(Source: PRNewswire)TAIPEI, Taiwan, July 31 /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$20,881 million for the second quarter of 2009 (2Q09), down 18% year-over-year and up 56% sequentially. Net income for the quarter totaled NT$1,674 million, down from net income of NT$2,412 million in 2Q08 and up from net loss of NT$1,567 million in 1Q09. Diluted earnings per share for the quarter was NT$0.32 (or US$0.049 per ADS), compared to diluted earnings per share of NT$0.42 for 2Q08 and losses per share of NT$0.30 for 1Q09. For the first half of 2009, diluted earnings per share was NT$0.02 (or US$0.003 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    2Q09 Results Highlights   -- Net revenue contribution from IC packaging operations (including module      assembly), testing operations, and substrates sold to third parties was      NT$16,591 million, NT$3,877 million and NT$413 million, respectively,      and each represented approximately 79%, 19% and 2%, respectively, of      total net revenues for the quarter.   -- Cost of revenues was NT$16,357 million, down 14% year-over-year and up      28% sequentially.      -- Raw material cost totaled NT$6,168 million during the quarter,         representing 30% of total net revenue, compared with NT$3,760         million and 28% of net revenue in the previous quarter.      -- Labor cost totaled NT$3,028 million during the quarter, representing         15% of total net revenue, compared with NT$2,524 million and 19% of         net revenue in the previous quarter.      -- Depreciation, amortization and rental expenses totaled NT$4,170         million during the quarter, up 5% year-over-year and down 2%         sequentially.   -- Total operating expenses during 2Q09 were NT$2,028 million, including      NT$825 million in R&D and NT$1,203 million in SG&A, compared with      operating expenses of NT$2,069 million in 1Q09.  Total operating      expenses as a percentage of net revenue for the current quarter were      10%, down from 11% in 2Q08 and 15% in 1Q09.   -- Operating income for the quarter totaled NT$2,496 million, up from      operating loss of NT$1,411 million in the previous quarter.  Operating      margin increased to 12% in 2Q09 from negative 11% in 1Q09.   -- In terms of non-operating items:      -- Net interest expense was NT$340 million, down from NT$435 million a         quarter ago primarily due to lower average interest rates and bank         loan balances during the quarter.      -- Net foreign exchange gain of NT$106 million was primarily         attributable to the depreciation of the U.S. dollar against the N.T.         dollar.      -- Gain on equity-method investments of NT$58 million was primarily         attributable to our investment in USI.      -- Other non-operating loss of NT$114 million was primarily related to         the valuation adjustment of financial assets and other miscellaneous         expenses.  Total non-operating expenses for the quarter were NT$290         million, compared to NT$22 million for 2Q08 and NT$235 million for         1Q09.   -- Income before tax was NT$2,206 million for 2Q09, compared to a loss of      NT$1,646 million in the previous quarter.  We recorded income tax      expense of NT$559 million during the quarter, compared to income tax      benefit of NT$50 million in 1Q09.  The sequential increase of the      income tax expense was primarily due to the recognition of      undistributed earnings tax and the adjustment of deferred tax asset.   -- In 2Q09, net income was NT$1,674 million, compared to net income of      NT$2,412 million for 2Q08 and net loss of NT$1,567 million for 1Q09.   -- After cancelling 217,974,000 shares in treasury stock that we bought      back from the open market, our total number of shares outstanding at      the end of the quarter was 5,473,701,414 shares (this still includes      treasury stock owned by our subsidiaries).  Our 2Q09 diluted earnings      per share of NT$0.32 (or US$0.049 per ADS) was based on 5,164,077,671      weighted average number of shares outstanding in 2Q09.    LIQUIDITY AND CAPITAL RESOURCES   -- As of June 30, 2009, our cash and other financial assets totaled      NT$28,676 million, compared to NT$27,750 million as of March 31, 2009.   -- Capital expenditures in 2Q09 totaled US$45 million, of which US$31      million was used for IC packaging, US$13 million was used for testing      and US$1 million was used for interconnect materials.   -- As of June 30, 2009, we had total bank debt of NT$62,176 million,      compared to NT$63,675 million as of March 31, 2009.  Total bank debt      consisted of NT$7,888 million of revolving working capital loans,      NT$1,932 million of the current portion of long-term debt, and      NT$52,356 million of long-term debt.  Total unused credit lines      amounted to NT$46,106 million.  We have secured a NT$12 billion 5-year      term loan facility with syndication banks. This facility will be      primarily used for refinancing of our existing bank debt.   -- Current ratio as of June 30, 2009 was 1.90, compared to 2.10 as of      March 31, 2009.  Net debt to equity ratio was 0.49 as of June 30, 2009.   -- Total number of employees was 26,406 as of June 30, 2009, compared to      30,363 as of June 30, 2008 and 25,032 as of March 31, 2009.    Business Review    IC Packaging Services (Note 2)   -- Net revenues generated from our IC packaging operations were NT$16,591      million during the quarter, down NT$3,442 million, or 17% year-over-      year, and up NT$6,383 million, or 63% sequentially.   -- Net revenues from advanced substrate and leadframe-based packaging      accounted for 91% of total IC packaging net revenues during the quarter,      up by 3 percentage points from the previous quarter.