Amkor Posts Record Q2
Staff Reporter -- EDN, July 27, 2006
Amkor Technology, Inc. reported record Q2 sales of $687 million, up 40 percent year-over-year and up 6percent from Q1.
Amkor's Q2 net income was $24 million, compared with a net loss of $52 million in Q2 2005.
During Q2, in connection with refinancing transactions to address near-term debt maturities, Amkor recorded charges, with no net tax effect, of $28 million. Second quarter gross margin rose to 25 percent from 24 percent in Q1.
The record sales and units in Q2 were driven by high performance applications, cell phones, and other portable devices, the company said in a statement.
"I am pleased with our performance this quarter, as we realized continued strong growth in flip chip, 3D packaging and test, consistent with the strategic investments we've made in these areas during the past two years," said James Kim, Amkor's chairman and CEO. "During the quarter, we continued to build on our industry leadership in a variety of advanced package applications."
During Q2, Amkor started the build out of its new wafer bumping and test facility in Singapore and its new assembly and test factory in Shanghai. Depreciation in expense and other costs associated with these factories will continue to influence gross margin until the company builds a critical mass of revenue in these operations, Amkor said.
Looking ahead to Q3, Amkor expects sales flat to up 2 percent from Q2, with gross margin in the range of 24 percent to 25 percent and net income in the range of 23 cents to 27 cents per diluted share.
Separately, Amkor also announced today that its board has formed a special committee of independent directors to undertake a voluntary review of Amkor's historical stock option practices, amidst the current stock option backdating allegations throughout companies in the tech industry. The committee will be assisted by independent counsel.
