Amkor Technology reports sharp Q1 declines

Thursday, April 30, 2009

Phoenix Business Journal


Amkor Technology Inc. reported steep declines in its revenue and net income during the first quarter, the result of a global slowdown that has hit the semiconductor industry particularly hard.

Chandler-based Amkor (Nasdaq:AMKR) reported a net loss for the quarter of $22 million, a significant drop from a net profit of $71 million for the same quarter last year. The loss amounted to about 12 cents per share.

The earnings came on revenue of $388 million, down about 44 percent from a year earlier, according to the company.

Amkor should see an increase in sales for the second quarter, but is still forecasting a loss of about 4 cents per share, said James Kim, the company’s chairman and CEO. Beyond that, it is difficult to forecast given the economic climate, he said.

Amkor, which provides semiconductor assembly and testing services, recently completed transactions that retired old debt by extending about $250 million in convertible senior subordinate notes. The moves helped the company’s liquidity position, said Joanne Solomon, Amkor’s chief financial officer.