Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year o

TAIPEI, Taiwan, Feb. 5 /PRNewswire-Asia-FirstCall/ -- Advanced Semiconductor Engineering, Inc. (TAIEX: 2311; NYSE: ASX) ("We", "ASE", or the "Company"), the world's largest independent provider of IC packaging and testing services, today reported unaudited net revenues (Note 1) of NT$26,293 million for the fourth quarter of 2009 (4Q09), up 44% year-over-year and up 4% sequentially.  Net income for the quarter totaled NT$3,450 million, up from a net loss of NT$800 million in 4Q08 and up from net income of NT$3,187 million in 3Q09.  Diluted earnings per share for the quarter was NT$0.66 (or US$0.102 per ADS), compared to losses per share of NT$0.15 for 4Q08 and diluted earnings per share of NT$0.61 for 3Q09.

For the full year of 2009, the Company reported net revenues of NT$85,775 million and net income of NT$6,744 million.  Diluted earnings per share for the full year of 2009 was NT$1.29, or US$0.195 per ADS.

  Note 1: All financial information presented in this press release is
  unaudited, consolidated and prepared in accordance with accounting
  principles generally accepted in the Republic of China, or ROC GAAP.  Such
  financial information is generated internally by us, and has not been
  subjected to the same review and scrutiny, including internal auditing
  procedures and audit by our independent auditors, to which we subject our
  audited consolidated financial statements, and may vary materially from
  the audited consolidated financial information for the same period.  Any
  evaluation of the financial information presented in this press release
  should also take into account our published audited consolidated financial
  statements and the notes to those statements.  In addition, the financial
  information presented is not necessarily indicative of our results for any
  future period.

  RESULTS OF OPERATIONS
  4Q09 Results Highlights
  -- Net revenue contribution from IC packaging operations (including module
     assembly), testing operations, and substrates sold to third parties was
     NT$21,131 million, NT$4,563 million and NT$599 million, respectively,
     and each represented approximately 81%, 17% and 2%, respectively, of
     total net revenues for the quarter.
  -- Cost of revenues was NT$19,686 million, up 28% year-over-year and up 4%
     sequentially.
     * Raw material cost totaled NT$8,166 million during the quarter,
       representing 31% of total net revenue, compared with NT$7,442 million
       and 30% of total net revenue in the previous quarter.
     * Labor cost totaled NT$3,754 million during the quarter, representing
       14% of total net revenue, compared with NT$3,590 million and 14% of
       total net revenue in the previous quarter.
     * Depreciation, amortization and rental expenses totaled NT$4,067
       million during the quarter, down 5% year-over-year and down 1%
       sequentially.
  -- Total operating expenses during 4Q09 were NT$2,645 million, including
     NT$1,081 million in R&D and NT$1,564 million in SG&A, compared with
     operating expenses of NT$2,390 million in 3Q09.  Total operating
     expenses as a percentage of net revenue for the current quarter were
     10%, down from 12% in 4Q08 and up from 9% in 3Q09.
  -- Operating income for the quarter totaled NT$3,962 million, down from
     NT$3,967 million in the previous quarter.  Operating margin decreased
     to 15% in 4Q09 from 16% in 3Q09.
  -- In terms of non-operating items:
     * Net interest expense was NT$256 million, down from NT$303 million a
       quarter ago primarily due to lower average interest rates and loan
       balance during the quarter.
     * Net foreign exchange gain of NT$35 million was primarily attributable
       to the depreciation of the U.S. dollar against the N.T. dollar.
     * Gain on equity-method investments of NT$135 million was primarily
       attributable to our investment in USI and HC.
     * Other non-operating income of NT$96 million was primarily related to
       scrap sales and other miscellaneous gains.  Total non-operating
       income for the quarter was NT$10 million, compared to non-operating
       expenses of NT$1,275 million for 4Q08 and NT$110 million for 3Q09.
  -- Income before tax was NT$3,972 million for 4Q09, compared to NT$3,857
     million in the previous quarter.  We recorded income tax expense of
     NT$418 million during the quarter, compared to NT$558 million in 3Q09.
  -- In 4Q09, net income was NT$3,450 million, compared to a net loss of
     NT$800 million for 4Q08 and net income of NT$3,187 million for 3Q09.
  -- Our total number of shares outstanding at the end of the quarter was
     5,488,829,114, including treasury stock owned by our subsidiaries.  Our
     4Q09 diluted earnings per share of NT$0.66 (or US$0.102 per ADS) was
     based on 5,200,502,367 weighted average number of shares outstanding in
     4Q09.

  2009 Full-Year Results
  -- Net revenues for the full year of 2009 amounted to NT$85,775 million,
     down 9% from 2008.  The revenue contribution from IC packaging
     operations (including module assembly), testing operations, and
     substrates sold to third parties was NT$67,935 million, NT$15,795
     million, and NT$2,045 million, respectively, and each represented
     approximately 79%, 19% and 2% respectively, of total net revenues for
     the year.
  -- Cost of revenues for the full year of 2009 were NT$67,629 million,
     compared with NT$72,661 million in 2008.
  -- Gross profit for the year was NT$18,146 million, down 17% compared to
     NT$21,770 million in 2008.  Gross margin was 21% for the year, down
     from 23% in 2008.
     * Raw material cost totaled NT$25,536 million during the year,
       representing 30% of total net revenues, compared with NT$27,276
       million and 29% of total net revenues in 2008.
     * Labor cost totaled NT$12,897 million during the year, representing
       15% of total net revenues, compared with NT$14,550 million and 15% of
       total net revenues in 2008.
     * Depreciation, amortization and rental expenses totaled NT$16,603
       million during the year, representing 19% of total net revenues,
       compared with NT$16,371 million and 17% of total net revenues in
       2008.
  -- Total operating expenses during 2009 were NT$9,132 million, including
     NT$3,612 million in R&D and NT$5,520 million in SG&A.  Total operating
     expenses as a percentage of net revenues was 11% in 2009, the same as
     the period in 2008.
  -- Operating income for the year was NT$9,014 million, compared to
     operating income of NT$11,246 for the previous year.  Operating margin
     was 11% in 2009, down from 12% in 2008.
  -- Total non-operating expenses for the year were NT$626 million,
     compared to NT$1,770 million for 2008.  The decrease was primarily due
     to the valuation adjustment from financial assets and liabilities, and
     the gain on equity-method long-term Investment.
  -- Income before tax was NT$8,388 million for 2009.  We recognized an
     income tax expense of NT$1,485 million during the year.
  -- In 2009, net income amounted to NT$6,744 million, compared with a net
     income of NT$6,160 in 2008.
  -- Our total shares outstanding at the end of the year were 5,488,829,114,
     including treasury stock owned by our subsidiaries.  Our diluted
     earnings per share for 2009 was NT$1.29, or US$0.195 per ADS, based on
     5,207,574,499 weighted average number of shares outstanding.

  LIQUIDITY AND CAPITAL RESOURCES
  -- As of Dec 31, 2009, our cash and other financial assets totaled
     NT$27,578 million, compared to NT$32,520 million as of Sep 30, 2009.
  -- Capital expenditures in 4Q09 totaled US$172 million, of which US$139
     million was used for IC packaging, US$32 million was used for testing
     and US$1 million was used for interconnect materials.
  -- For the full year 2009, we spent US$349 million for capital
     expenditures, including US$274 million for IC packaging, US$73 million
     for testing, and US$2 million for interconnect material.
  -- As of Dec 31, 2009, we had total bank debt of NT$63,040 million,
     compared to NT$66,381 million as of Sep 30, 2009.  Total bank debt
     consisted of NT$13,025 million of revolving working capital loans,
     NT$935 million of the current portion of long-term debt, and NT$49,080
     million of long-term debt.  Total unused credit lines amounted to
     NT$67,319 million.
  -- Current ratio as of Dec 31, 2009 was 1.78, compared to 1.52 as of Sep
     30, 2009.  Net debt to equity ratio was 0.47 as of Dec 31, 2009.
  -- Total number of employees was 29,538 as of Dec 31, 2009, compared to
     26,977 as of Dec 31, 2008 and 27,940 as of Sep 30, 2009.

  Business Review

  IC Packaging Services (Note 2)
  -- Net revenues generated from our IC packaging operations were NT$21,131
     million during the quarter, up NT$7,126 million, or 51% year-over-year,
     and up NT$1,126 million, or 6% sequentially.
  -- Net revenues from advanced substrate and leadframe-based packaging
     accounted for 87% of total IC packaging net revenues during the
     quarter, down by 1 percentage point from the previous quarter.
  -- Gross margin for our IC packaging operations during the quarter was
     21%, up by 6 percentage points last year and the same as the previous
     quarter.
  -- Capital expenditures for our IC packaging operations amounted to US$139
     million during the quarter, of which US$101 million was used for
     wirebonding packaging capacity and US$38 million was used for wafer
     bumping and flip chip packaging equipment.
  -- As of Dec 31, 2009, there were 9,515 wirebonders in operation.  796
     wirebonders were added and 161 wirebonders were disposed of during the
     quarter.
  -- Net revenues from flip chip packages and wafer bumping services
     accounted for 14% of total packaging net revenues, down by 2 percentage
     points from the previous quarter.

  Note 2: IC packaging services include module assembly services.

  Testing Services
  -- Net revenues generated from our testing operations were NT$4,563
     million, up NT$733 million, or 19% year-over-year, and down NT$25
     million, or 1%, sequentially.
  -- Final testing contributed 83% to total testing net revenues, up by 1
     percentage point from the previous quarter.  Wafer sort contributed 14%
     to total testing net revenues, down by 1 percentage point from the
     previous quarter.  Engineering testing contributed 3% to total testing
     net revenues, which remained unchanged from the previous quarter.
  -- Depreciation, amortization and rental expense associated with our
     testing operations amounted to NT$1,414 million, down from NT$1,575
     million in 4Q08 and down from NT$1,436 million in 3Q09.
  -- In 4Q09, gross margin for our testing operations was 35%, up by 7
     percentage points year-over-year and the same as the previous quarter.
  -- Capital spending on our testing operations amounted to US$32 million
     during the quarter.
  -- As of Dec 31, 2009, there were 1,603 testers in operation.  51 testers
     were added and 17 testers were disposed of during the quarter.

  Substrate Operations
  -- PBGA substrate manufactured by ASE amounted to NT$2,297 million during
     the quarter, up NT$799 million, or 53% year-over-year, and up NT$48
     million, or 2% from the previous quarter.  Of the total output of
     NT$2,297million, NT$599 million was from sales to external customers.
  -- Gross margin for substrate operations was 25% during the quarter, up by
     13 percentage points year-over-year and up by 3 percentage points
     sequentially.
  -- In 4Q09, our internal substrate manufacturing operations supplied 57%
     (by value) of our total substrate requirements.

  Customers
  -- Our five largest customers together accounted for approximately 27% of
     our total net revenues in 4Q09, compared to 30% in 4Q08 and 27% in
     3Q09.  No single customer accounted for more than 10% of our total net
     revenues.
  -- Our top 10 customers contributed 42% of our total net revenues during
     the quarter, compared to 46% in 4Q08 and 42% in 3Q09.
  -- Our customers that are integrated device manufacturers, or IDMs,
     accounted for 38% of our total net revenues during the quarter,
     compared to 42% in 4Q08 and 35% in 3Q09.

  About ASE, Inc.


ASE, Inc. is the world's largest independent provider of IC packaging services and testing services, including front-end engineering testing, wafer probing and final testing services.  ASE, Inc.'s international customer base of more than 200 customers includes such leading names as ATI Technologies Inc., MediaTek Inc., NEC Electronics Corporation, NVIDIA Corporation, NXP Semiconductors, Qualcomm Incorporated, RF Micro Devices Inc. and STMicroelectronics N.V.  With advanced technological capabilities and a global presence spanning Taiwan, Korea, Japan, Singapore, Malaysia and the United States, ASE, Inc. has established a reputation for reliable, high quality products and services.  For more information, visit our website at http://www.aseglobal.com/ .

Safe Harbor Notice

This presentation contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, including statements regarding our future results of operations and business prospects.  Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation.  The words "anticipate", "believe", "estimate", "expect", "intend", "plan" and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this presentation.  Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including risks associated with cyclicality and market conditions in the semiconductor industry; demand for the outsourced semiconductor packaging and testing services we offer and for such outsourced services generally; the highly competitive semiconductor industry; our ability to introduce new packaging, interconnect materials and testing technologies in order to remain competitive; our ability to successfully integrate pending and future mergers and acquisitions; international business activities; our business strategy; general economic and political conditions, including the recent global financial crisis; possible disruptions in commercial activities caused by natural or human-induced disasters; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; fluctuations in foreign currency exchange rates; and other factors.  For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our 2008 Annual Report on Form 20-F filed on June 24, 2009.

  Supplemental Financial Information



  Consolidated Operations

  Amounts in NT$ Millions             4Q/09         3Q/09          4Q/08
  Net Revenues                       26,293        25,205         18,311

  Revenues by End Application
  Communication                         44%           44%            46%
  Computer                              18%           17%            19%
  Automotive and Consumer               37%           37%            35%
  Others                                 1%            2%             0%

  Revenues by Region
  North America                         50%           52%            54%
  Europe                                13%           13%            15%
  Taiwan                                21%           20%            15%
  Japan                                 10%           10%            12%
  Other Asia                             6%            5%             4%



  IC Packaging Services

  Amounts in NT$ Millions             4Q/09         3Q/09          4Q/08
  Net Revenues                       21,131        20,005         14,005

  Revenues by Packaging Type
  Advanced substrate &
   leadframe based                      87%           88%            86%
  Traditional leadframe based            6%            6%             6%
  Module assembly                        4%            3%             4%
  Others                                 3%            3%             4%

  Capacity
  CapEx (US$ Millions) *                139            91             27
  Number of Wirebonders               9,515         8,880          8,446



  Testing Services

  Amounts in NT$ Millions             4Q/09         3Q/09          4Q/08
  Net Revenues                        4,563         4,588          3,830

  Revenues by Testing Type
  Final test                            83%           82%            81%
  Wafer sort                            14%           15%            15%
  Engineering test                       3%            3%             4%

  Capacity
  CapEx (US$ Millions) *                 32            17             19
  Number of Testers                   1,603         1,569          1,583

  * Capital expenditure amounts exclude building construction costs.



                 Advanced Semiconductor Engineering, Inc.
              Summary of Consolidated Income Statements Data
                 (In NT$ millions, except per share data)
                               (Unaudited)


                                For the three months        For the years
                                        ended                  ended
                            Dec. 31   Sep. 30   Dec. 31   Dec. 31   Dec. 31
                              2009      2009      2008     2009      2008
  Net revenues:
   IC Packaging              21,131    20,005    14,005    67,935    73,392
   Testing                    4,563     4,588     3,830    15,795    19,021
   Others                       599       612       476     2,045     2,018
  Total net revenues         26,293    25,205    18,311    85,775    94,431

  Cost of revenues          (19,686)  (18,848)  (15,375)  (67,629)  (72,661)
  Gross profit                6,607     6,357     2,936    18,146   21, 770

  Operating expenses:
   Research and development  (1,081)     (956)     (827)   (3,612)   (3,671)
   Selling, general and
    administrative           (1,564)   (1,434)   (1,357)   (5,520)   (6,853)
   Total operating expenses  (2,645)   (2,390)   (2,184)   (9,132)  (10,524)
  Operating income (loss)     3,962     3,967       752     9,014    11,246

  Net non-operating (expenses)
   income:
   Interest expense - net      (256)     (303)     (522)   (1,334)   (1,487)
   Foreign exchange gain (loss)  35       (30)     (166)        4       282
   Gain (loss) on
    equity-method investments   135       112      (125)      329        77
   Others                        96       111      (462)      375      (642)
   Total non-operating
    (expenses) income            10      (110)   (1,275)     (626)   (1,770)
  Income (loss) before tax    3,972     3,857      (523)    8,388     9,476

  Income tax benefit (expense) (418)     (558)     (300)   (1,485)   (2,268)
  (Loss) income from
   continuing operations and
   before minority interest   3,554     3,299      (823)    6,903     7,208
  Minority interest            (104)     (112)       23      (159)   (1,048)

  Net income (loss)           3,450     3,187      (800)    6,744     6,160

  Per share data:
  Earnings (losses)
   per share
   - Basic                  NT$0.67   NT$0.62  NT$(0.15)  NT$1.31   NT$1.14
   - Diluted                NT$0.66   NT$0.61  NT$(0.15)  NT$1.29   NT$1.12

  Earnings (losses) per
   equivalent ADS
  - Basic                  US$0.104  US$0.094 US$(0.023) US$0.198  US$0.181
  - Diluted                US$0.102  US$0.093 US$(0.023) US$0.195  US$0.178

  Number of weighted
   average shares used in
   diluted EPS calculation
   (in thousands)         5,200,502 5,186,949 5,324,543 5,207,574 5,457,356

  Exchange rate
   (NT$ per US$1)             32.26     32.81     32.83     33.01     31.47



                 Advanced Semiconductor Engineering, Inc.
                Summary of Consolidated Balance Sheet Data
                            (In NT$ millions)
                               (Unaudited)

                                          As of Dec. 31,    As of Sep. 30,
                                                   2009              2009

  Current assets:
   Cash and cash equivalents                     22,558            26,059
   Financial assets - current                     5,020             6,461
   Notes and accounts receivable                 17,812            16,847
   Inventories                                   12,206             5,723
   Others                                         3,817             4,397
   Total current assets                          61,413            59,487

  Financial assets - non current                  5,160             4,797
  Properties - net                               79,364            77,566
  Intangible assets                              12,232            12,900
  Others                                          3,892             3,932
  Total assets                                  162,061           158,682

  Current liabilities:
   Short-term debts - revolving credit           13,025            17,856
   Current portion of long-term debts               935             3,972
   Notes and accounts payable                     8,954             8,209
   Others                                        11,660             9,047
   Total current liabilities                     34,574            39,084

  Long-term debts                                49,080            44,553
  Other liabilities                               3,693             3,807
  Total liabilities                              87,347            87,444

  Minority interest                               3,098             2,664

  Shareholders' equity                           71,616            68,574
  Total liabilities & shareholders' equity      162,061           158,682


  Current Ratio                                    1.78              1.52
  Net Debt to Equity                               0.47              0.48



  Contact:

   ASE, Inc.
   Room 1901, No. 333, Section 1
   Keelung Road, Taipei, Taiwan, 110

   Tel: [phone]
   Fax: [phone]
   http://www.aseglobal.com/

   Joseph Tung, CFO / Vice President
   Allen Kan, Manager
   Email: 

   Clare Lin, Director (US Contact)
   Tel:   [phone]
   Email: 

DATASOURCE: Advanced Semiconductor Engineering, Inc.



CONTACT:  Joseph Tung, CFO and Vice President; or Allen Kan, Manager,

[phone], or fax, [phone], or ; or Clare Lin,

Director (US Contact), [phone], or , all of

Advanced Semiconductor Engineering, Inc. 



Web Site:  http://www.aseglobal.com/ 

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