FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934


October 30, 2014
 
Commission File Number    001-16125
   
   
Advanced Semiconductor Engineering, Inc.
( Exact name of Registrant as specified in its charter)
   
26 Chin Third Road
Nantze Export Processing Zone
Kaoshiung, Taiwan
Republic of China
(Address of principal executive offices)
 
 
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 o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
____
 
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
____
 
 
 
 

 
 
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes o         No  x
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
Not applicable

 
 
 
 

 
 
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.
 
       
Date: October 30, 2014
By:   
/s/ Joseph Tung
 
 
                                                                     Name:   
Joseph Tung
 
 
                                                                       Title:   
Chief Financial Officer
 
 
 
 
 

 
 
Advanced Semiconductor Engineering Inc.
 
 
FOR IMMEDIATE RELEASE

Contact:
ASE, Inc.
Room 1901, 333, Keelung Rd., Sec. 1
Taipei, Taiwan, 110
 
 
Tel: + 886.2.6636.5678
Fax: + 886.2.2757.6121
http://www.aseglobal.com
Joseph Tung, Chief Financial Officer
Eddie Chang, Senior Director
Joseph Su, Senior Manager
ir@aseglobal.com
 
Michelle Jao, Manager (US Contact)
mjao@iselabs.com
Tel: + 1.510.687.2481
   

ADVANCED SEMICONDUCTOR ENGINEERING, INC. REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2014


Taipei, Taiwan, R.O.C., October 30, 2014 – Advanced Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE: ASX) (“We”, “ASE”, or the “Company”), the world’s largest independent provider of packaging and testing services, today reported unaudited net revenues1 of NT$66,632 million for the third quarter of 2014 (3Q14), up by 17% year-over-year and up by 14% sequentially.  Net income attributable to shareholders of the parent for the quarter totaled NT$7,205 million, up from a net income attributable to shareholders of the parent of NT$4,430 million in 3Q13 and up from a net income attributable to shareholders of the parent of NT$5,094 million in 2Q14.  Diluted earnings per share for the quarter were NT$0.82 (or US$0.137 per ADS), compared to diluted earnings per share of NT$0.57 for 3Q13 and NT$0.64 for 2Q14.  Diluted earnings per share for the first three quarters of 2014 were NT$1.98 (or US$0.329 per ADS), compared to diluted earnings per share of NT$1.36 for the same three quarters of 2013.
 
RESULTS OF OPERATIONS

3Q14 Results Highlights – Consolidated
l
Net revenue contribution from packaging operations, testing operations, EMS operations, substrates sold to third parties and others each represented approximately 48%, 10%, 40%, 2% and 0%, respectively, of total net revenues for the quarter.
l
Cost of revenue was NT$52,434 million for the quarter, up by 16% year-over-year and up from NT$46,015 million in the previous quarter.
 
 
-
Raw material cost totaled NT$29,910 million during the quarter, representing 45% of total net revenues, compared with NT$25,142 million and 43% of total net revenues in the previous quarter.
 
 
-
Labor cost totaled NT$8,733 million during the quarter, representing 13% of total net revenues, compared with NT$8,179 million and 14% of total net revenues in the previous quarter.


 1 All financial information presented in this press release is unaudited, consolidated and prepared in accordance with Taiwan-IFRS (International Financial Reporting Standards as endorsed for use in R.O.C.).  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 of operations for any future period.

 
 

 
Advanced Semiconductor Engineering Inc.
 
-
Depreciation, amortization and rental expenses totaled NT$6,329 million during the quarter, up by 4% year-over-year and up by 3% sequentially.
l
Gross margin decreased 0.2 percentage points to 21.3% in 3Q14 from 21.5% in 2Q14.
l
Total operating expenses during 3Q14 were NT$6,114 million, including NT$2,552 million in R&D and NT$3,562 million in SG&A, compared with total operating expenses of NT$6,000 million in 2Q14.  Total operating expenses as a percentage of net revenues was 9% in 3Q14, down from 10% in 3Q13 and 2Q14.
l
Operating income for the quarter totaled NT$8,084 million, up from NT$6,600 million in the previous quarter.  Operating margin was 12.1% in 3Q14 compared to 11.3% in 2Q14.
l
In terms of non-operating items:
 
-
Net interest expense was NT$504 million, up from NT$500 million in 2Q14.
 
-
Net foreign exchange loss of NT$214 million was primarily attributable to the appreciation of the U.S. dollar against NT dollar.
 
-
Gain on equity-method investments of NT$14 million was primarily attributable to the income from investment on Hung Ching Development & Construction Co. Ltd.
 
-
Gain on valuation of financial assets and liabilities was NT$1,294 million.
 
-
Other net non-operating loss of NT$84 million were primarily related to miscellaneous loss.  Total non-operating income for the quarter were NT$506 million, compared to total non-operating expenses of NT$731 million for 3Q13 and total non-operating expenses of NT$550 million for 2Q14.
 
l
Income before tax was NT$8,590 million for 3Q14, compared to NT$6,050 million in the previous quarter.  We recorded income tax expense of NT$1,237 million during the quarter, compared to NT$818 million in 2Q14.
l
In 3Q14, net income attributable to shareholders of the parent was NT$7,205 million, compared to net income attributable to shareholders of the parent of NT$4,430 million for 3Q13 and net income attributable to shareholders of the parent of NT$5,094 million for 2Q14.
l
Our total number of shares outstanding at the end of the quarter was 7,852,537,846, including treasury stock owned by our subsidiaries.  Our 3Q14 diluted earnings per share of NT$0.82 (or US$0.137 per ADS) were based on 8,194,416,715 weighted average number of shares outstanding in 3Q14.

3Q14 Results Highlights – IC ATM2
l
Net revenue contribution from IC ATM operations was NT$42,211 million for the quarter, up by 12% year-over-year and up by 8% sequentially.  Net revenue contribution from packaging operations, testing operations, and substrates sold to third parties was NT$34,349 million, NT$6,827 million, and NT$1,035 million, respectively, and each represented approximately 81%, 16%, and 3%, respectively, of total net revenues for the quarter.
l
Cost of revenues was NT$30,138 million for the quarter, up by 7% year-over-year and up by 5% sequentially.
 
 
-
Raw material cost totaled NT$9,466 million during the quarter, representing 22% of total net revenues, compared with NT$9,454 million and 24% of total net revenues in the previous quarter.
 
 
-
Labor cost totaled NT$7,791 million during the quarter, representing 18% of total net revenues, compared with NT$7,317 million and 19% of total net revenues in the previous quarter.


2 ATM stands for Semiconductor Assembly, Testing and Material.

 
2

 
Advanced Semiconductor Engineering Inc.
 
-
Depreciation, amortization and rental expenses totaled NT$6,057 million during the quarter, up by 6% year-over-year and up by 3% sequentially.
l
Gross margin increased 1.6 percentage points to 28.6% in 3Q14 from 27.0% in 2Q14.
l
Total operating expenses during 3Q14 were NT$4,725 million, including NT$2,011 million in R&D and NT$2,714 million in SG&A, compared with total operating expenses of NT$4,615 million in 2Q14.  Total operating expenses as a percentage of net revenues was 11% in 3Q14, remained the same as 3Q13 and down from 12% in 2Q14.
l
Operating income for the quarter totaled NT$7,348 million, up from NT$5,973 million in the previous quarter.  Operating margin was 17.4% in 3Q14 compared to 15.2% in 2Q14.

3Q14 Results Highlights – EMS
l
Net revenue contribution from EMS operations for the quarter was NT$26,766 million, up by 37% year-over-year and up by 31% sequentially.
l
Cost of revenues for the quarter was NT$24,477 million, up by 39% year-over-year and up by 33% sequentially.
 
 
-
Raw material cost totaled NT$20,457 million during the quarter, representing 76% of total net revenues, compared with NT$15,704 million and 77% of total net revenues in the previous quarter.
 
 
-
Labor cost totaled NT$943 million during the quarter, representing 4% of total net revenues, compared with NT$862 million and 4% of total net revenues in the previous quarter.
 
 
-
Depreciation, amortization and rental expenses totaled NT$269 million during the quarter, up by 0.4% year-over-year and up by 3% sequentially.
 
l
Gross margin decreased to 8.6% in 3Q14 from 10.0% in 2Q14.
l
Total operating expenses during 3Q14 were NT$1,383 million, including NT$561 million in R&D and NT$822 million in SG&A, compared with total operating expenses of NT$1,349 million in 2Q14.  Total operating expenses as a percentage of net revenues was 5% in 3Q14, down from 6% in 3Q13 and down from 7% in 2Q14.
l
Operating income for the quarter totaled NT$906 million, up from NT$692 million in the previous quarter.  Operating margin was 3.4% in 3Q14, remained the same as 2Q14.

LIQUIDITY AND CAPITAL RESOURCES
l
As of September 30, 2014, our cash and current financial assets totaled NT$36,785 million, compared to NT$45,383 million as of June 30, 2014.
l
Capital expenditures in 3Q14 totaled US$430 million, of which US$281 million were used for packaging, US$70 million for testing, US$74 million for EMS and US$5 million for interconnect materials.
l
As of September 30, 2014, we had total debt of NT$94,918 million, compared to NT$87,046 million as of June 30, 2014.  Total debt consisted of NT$38,672 million of short-term borrowings, NT$3,226 million of the current portion of long-term borrowings and capital lease obligations and NT$53,020 million of bonds payable, long-term borrowings and capital lease obligations.  Total unused credit lines amounted to NT$133,674 million.
l
Current ratio as of September 30, 2014 was 1.25, compared to 1.23 as of June 30, 2014.  Net debt to equity ratio was 0.43 as of September 30, 2014.
l
Total number of employees was 66,091 as of September 30, 2014, compared to 59,867 as of September 30, 2013 and 64,285 as of June 30, 2014.

 
3

 
Advanced Semiconductor Engineering Inc.
 
BUSINESS REVIEW

Packaging Operations3
l
Net revenues generated from our packaging operations were NT$34,349 million during the quarter, up by NT$3,585 million, or by 12% year-over-year, and up by NT$2,557 million, or by 8% sequentially.
l
Net revenues from advanced packaging accounted for 29% of our total packaging net revenues during the quarter, up by 3 percentage points from the previous quarter.  Net revenues from IC wirebonding accounted for 61% of our total packaging net revenues during the quarter, down by 3 percentage points from the previous quarter.  Net revenues from discrete and others accounted for 10% of our total packaging net revenues during the quarter, remained the same as the previous quarter.
l
Gross margin for our packaging operations during the quarter was 25.8%, up by 3.5 percentage points year-over-year and up by 1.6 percentage points from the previous quarter.
l
Capital expenditures for our packaging operations amounted to US$281 million during the quarter, of which US$110 million were used for purchases of wafer bumping and flip chip packaging equipment, US$153 million for common equipment purchases, including SiP equipment purchases, and US$18 million for wirebond packaging specific purposes.
l
As of September 30, 2014, there were 15,994 wirebonders in operation.  323 wirebonders were added and 91 wirebonders were disposed of during the quarter.

Testing Operations
l
Net revenues generated from our testing operations were NT$6,827 million, up by NT$548 million, or by 9% year-over-year, and up by NT$227 million, or by 3% sequentially.
l
Final testing accounted for 76% of our total testing net revenues, down by 1 percentage point from the previous quarter.  Wafer sort accounted for 21% of our total testing net revenues, remained the same as the previous quarter.  Engineering testing accounted for 3% of our total testing net revenues, up by 1 percentage point from the previous quarter.
l
Depreciation, amortization and rental expense associated with our testing operations amounted to NT$1,634 million, down from NT$1,695 million in 3Q13 and down from NT$1,690 million in 2Q14.
l
In 3Q14, gross margin for our testing operations was 39.8%, up by 2.7 percentage points year-over-year and up by 2.6 percentage points from the previous quarter.
l
Capital expenditures for our testing operations amounted to US$70 million during the quarter.
l
As of September 30, 2014, there were 3,295 testers in operation. 150 testers were added and 99 testers were disposed of during the quarter.

EMS Operations
l
Net revenues generated from our EMS operations were NT$26,766 million for the quarter, up by NT$7,215 million, or by 37% year-over-year, and up by NT$6,257 million, or by 31% sequentially.
l
Communications products accounted for 55% of our total net revenues from EMS operations for the quarter, up by 11 percentage points from the previous quarter.  Computing products accounted for 17% of our total net revenues from EMS operations, down by 7 percentage points from the previous quarter.  Consumer products accounted for 9% of our total net revenues from EMS operations, down by 2 percentage points from the previous quarter.  Industrial products accounted for 11% of our total net revenues from EMS operations, down


3 IC packaging services include module assembly services.

 
4

 
Advanced Semiconductor Engineering Inc.
 
by 1 percentage point from the previous quarter.  Automotive products accounted for 7% of our total net revenues from EMS operations, down by 1 percentage point from the previous quarter.
l
In 3Q14, gross margin for our EMS operations was 8.6%, down by 1.1 percentage points year-over-year and down by 1.4 percentage points from the previous quarter.
l
Capital expenditures for our EMS operations amounted to US$74 million during the quarter.

Substrate Operations
l
PBGA substrate manufactured by ASE amounted to NT$2,567 million during the quarter, up by NT$114 million, or by 5% year-over-year, and up by NT$49 million, or by 2% from the previous quarter.  Of the total output of NT$ 2,567 million, NT$1,033 million was from sales to external customers.
l
Gross margin for substrate operations was 19.7% during the quarter, up by 1.0 percentage point year-over-year and down by 0.6 percentage points from the previous quarter.
l
In 3Q14, our internal substrate manufacturing operations supplied 33% (by value) of our total substrate requirements.

Customers
IC ATM CONSOLIDATED BASIS
l
Our five largest customers together accounted for approximately 37% of our total net revenues in 3Q14, compared to 37% in 3Q13 and 32% in 2Q14.  There was one customer which accounted for more than 10% of our total net revenues in 3Q14.
l
Our top 10 customers contributed 51% of our total net revenues during the quarter, compared to 49% in 3Q13 and 46% in 2Q14.
l
Our customers that are integrated device manufacturers, or IDMs, accounted for 33% of our total net revenues during the quarter, compared to 35% in 3Q13 and 37% in 2Q14.

EMS BASIS
l
Our five largest customers together accounted for approximately 73% of our total net revenues in 3Q14, compared to 74% in 3Q13 and 71% in 2Q14.  There was one customer that accounted for more than 10% of our total net revenues in 3Q14.
l
Our top 10 customers contributed 87% of our total net revenues during the quarter, compared to 86% in 3Q13 and 84% in 2Q14.

OUTLOOK
Based on our current business outlook and exchange rate assumptions, management projects overall performance for the fourth quarter of 2014 to be as follows:
 
l
IC-ATM production capacity should increase by roughly 1% quarter-over-quarter; blended IC-ATM utilization rate should go up by 1-3% as compared to 3rd quarter;
 
l
The pace for our EMS 3rd quarter sequential growth should carry into 4th quarter;
 
l
Consolidated gross margin should edge down, while consolidated operating margin should be flattish.


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,

 
5

 
Advanced Semiconductor Engineering Inc.
 
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 press release.  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 press release. 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 or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People’s Republic of China; general economic and political conditions; the recent global economic crisis; possible disruptions in commercial activities caused by natural or human-induced disasters; 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 2013 Annual Report on Form 20-F filed on April 17, 2014.


 
6

 

Supplemental Financial Information
IC ATM Consolidated Operations
Amounts in NT$ Millions
3Q/14
2Q/14
3Q/13
Net Revenues
42,211
39,266
37,810
Revenues by Application
     
Communication
53%
50%
55%
Computer
12%
12%
11%
Automotive and Consumer
35%
38%
34%
Others
0%
0%
0%
Revenues by Region
     
North America
62%
60%
60%
Europe
10%
10%
10%
Taiwan
18%
18%
17%
Japan
6%
6%
7%
Other Asia
4%
6%
6%

Packaging Operations
Amounts in NT$ Millions
3Q/14
2Q/14
3Q/13
Net Revenues
34,349
31,792
30,764
Revenues by Packaging Type
     
Advanced Packaging
29%
26%
28%
IC Wirebonding
61%
64%
61%
Discrete and Others
10%
10%
11%
Capacity
     
CapEx (US$ Millions)*
281
257
157
Number of Wirebonders
15,994
15,762
15,765

Testing Operations
Amounts in NT$ Millions
3Q/14
2Q/14
3Q/13
Net Revenues
6,827
6,600
6,279
Revenues by Testing Type
     
Final test
76%
77%
77%
Wafer sort
21%
21%
20%
Engineering test
3%
2%
3%
Capacity
     
CapEx (US$ Millions)*
70
54
50
Number of Testers
3,295
3,244
3,147

EMS Operations
Amounts in NT$ Millions
3Q/14
2Q/14
3Q/13
Net Revenues
26,766
20,509
19,551
Revenues by End Application
     
Communication
55%
44%
47%
Computer
17%
24%
20%
Consumer
9%
11%
13%
Industrial
11%
12%
12%
Automotive
7%
8%
7%
Others
1%
1%
1%
Capacity
     
CapEx (US$ Millions)*
74
43
16
* Capital expenditure amounts exclude building construction costs.

 
7

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

   
For the three months ended
   
For the period ended
 
   
Sep. 30
2014
   
Jun. 30
2014
   
Sep. 30
2013
   
Sep. 30
2014
   
Sep. 30
2013
 
Net revenues:
                             
Packaging
    32,031       30,641       29,977       89,394       83,901  
Testing
    6,827       6,600       6,279       19,212       18,507  
Direct Material
    1,033       873       767       2,685       2,205  
EMS
    26,741       20,501       19,551       68,607       50,120  
Others
    -       -       174       49       965  
Total net revenues
    66,632       58,615       56,748       179,947       155,698  
                                         
Cost of revenues
    (52,434 )     (46,015 )     (45,161 )     (142,800 )     (125,394 )
Gross profit
    14,198       12,600       11,587       37,147       30,304  
                                         
Operating expenses:
                                       
Research and development
    (2,552 )     (2,681 )     (2,421 )     (7,526 )     (6,665 )
Selling, general and administrative
    (3,562 )     (3,319 )     (3,067 )     (9,867 )     (8,534 )
Total operating expenses
    (6,114 )     (6,000 )     (5,488 )     (17,393 )     (15,199 )
Operating income
    8,084       6,600       6,099       19,754       15,105  
                                         
Net non-operating (expenses) income:
                                       
Interest expense - net
    (504 )     (500 )     (512 )     (1,535 )     (1,477 )
Foreign exchange gain (loss)
    (214 )     711       305       (171 )     (194 )
Gain (loss) on equity-method investments
    14       (31 )     7       (81 )     (24 )
Gain (loss) on valuation of financial assets and liabilities
    1,294       (948 )     (145 )     650       756  
Others
    (84 )     218       (386 )     307       (601 )
Total non-operating income (expenses)
    506       (550 )     (731 )     (830 )     (1,540 )
                                         
Income before tax
    8,590       6,050       5,368       18,924       13,565  
                                         
Income tax expense
    (1,237 )     (818 )     (822 )     (2,782 )     (2,752 )
Income from continuing operations and before noncontrolling interest
    7,353       5,232       4,546       16,142       10,813  
Noncontrolling interest
    (148 )     (138 )     (116 )     (405 )     (332 )
                                         
Net income attributable to shareholders of the parent
    7,205       5,094       4,430       15,737       10,481  
                                         
Per share data:
                                       
Earnings (losses) per share
                                       
– Basic
  $ NT0.94     $ NT0.66     $ NT0.59     $ NT2.05     $ NT1.40  
– Diluted
  $ NT0.82     $ NT0.64     $ NT0.57     $ NT1.98     $ NT1.36  
                                         
Earnings (losses) per equivalent ADS
                                       
– Basic
  $ US0.156     $ US0.110     $ US0.099     $ US0.341     $ US0.237  
– Diluted
  $ US0.137     $ US0.107     $ US0.096     $ US0.329     $ US0.230  
                                         
Number of weighted average shares used in diluted EPS calculation (in thousands)
    8,194,417       7,835,168       7,651,064       8,209,165       7,613,415  
                                         
Exchange rate (NT$ per US$1)
    29.92       30.13       29.89       30.07       29.66  
 
 
8

 
 
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Statement of Comprehensive Income Data – IC ATM
 (In NT$ millions, except per share data)
(Unaudited)
 
   
For the three months ended
   
For the period ended
 
   
Sep. 30
2014
   
Jun. 30
2014
   
Sep. 30
2013
   
Sep. 30
2014
   
Sep. 30
2013
 
Net revenues:
                             
Packaging
    34,349       31,792       30,764       93,928       84,710  
Testing
    6,827       6,600       6,279       19,212       18,507  
Direct Material
    1,035       874       767       2,688       2,205  
Total net revenues
    42,211       39,266       37,810       115,828       105,422  
                                         
Cost of revenues
    (30,138 )     (28,678 )     (28,164 )     (84,924 )     (80,829 )
Gross profit
    12,073       10,588       9,646       30,904       24,593  
                                         
Operating expenses:
                                       
Research and development
    (2,011 )     (2,169 )     (1,962 )     (6,016 )     (5,339 )
Selling, general and administrative
    (2,714 )     (2,446 )     (2,301 )     (7,357 )     (6,392 )
Total operating expenses
    (4,725 )     (4,615 )     (4,263 )     (13,373 )     (11,731 )
Operating income
    7,348       5,973       5,383       17,531       12,862  
                                         
Net non-operating (expenses) income:
                                       
Interest expense - net
    (528 )     (513 )     (544 )     (1,594 )     (1,553 )
Foreign exchange gain (loss)
    (184 )     675       306       (194 )     (153 )
Gain (loss) on equity-method investments
    575       405       557       1,534       1,548  
Gain (loss) on valuation of financial assets and liabilities
    1,197       (1,021 )     (213 )     474       481  
Others
    (42 )     260       (355 )     432       (442 )
Total non-operating income (expenses)
    1,018       (194 )     (249 )     652       (119 )
                                         
Income before tax
    8,366       5,779       5,134       18,183       12,743  
                                         
Income tax expense
    (1,105 )     (647 )     (661 )     (2,322 )     (2,142 )
Income from continuing operations and before noncontrolling interest
    7,261       5,132       4,473       15,861       10,601  
Noncontrolling interest
    (56 )     (38 )     (43 )     (124 )     (120 )
                                         
Net income attributable to shareholders of the parent
    7,205       5,094       4,430       15,737       10,481  
                                         
Per share data:
                                       
Earnings (losses) per share
                                       
– Basic
  $ NT0.94     $ NT0.66     $ NT0.59     $ NT2.05     $ NT1.40  
– Diluted
  $ NT0.82     $ NT0.64     $ NT0.57     $ NT1.98     $ NT1.36  
                                         
Number of weighted average shares used in diluted EPS calculation (in thousands)
    8,194,417       7,835,168       7,651,064       8,209,165       7,613,415  
 
 
9

 
 
Universal Scientific Industrial Co., Ltd.
Summary of Consolidated Statement of Comprehensive Income Data – EMS
 (In NT$ millions, except per share data)
(Unaudited)
 
   
For the three months ended
   
For the period ended
 
   
Sep. 30
2014
   
Jun. 30
2014
   
Sep. 30
2013
   
Sep. 30
2014
   
Sep. 30
2013
 
Net revenues:
                             
Total net revenues
    26,766       20,509       19,551       68,651       50,120  
                                         
Cost of revenues
    (24,477 )     (18,468 )     (17,662 )     (62,264 )     (44,740 )
Gross profit
    2,289       2,041       1,889       6,387       5,380  
                                         
Operating expenses:
                                       
Research and development
    (561 )     (535 )     (476 )     (1,577 )     (1,373 )
Selling, general and administrative
    (822 )     (814 )     (735 )     (2,379 )     (2,023 )
Total operating expenses
    (1,383 )     (1,349 )     (1,211 )     (3,956 )     (3,396 )
Operating income
    906       692       678       2,431       1,984  
                                         
Net non-operating (expenses) income:
                                       
Total non-operating income
    110       138       109       303       237  
                                         
Income before tax
    1,016       830       787       2,734       2,221  
                                         
Income tax expense
    (138 )     (178 )     (100 )     (481 )     (322 )
Income from continuing operations and before noncontrolling interest
    878       652       687       2,253       1,899  
Noncontrolling interest
    (93 )     (105 )     (72 )     (288 )     (215 )
                                         
Net income attributable to shareholders of the parent
    785       547       615       1,965       1,684  


 
10

 
 
Advanced Semiconductor Engineering, Inc.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)
(Unaudited)
 
    As of Sep. 30, 2014     As of Jun. 30, 2014  
             
Current assets:
           
Cash and cash equivalents
    32,968       41,730  
Financial assets – current
    3,817       3,653  
Notes and accounts receivable
    48,495       41,115  
Inventories
    42,264       37,427  
Others
    5,682       4,483  
Total current assets
    133,226       128,408  
                 
Financial assets – non current & Investments – equity method
    2,475       2,574  
Property plant and equipment
    148,998       135,555  
Intangible assets
    11,880       11,864  
Prepaid lease payments
    2,496       2,547  
Others
    5,652       6,652  
Total assets
    304,727       287,600  
                 
Current liabilities:
               
Short-term borrowings
    38,672       33,281  
Current portion of bonds payable
    0       728  
Current portion of long-term borrowings & capital lease obligations
    3,226       5,316  
Notes and accounts payable
    34,882       26,702  
Others
    29,822       38,092  
Total current liabilities
    106,602       104,119  
                 
Bonds payable
    30,194       20,781  
Long-term borrowings & capital lease obligations
    22,826       26,940  
Other liabilities
    8,994       8,884  
Total liabilities
    168,616       160,724  
                 
Noncontrolling interest
    4,623       4,321  
                 
Shareholders of the parent
    131,488       122,555  
                 
Total liabilities & shareholders’ equity
    304,727       287,600  
                 
                 
Current Ratio
    1.25       1.23  
Net Debt to Equity
    0.43       0.33  
 
 
11

 

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