Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed a Form 6-K on October 7, 2011, reporting unaudited consolidated net revenues for September 2011 and the third quarter (Q3) 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 financials.
Key Financial Metrics
Consolidated Net Revenues
| Period | Currency | Current Period | Prior Month/Quarter | Prior Year Period | Sequential Change | YoY Change |
|---|---|---|---|---|---|---|
| September 2011 | NT$ Million | 15,425 | 15,857 | 17,368 | -2.7% | -11.2% |
| September 2011 | US$ Million | 529 | 550 | 545 | -3.8% | -2.9% |
| Q3 2011 | NT$ Million | 46,698 | 46,254 | 51,489 | +1.0% | -9.3% |
| Q3 2011 | US$ Million | 1,614 | 1,601 | 1,611 | +0.8% | +0.2% |
ATM Net Revenues (Excluding USI)
| Period | Currency | Current Period | Prior Month/Quarter | Prior Year Period | Sequential Change | YoY Change |
|---|---|---|---|---|---|---|
| September 2011 | NT$ Million | 10,659 | 10,995 | 11,278 | -3.1% | -5.5% |
| September 2011 | US$ Million | 365 | 381 | 354 | -4.1% | +3.3% |
| Q3 2011 | NT$ Million | 32,581 | 32,255 | 34,015 | +1.0% | -4.2% |
| Q3 2011 | US$ Million | 1,126 | 1,117 | 1,064 | +0.8% | +5.8% |
Note: The filing text does not provide data on profit, cash flow, margins, debt, or liquidity.
Material Changes
- September 2011: Consolidated net revenues declined 2.7% sequentially and 11.2% year-over-year in NT$, while declining 3.8% sequentially and 2.9% year-over-year in US$.
- Q3 2011: Consolidated net revenues increased 1.0% sequentially in NT$ but decreased 9.3% year-over-year. In US$, Q3 revenues increased 0.8% sequentially and 0.2% year-over-year.
- ATM Segment: Excluding USI, the ATM segment showed a sequential decline in September but a sequential increase in Q3. Year-over-year performance for the ATM segment was positive in US$ terms for both September (+3.3%) and Q3 (+5.8%), contrasting with the negative NT$ year-over-year performance.
Guidance, Outlook, and Risks
The filing contains no specific financial guidance or management commentary regarding future revenue targets. It includes a Safe Harbor Notice regarding forward-looking statements, cautioning that actual results may differ due to various risks.
- Key Risks: Cyclicality and market conditions in the semiconductor industry; demand for outsourced packaging and testing; intense competition; ability to introduce new technologies; integration of mergers and acquisitions; international business activities; general economic and political conditions; natural or human-induced disasters; capital expenditures; strained relations between the Republic of China and the People's Republic of China; and foreign currency exchange rate fluctuations.
Investor Verification Checklist
- Verify the impact of foreign currency exchange rates on the divergence between NT$ and US$ year-over-year performance.
- Confirm the specific contribution of Universal Scientific Industrial Co., Ltd. (USI) to the consolidated revenue figures versus the core ATM business.
- Review the 2010 Annual Report on Form 20-F for detailed risk factors and historical financial context.
- Monitor subsequent filings for profit margins and cash flow data, which are absent in this revenue-only report.