In This Article:
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Revenue: $1.32 billion in Q1, a 3% year-on-year decline.
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EPS: $0.09, impacted by higher R&D costs.
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Communications Revenue: Decreased 19% year on year.
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Computing Revenue: Increased 21% year on year.
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Automotive and Industrial Revenue: Declined 6% year on year.
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Consumer Revenue: Increased 23% year on year.
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Gross Profit: $158 million.
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Gross Margin: 11.9%.
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Operating Expenses: $126 million, higher due to increased R&D.
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Operating Income: $32 million, or 2.4% of sales.
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Net Income: $21 million.
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EBITDA: $197 million, with a margin of 14.9%.
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Cash and Short-term Investments: $1.56 billion.
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Total Debt: $1.15 billion.
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Debt-to-EBITDA Ratio: 1.1 times.
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Q2 Revenue Outlook: Between $1.375 billion and $1.475 billion.
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Q2 Gross Margin Outlook: Between 11.5% and 13.5%.
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Q2 Net Income Outlook: Between $17 million and $57 million.
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Q2 EPS Outlook: Between $0.07 and $0.23.
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2025 CapEx Forecast: $850 million.
Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Amkor Technology Inc (NASDAQ:AMKR) delivered first-quarter revenue of $1.32 billion, which was at the upper end of their guidance.
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The company experienced stronger-than-expected performance in the communications segment, contributing to the positive revenue outcome.
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Amkor Technology Inc (NASDAQ:AMKR) is expanding its geographic footprint, with plans to begin construction of a new facility in Arizona in the second half of 2025.
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The company is investing in advanced packaging and test solutions, including RDL and co-packaged optics, to support high-performance computing and AI innovations.
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Amkor Technology Inc (NASDAQ:AMKR) maintains a strong balance sheet with $1.56 billion in cash and short-term investments, providing flexibility for strategic investments and shareholder returns.
Negative Points
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First-quarter revenue reflected a 3% year-on-year decline, with a 19% decrease in the communications end market due to lower revenue within the iOS ecosystem.
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Gross margin was lower sequentially and year over year at 11.9%, impacted by lower volumes and factory utilization in the low 50s.
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Operating expenses were higher than expected at $126 million, primarily due to increased R&D costs associated with new technology development.
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The automotive and industrial end markets are still recovering from weak demand and elevated inventory levels, impacting growth potential.
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The company faces uncertainties related to tariffs, trade regulations, and export controls, which could affect demand and customer supply chains.