Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Amkor Technology Reports Financial Results for the Second Quarter 2023 By: Amkor Technology, Inc. via Business Wire July 31, 2023 at 16:03 PM EDT 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, 2023. Second Quarter 2023 Highlights Net sales $1.46 billion Gross profit $187 million, operating income $76 million Net income $64 million, earnings per diluted share $0.26 EBITDA $245 million “Amkor’s second quarter performance was in line with our expectations, with demand for Advanced packaging solutions driving sequential growth in both the Computing and Consumer end markets,” said Giel Rutten, Amkor’s president and chief executive officer. “With our technology leadership and broad geographic footprint, Amkor is outperforming the industry and is well positioned to capitalize on the industry megatrends that we expect to propel growth beyond the current cycle.” Quarterly Financial Results ($ in millions, except per share data) Q2 2023 Q1 2023 Q2 2022 Net sales $1,458 $1,472 $1,505 Gross margin 12.8% 13.2% 16.6% Operating income $76 $69 $143 Operating income margin 5.2% 4.7% 9.5% Net income attributable to Amkor $64 $45 $125 Earnings per diluted share $0.26 $0.18 $0.51 EBITDA (1) $245 $229 $302 (1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under “Selected Operating Data.” At June 30, 2023, total cash and short-term investments was $1.2 billion, and total debt was $1.1 billion. The company paid a quarterly dividend of $0.075 per share on June 26, 2023. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors. Business Outlook The following information presents Amkor’s guidance for the third quarter 2023 (unless otherwise noted): Net sales of $1.725 billion to $1.825 billion Gross margin of 13.5% to 15.5% Net income of $90 million to $130 million, or $0.36 to $0.53 per diluted share Full year 2023 capital expenditures of approximately $750 million Conference Call Information Amkor will conduct a conference call on Monday, July 31, 2023, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337. 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 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 amkor.com. AMKOR TECHNOLOGY, INC. Selected Operating Data Q2 2023 Q1 2023 Q2 2022 Net Sales Data: Net sales (in millions): Advanced products (1) $ 1,084 $ 1,068 $ 1,084 Mainstream products (2) 374 404 421 Total net sales $ 1,458 $ 1,472 $ 1,505 Packaging services 88 % 88 % 87 % Test services 12 % 12 % 13 % Net sales from top ten customers 66 % 66 % 65 % End Market Distribution Data: Communications (smartphones, tablets) 41 % 45 % 37 % Automotive, industrial and other (ADAS, electrification, infotainment, safety) 23 % 26 % 23 % Computing (data center, infrastructure, PC/laptop, storage) 20 % 17 % 18 % Consumer (AR & gaming, connected home, home electronics, wearables) 16 % 12 % 22 % Total 100 % 100 % 100 % Gross Margin Data: Net sales 100.0 % 100.0 % 100.0 % Cost of sales: Materials 53.6 % 52.9 % 49.2 % Labor 10.9 % 11.3 % 11.8 % Other manufacturing 22.7 % 22.6 % 22.4 % Gross margin 12.8 % 13.2 % 16.6 % (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream products include all other wirebond packaging and related test services. In this press release, we refer to 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, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. 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. Non-GAAP Financial Measure Reconciliation: (in millions) Q2 2023 Q1 2023 Q2 2022 EBITDA Data: Net income $ 64 $ 45 $ 125 Plus: Interest expense 14 16 15 Plus: Income tax expense 9 11 11 Plus: Depreciation & amortization 158 157 151 EBITDA $ 245 $ 229 $ 302 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net sales $ 1,457,922 $ 1,504,868 $ 2,929,461 $ 3,101,684 Cost of sales 1,271,052 1,255,713 2,548,170 2,527,199 Gross profit 186,870 249,155 381,291 574,485 Selling, general and administrative 64,860 68,868 143,531 145,827 Research and development 45,688 37,478 92,735 75,841 Total operating expenses 110,548 106,346 236,266 221,668 Operating income 76,322 142,809 145,025 352,817 Interest expense 14,354 14,593 30,521 28,741 Other (income) expense, net (11,883 ) (8,041 ) (15,435 ) (13,137 ) Total other expense, net 2,471 6,552 15,086 15,604 Income before taxes 73,851 136,257 129,939 337,213 Income tax expense 9,407 10,788 20,271 40,516 Net income 64,444 125,469 109,668 296,697 Net income attributable to non-controlling interests (158 ) (691 ) (31 ) (1,256 ) Net income attributable to Amkor $ 64,286 $ 124,778 $ 109,637 $ 295,441 Net income attributable to Amkor per common share: Basic $ 0.26 $ 0.51 $ 0.45 $ 1.21 Diluted $ 0.26 $ 0.51 $ 0.44 $ 1.20 Shares used in computing per common share amounts: Basic 245,637 244,592 245,485 244,498 Diluted 246,964 245,855 247,046 245,938 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 804,834 $ 959,072 Short-term investments 399,233 281,964 Accounts receivable, net of allowances 1,198,612 1,365,504 Inventories 534,477 629,576 Other current assets 61,890 65,123 Total current assets 2,999,046 3,301,239 Property, plant and equipment, net 3,309,592 3,135,614 Operating lease right of use assets 146,080 171,163 Goodwill 19,550 21,517 Restricted cash 3,428 3,334 Other assets 160,484 188,890 Total assets $ 6,638,180 $ 6,821,757 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 155,978 $ 143,813 Trade accounts payable 701,610 899,164 Capital expenditures payable 310,387 146,602 Short-term operating lease liability 53,991 70,991 Accrued expenses 354,522 401,841 Total current liabilities 1,576,488 1,662,411 Long-term debt 975,535 1,088,521 Pension and severance obligations 88,249 93,540 Long-term operating lease liabilities 66,030 75,745 Other non-current liabilities 169,019 201,839 Total liabilities 2,875,321 3,122,056 Stockholders’ equity: Preferred stock — — Common stock 292 291 Additional paid-in capital 2,005,055 1,996,344 Retained earnings 1,947,420 1,874,644 Accumulated other comprehensive income (loss) 1,432 16,699 Treasury stock (222,049 ) (219,226 ) Total Amkor stockholders’ equity 3,732,150 3,668,752 Non-controlling interests in subsidiaries 30,709 30,949 Total equity 3,762,859 3,699,701 Total liabilities and equity $ 6,638,180 $ 6,821,757 AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30, 2023 2022 Cash flows from operating activities: Net income $ 109,668 $ 296,697 Depreciation and amortization 314,647 299,341 Other operating activities and non-cash items 4,784 (10,041 ) Changes in assets and liabilities (6,521 ) (123,728 ) Net cash provided by operating activities 422,578 462,269 Cash flows from investing activities: Payments for property, plant and equipment (282,309 ) (340,208 ) Proceeds from sale of property, plant and equipment 1,107 773 Payments for short-term investments (355,135 ) (298,351 ) Proceeds from sale of short-term investments 47,000 14,120 Proceeds from maturities of short-term investments 193,315 155,910 Other investing activities (22,850 ) (58,916 ) Net cash used in investing activities (418,872 ) (526,672 ) Cash flows from financing activities: Proceeds from revolving credit facilities 370,000 — Payments of revolving credit facilities (370,000 ) — Proceeds from short-term debt 11,043 18,112 Payments of short-term debt (11,149 ) (12,048 ) Proceeds from issuance of long-term debt — 190,000 Payments of long-term debt (72,061 ) (155,284 ) Payments of finance lease obligations (31,129 ) (15,943 ) Payments of dividends (36,874 ) (24,473 ) Other financing activities (1,589 ) (5,089 ) Net cash used in financing activities (141,759 ) (4,725 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash (16,091 ) (25,020 ) Net decrease in cash, cash equivalents and restricted cash (154,144 ) (94,148 ) Cash, cash equivalents and restricted cash, beginning of period 962,406 831,521 Cash, cash equivalents and restricted cash, end of period $ 808,262 $ 737,373 Forward-Looking Statement Disclaimer This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following: dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions; dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive; changes in costs, quality, availability and delivery times of raw materials, components and equipment; health conditions or pandemics, such as the COVID-19 pandemic, impacting labor availability and operating capacity, capital availability, the supply chain and consumer demand for our customers’ products and services; fluctuations in operating results and cash flows; our substantial indebtedness; dependence on international factories and operations and risks relating to trade restrictions and regional conflict; fluctuations in interest rates and changes in credit risk; competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries; difficulty funding our liquidity needs, including as a result of disruptions to the banking system and capital markets; our substantial investments in equipment and facilities to support the demand of our customers; difficulty attracting, retaining or replacing qualified personnel; difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs; maintaining an effective system of internal controls; the absence of backlog and the short-term nature of our customers’ commitments; our continuing development and implementation of changes to, and maintenance and security of, our information technology systems; the historical downward pressure on the prices of our packaging and test services; challenges with integrating diverse operations; fluctuations in our manufacturing yields; any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets; our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies; environmental, health and safety liabilities and expenditures; warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business; natural disasters and other calamities, political instability, hostilities or other disruptions; restrictive covenants in the indentures and agreements governing our current and future indebtedness; the possibility that we may decrease or suspend our quarterly dividend; significant severance plan obligations associated with our manufacturing operations in Korea; and the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval. 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, 2022 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20230731850925/en/Contacts Jennifer Jue Vice President, Investor Relations and Finance 480-786-7594 jennifer.jue@amkor.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Amkor Technology Reports Financial Results for the Second Quarter 2023 By: Amkor Technology, Inc. via Business Wire July 31, 2023 at 16:03 PM EDT 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, 2023. Second Quarter 2023 Highlights Net sales $1.46 billion Gross profit $187 million, operating income $76 million Net income $64 million, earnings per diluted share $0.26 EBITDA $245 million “Amkor’s second quarter performance was in line with our expectations, with demand for Advanced packaging solutions driving sequential growth in both the Computing and Consumer end markets,” said Giel Rutten, Amkor’s president and chief executive officer. “With our technology leadership and broad geographic footprint, Amkor is outperforming the industry and is well positioned to capitalize on the industry megatrends that we expect to propel growth beyond the current cycle.” Quarterly Financial Results ($ in millions, except per share data) Q2 2023 Q1 2023 Q2 2022 Net sales $1,458 $1,472 $1,505 Gross margin 12.8% 13.2% 16.6% Operating income $76 $69 $143 Operating income margin 5.2% 4.7% 9.5% Net income attributable to Amkor $64 $45 $125 Earnings per diluted share $0.26 $0.18 $0.51 EBITDA (1) $245 $229 $302 (1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under “Selected Operating Data.” At June 30, 2023, total cash and short-term investments was $1.2 billion, and total debt was $1.1 billion. The company paid a quarterly dividend of $0.075 per share on June 26, 2023. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors. Business Outlook The following information presents Amkor’s guidance for the third quarter 2023 (unless otherwise noted): Net sales of $1.725 billion to $1.825 billion Gross margin of 13.5% to 15.5% Net income of $90 million to $130 million, or $0.36 to $0.53 per diluted share Full year 2023 capital expenditures of approximately $750 million Conference Call Information Amkor will conduct a conference call on Monday, July 31, 2023, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337. 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 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 amkor.com. AMKOR TECHNOLOGY, INC. Selected Operating Data Q2 2023 Q1 2023 Q2 2022 Net Sales Data: Net sales (in millions): Advanced products (1) $ 1,084 $ 1,068 $ 1,084 Mainstream products (2) 374 404 421 Total net sales $ 1,458 $ 1,472 $ 1,505 Packaging services 88 % 88 % 87 % Test services 12 % 12 % 13 % Net sales from top ten customers 66 % 66 % 65 % End Market Distribution Data: Communications (smartphones, tablets) 41 % 45 % 37 % Automotive, industrial and other (ADAS, electrification, infotainment, safety) 23 % 26 % 23 % Computing (data center, infrastructure, PC/laptop, storage) 20 % 17 % 18 % Consumer (AR & gaming, connected home, home electronics, wearables) 16 % 12 % 22 % Total 100 % 100 % 100 % Gross Margin Data: Net sales 100.0 % 100.0 % 100.0 % Cost of sales: Materials 53.6 % 52.9 % 49.2 % Labor 10.9 % 11.3 % 11.8 % Other manufacturing 22.7 % 22.6 % 22.4 % Gross margin 12.8 % 13.2 % 16.6 % (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream products include all other wirebond packaging and related test services. In this press release, we refer to 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, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. 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. Non-GAAP Financial Measure Reconciliation: (in millions) Q2 2023 Q1 2023 Q2 2022 EBITDA Data: Net income $ 64 $ 45 $ 125 Plus: Interest expense 14 16 15 Plus: Income tax expense 9 11 11 Plus: Depreciation & amortization 158 157 151 EBITDA $ 245 $ 229 $ 302 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net sales $ 1,457,922 $ 1,504,868 $ 2,929,461 $ 3,101,684 Cost of sales 1,271,052 1,255,713 2,548,170 2,527,199 Gross profit 186,870 249,155 381,291 574,485 Selling, general and administrative 64,860 68,868 143,531 145,827 Research and development 45,688 37,478 92,735 75,841 Total operating expenses 110,548 106,346 236,266 221,668 Operating income 76,322 142,809 145,025 352,817 Interest expense 14,354 14,593 30,521 28,741 Other (income) expense, net (11,883 ) (8,041 ) (15,435 ) (13,137 ) Total other expense, net 2,471 6,552 15,086 15,604 Income before taxes 73,851 136,257 129,939 337,213 Income tax expense 9,407 10,788 20,271 40,516 Net income 64,444 125,469 109,668 296,697 Net income attributable to non-controlling interests (158 ) (691 ) (31 ) (1,256 ) Net income attributable to Amkor $ 64,286 $ 124,778 $ 109,637 $ 295,441 Net income attributable to Amkor per common share: Basic $ 0.26 $ 0.51 $ 0.45 $ 1.21 Diluted $ 0.26 $ 0.51 $ 0.44 $ 1.20 Shares used in computing per common share amounts: Basic 245,637 244,592 245,485 244,498 Diluted 246,964 245,855 247,046 245,938 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 804,834 $ 959,072 Short-term investments 399,233 281,964 Accounts receivable, net of allowances 1,198,612 1,365,504 Inventories 534,477 629,576 Other current assets 61,890 65,123 Total current assets 2,999,046 3,301,239 Property, plant and equipment, net 3,309,592 3,135,614 Operating lease right of use assets 146,080 171,163 Goodwill 19,550 21,517 Restricted cash 3,428 3,334 Other assets 160,484 188,890 Total assets $ 6,638,180 $ 6,821,757 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 155,978 $ 143,813 Trade accounts payable 701,610 899,164 Capital expenditures payable 310,387 146,602 Short-term operating lease liability 53,991 70,991 Accrued expenses 354,522 401,841 Total current liabilities 1,576,488 1,662,411 Long-term debt 975,535 1,088,521 Pension and severance obligations 88,249 93,540 Long-term operating lease liabilities 66,030 75,745 Other non-current liabilities 169,019 201,839 Total liabilities 2,875,321 3,122,056 Stockholders’ equity: Preferred stock — — Common stock 292 291 Additional paid-in capital 2,005,055 1,996,344 Retained earnings 1,947,420 1,874,644 Accumulated other comprehensive income (loss) 1,432 16,699 Treasury stock (222,049 ) (219,226 ) Total Amkor stockholders’ equity 3,732,150 3,668,752 Non-controlling interests in subsidiaries 30,709 30,949 Total equity 3,762,859 3,699,701 Total liabilities and equity $ 6,638,180 $ 6,821,757 AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30, 2023 2022 Cash flows from operating activities: Net income $ 109,668 $ 296,697 Depreciation and amortization 314,647 299,341 Other operating activities and non-cash items 4,784 (10,041 ) Changes in assets and liabilities (6,521 ) (123,728 ) Net cash provided by operating activities 422,578 462,269 Cash flows from investing activities: Payments for property, plant and equipment (282,309 ) (340,208 ) Proceeds from sale of property, plant and equipment 1,107 773 Payments for short-term investments (355,135 ) (298,351 ) Proceeds from sale of short-term investments 47,000 14,120 Proceeds from maturities of short-term investments 193,315 155,910 Other investing activities (22,850 ) (58,916 ) Net cash used in investing activities (418,872 ) (526,672 ) Cash flows from financing activities: Proceeds from revolving credit facilities 370,000 — Payments of revolving credit facilities (370,000 ) — Proceeds from short-term debt 11,043 18,112 Payments of short-term debt (11,149 ) (12,048 ) Proceeds from issuance of long-term debt — 190,000 Payments of long-term debt (72,061 ) (155,284 ) Payments of finance lease obligations (31,129 ) (15,943 ) Payments of dividends (36,874 ) (24,473 ) Other financing activities (1,589 ) (5,089 ) Net cash used in financing activities (141,759 ) (4,725 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash (16,091 ) (25,020 ) Net decrease in cash, cash equivalents and restricted cash (154,144 ) (94,148 ) Cash, cash equivalents and restricted cash, beginning of period 962,406 831,521 Cash, cash equivalents and restricted cash, end of period $ 808,262 $ 737,373 Forward-Looking Statement Disclaimer This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following: dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions; dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive; changes in costs, quality, availability and delivery times of raw materials, components and equipment; health conditions or pandemics, such as the COVID-19 pandemic, impacting labor availability and operating capacity, capital availability, the supply chain and consumer demand for our customers’ products and services; fluctuations in operating results and cash flows; our substantial indebtedness; dependence on international factories and operations and risks relating to trade restrictions and regional conflict; fluctuations in interest rates and changes in credit risk; competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries; difficulty funding our liquidity needs, including as a result of disruptions to the banking system and capital markets; our substantial investments in equipment and facilities to support the demand of our customers; difficulty attracting, retaining or replacing qualified personnel; difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs; maintaining an effective system of internal controls; the absence of backlog and the short-term nature of our customers’ commitments; our continuing development and implementation of changes to, and maintenance and security of, our information technology systems; the historical downward pressure on the prices of our packaging and test services; challenges with integrating diverse operations; fluctuations in our manufacturing yields; any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets; our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies; environmental, health and safety liabilities and expenditures; warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business; natural disasters and other calamities, political instability, hostilities or other disruptions; restrictive covenants in the indentures and agreements governing our current and future indebtedness; the possibility that we may decrease or suspend our quarterly dividend; significant severance plan obligations associated with our manufacturing operations in Korea; and the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval. 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, 2022 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20230731850925/en/Contacts Jennifer Jue Vice President, Investor Relations and Finance 480-786-7594 jennifer.jue@amkor.com
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, 2023. Second Quarter 2023 Highlights Net sales $1.46 billion Gross profit $187 million, operating income $76 million Net income $64 million, earnings per diluted share $0.26 EBITDA $245 million “Amkor’s second quarter performance was in line with our expectations, with demand for Advanced packaging solutions driving sequential growth in both the Computing and Consumer end markets,” said Giel Rutten, Amkor’s president and chief executive officer. “With our technology leadership and broad geographic footprint, Amkor is outperforming the industry and is well positioned to capitalize on the industry megatrends that we expect to propel growth beyond the current cycle.” Quarterly Financial Results ($ in millions, except per share data) Q2 2023 Q1 2023 Q2 2022 Net sales $1,458 $1,472 $1,505 Gross margin 12.8% 13.2% 16.6% Operating income $76 $69 $143 Operating income margin 5.2% 4.7% 9.5% Net income attributable to Amkor $64 $45 $125 Earnings per diluted share $0.26 $0.18 $0.51 EBITDA (1) $245 $229 $302 (1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under “Selected Operating Data.” At June 30, 2023, total cash and short-term investments was $1.2 billion, and total debt was $1.1 billion. The company paid a quarterly dividend of $0.075 per share on June 26, 2023. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors. Business Outlook The following information presents Amkor’s guidance for the third quarter 2023 (unless otherwise noted): Net sales of $1.725 billion to $1.825 billion Gross margin of 13.5% to 15.5% Net income of $90 million to $130 million, or $0.36 to $0.53 per diluted share Full year 2023 capital expenditures of approximately $750 million Conference Call Information Amkor will conduct a conference call on Monday, July 31, 2023, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337. 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 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 amkor.com. AMKOR TECHNOLOGY, INC. Selected Operating Data Q2 2023 Q1 2023 Q2 2022 Net Sales Data: Net sales (in millions): Advanced products (1) $ 1,084 $ 1,068 $ 1,084 Mainstream products (2) 374 404 421 Total net sales $ 1,458 $ 1,472 $ 1,505 Packaging services 88 % 88 % 87 % Test services 12 % 12 % 13 % Net sales from top ten customers 66 % 66 % 65 % End Market Distribution Data: Communications (smartphones, tablets) 41 % 45 % 37 % Automotive, industrial and other (ADAS, electrification, infotainment, safety) 23 % 26 % 23 % Computing (data center, infrastructure, PC/laptop, storage) 20 % 17 % 18 % Consumer (AR & gaming, connected home, home electronics, wearables) 16 % 12 % 22 % Total 100 % 100 % 100 % Gross Margin Data: Net sales 100.0 % 100.0 % 100.0 % Cost of sales: Materials 53.6 % 52.9 % 49.2 % Labor 10.9 % 11.3 % 11.8 % Other manufacturing 22.7 % 22.6 % 22.4 % Gross margin 12.8 % 13.2 % 16.6 % (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream products include all other wirebond packaging and related test services. In this press release, we refer to 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, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. 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. Non-GAAP Financial Measure Reconciliation: (in millions) Q2 2023 Q1 2023 Q2 2022 EBITDA Data: Net income $ 64 $ 45 $ 125 Plus: Interest expense 14 16 15 Plus: Income tax expense 9 11 11 Plus: Depreciation & amortization 158 157 151 EBITDA $ 245 $ 229 $ 302 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net sales $ 1,457,922 $ 1,504,868 $ 2,929,461 $ 3,101,684 Cost of sales 1,271,052 1,255,713 2,548,170 2,527,199 Gross profit 186,870 249,155 381,291 574,485 Selling, general and administrative 64,860 68,868 143,531 145,827 Research and development 45,688 37,478 92,735 75,841 Total operating expenses 110,548 106,346 236,266 221,668 Operating income 76,322 142,809 145,025 352,817 Interest expense 14,354 14,593 30,521 28,741 Other (income) expense, net (11,883 ) (8,041 ) (15,435 ) (13,137 ) Total other expense, net 2,471 6,552 15,086 15,604 Income before taxes 73,851 136,257 129,939 337,213 Income tax expense 9,407 10,788 20,271 40,516 Net income 64,444 125,469 109,668 296,697 Net income attributable to non-controlling interests (158 ) (691 ) (31 ) (1,256 ) Net income attributable to Amkor $ 64,286 $ 124,778 $ 109,637 $ 295,441 Net income attributable to Amkor per common share: Basic $ 0.26 $ 0.51 $ 0.45 $ 1.21 Diluted $ 0.26 $ 0.51 $ 0.44 $ 1.20 Shares used in computing per common share amounts: Basic 245,637 244,592 245,485 244,498 Diluted 246,964 245,855 247,046 245,938 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 804,834 $ 959,072 Short-term investments 399,233 281,964 Accounts receivable, net of allowances 1,198,612 1,365,504 Inventories 534,477 629,576 Other current assets 61,890 65,123 Total current assets 2,999,046 3,301,239 Property, plant and equipment, net 3,309,592 3,135,614 Operating lease right of use assets 146,080 171,163 Goodwill 19,550 21,517 Restricted cash 3,428 3,334 Other assets 160,484 188,890 Total assets $ 6,638,180 $ 6,821,757 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 155,978 $ 143,813 Trade accounts payable 701,610 899,164 Capital expenditures payable 310,387 146,602 Short-term operating lease liability 53,991 70,991 Accrued expenses 354,522 401,841 Total current liabilities 1,576,488 1,662,411 Long-term debt 975,535 1,088,521 Pension and severance obligations 88,249 93,540 Long-term operating lease liabilities 66,030 75,745 Other non-current liabilities 169,019 201,839 Total liabilities 2,875,321 3,122,056 Stockholders’ equity: Preferred stock — — Common stock 292 291 Additional paid-in capital 2,005,055 1,996,344 Retained earnings 1,947,420 1,874,644 Accumulated other comprehensive income (loss) 1,432 16,699 Treasury stock (222,049 ) (219,226 ) Total Amkor stockholders’ equity 3,732,150 3,668,752 Non-controlling interests in subsidiaries 30,709 30,949 Total equity 3,762,859 3,699,701 Total liabilities and equity $ 6,638,180 $ 6,821,757 AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30, 2023 2022 Cash flows from operating activities: Net income $ 109,668 $ 296,697 Depreciation and amortization 314,647 299,341 Other operating activities and non-cash items 4,784 (10,041 ) Changes in assets and liabilities (6,521 ) (123,728 ) Net cash provided by operating activities 422,578 462,269 Cash flows from investing activities: Payments for property, plant and equipment (282,309 ) (340,208 ) Proceeds from sale of property, plant and equipment 1,107 773 Payments for short-term investments (355,135 ) (298,351 ) Proceeds from sale of short-term investments 47,000 14,120 Proceeds from maturities of short-term investments 193,315 155,910 Other investing activities (22,850 ) (58,916 ) Net cash used in investing activities (418,872 ) (526,672 ) Cash flows from financing activities: Proceeds from revolving credit facilities 370,000 — Payments of revolving credit facilities (370,000 ) — Proceeds from short-term debt 11,043 18,112 Payments of short-term debt (11,149 ) (12,048 ) Proceeds from issuance of long-term debt — 190,000 Payments of long-term debt (72,061 ) (155,284 ) Payments of finance lease obligations (31,129 ) (15,943 ) Payments of dividends (36,874 ) (24,473 ) Other financing activities (1,589 ) (5,089 ) Net cash used in financing activities (141,759 ) (4,725 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash (16,091 ) (25,020 ) Net decrease in cash, cash equivalents and restricted cash (154,144 ) (94,148 ) Cash, cash equivalents and restricted cash, beginning of period 962,406 831,521 Cash, cash equivalents and restricted cash, end of period $ 808,262 $ 737,373 Forward-Looking Statement Disclaimer This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following: dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions; dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive; changes in costs, quality, availability and delivery times of raw materials, components and equipment; health conditions or pandemics, such as the COVID-19 pandemic, impacting labor availability and operating capacity, capital availability, the supply chain and consumer demand for our customers’ products and services; fluctuations in operating results and cash flows; our substantial indebtedness; dependence on international factories and operations and risks relating to trade restrictions and regional conflict; fluctuations in interest rates and changes in credit risk; competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries; difficulty funding our liquidity needs, including as a result of disruptions to the banking system and capital markets; our substantial investments in equipment and facilities to support the demand of our customers; difficulty attracting, retaining or replacing qualified personnel; difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs; maintaining an effective system of internal controls; the absence of backlog and the short-term nature of our customers’ commitments; our continuing development and implementation of changes to, and maintenance and security of, our information technology systems; the historical downward pressure on the prices of our packaging and test services; challenges with integrating diverse operations; fluctuations in our manufacturing yields; any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets; our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies; environmental, health and safety liabilities and expenditures; warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business; natural disasters and other calamities, political instability, hostilities or other disruptions; restrictive covenants in the indentures and agreements governing our current and future indebtedness; the possibility that we may decrease or suspend our quarterly dividend; significant severance plan obligations associated with our manufacturing operations in Korea; and the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval. 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, 2022 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20230731850925/en/