|By Business Wire||
|April 28, 2014 04:08 PM EDT||
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 $575 million
Conference Call Information
Amkor will conduct a conference call on Monday, April 28, 2014, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor's website: www.amkor.com. You may also access the call by dialing 1-866-225-8754 or 1-480-629-9819. A replay of the call will be made available at Amkor's website or by dialing 1-800-406-7325 or 1-303-590-3030 (access pass code #4679945). The webcast is also being distributed over Thomson Reuters' Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Reuters' individual investor center at www.companyboardroom.com or by visiting any of the investor sites in Thomson Reuters' Individual Investor Network. Institutional investors can access the call via Thomson Reuters' password-protected event management site, Street Events (www.streetevents.com).
Amkor is a leading provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs. More information about Amkor is available from the company's filings with the Securities and Exchange Commission and at Amkor's website: www.amkor.com.
AMKOR TECHNOLOGY, INC.
Selected Operating Data
Since the fourth quarter 2013, we have reported net sales data by the following categories: advanced products and mainstream products. We have also provided quarterly and annual net sales and packaged units for 2012 and 2013 under these revised net sales reporting categories at the Investor Relations section of our website at www.amkor.com.
|Q1 2014||Q4 2013||Q1 2013|
|Net Sales Data:|
|Net sales (in millions):|
|Total net sales||$||696||$||755||$||688|
|Net sales from top ten customers||60||%||63||%||63||%|
|Packaged units (in millions):|
|Total packaged units||3,867||4,077||2,301|
|End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers):|
Communications (handsets, tablets, handheld devices, wireless LAN)
Consumer (television, set top boxes, gaming, portable media, digital cameras)
Automotive, industrial and other (infotainment, safety, performance, comfort)
|Networking (servers, routers, switches)||10||%||11||%||10||%|
Computing (desk tops, PCs, hard disk drive, printers, peripherals, servers)
|Gross Margin Data:|
|Cost of sales:|
|Earnings per Share Data:|
|Net income attributable to Amkor - basic||$||20||$||41||$||13|
|Adjustment for dilutive securities on net income:|
|Interest on 6.0% convertible notes due 2014, net of tax||1||1||4|
|Net income attributable to Amkor - diluted||$||21||$||42||$||17|
|Weighted average shares outstanding - basic||216||216||152|
|Effect of dilutive securities:|
|6.0% convertible notes due 2014||19||19||83|
|Weighted average shares outstanding - diluted||235||235||235|
|Net income attributable to Amkor per common share:|
*Advanced products include flip chip and wafer-level processing and related test services
**Mainstream products include wirebond packaging and related test services and since July 1, 2013 include the results of our newly acquired power discrete business in Malaysia which has a high volume of units relative to revenue
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended
|(In thousands, except per share data)|
|Cost of sales||567,224||572,576|
|Selling, general and administrative||62,424||59,559|
|Research and development||21,045||14,306|
|Total operating expenses||83,469||73,865|
|Interest expense, related party||1,242||3,492|
|Other expense (income), net||36||(2,222||)|
|Total other expense, net||25,000||23,348|
|Income before taxes and equity in earnings of unconsolidated affiliate||20,351||17,740|
|Income tax expense||4,929||4,029|
|Income before equity in earnings of unconsolidated affiliate||15,422||13,711|
|Equity in earnings of J-Devices||5,761||55|
|Net income attributable to noncontrolling interests||(550||)||(384||)|
|Net income attributable to Amkor||$||20,633||$||13,382|
|Net income attributable to Amkor per common share:|
|Shares used in computing per common share amounts:|
AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
|Cash and cash equivalents||$||628,585||$||610,442|
|Accounts receivable, net of allowances||
|Other current assets||
|Total current assets||
|Property, plant and equipment, net||2,033,396||2,006,553|
|LIABILITIES AND EQUITY|
|Short-term borrowings and current portion of long-term debt||$||66,350||$||61,350|
|Trade accounts payable||416,789||365,334|
|Total current liabilities||741,697||690,936|
|Long-term debt, related party||75,000||75,000|
|Pension and severance obligations||168,020||165,073|
|Other non-current liabilities||16,010||14,959|
|Amkor stockholders’ equity:|
|Additional paid-in capital||1,813,940||1,812,530|
|Accumulated other comprehensive income (loss)||3,694||(255||)|
|Total Amkor stockholders’ equity||979,610||953,740|
|Noncontrolling interests in subsidiaries||11,750||11,200|
|Total liabilities and equity||$||3,503,339||$||3,427,298|
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended
|Cash flows from operating activities:|
|Depreciation and amortization||108,338||97,148|
|Other operating activities and non-cash items||(4,274||)||(840||)|
|Changes in assets and liabilities||6,699||(11,400||)|
Net cash provided by operating activities
|Cash flows from investing activities:|
|Purchases of property, plant and equipment||(95,999||)||(112,543||)|
|Proceeds from the sale of property, plant and equipment||726||24,614|
|Payments from J-Devices||—||8,843|
|Other investing activities||(266||)||(249||)|
|Net cash used in investing activities||(95,539||)||(79,335||)|
|Cash flows from financing activities:|
|Proceeds from issuance of long-term debt||80,000||33,000|
|Payments of long-term debt||(80,000||)||—|
|Payment of deferred consideration for an acquisition||(18,763||)||—|
|Proceeds from the issuance of stock through share-based compensation plans||438||—|
|Payments of tax withholding for restricted shares||(122||)||(90||)|
|Net cash (used in) provided by financing activities||(18,447||)||32,910|
|Effect of exchange rate fluctuations on cash and cash equivalents||183||1,405|
|Net increase in cash and cash equivalents||18,143||53,654|
|Cash and cash equivalents, beginning of period||610,442||413,048|
|Cash and cash equivalents, end of period||$||628,585||$||466,702|
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical fact are considered forward-looking statements including, without limitation, all of the statements made under "Business Outlook" above. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements, including, but not limited to, the following:
- the highly unpredictable nature and cyclicality of the semiconductor industry;
- timing and volume of orders relative to production capacity and the inability to achieve high capacity utilization rates, control costs and improve profitability;
- volatility of consumer demand, double booking by customers and deterioration in forecasts from our customers for products incorporating our semiconductor packages, including any slowdown in demand or changes in customer forecasts for smartphones or other mobile devices;
- delays, lower manufacturing yields and supply constraints relating to the ramp to high volume manufacturing of 20 nanometer wafers and related technologies;
- dependence on key customers and the impact of changes in our market share and prices for our services with those customers;
- the performance of our business, economic and market conditions, the cash needs and investment opportunities for the business, the need for additional capacity and facilities to service customer demand and the availability of cash flow from operations or financing;
- the effect of the global economy on credit markets, financial institutions, customers, suppliers and consumers, including the uncertain macroeconomic environment;
- the highly unpredictable nature and costs of litigation and other legal activities and the risk of adverse results of such matters, including the final outcome in the pending patent license litigation and the impact of other legal proceedings;
- the negative impact on economic growth resulting from the action or inaction of the U.S. government relating to federal income tax increases for individuals or corporations, the federal debt ceiling, the federal deficit and government spending restrictions or shutdowns;
- changes in tax rates and taxes as a result of changes in U.S. or foreign tax law, the jurisdictions in which our income is determined to be earned and taxed, the outcome of tax audits and tax ruling requests, our ability to realize deferred tax assets and the expiration of tax holidays;
- curtailment of outsourcing by our customers;
- our substantial indebtedness and restrictive covenants;
- failure to realize sufficient cash flow or access to other sources of liquidity to fund capital additions;
- the effects of an economic slowdown in China, the U.S. and other major economies worldwide;
- disruptions in our business or deficiencies in our controls resulting from the integration of newly acquired operations or the implementation and security of, and changes to, our enterprise resource planning, factory shop floor systems and other management information systems;
- economic effects of terrorist attacks, natural disasters and military conflict;
- competition, competitive pricing and declines in average selling prices;
- fluctuations in manufacturing yields;
- dependence on international operations and sales and exchange rate fluctuations;
- dependence on raw material and equipment suppliers and changes in raw material and precious metal costs;
- dependence on key personnel;
- enforcement of and compliance with intellectual property rights;
- environmental and other governmental regulations; and
- technological challenges.
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, 2013 and in the company's subsequent filings with the Securities and Exchange Commission made prior to or after the date hereof. Amkor undertakes no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 26, 2016 09:45 AM EDT Reads: 1,808
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 26, 2016 09:45 AM EDT
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Aug. 26, 2016 09:00 AM EDT Reads: 2,208
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 26, 2016 07:00 AM EDT Reads: 3,904
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 26, 2016 05:00 AM EDT Reads: 3,022
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Aug. 26, 2016 03:15 AM EDT Reads: 1,405
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Aug. 26, 2016 02:15 AM EDT Reads: 1,947
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 26, 2016 01:30 AM EDT Reads: 1,664
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Aug. 26, 2016 01:15 AM EDT Reads: 2,015
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 26, 2016 01:00 AM EDT Reads: 1,954
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 26, 2016 12:45 AM EDT Reads: 2,263
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 26, 2016 12:30 AM EDT Reads: 2,902
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Aug. 25, 2016 11:45 PM EDT Reads: 2,287
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Aug. 25, 2016 10:45 PM EDT Reads: 1,877
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 25, 2016 10:15 PM EDT Reads: 1,719