(Source: Business Wire)
Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of
semiconductor assembly and test services, today reported its financial
results for the quarter ended September 30, 2009.
Third quarter net sales of $616 million were up 22% sequentially from
the second quarter of 2009 and down 14% from the third quarter of 2008.
Third quarter net income was $81 million or $0.31 per diluted share,
compared to $9 million or $0.05 per diluted share in the second quarter.
Net income for the third quarter of 2009 includes income tax benefits of
$34 million or $0.12 per diluted share primarily from the release of a
tax valuation allowance at our subsidiary in Korea. Net income for the
third quarter of 2008 was $29 million, or $0.15 per diluted share. Net
income for the third quarter of 2008 included a charge of $52 million or
$0.25 per diluted share, relating to the resolution of a patent license
dispute.
"We performed well in the third quarter, delivering strong results,"
said Ken Joyce, chief executive officer of Amkor. "Net sales increased
22%, reflecting higher than typical seasonal growth, primarily driven by
demand for communications and consumer applications. We achieved gross
margin of 25% for the quarter, up sequentially from 20% in the second
quarter of 2009, as we benefited from higher levels of capacity
utilization and our earlier cost reduction efforts. As the global
economy continues to improve, we are prudently investing in expanding
capacity for our advanced interconnect technologies in close alignment
with customer product roadmaps."
"Looking ahead to the fourth quarter, we expect net sales to be flat,
plus or minus 2%, from the third quarter of 2009 and gross margin of 23%
to 25% based on current forecasts from our customers," added Joyce.
"We generated $81 million in free cash flow in the third quarter and
ended the quarter with a cash balance of $447 million and total debt of
just under $1.5 billion," said Joanne Solomon, Amkor's chief financial
officer. "During the third quarter, we repurchased $25 million of our
7.125% senior notes due 2011 and $49 million of our 7.75% senior notes
due 2013. We have an aggregate of $86 million of debt coming due through
the end of 2010, and the remaining $119 million of our 7.125% notes and
2.5% convertible notes mature in 2011."
"Third quarter 2009 capital additions were $78 million. We expect
capital additions for the fourth quarter to be approximately $70 million
and approximately $200 million for the full year 2009 with full year
capital intensity of approximately 9%. Our third quarter 2009 and
planned capital additions are primarily related to expanding our
capacity in response to increased levels of customer demand," said
Solomon.
Selected operating data for the third quarter of 2009 is included in a
section before the financial tables.
Business Outlook
Based upon the latest available information, we have the following
expectations for the fourth quarter of 2009:
Net sales flat, plus or minus 2%, from the third quarter of 2009
Gross margin between 23% and 25%
Net income -- in the range of $0.17 to $0.23 per diluted share
Conference Call Information
Amkor will conduct a conference call on October 27, 2009 at 5:00 p.m.
eastern time. This call is being webcast and can be accessed at Amkor's
web site at www.amkor.com.
You may also access the call by dialing 888-561-1799. A replay of the
call will be made available at Amkor's web site or by dialing
800-406-7325 (access passcode # 4169497). The webcast is also being
distributed over Thomson Financial's Investor Distribution Network to
both institutional and individual investors. Individual investors can
listen to the call through Thomson Financial individual investor center
at www.companyboardroom.com
or by visiting any of the investor sites in Thomson Financial's
Individual Investor Network. Institutional investors can access the call
via Thomson Financial's password-protected event management site,
StreetEvents (www.streetevents.com).
About Amkor
Amkor is a leading provider of semiconductor assembly and test services
to semiconductor companies and electronics OEMs. More information on
Amkor is available from the company's SEC filings and on Amkor's
website: www.amkor.com.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the
meaning of federal securities laws. All statements other than statements
of historical fact are considered forward-looking statements including,
without limitation, statements regarding the following: expectations
regarding net sales and gross margin in the fourth quarter of 2009; the
expected dollar amount and focus of our capital additions and the
expected level of capital intensity; and the statements made under
Business Outlook including those regarding net sales, gross margin and
net income. These forward-looking statements involve a number of risks,
uncertainties, assumptions and other factors that could affect future
results and cause actual results and events to differ materially from
historical and expected results and those expressed or implied in the
forward-looking statements, including, but not limited to, the following:
the highly unpredictable nature of the semiconductor industry;
the effect of the global economy on credit markets, financial
institutions, customers, suppliers and consumers;
inability to achieve high capacity utilization rates;
volatility of consumer demand for products incorporating our
semiconductor packages;
weakness in the forecasts of Amkor's customers;
customer modification of and follow through with respect to forecasts
provided to Amkor;
curtailment of outsourcing by our customers;
our substantial indebtedness and restrictive covenants;
failure to realize sufficient cash flow to fund capital additions;
the effects of a recession in the U.S. and other economies worldwide;
the highly unpredictable nature and costs of litigation and other
legal activities and the risk of adverse results of such matters;
worldwide economic effects of terrorist attacks, natural disasters and
military conflict;
our ability to reduce costs;
competitive pricing and declines in average selling prices;
timing and volume of orders relative to production capacity;
fluctuations in manufacturing yields;
competition;
dependence on international operations and sales;
dependence on raw material and equipment suppliers and changes in raw
material costs;
exchange rate fluctuations;
dependence on key personnel;
difficulties in managing growth;
enforcement of intellectual property rights;
environmental and other governmental regulations; and
technological challenges.
Other important risk factors that could affect the outcome of the events
set forth in these statements and that could affect our operating
results and financial condition are discussed in the company's Annual
Report on Form 10-K for the year ended December 31, 2008 and in the
company's subsequent filings with the Securities and Exchange Commission
made prior to or after the date hereof. Amkor undertakes no obligation
to review or update any forward-looking statements to reflect events or
circumstances occurring after the date of this press release.
AMKOR TECHNOLOGY, INC.
Selected Operating Data
Sales Data: Q3 2009 Q2 2009 Q3 2008
Packaging services:
Wirebond - leadframe 28 % 25 % 29 %
Wirebond - laminate 44 % 43 % 40 %
Flip chip and wafer level processing 17 % 20 % 20 %
Packaging services 89 % 88 % 89 %
Test services 11 % 12 % 11 %
Total sales 100 % 100 % 100 %
Packaged units (in millions):
Wirebond - leadframe 1,802 1,229 1,957
Wirebond - laminate 419 330 390
Flip chip and wafer level processing 126 134 157
Total packaged units 2,347 1,693 2,504
Net sales from top ten customers 54 % 54 % 49 %
Capacity utilization 82 % 66 % 86 %
End Market Distribution Data (an approximation based on a sampling of our largest customers):
Communications 50 % 49 % 42 %
Consumer 30 % 30 % 33 %
Computing 13 % 14 % 15 %
Other 7 % 7 % 10 %
Total 100 % 100 % 100 %
Earnings per Share Data: Q3 2009 Q2 2009 Q3 2008
(in millions, except per share data)
Net income attributable to Amkor - basic $ 81 $ 9 $ 29
Adjustment for dilutive securities on net income:
Interest on 2.5% convertible notes due 2011, net of tax - - 1
Interest on 6.25% convertible notes due 2013, net of tax 2 - 2
Interest on 6.0% convertible notes due 2014, net of tax 4 4 -
Net income attributable to Amkor - diluted $ 87 $ 13 $ 32
Weighted average shares outstanding - basic 183 183 183
Effect of dilutive securities:
Stock options - - 1
2.5% convertible notes due 2011 3 - 13
6.25% convertible notes due 2013 13 - 13
6.0% convertible notes due 2014 83 83 -
Weighted average shares outstanding - diluted 282 266 210
Net income attributable to Amkor per common share:
Basic $ 0.44 $ 0.05 $ 0.16
Diluted $ 0.31 $ 0.05 $ 0.15
Q3 2009 Q2 2009 Q3 2008
(in millions)
Capital Investment Data:
Property, plant and equipment additions $ 78 $ 27 $ 92
Net change in related accounts payable and deposits (36 ) - 34
Purchases of property, plant and equipment $ 42 $ 27 $ 126
Depreciation and amortization $ 74 $ 77 $ 79
A service of YellowBrix, Inc.
