Amkor expects sales to be down as much as 25%

The packaging specialist says Q4 sales will be down 23% to 25% on Q3's sales of $720 million, compared to its prior expectations for a sequential decline of 15% to 20%.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 1/12/2009

Amkor Technology Inc has become the latest on a growing  list of companies to downgrade its Q4 guidance.

The Chandler, Ariz-based packaging specialist today announced that its Q4 sales will be down  23% to 25% on Q3's sales of $720 million. That estimate compares to Amkor's prior estimate for a sequential decline of 15% to 20%, made on October 29, 2008.

Amkor said it made the revision on further weakness in consumer spending during the December quarter and inventory management efforts by customers.

The estimate changes come after semiconductor industry bellwether Intel last week downwardly revised its Q4 guidance. 

Amkor reaffirmed that gross margin for the quarter is expected to remain in its previously announced guidance range of 18% to 21%, despite the greater than anticipated sequential decline in net sales. However, gross margin is affected by a number of estimates and factors which are still being reviewed and the final gross margin for the fourth quarter could vary, the company said. Q3 gross margin was 19%.

Amkor is slated to announce its Q4 and full-year 2008 financial results on February 12.