Business Outlook
"Demand is solid in nearly all end markets," said Kelley. "We expect Q4 revenue to be around $1.03 billion. For 2016, we expect total revenue of about $3.9 billion, a $1 billion increase over 2015.”
Fourth quarter and full year 2016 outlook:
Fourth quarter
- Net sales of $990 million to $1.07 billion, down 1% to 9% from the prior quarter
- Gross margin of 19% to 23%
- Net income of $46 million to $82 million, or $0.19 to $0.34 per share
Full year
- Net sales of approximately $3.9 billion, up from $2.9 billion in 2015
- Gross margin of approximately 17.5%, up from 16.6% in 2015
- Net income of approximately $130 million, or around $0.55 per share, up from $0.22 in 2015
- Capital expenditures of approximately $650 million, unchanged from our previous forecast
Our Q4 and full year guidance includes the anticipated receipt of approximately $30 million of insurance payments related to the Japan earthquakes.
Conference Call Information
Amkor will conduct a conference call on Monday, October 31, 2016, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor's website: www.amkor.com. You may also access the call by dialing 1-877-645-6380 or 1-404-991-3911. A replay of the call will be made available at Amkor's website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID 94698432). The webcast is also being distributed over NASDAQ OMX's investor distribution network to both institutional and individual investors. Institutional investors can access the call via NASDAQ OMX's password-protected event management site, Street Events ( www.streetevents.com).
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 more than 250 of the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operating base includes more than 8 million square feet of floor space, with production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the U.S. For more information, visit www.amkor.com.
| AMKOR TECHNOLOGY, INC. | |||||||||||||||
| Selected Operating Data | |||||||||||||||
| Q3 2016 | Q2 2016 | Q3 2015* | |||||||||||||
| Net Sales Data: | |||||||||||||||
| Net sales (in millions): | |||||||||||||||
| Advanced products** | $ | 480 | $ | 394 | $ | 365 | |||||||||
| Mainstream products*** | 606 | 523 | 369 | ||||||||||||
| Total net sales | $ | 1,086 | $ | 917 | $ | 734 | |||||||||
| Packaging services | 82 | % | 83 | % | 85 | % | |||||||||
| Test services | 18 | % | 17 | % | 15 | % | |||||||||
| Net sales from top ten customers | 68 | % | 67 | % | 61 | % | |||||||||
| End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers) : | |||||||||||||||
| Communications (smart phones, tablets, handheld devices, wireless LAN) | 47 | % | 44 | % | 55 | % | |||||||||
| Automotive and industrial (infotainment, safety, performance, comfort) | 24 | % | 25 | % | 13 | % | |||||||||
| Consumer (televisions, set top boxes, gaming, portable media, digital cameras) | 14 | % | 14 | % | 12 | % | |||||||||
| Networking (servers, routers, switches) | 9 | % | 11 | % | 12 | % | |||||||||
| Computing (PCs, hard disk drives, printers, peripherals, servers) | 6 | % | 6 | % | 8 | % | |||||||||
| Total | 100 | % | 100 | % | 100 | % | |||||||||
| Gross Margin Data: | |||||||||||||||
| Net sales | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
| Cost of sales: | |||||||||||||||
| Materials | 37.2 | % | 37.7 | % | 36.8 | % | |||||||||
| Labor | 14.6 | % | 16.0 | % | 14.9 | % | |||||||||
| Other manufacturing | 28.5 | % | 32.0 | % | 31.1 | % | |||||||||
| Gross margin | 19.7 | % | 14.3 | % | 17.2 | % | |||||||||
