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Business Wire
28-07-2025
- Business
- Business Wire
Amkor Technology Reports Financial Results for the Second Quarter 2025
TEMPE, Ariz.--(BUSINESS WIRE)--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, 2025. Second Quarter 2025 Highlights Net sales $1.51 billion Gross profit $182 million, operating income $92 million Net income $54 million, earnings per diluted share $0.22 EBITDA $259 million 'We delivered second quarter revenue of $1.51 billion, up 14% sequentially and above the high end of guidance, with double-digit growth across all end markets,' said Giel Rutten, Amkor's president and chief executive officer. 'Amkor is strengthening its strategic presence in AI, HPC, and other technologies reshaping the industry. Our strong customer relationships and broad geographic footprint make us an ideal partner to deliver next-generation solutions.' Quarterly Financial Results (1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under 'Selected Operating Data.' (2) During the three months ended June 30, 2025, our results include a $32 million net benefit to operating income and EBITDA due to a contingency payment related to our acquisition of Nanium in May 2017. Net income and earnings per diluted share also include a $16 million and $0.07 benefit, respectively. At June 30, 2025, total cash and short-term investments was $2.0 billion, and total debt was $1.6 billion. In July 2025 the company will repay a total of $223 million in debt. The company paid a quarterly dividend of $0.08269 per share on June 25, 2025. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors. Business Outlook The following information presents Amkor's guidance for the third quarter 2025 (unless otherwise noted): Net sales of $1.875 billion to $1.975 billion Gross margin of 13.0% to 14.5% Net income of $85 million to $120 million, or $0.34 to $0.48 per diluted share Full year 2025 capital expenditures of approximately $850 million Conference Call Information Amkor will conduct a conference call on Monday, July 28, 2025, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor's website, located at The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337. About Amkor Technology, Inc. Amkor Technology, Inc. (Nasdaq: AMKR) is the world's largest U.S. headquartered OSAT and is a global leader in outsourced semiconductor packaging and test services. With a strong track record of innovation, a broad and diverse geographic footprint and solid partnerships with lead customers, Amkor delivers high-quality solutions that enable the world's leading semiconductor and electronics companies to bring advanced technologies to market. The company's comprehensive portfolio includes advanced packaging, wafer-level processing, and system-in-package solutions targeting applications for smartphones, data centers, artificial intelligence, automobiles and wearables. For more information visit (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream products include all other wirebond packaging and related test services. Expand In this press release, we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, and our ability to service debt, fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income. AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 1,511,392 $ 1,461,474 $ 2,832,967 $ 2,826,985 Cost of sales 1,329,495 1,249,099 2,493,487 2,412,967 Gross profit 181,897 212,375 339,480 414,018 Selling, general and administrative 47,922 91,280 128,330 181,626 Research and development 42,008 39,568 87,660 77,739 Total operating expenses 89,930 130,848 215,990 259,365 Operating income 91,967 81,527 123,490 154,653 Interest expense 16,810 15,805 33,619 32,244 Other (income) expense, net (8,057 ) (15,848 ) (19,132 ) (31,143 ) Total other expense, net 8,753 (43 ) 14,487 1,101 Income before taxes 83,214 81,570 109,003 153,552 Income tax expense 28,162 14,312 32,098 26,508 Net income 55,052 67,258 76,905 127,044 Net income attributable to non-controlling interests (635 ) (361 ) (1,360 ) (1,250 ) Net income attributable to Amkor $ 54,417 $ 66,897 $ 75,545 $ 125,794 Net income attributable to Amkor per common share: Shares used in computing per common share amounts: Basic 247,090 246,228 246,973 246,118 Expand AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,527,384 $ 1,133,553 Short-term investments 516,430 512,984 Accounts receivable, net of allowances 1,125,586 1,055,013 Inventories 375,249 310,910 Other current assets 79,994 61,012 Total current assets 3,624,643 3,073,472 Property, plant and equipment, net 3,802,045 3,576,148 Operating lease right of use assets 98,415 109,730 Goodwill 19,588 17,947 Restricted cash 755 759 Other assets 160,180 166,272 Total assets $ 7,705,626 $ 6,944,328 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 374,855 $ 236,029 Trade accounts payable 760,108 712,887 Capital expenditures payable 411,703 123,195 Short-term operating lease liability 24,896 26,827 Accrued expenses 344,100 356,337 Total current liabilities 1,915,662 1,455,275 Long-term debt 1,198,190 923,431 Pension and severance obligations 81,936 70,594 Long-term operating lease liabilities 51,599 57,983 Other non-current liabilities 226,165 253,880 Total liabilities 3,473,552 2,761,163 Stockholders' equity: Preferred stock — — Common stock 294 293 Additional paid-in capital 2,041,548 2,031,643 Retained earnings 2,369,797 2,335,132 Accumulated other comprehensive income (loss) 12,299 7,510 Treasury stock (226,514 ) (225,033 ) Total Amkor stockholders' equity 4,197,424 4,149,545 Non-controlling interests in subsidiaries 34,650 33,620 Total equity 4,232,074 4,183,165 Total liabilities and equity $ 7,705,626 $ 6,944,328 Expand AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income $ 76,905 $ 127,044 Depreciation and amortization 312,663 294,874 Other operating activities and non-cash items 1,312 17,966 Changes in assets and liabilities (108,268 ) (52,816 ) Net cash provided by operating activities 282,612 387,068 Cash flows from investing activities: Payments for property, plant and equipment (226,086 ) (262,543 ) Proceeds from sale of property, plant and equipment 4,762 4,813 Proceeds from foreign exchange forward contracts 41,920 5,088 Payments for foreign exchange forward contracts (28,967 ) (43,091 ) Payments for short-term investments (331,393 ) (279,526 ) Proceeds from sale of short-term investments 76,021 30,914 Proceeds from maturities of short-term investments 256,266 263,932 Other investing activities 1,680 5,354 Net cash used in investing activities (205,797 ) (275,059 ) Cash flows from financing activities: Proceeds from short-term debt — 5,012 Payments of short-term debt — (8,055 ) Proceeds from long-term debt 500,000 58,727 Payments of long-term debt (112,163 ) (116,921 ) Payments of finance lease obligations (30,627 ) (38,678 ) Payments of dividends (40,860 ) (38,778 ) Other financing activities (8,130 ) 216 Net cash provided by (used in) financing activities 308,220 (138,477 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash 8,792 (13,724 ) Net increase (decrease) in cash, cash equivalents and restricted cash 393,827 (40,192 ) Cash, cash equivalents and restricted cash, beginning of period 1,134,312 1,120,617 Cash, cash equivalents and restricted cash, end of period $ 1,528,139 $ 1,080,425 Expand Forward-Looking Statement Disclaimer This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as 'may,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' 'potential,' 'continue' or 'intend,' by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following: dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions; changes in costs, quality, availability and delivery times of raw materials, components and equipment; fluctuations in operating results and cash flows; competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries and contract manufacturers; our substantial investments in equipment and facilities to support the demand of our customers; warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business; difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs; our absence of backlog and the short-term nature of our customers' commitments; the historical downward pressure on the prices of our packaging and test services; fluctuations in our manufacturing yields; a downturn or lower sales to customers in the automotive industry; dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive; difficulty funding our liquidity needs; challenges with integrating diverse operations; dependence on international factories and operations and risks relating to trade restrictions and regional conflict, including restrictive trade barriers, export controls, tariffs, customs and duties; our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies; our continuing development and implementation of changes to, and maintenance and security of, our information technology systems; restrictive covenants in the indentures and agreements governing our current and future indebtedness; our substantial indebtedness; fluctuations in interest rates and changes in credit risk; the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval; the possibility that we may decrease or suspend our quarterly dividend; difficulty attracting, retaining or replacing qualified personnel; maintaining an effective system of internal controls; any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets; environmental, health and safety liabilities and expenditures; conditions and obligations in connection with the receipt of government awards and incentives; and natural disasters and other calamities, health conditions or pandemics, political instability, hostilities or other disruptions. 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, 2024 (the 'Form 10-K') and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission ('SEC'). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law.
Business Wire
29-04-2025
- Business
- Business Wire
Amkor Technology Reports Financial Results for the First Quarter 2025
TEMPE, Ariz.--(BUSINESS WIRE)--Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights Net sales $1.32 billion Gross profit $158 million, operating income $32 million Net income $21 million, earnings per diluted share $0.09 EBITDA $197 million 'Amkor delivered first quarter results in line with expectations, with revenue of $1.32 billion and EPS of $0.09,' said Giel Rutten, Amkor's president and chief executive officer. 'We are closely monitoring the evolving landscape with tariffs and trade regulations and potential impacts on our customers' supply chains. Our diversified global footprint and long-standing partnerships allow us to help our customers work through complexity and uncertainty. Within this dynamic environment, our focus remains on staying agile and delivering value by executing on our long-term strategy.' Quarterly Financial Results (1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under 'Selected Operating Data.' At March 31, 2025, total cash and short-term investments was $1.6 billion, and total debt was $1.1 billion. The company paid a quarterly dividend of $0.08269 per share on April 2, 2025. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors. Business Outlook The following information presents Amkor's guidance for the second quarter 2025 (unless otherwise noted): Net sales of $1.375 billion to $1.475 billion Gross margin of 11.5% to 13.5% Net income of $17 million to $57 million, or $0.07 to $0.23 per diluted share Full year 2025 capital expenditures of approximately $850 million Conference Call Information Amkor will conduct a conference call on Monday, April 28, 2025, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor's website, located at The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337. About Amkor Technology, Inc. Amkor Technology, Inc. is the world's largest U.S. headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, computing, automotive and industrial and consumer markets, including smartphones, data centers, artificial intelligence, electric vehicles and wearables. Amkor's operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream products include all other wirebond packaging and related test services. Expand AMKOR TECHNOLOGY, INC. Selected Operating Data Expand In this press release, we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, and our ability to service debt, fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income. AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended March 31, 2025 2024 Net sales $ 1,321,575 $ 1,365,511 Cost of sales 1,163,992 1,163,868 Gross profit 157,583 201,643 Selling, general and administrative 80,408 90,346 Research and development 45,652 38,171 Total operating expenses 126,060 128,517 Operating income 31,523 73,126 Interest expense 16,809 16,439 Other (income) expense, net (11,075 ) (15,295 ) Total other expense, net 5,734 1,144 Income before taxes 25,789 71,982 Income tax expense 3,936 12,196 Net income 21,853 59,786 Net income attributable to non-controlling interests (725 ) (889 ) Net income attributable to Amkor $ 21,128 $ 58,897 Net income attributable to Amkor per common share: Basic $ 0.09 $ 0.24 Diluted $ 0.09 $ 0.24 Shares used in computing per common share amounts: Basic 246,854 246,008 Diluted 247,845 247,614 Expand AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 31, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,057,560 $ 1,133,553 Short-term investments 505,181 512,984 Accounts receivable, net of allowances 1,052,873 1,055,013 Inventories 326,185 310,910 Other current assets 49,325 61,012 Total current assets 2,991,124 3,073,472 Property, plant and equipment, net 3,641,936 3,576,148 Operating lease right of use assets 104,160 109,730 Goodwill 18,813 17,947 Restricted cash 768 759 Other assets 164,440 166,272 Total assets $ 6,921,241 $ 6,944,328 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 236,459 $ 236,029 Trade accounts payable 608,464 712,887 Capital expenditures payable 250,718 123,195 Short-term operating lease liability 25,604 26,827 Accrued expenses 332,731 356,337 Total current liabilities 1,453,976 1,455,275 Long-term debt 912,863 923,431 Pension and severance obligations 73,421 70,594 Long-term operating lease liabilities 54,535 57,983 Other non-current liabilities 235,856 253,880 Total liabilities 2,730,651 2,761,163 Stockholders' equity: Preferred stock — — Common stock 293 293 Additional paid-in capital 2,036,608 2,031,643 Retained earnings 2,335,830 2,335,132 Accumulated other comprehensive income (loss) 10,031 7,510 Treasury stock (226,352 ) (225,033 ) Total Amkor stockholders' equity 4,156,410 4,149,545 Non-controlling interests in subsidiaries 34,180 33,620 Total equity 4,190,590 4,183,165 Total liabilities and equity $ 6,921,241 $ 6,944,328 Expand AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income $ 21,853 $ 59,786 Depreciation and amortization 153,821 144,925 Other operating activities and non-cash items 5,967 14,100 Changes in assets and liabilities (157,492 ) (56,499 ) Net cash provided by operating activities 24,149 162,312 Cash flows from investing activities: Payments for property, plant and equipment (79,897 ) (96,169 ) Proceeds from sale of property, plant and equipment 4,209 3,439 Proceeds from foreign exchange forward contracts 16,674 740 Payments for foreign exchange forward contracts (15,992 ) (24,596 ) Payments for short-term investments (169,720 ) (111,760 ) Proceeds from sale of short-term investments 32,345 16,014 Proceeds from maturities of short-term investments 147,825 121,684 Other investing activities 1,502 4,545 Net cash used in investing activities (63,054 ) (86,103 ) Cash flows from financing activities: Proceeds from short-term debt — 5,012 Payments of short-term debt — (5,669 ) Payments of long-term debt (25,493 ) (29,100 ) Payments of finance lease obligations (15,659 ) (19,684 ) Payments of dividends — (19,383 ) Other financing activities (1,099 ) (1,053 ) Net cash used in financing activities (42,251 ) (69,877 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash 5,172 (8,164 ) Net decrease in cash, cash equivalents and restricted cash (75,984 ) (1,832 ) Cash, cash equivalents and restricted cash, beginning of period 1,134,312 1,120,617 Cash, cash equivalents and restricted cash, end of period $ 1,058,328 $ 1,118,785 Expand Forward-Looking Statement Disclaimer This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as 'may,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' 'potential,' 'continue' or 'intend,' by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following: dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions; changes in costs, quality, availability and delivery times of raw materials, components and equipment; fluctuations in operating results and cash flows; competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries and contract manufacturers; our substantial investments in equipment and facilities to support the demand of our customers; warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business; difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs; our absence of backlog and the short-term nature of our customers' commitments; the historical downward pressure on the prices of our packaging and test services; fluctuations in our manufacturing yields; a downturn or lower sales to customers in the automotive industry; dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive; difficulty funding our liquidity needs; challenges with integrating diverse operations; dependence on international factories and operations and risks relating to trade restrictions and regional conflict, including restrictive trade barriers, export controls, tariffs, customs and duties; our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies; our continuing development and implementation of changes to, and maintenance and security of, our information technology systems; restrictive covenants in the indentures and agreements governing our current and future indebtedness; our substantial indebtedness; fluctuations in interest rates and changes in credit risk; the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval; the possibility that we may decrease or suspend our quarterly dividend; difficulty attracting, retaining or replacing qualified personnel; maintaining an effective system of internal controls; any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets; environmental, health and safety liabilities and expenditures; conditions and obligations in connection with the receipt of government awards and incentives; and natural disasters and other calamities, health conditions or pandemics, political instability, hostilities or other disruptions. 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, 2024 (the 'Form 10-K') and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission ('SEC'). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law.
Yahoo
29-04-2025
- Business
- Yahoo
Amkor Technology Inc (AMKR) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $1.32 billion in Q1, a 3% year-on-year decline. EPS: $0.09, impacted by higher R&D costs. Communications Revenue: Decreased 19% year on year. Computing Revenue: Increased 21% year on year. Automotive and Industrial Revenue: Declined 6% year on year. Consumer Revenue: Increased 23% year on year. Gross Profit: $158 million. Gross Margin: 11.9%. Operating Expenses: $126 million, higher due to increased R&D. Operating Income: $32 million, or 2.4% of sales. Net Income: $21 million. EBITDA: $197 million, with a margin of 14.9%. Cash and Short-term Investments: $1.56 billion. Total Debt: $1.15 billion. Debt-to-EBITDA Ratio: 1.1 times. Q2 Revenue Outlook: Between $1.375 billion and $1.475 billion. Q2 Gross Margin Outlook: Between 11.5% and 13.5%. Q2 Net Income Outlook: Between $17 million and $57 million. Q2 EPS Outlook: Between $0.07 and $0.23. 2025 CapEx Forecast: $850 million. Warning! GuruFocus has detected 4 Warning Sign with AMKR. Release Date: April 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Amkor Technology Inc (NASDAQ:AMKR) delivered first-quarter revenue of $1.32 billion, which was at the upper end of their guidance. The company experienced stronger-than-expected performance in the communications segment, contributing to the positive revenue outcome. Amkor Technology Inc (NASDAQ:AMKR) is expanding its geographic footprint, with plans to begin construction of a new facility in Arizona in the second half of 2025. The company is investing in advanced packaging and test solutions, including RDL and co-packaged optics, to support high-performance computing and AI innovations. Amkor Technology Inc (NASDAQ:AMKR) maintains a strong balance sheet with $1.56 billion in cash and short-term investments, providing flexibility for strategic investments and shareholder returns. First-quarter revenue reflected a 3% year-on-year decline, with a 19% decrease in the communications end market due to lower revenue within the iOS ecosystem. Gross margin was lower sequentially and year over year at 11.9%, impacted by lower volumes and factory utilization in the low 50s. Operating expenses were higher than expected at $126 million, primarily due to increased R&D costs associated with new technology development. The automotive and industrial end markets are still recovering from weak demand and elevated inventory levels, impacting growth potential. The company faces uncertainties related to tariffs, trade regulations, and export controls, which could affect demand and customer supply chains. Q: Can you provide some color on why Q1 was better than expected and your thoughts on Q2, especially regarding potential impacts from tariffs? A: Giel Rutten, CEO: In Q1, we saw strength in our communication business, with other segments performing as expected. For Q2, we anticipate growth in both communication and computing sectors, driven by data center, PC, and networking applications. We don't see the Q2 strength as market pull-ins due to tariffs; rather, it's part of our normal management structure. Q: Given the recent tariff news, any thoughts on continuing expansion in Vietnam and maintaining the $850 million CapEx? A: Giel Rutten, CEO: We don't foresee significant changes to our CapEx plan, although we remain flexible. Most investments are for capacity and capabilities, particularly in high-performance computing. We are monitoring the situation closely and will adjust if necessary. Q: Should the Communications segment perform better than seasonal in the second half due to the new socket win? A: Giel Rutten, CEO: The fundamentals for the second half remain unchanged, with critical programs in line with expectations. However, trade restrictions and macroeconomic factors could impact volumes. We are confident in our market position in both iOS and Android ecosystems. Q: How are you viewing the opportunity with TSMC's expansion in the US, and could this accelerate your Arizona plans? A: Giel Rutten, CEO: TSMC's expansion is an opportunity for Amkor. We are evaluating our technology portfolio for Arizona and considering accelerating and scaling up faster than initially planned to meet increasing demand. Q: Can you clarify the impact of the RDL-based opportunity and its revenue generation timeline? A: Giel Rutten, CEO: We have one RDL device in production and multiple others in qualification. Investments will start generating revenue this year, with equipment being fungible across applications, allowing for high utilization. Q: How should we think about the year's potential and the linearity of revenue? A: Megan Faust, CFO: Our first half has been better than expected, moderating the first-half, second-half magnitude discussed last quarter. While we aren't providing full-year guidance, the fundamentals for second-half growth remain intact, driven by communications, compute programs, automotive strength, and consumer wearables. Q: Regarding the computing segment, given export controls, should we expect this segment to be flat or decline this year? A: Giel Rutten, CEO: We are ramping up with a second customer in 2.5D and continuing with our prime customer at lower volumes. We expect strength in the second half, with multiple devices in qualification and diversification beyond a single GPU device. Q: How do you expect AI going to the edge to impact unit growth in handsets this year? A: Giel Rutten, CEO: AI is expected to enter the smartphone segment through the premium tier, which is beneficial for Amkor. While it will drive innovation, predicting upside this year is challenging due to market uncertainties. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Yahoo
04-04-2025
- Business
- Yahoo
Q4 Earnings Highs And Lows: Amkor (NASDAQ:AMKR) Vs The Rest Of The Semiconductor Manufacturing Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Amkor (NASDAQ:AMKR) and the rest of the semiconductor manufacturing stocks fared in Q4. The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. The 14 semiconductor manufacturing stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 1.6% while next quarter's revenue guidance was 1.8% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 24.7% since the latest earnings results. Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. Amkor reported revenues of $1.63 billion, down 7% year on year. This print fell short of analysts' expectations by 2.1%, but it was still a satisfactory quarter for the company with a solid beat of analysts' EPS estimates but an increase in its inventory levels. 'In 2024, weakness in the automotive and industrial and communications end markets contributed to a full year decline. In contrast, we achieved record revenue in our computing end market with growth in ARM-based PCs and AI devices,' said Giel Rutten, Amkor's president and chief executive officer. Amkor delivered the weakest performance against analyst estimates of the whole group. The stock is down 34.9% since reporting and currently trades at $15.85. Is now the time to buy Amkor? Access our full analysis of the earnings results here, it's free. Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices Kulicke and Soffa reported revenues of $166.1 million, down 3% year on year, outperforming analysts' expectations by 0.7%. The business had a very strong quarter with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 30.9% since reporting. It currently trades at $29.97. Is now the time to buy Kulicke and Soffa? Access our full analysis of the earnings results here, it's free. With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors. FormFactor reported revenues of $189.5 million, up 12.7% year on year, in line with analysts' expectations. It was a softer quarter as it posted a significant miss of analysts' adjusted operating income and EPS estimates. As expected, the stock is down 38.2% since the results and currently trades at $25.43. Read our full analysis of FormFactor's results here. Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials. IPG Photonics reported revenues of $234.3 million, down 21.6% year on year. This print topped analysts' expectations by 3.4%. It was a strong quarter as it also logged a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. IPG Photonics had the slowest revenue growth among its peers. The stock is down 18.3% since reporting and currently trades at $55. Read our full, actionable report on IPG Photonics here, it's free. Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos. Marvell Technology reported revenues of $1.82 billion, up 27.4% year on year. This number beat analysts' expectations by 1.2%. More broadly, it was a slower quarter as it logged revenue guidance for next quarter slightly missing analysts' expectations and an increase in its inventory levels. The stock is down 38.4% since reporting and currently trades at $55.59. Read our full, actionable report on Marvell Technology here, it's free. 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10-02-2025
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Amkor (NASDAQ:AMKR) Misses Q4 Analysts' Revenue Estimates, Stock Drops
Semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) fell short of the market's revenue expectations in Q4 CY2024, with sales falling 7% year on year to $1.63 billion. Next quarter's revenue guidance of $1.28 billion underwhelmed, coming in 14.1% below analysts' estimates. Its GAAP profit of $0.43 per share was 16.2% above analysts' consensus estimates. Is now the time to buy Amkor? Find out in our full research report. Revenue: $1.63 billion vs analyst estimates of $1.66 billion (7% year-on-year decline, 2.1% miss) EPS (GAAP): $0.43 vs analyst estimates of $0.37 (16.2% beat) Adjusted EBITDA: $302 million vs analyst estimates of $287.2 million (18.5% margin, 5.1% beat) Revenue Guidance for Q1 CY2025 is $1.28 billion at the midpoint, below analyst estimates of $1.48 billion EPS (GAAP) guidance for Q1 CY2025 is $0.09 at the midpoint, missing analyst estimates by 70.6% Operating Margin: 8.3%, in line with the same quarter last year Free Cash Flow Margin: 22%, up from 19.2% in the same quarter last year Inventory Days Outstanding: 20, in line with the previous quarter Market Capitalization: $6.00 billion 'In 2024, weakness in the automotive and industrial and communications end markets contributed to a full year decline. In contrast, we achieved record revenue in our computing end market with growth in ARM-based PCs and AI devices,' said Giel Rutten, Amkor's president and chief executive officer. Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Amkor's 9.3% annualized revenue growth over the last five years was decent. Its growth was slightly above the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Amkor's recent history marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.6% over the last two years. This quarter, Amkor missed Wall Street's estimates and reported a rather uninspiring 7% year-on-year revenue decline, generating $1.63 billion of revenue. Company management is currently guiding for a 6.6% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and implies its newer products and services will fuel better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Amkor's DIO came in at 20, which is 10 days below its five-year average. Flat versus last quarter, there's no indication of an excessive inventory buildup. We were impressed by how significantly Amkor blew past analysts' EPS expectations this quarter. On the other hand, its revenue guidance for next quarter missed significantly and its revenue fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 7.6% to $22.51 immediately following the results. Amkor underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
