Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed this Form 6-K on November 8, 2010, to report unaudited consolidated net revenues for the month ended October 31, 2010. ASE is a leading provider of outsourced semiconductor assembly and testing services.
Key Financial Metrics
| Metric (NT$ Million) | Oct 2010 | Sep 2010 | Oct 2009 | Seq. Change | YoY Change |
|---|---|---|---|---|---|
| Consolidated Net Revenues | 16,908 | 17,368 | 8,910 | -2.7% | +89.7% |
| ATM Net Revenues (Excl. USI) | 11,173 | 11,278 | 8,910 | -0.9% | +25.4% |
Note: Starting February 1, 2010, Universal Scientific Industrial Co., Ltd.'s (USI) consolidated revenues were included in ASE's totals. The ATM (Assembly, Test, and Material) figures exclude USI to provide a comparable view of core operations.
The filing does not provide specific data on profit, cash flow, margins, debt, or liquidity for this period.
Material Changes
- Year-over-Year Growth: Consolidated revenues surged 89.7% compared to October 2009, driven by the inclusion of USI revenues and general market recovery.
- Sequential Decline: Consolidated revenues decreased 2.7% from September 2010. Core ATM revenues (excluding USI) declined slightly by 0.9% sequentially.
Outlook, Risks, and Management Commentary
The filing contains a Safe Harbor Notice regarding forward-looking statements. Management highlights several risks that could cause actual results to differ materially from expectations:
- 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 of pending and future mergers and acquisitions.
- Geopolitical tensions between the Republic of China and the People's Republic of China.
- Fluctuations in foreign currency exchange rates.
- Disruptions from natural or human-induced disasters.
No specific revenue guidance or outlook for future periods was provided in this document.
Investor Verification Checklist
- Verify the impact of the USI consolidation on year-over-year growth metrics versus organic growth.
- Monitor the sequential decline in core ATM revenues to assess underlying demand trends.
- Review the 2009 Annual Report on Form 20-F for detailed risk factors and historical financial context.
- Track foreign currency exchange rate fluctuations given the company's international operations.