Amkor Tech 4Q Loss 21c/Shr Vs Net 13c
DOW JONES NEWSWIRES
February 8, 2005 6:52 p.m.
WASHINGTON -- The following table is a summary of Amkor Technology Inc.'s (AMKR) financial information for its fourth quarter ended Dec. 31, 2004, as disclosed in a filing Tuesday with the Securities and Exchange Commission.
4Q Ended Dec. 31:
2004 2003
Net revenue $453,254,000 $458,906,000
Operating income 7,896,000 57,278,000
Net income (36,092,000) 22,639,000
Net income a share (0.21) 0.13
Figures in parentheses are losses.
Amkor Technology, West Chester, Pa., provides semiconductor packaging and test services.
-By Paulette Chu, Dow Jones Newswires; 202-862-1355; paulette.chu@dowjones.com
CHANDLER, Ariz. (Dow Jones)--Amkor Technology Inc. (AMKR), hurt by margin pressure and declining revenue, swung to a fourth-quarter loss and provided a first-quarter bottom-line forecast worse than analysts' expectations.
In a press release Tuesday, Amkor reported a fourth-quarter loss of $36.1 million, or 21 cents a share, reversing a year-earlier profit of $22.6 million, or 13 cents a share.
The results missed analysts' forecast of 19 cents a share, based on a Thomson First Call average estimate. However, the loss was in line with Amkor's October projection of 16 cents to 23 cents a share.
Amkor, a provider of semiconductor assembly and test services, said fourth-quarter revenue fell to $453.3 million from $458.9 million a year earlier. Wall Street expected revenue of $455 million, while Amkor's own forecast called for a top line of $441.8 million to $466.3 million.
In after-hours trading, Amkor's shares recently dropped nearly 10% to $4.36, according to Inet. The shares closed the regular session at $4.84, up 15 cents, or 3.2%.
Amkor partly attributed its weakened results to certain initiatives enacted last year. Those plans included expanding some operations, an increased focus on certain chip and test equipment, a supply pact with International Business Machines Corp. (IBM) and the July acquisition of Unitive Inc.
"These initiatives constrained cash flow and negatively impacted profitability during 2004, and the short term costs associated with these initiatives have been further impacted by weakening business conditions in the semiconductor industry," said Amkor Chairman and Chief Executive James Kim in the release. "Nonetheless, we believe this strategy represents a strong platform for enhancing shareholder value over the long term."
Amkor's fourth-quarter gross margin dropped to 16% from 18% in the third quarter, reflecting the lower revenue and increased factory operating costs tied to the expansion plan. Amkor said it expects continued margin pressure due to lower asset utilization, competitive pricing and the absorption of costs from recent acquisitions.
The company predicts a first-quarter loss of 34 cents to 40 cents a share, worse than analysts' average projection for a loss of 23 cents a share.
Amkor also projects its gross margin will fall further to 10% to 12%, and sees revenue down 8% to 12% from the fourth quarter. The prediction suggests revenue of $399 million to $417 million, below First Call's forecast of $439 million.
Amkor said its customers remain cautious about end-market demand are exercising tight control over inventory. The company said the "high degree of uncertainty" in the semiconductor sector is reflected by customers' forecasts going into what is typically a seasonally lower first quarter.
In the year-ago first quarter, Amkor earned $12.2 million, or 7 cents a share, on revenue of $464.6 million.
Company Web site: amkor.com |
