WASHINGTON: Advanced Semiconductor Engineering (ASE) has announced consolidated revenues of NT$25.94 billion (US$824.6 million) for October 2016, down 4.9% sequentially and 6.5% on year. Despite lower consolidated revenues, revenues generated from ASE’s core IC ATM (assembly test and material) business grew 12.2% from a year earlier and 2.1% on month to NT$14.86 billion in October. ASE’s consolidated revenues for the first 10 months of 2016 totaled NT$223.69 billion, down about 5% from a year ago.
ASE expects the average utilization rate of its IC ATM operations to register an up to 5% sequential decrease, while that of its EMS operations will increase 10-15% on quarter. Meanwhile, gross margin of ASE’s IC ATM business for the fourth quarter will be similar to the 25.5% posted in the prior quarter, while that of the EMS business will be consistent with that during the first half of 2016. Market watchers expect ASE to post sequential growth of 2-4% in fourth-quarter consolidated revenues with flat gross margin.
