ASE Technology Holding has reported internet revenue of NT$2.04 billion (US$66.2 million) for the primary quarter of 2019, down 62% sequentially. EPS for the quarter got here to NT$0.48.
ASE Technology posted consolidated revenues of NT$88.86 billion within the first quarter of 2019, down 22% on quarter, whereas gross margin slid 3.6pp to 12.8%. Sales of its core IC meeting, testing and materials (ATM) enterprise decreased 15% sequentially to NT$54.37 billion within the first quarter, with gross margin falling 6.3pp to 15.5%.
Meanwhile, gross sales of its EMS division fell 31% sequentially to NT$34.96 billion within the first quarter, with gross margin slipping to eight.4% from 9.1% within the fourth quarter of 2018.
ASE Technology attributed its weak efficiency in the course of the first quarter to unfavorable chip market situations, in addition to seasonal components. However, chip demand for smartphones, servers and notebooks is choosing up, beginning driving firm progress within the second quarter, in response to Joseph Tung, CFO for ASE Technology.
ASE Technology has additionally loved brisk orders for 5G base station chips, and is optimistic concerning the total demand for 5G and HPC associated purposes this 12 months, Tung continued. The firm ought to be capable of see its revenues register sequential progress by the final quarter of 2019, Tung mentioned.
ASE Technology expects its core IC ATM enterprise gross sales for the second quarter to be concerning the quarterly common of first-half 2018 ranges, which got here to almost NT$58.89 billion. Gross margin may also be across the first-half 2018 common that arrived at 18.1%.
As for its EMS companies, gross sales and working earnings in US greenback phrases are anticipated to be in line with the second-quarter 2018 ranges, in response to ASE Technology. Orders for SiP (system-in-package) options play a serious half within the firm’s EMS enterprise efficiency.
ASE Technology reiterated its earlier remarks that annual revenues generated from its SiP and fan-out packaging choices are anticipated to develop by US$100 million and US$50-100 million, respectively, within the subsequent few years.
ASE Technology was established following the completion of Advanced Semiconductor Engineering’s (ASE) merger with Siliconware Precision Industries (SPIL) on April 30, 2018.
