ASE Technology Holding (ASX) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 27, 2022 3:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ken Hsiang

Hello. I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holdings. Welcome to our Third Quarter 2022 Earnings Release. Thank you for attending our conference call today. Please refer to our Safe Harbor notice on Page 2. All participants consent to having their voices and questions broadcast via participation in this event. If participants do not consent, please disconnect at this time.

I would like to remind everyone that the presentation that follows may contain forward-looking statements. These forward-looking statements are subject to a high degree of risk, and our actual results may differ materially. For the purposes of this presentation, our dollar figures are generally stated in New Taiwan dollars, unless otherwise indicated. As a Taiwan-based company, our financials are presented in accordance with Taiwan IFRS. Results presented using Taiwan IFRS may differ materially from results using other accounting standards, including those presented by our subsidiary using Chinese GAAP. Intercompany transactions between our ATM and EMS businesses have been eliminated during consolidation, but appear within business unit results.

For today's call, I am joined by Joseph Tung, our CFO. During the call, I will go over our financial results and outlook, Joseph will be available to answer questions during the Q&A session that follows. Also as a reminder, we disposed off ASC Inc.'s China sites at the end of 2021. For our financial results presented here, in addition to our legal entity results, we have included information on a pro forma basis or as if the disposition of ASE Inc.'s China sites had already occurred. We believe the pro forma results give additional meaningful information, which would assist in providing comparability of our financial results. For the purposes of this presentation, we will generally discuss our full company and ATM third quarter results sequentially compared with second quarter legal entity results, and year-over-year compared with pro forma third quarter 2021.

Please turn to Page 3, where you will find our third quarter consolidated results with legal entity and pro forma basis comparisons. For the third quarter, we recorded fully diluted EPS of NT$3.92 and basic EPS of NT$4.03. Consolidated net revenue increased 18% sequentially and 25% year-over-year. We had a gross profit of NT$38 billion with a gross margin of 20.1%. Our gross margin declined by 1.3 percentage points sequentially and 0.3 percentage points year-over-year. The sequential and annual margin decreases were primarily attributable to higher EMS business mix offset in part by favorable currency conditions within our ATM and EMS businesses.