AMKR Amkor Technology Inc

Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights:

• Fourth quarter net sales $1.63 billion
• Net income $106 million, earnings per diluted share $0.43

Full Year 2024 Highlights:

• Net sales $6.32 billion
• Gross profit $933 million, operating income $438 million
• Net income $354 million, earnings per diluted share $1.43
• EBITDA $1.09 billion
• Net cash from operations $1.09 billion, free cash flow $359 million

“In 2024, weakness in the automotive and industrial and communications end markets contributed to a full year decline. In contrast, we achieved record revenue in our computing end market with growth in ARM-based PCs and AI devices,” said Giel Rutten, Amkor’s president and chief executive officer. “During the year, we also successfully ramped our new facility in Vietnam, secured CHIPS funding to bolster U.S. manufacturing, and set a new record for Advanced SiP revenue. We remain confident in our long-term strategy and continue to invest in technology for advanced packaging and our broad geographic footprint with a focus on industry megatrends.”

Financial Results

($ in millions, except per share data)

Q4 2024

Q3 2024

Q4 2023

2024

2023

Net sales

$1,629

$1,862

$1,752

$6,318

$6,503

Gross margin

15.1%

14.6%

15.9%

14.8%

14.5%

Operating income

$134

$149

$159

$438

$470

Operating income margin

8.3%

8.0%

9.1%

6.9%

7.2%

Net income attributable to Amkor

$106

$123

$118

$354

$360

Earnings per diluted share

$0.43

$0.49

$0.48

$1.43

$1.46

EBITDA (1)

$302

$309

$326

$1,091

$1,135

Net cash provided by operating activities

 

 

 

$1,089

$1,270

Annual free cash flow (1)

 

 

 

$359

$534

 

(1) EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.”

At December 31, 2024, total cash and short-term investments was $1.65 billion, and total debt was $1.16 billion.

On November 13, 2024, Amkor’s Board of Directors announced a 5% increase in the quarterly cash dividend on the company’s common stock, from $0.07875 per share to $0.08269 per share. The Board of Directors also approved a special cash dividend of $0.40546 per share, or approximately $100 million, on the company’s common stock. The increased quarterly dividend and special dividend were each paid on December 23, 2024. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors.

Business Outlook

The following information presents Amkor’s guidance for the first quarter 2025 (unless otherwise noted):

• Net sales of $1.225 billion to $1.325 billion
• Gross margin of 10.0% to 13.0%
• Net income of $3 million to $43 million, or $0.01 to $0.17 per diluted share
• Full year 2025 capital expenditures of approximately $850 million

Conference Call Information

Amkor will conduct a conference call on Monday, February 10, 2025, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337.

About Amkor Technology, Inc.

Amkor Technology, Inc. is the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor’s operational base includes production facilities, research and development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com.

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

 

Q4 2024

 

Q3 2024

 

Q4 2023

 

2024

 

2023

Net Sales Data:

 

 

 

 

 

 

 

 

 

Net sales (in millions):

 

 

 

 

 

 

 

 

 

Advanced Products (1)

$1,357

 

 

$1,568

 

 

$1,430

 

 

$5,175

 

 

$5,033

 

Mainstream Products (2)

 

272

 

 

 

294

 

 

 

322

 

 

 

1,143

 

 

 

1,470

 

Total net sales

$1,629

 

 

$1,862

 

 

$1,752

 

 

$6,318

 

 

$6,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packaging services

 

88

%

 

 

90

%

 

 

89

%

 

 

89

%

 

 

88

%

Test services

 

12

%

 

 

10

%

 

 

11

%

 

 

11

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

Net sales from top ten customers

 

73

%

 

 

74

%

 

 

71

%

 

 

72

%

 

 

69

%

 

 

 

 

 

 

 

 

 

 

End Market Distribution Data:

 

 

 

 

 

 

 

 

 

Communications (smartphones, tablets)

 

44

%

 

 

52

%

 

 

56

%

 

 

48

%

 

 

50

%

Computing (data center, infrastructure, PC/laptop, storage)

 

21

%

 

 

16

%

 

 

13

%

 

 

19

%

 

 

16

%

Automotive, industrial and other (ADAS, electrification, infotainment, safety)

 

17

%

 

 

16

%

 

 

19

%

 

 

18

%

 

 

21

%

Consumer (AR & gaming, connected home, home electronics, wearables)

 

18

%

 

 

16

%

 

 

12

%

 

 

15

%

 

 

13

%

Total

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

 

Gross Margin Data:

 

 

 

 

 

 

 

 

 

Net sales

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Cost of sales:

 

 

 

 

 

 

 

 

 

Materials

 

54.8

%

 

 

58.4

%

 

 

56.5

%

 

 

55.1

%

 

 

55.1

%

Labor

 

9.9

%

 

 

8.7

%

 

 

9.1

%

 

 

9.9

%

 

 

9.9

%

Depreciation

 

8.4

%

 

 

7.4

%

 

 

8.2

%

 

 

8.5

%

 

 

8.9

%

Other manufacturing

 

11.8

%

 

 

10.9

%

 

 

10.3

%

 

 

11.7

%

 

 

11.6

%

Gross margin

 

15.1

%

 

 

14.6

%

 

 

15.9

%

 

 

14.8

%

 

 

14.5

%

 

(1) Advanced products include flip chip, memory and wafer-level processing and related test services.

(2) Mainstream products include all other wirebond packaging and related test services.

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

In this press release, we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.

 

Non-GAAP Financial Measures Reconciliation:

 

 

 

 

 

 

 

 

 

(in millions)

Q4 2024

 

Q3 2024

 

Q4 2023

 

2024

 

2023

EBITDA Data:

 

 

 

 

 

 

 

 

 

Net income

$

106

 

$

123

 

$

119

 

$

356

 

$

362

Plus: Interest expense

 

17

 

 

 

16

 

 

 

15

 

 

 

65

 

 

 

59

 

Plus: Income tax expense

 

30

 

 

 

19

 

 

 

33

 

 

 

75

 

 

 

82

 

Plus: Depreciation & amortization

 

149

 

 

 

151

 

 

 

159

 

 

 

595

 

 

 

632

 

EBITDA

$

302

 

 

$

309

 

 

$

326

 

 

$

1,091

 

 

$

1,135

 

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

In this press release, we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, our ability to service debt, our ability to fund capital expenditures and our ability to pay dividends and the amount of dividends to be paid. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities.

 

Non-GAAP Financial Measures Reconciliation:

 

 

 

(in millions)

2024

 

2023

Free Cash Flow Data:

 

 

 

Net cash provided by operating activities

$

1,089

 

 

$

1,270

 

Less: Payments for property, plant and equipment

 

(744

)

 

 

(749

)

Plus: Proceeds from sale of and grants for property, plant and equipment

 

14

 

 

 

13

 

Free cash flow

$

359

 

 

$

534

 

AMKOR TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

For the Three Months

Ended December 31,

 

For the Year Ended

December 31,

 

2024

 

2023

 

2024

 

2023

Net sales

$

1,629,118

 

 

$

1,751,811

 

 

$

6,317,692

 

 

$

6,503,065

 

Cost of sales

 

1,382,408

 

 

 

1,472,702

 

 

 

5,384,480

 

 

 

5,559,912

 

Gross profit

 

246,710

 

 

 

279,109

 

 

 

933,212

 

 

 

943,153

 

Selling, general and administrative

 

69,427

 

 

 

78,842

 

 

 

331,806

 

 

 

295,393

 

Research and development

 

42,848

 

 

 

41,603

 

 

 

162,951

 

 

 

177,473

 

Total operating expenses

 

112,275

 

 

 

120,445

 

 

 

494,757

 

 

 

472,866

 

Operating income

 

134,435

 

 

 

158,664

 

 

 

438,455

 

 

 

470,287

 

Interest expense

 

17,079

 

 

 

15,478

 

 

 

64,945

 

 

 

59,000

 

Other (income) expense, net

 

(18,233

)

 

 

(8,342

)

 

 

(57,506

)

 

 

(32,554

)

Total other (income) expense, net

 

(1,154

)

 

 

7,136

 

 

 

7,439

 

 

 

26,446

 

Income before taxes

 

135,589

 

 

 

151,528

 

 

 

431,016

 

 

 

443,841

 

Income tax expense

 

29,788

 

 

 

32,516

 

 

 

75,481

 

 

 

81,710

 

Net income

 

105,801

 

 

 

119,012

 

 

 

355,535

 

 

 

362,131

 

Net income attributable to noncontrolling interests

 

(152

)

 

 

(1,450

)

 

 

(1,523

)

 

 

(2,318

)

Net income attributable to Amkor

$

105,649

 

 

$

117,562

 

 

$

354,012

 

 

$

359,813

 

 

 

 

 

 

 

 

 

Net income attributable to Amkor per common share:

 

 

 

 

 

 

 

Basic

$

0.43

 

 

$

0.48

 

 

$

1.44

 

 

$

1.46

 

Diluted

$

0.43

 

 

$

0.48

 

 

$

1.43

 

 

$

1.46

 

Shares used in computing per common share amounts:

 

 

 

 

 

 

 

Basic

 

246,654

 

 

 

245,799

 

 

 

246,344

 

 

 

245,628

 

Diluted

 

247,864

 

 

 

247,243

 

 

 

247,818

 

 

 

247,176

 

 

*We periodically assess the estimated useful lives of our property, plant and equipment. Based on our assessment of test equipment and its increased interchangeability enabling broader and longer use, we extended the estimated useful lives of test equipment from five years to seven years as of January 1, 2024. As a result, depreciation expense was reduced by approximately $13 million and $59 million for the three months ended and the year ended December 31, 2024, respectively. This benefited net income by approximately $11 million and $49 million and diluted earnings per share by $0.05 and $0.20 for each period, respectively.

AMKOR TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

December 31,

 

2024

 

2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,133,553

 

 

$

1,119,818

 

Short-term investments

 

512,984

 

 

 

474,869

 

Accounts receivable, net of allowances

 

1,055,013

 

 

 

1,149,493

 

Inventories

 

310,910

 

 

 

393,128

 

Other current assets

 

61,012

 

 

 

58,502

 

Total current assets

 

3,073,472

 

 

 

3,195,810

 

Property, plant and equipment, net

 

3,576,148

 

 

 

3,299,445

 

Operating lease right of use assets

 

109,730

 

 

 

117,006

 

Goodwill

 

17,947

 

 

 

20,003

 

Restricted cash

 

759

 

 

 

799

 

Other assets

 

166,272

 

 

 

138,062

 

Total assets

$

6,944,328

 

 

$

6,771,125

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Short-term borrowings and current portion of long-term debt

$

236,029

 

 

$

131,624

 

Trade accounts payable

 

712,887

 

 

 

754,453

 

Capital expenditures payable

 

123,195

 

 

 

106,368

 

Short-term operating lease liability

 

26,827

 

 

 

33,616

 

Accrued expenses

 

356,337

 

 

 

358,414

 

Total current liabilities

 

1,455,275

 

 

 

1,384,475

 

Long-term debt

 

923,431

 

 

 

1,071,832

 

Pension and severance obligations

 

70,594

 

 

 

87,133

 

Long-term operating lease liabilities

 

57,983

 

 

 

56,837

 

Other non-current liabilities

 

253,880

 

 

 

175,813

 

Total liabilities

 

2,761,163

 

 

 

2,776,090

 

 

 

 

 

Amkor stockholders’ equity:

 

 

 

Preferred stock

 

—

 

 

 

—

 

Common stock

 

293

 

 

 

292

 

Additional paid-in capital

 

2,031,643

 

 

 

2,008,170

 

Retained earnings

 

2,335,132

 

 

 

2,159,831

 

Accumulated other comprehensive income

 

7,510

 

 

 

16,350

 

Treasury stock

 

(225,033

)

 

 

(222,335

)

Total Amkor stockholders’ equity

 

4,149,545

 

 

 

3,962,308

 

Noncontrolling interests in subsidiaries

 

33,620

 

 

 

32,727

 

Total equity

 

4,183,165

 

 

 

3,995,035

 

Total liabilities and equity

$

6,944,328

 

 

$

6,771,125

 

AMKOR TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Year Ended

December 31,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net income

$

355,535

 

 

$

362,131

 

Depreciation and amortization

 

594,663

 

 

 

631,508

 

Other operating activities and non-cash items

 

25,303

 

 

 

39,654

 

Changes in assets and liabilities

 

113,367

 

 

 

236,727

 

Net cash provided by operating activities

 

1,088,868

 

 

 

1,270,020

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Payments for property, plant and equipment

 

(743,796

)

 

 

(749,467

)

Proceeds from sale of property, plant and equipment

 

3,981

 

 

 

8,444

 

Proceeds from foreign exchange forward contracts

 

47,045

 

 

 

44,013

 

Payments for foreign exchange forward contracts

 

(88,623

)

 

 

(75,786

)

Payments for short-term investments

 

(568,711

)

 

 

(657,583

)

Proceeds from sale of short-term investments

 

65,502

 

 

 

94,242

 

Proceeds from maturities of short-term investments

 

474,097

 

 

 

379,344

 

Other investing activities

 

10,181

 

 

 

4,883

 

Net cash used in investing activities

 

(800,324

)

 

 

(951,910

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Proceeds from revolving credit facilities

 

—

 

 

 

370,000

 

Payments of revolving credit facilities

 

—

 

 

 

(370,000

)

Proceeds from short-term debt

 

5,012

 

 

 

20,712

 

Payments of short-term debt

 

(9,731

)

 

 

(19,448

)

Proceeds from long-term debt

 

172,651

 

 

 

168,335

 

Payments of long-term debt

 

(177,214

)

 

 

(175,427

)

Payments of finance lease obligations

 

(72,255

)

 

 

(66,398

)

Payments of dividends

 

(178,605

)

 

 

(74,686

)

Other financing activities

 

(290

)

 

 

(2,295

)

Net cash used in financing activities

 

(260,432

)

 

 

(149,207

)

 

 

 

 

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

 

(14,417

)

 

 

(10,692

)

 

 

 

 

Net increase in cash, cash equivalents and restricted cash

 

13,695

 

 

 

158,211

 

Cash, cash equivalents and restricted cash, beginning of period

 

1,120,617

 

 

 

962,406

 

Cash, cash equivalents and restricted cash, end of period

$

1,134,312

 

 

$

1,120,617

 

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following:

• dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions;
• dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive;
• changes in costs, quality, availability and delivery times of raw materials, components and equipment;
• health conditions or pandemics, such as COVID-19, impacting labor availability and operating capacity, capital availability, the supply chain and consumer demand for our customers’ products and services;
• fluctuations in operating results and cash flows;
• our substantial indebtedness;
• dependence on international factories and operations and risks relating to trade restrictions and regional conflict;
• the effects of business, economic, political, legal and regulatory impacts or conflicts upon our global operations;
• fluctuations in interest rates and changes in credit risk;
• competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries and contract manufacturers;
• difficulty funding our liquidity needs, including as a result of disruptions to the banking system and capital markets;
• our substantial investments in equipment and facilities to support the demand of our customers;
• difficulty attracting, retaining or replacing qualified personnel;
• difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs;
• maintaining an effective system of internal controls;
• the absence of backlog and the short-term nature of our customers’ commitments;
• our continuing development and implementation of changes to, and maintenance and security of, our information technology systems;
• the historical downward pressure on the prices of our packaging and test services;
• challenges with integrating diverse operations;
• fluctuations in our manufacturing yields;
• any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets;
• our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies;
• conditions to, and obligations related to, the receipt of government incentives;
• environmental, health and safety liabilities and expenditures;
• warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business;
• natural disasters and other calamities, political instability, hostilities or other disruptions;
• restrictive covenants in the indentures and agreements governing our current and future indebtedness;
• the possibility that we may decrease or suspend our quarterly dividend;
• significant severance plan obligations associated with our manufacturing operations in Korea; and
• the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval.

Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210565899/en/

Jennifer Jue Vice President, Investor Relations and Finance 480-786-7594 jennifer.jue@amkor.com