Amkor Technology Reports Financial Results for the Third Quarter 2024

About Amkor Technology, Inc.

Amkor Technology, Inc. is the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor's operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com.

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

 

Q3 2024

 

Q2 2024

 

Q3 2023

Net Sales Data:

 

 

 

 

 

Net sales (in millions):

 

 

 

 

 

Advanced products (1)

$

1,568

 

 

$

1,180

 

 

$

1,452

 

Mainstream products (2)

 

294

 

 

 

281

 

 

 

370

 

Total net sales

$

1,862

 

 

$

1,461

 

 

$

1,822

 

 

 

 

 

 

 

Packaging services

 

90

%

 

 

88

%

 

 

88

%

Test services

 

10

%

 

 

12

%

 

 

12

%

 

 

 

 

 

 

Net sales from top ten customers

 

74

%

 

 

72

%

 

 

72

%

 

 

 

 

 

 

End Market Distribution Data:

 

 

 

 

 

Communications (smartphones, tablets)

 

52

%

 

 

48

%

 

 

55

%

Automotive, industrial and other (ADAS, electrification, infotainment, safety)

 

16

%

 

 

20

%

 

 

19

%

Computing (data center, infrastructure, PC/laptop, storage)

 

16

%

 

 

20

%

 

 

14

%

Consumer (AR & gaming, connected home, home electronics, wearables)

 

16

%

 

 

12

%

 

 

12

%

Total

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

Gross Margin Data:

 

 

 

 

 

Net sales

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Cost of sales:

 

 

 

 

 

Materials

 

58.4

%

 

 

54.0

%

 

 

56.8

%

Labor

 

8.7

%

 

 

10.4

%

 

 

8.8

%

Other manufacturing

 

18.3

%

 

 

21.1

%

 

 

18.9

%

Gross margin

 

14.6

%

 

 

14.5

%

 

 

15.5

%

 

(1) Advanced products include flip chip, memory and wafer-level processing and related test services.

(2) Mainstream products include all other wirebond packaging and related test services.

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

In this press release, we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, and our ability to service debt, fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.

 

Non-GAAP Financial Measure Reconciliation:

 

 

 

 

 

(in millions)

Q3 2024

 

Q2 2024

 

Q3 2023

EBITDA Data:

 

 

 

 

 

Net income

$

123

 

$

67

 

$

133

Plus: Interest expense

 

16

 

 

 

16

 

 

 

13

 

Plus: Income tax expense

 

19

 

 

 

14

 

 

 

29

 

Plus: Depreciation & amortization

 

151

 

 

 

150

 

 

 

158

 

EBITDA

$

309

 

 

$

247

 

 

$

333

 

AMKOR TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

For the Three Months

Ended September 30,

 

For the Nine Months

Ended September 30,

 

2024*

 

2023

 

2024*

 

2023

Net sales

$

1,861,589

 

 

$

1,821,793

 

 

$

4,688,574

 

 

$

4,751,254

 

Cost of sales

 

1,589,105

 

 

 

1,539,040

 

 

 

4,002,072

 

 

 

4,087,210

 

Gross profit

 

272,484

 

 

 

282,753

 

 

 

686,502

 

 

 

664,044

 

Selling, general and administrative

 

80,753

 

 

 

73,020

 

 

 

262,379

 

 

 

216,551

 

Research and development

 

42,364

 

 

 

43,135

 

 

 

120,103

 

 

 

135,870

 

Total operating expenses

 

123,117

 

 

 

116,155

 

 

 

382,482

 

 

 

352,421

 

Operating income

 

149,367

 

 

 

166,598

 

 

 

304,020

 

 

 

311,623

 

Interest expense

 

15,622

 

 

 

13,001

 

 

 

47,866

 

 

 

43,522

 

Other (income) expense, net

 

(8,130

)

 

 

(8,777

)

 

 

(39,273

)

 

 

(24,212

)

Total other expense, net

 

7,492

 

 

 

4,224

 

 

 

8,593

 

 

 

19,310

 

Income before taxes

 

141,875

 

 

 

162,374

 

 

 

295,427

 

 

 

292,313

 

Income tax expense

 

19,185

 

 

 

28,923

 

 

 

45,693

 

 

 

49,194

 

Net income

 

122,690

 

 

 

133,451

 

 

 

249,734

 

 

 

243,119

 

Net income attributable to non-controlling interests

 

(121

)

 

 

(837

)

 

 

(1,371

)

 

 

(868

)

Net income attributable to Amkor

$

122,569

 

 

$

132,614

 

 

$

248,363

 

 

$

242,251

 

 

 

 

 

 

 

 

 

Net income attributable to Amkor per common share:

 

 

 

 

 

 

 

Basic

$

0.50

 

 

$

0.54

 

 

$

1.01

 

 

$

0.99

 

Diluted

$

0.49

 

 

$

0.54

 

 

$

1.00

 

 

$

0.98

 

 

 

 

 

 

 

 

 

Shares used in computing per common share amounts:

 

 

 

 

 

 

 

Basic

 

246,480

 

 

 

245,740

 

 

 

246,239

 

 

 

245,571

 

Diluted

 

247,922

 

 

 

247,129

 

 

 

247,798

 

 

 

247,080

 

 

*We periodically assess the estimated useful lives of our property, plant and equipment. Based on our assessment of test equipment and its increased interchangeability enabling broader and longer use, we extended the estimated useful lives of test equipment from five years to seven years as of January 1, 2024. As a result, depreciation expense was reduced by approximately $15 million and $45 million for the three and nine months ended September 30, 2024, respectively. This benefited net income by approximately $12 million and $37 million and diluted earnings per share by $0.04 and $0.15 for each period, respectively.

AMKOR TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

September 30, 2024

 

December 31, 2023

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

959,140

 

 

$

1,119,818

 

Short-term investments

 

512,333

 

 

 

474,869

 

Accounts receivable, net of allowances

 

1,351,817

 

 

 

1,149,493

 

Inventories

 

349,513

 

 

 

393,128

 

Other current assets

 

71,515

 

 

 

58,502

 

Total current assets

 

3,244,318

 

 

 

3,195,810

 

Property, plant and equipment, net

 

3,538,841

 

 

 

3,299,445

 

Operating lease right of use assets

 

114,104

 

 

 

117,006

 

Goodwill

 

19,643

 

 

 

20,003

 

Restricted cash

 

786

 

 

 

799

 

Other assets

 

111,394

 

 

 

138,062

 

Total assets

$

7,029,086

 

 

$

6,771,125

 

LIABILITIES AND EQUITY

Current liabilities:

 

 

 

Short-term borrowings and current portion of long-term debt

$

207,570

 

 

$

131,624

 

Trade accounts payable

 

811,946

 

 

 

754,453

 

Capital expenditures payable

 

210,398

 

 

 

106,368

 

Short-term operating lease liability

 

27,657

 

 

 

33,616

 

Accrued expenses

 

315,260

 

 

 

358,414

 

Total current liabilities

 

1,572,831

 

 

 

1,384,475

 

Long-term debt

 

893,994

 

 

 

1,071,832

 

Pension and severance obligations

 

87,584

 

 

 

87,133

 

Long-term operating lease liabilities

 

62,279

 

 

 

56,837

 

Other non-current liabilities

 

215,144

 

 

 

175,813

 

Total liabilities

 

2,831,832

 

 

 

2,776,090

 

 

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

293

 

 

 

292

 

Additional paid-in capital

 

2,028,024

 

 

 

2,008,170

 

Retained earnings

 

2,349,938

 

 

 

2,159,831

 

Accumulated other comprehensive income (loss)

 

10,248

 

 

 

16,350

 

Treasury stock

 

(224,882

)

 

 

(222,335

)

Total Amkor stockholders’ equity

 

4,163,621

 

 

 

3,962,308

 

Non-controlling interests in subsidiaries

 

33,633

 

 

 

32,727

 

Total equity

 

4,197,254

 

 

 

3,995,035

 

Total liabilities and equity

$

7,029,086

 

 

$

6,771,125

 

AMKOR TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Nine Months Ended

September 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net income

$

249,734

 

 

$

243,119

 

Depreciation and amortization

 

445,470

 

 

 

472,396

 

Other operating activities and non-cash items

 

22,558

 

 

 

30,717

 

Changes in assets and liabilities

 

(166,502

)

 

 

(50,045

)

Net cash provided by operating activities

 

551,260

 

 

 

696,187

 

Cash flows from investing activities:

 

 

 

Payments for property, plant and equipment

 

(458,067

)

 

 

(511,654

)

Proceeds from sale of property, plant and equipment

 

5,097

 

 

 

1,580

 

Proceeds from foreign exchange forward contracts

 

32,185

 

 

 

31,038

 

Payments for foreign exchange forward contracts

 

(58,430

)

 

 

(70,251

)

Payments for short-term investments

 

(441,851

)

 

 

(491,056

)

Proceeds from sale of short-term investments

 

44,361

 

 

 

71,159

 

Proceeds from maturities of short-term investments

 

367,522

 

 

 

267,393

 

Other investing activities

 

7,431

 

 

 

4,894

 

Net cash used in investing activities

 

(501,752

)

 

 

(696,897

)

Cash flows from financing activities:

 

 

 

Proceeds from revolving credit facilities

 

 

 

 

370,000

 

Payments of revolving credit facilities

 

 

 

 

(370,000

)

Proceeds from short-term debt

 

5,012

 

 

 

20,712

 

Payments of short-term debt

 

(9,731

)

 

 

(14,632

)

Proceeds from long-term debt

 

58,727

 

 

 

 

Payments of long-term debt

 

(147,603

)

 

 

(104,952

)

Payments of finance lease obligations

 

(56,359

)

 

 

(48,409

)

Payments of dividends

 

(58,196

)

 

 

(55,328

)

Other financing activities

 

819

 

 

 

(1,801

)

Net cash used in financing activities

 

(207,331

)

 

 

(204,410

)

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

 

(2,868

)

 

 

(17,603

)

Net decrease in cash, cash equivalents and restricted cash

 

(160,691

)

 

 

(222,723

)

Cash, cash equivalents and restricted cash, beginning of period

 

1,120,617

 

 

 

962,406

 

Cash, cash equivalents and restricted cash, end of period

$

959,926

 

 

$

739,683

 


Featured Video
Jobs
Design Verification Engineer for Blockwork IT at Milpitas, California
Senior Platform Software Engineer, AI Server - GPU for Nvidia at Santa Clara, California
Senior Firmware Architect - Server Manageability for Nvidia at Santa Clara, California
Sr. Silicon Design Engineer for AMD at Santa Clara, California
CAD Engineer for Nvidia at Santa Clara, California
GPU Design Verification Engineer for AMD at Santa Clara, California
Upcoming Events
SEMICON Japan 2024 at Tokyo Big Sight Tokyo Japan - Dec 11 - 13, 2024
PDF Solutions AI Executive Conference at St. Regis Hotel San Francisco - Dec 12, 2024
DVCon U.S. 2025 at United States - Feb 24 - 27, 2025



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise