Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed this Form 6-K on April 7, 2010, to announce unaudited consolidated net revenues for March 2010 and the first quarter of 2010. The filing also serves as a notice to American Depositary Receipt (ADR) holders regarding the submission period for shareholder proposals for the 2010 annual general shareholders' meeting, scheduled for June 14, 2010.
Key Financial Metrics
The filing provides revenue data in New Taiwan Dollars (NT$) millions. Profit, cash flow, margins, debt, and liquidity figures are not included in this document.
| Metric | March 2010 | Q1 2010 |
|---|---|---|
| Consolidated Net Revenues | 15,847 | 37,555 |
| ATM Net Revenues (Excl. USI) | 10,002 | 27,423 |
Note: ATM refers to Assembly, Test, and Material business excluding Universal Scientific Industrial Co., Ltd. (USI).
Material Changes vs. Prior Period
- Consolidated Revenue Growth: March 2010 consolidated revenues increased 22.0% sequentially from February 2010 and surged 188.4% year-over-year (YoY) compared to March 2009. Q1 2010 consolidated revenues rose 42.8% sequentially from Q4 2009 and 180.3% YoY.
- ATM Revenue Growth: Excluding USI, ATM revenues for March 2010 grew 15.0% sequentially and 82.0% YoY. Q1 2010 ATM revenues increased 4.3% sequentially and 104.7% YoY.
- Acquisition Impact: Starting February 1, 2010, revenues from Universal Scientific Industrial Co., Ltd. (USI) were consolidated into ASE's results, significantly contributing to the reported growth figures.
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 market for outsourced packaging and testing services.
- Ability to successfully integrate 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.
- General economic conditions and the recent global financial crisis.
Investor Verification Checklist
- Verify the specific contribution of the Universal Scientific Industrial Co., Ltd. (USI) acquisition to the reported revenue surge.
- Confirm the ADR Record Date of April 16, 2010, for eligibility to vote at the June 14, 2010, annual meeting.
- Review the full 2008 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 filing only reports net revenues.