Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed a Form 6-K on August 8, 2011, reporting unaudited consolidated net revenues for July 2011. ASE is a leading provider of outsourced semiconductor packaging and testing services, headquartered in Kaoshiung, Taiwan.
Key Financial Metrics
| Metric | July 2011 (NT$M) | June 2011 (NT$M) | July 2010 (NT$M) | Seq. Change | YoY Change |
|---|---|---|---|---|---|
| Consolidated Net Revenues | 15,416 | 14,711 | 16,808 | +4.8% | -8.3% |
| Consolidated Net Revenues (US$M) | 535 | 511 | 524 | +4.7% | +2.2% |
| ATM Net Revenues (Excl. USI) | 10,927 | 10,545 | 11,206 | +3.6% | -2.5% |
| ATM Net Revenues (US$M) | 379 | 367 | 349 | +3.5% | +8.6% |
Note: The filing does not provide data on profit, cash flow, margins, debt, or liquidity for this period. Starting February 1, 2010, revenues from Universal Scientific Industrial Co., Ltd. (USI) have been consolidated into ASE's results.
Material Changes
- Sequential Growth: Consolidated net revenues increased 4.8% month-over-month in NT$ terms, driven by a 3.6% increase in the core Assembly, Test, and Material (ATM) business.
- Year-Over-Year Decline: Consolidated net revenues decreased 8.3% compared to July 2010 in NT$ terms. However, on a US$ basis, consolidated revenues grew 2.2% year-over-year, reflecting currency fluctuations.
- Core Business Performance: Excluding USI, the ATM business saw a 2.5% decline in NT$ revenues year-over-year but an 8.6% increase in US$ revenues.
Guidance, Outlook, and Risks
The filing contains no specific financial guidance or management commentary regarding future quarters beyond the standard Safe Harbor Notice. The company highlights several material risks that could cause actual results to differ from forward-looking statements:
- Cyclicality and market conditions in the semiconductor industry.
- Highly competitive industry environment and demand for outsourced services.
- Ability to introduce new packaging and testing technologies.
- Integration risks from pending or future 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 the integration progress of Universal Scientific Industrial Co., Ltd. (USI) into ASE's consolidated results.
- Assess the sustainability of the sequential revenue growth amidst the reported year-over-year decline in local currency terms.