Third Quarter Highlights
- Net sales $734 million
- Gross margin 17.2%
- Net income $28 million
- Earnings per diluted share $0.12
TEMPE, Ariz. — (BUSINESS WIRE) — October 26, 2015 — Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the third quarter ended September 30, 2015.
"Third quarter revenues were at the higher end of our expectations and roughly flat to Q2,” said Steve Kelley, Amkor's president and chief executive officer. “Third quarter profit exceeded expectations, largely due to favorable exchange rates and a richer mix of assembly and test services."
| GAAP Results | |||||||
| Q3 2015 | Q2 2015 | Q3 2014 | |||||
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($ in millions, except per share data) |
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| Net sales | $734 | $737 | $813 | ||||
| Gross margin | 17.2% | 15.6% | 18.8% | ||||
| Net income* | $28 | $10 | $47 | ||||
| Earnings per diluted share* | $0.12 | $0.04 | $0.20 | ||||
*Second quarter 2015 results include a $9 million ($0.04 per diluted share) charge for the early extinguishment of debt related to the redemption of all $345 million aggregate principal amount of Amkor's outstanding 7.375% Senior Notes due 2018.
Cash and cash equivalents were $430 million, and total debt was $1.4 billion, at September 30, 2015.
Business Outlook
“In response to the generally soft end market demand for electronic devices, we expect customers to cautiously manage inventories through the fourth quarter of 2015,” said Kelley. “We are tightly controlling capital expenditures and working capital in line with the demand environment. Accordingly, we are reducing our estimate of full year 2015 capital expenditures from around $550 million to around $525 million, including around $150 million of spending for our new K5 facility."
Based upon currently available information, we have the following expectations for the fourth quarter 2015:
- Net sales of $660 million to $710 million, down 3% to 10% from the prior quarter
- Gross margin of 13% to 17%
- Net loss of $4 million to net income of $12 million, or ($0.02) to $0.05 per share
Conference Call Information
Amkor will conduct a conference call on Monday, October 26, 2015, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor's website: www.amkor.com. You may also access the call by dialing 1-877-645-6380 or 1-404-991-3911. A replay of the call will be made available at Amkor's website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID 58799565). The webcast is also being distributed over NASDAQ OMX's investor distribution network to both institutional and individual investors. Institutional investors can access the call via NASDAQ OMX's password-protected event management site, Street Events ( www.streetevents.com).
About Amkor
Amkor is a leading provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs. More information about Amkor is available from the company's filings with the Securities and Exchange Commission and at Amkor's website: www.amkor.com.
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AMKOR TECHNOLOGY, INC. |
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Selected Operating Data |
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| Q3 2015 | Q2 2015 | Q3 2014 | ||||||||||||||
| Net Sales Data: | ||||||||||||||||
| Net sales (in millions): | ||||||||||||||||
| Advanced products* | $ | 365 | $ | 362 | $ | 411 | ||||||||||
| Mainstream products** | 369 | 375 | 402 | |||||||||||||
| Total net sales | $ | 734 | $ | 737 | $ | 813 | ||||||||||
| Packaging services | 85 | % | 85 | % | 86 | % | ||||||||||
| Test services | 15 | % | 15 | % | 14 | % | ||||||||||
| Net sales from top ten customers | 61 | % | 62 | % | 60 | % | ||||||||||
| Packaged units (in millions): | ||||||||||||||||
| Advanced products* | 1,305 | 1,275 | 1,012 | |||||||||||||
| Mainstream products** | 2,750 | 2,703 | 3,545 | |||||||||||||
| Total packaged units | 4,055 | 3,978 | 4,557 | |||||||||||||
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End Market Distribution Data (an approximation including representative devices
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| Communications (smart phones, tablets, handheld devices, wireless LAN) | 55 | % | 56 | % | 56 | % | ||||||||||
| Automotive, industrial and other (infotainment, safety, performance, comfort) | 13 | % | 12 | % | 11 | % | ||||||||||
| Consumer (televisions, set top boxes, gaming, portable media, digital cameras) | 12 | % | 12 | % | 13 | % | ||||||||||
| Networking (servers, routers, switches) | 12 | % | 11 | % | 11 | % | ||||||||||
| Computing (PCs, hard disk drives, printers, peripherals, servers) | 8 | % | 9 | % | 9 | % | ||||||||||
| Total | 100 | % | 100 | % | 100 | % | ||||||||||
| Gross Margin Data: | ||||||||||||||||
| Net sales | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Cost of sales: | ||||||||||||||||
| Materials | 36.8 | % | 37.2 | % | 37.5 | % | ||||||||||
| Labor | 14.9 | % | 15.7 | % | 14.1 | % | ||||||||||
| Other manufacturing | 31.1 | % | 31.5 | % | 29.6 | % | ||||||||||
| Gross margin | 17.2 | % | 15.6 | % | 18.8 | % | ||||||||||
| Earnings per Share Data: | ||||||||||||||||
| Net income attributable to Amkor common stockholders - basic and diluted | $ | 28 | $ | 10 | $ | 47 | ||||||||||
| Weighted average shares outstanding - basic | 237 | 237 | 236 | |||||||||||||
| Effect of dilutive securities: | ||||||||||||||||
| Stock options and restricted share awards | — | — | 1 | |||||||||||||
| Weighted average shares outstanding - diluted | 237 | 237 | 237 | |||||||||||||
| Net income attributable to Amkor per common share: | ||||||||||||||||
| Basic | $ | 0.12 | $ | 0.04 | $ | 0.20 | ||||||||||
| Diluted | $ | 0.12 | $ | 0.04 | $ | 0.20 | ||||||||||
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*Advanced products include flip chip and wafer-level processing and related test services |
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**Mainstream products include wirebond packaging and related test services |
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AMKOR TECHNOLOGY, INC. |
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CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited) |
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For the Three Months Ended
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For the Nine Months Ended
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| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||
| Net sales | $ | 734,362 | $ | 812,824 | $ | 2,213,959 | $ | 2,276,327 | |||||||||
| Cost of sales | 607,762 | 659,607 | 1,837,314 | 1,843,576 | |||||||||||||
| Gross profit | 126,600 | 153,217 | 376,645 | 432,751 | |||||||||||||
| Selling, general and administrative | 54,232 | 61,600 | 173,609 | 191,698 | |||||||||||||
| Research and development | 21,073 | 16,437 | 59,119 | 59,561 | |||||||||||||
| Total operating expenses | 75,305 | 78,037 | 232,728 | 251,259 | |||||||||||||
| Operating income | 51,295 | 75,180 | 143,917 | 181,492 | |||||||||||||
| Interest expense | 17,695 | 23,780 | 64,317 | 70,039 | |||||||||||||
| Interest expense, related party | 1,243 | 1,243 | 3,727 | 3,727 | |||||||||||||
| Other (income) expense, net | (11,576 | ) | (9,626 | ) | (4,784 | ) | (15,289 | ) | |||||||||
| Total other expense, net | 7,362 | 15,397 | 63,260 | 58,477 | |||||||||||||
| Income before taxes and equity in earnings of unconsolidated affiliate | 43,933 | 59,783 | 80,657 | 123,015 | |||||||||||||
| Income tax expense | 16,568 | 14,985 | 27,198 | 32,425 | |||||||||||||
| Income before equity in earnings of unconsolidated affiliate | 27,365 | 44,798 | 53,459 | 90,590 | |||||||||||||
| Equity in earnings of J-Devices | 1,656 | 3,372 | 15,460 | 29,169 | |||||||||||||
| Net income | 29,021 | 48,170 | 68,919 | 119,759 | |||||||||||||
| Net income attributable to noncontrolling interests | (847 | ) | (1,073 | ) | (2,386 | ) | (2,508 | ) | |||||||||
| Net income attributable to Amkor | $ | 28,174 | $ | 47,097 | $ | 66,533 | $ | 117,251 | |||||||||
| Net income attributable to Amkor per common share: | |||||||||||||||||
| Basic | $ | 0.12 | $ | 0.20 | $ | 0.28 | $ | 0.51 | |||||||||
| Diluted | $ | 0.12 | $ | 0.20 | $ | 0.28 | $ | 0.50 | |||||||||
| Shares used in computing per common share amounts: | |||||||||||||||||
| Basic | 236,888 | 236,337 | 236,813 | 228,733 | |||||||||||||
| Diluted | 236,974 | 237,509 | 237,168 | 236,672 | |||||||||||||
