TAIPEI, Taiwan, April 29 /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 (1) of NT$13,397 million for the first quarter of 2009 (1Q09), down 46% year-over-year and down 27% sequentially. Net loss for the quarter totaled NT$1,567 million, down from net income of NT$2,337 million in 1Q08 and net loss of NT$800 million in 4Q08. Losses per share for the quarter was NT$0.30 (or US$0.045 per ADS), compared to diluted earnings per share of NT$0.41 for 1Q08 and losses per share of NT$0.15 for 4Q08.

    (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
    1Q09 Results Highlights
    -- Net revenue contribution from IC packaging operations (including
       module assembly), testing operations, and substrates sold to third
       parties was NT$10,208 million, NT$2,768 million and NT$421 million,
       respectively, and each represented approximately 76%, 21% and 3%,
       respectively, of total net revenues for the quarter.
    -- Cost of revenues was NT$12,739 million, down 31% year-over-year and
       down 16% sequentially.
       -- Raw material cost totaled NT$3,760 million during the quarter,
          representing 28% of total net revenues, compared with NT$4,910
          million and 27% of net revenues in the previous quarter.
       -- Labor cost totaled NT$2,524 million during the quarter, representing
          19% of total net revenues, compared with NT$2,863 million and 16% of
          net revenues in the previous quarter.
       -- Depreciation, amortization and rental expenses totaled NT$4,257
          million during the quarter, up 8% year-over-year and down 1%
          sequentially.
    -- Total operating expenses during 1Q09 were NT$2,069 million, including
       NT$750 million in R&D and NT$1,319 million in SG&A, compared with
       operating expenses of NT$2,233 million in 4Q08.  The sequential
       decrease was primarily attributable to continuing cost savings in 1Q09.
       Total operating expenses as a percentage of net revenues for the
       current quarter were 15%, up from 11% in 1Q08 and up from 12% in 4Q08.
    -- Operating loss for the quarter totaled NT$1,411 million, down from
       operating income of NT$967 million in the previous quarter.  Operating
       margin decreased to a negative 11% in 1Q09 from 5% in 4Q08.
    -- In terms of non-operating items:
       -- Net interest expense was NT$435 million, down from NT$522 million a
          quarter ago primarily due to lowered average bank loan balances and
          interest rates during the quarter.
       -- Net foreign exchange loss of NT$107 million was primarily
          attributable to the appreciation of the U.S. dollar against the N.T.
          dollar.
       -- Gain on equity-method investments of NT$24 million was primarily
          attributable to our investment in USI.
       -- Other non-operating income of NT$283 million were primarily related
          to the valuation adjustment of financial assets and other
          miscellaneous expenses.  Total non-operating expenses for the
          quarter were NT$235 million, compared to NT$69 million for 1Q08 and
          NT$1,490 million for 4Q08.
    -- Loss before tax was NT$1,646 million for 1Q09, compared with a loss of
       NT$523 million in the previous quarter.  We recorded income tax benefit
       of NT$50 million during the quarter, compared to income tax expense of
       NT$300 million in 4Q08.
    -- In 1Q09, net loss was NT$1,567 million, compared to net income of
       NT$2,337 million for 1Q08 and net loss of NT$800 million for 4Q08.
    -- Our total number of shares outstanding at the end of the quarter was
       5,547,110,234 shares, including treasury stock owned by our
       subsidiaries and shares bought back from the open market.  We had
       bought back treasury stock of 217,974,000 shares from the open market
       and had cancelled 144,037,000 shares as of March 31, 2009.  Our losses
       per share for 1Q09 was NT$0.30, or US$0.045 per ADS, based on
       5,183,404,095 weighted average number of shares outstanding in 1Q09.
    LIQUIDITY AND CAPITAL RESOURCES
    -- As of March 31, 2009, our cash and other financial assets totaled
       NT$27,750 million, compared to NT$27,406 million as of December 31,
       2008.
    -- Capital expenditures in 1Q09 totaled US$24 million, of which US$14
       million was used for IC packaging and US$10 million was used for
       testing.
    -- As of March 31, 2009, we had total bank debt of NT$63,675 million,
       compared to NT$62,703 million as of December 31, 2008.  Total bank debt
       consisted of NT$7,488 million of revolving working capital loans,
       NT$2,405 million of the current portion of long-term debt, and
       NT$53,782 million of long-term debt.  Total unused credit lines were
       NT$53,203 million.
    -- Current ratio as of March 31, 2009 was 2.10, compared to 1.83 as of
       December 31, 2008.