Amkor Technology Reports Financial Results for the Third Quarter 2019

Third Quarter Highlights

  • Third quarter net sales $1,084 million, up 21% sequentially
  • Operating income $79 million
  • Net income $54 million, earnings per diluted share $0.23
  • EBITDA $209 million

TEMPE, Ariz. — (BUSINESS WIRE) — October 28, 2019 — Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the third quarter ended September 30, 2019.

"Sequential revenue growth of 21% drove financial results above the high end of guidance," said Steve Kelley, Amkor's president and chief executive officer. "Demand was particularly strong for our advanced packaging technologies."

Results

 

Q3 2019

 

Q2 2019

 

Q3 2018

 

 

($ in millions, except per share data)

Net sales

 

$1,084

 

$895

 

$1,144

Gross margin

 

16.8%

 

13.8%

 

17.5%

Operating income

 

$79

 

$23

 

$93

Net income attributable to Amkor (1)

 

$54

 

($9)

 

$57

Earnings per diluted share (1)

 

$0.23

 

($0.04)

 

$0.24

EBITDA (2)

 

$209

 

$149

 

$235

(1) Q2 2019 net income includes an $8 million charge, or $0.03 per share, related to the early redemption of $525 million of senior notes due 2022.

(2) EBITDA is a non-U.S. GAAP measure. The reconciliation to the comparable U.S. GAAP measure is included below under "Selected Operating Data."

"Operating margin, earnings per share and EBITDA all showed meaningful sequential improvement in the third quarter," said Megan Faust, Amkor's corporate vice president and chief financial officer. "Based on our solid business outlook for the fourth quarter, we expect to deliver a fifth consecutive year of positive free cash flow."

At September 30, 2019, cash and cash equivalents were $600 million, and total debt was $1.3 billion.

Business Outlook

"We expect revenue of about $1.1 billion in the fourth quarter, reflecting continued healthy demand for Amkor's advanced packages," said Kelley.

Fourth quarter 2019 outlook:

  • Net sales of $1.05 billion to $1.14 billion
  • Gross margin of 15% to 18%
  • Net income of $26 million to $78 million, or $0.11 to $0.32 per diluted share
  • Full year 2019 capital expenditures of approximately $475 million

Conference Call Information

Amkor will conduct a conference call on Monday, October 28, 2019, 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 4599721). 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 Technology, Inc.

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 300 of the world's leading semiconductor companies, foundries and electronics OEMs. Amkor's operational base includes 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

 

 

Q3 2019

 

Q2 2019

 

Q3 2018

Net Sales Data:

 

 

 

 

 

Net sales (in millions):

 

 

 

 

 

Advanced products (1)

$

589

 

$

433

 

$

582

Mainstream products (2)

495

 

462

 

562

Total net sales

$

1,084

 

$

895

 

$

1,144

 

 

 

 

 

 

Packaging services

84

%

 

83

%

 

84

%

Test services

16

%

 

17

%

 

16

%

 

 

 

 

 

 

Net sales from top ten customers

62

%

 

62

%

 

62

%

 

 

 

 

 

 

End Market Data:

 

 

 

 

 

Communications (handheld devices, smartphones, tablets)

41

%

 

37

%

 

47

%

Automotive, industrial and other (driver assist, infotainment, performance, safety)

26

%

 

29

%

 

25

%

Computing (datacenter, infrastructure, PC/laptop, storage)

15

%

 

19

%

 

17

%

Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)

18

%

 

15

%

 

11

%

Total

100

%

 

100

%

 

100

%

 

 

 

 

 

 

Gross Margin Data:

 

 

 

 

 

Net sales

100.0

%

 

100.0

%

 

100.0

%

Cost of sales:

 

 

 

 

 

Materials

40.4

%

 

38.0

%

 

40.3

%

Labor

15.8

%

 

17.4

%

 

15.1

%

Other manufacturing

27.0

%

 

30.8

%

 

27.1

%

Gross margin

16.8

%

 

13.8

%

 

17.5

%

 

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