Fourth Quarter 2012
- Net sales $723 million
- Gross margin 18%
- Net income $27 million
- Earnings per diluted share $0.13
Full Year 2012
- Net sales $2.76 billion
- Adjusted gross margin 17%
- Adjusted net income $95 million
- Adjusted earnings per diluted share $0.46
Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter ended December 31, 2012, with net sales of $723 million, net income of $27 million, and earnings per diluted share of $0.13. For the full year 2012, Amkor reported net sales of $2.76 billion, adjusted net income of $95 million and adjusted earnings per diluted share of $0.46.
"Looking ahead to the first quarter 2013, we are seeing seasonal demand patterns with revenues expected to be down 5% to 11% from the fourth quarter 2012"
"We are pleased with our fourth quarter results and improvements over the prior quarters of 2012 and the fourth quarter of 2011," said Ken Joyce, Amkor's president and chief executive officer. "Bolstered by solid sales growth in mobile communications, results for the quarter came in at the higher end of our expectations. Our investments in support of the communications end market are paying off and continue to gain momentum. Driven by notable strength in smartphones and tablets, our communications revenue grew 12% and represented nearly 50% of our total sales in 2012."
Selected financial information for the fourth quarter 2012 is as follows:
Net Sales: $723 million, up 4% from $695 million in the prior quarter, and up 6% from $684 million in the fourth quarter of 2011
Gross Margin: 18%, compared to 17% in the prior quarter, and 16% in the fourth quarter of 2011
Net Income: $27 million, up from $22 million in the prior quarter, and up from $25 million in the fourth quarter of 2011
Earnings Per Diluted Share: $0.13, up from $0.11 in the prior quarter, and up from $0.11 in the fourth quarter of 2011
Selected financial information for the full year 2012 is as follows:
Net Sales: $2.76 billion, down 1% from $2.78 billion in 2011
Adjusted Gross Margin: 17%, compared to 18% in 2011
Adjusted Net Income: $95 million, up 3% from $92 million in 2011
Adjusted Earnings Per Diluted Share: $0.46, up 18% from $0.39 in 2011
The adjusted gross margin, adjusted net income and adjusted earnings per diluted share presented above for the full year 2012 exclude a loss contingency we recognized in the second quarter of 2012 of $34 million ($33 million, net of tax) relating to our pending patent license arbitration with Tessera, Inc. and are non-GAAP measures. Selected operating data for the fourth quarter and full year 2012, and a reconciliation of the full year 2012 non-GAAP measures presented above to the comparable GAAP measures, are included in a section below before the financial statements.
"Capital additions were $86 million during the fourth quarter and $533 million for the full year 2012, primarily in support of customers in smartphones and tablets," said Joanne Solomon, Amkor's executive vice president and chief financial officer. "We accelerated the purchase of certain packaging and test equipment to meet demand for communications during the quarter."
Cash and cash equivalents were $413 million, and net debt was $1.1 billion, at December 31, 2012.
"Looking ahead to the first quarter 2013, we are seeing seasonal demand patterns with revenues expected to be down 5% to 11% from the fourth quarter 2012," said Joyce. "We are currently planning capital additions of around $450 million for 2013 primarily to support the growth opportunities we see in mobile communications. We are also planning an additional $150 million of spending for the acquisition of land and construction relating to our previously announced new factory and R&D center in South Korea."
Based upon currently available information, we have the following expectations for the first quarter 2013:
Net sales of $640 million to $690 million, down 5% to 11% from the prior quarter
Gross margin of 14% to 17%
Net loss of $5 million to net income of $16 million, or ($0.03) to $0.09 per diluted share
Capital additions of around $125 million