Amkor Technology Reports Financial Results for the First Quarter 2021
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.
- 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 $0.49 represents a new record for the first quarter.
- Solid demand across key markets with expectations to outgrow the semiconductor market in 2021.
- Forecasted Q2 revenue range considers potential capacity constraints in wafers and substrates.
- Gross margin expected to decrease to between 17% and 20% for Q2.
Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the first quarter ended March 31, 2021.
“Amkor delivered a first quarter revenue record of
Results |
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Q1 2021 |
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Q4 2020 (1) |
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Q1 2020 |
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($ in millions, except per share data) |
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Net sales |
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Gross margin |
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Operating income |
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Operating income margin |
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Net income attributable to Amkor |
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Earnings per diluted share |
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EBITDA (2) |
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(1) Q4 2020 net income includes a |
“We continued to operate at high utilization rates across our factories in the quarter, driving significant improvement in year-on-year profitability to
At March 31, 2021, total cash and short-term investments was
We paid a quarterly dividend of
Business Outlook
“We believe the second quarter will be another solid quarter, with revenue of
Second quarter 2021 outlook (unless otherwise noted):
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Net sales of
$1.29 billion to$1.39 billion -
Gross margin of
17% to20% -
Net income of
$77 million to$127 million , or$0.32 t o$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 |
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Q1 2021 |
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Q4 2020 |
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Q1 2020 |
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Net Sales Data: |
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Net sales (in millions): |
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Advanced products (1) (3) |
$ |
921 |
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$ |
972 |
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$ |
795 |
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Mainstream products (2) (3) |
405 |
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399 |
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358 |
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Total net sales |
$ |
1,326 |
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$ |
1,371 |
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$ |
1,153 |
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Packaging services |
85 |
% |
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85 |
% |
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85 |
% |
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Test services |
15 |
% |
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15 |
% |
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15 |
% |
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Net sales from top ten customers |
61 |
% |
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61 |
% |
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67 |
% |
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End Market Data: |
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Communications (handheld devices, smartphones, tablets) |
40 |
% |
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46 |
% |
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38 |
% |
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Consumer (connected home, set-top boxes, televisions, visual imaging, wearables) |
21 |
% |
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19 |
% |
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24 |
% |
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Automotive, industrial and other (driver assist, infotainment, performance, safety) |
22 |
% |
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19 |
% |
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23 |
% |
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Computing (data center, infrastructure, PC/laptop, storage) |
17 |
% |
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16 |
% |
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15 |
% |
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Total |
100 |
% |
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100 |
% |
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100 |
% |
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Gross Margin Data: |
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Net sales |
100.0 |
% |
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100.0 |
% |
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100.0 |
% |
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Cost of sales: |
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Materials |
43.2 |
% |
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44.6 |
% |
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45.3 |
% |
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Labor |
13.8 |
% |
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12.9 |
% |
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14.2 |
% |
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Other manufacturing |
23.0 |
% |
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22.2 |
% |
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24.1 |
% |
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Gross margin |
20.0 |
% |
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20.3 |
% |
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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: |
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Q1 2021 |
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Q4 2020 |
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Q1 2020 |
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(in millions) |
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EBITDA Data: |
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Net income |
$ |
120 |
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$ |
127 |
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$ |
64 |
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Plus: Interest expense |
13 |
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15 |
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17 |
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Plus: Income tax expense |
12 |
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13 |
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5 |
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Plus: Depreciation & amortization |
135 |
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133 |
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124 |
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EBITDA |
$ |
280 |
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$ |
288 |
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$ |
210 |
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AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
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For the Three Months Ended March 31, |
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2021 |
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2020 |
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(In thousands, except per share data) |
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Net sales |
$ |
1,326,150 |
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$ |
1,152,616 |
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Cost of sales |
1,060,616 |
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963,708 |
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Gross profit |
265,534 |
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188,908 |
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Selling, general and administrative |
76,768 |
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72,582 |
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Research and development |
44,318 |
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32,253 |
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Total operating expenses |
121,086 |
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104,835 |
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Operating income |
144,448 |
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|
84,073 |
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Interest expense |
12,673 |
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17,045 |
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Other (income) expense, net |
89 |
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(2,315 |
) |
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Total other expense, net |
12,762 |
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14,730 |
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Income before taxes |
131,686 |
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69,343 |
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Income tax expense |
11,667 |
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4,846 |
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Net income |
120,019 |
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64,497 |
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Net income attributable to non-controlling interests |
(210 |
) |
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(608 |
) |
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Net income attributable to Amkor |
$ |
119,809 |
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$ |
63,889 |
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Net income attributable to Amkor per common share: |
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Basic |
$ |
0.49 |
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$ |
0.27 |
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Diluted |
$ |
0.49 |
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$ |
0.26 |
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Shares used in computing per common share amounts: |
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Basic |
243,267 |
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240,919 |
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Diluted |
245,129 |
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241,333 |
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AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) |
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March 31, 2021 |
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December 31, 2020 |
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(In thousands) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
650,274 |
|
|
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$ |
698,002 |
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Restricted cash |
933 |
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|
1,007 |
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Short-term investments |
163,693 |
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133,769 |
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Accounts receivable, net of allowances |
950,015 |
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962,643 |
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Inventories |
307,545 |
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297,293 |
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Other current assets |
41,594 |
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40,218 |
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Total current assets |
2,114,054 |
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2,132,932 |
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Property, plant and equipment, net |
2,623,470 |
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2,566,002 |
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Operating lease right of use assets |
141,247 |
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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:AMKRAMKR RankingsAMKR Latest NewsNov 19, 2024
Amkor Technology to Present at Upcoming Conferences
AMKR Stock Data
6.53B
111.73M
55.49%
44.58%
2.06%
Semiconductor Equipment & Materials
Semiconductors & Related Devices
United States of America
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