Amkor cuts workforce by 10% and reports loss, foundry utilization slips to 40%
Semiconductor Business News
(04/26/01 19:51 p.m. EST)
CHANDLER, Ariz. -- Citing a downturn in its IC-packaging and silicon foundry businesses, Amkor Technology Inc. here today announced it will reduce its workforce by 10% while reporting a loss for the quarter.
Amkor is also trimming its capital expenditure budget to about $175 million for 2001, compared with $480 million in 2000.
Amkor, the world's largest chip-packaging house, reported sales of $481 million for the first quarter ended March 31, a 13.3% drop compared with $555 million in the like period a year ago.
IC-test and assembly sales were $439 million in the quarter, down 6% in the first period a year ago and 17% sequentially.
In its struggling silicon foundry business, the company reported sales of $41 million in the first quarter, down 52.3% from the $86 million figure reported a year ago and $108 million in the last fourth quarter of 2000.
Amkor's fab utilization rate was only 40%. In the second quarter, the company expects its wafer fab revenue to be flat.
Excluding amortization of goodwill, acquired intangibles, and a one-time, non-cash amortization of debt issuance costs, Amkor reported a first-quarter net loss of $31 million, or $0.21 per share, compared to a profit of $47 million, or $0.34 per share, a year ago.
Including amortization of goodwill and acquired intangibles, the first-quarter loss was $69 million, or $0.45 per share, compared with a profit of $37 million, or $0.27 per share, a year ago.
And it's not getting any better for the company. "Based on our current read of customer forecasts, we presently expect that second quarter revenues will be sequentially lower, perhaps 15% or 20%," said John Boruch, Amkor's president.
"However, we think April could be the low month for the quarter, and that sales will strengthen gradually through June and more sharply into the second half," he said.
Overall assembly capacity utilization was approximately 57% in the first quarter, compared with 80% a year ago and 75% in the fourth quarter of 2000.
Assembly unit shipments declined 12% from a year ago and 20% sequentially. Average selling prices declined approximately 4% during the first quarter. |
