Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed a Form 6-K on January 8, 2008, to announce unaudited consolidated net revenues for December 2007 and the fourth quarter of 2007. The company operates in the outsourced semiconductor packaging and testing industry.
Key Financial Metrics
| Period | Net Revenues (NT$ Million) | Sequential Change | Year-over-Year Change |
|---|---|---|---|
| December 2007 | 9,250 | -3.3% | +34.2% |
| November 2007 | 9,566 | - | - |
| December 2006 | 6,895 | - | - |
| Q4 2007 | 28,976 | +4.5% | +28.4% |
| Q3 2007 | 27,733 | - | - |
| Q4 2006 | 22,574 | - | - |
Note: The filing text does not provide specific values for profit, cash flow, margins, debt, or liquidity. Starting October 1, 2007, revenues from ASEN Semiconductor were consolidated into ASE Inc.'s results.
Material Changes
- Monthly Trend: December 2007 revenues declined 3.3% sequentially from November 2007.
- Annual Growth: December 2007 revenues increased 34.2% compared to December 2006.
- Quarterly Trend: Q4 2007 revenues grew 4.5% sequentially from Q3 2007 and 28.4% year-over-year.
Outlook, Risks, and Contingencies
The filing includes a Safe Harbor Notice regarding forward-looking statements. Management highlighted several risks that could cause actual results to differ materially from expectations:
- Cyclicality and market conditions in the semiconductor industry.
- Demand for outsourced packaging and testing services.
- Highly competitive industry environment and the need to introduce new 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 ASEN Semiconductor consolidation (effective Oct 1, 2007) on year-over-year comparisons.
- Confirm the reasons for the 3.3% sequential revenue decline in December 2007 despite strong annual growth.
- Review the 2006 Annual Report on Form 20-F for detailed risk factors and historical financial context.
- Monitor foreign currency exchange rate fluctuations given the company's international operations.