Business Context and Reporting Period
Company: Advanced Semiconductor Engineering, Inc. (ASE)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: September 7, 2010
Reporting Period: Monthly results for August 2010 (Unaudited)
ASE is a leading provider of outsourced semiconductor packaging and testing services. This filing reports consolidated net revenues for August 2010, incorporating the consolidation of Universal Scientific Industrial Co., Ltd. (USI) revenues effective February 1, 2010.
Key Financial Metrics
| Metric (NT$ Million) | Aug 2010 | July 2010 | Aug 2009 | Sequential Change | YoY Change |
|---|---|---|---|---|---|
| Consolidated Net Revenues | 17,313 | 16,808 | 8,349 | +3.0% | +107.4% |
| ATM Net Revenues (Excl. USI) | 11,530 | 11,206 | 8,349 | +2.9% | +38.1% |
Note: The filing does not provide data on profit, cash flow, margins, debt, or liquidity for this period.
Material Changes
- Revenue Growth: Consolidated net revenues increased significantly year-over-year (+107.4%) and sequentially (+3.0%).
- Acquisition Impact: The substantial year-over-year growth is partially attributed to the consolidation of Universal Scientific Industrial Co., Ltd. (USI) revenues, which began on February 1, 2010.
- Core Business Performance: Excluding USI, the core Assembly, Test, and Material (ATM) business showed a 38.1% year-over-year increase and a 2.9% sequential increase.
Outlook, Risks, and Management Commentary
The filing includes a Safe Harbor Notice regarding forward-looking statements. Management highlights several risks that could cause actual results to differ materially from expectations:
- Industry Cyclicality: Risks associated with market conditions and demand for outsourced packaging and testing services.
- Competition: The highly competitive nature of the semiconductor industry and the need to introduce new technologies.
- Integration Risks: Challenges in successfully integrating pending and future mergers and acquisitions.
- 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.
- Disruptions: Potential disruptions from natural or human-induced disasters.
Investor Verification Checklist
- Verify the specific contribution of Universal Scientific Industrial Co., Ltd. (USI) to the total revenue growth versus organic growth in the core ATM business.
- Review the 2009 Annual Report on Form 20-F for a detailed discussion of the risks mentioned in the Safe Harbor Notice.
- Monitor subsequent filings for profit margins and cash flow data, as this monthly report only discloses revenue figures.
- Assess the impact of foreign currency exchange rates on future reported revenues given the company's international operations.