ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the First Quarter of 2020
TAIPEI, Taiwan, R.O.C., April 29, 2020 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TAIEX: 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
Dec. 31
Mar. 31
2020 2019 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 4,062 6,803 2,230
before non-controlling
interest
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$0.030
Number of weighted
average shares used in 4,280,990 4,284,201 4,255,559
diluted EPS calculation
(in thousands)
FX (NTD/USD) 30.00 30.54 30.77
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Comprehensive Income Data - ATM
(In NT$ millions, except per share data)
(Unaudited)
For the three months ended
Mar. 31
Dec. 31
Mar. 31
2020 2019 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
Dec. 31
Mar. 31
2020 2019 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
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SOURCE ASE Technology Holding Co., Ltd.
