ASE Posts 20% Growth in 2Q15 Net Revenues

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Advanced Semiconductor Engineering Inc., a provider of IC packaging and testing services as well as electronics manufacturing services (EMS), has reported unaudited net revenues of NT$70.222 billion for the second quarter of 2015, up by 20% year-over-year and up by 9% sequentially.

Net income attributable to shareholders of the parent for the quarter totaled NT$3.652 billion, down from a net income attributable to shareholders of the parent of NT$5.106 billion in 2Q14 and down from a net income attributable to shareholders of the parent of NT$4.469 billion in 1Q15.

Net revenue contribution from packaging operations, testing operations, EMS operations, substrates sold to third parties and others, each represented approximately 41%, 9%, 49%, 1% and 0%, respectively, of total net revenues for the quarter.

Packaging Operations

• Net revenues generated from packaging operations were NT$30.558 billion during the quarter, down by NT$1,234 million, or by 4% year-over-year, and down by NT$988 million, or by 3% sequentially.
• Net revenues from advanced packaging accounted for 31% of total packaging net revenues during the quarter, down by 2 percentage points from 1Q15. Net revenues from IC wirebonding accounted for 57% of total packaging net revenues during the quarter, down by 1 percentage point from 1Q15. Net revenues from discrete and others accounted for 12% of total packaging net revenues during the quarter, up by 3 percentage points from 1Q15.

Testing Operations

• Net revenues generated from testing operations were NT$6.23 billion during the quarter, down by NT$370 million, or by 6% year-over-year, and up by NT$50 million, or by 1% sequentially.
• Final testing accounted for 75% of total testing net revenues, up by 1 percentage point from the previous quarter. Wafer sort accounted for 21% of total testing net revenues, remained the same as 1Q15. Engineering testing accounted for 4% of total testing net revenues, down by 1 percentage point from 1Q15.

EMS Operations

• Net revenues generated from EMS operations were NT$34.576 billion during the quarter, up by NT$14.067 billion, or by 69% year-over-year, and up by NT$6.232 billion, or by 22% sequentially.
• Communications products accounted for 44% of total net revenues from EMS operations for the quarter, down by 3 percentage points from 1Q15. Computing products accounted for 13% of total net revenues from EMS operations, down by 4 percentage points from 1Q15. Consumer products accounted for 28% of total net revenues from EMS operations, up by 10 percentage point from 1Q15. Industrial products accounted for 9% of total net revenues from EMS operations, down by 2 percentage points from 1Q15. Automotive products accounted for 5% of total net revenues from EMS operations, down by 1 percentage point from the previous quarter.
• In 2Q15, gross margin for our EMS operations was 6.4%, down by 3.6 percentage points year-over-year and down by 1.6 percentage points from the previous quarter.
• Capital expenditures for our EMS operations amounted to US$27 million during the quarter.

Substrate Operations

• PBGA substrate manufactured by ASE amounted to NT$2.23 billion during the quarter, down by NT$288 million, or by 11% year-over-year, and up by NT$58 million, or by 3% from 1Q15. Of the total output of NT$2.23 billion, NT$839 million was from sales to external customers.
• Gross margin for substrate operations was 16.2% during the quarter, down by 4.1 percentage points year-over-year and down by 0.9 percentage points from 1Q15.
• In 2Q15, internal substrate manufacturing operations supplied 33% (by value) of ASE's total substrate requirements.

About ASE

Advanced Semiconductor Engineering Inc. (ASE) is the world's largest independent provider of packaging services and testing services, including front-end engineering testing, wafer probing and final testing services, as well as electronic manufacturing services through Universal Scientific Industrial Co. Ltd. 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, visit the company's website.