Third Quarter 2012
- Net sales $695 million
- Gross margin 17%
- Net income $22 million
- Earnings per diluted share $0.11
CHANDLER, Ariz. — (BUSINESS WIRE) — October 25, 2012 — 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, 2012, with net sales of $695 million, net income of $22 million, and earnings per diluted share of $0.11.
"Solid demand for wireless communications in both packaging and test was the key driver of our business in the third quarter," said Ken Joyce, Amkor's president and chief executive officer. "Lower than anticipated supply of 28 nanometer wafers in the early part of the quarter and the overall weakness in the semiconductor market and general economy constrained our growth."
Selected financial information for the third quarter 2012, is as follows:
- Net Sales: $695 million, up 1% from $687 million in the prior quarter, and down 6% from $740 million in the third quarter of 2011
- Gross Margin: 17%, compared to adjusted gross margin of 17% in the prior quarter, and 17% in the third quarter of 2011
- Net Income: $22 million, down from adjusted net income of $33 million in the prior quarter, and down from $27 million in the third quarter of 2011
- Earnings Per Diluted Share: $0.11, down from adjusted earnings per diluted share of $0.15 in the prior quarter, and flat with $0.11 in the third quarter of 2011
The adjusted gross margin, adjusted net income and adjusted earnings per diluted share presented above for the second quarter 2012 are non-GAAP measures. Selected operating data for the third quarter 2012, and a reconciliation of the second quarter 2012 non-GAAP measures presented above to the comparable GAAP measures, are included in a section below before the financial statements.
“Capital additions were $173 million during the third quarter, primarily in support of customers in smartphones and tablets,” said Joanne Solomon, Amkor's executive vice president and chief financial officer. "We accelerated the purchase of some 28 nanometer test equipment to meet the ramp in demand for communications at the end of the quarter. Capital additions for the year are expected to remain around $500 million as we continue to support the growing demand for communications in the fourth quarter and beyond."
Amkor's Board of Directors previously authorized $300 million for the repurchase of our common stock. During the third quarter 2012 the company repurchased 8.3 million shares at a purchase price of $41.8 million, for a total of 45.0 million shares at a purchase price of $208.4 million since the program commenced.
“We took advantage of favorable conditions in the capital markets to refinance certain debt of our subsidiaries,” continued Solomon. “Our new 10-year note extends our maturities and mitigates future refinancing and liquidity risks.”
Cash and cash equivalents were $549 million, and net debt was $1.1 billion, at September 30, 2012.
Business Outlook
Based upon currently available information, we have the following expectations for the fourth quarter 2012:
- Net sales of $675 million to $725 million, down 3% to up 4% from the prior quarter
- Gross margin of 16% to 19%
- Net income of $11 million to $35 million, or $0.07 to $0.16 per diluted share
- Capital additions of around $50 million for the fourth quarter, and around $500 million for the full year (excluding $100 million for the acquisition of land relating to our previously announced new factory and R&D center in Incheon, South Korea)
“We expect solid growth in wireless communications in the fourth quarter of 2012 as our investment in this market continues to gain momentum,” noted Joyce. “The anticipated growth in communications during the quarter is expected to offset the general softening in demand we see in the other end markets due to the weak and uncertain macroeconomic environment and the normal seasonal decline in gaming."
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