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FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
DATED OCTOBER 30, 2000
Advanced Semiconductor Engineering, Inc.
(Exact name of Registrant as specified in its charter)
26 Chin 3rd Road
Nantze Export Processing Zone
Kaoshiung, Taiwan
Republic of China
(Address of principal executive offices)
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Indicate by check mark whether the registrant files or will file annual reports
under cover of 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
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<PAGE>
Advanced Semiconductor Engineering, Inc.
FOR IMMEDIATE RELEASE
Contact:
<TABLE>
<S> <C> <C>
ASE, Inc. Thomson Financial/Carson
Joseph Tung, CFO Judith Walls Daniel Loh
Freddie Liu, Assistant Vice President Associate Director Associate Director
Tel: + 886-2-8780-5489 + 65-3940 870 + 1-212-701-1998
Fax: + 886-2-2757-6121 [email protected] [email protected]
[email protected] ----------------------- ---------------------
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</TABLE>
ADVANCED SEMICONDUCTOR ENGINEERING, INC. REPORTS RECORD SALES,
NET EARNINGS IN THIRD QUARTER 2000
Taipei, Taiwan, R.O.C., October 30, 2000 - Advanced Semiconductor Engineering,
Inc. (TAIEX: 2311, NYSE: ASX), ("ASE", or the "Company"), one of the world's
largest independent providers of semiconductor packaging and testing services,
today reported record quarterly sales of NT$13,904 million and record quarterly
earnings of NT$1,623 million in the third quarter ended September 30, 2000.
"We are pleased to report that ASE had another record setting quarterly
results," said Mr. Jason Chang, chairman of ASE Inc. "Over the past 18 months,
we have successfully implemented our core business strategies, which include
expanding our operations through both internal growth and strategic
acquisitions; broadening the geographic coverage of our business, achieving
critical technology advancements across assembly, test and key materials. In
addition and most importantly, leveraging our cluster locations by working
closely with complementary service providers, particularly upstream foundries."
Mr. Chang added: "With our leading position in the full value chain of IC
manufacturing, we have been able to further differentiate ourselves from our
competitors and to facilitate the acceleration of IC outsourcing. This, I
believe, is the primary reason for our success, and will be the main driver of
our future growth."
"As impressive as our financial results are, what is more important is the
improved quality of our operations," commented Dr. Leonard Liu, president of
ASE. "We have been strengthening our technological, processing and materials
capabilities, increasing our production capacity, upgrading and expanding
product/service offerings, and improving our operating efficiencies across all
sites including the acquired operations. Such efforts all lead to very positive
results such as balancing revenue mix across computing, communication and
consumer electronics, enhancing customer dependence on our leading
technologies, and deepening customer penetration. Going forward, ASE will
continue to strengthen its capabilities and service quality to become the true
partner of choice to our customers."
"In Q3, we also completed the listing of our ADR on NYSE. This is an extremely
critical initiative of ours. Through which not only we gain direct access to
the most important capital market for funding and to raise our corporate
profile. Even more importantly is that we set up a much more effective platform
for investor communication, which we believe is critical for company's long
term value appreciation."
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<PAGE>
Financial Results
Third-Quarter 2000 Results: Year-over-Year Comparison
o Net revenues increased 48% to NT$13,904 million.
o Gross profit rose 53% to NT$4,078 million.
o Operating income increased 80% to NT$2,737 million.
o Net income rose 198% to NT$1,623 million.
o Fully diluted earnings per share increased 181% to NT$0.59, or US$0.095 per
ADS.
Net Revenues:
Consolidated net revenues totaled a quarterly record of NT$13,904 million in
the third quarter of 2000, up 48% from NT$9,384 million in the same period of
1999. Assembly revenues increased 46% to NT$10,459 million, and testing
revenues increased 58% to NT$3,440 million. The record quarterly revenues
reflect increased sales activity at each of the Company's operating regions and
increased volume output.
Gross Profit:
Gross profit increased 53% YoY to NT$4,078 million. Gross margin also improved
to 29.3% from 28.5% in the same period of 1999, reflecting a higher machine
utilization rate and a higher revenue contribution from our testing operations,
which generally maintain a higher gross margin than the assembly operation.
Depreciation expense during the quarter totaled NT$2,137 million, which
represents a 46% increase from the same period last year. Depreciation expense
as a percentage of net revenues remained flat, however, at 15.4% versus 15.7%
in Q3 1999.
Operating Expenses / Income:
Operating expenses increased 17% YoY to NT$1,340 million. Of the total,
research and development ("R&D") spending increased 52% to NT$317 million. As a
percentage of net revenues, however, R&D expenses remained steady at
approximately 2.3%. Selling, general and administrative expenses during the
quarter increased 9% from the year-ago period to NT$1,023 million. Total
operating expenses as a percentage of sales, meanwhile, declined to 9.7% in Q3
2000 from 12.2% in Q3 1999. Goodwill amortization expenses relating to the
acquisition of consolidated entities amounted to NT$150 million in the latest
quarter.
Operating income rose 80% YoY to NT$2,737 million. Operating margin, meanwhile,
improved to 19.7% in the latest quarter from 16.2% in the same period last
year.
Non-operating Expenses:
Total non-operating expenses of NT$372 million in Q3 2000 represent a 53%
improvement versus the same period last year. The relatively high non-operating
expenses for the third quarter 1999 is mainly due to a foreign exchange loss of
NT$619 million recorded in that quarter. As a percentage of net revenues, total
non-operating expenses improved to 2.7% in Q3 2000 from 8.4% in Q3 1999.
Net interest expense declined 22% to NT$357 million during the latest quarter
from NT$458 million in Q3 1999. The reduction in interest expense is due to
interest revenues generated by the proceeds of ASE Test's offering. Investment
income for the quarter was NT$54 million versus NT$71 million for the same
period last year, reflecting a lower earnings contribution from the Company's
non-consolidated affiliates including USI and Hung Ching Construction. Goodwill
amortization expenses for non-consolidated entities totaled NT$92 million
during the quarter.
Net income:
Income tax expense of NT$319 million in Q3 2000 represents an effective tax
rate of 13.5%. Minority interest expense totaled NT$423 million in the quarter.
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Reflecting the Company's stronger operating performance, net income in Q3 2000
rose sharply to a quarterly record NT$1,623 million, a 198% year-over-year
increase, or a 492% increase net of one-time capital gain recorded in the 3rd
quarter 1999.
Fully diluted earnings per share rose to NT$0.59 in Q3 2000 from NT$0.21 (or
NT$0.10 net of capital gain) in Q3 1999. In addition, fully diluted earnings
per ADS increased to US$0.095 from US$0.033 (or US$0.016, net of capital gain)
in the third quarter last year.
Shares Outstanding:
Retroactively adjusted for the company's 1999 stock dividend, a weighted
average total of 2,653 million ASE common shares were used for calculation per
share data for the 3rd quarter 2000, and 2,652 million common shares for the
same period 1999. Each ADS represents 5 common shares.
Capital Expenditures:
Capital spending for capacity expansion in Q3 2000 totaled US$282 million, of
which US$136 million is related to assembly operations, US$140 million is for
testing operations and US$6 million is for material manufacturing operation.
Third-Quarter 2000 Results: Sequential Comparison
o Net revenues increased 12% sequentially.
o Gross profit rose 6%.
o Operating income increased 10%.
o Net income rose 11%.
Net Revenues:
Net revenues in Q3 2000 grew 12% from the prior quarter. Assembly revenues
increased 12% to NT$10,459 million, and testing revenues increased 14% to
NT$3,440 million. Assembly unit output (in terms of pin counts) rose 12.1% to
63.4 billion pins.
Gross Profit:
Gross profit in Q3 2000 rose 6% on a sequential basis. Gross margin, meanwhile,
fell 1.5% to 29.3% as a result of higher depreciation and labor charges after
annual salary adjustment.
Operating Expenses / Income:
Operating expenses decreased 1.3% as a percentage of net revenue to 9.6% from
10.9% due to payment of director and supervisor compensation in last quarter.
Operating income rose 10% sequentially, and operating margin remained stable at
19.7%.
Non-operating Expenses:
Non-operating expenses improved by 7% to NT$372 million. The improvement is
mainly due to the higher profit contribution from Universal Scientific
Industrial Co., Ltd., our 23% owned electronics products manufacturing
subsidiary. As a percentage of net revenues, non-operating expenses improved to
2.7% in Q3 2000 from 3.2% in the second quarter.
Net income:
Income before tax increased 14% sequentially to NT$2,365 million. Minority
interests rose to NT$423 million, up 17% sequentially, reflecting reduced
ownership in ASE Test Limited following its July 2000 secondary public
offering. Net income grew 11% compared to the second quarter of this year.
Fully diluted earnings per share increased from NT$0.55 to NT$0.59.
Year-to-September Comparison
o Net revenues rose 76% to NT$37,501 million.
o Gross profit increased 106% to NT$11,398 million.
o Operating profit increased 166% to NT$7,469 million.
o Net income dropped 10%, but grew 401% when netting out the one-time capital
3
<PAGE>
gain realized during the first nine months of 1999.
o Fully diluted earnings per share rose 409% to NT$1.68, or US$0.272 per ADS,
compared to same period last year, net of a one-time capital gain.
Net Revenues:
Net revenues in the first nine months of 2000 totaled NT$37,501 million, an
increase of 76% versus the same period last year. Assembly revenues grew 75% to
NT$28,184 million, and testing revenues increased 86% to NT$9,230 billion.
Gross Profit:
Gross profit rose 106% to NT$11,398 million in the first nine months from
NT$5,540 million in the same period of 1999. Gross margin also improved to
30.4% from 26.0%.
Operating Income:
Operating income also increased sharply during the period, rising 166% to
NT$7,469 million from NT$2,803 million. Operating margin, meanwhile, increased
to 20% from 13.2%.
Net Income:
Pretax income increased 314% to NT$6,389 million in first nine months of 2000
from NT$1,545 million in the same period of 1999 (excluding a one-time capital
gain of NT$4,156 million recognized in Q1 1999 from the TDR issuance).
Net income in the first nine months of 2000 increased 400% to NT$4,543 million
from NT$907 million (excluding the one-time capital gain of NT$4,156 million
noted above) in the first nine months of 1999.
Fully diluted earnings per share in the first nine months of 2000 totaled
NT$1.68, or US$0.272 per ADS, versus NT$0.33 and US$0.051 for the same period
of 1999 (excluding one-time capital gains).
Capital Expenditures:
For the first 9 months of this year, total capital expenditures were US$764
million, of which US$335 million was for assembly operation, US$382 million was
for testing operation and US$47 is for material operation.
About ASE Inc.
ASE Inc. is one of the world's largest independent providers of semiconductor
packaging services and, together with its subsidiary ASE Test Limited
(Nasdaq:ASTSF), one of the world's largest independent providers of
semiconductor testing services, including front-end engineering testing, wafer
probing and final testing services. The Company's international customer base
of more than 200 blue-chip customers includes such leading names as Advanced
Micro Devices, Inc., Altera Corporation, Cirrus Logic International Ltd.,
Conexant Systems, Inc., LSI Logic Corporation, and Qualcomm Incorporated. With
advanced-process technological capabilities and a global presence spanning
Taiwan, Korea, Hong Kong, Singapore, Malaysia and the United States, ASE Inc.
has established a reputation for reliable, high quality products and services.
For more information, visit the website, http://www.aseglobal.com
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<TABLE>
Supplemental Financial Information
Assembly Operations
Amounts in NT$ Millions 3Q/00 3Q/99 2Q/00
<S> <C> <C> <C>
Net Revenue 10,459 7,190 9,347
End Application by Revenue
Communication 38% 36% 42%
Computer 27% 45% 30%
Automotive and Consumers 33% 17% 26%
Others 2% 2% 2%
Package Type by Revenue
BGA 45% 35% 45%
QFP 32% 39% 32%
PDIP, PLCC, Sos 16% 21% 15%
Others 7% 5% 8%
Capacity
CapEx (US$ Millions) 136 59 116
Number of Wirebonders 3,968 2,529 3,636
Testing Operations
Amounts in NT$ Millions 3Q/00 3Q/99 2Q/00
Net Revenue 3,440 2,183 3,013
End Application by Revenue
Communication 28% 29% 27%
Computer 34% 31% 34%
Automotive and Consumers 32% 30% 30%
Others 6% 10% 9%
Testing Type by Revenue
Logic and Mixed Signal 97% 97% 98%
Memory 3% 3% 2%
Capacity
CapEx (US$ Millions) 140 32 144
Number of Testers 972 659 871
</TABLE>
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Advanced Semiconductor Engineering, Inc.
Consolidated Summary Income Statements Data
(In NT$ millions, except per share data)
(Unaudited)
<TABLE>
For the three months ended For the nine months ended
========================== =========================
Sept. 30 Sept. 30 Sept. 30 Sept. 30
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Net revenues:
Assembly 10,459 7,190 28,184 16,133
Testing 3,440 2,183 9,230 4,955
Others 5 11 87 210
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Total net revenues 13,904 9,384 37,501 21,298
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Cost of revenues 9,827 6,715 26,103 15,758
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Gross Profit 4,078 2,670 11,398 5,540
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Operating expenses:
Research and development 317 210 852 563
Selling, general and administrative 1,023 937 3,077 2,174
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Total operating expenses 1,340 1,146 3,929 2,737
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Operating income 2,737 1,524 7,469 2,803
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Other (income) expenses:
Interest expenses, net 357 458 1,175 824
Foreign currency loss, net 34 619 (150) 409
Loss (gain) on long-term investment 38 14 124 108
One-time capital gain 0 (271) 0 (4,156)
Loss (gain) on dispose of assets 34 0 39 4
Other non-operating expenses (91) (31) (110) (87)
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Total non-operating expenses 372 790 1,080 (2,898)
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Income before income tax 2,365 734 6,389 5,701
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Income tax expense (credit) 319 29 818 193
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Net income before minority interest 2,046 704 5,571 5,508
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Minority interest 423 159 1,027 445
Net income 1,623 545 4,543 5,062
Net income - net of one-time
capital gain 1,623 274 4,543 907
Per share data:
EPS - Basic NT$0.61 NT$0.21 NT$1.71 NT$1.91
EPS - Fully Diluted NT$0.59 NT$0.21 NT$1.68 NT$1.90
EPS (net of one-time capital gain)
- Fully Diluted NT$0.59 NT$0.10 NT$1.68 NT$0.33
Earnings per ADS - Basic US$0.098 US$0.033 US$0.277 US$0.294
Earnings per ADS - Fully Diluted US$0.095 US$0.033 US$0.272 US$0.293
Earnings per ADS, net of
capital gain-Fully diluted US$0.095 US$0.016 US$0.272 US$0.051
Number of weighted average shares used
in the EPS calculation (in thousands,
retroactively adjusted for stock
dividend) 2,652,622 2,651,524 2,652,622 2,651,524
Forex (NT$ per US$1) 31.07 32.03 30.83 32.45
</TABLE>
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Advanced Semiconductor Engineering, Inc.
Consolidated Summary Balance Sheet Data
(In NT$ millions)
(Unaudited)
<TABLE>
As of June 30, 2000 As of September 30, 2000
=================== =========================
<S> <C> <C>
Current assets:
Cash and cash equivalents 6,239.9 14,371.1
Short-term investments 3,001.6 2,141.4
Notes and accounts receivable 8,712.0 10,040.6
Inventories 2,710.9 2,897.5
Others 2,317.7 1,821.1
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Total 22,982.1 31,271.7
Long-term investments 11,034.0 11,257.6
Properties - net 48,904.4 55,829.0
Other assets 6,347.9 6,852.7
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Total assets 89,004.0 105,211.0
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Current liabilities:
Short-term debts 13,782.4 15,057.3
Notes and accounts payable 4,592.3 4,967.0
Others 6,347.9 7,985.2
Total 24,722.6 28,009.5
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Long-term debts 24,978.1 22,848.9
Other liabilities 513.7 1,321.3
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Total liabilities 50,214.4 52,179.7
Minority interest 5,984.2 11,175.0
Shareholders' equity 32,805.4 41,856.3
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Total liabilities & shareholders' equity 89,004.0 105,211.0
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</TABLE>
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SIGNATURES
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.
ADVANCED SEMICONDUCTOR
ENGINEERING, INC.
October 30, 2000 By: /s/ Joseph Tung
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Name: Joseph Tung
Title: Chief Financial Officer
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