Amkor Reports First Quarter 2008 Results

CHANDLER, Ariz.—(BUSINESS WIRE)—April 30, 2008— Amkor Technology, Inc. (NASDAQ: AMKR) today reported its financial results for the first quarter ended March 31, 2008.

First quarter net sales of $699 million were down sequentially 6.3% from the fourth quarter of 2007 and up 7.4% from the first quarter of 2007. First quarter net income was $72 million, down 23% from the fourth quarter of 2007 and up 108% from the first quarter of 2007. First quarter earnings per diluted share was $0.36, down 22% from the fourth quarter of 2007 and up 100% from the first quarter of 2007.

We delivered solid first-quarter results, which reflected a seasonal slowdown in demand following an exceptionally strong fourth quarter, said James Kim, Amkors chairman and chief executive officer. We exceeded our sales and profitability targets for the first quarter due to select customer demand in certain wireless communications and networking applications, which partially offset the overall seasonal slowing that we had expected. Our first quarter net income included an approximately $9.5 million foreign currency gain principally due to the depreciation of the Korean won and the resulting remeasurement of our Korean employee benefit plan liability.

We believe that our stability within a challenging economy comes as a result of our continued focus on advanced product development paired with long-standing relationships and collaboration with leading semiconductor companies as well as our world-class manufacturing capabilities, added Kim. As we look to the second quarter, we expect revenues to grow sequentially by 1% to 3%, slightly lower than historical seasonality but near historical peak revenues on a dollar basis.

Net sales decreased $47 million or 6.3% sequentially, while unit shipments decreased 7.2% compared to the fourth quarter of 2007, said Joanne Solomon, Amkors chief financial officer. First quarter 2008 sales reflect the benefit of our capital investments in advanced technologies and strong demand from our fabless customers supporting mobile phones and networking applications.

Gross margin for the first quarter was 25.2%, down from 27.2% in the fourth quarter of 2007, reflecting the impact of lower sales volume. Gross margin for the first quarter of 2008 improved from 22.6% for the first quarter of 2007, primarily as a result of higher capacity utilization, enriched product mix and improved factory performance. Amkor generated $92 million of free cash flow in the first quarter, compared to $113 million in the fourth quarter of 2007 and $72 million in the first quarter of 2007.

During the first quarter, we repaid $101 million of debt, which included the remaining $88 million of 9.25% senior notes we retired in February, bringing our total debt to under $1.7 billion at quarter end. Net interest expense for the quarter was $29 million, a 21% decrease from net interest expense of $37 million for the first quarter of 2007. We are scheduled to repay an additional $53 million of maturing and amortizing debt throughout the remainder of 2008. Our cash balance at the end of the first quarter was $412 million, roughly flat compared to year-end 2007, said Solomon.

First quarter capital additions totaled $95 million, which was less than we anticipated due to a delay in timing of planned expenditures into the second quarter. Capital additions are expected to be approximately $140 million in the second quarter of 2008, said Solomon. Although our capital investment is expected to be higher in the first half of 2008 due to the longer lead times associated with the expansion of our wafer bumping capacity, we remain focused on disciplined capital spending for the full year. For 2008, we expect our capital intensity to be 12% to 14% of full year revenues. Our capital additions are aligned with our advanced product development roadmaps and are focused on expanding our product portfolio capabilities in support of the demand from our largest customers.

Amkors effective income tax rate for the first quarter was 7.6%, and the anticipated effective tax rate for the full year 2008 is approximately 8%.

Selected operating data for the first quarter of 2008 is included in a section before the financial tables.

Business Outlook

On the basis of customers forecasts, we have the following expectations for the second quarter of 2008:

  • Sales Up 1% to 3% from the first quarter of 2008
  • Gross Margin approximately 25%
  • Net income in the range of $0.32 to $0.36 per diluted share

1 | 2 | 3 | 4  Next Page »



Review Article Be the first to review this article

Harris

Featured Video
Jobs
Vice President, GIS Business Unit for RAMTeCH Software Solutions, Inc. at Stillwater, Minnesota
GIS ANALYST for Cobb County Government at Marietta, California
Senior Account Manager, Utilities for RAMTeCH Software Solutions, Inc. at Stillwater, Minnesota
GIS Engineer III for Nebraska State Government at Lincoln|, Nebraska
BIM / REVIT Senior Structural Modeler for McNamara Salvia at New York, California
Associate Packaging Engineer for Unilever at Englewood Cliffs, New Jersey
Upcoming Events
Esri Malaysia User Conference 2018 at Kuala Lumpur Convention Centre Kuala Lumpur Malaysia - Oct 25, 2018
Milipol Qatar 2018 at Doha Qatar - Oct 29 - 31, 2018
GeoAlberta 2018 at The Westin Downtown Edmonton Edmonton Canada - Oct 29 - 31, 2018
GEO Week 2018 at Kyoto International Conference Center (ICC Kyoto) Kyoto Japan - Oct 29 - 2, 2018
Teledyne Optech
Teledyne:



Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise