EX-99.1 2 amkr6302021erex-991.htm EX-99.1 Document


Amkor Technology Reports Financial Results for the Second Quarter 2021

Second Quarter Highlights
Record net sales $1.41 billion, up 20% year-on-year
Gross margin 19.4%, operating income margin 11.0%
Record second quarter net income $126 million, record second quarter earnings per diluted share $0.51
EBITDA $295 million

TEMPE, Ariz. - July 26, 2021 - Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the second quarter ended June 30, 2021.

“Second quarter revenue grew 6% sequentially to a new all-time record of $1.41 billion. Strong demand for Advanced SiP in the Communications and Consumer end markets drove revenue above the high end of expectations,” said Giel Rutten, Amkor’s president and chief executive officer. “Our Automotive and Industrial business grew 33% year-on-year to a record $300 million, overcoming several supply chain challenges.”

ResultsQ2 2021Q1 2021Q2 2020
($ in millions, except per share data)
Net sales$1,407$1,326$1,173
Gross margin19.4%20.0%16.4%
Operating income$155$144$87
Operating income margin11.0%10.9%7.4%
Net income attributable to Amkor$126$120$55
Earnings per diluted share$0.51$0.49$0.23
EBITDA (1)$295$280$209

(1) EBITDA is a non-GAAP financial measure. The reconciliation to the most directly comparable GAAP financial measure is included below under “Selected Operating Data.”

“Strong utilization and growth in Advanced SiP drove solid profitability. Operating income margin expanded 365 basis points year-on-year to 11%, and EPS more than doubled to a second quarter record of $0.51,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “EBITDA grew over 40% year-on-year, and our solid financial position provides flexibility to continue to invest in growth opportunities.”

At June 30, 2021, total cash and short-term investments was $0.9 billion, and total debt was $1.1 billion.

We paid a quarterly dividend of $0.04 per share, representing a dividend payment of $9.8 million in the aggregate, on June 28, 2021 to stockholders of record as of June 7, 2021. 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
“We expect 26% year-on-year growth in the third quarter with revenue of $1.70 billion, fueled by new product ramps for Advanced products in Communications,” said Rutten. “We are working closely with our customers and suppliers to help mitigate ongoing supply chain constraints affecting the semiconductor industry.”

Third quarter 2021 outlook (unless otherwise noted):

Net sales of $1.65 billion to $1.75 billion
Gross margin of 18.5% to 20.5%
Net income of $150 million to $200 million, or $0.60 to $0.80 per diluted share
Full year 2021 capital expenditures of approximately $775 million

Conference Call Information

Amkor will conduct a conference call on Monday, July 26, 2021, 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 https://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 one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test and is now a strategic manufacturing partner for the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information, visit www.amkor.com.


Jennifer Jue
Senior Director, Investor Relations and Finance

Selected Operating Data
Q2 2021Q1 2021Q2 2020
Net Sales Data:   
Net sales (in millions):   
Advanced products (1) (3)$980 $921 $835 
Mainstream products (2) (3)427 405 338 
Total net sales$1,407 $1,326 $1,173 
Packaging services85 %85 %84 %
Test services15 %15 %16 %
Net sales from top ten customers61 %61 %69 %
End Market Data:
Communications (handheld devices, smartphones, tablets)40 %40 %38 %
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)
22 %21 %27 %
Automotive, industrial and other (driver assist, infotainment, performance, safety)
22 %22 %19 %
Computing (data center, infrastructure, PC/laptop, storage)
16 %17 %16 %
Total100 %100 %100 %
Gross Margin Data:
Net sales100.0 %100.0 %100.0 %
Cost of sales:
Materials44.7 %43.2 %45.2 %
Labor13.1 %13.8 %13.9 %
Other manufacturing22.8 %23.0 %24.5 %
Gross margin19.4 %20.0 %16.4 %

(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.
(3) Beginning in 2021, we are reporting memory net sales in Advanced products. Previously memory net sales were reported in Mainstream products. Prior year amounts were reclassified to conform to current year presentation.

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, our ability to service debt and our ability to fund capital expenditures. 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 Measure Reconciliation:
Q2 2021Q1 2021Q2 2020
(in millions)
Net income$126 $120 $56 
Plus: Interest expense13 13 16 
Plus: Income tax expense16 12 13 
Plus: Depreciation & amortization140 135 124 
EBITDA$295 $280 $209 

For the Three Months Ended June 30,For the Six Months Ended June 30,
(In thousands, except per share data)
Net sales$1,406,535 $1,172,909 $2,732,685 $2,325,525 
Cost of sales1,133,715 980,589 2,194,331 1,944,297 
Gross profit272,820 192,320 538,354 381,228 
Selling, general and administrative74,189 74,260 150,957 146,842 
Research and development43,516 31,536 87,834 63,789 
Total operating expenses117,705 105,796 238,791 210,631 
Operating income155,115 86,524 299,563 170,597 
Interest expense12,764 16,012 25,437 33,057 
Other (income) expense, net(96)1,467 (7)(848)
Total other expense, net12,668 17,479 25,430 32,209 
Income before taxes142,447 69,045 274,133 138,388 
Income tax expense15,989 12,905 27,656 17,751 
Net income126,458 56,140 246,477 120,637 
Net income attributable to non-controlling interests(652)(716)(862)(1,324)
Net income attributable to Amkor$125,806 $55,424 $245,615 $119,313 
Net income attributable to Amkor per common share:
Basic$0.52 $0.23 $1.01 $0.50 
Diluted$0.51 $0.23 $1.00 $0.49 
Shares used in computing per common share amounts:
Basic243,863 241,098 243,566 241,009 
Diluted245,551 241,410 245,372 241,345 


June 30, 2021December 31, 2020
(In thousands)
Current assets:
Cash and cash equivalents$724,785 $698,002 
Restricted cash937 1,007 
Short-term investments160,941 133,769 
Accounts receivable, net of allowances1,064,586 962,643 
Inventories374,109 297,293 
Other current assets45,684 40,218 
Total current assets2,371,042 2,132,932 
Property, plant and equipment, net2,873,570 2,566,002 
Operating lease right of use assets 144,529 147,236 
Goodwill25,392 27,325 
Restricted cash3,498 3,188 
Other assets149,748 145,628 
Total assets$5,567,779 $5,022,311 
Current liabilities:
Short-term borrowings and current portion of long-term debt$134,912 $149,007 
Trade accounts payable710,326 636,434 
Capital expenditures payable460,413 181,339 
Accrued expenses374,002 349,207 
Total current liabilities1,679,653 1,315,987 
Long-term debt916,407 1,005,339 
Pension and severance obligations146,737 159,610 
Long-term operating lease liabilities78,492 84,420 
Other non-current liabilities163,420 102,996 
Total liabilities2,984,709 2,668,352 
Stockholders’ equity:
Preferred stock— — 
Common stock290 289 
Additional paid-in capital1,968,339 1,953,378 
Retained earnings788,567 562,502 
Accumulated other comprehensive income (loss)16,113 27,270 
Treasury stock(219,061)(217,740)
Total Amkor stockholders’ equity2,554,248 2,325,699 
Non-controlling interests in subsidiaries28,822 28,260 
Total equity2,583,070 2,353,959 
Total liabilities and equity$5,567,779 $5,022,311 

For the Six Months Ended June 30,
(In thousands)
Cash flows from operating activities:
Net income$246,477 $120,637 
Depreciation and amortization274,991 248,036 
Other operating activities and non-cash items305 10,151 
Changes in assets and liabilities(65,442)(136,422)
Net cash provided by operating activities456,331 242,402 
Cash flows from investing activities:
Payments for property, plant and equipment(273,617)(134,340)
Proceeds from sale of property, plant and equipment2,249 2,389 
Proceeds from sale of short-term investments45,396 8,593 
Proceeds from maturities of short-term investments103,116 13,072 
Payments for short-term investments(173,307)(325,632)
Other investing activities(25,332)805 
Net cash used in investing activities(321,495)(435,113)
Cash flows from financing activities:
Proceeds from revolving credit facilities— 282,000 
Payments of revolving credit facilities— (216,000)
Proceeds from short-term debt3,679 62,495 
Payments of short-term debt(10,431)(66,609)
Proceeds from issuance of long-term debt120,992 225,985 
Payments of long-term debt(184,212)(201,425)
Payments of finance lease obligations(6,633)(4,876)
Payments of dividends(29,221)— 
Other financing activities8,287 972 
Net cash (used in) provided by financing activities(97,539)82,542 
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash(10,274)(1,177)
Net increase (decrease) in cash, cash equivalents and restricted cash27,023 (111,346)
Cash, cash equivalents and restricted cash, beginning of period702,197 898,532 
Cash, cash equivalents and restricted cash, end of period$729,220 $787,186 

Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of 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,” “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. These forward-looking statements, including all of the statements made under “Business Outlook” above, involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements, including, but not limited to, the following:
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;
dependence on the highly cyclical, volatile semiconductor industry;
industry downturns and declines in global economic and financial conditions;
fluctuation in demand for semiconductors and conditions in the semiconductor industry generally, as well as by specific customers, such as inventory reductions by our customers impacting demand in key markets;
changes in our capacity and capacity utilization rates and fluctuations in our manufacturing yields;
the development, transition and ramp to high volume manufacture of more advanced silicon nodes and evolving wafer, packaging and test services technologies may cause production delays, lower manufacturing yields and supply constraints for new wafers and other materials;
the absence of backlog, the short-term nature of our customers’ commitments, double bookings by customers and deterioration in customer forecasts and the impact of these factors, including the possible delay, rescheduling and cancellation of large orders, or the timing and volume of orders relative to our production capacity;
changes in cost, quality, availability and delivery times of raw materials, components and equipment, including any disruption in the supply of certain materials due to regulations and customer requirements, as well as supply constraints, production delays, fluctuations in commodity prices and wage inflation;
dependence on key customers or concentration of customers in certain end markets, such as Communications and Automotive and Industrial;
dependence on international factories and operations and risks relating to our customers’ and vendors’ international operations;
laws, rules, regulations and policies imposed by U.S. or other governments, such as tariffs, customs, duties and other restrictive trade barriers, national security, data privacy and cybersecurity, antitrust and competition, tax, currency and banking, labor, environmental, health and safety;
laws, rules, regulations and policies within China and other countries that may favor domestic companies over non-domestic companies, including customer- or government-supported efforts to promote the development and growth of local competitors;
fluctuations in currency exchange rates, particularly the dollar/yen exchange rate for our operations in Japan;
competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries;
decisions by our integrated device manufacturer and foundry customers to curtail outsourcing;

difficulty achieving high capacity utilization rates due to high percentage of fixed costs;
our substantial investments in equipment and facilities to support the demand of our customers;
the historical downward pressure on the prices of our packaging and test services;
any 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;
our substantial indebtedness and restrictive covenants in the indentures and agreements governing our current and future indebtedness;
the possibility that we may decrease or suspend our quarterly dividend;
difficulty funding our liquidity needs;
our significant severance plan obligations associated with our manufacturing operations in Korea;
maintaining an effective system of internal controls;
difficulty attracting, retaining or replacing qualified personnel;
our continuing development and implementation of changes to, and maintenance and security of, our information technology systems;
challenges with integrating diverse operations;
any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for tax holidays, 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;
natural disasters and other calamities, political instability, hostilities or other disruptions; 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, 2020 (the “Form 10-K”) and in the company’s subsequent filings with the Securities and Exchange Commission (“SEC”) made prior to or after the date hereof. 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 the following trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Amkor undertakes 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 law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.