Business Context and Reporting Period
This Form 6-K filing by Advanced Semiconductor Engineering, Inc. (ASE) was submitted on August 2, 2010. ASE is the world's largest provider of independent semiconductor manufacturing services in assembly and test. The filing primarily announces a strategic acquisition rather than reporting periodic financial results.
Key Financial Metrics
The filing does not provide current period revenue, profit, cash flow, or margin data. Historical context provided in the press release indicates the ASE Group generated sales revenues of $2.6 billion in 2009 and employs over 29,500 people worldwide. Specific debt and liquidity figures for the current period are not disclosed in this document.
Material Changes
The primary material event is the definitive agreement to acquire 100% of the interest in EEMS Test Singapore Pte Ltd. ("EEMS Test Singapore") from EEMS Asia Pte Ltd. The enterprise value for this acquisition is approximately US$67.7 million. EEMS Test Singapore provides wafer sort and final test solutions for mixed signal assembly and systems in Asia.
Guidance, Outlook, and Risks
The filing contains forward-looking statements regarding future results and business prospects. Management highlights several risks that could cause actual results to differ materially, including:
- Cyclicality and market conditions in the semiconductor industry.
- Highly competitive industry environment.
- Ability to successfully integrate pending and future mergers and acquisitions.
- International business activities and general economic conditions.
- Fluctuations in foreign currency exchange rates.
- Strained political relationships between the Republic of China and the People's Republic of China.
Investor Verification Checklist
- Verify the final closing date and any conditions precedent for the EEMS Test Singapore acquisition.
- Confirm the exact purchase price and payment structure (cash vs. stock) in the definitive Sale and Purchase Agreement.
- Review the 2009 Annual Report on Form 20-F for detailed historical financials and risk factors.
- Assess the strategic fit of EEMS Test Singapore's mixed signal capabilities with ASE's existing portfolio.