TAIPEI, Taiwan, R.O.C., Oct. 30, 2019 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (3711ASX ("We", "ASEH", or the "Company"), the leading provider of semiconductor manufacturing services in assembly and test, today reported unaudited net revenues(1) of NT$117,557 million for 3Q19, up by 9% year-over-year and up by 30% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$5,734 million, down from a net income attributable to shareholders of the parent of NT$6,257 million in 3Q18 and up from a net income attributable to shareholders of the parent of NT$2,690 million in 2Q19. Basic earnings per share for the quarter were NT$1.35 (or US$0.087 per ADS), compared to basic earnings per share of NT$1.47 for 3Q18 and NT$0.63 for 2Q19. Diluted earnings per share for the quarter were NT$1.33 (or US$0.085 per ADS), compared to diluted earnings per share of NT$1.43 for 3Q18 and NT$0.62 for 2Q19.
RESULTS OF OPERATIONS
3Q19 Results Highlights – Consolidated
- Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 46%, 10%, 43% and 1%, respectively, of total net revenues for the quarter.
- Cost of revenue was NT$98,449 million for the quarter, up from NT$76,772 million in 2Q19.
- Raw material cost totaled NT$60,159 million for the quarter, representing 51% of total net revenues.
- Labor cost totaled NT$13,308 million for the quarter, representing 11% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$11,480 million for the quarter.
- Gross margin increased 0.9 percentage points to 16.3% in 3Q19 from 15.4% in 2Q19.
- Operating margin was 7.1% in 3Q19 compared to 4.6% in 2Q19.
- In terms of non-operating items:
- Net interest expense was NT$866 million.
- Net foreign exchange gain of NT$12 million was primarily attributable to the depreciation of U.S. dollar against New Taiwan dollar.
- Loss on valuation of financial assets and liabilities was NT$19 million.
- Net gain on equity-method investments was NT$148 million.
- Other net non-operating income of NT$61 million was primarily attributable to miscellaneous incomes. Total non-operating expense for the quarter was NT$664 million.
- Income before tax was NT$7,721 million for 3Q19, compared to NT$4,424 million in 2Q19. We recorded income tax expenses of NT$1,501 million for the quarter, compared to NT$1,624 million in 2Q19.
- In 3Q19, net income attributable to shareholders of the parent was NT$5,734 million, compared to net income attributable to shareholders of the parent of NT$6,257 million in 3Q18 and net income attributable to shareholders of the parent of NT$2,690 million in 2Q19.
- Our total number of shares outstanding at the end of the quarter was 4,325,402,582, including treasury stock owned by our subsidiaries. Our 3Q19 basic earnings per share of NT$1.35 (or US$0.087 per ADS) were based on 4,252,217,297 weighted average numbers of shares outstanding in 3Q19. Our 3Q19 diluted earnings per share of NT$1.33 (or US$0.085 per ADS) were based on 4,261,515,344 weighted average numbers of shares outstanding in 3Q19.
3Q19 Results Highlights – ATM(2)(3)
- Cost of revenues was NT$53,193 million for the quarter, up by 10% sequentially.
- Raw material cost totaled NT$18,466 million for the quarter, representing 27% of total net revenues.
- Labor cost totaled NT$11,762 million for the quarter, representing 17% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$10,844 million for the quarter.
- Gross margin increased 3.1 percentage points to 21.7% in 3Q19 from 18.6% in 2Q19.
- Operating margin was 9.4% in 3Q19 compared to 6.2% in 2Q19.
3Q19 Results Highlights – EMS
- Cost of revenues for the quarter was NT$46,105 million, up by 61% sequentially.
- Raw material cost totaled NT$41,613 million for the quarter, representing 82% of total net revenues.
- Labor cost totaled NT$1,472 million for the quarter, representing 3% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$483 million for the quarter.
- Gross margin decreased to 8.9% in 3Q19 from 9.1% in 2Q19.
- Operating margin increased to 4.1% in 3Q19 from 1.6% in 2Q19.
LIQUIDITY AND CAPITAL RESOURCES
- Capital expenditures in 3Q19 totaled US$436 million, of which US$181 million were used in packaging operations, US$229 million in testing operations, US$23 million in EMS operations and US$3 million in interconnect materials operations and others.
- As of September 30, 2019, total unused credit lines amounted to NT$196,993 million.
- Current ratio was 1.14 and net debt to equity ratio was 0.73 as of September 30, 2019.
- Total number of employees was 94,675 as of September 30, 2019, compared to 91,641 as of June 30, 2019.
BUSINESS REVIEW
Customers
ATM CONSOLIDATED BASIS (3)
- Our five largest customers together accounted for approximately 46% of our total net revenues in 3Q19, compared to 48% in 2Q19. One customer accounted for more than 10% of our total net revenues in 3Q19.
- Our top 10 customers contributed 58% of our total net revenues for the quarter, compared to 60% in 2Q19.
- Our customers that are integrated device manufacturers or IDMs accounted for 33% of our total net revenues both in 3Q19 and 2Q19.
EMS BASIS
- Our five largest customers together accounted for approximately 82% of our total net revenues in 3Q19, compared to 73% in 2Q19. One customer accounted for more than 10% of our total net revenues in 3Q19.
- Our top 10 customers contributed 90% of our total net revenues during the quarter in 3Q19, compared to 85% in 2Q19.
About ASE Technology Holding Co., Ltd.
ASEH is the leading provider of semiconductor manufacturing services in assembly and test. The Company develops and offers complete turnkey solutions covering front-end engineering test, wafer probing and final test, as well as IC packaging, materials and electronic manufacturing services through USI with superior technologies, breakthrough innovations, and advanced development programs. With advanced technological capabilities and a global presence spanning Taiwan, China, South Korea, Japan, Singapore, Malaysia and Mexico as well as the United States and Europe, ASEH 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. 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. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, 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 shift in United States trade policies; 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 the 2018 Annual Report on Form 20-F filed on April 26, 2019.
([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 the 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. |
([2]) ATM stands for Semiconductor Assembly, Testing and Material. |
([3]) The ATM results presented have been retrospectively adjusted to exclude a portion of the results related to manufacturing integrated circuits from an acquired subsidiary consolidated since May 2019. |
Investor Relations Contact:
ir@aseglobal.com
Tel: +886.2.6636.5678
http://www.aseglobal.com
Supplemental Financial Information
Consolidated Operations
3Q/19 | 2Q/19 | 3Q/18 | |
EBITDA (NT$ Millions) | 21,214 | 18,072 | 21,579 |
ATM Consolidated Operations (3)
3Q/19 | 2Q/19 | 3Q/18 | |
Net Revenues (NT$ Millions) | 67,901 | 59,594 | 66,324 |
Revenues by Application | |||
Communication | 53% | 51% | 51% |
Computer | 14% | 14% | 14% |
Automotive, Consumer & Others | 33% | 35% | 35% |
Revenues by Type | |||
Bumping, Flip Chip, WLP & SiP | 35% | 34% | 31% |
Wirebonding | 37% | 39% | 43% |
Discrete and Others | 9% | 8% | 8% |
Testing | 17% | 17% | 16% |
Material | 2% | 2% | 2% |
Capacity & EBITDA | |||
CapEx (US$ Millions)* | 413 | 423 | 269 |
EBITDA (NT$ Millions) | 18,312 | 16,512 | 19,092 |
Number of Wirebonders | 25,008 | 25,059 | 25,219 |
Number of Testers | 5,254 | 5,003 | 4,802 |
(3) The ATM results presented have been retrospectively adjusted to exclude a portion of the results related to manufacturing integrated circuits | |||
EMS Operations
3Q/19 | 2Q/19 | 3Q/18 | |
Net Revenues (NT$ Millions) | 50,599 | 31,533 | 42,009 |
Revenues by End Application | |||
Communication | 36% | 40% | 34% |
Computer & Storage | 9% | 14% | 14% |
Consumer | 41% | 24% | 36% |
Industrial | 9% | 15% | 10% |
Automotive | 4% | 6% | 5% |
Others | 1% | 1% | 1% |
Capacity | |||
CapEx (US$ Millions)* | 23 | 21 | 21 |
* Capital expenditure excludes building construction costs. | |||
ASE Technology Holding Co., Ltd. | |||||||||
Summary of Consolidated Statement of Comprehensive Income Data | |||||||||
(In NT$ millions, except per share data) | |||||||||
(Unaudited) | |||||||||
For the three months ended | For the nine months ended | ||||||||
Sep. 30 2019 | Jun. 30 2019 | Sep. 30 2018 | Sep. 30 2019 | Sep. 30 2018 | |||||
Net revenues: | |||||||||
Packaging | 53,804 | 47,602 | 53,473 | 145,263 | 127,159 | ||||
Testing | 11,493 | 10,285 | 10,838 | 30,729 | 24,984 | ||||
EMS | 50,584 | 31,524 | 41,996 | 117,055 | 101,154 | ||||
Others | 1,676 | 1,330 | 1,290 | 4,112 | 3,767 | ||||
Total net revenues | 117,557 | 90,741 | 107,597 | 297,159 | 257,064 | ||||
Cost of revenues | (98,449) | (76,772) | (89,216) | (252,697) | (214,585) | ||||
Gross profit | 19,108 | 13,969 | 18,381 | 44,462 | 42,479 | ||||
Operating expenses: | |||||||||
Research and development | (4,906) | (4,515) | (4,274) | (13,376) | (10,670) | ||||
Selling, general and administrative | (5,817) | (5,311) | (5,735) | (16,265) | (13,734) | ||||
Total operating expenses | (10,723) | (9,826) | (10,009) | (29,641) | (24,404) | ||||
Operating income | 8,385 | 4,143 | 8,372 | 14,821 | 18,075 | ||||
Net non-operating income (expenses): | |||||||||
Interest expense - net | (866) | (909) | (971) | (2,741) | (2,147) | ||||
Foreign exchange gain (loss) | 12 | (340) | 262 | (508) | (705) | ||||
Gain (loss) on valuation of financial assets |
(19) |
802 |
(112) |
2,339 |
1,850 | ||||
Gain (loss) on equity-method investments | 148 | 114 | 118 | 108 | (527) | ||||
Others | 61 | 614 | 448 | 761 | 8,267 | ||||
Total non-operating income (expenses) | (664) | 281 | (255) | (41) | 6,738 | ||||
Income before tax | 7,721 | 4,424 | 8,117 | 14,780 | 24,813 | ||||
Income tax expense | (1,501) | (1,624) | (1,554) | (3,530) | (4,242) | ||||
Income from continuing operations and | 6,220 | 2,800 | 6,563 | 11,250 | 20,571 | ||||
Noncontrolling interest | (486) | (110) | (306) | (783) | (755) | ||||
Net income attributable to |
5,734 |
2,690 |
6,257 |
10,467 |
19,816 | ||||
Per share data: | |||||||||
Earnings (losses) per share | |||||||||
– Basic | NT$1.35 | NT$0.63 | NT$1.47 | NT$2.46 | NT$4.67 | ||||
– Diluted | NT$1.33 | NT$0.62 | NT$1.43 | NT$2.40 | NT$4.60 | ||||
Earnings (losses) per equivalent ADS | |||||||||
– Basic | US$0.087 | US$0.041 | US$0.096 | US$0.159 | US$0.313 | ||||
– Diluted | US$0.085 | US$0.040 | US$0.094 | US$0.155 | US$0.308 | ||||
Number of weighted average shares used in | 4,261,515 | 4,256,799 | 4,255,741 | 4,256,985 | 4,249,525 | ||||
FX (NTD/USD) | 31.17 | 31.04 | 30.61 | 30.99 | 29.83 | ||||
ASE Technology Holding Co., Ltd. | |||||||||
Summary of Consolidated Statement of Comprehensive Income Data – ATM(3) | |||||||||
(In NT$ millions, except per share data) | |||||||||
(Unaudited) | |||||||||
For the three months ended | For the nine months ended | ||||||||
Sep. 30 2019 | Jun. 30 2019 | Sep. 30 2018 | Sep. 30 2019 | Sep. 30 2018 | |||||
Net revenues: | |||||||||
Packaging | 55,163 | 48,329 | 54,321 | 147,980 | 129,607 | ||||
Testing | 11,495 | 10,286 | 10,839 | 30,732 | 24,985 | ||||
Direct Material | 1,211 | 944 | 1,134 | 3,055 | 3,243 | ||||
Others | 32 | 35 | 30 | 100 | 95 | ||||
Total net revenues | 67,901 | 59,594 | 66,324 | 181,867 | 157,930 | ||||
Cost of revenues | (53,193) | (48,494) | (52,056) | (147,620) | (125,116) | ||||
Gross profit | 14,708 | 11,100 | 14,268 | 34,247 | 32,814 | ||||
Operating expenses: | |||||||||
Research and development | (3,894) | (3,414) | (3,257) | (10,351) | (7,792) | ||||
Selling, general and administrative | (4,401) | (4,020) | (4,298) | (12,262) | (10,293) | ||||
Total operating expenses | (8,295) | (7,434) | (7,555) | (22,613) | (18,085) | ||||
Operating income | 6,413 | 3,666 | 6,713 | 11,634 | 14,729 | ||||
(3) The ATM results presented have been retrospectively adjusted to exclude a portion of the results related to manufacturing integrated circuits | |||||||||
ASE Technology Holding 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 nine months ended | ||||||||
Sep. 30 2019 | Jun. 30 2019 | Sep. 30 2018 | Sep. 30 2019 | Sep. 30 2018 | |||||
Net revenues: | |||||||||
Total net revenues | 50,599 | 31,533 | 42,009 | 117,091 | 101,176 | ||||
Cost of revenues | (46,105) | (28,657) | (37,846) | (106,791) | (91,445) | ||||
Gross profit | 4,494 | 2,876 | 4,163 | 10,300 | 9,731 | ||||
Operating expenses: | |||||||||
Research and development | (1,042) | (1,125) | (1,041) | (3,107) | (2,936) | ||||
Selling, general and administrative | (1,353) | (1,248) | (1,388) | (3,853) | (3,308) | ||||
Total operating expenses | (2,395) | (2,373) | (2,429) | (6,960) | (6,244) | ||||
Operating income | 2,099 | 503 | 1,734 | 3,340 | 3,487 | ||||
ASE Technology Holding Co., Ltd. | |||||||
Summary of Consolidated Balance Sheet Data | |||||||
(In NT$ millions) | |||||||
(Unaudited) | |||||||
As of Sep. 30 , 2019 | As of Jun. 30 , 2019 | ||||||
Current assets: | |||||||
Cash and cash equivalents | 61,220 | 55,090 | |||||
Financial assets – current | 6,583 | 11,190 | |||||
Notes and accounts receivable | 83,743 | 67,242 | |||||
Inventories | 48,427 | 46,997 | |||||
Others | 12,472 | 11,144 | |||||
Total current assets | 212,445 | 191,663 | |||||
Financial assets – non current & Investments – equity method |
15,076 |
13,160 | |||||
Property plant and equipment | 226,302 | 219,388 | |||||
Right-of-use assets | 9,961 | 10,424 | |||||
Intangible assets | 79,278 | 80,186 | |||||
Others | 19,916 | 20,017 | |||||
Total assets | 562,978 | 534,838 | |||||
Current liabilities: | |||||||
Short-term borrowings | 70,896 | 49,582 | |||||
Current portion of long-term borrowings | 10,017 | 6,291 | |||||
Notes and accounts payable | 56,385 | 45,295 | |||||
Others | 49,129 | 59,325 | |||||
Total current liabilities | 186,427 | 160,493 | |||||
Bonds payable | 27,223 | 27,219 | |||||
Long-term borrowings | 113,775 | 112,355 | |||||
Other liabilities | 17,138 | 17,266 | |||||
Total liabilities | 344,563 | 317,333 | |||||
Shareholders of the parent | 201,510 | 199,302 | |||||
Noncontrolling interest | 16,905 | 18,203 | |||||
Total liabilities & shareholders' equity | 562,978 | 534,838 | |||||
Current Ratio | 1.14 | 1.19 | |||||
Net Debt to Equity | 0.73 | 0.62 | |||||
ASE Technology Holding Co., Ltd. | |||||||||||
Summary of Consolidated Cash Flow Statements | |||||||||||
(In NT$ millions) | |||||||||||
(Unaudited) | |||||||||||
For the three months ended | For the nine months ended | ||||||||||
Sep. 30 | Jun. 30 | Sep. 30 | Sep. 30 | Sep. 30 | |||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||
Cash Flows from Operating Activities: | |||||||||||
Profit before income tax | 7,721 | 4,424 | 8,117 | 14,780 | 24,813 | ||||||
Depreciation & amortization | 12,610 | 12,637 | 12,469 | 37,822 | 30,469 | ||||||
Other operating activities items | (7,250) | (5,438) | (3,312) | (11,880) | (23,057) | ||||||
Net cash generated from operating | 13,081 | 11,623 | 17,274 | 40,722 | 32,225 | ||||||
Cash Flows from Investing Activities: | |||||||||||
Net payments for property, plant | (18,771) | (11,451) | (13,078) | (39,100) | (30,266) | ||||||
Other investment activities items | 488 | (774) | 7,622 | 2,464 | (83,053) | ||||||
Net cash used in investing activities | (18,283) | (12,225) | (5,456) | (36,636) | (113,319) | ||||||
Cash Flows from Financing Activities: | |||||||||||
Total net proceeds from | 26,553 | (2,521) | (8,177) | 20,860 | 112,176 | ||||||
Dividends paid | (10,623) | - | (10,614) | (10,623) | (10,614) | ||||||
Other financing activities items | (3,509) | (896) | (4,115) | (4,557) | (11,183) | ||||||
Net cash generated from (used in) | 12,421 | (3,417) | (22,906) | 5,680 | 90,379 | ||||||
Foreign currency exchange effect | (1,089) | (208) | (1,605) | (64) | (28) | ||||||
Net increase (decrease) in cash and | 6,130 | (4,227) | (12,693) | 9,702 | 9,257 | ||||||
Cash and cash equivalents at the | 55,090 | 59,317 | 68,028 | 51,518 | 46,078 | ||||||
Cash and cash equivalents at the end | 61,220 | 55,090 | 55,335 | 61,220 | 55,335 | ||||||
SOURCE ASE Technology Holding Co., Ltd.
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