Third Quarter Highlights
- Net sales $1,135 million, up 15% sequentially
- Gross margin 19.1%
- Net income $54 million, earnings per diluted share $0.23
- EBITDA $243 million
- Redemption of $200 million of Senior Notes due 2021, with annualized interest savings of approximately $13 million
Amkor Technology, Inc., a leading provider of semiconductor packaging and test services, announced financial results for the third quarter ended September 30, 2017.
“We achieved record sales in the third quarter, up 15% sequentially and 5% year-over-year,” said Steve Kelley, Amkor’s president and chief executive officer. “Demand was strong in nearly all end markets, and our factories executed well.”
| Results | Q3 2017 | Q2 2017 | Q3 2016 | ||
| ($ in millions, except per share data) | |||||
| Net sales | $1,135 | $989 | $1,086 | ||
| Gross margin | 19.1% | 17.4% | 19.7% | ||
| Net income attributable to Amkor | $54 | $116 | $60 | ||
| Earnings per diluted share | $0.23 | $0.48 | $0.25 | ||
| EBITDA** | $243 | $316 | $249 | ||
| Net cash provided by operating activities | $214 | $97 | $219 | ||
| Free cash flow** | $74 | $43 | $106 | ||
**EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.”
“As part of our 2017 Japan factory consolidation plan, we incurred approximately $10 million of one-time costs in the third quarter,” said Megan Faust, Amkor’s corporate vice president and chief financial officer. “After completion of the plan in the fourth quarter, we expect annualized savings from this initiative of around $30 million, including a $25 million reduction in manufacturing costs.”
“Our focus on CapEx discipline has driven improved free cash flow,” added Faust. “During the quarter we redeemed $200 million of the outstanding $400 million of our Senior Notes due 2021 using cash on hand. This will result in annualized pre-tax interest savings of approximately $13 million.”
Cash and cash equivalents were $519 million and total debt was $1.4 billion, at September 30, 2017.
Business Outlook
“We expect solid fourth quarter demand in mobile communications and our other end markets, leading to another year of record sales for Amkor,” said Kelley.
Fourth quarter and full year 2017 outlook:
Fourth quarter
- Net sales of $1.05 billion to $1.13 billion
- Gross margin of 17% to 18.5%
- Net income of $34 million to $54 million, or $0.14 to $0.23 per share
Full year
- Net sales of approximately $4.13 billion
- Gross margin of approximately 17.5%
- Net income of approximately $205 million, or around $0.85 per share (including an after tax gain of $0.34 per share from sale of K1 factory in Korea)
- Full year capital expenditures of approximately $550 million
Conference Call Information
Amkor will conduct a conference call on Monday, October 30, 2017, 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 98894733). 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).
For more information, visit www.amkor.com.
