ASX - ASE Technology Holding Co. Ltd. (ASX) Q1 2024 Earnings Call Transcript
2024-04-26 01:20:02 ET
ASE Technology Holding Co., Ltd. (ASX)
Q1 2024 Earnings Conference Call
April 25, 2024 03:00 ET
Company Participants
Ken Hsiang - Head, Investor Relations
Joseph Tung - Chief Financial Officer
Conference Call Participants
Gokul Hariharan - JPMorgan
Charlie Chan - Morgan Stanley
Brad Lin - Bank of America
Randy Abrams - UBS
Rick Hsu - Daiwa Securities
Bruce Lu - Goldman Sachs
Laura Chen - Citigroup
Jason Chen - CLSA
Presentation
Ken Hsiang
Hello. I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holdings. Welcome to our First Quarter 2024 Earnings Release. Thank you for attending today. Please refer to our safe harbor notice on Page 2. [Operator Instructions] 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, dollar figures are generally stated in new Taiwan dollars, unless otherwise indicated. As a Taiwan-based company, our financial information is 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. I’m joined today by Joseph Tung, our CFO. For today’s presentation, I will first go over the financial results and give the company guidance. Joseph will then be available to take your questions during the Q&A session that follows. During the Q&A session, each caller will be limited to two questions at a time, but may return to the queue for further questions.
With that, let’s get started. As per our expectations, the overall demand environment for our services during the first quarter fell on a sequential quarterly basis, primarily due to seasonality of electronics products. And as was the case at the end of 2023, higher and leading-edge services generally fared better than legacy services. For our ATM business, revenues were on the higher end of our expectations. During the quarter, key equipment utilization rates were still relatively low, averaging out around 60%. Certain devices initiated a short but unsustained inventory refresh, easing off initially more optimistic outlooks.
For our EMS business in the first quarter, demand for our services was slightly ahead of our initial expectations as a result of improving customer inventory levels. Please turn to Page 3, where you will find our first quarter consolidated results. For the first quarter, we recorded fully diluted EPS of $1.28 and basic EPS of $1.32. Consolidated net revenues declined 17% sequentially but increased 1% year-over-year. We had a gross profit of $20.9 billion with a gross margin of 15.7%. Our gross margin declined by 0.3 percentage points sequentially but increased by 0.9 percentage points year-over-year. The sequential decline in margin is principally due to lower revenues due to seasonality of both our ATM and EMS businesses....
ASE Technology Holding Co., Ltd. (ASX) Q1 2024 Earnings Call Transcript