First Quarter 2014
- Net sales $696 million
- Gross margin 18.5%
- Net income $21 million
- Earnings per diluted share $0.09
CHANDLER, Ariz. — (BUSINESS WIRE) — April 28, 2014 — 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, 2014, with net sales of $696 million, net income of $21 million, and earnings per diluted share of $0.09.
“First quarter results were stronger than we anticipated, driven by incremental demand for advanced packages,” said Steve Kelley, Amkor's president and chief executive officer. “We made solid progress in winning key mobile device opportunities, expanding our customer base and driving improved profitability.”
Selected financial information for the first quarter 2014 is as follows:
- Net Sales: $696 million, down 8% from $755 million in the prior quarter, and up 1% from $688 million in the first quarter of 2013
- Gross Margin: 18.5%, compared to 19.9% in the prior quarter, and 16.7% in the first quarter of 2013
- Net Income: $21 million, compared to $41 million in the prior quarter, and $13 million in the first quarter of 2013
- Earnings Per Diluted Share: $0.09, compared to $0.18 in the prior quarter, and $0.07 in the first quarter of 2013
“Our gross margin improved 180 basis points and earnings per share increased 29% over the first quarter 2013 primarily due to improved capacity utilization and lower cost of goods sold,” said Joanne Solomon, Amkor's executive vice president and chief financial officer.
Cash and cash equivalents were $629 million, and total debt was $1.7 billion, at March 31, 2014. In April, we reduced our debt by $116 million and improved our leverage with the conversion of the remaining $56 million of our convertible notes into common stock and the prepayment of $60 million of our foreign debt.
“Driven by stronger customer forecasts for mobile devices and continued momentum from our growth initiatives, our expectations for the second quarter and full year 2014 have improved considerably,” noted Kelley. “Accordingly, we are raising our expectations for full year 2014 capital expenditures to around $575 million to capture these growth opportunities.”
Based upon currently available information, we have the following expectations for the second quarter 2014:
- Net sales of $735 million to $785 million, up 6% to 13% from the prior quarter
- Gross margin of 18% to 21%
- Net income of $18 million to $43 million, or $0.08 to $0.18 per diluted share
- Full year 2014 capital expenditures of around $575 million
Conference Call Information
Amkor will conduct a conference call on Monday, April 28, 2014, 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 1-866-225-8754 or 1-480-629-9819. A replay of the call will be made available at Amkor's website or by dialing 1-800-406-7325 or 1-303-590-3030 (access pass code #4679945). The webcast is also being distributed over Thomson Reuters' Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Reuters' individual investor center at www.companyboardroom.com or by visiting any of the investor sites in Thomson Reuters' Individual Investor Network. Institutional investors can access the call via Thomson Reuters' password-protected event management site, Street Events ( www.streetevents.com).
Amkor is a leading provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs. More information about Amkor is available from the company's filings with the Securities and Exchange Commission and at Amkor's website: www.amkor.com.
AMKOR TECHNOLOGY, INC.
Selected Operating Data