(July 28, 2005) Chandler, Ariz. — Amkor Technology reports Q2 2005 sales of $489 million, up 17% sequentially and down 1% from Q2 2004. Q2 net loss was $52 million ($0.30 per share). For Q2 2004, net income was $10 million ($0.06 per share) and included after-tax gains of $16.5 million ($0.09 per share) from an equity investment sale and a litigation settlement with a software provider.
“I am pleased with our revenue growth this quarter, which reflects implementation of the strategic business initiatives we put in place last year, together with a modest recovery in overall industry conditions,” says James Kim, Amkor’s chairman and CEO. “We expect to achieve continued business momentum from these initiatives, and we are deploying what we believe are the appropriate resources to support this planned growth. We are building a critical mass of revenue in our newer factories, which have thus far hampered our performance. For the second half of this year, we are focused on improving our profitability by increasing revenue, enriching our product mix, and driving greater operational efficiencies throughout the organization.”
“During the second quarter, we executed on key programs, continued to ramp IBM-related business, and leveraged our strong technology and operational capabilities in several areas, including 3-D and chip scale packaging, system-in-package, flip chip, and test,” says John Boruch, Amkor’s president and COO. “We expect to see continued growth in the second half as we support a seasonal build in consumer electronics and ramp newer turnkey programs involving a range of flip chip applications. We expect that supply will continue to tighten over the next several quarters, which should lead to firmer pricing and an opportunity to improve product and customer mix.”
“We shipped over 1.8 billion packages in Q2, an increase of 19% over Q1,” says Ken Joyce, Amkor’s CFO. “Gross margin increased to 13.6%. Our second-quarter profitability improvement was constrained by product mix and higher manufacturing costs, as well as lower pricing in our Japan factory.”