TAIPEI, Taiwan, Feb. 12 /PRNewswire-Asia-FirstCall/ -- Advanced Semiconductor Engineering, Inc. (TAIEX: 2311; NYSE: ASX) ('We', 'ASE', or the 'Company'), the world's largest independent provider of IC packaging and testing services, today reported unaudited net revenues (Note 1) of NT$18,311 million for the fourth quarter of 2008 (4Q08), down 37% year-over-year and down 29% sequentially. Net loss for the quarter totaled NT$800 million, down from net income of NT$3,704 million in 4Q07 and net income of NT$2,212 million in 3Q08. Loss per share for the quarter was NT$0.15 (or US$0.023 per ADS), compared to diluted earnings per share of NT$0.64 for 4Q07 and NT$0.41 for 3Q08.

For the full year of 2008, the Company reported net revenues of NT$94,431 million and net income of NT$6,160 million. Diluted earnings per share for the full year of 2008 was NT$1.12, or US$0.178 per ADS.

    Note 1: All financial information presented in this press release is
    unaudited, consolidated and prepared in accordance with accounting
    principles generally accepted in the Republic of China, or ROC GAAP.  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 for any
    future period.

    RESULTS OF OPERATIONS
    4Q08 Results Highlights
    -- Net revenue contribution from IC packaging operations (including module
       assembly), testing operations, and substrates sold to third parties was
       NT$14,005 million, NT$3,830 million and NT$476 million, respectively,
       and each represented approximately 76%, 21% and 3%, respectively, of
       total net revenues for the quarter.
    -- Cost of revenues was NT$15,096 million, down 23% year-over-year and
       down 21% sequentially.
       -- Raw material cost totaled NT$4,910 million during the quarter,
          representing 27% of total net revenues, compared with NT$7,370
          million and 29% of net revenues in the previous quarter.
       -- Labor cost totaled NT$2,863 million during the quarter, representing
          16% of total net revenues, compared with NT$3,885 million and 15% of
          net revenues in the previous quarter.
       -- Depreciation, amortization and rental expenses totaled NT$4,290
          million during the quarter, up 4% year-over-year and up 3%
          sequentially.
    -- Total operating expenses during 4Q08 were NT$2,232 million, including
       NT$811 million in R&D and NT$1,421 million in SG&A, compared with
       operating expenses of NT$2,733 million in 3Q08.  The sequential
       decrease was primarily attributable to a decrease in salary and
       employee bonus adjustment in 4Q08.  Total operating expenses as a
       percentage of net revenues for the current quarter were 12%, up from 9%
       in 4Q07 and up from 11% in 3Q08.
    -- Operating profit for the quarter totaled NT$983 million, down from
       NT$3,896 million in the previous quarter.  Operating margin decreased
       to 5% in 4Q08 from 15% in 3Q8.
    -- In terms of non-operating items:
       -- Net interest expense was NT$522 million, up from NT$421 million a
          quarter ago primarily due to a higher bank loan balances during the
          quarter.
       -- Net foreign exchange loss of NT$166 million was primarily
          attributable to the appreciation of the U.S. dollar against the N.T.
          dollar.
       -- Loss on equity-method investment of NT$125 million was primarily
          attributable to our investment in USI.
       -- Other non-operating expenses of NT$693 million were primarily
          related to the severance pay of NT$270 million and loss from
          inventory valuation adjustment of NT$215 million.  Total non-
          operating expenses for the quarter were NT$1,506 million, compared
          to NT$873 million for 4Q07 and NT$742 million for 3Q08.
    -- Loss before tax was NT$523 million for 4Q08, compared with income
       before tax of NT$3,154 million in the previous quarter.  We recorded
       income tax expense of NT$300 million during the quarter, compared to
       income tax expense of NT$777 million in 3Q08.  Income tax expense of
       NT$300 million in 4Q08 was primarily related to the valuation allowance
       adjustment of deferred income tax assets.
    -- In 4Q08, net loss was NT$800 million, compared to net income of
       NT$3,704 million for 4Q07 and NT$2,212 million for 3Q08.
    -- Our total number of shares outstanding at the end of the quarter was
       5,690,427,734 shares, including treasury stock owned by our
       subsidiaries and shares bought back from the open market.  We had
       bought back treasury stock of 108,700,000 shares from the open market
       but had not yet cancelled as of December 31, 2008.  Our losses per
       share for 4Q08 was NT$0.15, or US$0.023 per ADS, based on 5,324,543,204
       weighted average number of shares outstanding in 4Q08.
    2008 Full-year Results
    -- Net revenues for the full year of 2008 amounted to NT$94,431 million,
       down 7% from 2007.  The revenue contribution from IC packaging
       operations (including module assembly), testing operations, and others
       were NT$73,392 million, NT$19,021 million, and NT$2,018 million,
       respectively, and each represented approximately 78%, 20% and 2%
       respectively, of total net revenues for the year.
    -- Cost of revenues for the full year of 2008 were NT$71,886 million, a
       slight decrease compared to 2007.
       -- Raw material cost totaled NT$27,276 million during the year,
          representing 29% of total net revenues, compared with NT$27,913
          million and 28% of net revenues in 2007.
       -- Labor cost totaled NT$14,550 million during the year, representing
          15% of total net revenues, compared with NT$14,684 million and 15%
          of net revenues in 2007.
       -- Depreciation, amortization and rental expenses totaled NT$16,361
          million during the year, relatively unchanged compared to 2007.  As
          a percentage of net revenues, depreciation, amortization and rental
          expenses were 17% during the year, up from 16% in 2007.
    -- Gross profit for the year was NT$22,545 million, down 23% compared
       to NT$29,088 million in 2007.  Gross margin was 24% for the year,
       down from 29% in 2007.
    -- Total operating expenses during 2008 were NT$10,730 million,
       including NT$3,812 million in R&D and NT$6,918 million in SG&A.
       Total operating expenses as a percentage of net revenues was 11% in
       2008, up from 10% in 2007.
    -- Operating income for the year was NT$11,815 million, compared to
       operating income of NT$19,297 for the previous year.  Operating margin
       was 13% in 2008, which decreased from 19% in 2007.
    -- Total non-operating expenses for the year was NT$2,339 million,
       compared to NT$1,945 million for 2007.  The increase was primarily due
       to the valuation loss from financial assets, and the severance pay
       recorded in 2008.
    -- Income before tax was NT$9,476 million for 2008.