Business Context and Reporting Period
Advanced Semiconductor Engineering, Inc. (ASE) filed this Form 6-K on July 10, 2017, to announce unaudited consolidated net revenues for June 2017 and the second quarter of 2017. ASE is a leading provider of outsourced semiconductor packaging, testing, and electronic manufacturing services.
Key Financial Metrics
Consolidated Net Revenues
| Period | Currency | Current Period | Prior Month/Quarter | Prior Year Period | Sequential Change | YoY Change |
|---|---|---|---|---|---|---|
| June 2017 | NT$ Million | 23,078 | 22,458 | 21,774 | +2.8% | +6.0% |
| June 2017 | US$ Million | 767 | 746 | 671 | +2.9% | +14.4% |
| Q2 2017 | NT$ Million | 66,026 | 66,551 | 62,601 | -0.8% | +5.5% |
| Q2 2017 | US$ Million | 2,188 | 2,133 | 1,932 | +2.6% | +13.3% |
ATM Assembly, Testing, and Material Business
| Period | Currency | Current Period | Prior Month/Quarter | Prior Year Period | Sequential Change | YoY Change |
|---|---|---|---|---|---|---|
| June 2017 | NT$ Million | 13,410 | 13,163 | 13,262 | +1.9% | +1.1% |
| June 2017 | US$ Million | 446 | 437 | 408 | +2.0% | +9.1% |
| Q2 2017 | NT$ Million | 39,048 | 38,385 | 38,504 | +1.7% | +1.4% |
| Q2 2017 | US$ Million | 1,294 | 1,230 | 1,188 | +5.2% | +8.9% |
Note: The filing text does not provide data on profit, cash flow, margins, debt, or liquidity.
Material Changes
- June 2017: Consolidated net revenues increased 2.8% sequentially and 6.0% year-over-year in NT$, driven by volume growth and favorable currency translation in US$ terms (+14.4% YoY).
- Q2 2017: Consolidated net revenues decreased 0.8% sequentially in NT$ but increased 5.5% year-over-year. In US$ terms, Q2 revenues grew 2.6% sequentially and 13.3% year-over-year.
- ATM Segment: The ATM business showed modest growth, with June 2017 revenues up 1.9% sequentially and Q2 2017 revenues up 1.7% sequentially in NT$.
Guidance, Outlook, and Risks
The filing contains a Safe Harbor Notice regarding forward-looking statements. Management does not provide specific numerical guidance in this document but highlights several risks that could cause actual results to differ materially:
- Cyclicality and market conditions in the semiconductor and electronic industries.
- Regulatory changes, including environmental regulations and liabilities.
- Highly competitive industry dynamics and the need to introduce new technologies.
- Uncertainties regarding a joint share exchange agreement with Siliconware Precision Industries Co., Ltd.
- Geopolitical tensions between the Republic of China and the People's Republic of China.
- Fluctuations in foreign currency exchange rates.
Investor Verification Checklist
- Verify the impact of currency exchange rates on reported US$ versus NT$ revenue growth.
- Review the status and potential impact of the joint share exchange agreement with Siliconware Precision Industries Co., Ltd.
- Assess the competitive landscape and demand trends for outsourced semiconductor packaging and testing services.
- Examine the 2016 Annual Report on Form 20-F for detailed risk factors and historical financial context.