Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year of 2013

IC ATM consolidated Basis

  • Our five largest customers together accounted for approximately 38% of our total net revenues in 4Q13, compared to 37% in 4Q12 and 3Q13. There was one customer which accounted for more than 10% of our total net revenues.
  • Our top 10 customers contributed 52% of our total net revenues during the quarter, compared to 52% in 4Q12 and 49% in 3Q13.
  • Our customers that are integrated device manufacturers, or IDMs, accounted for 34% of our total net revenues during the quarter, compared to 34% in 4Q12 and 35% in 3Q13.

EMS Basis

  • Our five largest customers together accounted for approximately 81% of our total net revenues in 4Q13, compared to 71% in 4Q12 and 74% in 3Q13. There was one customer which accounted for more than 10% of our total net revenues in 4Q13.
  • Our top 10 customers contributed 90% of our total net revenues during the quarter, compared to 84% in 4Q12 and 86% in 3Q13.

OUTLOOK

Based on our current business outlook and exchange rate assumption, management projects overall performance for the first quarter of 2014 to be as follows:

  • Our IC-ATM revenues should decline 12% to 15% and our EMS revenues to show a seasonal decline of approximately 30%;
  • Our consolidated gross profit margin is expected to be between 17% and 18%;
  • Our capital expenditure for full year 2014 should be around US$700 million, subject to adjustments in line with market condition.

About ASE, Inc.

ASE, Inc. is the world's largest independent provider of packaging services and testing services, including front-end engineering testing, wafer probing and final testing services.  With advanced technological capabilities and a global presence spanning Taiwan, China, Korea, Japan, Singapore, Malaysia and the United States, ASE, Inc. has established a reputation for reliable, high quality products and services.  For more information, please visit our website at http://www.aseglobal.com.

Safe Harbor Notice

This press release 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 2012 Annual Report on Form 20-F filed on April 23, 2013.

Supplemental Financial Information

IC ATM Consolidated Operations

Amounts in NT$ Millions

4Q/13

3Q/13

4Q/12

Net Revenues

37,900

37,810

34,396

Revenues by End Application




Communications

57%

55%

55%

Computers

10%

11%

12%

Automotive and Consumer

33%

34%

33%

Others

0%

0%

0%

Revenues by Region




North America

63%

60%

58%

Europe

10%

10%

11%

Taiwan

16%

17%

18%

Japan

6%

7%

7%

Other Asia

5%

6%

6%


Packaging Operations

Amounts in NT$ Millions

4Q/13

3Q/13

4Q/12

Net Revenues

30,929

30,764

27,710

Revenues by Packaging Type




Advanced Packaging

33%

28%

26%

IC Wirebonding

57%

61%

61%

Discrete and Others

10%

11%

13%

Capacity




CapEx (US$ Millions)*

46

157

133

Number of Wirebonders

15,692

15,765

15,549


Testing Operations

Amounts in NT$ Millions          

4Q/13

3Q/13

4Q/12

Net Revenues

6,225

6,279

6,036

Revenues by Testing Type




Final test

77%

77%

79%

Wafer sort

21%

20%

19%

Engineering test

2%

3%

2%

Capacity




CapEx (US$ Millions)*

17

50

44

Number of Testers

3,117

3,147

2,905


EMS Operations

Amounts in NT$ Millions

4Q/13

3Q/13

4Q/12

Net Revenues

28,420

19,551

20,141

Revenues by End Application




Communications

61%

47%

44%

Computing

16%

20%

26%

Consumer

8%

13%

13%

Industrial

9%

12%

11%

Automotive

5%

7%

5%

Others

1%

1%

1%

Capacity




CapEx (US$ Millions)*

12

16

18

* Capital expenditure amounts exclude building construction costs.


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