Amkor Technology Reports Financial Results for the First Quarter 2021

Rhea-AI Summary

Amkor Technology (AMKR) reported a record first-quarter revenue of $1.33 billion, marking a 15% year-on-year increase. Strong performance in Advanced packaging and a 13% growth in the Mainstream segment contributed to results. Gross margin improved to 20.0%, with operating income of $144 million and an EPS of $0.49. For Q2 2021, Amkor forecasts revenue between $1.29 billion and $1.39 billion, while noting potential capacity constraints in wafers and substrates that may impact supply chains.

Positive

• First-quarter revenue reached $1.33 billion, a 15% increase year-over-year.
• Gross margin improved to 20.0%, up from 16.4% in Q1 2020.
• Operating income rose to $144 million with a 10.9% operating income margin.
• EPS of $0.49 represents a new record for the first quarter.
• Solid demand across key markets with expectations to outgrow the semiconductor market in 2021.

Negative

• Forecasted Q2 revenue range considers potential capacity constraints in wafers and substrates.
• Gross margin expected to decrease to between 17% and 20% for Q2.

Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the first quarter ended March 31, 2021.

“Amkor delivered a first quarter revenue record of $1.33 billion, a 15% increase over the first quarter of last year,” said Giel Rutten, Amkor’s president and chief executive officer. “Continued strength in Advanced packaging and year-on-year growth of 13% in our Mainstream business led to better than seasonal results in Communications and to sequential growth in Automotive & Industrial, Consumer, and Computing end markets.”

Results		Q1 2021		Q4 2020 (1)		Q1 2020
		($ in millions, except per share data)
Net sales		$1,326		$1,371		$1,153
Gross margin		20.0%		20.3%		16.4%
Operating income		$144		$159		$84
Operating income margin		10.9%		11.6%		7.3%
Net income attributable to Amkor		$120		$127		$64
Earnings per diluted share		$0.49		$0.52		$0.26
EBITDA (2)		$280		$288		$210
(1) Q4 2020 net income includes a $20 million discrete income tax benefit, or $0.08 per diluted share, primarily related to changes in the valuation of certain deferred tax assets. (2) EBITDA is a non-GAAP financial measure. The reconciliation to the comparable GAAP financial measure is included below under “Selected Operating Data.”

“We continued to operate at high utilization rates across our factories in the quarter, driving significant improvement in year-on-year profitability to 20% gross margin and 11% operating income margin. EPS of $0.49 is a first quarter record,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “Strong operating results and a solid balance sheet provide us the ability to invest in future growth, particularly for Advanced packaging technologies.”

At March 31, 2021, total cash and short-term investments was $0.8 billion, and total debt was $1.1 billion.

We paid a quarterly dividend of $0.04 per share, representing a dividend payment of $9.7 million in the aggregate, on March 15, 2021 to stockholders of record as of February 23, 2021. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors.

Business Outlook

“We believe the second quarter will be another solid quarter, with revenue of $1.34 billion at the midpoint of our guidance. Our forecast reflects capacity constraints in wafers and substrates that are expected to affect portions of the supply chain in the near term, and we are working closely with our customers and suppliers to mitigate the impact,” said Rutten. “Overall, we continue to see solid demand across all of our key markets and remain confident that our strong position in Advanced packaging will enable us to outgrow the semiconductor market in 2021.”

Second quarter 2021 outlook (unless otherwise noted):

• Net sales of $1.29 billion to $1.39 billion
• Gross margin of 17% to 20%
• Net income of $77 million to $127 million, or $0.32 to $0.52 per diluted share
• Full year 2021 capital expenditures of approximately $700 million

Conference Call Information

Amkor will conduct a conference call on Monday, April 26, 2021, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at https://ir.amkor.com. You may also access the call by dialing 1-877-407-4019 or 1-201-689-8337. A replay of the call will be made available at Amkor’s website or by dialing 1-877-660-6853 or 1-201-612-7415 (conference ID 13718212).

About Amkor Technology, Inc.

Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test and is now a strategic manufacturing partner for the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information, visit www.amkor.com.

 

AMKOR TECHNOLOGY, INC. Selected Operating Data
	Q1 2021				Q4 2020				Q1 2020
Net Sales Data:
Net sales (in millions):
Advanced products (1) (3)	$	921			$	972			$	795
Mainstream products (2) (3)	405				399				358
Total net sales	$	1,326			$	1,371			$	1,153
Packaging services	85		%		85		%		85		%
Test services	15		%		15		%		15		%
Net sales from top ten customers	61		%		61		%		67		%
End Market Data:
Communications (handheld devices, smartphones, tablets)	40		%		46		%		38		%
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)	21		%		19		%		24		%
Automotive, industrial and other (driver assist, infotainment, performance, safety)	22		%		19		%		23		%
Computing (data center, infrastructure, PC/laptop, storage)	17		%		16		%		15		%
Total	100		%		100		%		100		%
Gross Margin Data:
Net sales	100.0		%		100.0		%		100.0		%
Cost of sales:
Materials	43.2		%		44.6		%		45.3		%
Labor	13.8		%		12.9		%		14.2		%
Other manufacturing	23.0		%		22.2		%		24.1		%
Gross margin	20.0		%		20.3		%		16.4		%

(1) Advanced products include flip chip, memory and wafer-level processing and related test services.
(2) Mainstream products include all other wirebond packaging and related test services.
(3) Beginning in 2021, we are reporting memory net sales in Advanced products. Previously memory net sales were reported in Mainstream products. Prior year amounts were reclassified to conform to current year presentation.

AMKOR TECHNOLOGY, INC.
Selected Operating Data

In this press release we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, our ability to service debt and our ability to fund capital expenditures. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.

Non-GAAP Financial Measure Reconciliation:
	Q1 2021				Q4 2020				Q1 2020
	(in millions)
EBITDA Data:
Net income	$	120			$	127			$	64
Plus: Interest expense	13				15				17
Plus: Income tax expense	12				13				5
Plus: Depreciation & amortization	135				133				124
EBITDA	$	280			$	288			$	210

 

AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	For the Three Months Ended March 31,
	2021					2020
	(In thousands, except per share data)
Net sales	$	1,326,150				$	1,152,616
Cost of sales	1,060,616					963,708
Gross profit	265,534					188,908
Selling, general and administrative	76,768					72,582
Research and development	44,318					32,253
Total operating expenses	121,086					104,835
Operating income	144,448					84,073
Interest expense	12,673					17,045
Other (income) expense, net	89					(2,315		)
Total other expense, net	12,762					14,730
Income before taxes	131,686					69,343
Income tax expense	11,667					4,846
Net income	120,019					64,497
Net income attributable to non-controlling interests	(210		)			(608		)
Net income attributable to Amkor	$	119,809				$	63,889
Net income attributable to Amkor per common share:
Basic	$	0.49				$	0.27
Diluted	$	0.49				$	0.26
Shares used in computing per common share amounts:
Basic	243,267					240,919
Diluted	245,129					241,333

 

AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)
	March 31, 2021					December 31, 2020
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	650,274				$	698,002
Restricted cash	933					1,007
Short-term investments	163,693					133,769
Accounts receivable, net of allowances	950,015					962,643
Inventories	307,545					297,293
Other current assets	41,594					40,218
Total current assets	2,114,054					2,132,932
Property, plant and equipment, net	2,623,470					2,566,002
Operating lease right of use assets	141,247		{ "@context": "https://schema.org", "@type": "FAQPage", "name": "Amkor Technology Reports Financial Results for the First Quarter 2021 FAQs", "mainEntity": [ { "@type": "Question", "name": "What were Amkor's Q1 2021 earnings?", "acceptedAnswer": { "@type": "Answer", "text": "Amkor reported Q1 2021 revenue of $1.33 billion, with a gross margin of 20.0% and EPS of $0.49." } }, { "@type": "Question", "name": "What is the revenue outlook for Amkor in Q2 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Amkor expects Q2 2021 revenue to range between $1.29 billion and $1.39 billion." } }, { "@type": "Question", "name": "How did Amkor perform compared to Q1 2020?", "acceptedAnswer": { "@type": "Answer", "text": "In Q1 2021, Amkor's revenue increased by 15% compared to Q1 2020, with significant improvements in gross margin and operating income." } }, { "@type": "Question", "name": "What is Amkor's dividend payment for Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Amkor paid a dividend of $0.04 per share on March 15, 2021, totaling $9.7 million." } } ] } FAQ What were Amkor's Q1 2021 earnings? Amkor reported Q1 2021 revenue of $1.33 billion, with a gross margin of 20.0% and EPS of $0.49. What is the revenue outlook for Amkor in Q2 2021? Amkor expects Q2 2021 revenue to range between $1.29 billion and $1.39 billion. How did Amkor perform compared to Q1 2020? In Q1 2021, Amkor's revenue increased by 15% compared to Q1 2020, with significant improvements in gross margin and operating income. What is Amkor's dividend payment for Q1 2021? Amkor paid a dividend of $0.04 per share on March 15, 2021, totaling $9.7 million. Amkor Technology Inc NASDAQ:AMKR AMKR Rankings #1133 Ranked by Market Cap #1666 Ranked by Dividends AMKR Latest News Nov 19, 2024 Amkor Technology to Present at Upcoming Conferences Nov 14, 2024 Lightmatter and Amkor Technology Partner to Build World’s Largest 3D Photonics Package Nov 13, 2024 Amkor Technology Declares Increase in Quarterly Dividend and Special Dividend Oct 28, 2024 Amkor Technology Reports Financial Results for the Third Quarter 2024 Oct 7, 2024 Amkor Technology to Announce Third Quarter 2024 Financial Results on October 28, 2024 AMKR Stock Data Market Cap 6.54B Float 111.75M Insiders Ownership 55.48% Institutions Ownership 44.62% Short Percent 2.09% Industry Semiconductor Equipment & Materials Sector Semiconductors & Related Devices Website Link Country United States of America City TEMPE Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit Google News © 2020-2024 StockTitan.net