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 Fourth Quarter and Full Year 2023 By: Amkor Technology, Inc. via Business Wire February 05, 2024 at 16:03 PM EST Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Highlights: Fourth quarter net sales $1.75 billion Net income $118 million, earnings per diluted share $0.48 Full Year 2023 Highlights: Net sales $6.50 billion, down 8% year-on-year Gross profit $943 million, operating income $470 million Net income $360 million, earnings per diluted share $1.46 EBITDA $1.13 billion Net cash from operations $1.27 billion, free cash flow $534 million “In 2023, amid a cyclical downturn, Amkor outperformed the semiconductor industry by maintaining our strategic focus on Advanced packaging,” said Giel Rutten, Amkor’s president and chief executive officer. “Amkor gained market share, achieved record revenue in Communications, supported AI deployment with our 2.5D technology, and continued to grow ADAS and Electrification solutions in the Automotive market.” Financial Results ($ in millions, except per share data) Q4 2023 Q3 2023 Q4 2022 2023 2022 Net sales $1,752 $1,822 $1,906 $6,503 $7,092 Gross margin 15.9% 15.5% 17.5% 14.5% 18.8% Operating income $159 $167 $225 $470 $897 Operating income margin 9.1% 9.1% 11.8% 7.2% 12.7% Net income attributable to Amkor $118 $133 $164 $360 $766 Earnings per diluted share $0.48 $0.54 $0.67 $1.46 $3.11 EBITDA (1) $326 $333 $382 $1,135 $1,529 Net cash provided by operating activities $1,270 $1,099 Annual free cash flow (1) $534 $194 (1) EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.” At December 31, 2023, total cash and short-term investments was $1.59 billion, and total debt was $1.20 billion. On November 14, 2023, Amkor’s Board of Directors announced a 5% increase in the company’s quarterly cash dividend, from $0.075 per share to $0.07875 per share, on the company’s common stock. The increase was effective with the dividend paid on December 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 “First quarter 2024 guidance is being driven by a more than seasonal decline in Communications following a record year and weakness in the Automotive & Industrial end market as customers work through inventory,” said Rutten. The following information presents Amkor’s guidance for the first quarter 2024 (unless otherwise noted): Net sales of $1.30 billion to $1.40 billion Gross margin of 11.5% to 14.0% Net income of $8 million to $48 million, or $0.03 to $0.19 per diluted share Full year 2024 capital expenditures of approximately $750 million Conference Call Information Amkor will conduct a conference call on Monday, February 5, 2024, 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 the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor’s operational base includes production facilities, research and development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com. AMKOR TECHNOLOGY, INC. Selected Operating Data Q4 2023 Q3 2023 Q4 2022 2023 2022 Net Sales Data: Net sales (in millions): Advanced Products (1) $1,430 $1,452 $1,488 $5,033 $5,368 Mainstream Products (2) 322 370 418 1,470 1,724 Total net sales $1,752 $1,822 $1,906 $6,503 $7,092 Packaging services 89 % 88 % 88 % 88 % 87 % Test services 11 % 12 % 12 % 12 % 13 % Net sales from top ten customers 71 % 72 % 67 % 69 % 65 % End Market Distribution Data: Communications (smartphones, tablets) 56 % 55 % 50 % 50 % 44 % Automotive, industrial and other (ADAS, electrification, infotainment, safety) 19 % 19 % 20 % 21 % 20 % Computing (data center, infrastructure, PC/laptop, storage) 13 % 14 % 13 % 16 % 16 % Consumer (AR & gaming, connected home, home electronics, wearables) 12 % 12 % 17 % 13 % 20 % Total 100 % 100 % 100 % 100 % 100 % Gross Margin Data: Net sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Cost of sales: Materials 56.5 % 56.8 % 55.1 % 55.1 % 51.4 % Labor 9.1 % 8.8 % 9.0 % 9.9 % 10.0 % Other manufacturing 18.5 % 18.9 % 18.4 % 20.5 % 19.8 % Gross margin 15.9 % 15.5 % 17.5 % 14.5 % 18.8 % (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. AMKOR TECHNOLOGY, INC. Selected Operating Data 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 Measures Reconciliation: (in millions) Q4 2023 Q3 2023 Q4 2022 2023 2022 EBITDA Data: Net income $ 119 $ 133 $ 164 $ 362 $ 767 Plus: Interest expense 15 13 15 59 59 Plus: Income tax expense 33 29 46 82 90 Plus: Depreciation & amortization 159 158 157 632 613 EBITDA $ 326 $ 333 $ 382 $ 1,135 $ 1,529 AMKOR TECHNOLOGY, INC. Selected Operating Data In this press release, we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities. Non-GAAP Financial Measures Reconciliation: (in millions) 2023 2022 Free Cash Flow Data: Net cash provided by operating activities $ 1,270 $ 1,099 Less: Purchases of property, plant and equipment (749 ) (908 ) Plus: Proceeds from sale of, insurance recovery for and grants for property, plant and equipment 13 3 Free cash flow $ 534 $ 194 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net sales $ 1,751,811 $ 1,906,210 $ 6,503,065 $ 7,091,585 Cost of sales 1,472,702 1,571,936 5,559,912 5,761,598 Gross profit 279,109 334,274 943,153 1,329,987 Selling, general and administrative 78,842 69,598 295,393 283,372 Research and development 41,603 39,594 177,473 149,429 Total operating expenses 120,445 109,192 472,866 432,801 Operating income 158,664 225,082 470,287 897,186 Interest expense 15,478 14,943 59,000 58,563 Other (income) expense, net (8,342 ) 520 (32,554 ) (18,309 ) Total other expense, net 7,136 15,463 26,446 40,254 Income before taxes 151,528 209,619 443,841 856,932 Income tax expense 32,516 45,731 81,710 89,890 Net income 119,012 163,888 362,131 767,042 Net income attributable to noncontrolling interests (1,450 ) 413 (2,318 ) (1,219 ) Net income attributable to Amkor $ 117,562 $ 164,301 $ 359,813 $ 765,823 Net income attributable to Amkor per common share: $ 0.48 $ 0.67 $ 1.46 $ 3.13 Diluted $ 0.48 $ 0.67 $ 1.46 $ 3.11 Shares used in computing per common share amounts: Basic 245,799 244,957 245,628 244,676 Basic 247,243 246,693 247,176 246,205 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 1,119,818 $ 959,072 Short-term investments 474,869 281,964 Accounts receivable, net of allowances 1,149,493 1,365,504 Inventories 393,128 629,576 Other current assets 58,502 65,123 Total current assets 3,195,810 3,301,239 Property, plant and equipment, net 3,299,445 3,135,614 Operating lease right of use assets 117,006 171,163 Goodwill 20,003 21,517 Restricted cash 799 3,334 Other assets 138,062 188,890 Total assets $ 6,771,125 $ 6,821,757 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 131,624 $ 143,813 Trade accounts payable 754,453 899,164 Capital expenditures payable 106,368 146,602 Short-term operating lease liability 33,616 70,991 Accrued expenses 358,414 401,841 Total current liabilities 1,384,475 1,662,411 Long-term debt 1,071,832 1,088,521 Pension and severance obligations 87,133 93,540 Long-term operating lease liabilities 56,837 75,745 Other non-current liabilities 175,813 201,839 Total liabilities 2,776,090 3,122,056 Amkor stockholders’ equity: Preferred stock — — Common stock 292 291 Additional paid-in capital 2,008,170 1,996,344 Retained earnings 2,159,831 1,874,644 Accumulated other comprehensive income 16,350 16,699 Treasury stock (222,335 ) (219,226 ) Total Amkor stockholders’ equity 3,962,308 3,668,752 Noncontrolling interests in subsidiaries 32,727 30,949 Total equity 3,995,035 3,699,701 Total liabilities and equity $ 6,771,125 $ 6,821,757 AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Year Ended December 31, 2023 2022 Cash flows from operating activities: Net income $ 362,131 $ 767,042 Depreciation and amortization 631,508 612,702 Other operating activities and non-cash items 39,654 422 Changes in assets and liabilities 236,727 (281,410 ) Net cash provided by operating activities 1,270,020 1,098,756 Cash flows from investing activities: Payments for property, plant and equipment (749,467 ) (908,294 ) Proceeds from sale of property, plant and equipment 8,444 3,148 Payments for short-term investments (657,583 ) (438,803 ) Proceeds from sale of short-term investments 94,242 33,972 Proceeds from maturities of short-term investments 379,344 370,924 Other investing activities (26,890 ) (68,116 ) Net cash used in investing activities (951,910 ) (1,007,169 ) Cash flows from financing activities: Proceeds from revolving credit facilities 370,000 80,000 Payments of revolving credit facilities (370,000 ) (80,000 ) Proceeds from short-term debt 20,712 29,711 Payments of short-term debt (19,448 ) (27,187 ) Proceeds from issuance of long-term debt 168,335 366,386 Payments of long-term debt (175,427 ) (214,290 ) Payments of finance lease obligations (66,398 ) (40,673 ) Payments of dividends (74,686 ) (55,116 ) Other financing activities (2,295 ) (3,234 ) Net cash (used in) provided by financing activities (149,207 ) 55,597 Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash (10,692 ) (16,299 ) Net increase in cash, cash equivalents and restricted cash 158,211 130,885 Cash, cash equivalents and restricted cash, beginning of period 962,406 831,521 Cash, cash equivalents and restricted cash, end of period $ 1,120,617 $ 962,406 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 COVID-19, 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; the effects of business, economic, political, legal and regulatory impacts or conflicts upon our global operations; 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/20240205075238/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 Fourth Quarter and Full Year 2023 By: Amkor Technology, Inc. via Business Wire February 05, 2024 at 16:03 PM EST Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Highlights: Fourth quarter net sales $1.75 billion Net income $118 million, earnings per diluted share $0.48 Full Year 2023 Highlights: Net sales $6.50 billion, down 8% year-on-year Gross profit $943 million, operating income $470 million Net income $360 million, earnings per diluted share $1.46 EBITDA $1.13 billion Net cash from operations $1.27 billion, free cash flow $534 million “In 2023, amid a cyclical downturn, Amkor outperformed the semiconductor industry by maintaining our strategic focus on Advanced packaging,” said Giel Rutten, Amkor’s president and chief executive officer. “Amkor gained market share, achieved record revenue in Communications, supported AI deployment with our 2.5D technology, and continued to grow ADAS and Electrification solutions in the Automotive market.” Financial Results ($ in millions, except per share data) Q4 2023 Q3 2023 Q4 2022 2023 2022 Net sales $1,752 $1,822 $1,906 $6,503 $7,092 Gross margin 15.9% 15.5% 17.5% 14.5% 18.8% Operating income $159 $167 $225 $470 $897 Operating income margin 9.1% 9.1% 11.8% 7.2% 12.7% Net income attributable to Amkor $118 $133 $164 $360 $766 Earnings per diluted share $0.48 $0.54 $0.67 $1.46 $3.11 EBITDA (1) $326 $333 $382 $1,135 $1,529 Net cash provided by operating activities $1,270 $1,099 Annual free cash flow (1) $534 $194 (1) EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.” At December 31, 2023, total cash and short-term investments was $1.59 billion, and total debt was $1.20 billion. On November 14, 2023, Amkor’s Board of Directors announced a 5% increase in the company’s quarterly cash dividend, from $0.075 per share to $0.07875 per share, on the company’s common stock. The increase was effective with the dividend paid on December 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 “First quarter 2024 guidance is being driven by a more than seasonal decline in Communications following a record year and weakness in the Automotive & Industrial end market as customers work through inventory,” said Rutten. The following information presents Amkor’s guidance for the first quarter 2024 (unless otherwise noted): Net sales of $1.30 billion to $1.40 billion Gross margin of 11.5% to 14.0% Net income of $8 million to $48 million, or $0.03 to $0.19 per diluted share Full year 2024 capital expenditures of approximately $750 million Conference Call Information Amkor will conduct a conference call on Monday, February 5, 2024, 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 the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor’s operational base includes production facilities, research and development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com. AMKOR TECHNOLOGY, INC. Selected Operating Data Q4 2023 Q3 2023 Q4 2022 2023 2022 Net Sales Data: Net sales (in millions): Advanced Products (1) $1,430 $1,452 $1,488 $5,033 $5,368 Mainstream Products (2) 322 370 418 1,470 1,724 Total net sales $1,752 $1,822 $1,906 $6,503 $7,092 Packaging services 89 % 88 % 88 % 88 % 87 % Test services 11 % 12 % 12 % 12 % 13 % Net sales from top ten customers 71 % 72 % 67 % 69 % 65 % End Market Distribution Data: Communications (smartphones, tablets) 56 % 55 % 50 % 50 % 44 % Automotive, industrial and other (ADAS, electrification, infotainment, safety) 19 % 19 % 20 % 21 % 20 % Computing (data center, infrastructure, PC/laptop, storage) 13 % 14 % 13 % 16 % 16 % Consumer (AR & gaming, connected home, home electronics, wearables) 12 % 12 % 17 % 13 % 20 % Total 100 % 100 % 100 % 100 % 100 % Gross Margin Data: Net sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Cost of sales: Materials 56.5 % 56.8 % 55.1 % 55.1 % 51.4 % Labor 9.1 % 8.8 % 9.0 % 9.9 % 10.0 % Other manufacturing 18.5 % 18.9 % 18.4 % 20.5 % 19.8 % Gross margin 15.9 % 15.5 % 17.5 % 14.5 % 18.8 % (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. AMKOR TECHNOLOGY, INC. Selected Operating Data 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 Measures Reconciliation: (in millions) Q4 2023 Q3 2023 Q4 2022 2023 2022 EBITDA Data: Net income $ 119 $ 133 $ 164 $ 362 $ 767 Plus: Interest expense 15 13 15 59 59 Plus: Income tax expense 33 29 46 82 90 Plus: Depreciation & amortization 159 158 157 632 613 EBITDA $ 326 $ 333 $ 382 $ 1,135 $ 1,529 AMKOR TECHNOLOGY, INC. Selected Operating Data In this press release, we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities. Non-GAAP Financial Measures Reconciliation: (in millions) 2023 2022 Free Cash Flow Data: Net cash provided by operating activities $ 1,270 $ 1,099 Less: Purchases of property, plant and equipment (749 ) (908 ) Plus: Proceeds from sale of, insurance recovery for and grants for property, plant and equipment 13 3 Free cash flow $ 534 $ 194 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net sales $ 1,751,811 $ 1,906,210 $ 6,503,065 $ 7,091,585 Cost of sales 1,472,702 1,571,936 5,559,912 5,761,598 Gross profit 279,109 334,274 943,153 1,329,987 Selling, general and administrative 78,842 69,598 295,393 283,372 Research and development 41,603 39,594 177,473 149,429 Total operating expenses 120,445 109,192 472,866 432,801 Operating income 158,664 225,082 470,287 897,186 Interest expense 15,478 14,943 59,000 58,563 Other (income) expense, net (8,342 ) 520 (32,554 ) (18,309 ) Total other expense, net 7,136 15,463 26,446 40,254 Income before taxes 151,528 209,619 443,841 856,932 Income tax expense 32,516 45,731 81,710 89,890 Net income 119,012 163,888 362,131 767,042 Net income attributable to noncontrolling interests (1,450 ) 413 (2,318 ) (1,219 ) Net income attributable to Amkor $ 117,562 $ 164,301 $ 359,813 $ 765,823 Net income attributable to Amkor per common share: $ 0.48 $ 0.67 $ 1.46 $ 3.13 Diluted $ 0.48 $ 0.67 $ 1.46 $ 3.11 Shares used in computing per common share amounts: Basic 245,799 244,957 245,628 244,676 Basic 247,243 246,693 247,176 246,205 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 1,119,818 $ 959,072 Short-term investments 474,869 281,964 Accounts receivable, net of allowances 1,149,493 1,365,504 Inventories 393,128 629,576 Other current assets 58,502 65,123 Total current assets 3,195,810 3,301,239 Property, plant and equipment, net 3,299,445 3,135,614 Operating lease right of use assets 117,006 171,163 Goodwill 20,003 21,517 Restricted cash 799 3,334 Other assets 138,062 188,890 Total assets $ 6,771,125 $ 6,821,757 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 131,624 $ 143,813 Trade accounts payable 754,453 899,164 Capital expenditures payable 106,368 146,602 Short-term operating lease liability 33,616 70,991 Accrued expenses 358,414 401,841 Total current liabilities 1,384,475 1,662,411 Long-term debt 1,071,832 1,088,521 Pension and severance obligations 87,133 93,540 Long-term operating lease liabilities 56,837 75,745 Other non-current liabilities 175,813 201,839 Total liabilities 2,776,090 3,122,056 Amkor stockholders’ equity: Preferred stock — — Common stock 292 291 Additional paid-in capital 2,008,170 1,996,344 Retained earnings 2,159,831 1,874,644 Accumulated other comprehensive income 16,350 16,699 Treasury stock (222,335 ) (219,226 ) Total Amkor stockholders’ equity 3,962,308 3,668,752 Noncontrolling interests in subsidiaries 32,727 30,949 Total equity 3,995,035 3,699,701 Total liabilities and equity $ 6,771,125 $ 6,821,757 AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Year Ended December 31, 2023 2022 Cash flows from operating activities: Net income $ 362,131 $ 767,042 Depreciation and amortization 631,508 612,702 Other operating activities and non-cash items 39,654 422 Changes in assets and liabilities 236,727 (281,410 ) Net cash provided by operating activities 1,270,020 1,098,756 Cash flows from investing activities: Payments for property, plant and equipment (749,467 ) (908,294 ) Proceeds from sale of property, plant and equipment 8,444 3,148 Payments for short-term investments (657,583 ) (438,803 ) Proceeds from sale of short-term investments 94,242 33,972 Proceeds from maturities of short-term investments 379,344 370,924 Other investing activities (26,890 ) (68,116 ) Net cash used in investing activities (951,910 ) (1,007,169 ) Cash flows from financing activities: Proceeds from revolving credit facilities 370,000 80,000 Payments of revolving credit facilities (370,000 ) (80,000 ) Proceeds from short-term debt 20,712 29,711 Payments of short-term debt (19,448 ) (27,187 ) Proceeds from issuance of long-term debt 168,335 366,386 Payments of long-term debt (175,427 ) (214,290 ) Payments of finance lease obligations (66,398 ) (40,673 ) Payments of dividends (74,686 ) (55,116 ) Other financing activities (2,295 ) (3,234 ) Net cash (used in) provided by financing activities (149,207 ) 55,597 Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash (10,692 ) (16,299 ) Net increase in cash, cash equivalents and restricted cash 158,211 130,885 Cash, cash equivalents and restricted cash, beginning of period 962,406 831,521 Cash, cash equivalents and restricted cash, end of period $ 1,120,617 $ 962,406 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 COVID-19, 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; the effects of business, economic, political, legal and regulatory impacts or conflicts upon our global operations; 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/20240205075238/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 fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Highlights: Fourth quarter net sales $1.75 billion Net income $118 million, earnings per diluted share $0.48 Full Year 2023 Highlights: Net sales $6.50 billion, down 8% year-on-year Gross profit $943 million, operating income $470 million Net income $360 million, earnings per diluted share $1.46 EBITDA $1.13 billion Net cash from operations $1.27 billion, free cash flow $534 million “In 2023, amid a cyclical downturn, Amkor outperformed the semiconductor industry by maintaining our strategic focus on Advanced packaging,” said Giel Rutten, Amkor’s president and chief executive officer. “Amkor gained market share, achieved record revenue in Communications, supported AI deployment with our 2.5D technology, and continued to grow ADAS and Electrification solutions in the Automotive market.” Financial Results ($ in millions, except per share data) Q4 2023 Q3 2023 Q4 2022 2023 2022 Net sales $1,752 $1,822 $1,906 $6,503 $7,092 Gross margin 15.9% 15.5% 17.5% 14.5% 18.8% Operating income $159 $167 $225 $470 $897 Operating income margin 9.1% 9.1% 11.8% 7.2% 12.7% Net income attributable to Amkor $118 $133 $164 $360 $766 Earnings per diluted share $0.48 $0.54 $0.67 $1.46 $3.11 EBITDA (1) $326 $333 $382 $1,135 $1,529 Net cash provided by operating activities $1,270 $1,099 Annual free cash flow (1) $534 $194 (1) EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.” At December 31, 2023, total cash and short-term investments was $1.59 billion, and total debt was $1.20 billion. On November 14, 2023, Amkor’s Board of Directors announced a 5% increase in the company’s quarterly cash dividend, from $0.075 per share to $0.07875 per share, on the company’s common stock. The increase was effective with the dividend paid on December 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 “First quarter 2024 guidance is being driven by a more than seasonal decline in Communications following a record year and weakness in the Automotive & Industrial end market as customers work through inventory,” said Rutten. The following information presents Amkor’s guidance for the first quarter 2024 (unless otherwise noted): Net sales of $1.30 billion to $1.40 billion Gross margin of 11.5% to 14.0% Net income of $8 million to $48 million, or $0.03 to $0.19 per diluted share Full year 2024 capital expenditures of approximately $750 million Conference Call Information Amkor will conduct a conference call on Monday, February 5, 2024, 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 the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor’s operational base includes production facilities, research and development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com. AMKOR TECHNOLOGY, INC. Selected Operating Data Q4 2023 Q3 2023 Q4 2022 2023 2022 Net Sales Data: Net sales (in millions): Advanced Products (1) $1,430 $1,452 $1,488 $5,033 $5,368 Mainstream Products (2) 322 370 418 1,470 1,724 Total net sales $1,752 $1,822 $1,906 $6,503 $7,092 Packaging services 89 % 88 % 88 % 88 % 87 % Test services 11 % 12 % 12 % 12 % 13 % Net sales from top ten customers 71 % 72 % 67 % 69 % 65 % End Market Distribution Data: Communications (smartphones, tablets) 56 % 55 % 50 % 50 % 44 % Automotive, industrial and other (ADAS, electrification, infotainment, safety) 19 % 19 % 20 % 21 % 20 % Computing (data center, infrastructure, PC/laptop, storage) 13 % 14 % 13 % 16 % 16 % Consumer (AR & gaming, connected home, home electronics, wearables) 12 % 12 % 17 % 13 % 20 % Total 100 % 100 % 100 % 100 % 100 % Gross Margin Data: Net sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Cost of sales: Materials 56.5 % 56.8 % 55.1 % 55.1 % 51.4 % Labor 9.1 % 8.8 % 9.0 % 9.9 % 10.0 % Other manufacturing 18.5 % 18.9 % 18.4 % 20.5 % 19.8 % Gross margin 15.9 % 15.5 % 17.5 % 14.5 % 18.8 % (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. AMKOR TECHNOLOGY, INC. Selected Operating Data 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 Measures Reconciliation: (in millions) Q4 2023 Q3 2023 Q4 2022 2023 2022 EBITDA Data: Net income $ 119 $ 133 $ 164 $ 362 $ 767 Plus: Interest expense 15 13 15 59 59 Plus: Income tax expense 33 29 46 82 90 Plus: Depreciation & amortization 159 158 157 632 613 EBITDA $ 326 $ 333 $ 382 $ 1,135 $ 1,529 AMKOR TECHNOLOGY, INC. Selected Operating Data In this press release, we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities. Non-GAAP Financial Measures Reconciliation: (in millions) 2023 2022 Free Cash Flow Data: Net cash provided by operating activities $ 1,270 $ 1,099 Less: Purchases of property, plant and equipment (749 ) (908 ) Plus: Proceeds from sale of, insurance recovery for and grants for property, plant and equipment 13 3 Free cash flow $ 534 $ 194 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net sales $ 1,751,811 $ 1,906,210 $ 6,503,065 $ 7,091,585 Cost of sales 1,472,702 1,571,936 5,559,912 5,761,598 Gross profit 279,109 334,274 943,153 1,329,987 Selling, general and administrative 78,842 69,598 295,393 283,372 Research and development 41,603 39,594 177,473 149,429 Total operating expenses 120,445 109,192 472,866 432,801 Operating income 158,664 225,082 470,287 897,186 Interest expense 15,478 14,943 59,000 58,563 Other (income) expense, net (8,342 ) 520 (32,554 ) (18,309 ) Total other expense, net 7,136 15,463 26,446 40,254 Income before taxes 151,528 209,619 443,841 856,932 Income tax expense 32,516 45,731 81,710 89,890 Net income 119,012 163,888 362,131 767,042 Net income attributable to noncontrolling interests (1,450 ) 413 (2,318 ) (1,219 ) Net income attributable to Amkor $ 117,562 $ 164,301 $ 359,813 $ 765,823 Net income attributable to Amkor per common share: $ 0.48 $ 0.67 $ 1.46 $ 3.13 Diluted $ 0.48 $ 0.67 $ 1.46 $ 3.11 Shares used in computing per common share amounts: Basic 245,799 244,957 245,628 244,676 Basic 247,243 246,693 247,176 246,205 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 1,119,818 $ 959,072 Short-term investments 474,869 281,964 Accounts receivable, net of allowances 1,149,493 1,365,504 Inventories 393,128 629,576 Other current assets 58,502 65,123 Total current assets 3,195,810 3,301,239 Property, plant and equipment, net 3,299,445 3,135,614 Operating lease right of use assets 117,006 171,163 Goodwill 20,003 21,517 Restricted cash 799 3,334 Other assets 138,062 188,890 Total assets $ 6,771,125 $ 6,821,757 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 131,624 $ 143,813 Trade accounts payable 754,453 899,164 Capital expenditures payable 106,368 146,602 Short-term operating lease liability 33,616 70,991 Accrued expenses 358,414 401,841 Total current liabilities 1,384,475 1,662,411 Long-term debt 1,071,832 1,088,521 Pension and severance obligations 87,133 93,540 Long-term operating lease liabilities 56,837 75,745 Other non-current liabilities 175,813 201,839 Total liabilities 2,776,090 3,122,056 Amkor stockholders’ equity: Preferred stock — — Common stock 292 291 Additional paid-in capital 2,008,170 1,996,344 Retained earnings 2,159,831 1,874,644 Accumulated other comprehensive income 16,350 16,699 Treasury stock (222,335 ) (219,226 ) Total Amkor stockholders’ equity 3,962,308 3,668,752 Noncontrolling interests in subsidiaries 32,727 30,949 Total equity 3,995,035 3,699,701 Total liabilities and equity $ 6,771,125 $ 6,821,757 AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Year Ended December 31, 2023 2022 Cash flows from operating activities: Net income $ 362,131 $ 767,042 Depreciation and amortization 631,508 612,702 Other operating activities and non-cash items 39,654 422 Changes in assets and liabilities 236,727 (281,410 ) Net cash provided by operating activities 1,270,020 1,098,756 Cash flows from investing activities: Payments for property, plant and equipment (749,467 ) (908,294 ) Proceeds from sale of property, plant and equipment 8,444 3,148 Payments for short-term investments (657,583 ) (438,803 ) Proceeds from sale of short-term investments 94,242 33,972 Proceeds from maturities of short-term investments 379,344 370,924 Other investing activities (26,890 ) (68,116 ) Net cash used in investing activities (951,910 ) (1,007,169 ) Cash flows from financing activities: Proceeds from revolving credit facilities 370,000 80,000 Payments of revolving credit facilities (370,000 ) (80,000 ) Proceeds from short-term debt 20,712 29,711 Payments of short-term debt (19,448 ) (27,187 ) Proceeds from issuance of long-term debt 168,335 366,386 Payments of long-term debt (175,427 ) (214,290 ) Payments of finance lease obligations (66,398 ) (40,673 ) Payments of dividends (74,686 ) (55,116 ) Other financing activities (2,295 ) (3,234 ) Net cash (used in) provided by financing activities (149,207 ) 55,597 Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash (10,692 ) (16,299 ) Net increase in cash, cash equivalents and restricted cash 158,211 130,885 Cash, cash equivalents and restricted cash, beginning of period 962,406 831,521 Cash, cash equivalents and restricted cash, end of period $ 1,120,617 $ 962,406 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 COVID-19, 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; the effects of business, economic, political, legal and regulatory impacts or conflicts upon our global operations; 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/20240205075238/en/