Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed this Form 6-K on June 7, 2010, to report unaudited consolidated net revenues for May 2010. The company is a leading provider of outsourced semiconductor packaging and testing services.
Key Financial Metrics
| Metric (NT$ Million) | May 2010 | April 2010 | May 2009 | Sequential Change | YoY Change |
|---|---|---|---|---|---|
| Consolidated Net Revenues | 15,496 | 14,663 | 7,037 | +5.7% | +120.2% |
| ATM Net Revenues (Excl. USI) | 10,622 | 9,972 | 7,037 | +6.5% | +50.9% |
Note: Starting February 1, 2010, Universal Scientific Industrial Co., Ltd.'s (USI) consolidated revenues were included in ASE's consolidated revenues. The ATM (Assembly, Test, and Material) figures exclude USI.
The filing does not provide specific data on profit, cash flow, margins, debt, or liquidity for this period.
Material Changes
- Revenue Growth: Consolidated net revenues increased significantly year-over-year by 120.2%, driven by the inclusion of USI revenues and organic growth.
- Sequential Growth: Revenues grew 5.7% sequentially from April 2010 to May 2010.
- Core Business Performance: Excluding the USI acquisition, the core ATM business saw a 50.9% year-over-year increase and a 6.5% sequential increase.
Guidance, Outlook, and Risks
The filing contains no specific financial guidance or quantitative outlook for future periods. Management included a Safe Harbor Notice regarding forward-looking statements, highlighting several risks that could cause actual results to differ materially:
- Cyclicality and market conditions in the semiconductor industry.
- Highly competitive industry environment and demand for outsourced services.
- Ability to introduce new packaging and testing technologies.
- Integration risks associated with pending and future mergers and acquisitions.
- Geopolitical tensions 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. (USI) consolidation on the reported 120.2% year-over-year revenue growth.
- Confirm the sustainability of the sequential revenue growth trend (5.7% in May) in the context of semiconductor industry cyclicality.
- Review the company's 2008 Annual Report on Form 20-F for a detailed discussion of the risks outlined in the Safe Harbor Notice.
- Monitor future filings for profit margins and cash flow data, which are not included in this monthly revenue report.