and market conditions in the semiconductor and electronic industries.
- Regulatory Environment: Compliance with environmental regulations and resolution of liabilities.
- Competition and Technology: Highly competitive industry and the need to introduce new technologies.
- Acquisition Uncertainty: Risks associated with completing the acquisition of 100% of Siliconware Precision Industries Co., Ltd. shares.
- Geopolitical and Economic Factors: Strained relations between the Republic of China and the People's Republic of China, general economic conditions, and foreign currency exchange rate fluctuations.
Investor Verification Checklist
- Verify the impact of foreign exchange rates on reported US$ revenue growth versus NT$ growth.
- Confirm the status and timeline of the proposed acquisition of Siliconware Precision Industries Co., Ltd.
- Review the full 2015 Annual Report on Form 20-F for detailed risk factors and historical financial context.
- Monitor subsequent filings for profit margins, cash flow, and debt levels, which are not included in this monthly revenue report.