"As part of our 2017 Japan factory consolidation plan, we incurred approximately $10 million of one-time costs in the third quarter,” said Megan Faust, Amkor’s corporate vice president and chief financial officer. “After completion of the plan in the fourth quarter, we expect annualized savings from this initiative of around $30 million, including a $25 million reduction in manufacturing costs."
"Our focus on CapEx discipline has driven improved free cash flow," added Faust. "During the quarter we redeemed $200 million of the outstanding $400 million of our Senior Notes due 2021 using cash on hand. This will result in annualized pre-tax interest savings of approximately $13 million."
Cash and cash equivalents were $519 million and total debt was $1.4 billion, at September 30, 2017.
"We expect solid fourth quarter demand in mobile communications and our other end markets, leading to another year of record sales for Amkor," said Kelley.
Fourth quarter and full year 2017 outlook:
- Net sales of $1.05 billion to $1.13 billion
- Gross margin of 17% to 18.5%
- Net income of $34 million to $54 million, or $0.14 to $0.23 per share
- Net sales of approximately $4.13 billion
- Gross margin of approximately 17.5%
- Net income of approximately $205 million, or around $0.85 per share (including an after tax gain of $0.34 per share from sale of K1 factory in Korea)
- Full year capital expenditures of approximately $550 million
Conference Call Information
Amkor will conduct a conference call on Monday, October 30, 2017, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor's website: www.amkor.com. You may also access the call by dialing 1-877-645-6380 or 1-404-991-3911. A replay of the call will be made available at Amkor's website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID 98894733). The webcast is also being distributed over NASDAQ OMX's investor distribution network to both institutional and individual investors. Institutional investors can access the call via NASDAQ OMX's password-protected event management site, Street Events ( www.streetevents.com).
About Amkor Technology, Inc.
Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test, and is now a strategic manufacturing partner for more than 250 of the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operating base includes 10 million square feet of floor space, with production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the U.S. For more information, visit www.amkor.com.
AMKOR TECHNOLOGY, INC.
Selected Operating Data
|Q3 2017||Q2 2017||Q3 2016|
|Net Sales Data:|
|Net sales (in millions):|
|Total net sales||$||1,135||$||989||$||1,086|
|Net sales from top ten customers||67||%||67||%||68||%|
|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)||46||%||42||%||47||%|
|Automotive and industrial (infotainment, safety, performance, comfort)||24||%||26||%||24||%|
|Consumer (televisions, set top boxes, gaming, portable media, digital cameras)||13||%||14||%||14||%|
|Networking (servers, routers, switches)||10||%||10||%||9||%|
|Computing (PCs, hard disk drives, printers, peripherals, servers)||7||%||8||%||6||%|
|Gross Margin Data:|
|Cost of sales:|