Amkor Confirms Forecast of $2B Revs for 2004
Online staff -- 4/27/2004
Electronic News
Sales remained relatively flat sequentially -- up 1 percent -- for assembly and test service provider Amkor Technology Inc., reflecting the normal seasonally down Q1.
But year-over-year, sales grew 36 percent to $465 million for Q1 of 2004 for the Chandler, Ariz.-based company.
Net income for the quarter was down to $12 million or 7 cents per share compared with $15 million or 9 cents per share for the same period a year ago. The Q1 net income for 2004 includes a charge of $2.7 million, while the Q1 2003 net income included a loss of $40 million, offset by income of $55 million in connection with its divested wafer fab services business.
"While first quarter revenue came in slightly below our forecasted range, we nonetheless were pleased to achieve sequential revenue growth, in contrast to what is normally a seasonally down first quarter," said James Kim, chairman and CEO, in a statement.
"The increase in Q1 revenue and continued growth in our customers' long range forecasts suggest that we are in the midst of a broad-based industry recovery, and we remain confident of exceeding $2 billion in revenue in 2004," he said.
In spite of the bright expectations for the year, not all businesses performed in Q1.
"Due to relative weakness in our cell phone products and production constraints at foundries, first quarter demand for some advanced package products did not materialize as forecast," said Bruce Freyman, president and COO.
"During the first quarter we increased capacity in several package products which were on allocation for much of 2003 in order to get ahead of demand, and we are now in a more favorable position to support expected growth of these package products through 2004," he said "We also experienced strong growth in our legacy package products during the quarter, which further suggests that integrated device manufacturers have generally not invested in additional assembly capacity."
For Q2, Amkor is forecasting a sequential revenue increase of between 5 percent and 8 percent, and net income in the range of 17 to 22 cents per diluted share. |
