Amkor Technology(AMKR) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales were $1.63 billion, a decrease of 6.6% from $1.75 billion in Q4 2023[4] - Full year net sales totaled $6.32 billion, down 2.6% from $6.50 billion in 2023[4] - Gross margin for Q4 2024 was 15.1%, compared to 15.9% in Q4 2023[4] - Operating income for Q4 2024 was $134 million, down from $159 million in Q4 2023, resulting in an operating income margin of 8.3%[4] - Net income attributable to Amkor for Q4 2024 was $106 million, or $0.43 per diluted share, compared to $118 million, or $0.48 per diluted share in Q4 2023[4] - EBITDA for Q4 2024 was $302 million, down from $326 million in Q4 2023[4] - Net income attributable to Amkor for the year ended December 31, 2024, was $354,012, slightly down from $359,813 in 2023, with diluted earnings per share at $1.43[20] Revenue and Guidance - The company provided guidance for Q1 2025, expecting net sales between $1.225 billion and $1.325 billion[9] - Full year 2025 capital expenditures are projected to be approximately $850 million[9] - Net sales for the three months ended December 31, 2024, were $1,629,118, a decrease of 7% from $1,751,811 in the same period of 2023[20] Assets and Liabilities - Total assets increased to $6,944,328 as of December 31, 2024, compared to $6,771,125 in 2023, indicating growth in the company's asset base[22] - Cash and cash equivalents rose to $1,133,553 as of December 31, 2024, from $1,119,818 in 2023, reflecting improved liquidity[22] - Total liabilities decreased slightly to $2,761,163 as of December 31, 2024, from $2,776,090 in 2023, indicating effective debt management[22] Expenses and Cost Management - Gross profit for the year ended December 31, 2024, was $933,212, down from $943,153 in 2023, reflecting a gross margin of approximately 14.8%[20] - Research and development expenses increased to $162,951 for the year ended December 31, 2024, compared to $177,473 in 2023, indicating a focus on innovation despite overall cost management[20] - The company extended the estimated useful lives of test equipment, resulting in a reduction of depreciation expense by approximately $59 million for the year ended December 31, 2024[20] Market Conditions - The company achieved record revenue in the computing end market, driven by growth in ARM-based PCs and AI devices[3] - The company anticipates continued challenges in the semiconductor industry, including dependence on key customers and potential economic downturns, which may impact future performance[25]