MANHASSET, N.Y. ASE Test Ltd. (Taipei) reported third-quarter net income of $20.6 million, or 21 cents per share on sales of $163.5 million, compared with $0.7 million, or 2 cents per share on sales of $103.1 million in the year-ago quarter. Earnings fell from $29.5 million, or 29 cents per share on sales of $179.9 million the second quarter.
Revenues increased in ASE Test's test and module assembly businesses but declined in its IC packaging business, with gross margin for the packaging operations falling to -6.6 percent from 3.4 percent a year ago and -3.7 percent the previous quarter, due to lower capacity utilization.
ASE expects fourth-quarter revenue to be flat with the third quarter, with test revenue to increase but IC packaging and module assembly revenue to decline. Gross margins are expected to be similar to the third quarter.