TAIPEI, Taiwan, Oct. 30, 2009 (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$25,205 million for the third quarter of 2009 (3Q09), down 2% year-over-year and up 21% sequentially. Net income for the quarter totaled NT$3,187 million, up from NT$2,212 million in 3Q08 and up from NT$1,674 million in 2Q09. Diluted earnings per share for the quarter was NT$0.61 (or US$0.093 per ADS), compared to diluted earnings per share of NT$0.41 for 3Q08 and NT$0.32 for 2Q09. For the first three quarters of 2009, diluted earnings per share was NT$0.63 (or US$0.095 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

3Q09 Results Highlights
* Net revenue contribution from IC packaging operations (including module
assembly), testing operations, and substrates sold to third parties was
NT$20,005 million, NT$4,588 million and NT$612 million, respectively,
and each represented approximately 79%, 18% and 3%, respectively, of
total net revenues for the quarter.
* Cost of revenues was NT$18,848 million, down 3% year-over-year and up
15% sequentially.
- Raw material cost totaled NT$7,442 million during the quarter,
representing 30% of total net revenue, compared with NT$6,168 million
and 30% of net revenue in the previous quarter.
- Labor cost totaled NT$3,590 million during the quarter, representing
14% of total net revenue, compared with NT$3,028 million and 15% of
net revenue in the previous quarter.
- Depreciation, amortization and rental expenses totaled NT$4,108
million during the quarter, down 1% year-over-year and down 1%
sequentially.
* Total operating expenses during 3Q09 were NT$2,390 million, including
NT$956 million in R&D and NT$1,434 million in SG&A, compared with
operating expenses of NT$2,028 million in 2Q09.  Total operating
expenses as a percentage of net revenue for the current quarter were 9%,
down from 11% in 3Q08 and 10% in 2Q09.
* Operating income for the quarter totaled NT$3,967 million, up from
NT$2,496 million in the previous quarter.  Operating margin increased to
16% in 3Q09 from 12% in 2Q09.
* In terms of non-operating items:
- Net interest expense was NT$303 million, down from NT$340 million a
quarter ago primarily due to lower average interest rates during the
quarter.
- Net foreign exchange loss of NT$30 million was primarily attributable
to the depreciation of the U.S. dollar against the N.T. dollar.
- Gain on equity-method investments of NT$112 million was primarily
attributable to our investment in USI.
- Other non-operating income of NT$111 million was primarily related to
scrap sales and other miscellaneous gains.  Total non-operating
expenses for the quarter were NT$110 million, compared to
NT$561million for 3Q08 and NT$290 million for 2Q09.
* Income before tax was NT$3,857 million for 3Q09, compared to NT$2,206
million in the previous quarter.  We recorded income tax expense of
NT$558 million during the quarter, compared to NT$559 million in 2Q09.
* In 3Q09, net income was NT$3,187 million, compared to NT$2,212 million
for 3Q08 and NT$1,674 million for 2Q09.
* Our total number of shares outstanding at the end of the quarter was
5,480,262,954, including treasury stock owned by our subsidiaries.  Our
3Q09 diluted earnings per share of NT$0.61 (or US$0.093 per ADS) was
based on 5,186,949,206 weighted average number of shares outstanding in
3Q09.

LIQUIDITY AND CAPITAL RESOURCES
* As of Sep 30, 2009, our cash and other financial assets totaled
NT$32,520 million, compared to NT$28,676 million as of Jun 30, 2009.
* Capital expenditures in 3Q09 totaled US$109 million, of which US$91
million was used for IC packaging, US$17 million was used for testing
and US$1 million was used for interconnect materials.
* As of Sep 30, 2009, we had total bank debt of NT$66,381 million,
compared to NT$62,176 million as of June 30, 2009.  Total bank debt
consisted of NT$17,856 million of revolving working capital loans,
NT$3,972 million of the current portion of long-term debt, and NT$44,553
million of long-term debt.  Total unused credit lines amounted to
NT$52,404 million.
* Current ratio as of Sep 30, 2009 was 1.52, compared to 1.90 as of Jun 30,
2009.