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United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer Pursuant to Rule
13a-16 or 15d-16 of the Securities Exchange Act of 1934
For the month of July, 2000
Commission File Number 0-29103
ST ASSEMBLY TEST SERVICES LTD
(Exact name of registrant as specified in its charter)
Not Applicable
(Translation of registrant's name into English)
Republic of Singapore
(Jurisdiction of incorporation or organization)
5 Yishun Street 23
Singapore 768442
(65) 755-5885
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b). Not applicable.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ST ASSEMBLY TEST SERVICES LTD
By: /s/ Tan Bock Seng
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Name: Tan Bock Seng
Title: Chairman and Chief
Executive Officer
Date: [July 21, 2000]
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[ST ASSEMBLY TEST SERVICES LTD LETTERHEAD]
FOR IMMEDIATE RELEASE
For enquiries, please contact :
David Ferm
Director, Investor Relations
Tel : (408) 941 3007, Fax : (408) 941 3014
email : [email protected]
Elaine Ang
Manager, Investor Relations
Tel : (65) 751 1738, Fax : (65) 755 1585
email : [email protected]
STATS REPORTS SECOND QUARTER RESULTS
- NET REVENUES FOR SECOND QUARTER OF 2000 OF $75.8 MILLION, UP 66.1% OVER THE
SAME QUARTER A YEAR AGO
- DILUTED EARNINGS PER ADS OF $0.14 COMPARED TO DILUTED EARNINGS PER ADS OF
$0.07 IN THE SAME QUARTER IN 1999
- GROSS MARGIN OF 33.5% AND OPERATING MARGIN OF 15.1% COMPARED TO 33.2% AND
13.7%, RESPECTIVELY, IN THE SAME QUARTER IN 1999
SINGAPORE -- 21 July, 2000 -- ST Assembly Test Services Ltd (Nasdaq: STTS and
SGX: ST Assembly) ("STATS" or the "Company") announced net revenues for the
second quarter of 2000 of $75.8 million, up 66.1% over net revenues of $45.6
million for the same quarter a year ago, and up 5.0% sequentially over net
revenues of $72.2 million for the first quarter of 2000.
Diluted earnings per ADS and diluted earnings per ordinary share for the second
quarter of 2000 were $0.14 and $0.014, respectively, compared with diluted
earnings per ADS and diluted earnings per ordinary share of $0.07 and $0.007,
respectively, for the corresponding quarter a year ago.
Gross profit for the second quarter of 2000 was $25.3 million or a gross margin
of 33.5%, compared to $15.2 million, or 33.2%, respectively, for the same
quarter a year ago. Gross margin for the second quarter of 2000 declined quarter
over quarter compared to gross margin of 37.6% for the first quarter of 2000.
Net income for the second quarter of 2000 was $14.1 million, up 148.0% over the
net income of $5.7 million for the same quarter a year ago.
Said Tan Bock Seng, Chairman and Chief Executive Officer, "As we announced on
June 22, wafer supply in April and May was weaker than expected. The wafer
supply improved in June and continues to be healthy."
Added Tan Lay Koon, Chief Financial Officer, "In response to the late arrival of
wafers, we advanced the delivery of additional production equipment to ensure
that we would
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have been in a position to process these wafers to support our customers in the
second quarter. This production equipment is also required to support the
anticipated needs of our customers in the third quarter. The under-utilization
of capacity in April and May coupled with the installation of additional
production equipment, had an adverse impact on our gross margin. In addition,
the higher revenues contribution from the assembly business which has lower
gross margin compared to the test business, also impacted the overall gross
margin for the second quarter."
The Company continues to maintain significant R&D investments principally in
advanced laminate packaging technologies. R&D expenses were $4.3 million, or
5.6% of net revenues in the second quarter.
Summarizing the second quarter results, Tan Bock Seng, said, "We are
disappointed that the late arrival of wafers has impacted our business in this
quarter. The wafer supply recovered in June and has continued to be healthy.
Based on our customers' forecast demand, and as long as wafer supply is
available, we continue to expect a good second half. We believe that our
business fundamentals are intact and our challenge is to ensure that we execute
well and support our customers' needs."
BUSINESS MIX
Revenues from assembly services were $41.5 million, or 54.7% of net revenues,
and revenues from test services were $34.3 million, or 45.3% of the net
revenues, for the second quarter of 2000. Additionally, 60.1% of net revenues
were from communications customers.
In the second quarter of 2000, unit shipments in our test business increased by
36.5 million units or 59.6% over the same quarter a year ago. Mixed-signal
testing accounted for 72.5% of test revenues compared to 73.7% of test revenues
for the same quarter a year ago. Unit shipments in our assembly business
increased by 34.7 million units or 99.1% over the same quarter a year ago.
Tan Bock Seng noted, "In this quarter, test average selling prices ("ASPs") were
flat compared to the first quarter of 2000 and leaded assembly business ASPs
declined by 2% from the first quarter of 2000."
CAPACITY GROWTH
As of 30 June 2000, the Company has 209 testers and 460 wirebonders. In the
second quarter of 2000, the Company incurred $86 million in capital expenditures
for new production equipment and added 20 testers and 83 wirebonders to its
production capacity. Our capital expenditures for the first half of 2000 are
$152 million.
Depreciation expense and cost of leasing production equipment for this quarter
was $19.9 million, or 26.3% of net revenues, compared to $11.7 million, or 25.6%
of net revenues, in the same quarter a year ago. Quarter on quarter,
depreciation expense and cost of leasing production equipment increased by $2.9
million.
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To meet the forecast demand of our customers, we have increased our budgeted
capital expenditures for year 2000 to approximately $290 million. Budgeted
capital expenditures relate primarily to the addition of testers and
wirebonders. This is expected to bring our installed base to about 225 testers
and 548 wirebonders at the end of this year.
Commented Tan Bock Seng, "Because of the long equipment lead-time, we have made
the decision to bring in certain production equipment in anticipation of
customers' forecasted requirements. As a company, we want to be a strategic
partner to our key customers and we will invest to ensure that we will be able
to meet their capacity requirements."
ABOUT ST ASSEMBLY TEST SERVICES LTD (STATS)
ST Assembly Test Services ("STATS" - NNM: STTS and SGX: ST Assembly), is a
leading semiconductor test and assembly service provider to fabless companies,
integrated device manufacturers and wafer foundries. With its principal
operations in Singapore and global operations in the United States, United
Kingdom, Japan and Taiwan, STATS offers full back-end turnkey solutions to
customers worldwide. STATS expertise is in testing mixed-signal semiconductors
which are extensively used in fast growing communications applications such as
data networking, broadband and mobile communications. STATS also offers advanced
assembly services and has developed a wide array of traditional and advanced
leadframe and laminate based products, including various ball grid array
packages to serve some of the world's technological leaders. STATS was listed on
the Nasdaq National Market and The Singapore Exchange in January 2000 and has a
current market capitalisation in excess of US$2 billion.
Further information is available at www.stats.com.sg or www.statsus.com.
Certain of the statements in this press release are forward-looking statements,
that involve a number of risks and uncertainties which could cause actual
results to differ materially. Factors that could cause actual results to differ
include: general business and economic conditions and the state of the
semiconductor industry; demand for end-use applications products such as
communications equipment and personal computers; decisions by customers to
discontinue outsourcing of test and assembly services; changes in customer order
patterns; rescheduling or cancellation of customer orders; changes in product
mix; capacity utilization; level of competition; pricing pressures; continued
success in technological innovation; delays in acquiring or installing new
equipment; litigation and other risks described from time to time in the
Company's SEC filings, including its annual report on Form 20-F dated 30 March,
2000. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
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ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1999 AND JUNE 30, 2000
IN THOUSANDS OF US DOLLARS
<TABLE>
<CAPTION>
December 31, June 30,
1999 2000
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents............................... $ 16,568 $256,680
Accounts receivable, net................................ 37,404 50,201
Amounts due from ST affiliates.......................... 6,532 6,453
Other receivables ...................................... 9,572 7,779
Inventories............................................. 11,313 12,198
Prepaid expenses........................................ 7,079 15,786
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Total current assets................................ 88,468 349,097
Property, plant and equipment, net....................... 251,298 343,327
Other receivables........................................ 1,835 --
Prepaid expenses......................................... 10,364 21,760
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Total Assets........................................ $351,965 $714,184
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt......................................... 60,000 --
Current installments of long-term debt.................. 7,420 14,829
Accounts payable........................................ 13,070 10,410
Amounts due to ST and ST affiliates..................... 5,533 2,688
Accrued operating expenses.............................. 20,559 13,896
Other payables.......................................... 55,238 70,703
Income taxes payable.................................... 678 1,805
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Total current liabilities........................... 162,498 114,331
Deferred grant........................................... 1,923 2,761
Long-term debt, excluding current installments........... 46,360 37,074
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Total Liabilities................................... 210,781 154,166
SHAREHOLDERS' EQUITY
Share capital:
Ordinary shares -- par value S$0.25
Authorized ordinary shares -- 1,200,000,000
Issued ordinary shares --
785,427,695 as of December 31, 1999
and 983,907,735 as of June 30, 2000..................... 129,827 159,137
Additional paid-in capital................................ 26,305 385,932
Accumulated other comprehensive income (loss)............. (9,731) (9,731)
Retained earnings......................................... (5,217) 24,680
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Total Shareholders' Equity........................... 141,184 560,018
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Total Liabilities and Shareholders' Equity........... $351,965 $714,184
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</TABLE>
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ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND JUNE 30, 2000
IN THOUSANDS OF US DOLLARS (EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
JUNE 30, JUNE 30,
1999 2000
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<S> <C> <C>
Net revenues.......................................... $ 45,616 $ 75,759
Cost of revenues...................................... (30,455) (50,412)
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Gross profit.......................................... 15,161 25,347
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Operating expenses:
Selling, general and administrative.................. 6,515 9,747
Research and development............................. 1,536 4,276
Stock-based compensation............................. 858 99
Other general expenses (net)......................... -- (227)
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Total operating expenses......................... 8,909 13,895
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Operating income...................................... 6,252 11,452
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Other income (expense):
Interest income (expense), net....................... (1,458) 2,920
Foreign currency exchange gain (loss)................ 222 (398)
Other non-operating income, net...................... 941 1,175
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Total other income (expense)..................... (295) 3,697
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Income before income taxes............................ 5,957 15,149
Income tax expense.................................... (273) (1,050)
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Net income............................................ $ 5,684 $ 14,099
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Basic and diluted net income per
ordinary share....................................... $ 0.007 $ 0.014
Basic and diluted net income per ADS.................. $ 0.07 $ 0.14
Ordinary shares (in thousands) used in per ordinary
share calculation:
- basic............................................... 769,039 982,913
- effect of dilutive options.......................... 8,499 11,785
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- diluted............................................. 777,538 994,698
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ADS (in thousands) used in per ADS calculation:
- basic............................................... 76,904 98,291
- effect of dilutive options.......................... 850 1,179
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- diluted............................................. 77,754 99,470
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ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND JUNE 30, 2000
IN THOUSANDS OF US DOLLARS (EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
1999 2000
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<S> <C> <C>
Net revenues.......................................... $ 82,293 $147,935
Cost of revenues...................................... (58,890) (95,466)
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Gross profit.......................................... 23,403 52,469
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Operating expenses:
Selling, general and administrative.................. 11,971 19,333
Research and development............................. 2,766 6,894
Stock-based compensation............................. 1,757 346
Other general expenses (net)......................... (2) (233)
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Total operating expenses......................... 16,492 26,340
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Operating income...................................... 6,911 26,129
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Other income (expense):
Interest income (expense), net....................... (2,856) 3,072
Foreign currency exchange gain....................... 2,379 462
Other non-operating income, net...................... 1,134 1,773
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Total other income (expense)..................... 657 5,307
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Income before income taxes............................ 7,568 31,436
Income tax expense.................................... (512) (1,539)
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Net income............................................ $ 7,056 $ 29,897
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Basic net income per
ordinary share....................................... $ 0.009 $ 0.032
Diluted net income per
ordinary share....................................... $ 0.009 $ 0.031
Basic net income per ADS.............................. $ 0.09 $0.32
Diluted net income per ADS............................ $ 0.09 $0.31
Ordinary shares (in thousands) used in per ordinary
share calculation:
- basic............................................... 769,005 941,265
- effect of dilutive options.......................... 6,555 13,189
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- diluted............................................. 775,560 954,454
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ADS (in thousands) used in per ADS calculation:
- basic............................................... 76,900 94,126
- effect of dilutive options.......................... 656 1,319
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- diluted............................................. 77,556 95,445
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