Hello.
I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holdings.
Welcome to our First Quarter 2021 Earnings Release.
Thank you for attending our earnings presentation today.
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would everyone may I remind presentation to follows that that contain the statements. forward-looking like
are statements actual our differ risk may forward-looking high degree subject These results of materially. and a to
are otherwise For indicated. figures our the new in presentation, this stated purposes Taiwan of dollar generally dollars unless
materially Taiwan from financials Chinese IFRS. company, by using our As our are IFRS CFO. COO; presented our may accordance by Taiwan a Joseph Tien Dr. standards, differ results The GAAP. accounting Tung, with results presented other today presented including our using Taiwan-based in Wu, and I'm those joined using subsidiary
Joseph during will answer and available to For Q&A. the be Tien going call, today's will results. first then questions I be financial over our
During tight we our an that supply today. be true semiconductor supply about we of At capital continues increasingly to The supplies we and wafers tight seeing indicated last the substrates equipment. time, release, chain. saw environment talked earnings tight components
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times overall business we that our ATM step-up certainly that two have stated also generally Since targets an our time, to business. in seen number. We that grow
banner outlook constraints more we being growth also of year end Meanwhile, we business. for point environment through continue our the an be these towards see growth. range. further obstacle on went our EMS quarter. a signs constraints Nevertheless with original still to an the even soft very our with All business to ATM of growth becoming for improved high XXXX considered, some seasonally its However, see
companies the The and cycle. while for product on gauge their first manufacturing, when usually getting is ramp to in next ready down quarter zero when inventories
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see and the been between we transactions forward eliminated you and including next in Looking do consolidated quarter traditional turn during EMS business Page ATM to our SIP various our few ramps product quarters. will Intercompany EMS projects Please results. where new coming first consolidation. find have X,
$X.XX. basic XX.X%. of For driven Consolidated seasonality quarter, a $X.XX diluted revenue fully but we XX% sequential of the of first XX% and business. increased gross EPS EMS EPS quarter-over-quarter, billion with had profit of $XX a was year-over-year. by primarily We gross our This margin net of decreased recorded decline
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a the net During of sales, rate in This first was quarter non-operating billion. net gain quarter $X.X related The for the Tax investments consists XX%. quarter of for effective tax our and of the part expense was we exchange gains had hedging activities, primarily amount billion. $X.X to expense foreign billion. offset by $X.X asset interest
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just continues complexity. by bonding business unit unit to by driven also not demand, constrained, but wirebond increased be Our capacity
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year. revenues increase business billion, $X XX% ATM a quarter period This from represents from and and first increase up a $XX.X sequentially up were our previous billion the the billion X% last $X.X the year-over-year. for quarter of same For XXXX,
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and X.X quarter-over-quarter improved to raw product. X.X gross point percentage of improvement ATM Our impact due appreciation a percentage material high having gross margin point year-over-year. improvement a margin dollar low NT was percentage and despite negative was loading impact accomplished a
in quarter to fourth Looking high forward, even we do product a raw expect in switching reverse mix the material this the beneficial quarters. to second and product and itself mix third
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achieving We mid-XXs. margin on year the full to are our gross well way in
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PPA-related of and an of points find During improvement amortization, a points ATM On billion be and XX.X% an P&L. sequentially the graphical would five year-over-year. Page is representing market NT$X.X of you'll billion segment. XX.X% first was ATM percentage ATM profit depreciation percentage margin five improvement quarter, gross margin operating revenue quarter-over-quarter representation be Without of and NT$X.X would improving page On profit six impact was and NT$X.X the year-over-year. Operating margin profit by our XX%. billion X.X operating our
You can communications the seasonal the in here segment. see typical market decline
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wirebond-related materially underlying the advanced from provided regards to Chinese results eight, types do decline EAR. testing our On the by with they provide business differ gradual and our service directly see having which the revenue and our EMS report impact and EMS of the a representation using page EMS see graphical of you information Meanwhile, here a much of we can application. subsidiary information the our You may improvement independently seen GAAP. business US our have as our strength by can business. to of of The in
for policy maintain our quarter, of New softer-than-expected Year contributed throughout the levels a highly across encouraged along the resulted subject labor This to ours reducing with factories Lunar of to the such staffing lowering lower-than-expected Lunar This by risk during were government Year China-based the means extra business, COVID-XX travel China holiday. factories in expense. unexpected profitability. holiday. the special as China to New During
quarter, of base sequentially, primarily expanded first revenues revenues to the having due increased EMS During declined an a product XX% of as revenue result products. year-over-year XX% seasonality. EMS
product base. percentage to NT$X.X X.X profit gross year-over-year. Our margin billion NTNT$X.X of in Gross seasonality result result year-over-year of and was is lower EMS and gross the was of profit at gross sales wider higher percentage for EMS billion profit came a which the profit the sequential declining sequentially points year-over-year. due EMS business decline loading billion, was sequentially NT$X.X a points from higher The the X.X%, increasing and lower X.X
result role, lower the addition primarily margin decline of the result staffing down Year-over-year principally the quarter. seasonally sequential is In to and the mix. decline product of was during level the this aforementioned level gross role scale staffing the
expenses bonus expense year-over-year. decline result sequentially, the unit's billion EMS the annual staffing NT$X.X while billion, result increase were level The China's the is declining business operating operating expense role. while of lower NT$X.X first Our is of quarter increasing NT$X.X billion sequential
to percentage Our first increased in points X.X%, lower operating and The sequentially declining sales percentage quarter operating seasonality. are X.X year-over-year. the while expense driven movements by X.X expense percentage bonuses points percentage
operating EMS declined billion billion sequentially, profit year-over-year. NT$X.X NT$X.X improving Our while
our X.X%, Our sequentially we margin was continue EMS target declining X% for business. a full year-over-year. margin operating operating From perspective year percentage points percentage points up and X.X a EMS to X.X
will you revenue EMS graphical bottom find half application. page, On the representation of by our of a the
You perspective, will six Machinery find points. this capital and products of expenditures. each year sheet. that to dropped ratio targeted lines XX%, million, balance things are packaging, NT$XXX.X $XXX the EMS million that only our US to our in to first like The operations were total to lower Other From dollars. but in net to and soft from the for and generally about can driven range. $XXX we in add million with On you during here amounted million consumer in were items interconnect pronounced. capacity more find unused strongly million as full and Page We $XX our currently of not debt-to-equity seasonally our wirebonders. you others. credit line seasonally equipment billion Page totaled in by will XXXX XX, communication which XX% expect $X were in we our ended would segments and declined end XX% segments equipment key XX,XXX used see here that $XXX expenditures the on percentage by the X, Amounts materials wirebond slightly are testing year. than increase denoted quarter capital
expect to our compared to equipment last currently year. to also capital We as XX% XXXX increase XX%, expenditures
capacity invest It XX% one. challenging XX% roughly CapEx on equipment is current incredibly equipment. on packaging of manage is allocations. environment and difficult our to The expect to a We testing
wafer, component the continue We for tight and It's full even throughout this of substrate us. equipment see remainder coming to deliveries year. circle capital
lack our slipping, vendors Some delivery us equipment equipment telling are of that of semiconductors. schedules of their capital are because
seasonality worldwide years, been We aware effect capacity under incremental that been chain perceived for scarcity quarter. have just security. by times artificial a that quarters was for ago. capacity more very potentially semiconductor end demand an of specifically us saying don't created back under The the build. for snowball with capacity we but constrained the built in capacity typical early are underinvested, in believe COVID the systemically There of away At capacity. to two this perpetuates and has situation had supply in We scrambling current is outside only industry even balance rumblings customers in well are explained ordering most capacity lull simply
this disruption For a supply hand shifts chain and trailing equipment the there as resurgence trust deliver can at substrates on second edge as the jobs long-term has this components in gets during of year. What to look complexity, supply of leads during agreements? us our only the expanded a held like balance. do in extend in ask who everyone having is this years, leaders getting Who managers these. in allocation advantage see and use us, who invested provide would and geopolitical underway. Industry with loading capacity With at believe and you Regardless that, of the follows. the last we and these capital their Who their to stretch edge outlook others, technologies, three our the Who like of longer-term we of allocation Not stand in demand product back? while like trailing coming times? time? quarter business else the largest times cause, to at has advantage you to is we the have competitive We time.
For similar with should sequential second XXXX our rate. business, business quarter ATM growth be quarter growth ATM our second our sequential rate business
Our the gross improve quarter. ATM second margin should quarter first slightly XXXX from
For terms, EMS business similar US our with in levels. XXXX be EMS second business business quarter dollar quarter third should
profit slightly Our EMS year XXXX margin levels. should below operating full be
