Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed this Form 6-K on January 6, 2011, to report unaudited consolidated net revenues for December 2010 and the fourth quarter of 2010. The company is a leading provider of outsourced semiconductor packaging and testing services.
Key Financial Metrics
Consolidated Net Revenues (including Universal Scientific Industrial Co., Ltd. since Feb 1, 2010):
- December 2010: NT$19,553 million
- Q4 2010: NT$53,283 million
ATM Net Revenues (Assembly, Test, and Material business excluding USI):
- December 2010: NT$10,691 million
- Q4 2010: NT$32,602 million
The filing does not provide data on profit, cash flow, margins, debt, or liquidity for this period.
Material Changes vs. Prior Period
Consolidated Performance:
- December 2010 vs. November 2010: Sequential increase of 16.2%.
- December 2010 vs. December 2009: Year-over-year increase of 124.8%.
- Q4 2010 vs. Q3 2010: Sequential increase of 3.5%.
- Q4 2010 vs. Q4 2009: Year-over-year increase of 102.7%.
ATM Performance (Excluding USI):
- December 2010 vs. November 2010: Sequential decrease of 0.4%.
- December 2010 vs. December 2009: Year-over-year increase of 22.9%.
- Q4 2010 vs. Q3 2010: Sequential decrease of 4.2%.
- Q4 2010 vs. Q4 2009: Year-over-year increase of 24.0%.
Guidance, Outlook, and Risks
The filing contains no specific financial guidance or management commentary regarding future quarters beyond the standard Safe Harbor Notice. The company highlights several risks that could cause actual results to differ materially from forward-looking statements, including:
- Cyclicality and market conditions in the semiconductor industry.
- Highly competitive industry environment.
- Ability to introduce new packaging and testing technologies.
- Integration of pending and future mergers and acquisitions.
- International business activities and general economic/political conditions.
- Strained relationship between the Republic of China and the People's Republic of China.
- Fluctuations in foreign currency exchange rates.
Investor Verification Checklist
- Verify the impact of the Universal Scientific Industrial Co., Ltd. consolidation on the reported revenue growth figures.
- Confirm the divergence between consolidated revenue growth and core ATM business performance in Q4 2010.
- Review the 2009 Annual Report on Form 20-F for detailed risk factors and historical financial context.
- Monitor subsequent filings for profit margins and cash flow data, which are absent in this revenue-only report.