Fourth Quarter 2011
- Net sales $684 million
- Gross margin 16%
- Net income $25 million
- Earnings per diluted share $0.11
Full Year 2011
- Net sales $2.78 billion
- Gross margin 18%
- Net income $92 million
- Earnings per diluted share $0.39
CHANDLER, Ariz. — (BUSINESS WIRE) — February 9, 2012 — Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter ended December 31, 2011, with net sales of $684 million, net income of $25 million, and earnings per diluted share of $0.11. For the full year 2011, Amkor reported net sales of $2.78 billion, net income of $92 million, and earnings per diluted share of $0.39.
"During the fourth quarter we saw record quarterly sales in our wireless communications end market driven by strong demand for smartphones and tablets," said Ken Joyce, Amkor's president and chief executive officer. "We also experienced a seasonal decline in gaming and consumer electronics and some softness in demand in the networking, automotive and industrial areas."
"We achieved some notable successes in 2011," added Joyce. "We continued to build upon our industry-leading position in flip chip and other advanced packaging, and commercialized our innovative fine pitch copper pillar flip chip technology. We also delivered a sixth consecutive year of positive free cash flow, and overcame the extraordinary supply chain challenges that resulted from the tragic earthquake and tsunami in Japan."
Selected financial information for the fourth quarter 2011 is as follows:
- Net Sales: $684 million, down 8% from $740 million in the prior quarter, and down 9% from $751 million in the fourth quarter of 2010
- Gross Margin: 16%, compared to 17% in the prior quarter, and 21% in the fourth quarter of 2010
- Net Income: $25 million, down from $27 million in the prior quarter, and down from $51 million in the fourth quarter of 2010
- Earnings Per Diluted Share: $0.11, equal to the prior quarter, and down from $0.20 in the fourth quarter of 2010
Selected financial information for the full year 2011 is as follows:
- Net Sales: $2.78 billion, down 6% from $2.94 billion in 2010
- Gross Margin: 18%, compared to 23% in 2010
- Net Income: $92 million, down 60% from $232 million in 2010
- Earnings Per Diluted Share: $0.39, down 57% from $0.91 in 2010
"We continued to focus on cost reduction initiatives in the fourth quarter," said Joanne Solomon, Amkor's executive vice president and chief financial officer. "We recorded a charge of $4 million (or $0.01 per diluted share) in the quarter for restructuring costs associated with reductions in our workforce."
“Capital additions were $128 million during the fourth quarter, primarily in support of specific business for key customers in smartphones and tablets, for expansion of our facilities in China in support of NAND memory business, and for cost reduction initiatives in our factories,” said Solomon.
In August 2011, Amkor's Board of Directors authorized the repurchase of up to $150 million of our common stock. During the fourth quarter the company repurchased 17.7 million shares at a purchase price of $80 million, for a total of 28.6 million shares at a purchase price of $129 million for the full year 2011.
At its recent meeting in February 2012, the Board of Directors
authorized an additional $150 million for the repurchase of our common
stock. “Our stock repurchase program has been very successful to date,
and we believe that the continuation of the program will serve to
enhance stockholder value,” said Joyce. The purchase of stock under this
program may be made in the open market or through privately negotiated
transactions. The timing, manner, price and amount of any repurchases
will be determined by the Company at its discretion and will depend upon
a variety of factors including economic and market conditions, price,
applicable legal requirements and other factors. The stock repurchase
program will be funded with available cash and may be suspended or
discontinued at any time.