-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NRDMva0gMUhb5d9qJn/7KHxCcahiKQVkLHsNdmVddoAKQl5xY8of/4kio+a4sK99 JmzRVII3Eg9i1Bt9Pwoq0g== 0000950144-01-001684.txt : 20010205 0000950144-01-001684.hdr.sgml : 20010205 ACCESSION NUMBER: 0000950144-01-001684 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ST ASSEMBLY TEST SERVICES LTD CENTRAL INDEX KEY: 0001101873 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 333-93661 FILM NUMBER: 1519714 BUSINESS ADDRESS: STREET 1: 5 YISHUN ST 23 CITY: SINGAPORE STATE: U0 ZIP: 768442 BUSINESS PHONE: 657555885 MAIL ADDRESS: STREET 1: 5 YISHUN ST 23 CITY: SINGAPORE STATE: U0 ZIP: 768442 6-K 1 u91689e6-k.txt ST ASSEMBLY TEST SERVICES LTD 1 ================================================================================ United States Securities and Exchange Commission Washington, D.C. 20549 Form 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of December, 2000 Commission File Number 0-29103 ST ASSEMBLY TEST SERVICES LTD (Exact name of registrant as specified in its charter) Not Applicable (Translation of registrant's name into English) Republic of Singapore (Jurisdiction of incorporation or organization) 5 Yishun Street 23 Singapore 768442 (65) 755-5885 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F --- --- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X --- --- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). Not applicable. ================================================================================ 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ST ASSEMBLY TEST SERVICES LTD By: /s/ TAN BOCK SENG ------------------------------- Name : Tan Bock Seng Title : Chairman and Chief Executive Officer Date : January 31, 2001 EX-99.1 2 u91689ex99-1.txt EARNINGS RELEASE 1 FOR IMMEDIATE RELEASE EARNINGS RELEASE - ---------------- STATS REPORTS RECORD ANNUAL REVENUE AND EARNINGS AND FOURTH QUARTER RESULTS Q4 2000 - - NET REVENUES OF $92.8 MILLION, UP 42.5% FROM Q4 1999 - - EARNINGS PER ADS OF $0.08, UP $0.13 FROM Q4 1999 YEAR 2000 - - NET REVENUES OF $331.3 MILLION, UP 64.7% FROM YEAR 1999 - - EARNINGS PER ADS OF $0.56, UP $0.50 FROM YEAR 1999 SINGAPORE -- JANUARY 31, 2001 -- ST Assembly Test Services Ltd (Nasdaq: STTS and SGX: ST Assembly) today reported financial results for the quarter and year ended December 31, 2000. "Year 2000 was a remarkable year for STATS. During the year we successfully completed our initial public offering, grew our business significantly, expanded and diversified our customer base, and built a substantial infrastructure to support future business. Despite the demand weakness in the fourth quarter, we continue to believe that the longer-term opportunities for semiconductor test and assembly services are excellent, and STATS is very well positioned to capture these opportunities," said Tan Bock Seng, Chairman and Chief Executive Officer. HIGHLIGHTS OF 4TH-QUARTER AND FISCAL 2000 PERFORMANCE Fourth quarter net revenues were $92.8 million, an increase of 42.5% over the corresponding period last year, and 2.5% sequentially over third quarter 2000. The sequential increase in net revenues was due principally to the increase in unit shipments of array packages. Net income for the quarter was $8.0 million compared to a loss of $3.6 million for the corresponding period a year ago. Diluted earnings per ADS and diluted earnings per ordinary share for the fourth quarter were $0.08 and $0.008 respectively compared to a loss of $0.05 and $0.005 in the corresponding period in 1999. For the full year 2000, net revenues were a record $331.3 million, an increase of 64.7% over the net revenues of $201.1 million for full year 1999. Net income for the full year was also a record $54.4 million, an increase of 1019.7% over the net income of $4.9 million for full year 1999. Diluted earnings per ADS and diluted earnings per ordinary share for the full year 2000 were $0.56 and $0.056 respectively compared to $0.06 and $0.006 respectively for full year 1999. 2 For the fourth quarter, net revenues from assembly services were $51.2 million or 55.2% of revenues, and net revenues from test services were $41.6 million or 44.8% of revenues. Gross profit for the fourth quarter was $19.5 million or a gross margin of 21.0% compared to gross profit of $25.8 million or a gross margin of 39.6% in the same quarter a year ago. Gross margin for this quarter was down 9.2% from the 30.2% in third quarter 2000 due principally to a higher portion of array business which has lower gross margin and lower capacity utilization. Depreciation expense and cost of leasing production equipment for this quarter increased to $25.8 million or 27.8% of net revenues, compared to $22.7 million or 25.1% of revenues in the third quarter. The higher depreciation expense and cost of leasing production equipment reflected the impact of the additional production equipment added in the third quarter. Fourth quarter operating expenses, which include stock-based compensation charges, were $15.2 million or 16.4% of net revenues compared to $14.3 million or 15.8% of net revenues in third quarter 2000. Selling, general and administrative expenses were $11.3 million or 12.2% of net revenues compared to $10.2 million or 11.2% of revenues in the third quarter due principally to higher utilities tariff and other administrative expenses. Research and development expenses were $3.7 million during the quarter, or 3.9% of net revenues. R&D expenses totaled $14.6 million for the full year, representing a 101.0% increase over the previous year, as the company invested significantly in advanced packaging technologies in support of our strategy of offering complete backend turnkey services to our customers. Net income for the quarter decreased by 51.4% from the third quarter 2000 as a result of slower growth in net revenues, higher fixed cost (principally depreciation expense and cost of leasing production equipment) and a higher portion of array business. The array business was again the fastest growing segment of our business in this quarter and contributed to 22% of assembly revenues. UNIT SHIPMENTS AND AVERAGE SELLING PRICES Unit shipments for the test business in fourth quarter 2000 increased by 47.6% over the same quarter a year ago, and decreased 2.3% sequentially over the third quarter 2000. Unit shipments in our assembly business increased by 63.1% over the same quarter a year ago, and 4.9% sequentially over the third quarter 2000. In this quarter, test average selling prices (ASPs) decreased by about 6.6% compared to third quarter 2000 due principally to shorter testing time as a result of different product mix and engineering efforts to reduce test time for customers. In the assembly business, the ASPs for this quarter increased by 2.0% from the third quarter of 2000 as a result of product mix. 3 During the quarter the company maintained its leadership in mixed signal testing which accounted for 79.1% of the test revenues. TEST REVENUES BREAKDOWN BY TESTING TYPE
THREE MONTHS ENDING ------------------------------------------- 30 SEPTEMBER, 2000 31 DECEMBER, 2000 ------------------ ------------------ TYPE OF TESTING % OF TEST REVENUES % OF TEST REVENUES - --------------- ------------------ ------------------ Mixed Signal 78.2 79.1 Digital 21.4 19.4 Memory 0.4 1.5
CAPITAL EXPENDITURES In this quarter, the company incurred $25.7 million in capital expenditures principally for production equipment, peripherals and equipment upgrades. Our capital expenditures year-to-date were $276.9 million. As of 31 December 2000, the company has 230 testers and 532 wirebonders. MARKET DYNAMICS The communications segment continued to be our largest revenue contributor in this quarter accounting for 68.6% of net revenues, in line with our strategic focus on communications customers. U.S. remained our largest revenue contributor by region. Revenues from Asia increased to 9.7% of net revenues reflecting higher wafer sort business and the growth of business from Japan. Contribution to net revenues from Integrated Device Manufacturers ("IDMs") declined in this quarter reflecting the weakening in demand of certain IDM customers. REVENUES BREAKDOWN BY MARKET SEGMENT
THREE MONTHS ENDING ------------------------------------------- 30 SEPTEMBER, 2000 31 DECEMBER, 2000 ------------------ ----------------- MARKET SEGMENT % OF NET REVENUES % OF NET REVENUES - -------------- ------------------ ----------------- Communications 60.8 68.6 Computer 31.5 27.9 Consumer, 7.7 3.5 Industrial and Others
REVENUES BREAKDOWN BY REGION
THREE MONTHS ENDING ------------------------------------------- 30 SEPTEMBER, 2000 31 DECEMBER, 2000 ------------------ ----------------- REGION % OF NET REVENUES % OF NET REVENUES - ------ ------------------ ----------------- United States 76.9 71.9 Europe 17.5 18.4 Asia 5.6 9.7
REVENUES BREAKDOWN BY CUSTOMER TYPE
THREE MONTHS ENDING ------------------------------------------- 30 SEPTEMBER, 2000 31 DECEMBER, 2000 ------------------ ----------------- CUSTOMER TYPE % OF NET REVENUES % OF NET REVENUES - ------------- ------------------ ----------------- Foundries 8.2 10.5 Fabless 43.2 50.0 IDMs 48.6 39.5
4 BUSINESS OUTLOOK The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. As announced in our press release of December 22, 2000, the company saw a sudden and sharp weakening of customers' demand in the later part of the fourth quarter. Based on current visibility, the company expects the weakness in customers' demand to continue into the first quarter of 2001. The company currently expects revenues in the first quarter to decline by between 20% and 30% from the fourth quarter. Said Tan Lay Koon, Chief Financial Officer, "Because of the capital intensive nature of our business, we carry a high fixed cost. As a result, the expected decline in revenues in the first quarter will result in further erosion of gross margin. Consequently we currently do not expect the first quarter to be profitable. Based on current outlook, we however expect the first quarter to be the lowest point of the year in both revenue and profitability terms." "Although the near-term outlook is cautious, we are optimistic about the longer-term prospects of our business. Our financial position is strong, our technology offering is more robust and our customers' base more diversified. Based on extensive engagement with customers including specific new packages qualified and currently under qualification, we expect to see recovery in the second half of 2001. Responding to a more cautious outlook, we will monitor closely our capital expenditures and will incur them only if they are firmly supported by customers' demand. We continue to plan for about $100m in capital expenditures this year, most of which are expected only in the second half of this year," added Tan Bock Seng. HIGHLIGHTS OF 4TH QUARTER ACHIEVEMENTS In November STATS announced a two-year test agreement with Infineon Technologies. Under the agreement STATS agreed to provide services ranging from test program conversion to wafer sort and final production test. The company expects the contract to generate an estimated US$30 to US$40 million over the two-year period. During the quarter STATS also announced the selection of pure tin (Sn) solder as a lead-free solution for it's leaded package product offering. STATS has established pure tin plating capacity to support any customer that would like to qualify their lead-frame based packages with this environmentally friendly solution. STATS announced the development of a strip handler for multi-site testing of integrated circuits. The technology allows multiple devices to be tested simultaneously prior to the singulation process. This produces greater efficiency and eliminates a medium of transfer, like trays or tubes. 5 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF DECEMBER 31, 1999 AND DECEMBER 31, 2000 IN THOUSANDS OF US DOLLARS
DECEMBER 31, DECEMBER 31, 1999 2000 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 16,568 $141,733 Accounts receivable, net 37,404 52,315 Amounts due from ST and ST affiliates 6,532 8,727 Amounts due from ST Treasury (CDs) -- 10,000 Other receivables 9,572 18,989 Inventories 11,313 14,793 Marketable securities -- 11,486 Prepaid expenses 7,079 24,809 -------- -------- Total current assets 88,468 282,852 Property, plant and equipment, net 251,298 380,934 Other receivables 1,835 -- Marketable securities -- 10,420 Prepaid expenses 10,364 37,552 -------- -------- Total Assets $351,965 $711,758 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt 60,000 -- Current installments of long-term debt 7,420 14,799 Accounts payable 13,070 13,956 Amounts due to ST and ST affiliates 5,533 2,062 Accrued operating expenses 20,559 32,963 Other payables 55,238 27,705 Income taxes payable 678 2,846 -------- -------- Total current liabilities 162,498 94,331 Deferred grant 1,923 2,631 Long-term debt, excluding current installments 46,360 29,599 -------- -------- Total Liabilities 210,781 126,561 SHAREHOLDERS' EQUITY Share capital 129,827 159,461 Additional paid-in capital 26,305 386,325 Accumulated other comprehensive income (loss) (9,731) (9,731) Retained earnings (deficit) (5,217) 49,142 -------- -------- Total Shareholders' Equity 141,184 585,197 -------- -------- Total Liabilities and Shareholders' Equity.. $351,965 $711,758 ======== ========
6 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 AND 2000 (UNAUDITED) IN THOUSANDS OF US DOLLARS (EXCEPT SHARE AND PER SHARE DATA)
FOR THE THREE MONTHS ENDED DECEMBER 31, --------------------------------------- 1999 2000 -------- -------- Net revenues $ 65,117 $ 92,798 Cost of revenues (39,307) (73,276) -------- -------- Gross profit 25,810 19,522 -------- -------- Operating expenses: Selling, general and administrative 9,243 11,314 Research and development 2,158 3,664 Stock-based compensation 16,871 85 Other general expenses (net) 14 170 -------- -------- Total operating expenses 28,286 15,233 -------- -------- Operating income (loss) (2,476) 4,289 -------- -------- Other income (expense): Interest income (expense), net (1,416) 2,458 Foreign currency exchange gain (loss) (488) 950 Other non-operating income, net 589 784 -------- -------- Total other income (expense) (1,315) 4,192 -------- -------- Income (loss) before income taxes (3,791) 8,481 Income tax benefit (expense) 160 (475) -------- -------- Net income (loss) $ (3,631) $ 8,006 -------- -------- Basic and diluted net (loss) income per ordinary share $ (0.005) $ 0.008 Basic and diluted net (loss) income per ADS $ (0.05) $ 0.08 Ordinary shares (in thousands) used in per ordinary share calculation: -- basic 773,602 985,665 -- effect of dilutive options -- 6,083 -------- -------- -- diluted 773,602 991,748 -------- -------- ADS (in thousands) used in per ADS calculation: -- basic 77,360 98,567 -- effect of dilutive options -- 608 -------- -------- -- diluted 77,360 99,175 -------- --------
7 ST ASSEMBLY TEST SERVICES LTD AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 1999 AND 2000 (UNAUDITED) IN THOUSANDS OF US DOLLARS (EXCEPT SHARE AND PER SHARE DATA)
FOR THE YEAR ENDED DECEMBER 31, ------------------------------- 1999 2000 --------- --------- Net revenues $ 201,098 $ 331,271 Cost of revenues (132,889) (231,944) --------- --------- Gross profit 68,209 99,327 --------- --------- Operating expenses: Selling, general and administrative 28,437 40,798 Research and development 7,283 14,636 Stock-based compensation 25,327 448 Other general expenses (income) net 37 (22) --------- --------- Total operating expenses 61,084 55,860 --------- --------- Operating income 7,125 43,467 --------- --------- Other income (expense): Interest income (expense), net (5,534) 8,214 Foreign currency exchange gain 1,385 2,018 Other non-operating income, net 2,379 3,525 --------- --------- Total other income (expense) (1,770) 13,757 --------- --------- Income before income taxes 5,355 57,224 Income tax expense (500) (2,865) --------- --------- Net income $ 4,855 $ 54,359 --------- --------- Basic and diluted net income per ordinary share $ 0.006 $ 0.056 Basic and diluted net income per ADS $ 0.06 $ 0.56 Ordinary shares (in thousands) used in per ordinary share calculation: -- basic 770,259 962,828 -- effect of dilutive options 16,466 7,803 --------- --------- -- diluted 786,725 970,631 --------- --------- ADS (in thousands) used in per ADS calculation: -- basic 77,026 96,283 -- effect of dilutive options 1,646 780 --------- --------- -- diluted 78,672 97,063 --------- ---------
8 ABOUT ST ASSEMBLY TEST SERVICES LTD. (STATS) ST Assembly Test Services Ltd ("STATS" -- NNM: STTS and SGX: ST Assembly), is a leading semiconductor test and assembly service provider to fabless companies, integrated device manufacturers and wafer foundries. With its principal operations in Singapore and global operations in the United States, United Kingdom, Japan and Taiwan, STATS offers full back-end turnkey solutions to customers worldwide. STATS' expertise is in testing mixed-signal semiconductors which are extensively used in fast growing communications applications such as data networking, broadband and mobile communications. STATS also offers advanced assembly services and has developed a wide array of traditional and advanced leadframe and laminate based products, including various ball grid array packages to serve some of the world's technological leaders. STATS was listed on the Nasdaq National Market and The Singapore Exchange in January 2000. Further information is available at www.stats.com.sg or www.statsus.com. Certain of the statements in this press release are forward-looking statements that involve a number of risks and uncertainties which could cause actual results to differ materially. Factors that could cause actual results to differ include: general business and economic conditions and the state of the semiconductor industry; demand for end-use applications products such as communications equipment and personal computers; decisions by customers to discontinue outsourcing of test and assembly services; changes in customer order patterns; rescheduling or cancellation of customer orders; changes in product mix; capacity utilization; level of competition; pricing pressures; continued success in technological innovation; delays in acquiring or installing new equipment; litigation and other risks described from time-to-time in the Company's SEC filings, including its annual report on Form 20-F dated March 30, 2000. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. MEDIA CONTACTS: Lim Beng See Lisa Lavin Director, Corporate Communications Manager, Marketing Tel: 65-7511111, Fax: 65-7555431 Tel: 208-672-6112, Fax: 208-672-6127 email: limbs@stats.st.com.sg email: lavinl@statsus.com
INVESTOR CONTACTS: Drew Davies Elaine Ang Director, Investor Relations Manager, Investor Relations Tel: (408) 941 3021, Fax: (408) 941 3014 Tel: (65) 751 1738, Fax: (65) 755 1585 email: daviesd@statsus.com email: angelaine@stats.st.com.sg
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