Amkor Technology, Inc. (NASDAQ:AMKR) Benefits FromFavorable Exchange Rates


Amkor Technology, Inc. (NASDAQ:AMKR) a leading provider firm of semiconductor packaging and test services released the financial report for the third quarter ended September 30, 2015. Steve Kelley, the Chief Executive Officer and President, said that 3Q2015 revenue came at the higher end of projections and almost flat to 2Q.

The third quarter profit surpassed expectations, mainly due to a richer mix of test and assembly services and favorable exchange rates. 2Q2015 results include a charge for the early extinguishment of debt pertaining to the redemption of Amkor’s unpaid‘7.375% Senior Notes’ due 2018.

The performance

Cash/cash equivalents stood at $430 million, and total debt came at $1.4 billion, at the end of the third quarter 2015. In response to the soft end industry demand for electronic equipment, Amkor Technology, Inc. (NASDAQ:AMKR) expect clients to cautiously manage inventories in the last quarter of 2015. The management is tightly controlling working capital and capital expenditures in-line with the prevailing demand environment.

As a result, the company lowered FY2015 capital expenditures estimate to around $525 million from around $550 million. Amkor Technology, Inc. (NASDAQ:AMKR) expects the net sales in 4Q2015 to come in between $660 million and $710 million, a decline of 3% to 10% from the preceding quarter. The gross margin is expected to come in between 13% and 17%, while net income is expected to in the range of ($0.02) to $0.05 per share.

The highlights

Net income for the first three-quarter includes a net gain of $18 million pertaining to the sale of company’s Japanese subsidiary firm to J-Devices, its joint association in Japan. Following the sale, Amkor Technology, Inc. (NASDAQ:AMKR) recorded $9 million mainly from the realization of accrued foreign currency translation advances (reflected in other income) and also an additional $9 million from earnings in equity in the advances realized by J-Devices on the deal.

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