Amkor Tech 1Q Sales $417.5M Vs $464.6M, -10%
DOW JONES NEWSWIRES
May 4, 2005 7:07 p.m.
Analysts surveyed: 11
First Call EPS estimates can reflect either net income, operating income or funds from operations.
The company's earnings figure is on a diluted basis. First Call assumes earnings estimates from analysts are on a diluted basis.
CHANDLER, Ariz. -- Amkor Technology Inc. (AMKR) swung to a first-quarter loss as sales fell 10% and the company added that second-quarter profitability will be "constrained by continued pricing pressure" and higher spending to support expectations for the second half of 2005.
Amkor, which offers testing and packaging services to chip makers, in a press release Wednesday posted a first-quarter net loss of $119 million, or 68 cents a share, compared with year-earlier net income of $11 million, or 6 cents a share.
Results for the recent period included a charge for a legal settlement of $50 million, or 28 cents a share. Year-earlier results included charges of 3 cents a share for debt retirement and a legal settlement.
Sales fell to $418 million from $464.7 million a year earlier.
Wall Street expected a loss of 37 cents a share, on sales of $408.5 million, according to the mean estimates of analysts polled by Thomson First Call.
Amkor's Chief Executive James Kim said in a statement that first-quarter results "reflect a bottoming out of the semiconductor industry's current correction," as well as higher costs for capacity expansion.
The company said it is investing in key growth areas, including wafer bumping, flip chip assembly, probe and final tests, which it said will drive revenue in the second half of 2005 and into 2006.
Capital spending in the second quarter is forecast at $145 million, up from $47 million in the first quarter.
Amkor expects a second-quarter loss of 28 cents to 32 cents a share, with sales up sequentially 10% to 13%, suggesting sales of $459.8 million to $472.3 million. The company added that it expects a second-quarter gross margin of 12% to 14%, up from 10.4% in the first quarter.
Analysts on average expect a second-quarter loss of 29 cents a share, on revenue of $433.5 million, according to Thomson First Call. In after-hours trading, Amkor changed hands recently at $3.10 a share, down 33 cents from its closing price Tuesday of $3.43.
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Amkor Technology Inc. - Chandler, Ariz.
1st Quar March 31:
2005 2004
Sales $417,481,000 $464,646,000
Net income a (119,070,000 b 10,910,000
Avg shrs (diluted) 175,718,000 180,202,000
Shr earns
Net income a (.68) b .06
a. Includes charge of 28 cents a share for legal settlement.
b. Includes charges of 3 cents a share for legal settlement and debt prepayment
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