Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed this Form 6-K on December 6, 2011, to announce unaudited consolidated net revenues for November 2011. ASE is a leading provider of outsourced semiconductor packaging and testing services, headquartered in Kaoshiung, Taiwan.
Key Financial Metrics
The filing provides revenue data for November 2011 compared to October 2011 and November 2010. Profit, cash flow, margins, debt, and liquidity metrics are not included in this monthly revenue announcement.
| Metric | Nov 2011 (NT$M) | Oct 2011 (NT$M) | Nov 2010 (NT$M) | Sequential Change | YoY Change |
|---|---|---|---|---|---|
| Consolidated Net Revenues | 15,717 | 15,733 | 16,822 | -0.1% | -6.6% |
| Consolidated Net Revenues (US$M) | 523 | 518 | 555 | +1.0% | -5.8% |
| ATM Net Revenues (Excl. USI) (NT$M) | 10,735 | 11,327 | 10,737 | -5.2% | -0.0% |
| ATM Net Revenues (Excl. USI) (US$M) | 357 | 373 | 354 | -4.2% | +0.8% |
Note: ATM refers to Assembly, Test, and Material business. USI refers to Universal Scientific Industrial Co., Ltd., whose revenues have been consolidated into ASE since February 1, 2010.
Material Changes
- Consolidated Revenue: November 2011 consolidated revenue decreased 6.6% year-over-year in local currency (NT$) but increased 1.0% year-over-year in US dollars due to currency fluctuations.
- Sequential Performance: Consolidated revenue remained nearly flat sequentially (-0.1% in NT$), while the core ATM business (excluding USI) declined 5.2% sequentially in NT$.
- ATM Segment: The core ATM business showed flat year-over-year performance in NT$ (-0.0%) but a slight increase in US$ (+0.8%).
Guidance, Outlook, and Risks
The filing contains no specific financial guidance or management commentary regarding future quarters. It includes a Safe Harbor Notice identifying forward-looking statements subject to various risks, including:
- Cyclicality and market conditions in the semiconductor industry.
- Highly competitive market environment.
- Ability to introduce new packaging and testing technologies.
- Integration of 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 currency exchange rates on the divergence between NT$ and US$ revenue growth figures.
- Review the 2010 Annual Report on Form 20-F for detailed risk factors and historical financial context.
- Monitor subsequent monthly revenue announcements to confirm if the sequential decline in the ATM segment is a trend.
- Assess the contribution of Universal Scientific Industrial Co., Ltd. (USI) to the overall consolidated revenue stability versus the core ATM business decline.