ASAT Holdings Limited Reports Record Revenues and Operating Earnings For the First Quarter Ended July 31, 2000.Business Editors HONG KONG--(BUSINESS WIRE)--Aug. 21, 2000 ASAT ASAT abbr. antisatellite Adj. 1. ASAT - of or relating to a system to destroy satellites in orbit; "antisatellite weapons" antisatellite Holdings Limited, a leading outsource supplier of advanced integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for package designs, assembly and test services for the semiconductor industry, today announced its first earnings results as a public company and reported record levels of revenues and earnings for the quarter ended July 31, 2000. The company raised $240 million in capital through its initial public offering on July 11 with the issuance of 20 million American Depositary Shares American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. priced at $12 per ADS. Each ADS, which trades on NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on under the symbol "ASTT ASTT Applied Science Technologists and Technicians (Canada) ASTT Advanced Simulation Technology Thrust (DARPA) ASTT Airborne Surveillance and Tracking Technology ASTT Angle Sum Triangle Theorem ," equals five ordinary shares. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering were used in part to repay a $40 million term loan and $17 million outstanding on ASAT's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. On August 23, the Company will repay 35% of high yield notes due 2006. The remaining cash balance of approximately $104 million will be used for general corporate purposes, including funding its expansion program. Total net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the most recent fiscal quarter were $103.0 million, an increase of 56.1 percent compared with $66.0 million for the same period a year earlier and a 23.1 percent increase compared with net sales of $83.7 million in the previous quarter ended April 30. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become in the July quarter increased 44.2 percent to $32.3 million, compared with $22.4 million for the same period a year ago. July quarter's gross profit increased 48.3 percent to $35.6 million, compared with $24.0 million for the same period a year earlier. Income after tax and before nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". for the July quarter was $16.1 million or $0.13 per ADS, based on weighted average shares outstanding of 119,113,043 compared with $9.9 million for the previous quarter and $12.3 million for the same period a year earlier. Inclusive of inclusive of prep. Taking into consideration or account; including. a nonrecurring charge of $2.6 million for the early retirement of debt, net income for the July quarter was $13.5 million or $0.11 per ADS. "The remarkable July quarter results are largely due to the successful execution of our capacity expansion program that met the rising demand from our customers," said Jerry Lee, chief executive officer. "In fact, we took delivery of our ordered equipment earlier than originally forecast because of the strong demand from our customers, and we were able to maintain a very high utilization rate with the increased capacity. Nonetheless, our corporate philosophy is really to manage for long-term sustainable growth and towards that end we continue to be very comfortable with the 18 month growth target that we set for ourselves at the time of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . Going forward, our focus will continue to be to provide our customers with advanced technology, quality manufacturing and added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
"Looking ahead, management is comfortable with its ability to meet the higher end Coordinates: For other places with the same name, see Billinge. Higher End or Billinge Higher End is a district of the Metropolitan Borough of Wigan, in Greater Manchester, England. of the recently published projected earnings estimates for the October quarter," Lee said. "Our growth expectations are based largely upon the continued strong growth in the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. demand of our customers. "We are focusing our efforts on high-growth applications, such as networking and broadband communications, in which ASAT's product and service offering gives our customers an edge in producing high-performance integrated circuitry," he said. "Close to 80% of our revenues comes from the communications sector. Of that amount, over 75% came from broadband and internet routers/networking in the last quarter." "We officially launched the leadless plastic chip carrier (LPCC LPCC Licensed Professional Clinical Counselor LPCC Leadless Plastic Chip Carrier LPCC Lincoln Park Chamber of Commerce LPCC Linear Prediction Cepstral Coefficients LPCC Louisiana Poison Control Center LPCC Light Pass Cricket Club ) as the basis for our new Kestrel kestrel Any of several birds of prey (genus Falco) known for hovering while hunting. Kestrels prey on large insects, birds, and small mammals. The male is more colourful than the female. Kestrels are mainly Old World birds, but one species, the American kestrel (F. family of products last month at Semicon. Further packages in the family will be introduced over the next two quarters. The Kestrel family consists of revolutionary new array and advanced chip scale package A chip scale package (CSP) (sometimes, chip-scale package with a hyphen) is a type of integrated circuit chip carrier. According to the IPC, to qualify as chip scale, the package must have an area no greater than 1.2 times that of the die that is being packaged. designs that have higher electrical and thermal performance in very small footprint packages." The market for outsourced advanced packaging solutions is projected to grow at a CAGR CAGR See: Compound Annual Growth Rate of over 27% over the next three years. "Longer term, we continue to see significant growth opportunities reflected in our customers' forecasts, particularly from those that support network processors, gigabit ethernet An Ethernet standard that transmits at 1 Gbps. Used mostly to connect high-end workstations and servers as well as for network backbones, Gigabit Ethernet transmits full duplex from point to point using switches and half duplex in a shared environment (CSMA/CD) using a hub. applications, home networking, and fiber channel applications," Lee added. ASAT Holdings Limited is a leader in advanced integrated circuit package designs and has provided outsourced assembly and test services for the semiconductor industry for over 10 years. The Company assembles a broad selection of advanced leaded and ball grid array “BGA” redirects here. For other uses, see BGA (disambiguation). A ball grid array (BGA) is a type of surface-mount packaging used for integrated circuits. packages utilizing advanced technology characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by higher electrical and thermal performance. The Company also has multi-chip module A Multi-Chip Module or MCM is a specialized electronic package where multiple integrated circuits (ICs), semiconductor dies or other modules are packaged in such a way as to facilitate their use as a single IC. and flip-chip assembly lines, and offers testing for complex broadband mixed-signal and system-on-a-chip devices used in communications. The Company has facilities and offices in Asia, Europe, and across the U.S., with its major manufacturing sites strategically located in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. . This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. intended to qualify under the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements regarding the anticipated demand for ASAT's products and services for 2000. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission. For further information, please contact: ASAT/Hong Kong Terry Scandrett, CFO See Chief Financial Officer. 852/2408-7811 terry_scandrett@asathkcom ASAT/Freemont, California Jim Healy Jim Healy (born 1923-died July 22, 1994) was a longtime Los Angeles sports commentator (KLAC, 1961-65; KFWB, 1969; KABC, 1969-84; KLAC, 1973-82; KMPC, 1984-94), whose daily solo radio show featured a number of sound effects and audio clips of famous sports personalities, which he , SVP SVP S'il Vous Plaît (French: Please) SVP Senior Vice President SVP Schweizerische Volkspartei (Swiss People~s Party) SVP Society of Vertebrate Paleontology SVP Social Venture Partners SVP St Vincent de Paul Sales & Marketing 510/249-1222 jim_healy@asat.com G.A. Kraut kraut n. 1. Sauerkraut. 2. often Kraut Offensive Slang Used as a disparaging term for a German. [German; see sauerkraut.] Noun 1. Company/New York Duke Coffey 212/696-5600 coffey@gakraut.com
CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, July 31,
2000 2000
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 10,892 $170,001
Accounts receivable-trade
(net of allowance for doubtful
accounts of $290 and $303
at April 30, 2000 and July
31, 2000, respectively) 40,566 50,663
Inventories 23,302 25,190
Prepaid expenses and
other current assets 10,911 15,684
-------- --------
Total current assets 85,671 261,538
Property, plant and
equipment, net 166,461 201,377
Option to acquire ASAT
S.A., at cost 20,000 20,000
Deferred charges 10,907 7,811
Noncompete covenants, net 442 195
-------- --------
Total assets $283,481 $490,921
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings $ 9,000 $ -
Current portion of 12.5%
Senior notes due 2006 - 52,303
Current portion of
other long-term debt 5,000 -
Accounts payable 24,549 32,529
Accrued liabilities 6,155 15,784
Income taxes payable 12,847 12,936
Amount due to QPL Group 5,300 5,063
Amount due to
a related company 297 519
-------- --------
Total current liabilities 63,148 119,134
Deferred income taxes 21,992 24,982
12.5% Senior notes due 2006 149,217 97,134
Other long-term debt 35,000 -
Shareholders' equity:
Common stock 5,760 6,760
Additional paid-in capital 12,457 233,457
Retained (deficit) earnings (4,093) 9,454
-------- --------
Total shareholders' equity 14,124 249,671
-------- --------
Total liabilities
and shareholders' equity $283,481 $490,921
======== ========
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except share data)
Three months ended
July 31, April 30, July 31,
1999 2000 2000
Net sales
- third parties $ 65,862 $ 83,731 $ 103,033
- QPL Group 101 - -
---------- ---------- ----------
Total net sales 65,963 83,731 103,033
---------- ---------- ----------
Cost of sales:
- Purchases from QPL
Group and other
related party 11,998 14,532 16,218
- Other costs 29,963 41,941 51,236
---------- ---------- ----------
Total cost of sales 41,961 56,473 67,454
---------- ---------- ----------
Gross profit 24,002 27,258 35,579
---------- ---------- ----------
Operating expenses:
Selling, general
and administrative 6,566 7,534 8,407
Research and development 1,157 1,169 1,561
---------- ---------- ----------
Total operating expenses 7,723 8,703 9,968
---------- ---------- ----------
Income from operations 16,279 18,555 25,611
Other income, net 65 802 1,151
Interest expense:
- amortization of
deferred charges - (461) (453)
- third parties (1,537) (6,028) (6,359)
- QPL Group (345) - -
Recapitalization costs - (186) -
---------- ---------- ----------
Income before income taxes
and extraordinary loss 14,462 12,682 19,950
Provision for income taxes (2,194) (2,770) (3,840)
---------- ---------- ----------
Income before
extraordinary loss 12,268 9,912 16,110
Extraordinary loss on early
extinguishment of debt
(net of income tax
benefit of $223) - - (2,565)
---------- ---------- ----------
Net income 12,268 9,912 13,545
Other comprehensive income:
Unrealized holding gain
on marketable securities 83 - -
---------- ---------- ----------
Comprehensive income $ 12,351 $ 9,912 $ 13,545
========== ========== ==========
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME -
continued
(Unaudited)
(In thousands, except share data)
Three months ended
July 31, April 30, July 31,
1999 2000 2000
Net income per
ordinary share:
Basic:
Income before
extraordinary loss $ 0.02 $ 0.02 $ 0.03
Extraordinary loss - - (0.01)
---------- ---------- ----------
Net income $ 0.02 $ 0.02 $ 0.02
========== ========== ==========
Basic weighted average
number of ordinary shares
outstanding 576,000,000 576,000,000 595,565,217
=========== =========== ===========
Net income per ADS:
Basic:
Income before
extraordinary loss $ 0.11 $ 0.09 $ 0.13
Extraordinary loss - - (0.02)
---------- ---------- ----------
Net income $ 0.11 $ 0.09 $ 0.11
========== ========== ==========
Basic weighted average
number of ADS outstanding 115,200,000 115,200,000 119,113,043
=========== =========== ===========
Note: During the quarter, the Company used a portion of the proceeds from its public offering of ADSs to repay early its $40 million senior secured loan and its revolving credit facility outstanding loan of $17 million. As a result of this early repayment, the Company recorded an extraordinary loss of $2,565,000. The loss represented a non cash charge and consisted of the unamortized deferred finance costs and is net of income tax benefit of $223,000. On August 23, 2000, the Company will use an additional portion of the proceeds from its public offering of ADSs to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. 35% of the aggregate principal amount of the 12.5% senior notes due November 2006, at a price of 112.5% of the principal, as provided in the senior notes. As a result of this early redemption, the Company expects to record an extraordinary loss of approximately $11 million. The loss consists primarily of the redemption premium redemption premium See call premium. and a non cash charge of approximately $5 million being the unamortized deferred finance costs and is net of income tax benefit of approximately $876,000. Dilutive securities change the earnings per share and ADS by less than one cent and accordingly, the dilutive earnings per share and ADS are the same as the basic earnings per share and ADS. |
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