Amkor Technology Reports Financial Results for the Second Quarter 2018
Jul. 30, 2018
TEMPE, Ariz.--(BUSINESS WIRE)--Jul 30, 2018--Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the second quarter ended June 30, 2018.
"Second quarter results exceeded expectations, with sequential growth in net sales, operating margin and earnings per share," said Steve Kelley, Amkor's CEO. "Demand was higher across all of our end markets. Communications was especially strong."
"Net sales growth drove sequentially higher profits and EBITDA," said Megan Faust, Amkor’s CFO. "In addition, we are in the process of refinancing the remaining $200 million 6.625% Senior Notes due 2021 with proceeds from a recently completed foreign bank loan. This refinancing is expected to generate net annualized interest savings of approximately $11 million."
"We expect third quarter 2018 net sales to be about $1.14 billion, up 7% sequentially, primarily due to seasonal strength in the communications market," said Kelley.
Third quarter 2018 outlook (unless otherwise noted):Net sales of $1.10 billion to $1.18 billion Gross margin of 15% to 17% Net income of $28 million to $55 million, or $0.12 to $0.23 per diluted share Full year capital expenditures of approximately $600 million
Conference Call Information
Amkor will conduct a conference call on Monday, July 30, 2018, 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 5995127). 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 ).
About Amkor Technology, Inc.
Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test, and is now a strategic manufacturing partner for more than 250 of the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information, visit www.amkor.com.
In the press release above we provide EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, our ability to service debt and our ability to fund capital expenditures. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.
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