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ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the First Quarter of 2020

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TAIPEI, Taiwan, R.O.C., April 29, 2020 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (IEX:3711, NYSE:ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor manufacturing services in assembly and test, today reported unaudited net revenues[1] of NT$97,357 million for 1Q20, up by 10% year-over-year and down by 16% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$3,899 million, up from a net income attributable to shareholders of the parent of NT$2,043 million in 1Q19 and down from a net income attributable to shareholders of the parent of NT$6,383 million in 4Q19. Basic earnings per share for the quarter were NT$0.92 (or US$0.061 per ADS), compared to basic earnings per share of NT$0.48 for 1Q19 and basic earnings per share of NT$1.50 for 4Q19. Diluted earnings per share for the quarter were NT$0.89 (or US$0.060 per ADS), compared to diluted earnings per share of NT$0.46 for 1Q19 and diluted earnings per share of NT$1.47 for 4Q19.

RESULTS OF OPERATIONS

1Q20 Results Highlights – Consolidated

  • Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 53%, 12%, 34% and 1%, respectively, of total net revenues for the quarter.
  • Cost of revenue was NT$81,201 million for the quarter, down from NT$96,174 million in 4Q19.
    • Raw material cost totaled NT$44,094 million for the quarter, representing 45% of total net revenues.
    • Labor cost totaled NT$13,438 million for the quarter, representing 14% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$11,666 million for the quarter.
  • Gross margin decreased 0.5 percentage points to 16.6% in 1Q20 from 17.1% in 4Q19.
  • Operating margin was 6.2% in 1Q20, compared to 7.5% in 4Q19.
  • In terms of non-operating items:
    • Net interest expense was NT$893 million.
    • Net foreign exchange loss of NT$324 million was primarily attributable to the appreciation of U.S. dollar against New Taiwan dollar.
    • Gain on valuation of financial assets and liabilities was NT$186 million.
    • Net loss on equity-method investments was NT$39 million.
    • Other net non-operating incomes of NT$244 million were primarily attributable to miscellaneous incomes. Total non-operating expenses for the quarter were NT$826 million.
  • Income before tax was NT$5,237 million for 1Q20, compared to NT$8,582 million in 4Q19.  We recorded income tax expenses of NT$1,175 million for the quarter, compared to NT$1,779 million in 4Q19.
  • In 1Q20, net income attributable to shareholders of the parent was NT$3,899 million, compared to net income attributable to shareholders of the parent of NT$2,043 million in 1Q19 and net income attributable to shareholders of the parent of NT$6,383 million in 4Q19.
  • Our total number of shares outstanding at the end of the quarter was 4,334,711,132, including treasury stock owned by our subsidiaries. Our 1Q20 basic earnings per share of NT$0.92 (or US$0.061 per ADS) were based on 4,260,272,327 weighted average numbers of shares outstanding in 1Q20. Our 1Q20 diluted earnings per share of NT$0.89 (or US$0.060 per ADS) were based on 4,280,990,255 weighted average number of shares outstanding in 1Q20.

1Q20 Results Highlights – ATM[2]

  • Cost of revenues was NT$52,875 million for the quarter, down by 1% sequentially.
    • Raw material cost totaled NT$18,391 million for the quarter, representing 28% of total net revenues.
    • Labor cost totaled NT$11,957 million for the quarter, representing 18% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$11,039 million for the quarter.
  • Gross margin decreased 2.6 percentage points to 20.1% in 1Q20 from 22.7% in 4Q19.
  • Operating margin was 8.4% in 1Q20, compared to 10.6% in 4Q19.

1Q20 Results Highlights – EMS

  • Cost of revenues for the quarter was NT$29,679 million, down by 33% sequentially.
    • Raw material cost totaled NT$ 25,600 million for the quarter, representing 78% of total net revenues.
    • Labor cost totaled NT$1,403 million for the quarter, representing 4% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$492 million for the quarter.
  • Gross margin increased 0.4 percentage points to 9.3% in 1Q20 from 8.9% in 4Q19.
  • Operating margin decreased to 2.4% in 1Q20 from 3.2% in 4Q19.

LIQUIdiTY AND CAPITAL RESOURCES

  • Capital expenditures in 1Q20 totaled US$410 million, of which US$237 million were used in packaging operations, US$156 million in testing operations, US$15 million in EMS operations and US$2 million in interconnect materials operations and others.
  • As of March 31, 2020, total unused credit lines amounted to NT$241,572 million.
  • Current ratio was 1.25 and net debt to equity ratio was 0.71 as of March 31, 2020.
  • Total number of employees was 96,296 as of March 31, 2020, compared to 96,528 as of December 31, 2019.

BUSINESS REVIEW

Customers

ATM CONSOLIDATED BASIS

  • Our five largest customers together accounted for approximately 49% of our total net revenues in 1Q20, compared to 47% in 4Q19. Two customers each accounted for more than 10% of our total net revenues in 1Q20 individually.
  • Our top 10 customers contributed 60% of our total net revenues in 1Q20, compared to 59% in 4Q19.
  • Our customers that are integrated device manufacturers or IDMs accounted for 29% of our total net revenues in 1Q20, compared to 30% in 4Q19.

EMS BASIS

  • Our five largest customers together accounted for approximately 76% of our total net revenues in 1Q20, compared to 80% in 4Q19. One customer accounted for more than 10% of our total net revenues in 1Q20.
  • Our top 10 customers contributed 88% of our total net revenues in 1Q20, compared to 90% in 4Q19.

[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.

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.

Investor Relations Contact:

ir@aseglobal.com
Tel: +886.2.6636.5678
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 2019 Annual Report on Form 20-F filed on March 31, 2020.

Supplemental Financial Information

Consolidated Operations


1Q/20

4Q/19

1Q/19

EBITDA (NT$ Millions)

19,061

22,543

16,523

ATM Consolidated Operations


1Q/20

4Q/19

1Q/19

Net Revenues (NT$ Millions)

66,209

69,287

54,371

Revenues by Application




Communication

54%

54%

53%

Computer

15%

16%

13%

Automotive, Consumer & Others

31%

30%

34%

Revenues by Type




Bumping, Flip Chip, WLP & SiP

38%

38%

34%

Wirebonding

36%

36%

40%

Discrete and Others

7%

7%

8%

Testing

17%

17%

16%

Material

2%

2%

2%

Capacity & EBITDA




CapEx (US$ Millions)*

394

439

231

EBITDA (NT$ Millions)

17,693

20,052

14,620

Number of Wirebonders

24,780

25,004

25,033

Number of Testers

5,554

5,402

4,857

EMS Operations


1Q/20

4Q/19

1Q/19

Net Revenues (NT$ Millions)

32,727

48,762

34,959

Revenues by End Application




Communication

36%

43%

29%

Computer & Storage

14%

11%

13%

Consumer

33%

32%

38%

Industrial

11%

10%

14%

Automotive

6%

4%

5%

Others

0%

0%

1%

Capacity 




CapEx (US$ Millions)*

15

18

8

* 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



Mar. 31

2020


Dec. 31

2019


Mar. 31

2019


Net revenues:







Packaging

51,613


53,653


43,857


Testing

11,563


11,930


8,951


EMS

32,721


48,734


34,947


Others

1,460


1,706


1,106


Total net revenues

97,357


116,023


88,861









Cost of revenues

(81,201)


(96,174)


(77,476)


Gross profit

16,156


19,849


11,385









Operating expenses:







Research and development

(4,609)


(5,020)


(3,955)


Selling, general and administrative

(5,484)


(6,124)


(5,137)


Total operating expenses

(10,093)


(11,144)


(9,092)


Operating income

6,063


8,705


2,293









Non-operating (expenses) income:







Interest expense, net

(893)


(895)


(966)


Foreign exchange gain (loss)

(324)


1,634


(180)


Gain (loss) on valuation of financial assets and liabilities

186


(693)


1,556


Gain (loss) on equity-method investments

(39)


156


(154)


Others

244


(325)


86


Total non-operating income (expenses)

(826)


(123)


342


Income before tax

5,237


8,582


2,635









Income tax expense

(1,175)


(1,779)


(405)


Income from continuing operations and
 
before non-controlling interest

4,062


6,803


2,230


Non-controlling interest

(163)


(420)


(187)









Net income attributable to
  shareholders of the parent

 

3,899


 

6,383


 

2,043









Per share data:







Earnings (losses) per share







– Basic

NT$0.92


NT$1.50


NT$0.48


– Diluted

NT$0.89


NT$1.47


NT$0.46









Earnings (losses) per equivalent ADS







– Basic

US$0.061


US$0.098


US$0.031


– Diluted

US$0.060


US$0.096


US$0.030









Number of weighted average shares used in
 
diluted EPS calculation (in thousands)

4,280,990


4,284,201


4,255,559









FX (NTD/USD)

30.00


30.54


30.77


ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Comprehensive Income Data – ATM
 (In NT$ millions, except per share data)
(Unaudited)


 

For the three months ended



Mar. 31

2020


Dec. 31

2019


Mar. 31

2019


Net revenues:







Packaging

53,600


56,093


44,488


Testing

11,566


11,932


8,951


Direct Material

1,014


1,228


900


Others

29


34


32


Total net revenues

66,209


69,287


54,371









Cost of revenues

(52,875)


(53,590)


(45,933)


Gross profit

13,334


15,697


8,438









Operating expenses:







Research and development

(3,648)


(4,001)


(3,043)


Selling, general and administrative

(4,114)


(4,330)


(3,841)


Total operating expenses

(7,762)


(8,331)


(6,884)


Operating income

5,572


7,366


1,554









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



Mar. 31

2020


Dec. 31

2019


Mar. 31

2019









Net revenues

32,727


48,762


34,959









Cost of revenues

(29,679)


(44,443)


(32,029)


Gross profit

3,048


4,319


2,930









Operating expenses:







Research and development

(983)


(1,063)


(940)


Selling, general and administrative

(1,294)


(1,703)


(1,252)


Total operating expenses

(2,277)


(2,766)


(2,192)


Operating income

771


1,553


738









ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)
(Unaudited)



As of Mar. 31, 2020


As of Dec. 31, 2019










Current assets:









Cash and cash equivalents




73,829




60,131

Financial assets – current




5,611




4,893

Notes and accounts receivable




73,573




78,948

Inventories




50,027




45,301

Others




13,575




12,728

Total current assets




216,615




202,001










Financial assets – non-current & Investments – equity

  method




 

14,750




 

15,663

Property plant and equipment




234,419




232,093

Right-of-use assets




9,578




9,792

Intangible assets




77,941




78,567

Others




18,365




18,538

Total assets




571,668




556,654










Current liabilities:









Short-term borrowings




51,620




37,339

Current portion of bonds payable and long-term borrowings




13,725




5,363

Notes and accounts payable




53,944




56,066

Others




53,719




53,497

Total current liabilities




173,008




152,265










Bonds payable




29,276




36,272

Long-term borrowings




134,363




135,966

Other liabilities




17,555




17,804

Total liabilities




354,202




342,307

Shareholders of the parent




203,624




200,969










Non-controlling interests




13,842




13,378

Total liabilities & shareholders' equity




571,668




556,654



















Current Ratio




1.25




1.33



















Net Debt to Equity




0.71




0.73

 

     ASE Technology Holding Co., Ltd.
Summary of Consolidated Cash Flow Statements
(In NT$ millions)
(Unaudited)



 

          For the three months ended





Mar. 31


Dec. 31


Mar. 31




2020

2019

2019

Cash Flows from Operating Activities:









Income before tax


5,237


8,582


2,635



Depreciation & amortization


12,687


12,645


12,575



Other operating activities items


(4,476)


10,356


808



Net cash generated from operating activities


13,448


31,583


16,018



Cash Flows from Investing Activities:









     Net payments for property, plant and equipment


(13,605)


(17,261)


(8,878)



Other investment activities items


(205)


(682)


2,750



Net cash used in investing activities


(13,810)


(17,943)


(6,128)



Cash Flows from Financing Activities:









Net proceeds from (repayment of) loans


13,890


(5,120)


(3,172)



Other financing activities items


194


(7,211)


(152)



Net cash generated from (used in) financing activities


14,084


(12,331)


(3,324)



Foreign currency exchange effect


(24)


(2,398)


1,233



Net increase (decrease) in cash and cash equivalents


13,698


(1,089)


7,799



Cash and cash equivalents at the beginning of period


60,131


61,220


51,518



Cash and cash equivalents at the end of period


73,829


60,131


59,317














 

Cision View original content:http://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-unaudited-consolidated-financial-results-for-the-first-quarter-of-2020-301049045.html

SOURCE ASE Technology Holding Co., Ltd.

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