Semiconductor packaging and test services company Amkor Technology Inc. (AMKR:NASDAQ) today announced financial results for the fourth quarter and full year ended December 31, 2019.
The company indicated that in Q4/19 it achieved record net sales of $1.18 billion, up 9% compared to $1.08 billion in Q4/18. The firm reported a gross margin in Q4/19 of 18.9% and net income of $99 million, or $0.41 earnings per diluted share.
For FY/19, net sales were $4.05 billion and net income was $121 million, or $0.50 earnings per diluted share.
The company's President and CEO Steve Kelley commented, "Fourth quarter revenue grew 9% sequentially to a new record of $1.18 billion...Strong demand for advanced packages in the mobile and consumer markets drove revenue above the high end of expectations."
Megan Faust, executive vice president and CFO of Amkor remarked, "Gross margin and EPS were also well above the high end of guidance due to record revenue...We generated over $100 million of free cash flow while continuing to make strategic investments in advanced packaging technologies to support future growth."
CEO Kelley added, "We expect first quarter 2020 revenue to be up approximately 25% year-on-year and down about 5% sequentially...Looking forward, we are well-positioned for growth in 2020. Amkor's value proposition - centered on technology, quality, high yields and service - is resonating with customers in our target markets."
The company provided some forward guidance and indicated that for Q1/20 it expects net sales in the range of $1.08 billion to $1.16 billion. It estimates gross margin of 14.5% to 17.5%, and net income of $22 million to $59 million, or $0.09 to $0.24 per diluted share in the same period.
Amkor Technology is headquartered in Tempe, Ariz., and is a provider of outsourced semiconductor packaging and test services. The company claims that it "pioneered the outsourcing of IC packaging and test, and is now a strategic manufacturing partner for the world's leading semiconductor companies, foundries and electronics OEMs." The firm operates product development centers, production facilities and sales and support offices in the U.S, Asia and Europe.
Amkor Technology began the day with a market capitalization of around $2.8 billion with approximately 239.8 million shares outstanding. AMKR opened 20% higher today at $13.92 (+$2.37, +20.52%) over yesterday's $11.55 closing price. The firm's stock has traded today between $13.53 and $14.82 per share and is currently trading at $13.81 (+$2.26, +19.57%).
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