Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed this Form 6-K on January 9, 2012, to announce unaudited consolidated net revenues for December 2011 and the fourth quarter of 2011. The company operates in the outsourced semiconductor packaging and testing industry. Starting February 1, 2010, revenues from Universal Scientific Industrial Co., Ltd. (USI) have been consolidated into ASE's financial results.
Key Financial Metrics
Consolidated Net Revenues
| Period | Currency | Value | Sequential Change | Year-over-Year Change |
|---|---|---|---|---|
| December 2011 | NT$ Million | 14,940 | -4.9% | -23.6% |
| December 2011 | US$ Million | 494 | -5.6% | -23.9% |
| Q4 2011 | NT$ Million | 46,390 | -0.7% | -12.9% |
| Q4 2011 | US$ Million | 1,534 | -4.9% | -12.2% |
ATM Net Revenues (Excluding USI)
| Period | Currency | Value | Sequential Change | Year-over-Year Change |
|---|---|---|---|---|
| December 2011 | NT$ Million | 9,846 | -8.3% | -7.9% |
| December 2011 | US$ Million | 325 | -8.9% | -8.3% |
| Q4 2011 | NT$ Million | 31,908 | -2.1% | -2.1% |
| Q4 2011 | US$ Million | 1,055 | -6.3% | -1.2% |
Note: The filing does not provide data on profit, cash flow, margins, debt, or liquidity.
Material Changes
- Revenue Decline: Consolidated net revenues for December 2011 decreased by 23.6% year-over-year compared to December 2010, and by 4.9% sequentially from November 2011.
- Quarterly Performance: Q4 2011 consolidated revenues declined 12.9% year-over-year and 0.7% sequentially.
- Core Business Trend: ATM net revenues (excluding USI) showed a 7.9% year-over-year decline in December and a 2.1% decline for the full quarter compared to the prior year.
Guidance, Outlook, and Risks
The filing contains no specific financial guidance or management commentary regarding future performance beyond the standard Safe Harbor Notice. The company highlights several risks that could cause actual results to differ materially from forward-looking statements:
- Cyclicality and market conditions in the semiconductor industry.
- Demand for outsourced packaging and testing services.
- Highly competitive industry environment.
- Ability to introduce new technologies and integrate mergers/acquisitions.
- International business activities and general economic/political conditions.
- Fluctuations in foreign currency exchange rates.
- Strained relationship between the Republic of China and the People's Republic of China.
Investor Verification Checklist
- Verify the impact of the Universal Scientific Industrial Co., Ltd. (USI) consolidation on the reported revenue figures versus the core ATM business.
- Confirm the specific drivers behind the 23.6% year-over-year revenue decline in December 2011.
- Review the 2010 Annual Report on Form 20-F for detailed risk factors and historical financial context.
- Monitor foreign currency exchange rate fluctuations, as the filing reports figures in both NT$ and US$ with varying percentage changes.