**In December 2015, Amkor increased its ownership in J-Devices Corporation from 66% to 100%. The operating results of J-Devices were consolidated beginning in 2016.
“Fourth quarter EPS was above the high end of our guidance,” said Megan Faust, Amkor’s corporate vice president and chief financial officer. “As expected, we received approximately $26 million of insurance proceeds related to the second quarter 2016 Japan earthquakes which contributed 250 basis points to gross margin and $0.08 (net of tax) to earnings per diluted share. With the receipt of these payments, the impact of the Japan earthquakes on our full year 2016 results was minimal.”
Cash and cash equivalents were $550 million, and total debt was $1.5 billion, at December 31, 2016.
Business Outlook
“We expect first quarter 2017 revenues to be around $900 million, up 4% year-on-year and down 12% sequentially,” said Kelley. “Although the smartphone market is going through a seasonal slowdown, demand in other markets is healthy.”
First quarter 2017 outlook:
- Net sales of $860 million to $940 million, down 8% to 16% from the prior quarter
- Gross margin of 13% to 17%
- Net loss of $27 million to net income of $12 million, or ($0.11) to $0.05 per diluted share
- Full year 2017 capital expenditures of around $500 million
Conference Call Information
Amkor will conduct a conference call on Monday, February 13, 2017, 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 60757036). 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 Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test, and is now a strategic manufacturing partner for more than 250 of the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes 10 million square feet of floor space with production facilities, product development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information visit www.amkor.com.
| AMKOR TECHNOLOGY, INC. | ||||||||||||||||||||
| Selected Operating Data | ||||||||||||||||||||
| Q4 2016 | Q3 2016 | Q4 2015 | 2016 | 2015 | ||||||||||||||||
| Net Sales Data: | ||||||||||||||||||||
| Net sales (in millions): | ||||||||||||||||||||
| Advanced products* | $ | 451 | $ | 480 | $ | 333 | $ | 1,680 | $ | 1,433 | ||||||||||
| Mainstream products** | 571 | 606 | 338 | 2,214 | 1,452 | |||||||||||||||
| Total net sales | $ | 1,022 | $ | 1,086 | $ | 671 | $ | 3,894 | $ | 2,885 | ||||||||||
| Packaging services | 83 | % | 82 | % | 85 | % | 82 | % | 85 | % | ||||||||||
| Test services | 17 | % | 18 | % | 15 | % | 18 | % | 15 | % | ||||||||||
| Net sales from top ten customers | 66 | % | 68 | % | 64 | % | 67 | % | 63 | % | ||||||||||
| End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers): | ||||||||||||||||||||
| Communications (smart phones, tablets, handheld devices, wireless LAN) | 45 | % | 47 | % | 54 | % | 44 | % | 55 | % | ||||||||||
| Automotive, industrial and other (infotainment, safety, performance, comfort) | 25 | % | 24 | % | 15 | % | 25 | % | 14 | % | ||||||||||
| Consumer (television, set top boxes, gaming, portable media, digital cameras) | 14 | % | 14 | % | 12 | % | 14 | % | 12 | % | ||||||||||
| Networking (servers, routers, switches) | 9 | % | 9 | % | 11 | % | 10 | % | 11 | % | ||||||||||
| Computing (PCs, hard disk drive, printers, peripherals, servers) | 7 | % | 6 | % | 8 | % | 7 | % | 8 | % | ||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
| Gross Margin Data: | ||||||||||||||||||||
| Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Cost of sales: | ||||||||||||||||||||
| Materials | 36.6 | % | 37.2 | % | 35.8 | % | 37.2 | % | 36.6 | % | ||||||||||
| Labor | 14.5 | % | 14.6 | % | 15.8 | % | 15.3 | % | 15.1 | % | ||||||||||
| Other manufacturing*** | 26.7 | % | 28.5 | % | 33.1 | % | 29.6 | % | 31.7 | % | ||||||||||
| Gross margin | 22.2 | % | 19.7 | % | 15.3 | % | 17.9 | % | 16.6 | % | ||||||||||
| *Advanced products include flip chip and wafer-level processing and related test services | ||||||||||||||||||||
| **Mainstream products include wirebond packaging and related test services | ||||||||||||||||||||
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***Fourth quarter and full year 2016 results include approximately $26 million of insurance proceeds related to the second quarter 2016 Japan earthquakes |
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AMKOR TECHNOLOGY, INC. |
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Selected Operating Data |
