In the latest trading session, Amkor Technology (AMKR) closed at $20.45, marking a +2.82% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.94%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%. Coming into today, shares of the chip packaging and test services provider had gained 0.81% in the past month. In that same time, the Computer and Technology sector gained 3.9%, while the S&P 500 gained 1.67% ...

Summary of Amkor Technology (AMKR) FY Conference Call - May 13, 2025 Company Overview - Amkor Technology is an OSAT (Outsourced Semiconductor Assembly and Test) company providing services to semiconductor firms across automotive, communications, computing, and consumer markets [2][4] Key Strategic Pillars - **Advanced Packaging Technologies**: Focus on next-generation packaging solutions [3] - **Geographical Diversity**: Manufacturing footprint across eight countries, with plans to expand to nine [4] - **Customer Partnerships**: Close collaboration with leading market customers to support product adoption [3] Financial Performance - Q1 revenue was $1.32 billion, with Q2 projected at $1.425 billion [5] - The company is cautious about confirming second-half guidance due to trade and tariff uncertainties [10] Market Dynamics - **Communications Segment**: Positive momentum with socket regain expected, contributing to revenue recovery [10][15] - **Computing Segment**: Anticipated growth driven by AI applications and advanced packaging technologies [20][34] - **Automotive and Industrial**: Growth expected in advanced automotive segments like ADAS and infotainment, though legacy devices face inventory challenges [12][39] Pricing Environment - Competitive pricing in mainstream products due to high OSAT provider presence, while advanced packaging pricing remains stable [13][14] Customer Relationships - Significant revenue exposure to a major customer, with a focus on maintaining and expanding market share [17][18] - Long-term partnership opportunities with customers transitioning to new architectures [27][28] Growth Drivers - **AI and Data Center Applications**: Growth in 2.5D and RDL technologies, with a strong pipeline for future products [20][26] - **ARM-based CPUs**: Increasing adoption in data centers and PCs, driven by power efficiency [34][36] Testing Business Expansion - Plans to expand testing capabilities in Korea, focusing on turnkey solutions [46][49] Gross Margin and Utilization - Current gross margin impacted by ramping up the Vietnam facility, with expectations to return to 20% as utilization improves [50][52] Future Facilities and Investments - Groundbreaking for a new U.S. facility planned for the second half of 2025, with operations expected to start in 2027 [56][57] - $400 million grant from the government under the CHIPS Act to support the Arizona fab project [57][58] Conclusion - Amkor Technology emphasizes its strategic pillars of technology, geographical diversity, and customer collaboration as key differentiators in the semiconductor industry [69]

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Investment Rating - The report assigns a neutral investment rating for Amkor, indicating expectations of performance within a range of -10% to +10% relative to the benchmark index over the next six months [49]. Core Insights - Amkor's Q1 2025 revenue reached $1.322 billion, a year-over-year decrease of 3.2% and a quarter-over-quarter decline of 18.8%, aligning closely with the upper end of the performance guidance [3][8]. - The gross margin for Q1 2025 was 11.9%, down 2.9 percentage points year-over-year and 3.2 percentage points quarter-over-quarter, while net profit was $26 million, reflecting a significant decline of 64.4% year-over-year [3][8]. - The company anticipates Q2 2025 revenue guidance between $1.375 billion and $1.475 billion, with a gross margin forecast of 11.5% to 13.5% [5][16]. Summary by Sections Overall Performance - In Q1 2025, Amkor achieved revenue of $1.322 billion, with communication business revenue exceeding expectations and other terminal markets performing as anticipated [3][8]. - The company reported a gross profit of $158 million, with a gross margin of 11.9%, and a net profit of $26 million, primarily impacted by increased R&D costs [3][8]. Performance by End Market 1. **Communication Market**: Revenue accounted for 40% of total sales, with a year-over-year decline of 19%, mainly due to decreased revenue from iOS devices [4][10]. 2. **Automotive and Industrial Market**: This segment represented 21% of revenue, with a 6% year-over-year decline, although demand for advanced packaging solutions remains strong [4][10]. 3. **Consumer Market**: Contributing 17% to total revenue, this market saw a 23% year-over-year increase, driven by the growing demand for wearable and connected devices [4][10]. 4. **Computing Market**: Accounting for 22% of revenue, this segment experienced a 21% year-over-year increase, with multiple collaborations in data centers and networking [4][11]. Q2 2025 Guidance - Amkor's revenue guidance for Q2 2025 is set at $1.375 billion to $1.475 billion, with a gross margin forecast of 11.5% to 13.5% [5][16]. - The company expects net profit guidance between $17 million and $57 million, with anticipated improvements in gross margin driven by appropriate capacity utilization [5][16].

Financial Performance - Net sales decreased by $43.9 million, or 3.2%, to $1,321.6 million for the three months ended March 31, 2025, compared to $1,365.5 million for the same period in 2024, primarily due to lower sales in the communications end market [98]. - Gross margin for the three months ended March 31, 2025, decreased to 11.9% from 14.8% in the same period of 2024, impacted by lower net sales and factory utilization [99]. - Operating income margin decreased by 300 basis points to 2.4% for the three months ended March 31, 2025, from 5.4% for the same period in 2024, primarily due to decreased gross margin and increased research and development expenses [100]. - The communications end market sales decreased by 19% compared to 2024, primarily due to lower supported content in premium tier smartphones, while consumer and computing end markets grew by 23% and 21%, respectively [103]. - Free cash flow for the three months ended March 31, 2025, was $(49.981) million, a decrease from $74.165 million in the same period of 2024 [134]. - The company experienced a decrease in cash flow provided by operating activities for the three months ended March 31, 2025, totaling $24.149 million, down from $162.312 million in 2024 [130]. Capital Expenditures and Investments - Capital expenditures totaled $79.9 million for the three months ended March 31, 2025, compared to $96.2 million for the same period in 2024, focusing on advanced packaging and test equipment [101]. - Capital expenditures for the three months ended March 31, 2025, amounted to $79.9 million, with expectations for total capital expenditures in 2025 to be approximately $850 million [128][129]. - The company signed a Direct Funding Agreement in December 2024 for up to $407 million in government incentives under the CHIPS Act, contingent on achieving construction and production milestones [118]. - The company began delivering advanced packages from the Vietnam Facility in Q3 2024 and plans to build an advanced packaging and test facility in Arizona, supported by up to $407 million in funding from the U.S. Department of Commerce [91]. Research and Development - Research and development expenses increased by 19.6% to $38.2 million for the three months ended March 31, 2025, compared to $45.7 million for the same period in 2024, driven by new advanced packaging technology projects [108]. Liquidity and Cash Management - As of March 31, 2025, cash and cash equivalents and short-term investments totaled $1,057.6 million and $505.2 million, respectively [96]. - The company assesses liquidity based on expectations regarding sales, operating expenses, and capital spending, believing current cash flow will be sufficient for at least the next 12 months [112]. - As of March 31, 2025, the company had cash and cash equivalents and short-term investments totaling $1,562.7 million, with $1,350.7 million held offshore by foreign subsidiaries [115]. - The company declared total quarterly cash dividends of $20.4 million during the three months ended March 31, 2025, and anticipates continuing future dividends [127]. Debt and Borrowing - As of March 31, 2025, the company had total debt of $1,149.3 million, with $236.5 million due within 12 months [120]. - The company has a maximum borrowing capacity of $600.0 million under the 2022 Singapore Revolver, with $57.6 million available to be borrowed under term loan credit facilities as of March 31, 2025 [119]. - The total fixed rate debt amounts to $1,019,912,000 with a fair value of $1,008,176,000 [144]. - The average interest rate for fixed rate debt is 4.3% [144]. - The total variable rate debt is $134,000,000 with a fair value of $133,512,000 [144]. - The average interest rate for variable rate debt is 5.1% [144]. - Total debt maturities amount to $1,153,912,000 with a fair value of $1,141,688,000 [144]. - The largest portion of fixed rate debt is due in 2027, totaling $642,085,000 [144]. - The average interest rate for fixed rate debt due in 2027 is 5.8% [144]. - The company has no variable rate debt maturing in 2027 [144]. - The remaining fixed rate debt for 2025 is $124,320,000 [144]. - The company’s total debt includes maturities across various years, with significant amounts due in 2026 and 2028 [144]. Operating Expenses - Selling, general and administrative expenses decreased by 11.0% to $80.4 million for the three months ended March 31, 2025, compared to $90.3 million for the same period in 2024 [106].

Q1 2025 Financial Results April 2025 © 2025 Amkor Technology, Inc. 1 Disclaimer Non-GAAP Measures Presenter Introductions Giel Rutten President and Chief Executive Officer Megan Faust Executive Vice President and Chief Financial Officer © 2025 Amkor Technology, Inc. 2 Jennifer Jue Vice President, Investor Relations This presentation contains certain measures that are not defined terms under U.S. generally accepted accounting principles ("GAAP"). These non-GAAP measures should not be considered in isolation ...

Financial Data and Key Metrics Changes - Amkor reported revenue of $1,320 million for Q1 2025, reflecting a 3% year-on-year decline [15][20] - EPS was $0.09, impacted by higher R&D costs [5][19] - Gross profit was $158 million with a gross margin of 11.9%, lower sequentially and year-on-year due to reduced volumes [18] - Operating income was $32 million, representing 2.4% of sales [19] - Net income was $21 million, with first quarter EBITDA at $197 million and an EBITDA margin of 14.9% [19][20] - Total liquidity at the end of the quarter was $2,200 million, with total debt of $1,150 million and a debt to EBITDA ratio of 1.1x [20] Business Line Data and Key Metrics Changes - Communications revenue decreased by 19% year-on-year, primarily due to lower revenue within the iOS ecosystem [15][16] - Computing revenue increased by 21% year-on-year, driven by engagements across data center, networking, and PC customers [15][16] - Automotive and industrial revenue declined by 6% year-on-year but remained stable sequentially [16] - Consumer market revenue increased by 23% year-on-year, driven by hearable programs utilizing advanced SiP technology [17] Market Data and Key Metrics Changes - The communications segment is expected to see sequential growth in Q2, reflecting efforts to optimize line utilization [16] - The computing segment is anticipated to grow sequentially in Q2, driven by strong demand for new PC devices [16] - The automotive market is recovering, with strength in advanced packaging driven by ADAS and infotainment applications [13][16] Company Strategy and Development Direction - Amkor's strategy is based on three pillars: strengthening technology leadership, expanding geographic footprint, and partnering with lead customers in growth markets [8][23] - The company is focused on advanced packaging and test solutions, particularly in high-performance computing and AI [9][10] - Plans for a new advanced packaging facility in Arizona are on track, with construction expected to begin in the second half of 2025 [11][20] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring tariffs and trade regulations, with operations largely unaffected due to a diversified global footprint [6][22] - The outlook for the automotive and industrial markets remains cautious, with expectations of single-digit growth in Q2 [38] - Management expressed confidence in the long-term strategy to achieve profitable growth despite current market uncertainties [14][23] Other Important Information - The company expects Q2 revenue between $1,375 million and $1,475 million, representing growth of 8% sequentially at the midpoint [20] - Gross margin for Q2 is expected to be between 11.5% and 13.5%, reflecting modest improvement in utilization [21] Q&A Session Summary Question: Insights on Q1 performance and Q2 expectations - Management noted that Q1 performance was better than expected due to strength in communications and computing segments, with no significant pull-ins observed from customers [27][28] Question: CapEx plans in light of tariffs - Management confirmed that CapEx plans remain unchanged at $850 million, with flexibility to adjust if unexpected events arise [29][31] Question: Communications segment outlook for the second half - Management indicated that fundamentals for the communications segment remain strong, but uncertainties due to trade restrictions could impact volumes [36] Question: Automotive market guidance - Management believes the automotive market has hit a trough, with cautious optimism for growth driven by advanced packaging applications [38] Question: Arizona expansion opportunities - Management sees TSMC's expansion as an opportunity for Amkor, evaluating ways to accelerate and scale up operations in Arizona [44][46] Question: Revenue generation from RDL technology - Management expects revenue from RDL technology to begin towards the end of the year or early next year, with multiple devices in qualification [54] Question: AI's impact on smartphone growth - Management believes AI will drive innovation in premium smartphones, but predicting its impact on unit growth this year is challenging [75]

Core Insights - Amkor Technology (AMKR) reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, but down from $0.24 per share a year ago [1] - The company posted revenues of $1.32 billion for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 3.63%, but down from $1.37 billion year-over-year [2] - Amkor Technology shares have declined approximately 31.7% year-to-date, compared to a 6.1% decline in the S&P 500 [3] Earnings Performance - Over the last four quarters, Amkor has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $1.33 billion, and for the current fiscal year, it is $1.43 on revenues of $6.17 billion [7] Market Outlook - The estimate revisions trend for Amkor Technology is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Electronics - Semiconductors industry, to which Amkor belongs, is ranked in the top 21% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Amkor reported Q1 2025 revenue of $1.32 billion, a decrease of 18.8% from Q4 2024 and a decrease of 3.2% from Q1 2024[2][3] - Gross margin for Q1 2025 was 11.9%, down from 15.1% in Q4 2024 and 14.8% in Q1 2024[3][11] - Operating income for Q1 2025 was $32 million, representing an operating income margin of 2.4%, compared to $134 million and 8.3% in Q4 2024[3][11] - Net income attributable to Amkor in Q1 2025 was $21 million, with earnings per diluted share of $0.09, down from $0.43 in Q4 2024[3][18] - Net income for the three months ended March 31, 2025, was $21.853 million, a decrease of 63.5% compared to $59.786 million in the same period of 2024[22] Guidance and Projections - Amkor's guidance for Q2 2025 includes net sales of $1.32 billion and EBITDA of $197 million[5] - Full year 2025 capital expenditures are projected to be approximately $850 million[6] Product Mix and Customer Base - Advanced products accounted for 80.5% of total net sales in Q1 2025, while mainstream products made up 19.5%[11] - The company maintained a diversified customer base, with 71% of net sales coming from the top ten customers[11] Cash and Investments - Total cash and short-term investments as of March 31, 2025, was $1.6 billion, while total debt stood at $1.1 billion[3][20] - Cash, cash equivalents, and restricted cash at the end of the period totaled $1.058 billion, down from $1.119 billion at the beginning of the period, indicating a net decrease of $75.984 million[22] - Payments for property, plant, and equipment were $79.897 million, a decrease from $96.169 million in the previous year, showing a reduction of 17.0%[22] - Net cash used in investing activities was $63.054 million, down from $86.103 million, representing a decrease of 26.8% year-over-year[22] - Payments of long-term debt amounted to $25.493 million, a decrease from $29.100 million, reflecting a reduction of 12.5%[22] - The company experienced a net cash used in financing activities of $42.251 million, down from $69.877 million, indicating a decrease of 39.6%[22] - The effect of exchange rate fluctuations resulted in a positive impact of $5.172 million on cash and cash equivalents, contrasting with a negative impact of $8.164 million in the previous year[22] Risks and Future Outlook - The company continues to face risks related to the cyclical nature of the semiconductor industry and potential downturns in global economic conditions[23] - Future performance may be affected by the company's ability to develop new proprietary technology and manage operational risks effectively[24] Dividends - Amkor paid a quarterly dividend of $0.08269 per share on April 2, 2025[4]

Company Performance - Amkor Technology (AMKR) closed at $15.96, reflecting a +0.44% change from the previous day, which underperformed compared to the S&P 500's gain of 2.51% [1] - Over the past month, Amkor's shares have decreased by 20.07%, which is worse than the Computer and Technology sector's decline of 12.18% and the S&P 500's loss of 8.86% [1] Upcoming Financial Results - Amkor Technology is set to announce its earnings on April 28, 2025, with projected EPS of $0.09, indicating a 62.5% decrease from the same quarter last year [2] - The consensus estimate for quarterly revenue is $1.28 billion, down 6.61% from the previous year [2] Full Year Projections - For the full year, the Zacks Consensus Estimates predict earnings of $1.43 per share and revenue of $6.22 billion, representing no change in earnings and a -1.49% decline in revenue compared to the prior year [3] Analyst Estimates and Market Sentiment - Recent modifications to analyst estimates for Amkor Technology reflect changing short-term business dynamics, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Amkor Technology at 4 (Sell), following a 2.69% decrease in the consensus EPS estimate over the last 30 days [6] Valuation Metrics - Amkor Technology is trading at a Forward P/E ratio of 11.13, which is lower than the industry average Forward P/E of 19.08 [7] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 36, placing it in the top 15% of over 250 industries [7]