Amkor Technology, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Provides Earnings Guidance for the Third Quarter of 2016 and Effective Tax Rate Guidance for the Full Year of 2016
August 01, 2016 at 04:04 pm EDT
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Amkor Technology, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported net sales of USD 917,326,000 compared to USD 736,722,000 a year ago. Operating income was USD 30,542,000 compared to USD 38,643,000 a year ago. Income before taxes and equity in earnings of unconsolidated affiliate was USD 8,726,000 compared to USD 7,266,000 a year ago. Net income was USD 5,366,000 compared to USD 7,950,000 a year ago. Net income attributable to the company was USD 4,713,000 compared to USD 7,327,000 a year ago. Basic and diluted income per share attributable to the company was USD 0.02 compared to USD 0.03 a year ago. EBITDA was USD 168 million. Two major factors drove the strong performance: Android smartphone demand and the accelerated recovery of earthquake-damaged Kumamoto factory.
For the six months, the company reported net sales of USD 1,786,008,000 compared to USD 1,479,597,000 a year ago. Operating income was USD 52,636,000 compared to USD 92,622,000 a year ago. Income before taxes and equity in earnings of unconsolidated affiliate was USD 10,194,000 compared to USD 36,724,000 a year ago. Net income was USD 4,961,000 compared to USD 35,464,000 a year ago. Net income attributable to the company was USD 3,838,000 compared to USD 33,925,000 year ago. Diluted income per share attributable to the company was USD 0.02 compared to USD 0.14 a year ago. Net cash provided by operating activities was USD 273,199,000 compared to USD 228,281,000 a year ago. Payments for property, plant and equipment was USD 355,974,000 compared to USD 194,360,000 a year ago.
For the third quarter, the company expects net sales of USD 1.01 billion to USD 1.09 billion, up 10% to 19% from the prior quarter, gross margin of 16% to 20%, net income of USD 29 million to USD 65 million, or USD 0.12 to USD 0.28 per share. Revenues will increase around 15% sequentially, driven by the launch of mobile devices across multiple tiers. The company expects strong third quarter revenues to drive higher gross margin, earnings per share, EBITDA and positive free cash flow. The company expects effective tax rate to be around 30%.
For the full year 2016, capital expenditures is expected to be around USD 650 million, unchanged from previous forecast. The company expects interest expense to remain around USD 22 million for the rest of 2016. The company expects effective tax rate to be around 30%.
Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company is engaged in the outsourcing of semiconductor packaging and test services. It designs and develops packaging and test technologies focused on advanced packaging solutions, including artificial intelligence. Its packaging and test services are designed to meet application and chip-specific requirements, including: the required type of interconnect technology; size; thickness; and electrical, mechanical, and thermal performance. It provides turnkey packaging and test services including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test and drop shipment services. The Company offers services to integrated device manufacturers (IDMs), fabless semiconductor companies, original equipment manufacturers (OEMs) and contract foundries. It allows IDMs to outsource packaging and test services and focus their investments.
Amkor Technology, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Provides Earnings Guidance for the Third Quarter of 2016 and Effective Tax Rate Guidance for the Full Year of 2016
AMKOR TECHNOLOGY, INC. 
