Amkor Sees Strong Q3, But Q4 will Decline
Online staff -- Electronic News, 10/29/2002
Amkor Technology Inc. today posted improved Q3 revenue although it warned investors to expect a dip in Q4.
Chandler, Ariz.-based Amkor posted Q3 revenue of $454 million, up 11 percent sequentially and up 36 percent from the year-ago quarter. Of this, $394 million was assembly and test revenue, a 12 percent increase from Q2 and above the company’s expectations. Wafer fab revenue was $60 million, slightly above Q2’s $59 million.
Based on its customers’ forecasts, Amkor said it expects assembly and test revenue to drop by about 5 percent sequentially in Q4, with wafer fab revenue at about $50 million.
The company posted a Q3 net loss of $59 million, or 36 cents per share, which included $11 million in after-tax charges associated with factory consolidation and operating efficiency initiatives. Excluding such charges, Amkor’s Q3 net loss was $48 million, or 29 cents per share. That compares to a net loss of $100 million, or 62 cents per share in Q3 2001.
Amkor said its exit from the foundry business has served its balance sheet well in Q3.
"During the third quarter we took an important step in our goal of monetizing our investment in Anam Semiconductor with the sale of 20 million ASI shares to Dongbu," said James Kim, Amkor’s chairman and CEO, in a statement. "We received $59 million as the initial payment from the transaction, increasing our cash balance to $235 million. Our ownership interest in ASI has been reduced to 21 percent."
Leaving the foundry business behind, Amkor has placed greater emphasis on its assembly and test business.
"Our core assembly and test business has increased 36 percent since the first quarter, which is a testament to the strength of the outsourcing trend and Amkor’s leading market position," said John Boruch, Amkor’s president and COO, in a statement. "During the year we have steadily gained market share."
The company reported $31 million in capital expenditures for Q3, and Amkor said its capital spending remains at about $100 million |
