Post Earnings Coverage as Amkor Revenue Soared 52%

Upcoming AWS Coverage on Analog Devices Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 21, 2017 / Active Wall St. announces its post-earnings coverage on Amkor Technology, Inc. (NASDAQ: AMKR). The Company reported its financial results for the fourth quarter and fiscal 2016 results on February 13, 2017. The chip packaging and test services provider reported profit in Q4 2016, after reporting a loss in the same period a year earlier. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Amkor Technology’s competitors within the Semiconductor – Integrated Circuits space, Analog Devices, Inc. (NASDAQ: ADI), released its financial results for Q1 FY17 on Wednesday, February 15, 2017. AWS will be initiating a research report on Analog Devices in the coming days.

Today, AWS is promoting its earnings coverage on AMKR; touching on ADI. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended December 31, 2016, Amkor delivered revenues of $1.02 billion, up $350 million compared to revenue of $670.64 million in Q4 2015. The Company noted that consolidation of J-Devices contributed about $230 million of that growth, with the remaining $120 million coming from a healthier demand environment and the benefits of its strategic initiatives. The Company’s revenue numbers were below market estimates of $1.04 billion.

Amkor’s operating expenses in Q4 2016 were $100 million. For Q1 2017, the Company expected operating expenses to be around $110 million. This increase is primarily due to K5 costs, which will be classified as R&D expense until the Company commences high-volume manufacturing.

For Q4 2016, Amkor reported net income of $100.26 million compared to net loss of $10.56 million in Q4 2015. The Company posted gross margin of 22% and EPS of $0.42 for the reported quarter. Amkor stated that it received approximately $26 million, or $0.08 per share, as insurance proceeds related to the Q2 2016 Japan earthquakes. These proceeds contributed about 250 basis points to gross margin. Amkor’s Q4 2016 EPS included $0.12 resulting from foreign currency gains and tax benefits related to the remeasurement of liabilities on its balance sheet. The Company’s earnings surpassed analysts’ consensus of $0.28 per share.

FY16 Results

Amkor’s FY16 revenues were $3.89 billion compared to FY15 revenue of $2.88 billion. The consolidation of J-Devices, together with solid execution of the Company’s automotive, Greater China, and advanced SiP initiatives drove both revenue growth and better profitability. The Company delivered gross profit of $695 million and gross margin of 18% in FY16 compared to gross profit of $479 million and gross margin of 17% for FY15. Amkor’s EPS was $0.69 for FY16 compared to EPS of $0.22 in FY15.

For FY16, Amkor’s Mobile communication sales grew 8% y-o-y, contributing 44% of total revenue. The Company noted that combined Amkor and J-Devices automotive sales grew 20% y-o-y to just under $1 billion, accounting for 25% of overall revenue. Amkor noted that Advanced SiP sales of $775 million for FY16 grew 7% y-o-y, contributing 20% of total revenue. The Company noted that Space-constrained, performance-sensitive mobile applications drove the development and growth of advanced SiP products.

Amkor generated $140 million in free cash flow for FY16, the Company also paid down around $100 million of debt in Q4 2016. With the improvement in profitability, Amkor generated $852 million of EBITDA in FY16. At December 31, 2016, the Company had total debt of $1.5 billion and debt to EBITDA of 1.7 times, a significant improvement from its ratio of 2.4 times a year ago. The Company has $550 million in cash and $450 million in available undrawn loans.

Outlook

For Q1 2017, Amkor is forecasting net sales of $860 million to $940 million, down 8% to 16% from the prior quarter. This forecast reflects a generally healthy IC market, tempered by seasonality and smartphone demand. The Company expects net loss of $27 million to net income of $12 million, or ($0.11) to $0.05 per diluted share for Q1 2017. Amkor expects FY17 effective tax rate to be about 25%. In FY17, Amkor expects to make capital investments of approximately $500 million.

Recent Acquisition

On February 02, 2017, Amkor announced that it acquired NANIUM S.A., a world class provider of wafer-level fan-out (WLFO) semiconductor packaging solutions. Terms of the transaction were not disclosed. The acquisition of NANIUM will strengthen Amkor’s position in the fast growing market of wafer-level packaging for smartphones, tablets, and other applications. NANIUM has developed a high-yielding, reliable WLFO technology, and has successfully ramp that technology to high volume production. NANIUM has shipped nearly one billion WLFO packages to date utilizing a state-of-the-art 300mm Wafer-Level Packaging production line.

NANIUM is based in Porto, Portugal, employs approximately 550 people, and had annual sales of approximately $40 million for their fiscal year ended September 30, 2016. The transaction is expected to close in Q1 2017.

Stock Performance

Amkor Technology’s share price finished last Friday’s trading session at $10.05, marginally up 0.40%. A total volume of 2.00 million shares exchanged hands, which was higher than the 3 months’ average volume of 1.66 million shares. The stock has surged 9.00% and 121.37% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 14.61.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 455606