Amkor Technology Reports Financial Results for the Second Quarter 2012

Second Quarter 2012

  • Net sales $687 million
  • Gross margin 13%
  • Net income $1 million
  • Earnings per diluted share $0.00

Second Quarter 2012 Excluding $34 Million Charge for Loss Contingency Accrual

  • Adjusted gross margin 17%
  • Adjusted net income $33 million
  • Adjusted earnings per diluted share $0.15

CHANDLER, Ariz. — (BUSINESS WIRE) — July 26, 2012 — Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the second quarter ended June 30, 2012, with net sales of $687 million, net income of $1 million, and earnings per diluted share of $0.00.

Second quarter results included a charge of $34 million ($32 million, net of tax), or $0.13 per diluted share (net of tax), relating to an accrual of the low end of Amkor's estimated loss for the previously announced interim order issued by an arbitration panel relating to Amkor's license agreement with Tessera, Inc. Of the total accrual, $30 million was recorded as cost of goods sold and $4 million was recorded as interest expense.

“After adjusting for the loss contingency accrual, second quarter results were consistent with our expectations,” said Ken Joyce, Amkor's president and chief executive officer. “Amkor's strong position in communications continues to drive our business with notable strength in smartphones and tablets. We also saw a seasonal increase in gaming, although lower than the levels we have seen in the past few years.”

Selected financial information for the second quarter 2012, excluding the loss contingency accrual, is as follows:

  • Net Sales: $687 million, up 5% from $655 million in the prior quarter, and flat with $688 million in the second quarter of 2011
  • Adjusted Gross Margin: 17%, compared to 16% in the prior quarter, and 19% in the second quarter of 2011
  • Adjusted Net Income: $33 million, up from $12 million in the prior quarter, and up from $14 million in the second quarter of 2011
  • Adjusted Earnings Per Diluted Share: $0.15, up from $0.06 in the prior quarter, and up from $0.07 in the second quarter of 2011

The adjusted items presented above are non-GAAP measures. Selected operating data for the second quarter 2012, and a reconciliation of the non-GAAP measures presented above to the comparable GAAP measures, is included in a section below before the financial statements.

“Capital additions were $149 million during the second quarter, primarily in support of specific business for customers in smartphones and tablets,” said Joanne Solomon, Amkor's executive vice president and chief financial officer. “This was about $50 million below our guidance as we saw some delays in the demand forecasts from several of our major customers that sell into smartphones and tablets.”

Amkor's Board of Directors previously authorized $300 million for the repurchase of our common stock. During the second quarter 2012 the company repurchased 7.1 million shares at a purchase price of $33.2 million, for a total of 36.7 million shares at a purchase price of $166.6 million since the program commenced.

Cash and cash equivalents were $351 million, and net debt was $1.0 billion, at June 30, 2012.

Business Outlook

“We expect to see sequential third quarter sales growth of 2% to 9% driven by a seasonal increase in gaming, solid demand for communications, and a continuing recovery in the networking sector,” said Joyce. “Our growth in the third quarter is somewhat slower than anticipated due to worldwide macroeconomic uncertainties, the delay in the ramp of 28 nanometer wafer supply and the softness in end market demand by the less dominant OEMs that sell smartphones and tablets.”

“In light of these developments, we are lowering our full year 2012 capital additions expectations to around $500 million (excluding $100 million for the acquisition of land relating to our previously announced new factory and R&D center in Incheon, South Korea). Our capital additions for the first half of 2012 totaled $273 million, and we are estimating capital additions of around $150 million for the third quarter 2012, although some of that spending could move to the fourth quarter if the ramp of 28 nanometer wafer supply is pushed out,” continued Joyce.

1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
ICScape: At the Junction of Math & CS, EDA & IP
Peggy AycinenaIP Showcase
by Peggy Aycinena
Arm Momentum: Segars embraces exciting times
More Editorial  
Jobs
Senior SW Developer for EDA Careers at San Jose, CA
REVISED***Director Product Line RF/IC for EDA Careers at San Jose, CA
Technical Support Engineer EU/Germany/UK for EDA Careers at N/A, Germany
Upcoming Events
“Empowering Leadership with WIT and WISDOM” at SEMI 673 South Milpitas Blvd. Milpitas CA - Nov 28, 2017
Artificial Intelligence and Convolution Neural Networks Discussion at San Jose State University Student Union Theater San Jose CA - Dec 4, 2017
Silicon Valley's Only Comprehensive Embedded Systems Conference at San Jose Convention Center 150 W. San Carlos St. San Jose CA - Dec 5 - 7, 2017
Oski Technology’s Decoding Formal Club Meeting at The Conference Center San Jose CA - Dec 7, 2017
DownStream: Solutions for Post Processing PCB Designs
TrueCircuits: IoTPLL



Internet Business Systems © 2017 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 TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise