8-K: Amkor Technology Reports Q1 2025 Financial Results: Revenue in Line with Expectations

• Amkor Technology, Inc. announced its financial results for the first quarter ended March 31, 2025.
• Net sales for Q1 2025 were $1.32 billion.
• Gross profit was reported at $158 million, with an operating income of $32 million.
• Net income reached $21 million, resulting in earnings per diluted share of $0.09.
• EBITDA for the quarter was $197 million.
• The company held $1.6 billion in cash and short-term investments, with total debt at $1.1 billion as of March 31, 2025.
• A quarterly dividend of $0.08269 per share was paid on April 2, 2025.
• For Q2 2025, Amkor projects net sales between $1.375 billion and $1.475 billion.
• The gross margin for Q2 is expected to be between 11.5% and 13.5%.
• Net income for Q2 is forecasted to be between $17 million and $57 million, or $0.07 to $0.23 per diluted share.
• Full year 2025 capital expenditures are estimated to be approximately $850 million.

Score: 6

Explanation: The sentiment is neutral. While the results are in line with expectations, there are declines in key financial metrics compared to the previous quarter. The company is also facing several risks related to the semiconductor industry and global economic conditions.

• Amkor's Q1 2025 results were in line with expectations.
• The company maintains a strong cash position with $1.6 billion in cash and short-term investments.
• Amkor continues to pay a quarterly dividend, providing value to shareholders.
• The company is providing guidance for Q2 2025, indicating a degree of visibility into future performance.

• Net sales decreased from $1.629 billion in Q4 2024 to $1.322 billion in Q1 2025.
• Gross margin decreased from 15.1% in Q4 2024 to 11.9% in Q1 2025.
• Operating income decreased from $134 million in Q4 2024 to $32 million in Q1 2025.
• Net income attributable to Amkor decreased from $106 million in Q4 2024 to $21 million in Q1 2025.
• Earnings per diluted share decreased from $0.43 in Q4 2024 to $0.09 in Q1 2025.

• The company is dependent on the cyclical and volatile semiconductor industry.
• Changes in costs, quality, availability, and delivery times of raw materials, components, and equipment could impact results.
• Competition from established competitors, integrated device manufacturers, and new entrants poses a risk.
• The company faces risks related to trade restrictions and regional conflicts.
• Fluctuations in manufacturing yields could affect profitability.
• Dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive, could impact results.
• The company faces challenges with integrating diverse operations.
• The company's substantial indebtedness poses a risk.
• The company faces environmental, health and safety liabilities and expenditures.

Amkor projects Q2 2025 net sales between $1.375 billion and $1.475 billion, gross margin between 11.5% and 13.5%, and net income between $17 million and $57 million, or $0.07 to $0.23 per diluted share. Full year 2025 capital expenditures are estimated to be approximately $850 million.

• Amkor delivered first quarter results in line with expectations, with revenue of $1.32 billion and EPS of $0.09, said Giel Rutten, Amkors president and chief executive officer.
• We are closely monitoring the evolving landscape with tariffs and trade regulations and potential impacts on our customers supply chains.
• Our diversified global footprint and long-standing partnerships allow us to help our customers work through complexity and uncertainty.
• Within this dynamic environment, our focus remains on staying agile and delivering value by executing on our long-term strategy.

Amkor, as a leading OSAT provider, is navigating a dynamic environment influenced by tariffs, trade regulations, and evolving customer supply chains. The company's focus on agility and long-term strategy execution is crucial in maintaining its competitive edge in the semiconductor packaging and test services market.

• As the world's largest U.S. headquartered OSAT, Amkor's performance is often compared to other major players like ASE Technology Holding, Powertech Technology, and JCET Group.
• Gross margins in the OSAT industry typically range from 15% to 25%, so Amkor's Q1 2025 gross margin of 11.9% is below the industry average.
• Capital expenditure guidance of $850 million for 2025 reflects Amkor's commitment to investing in advanced packaging technologies, which is a common trend among leading OSATs to meet the demands of high-performance computing and AI applications.

• Shareholders will receive a quarterly dividend of $0.08269 per share.
• Employees will be impacted by the company's focus on staying agile and executing its long-term strategy.
• Customers will benefit from Amkor's diversified global footprint and long-standing partnerships.
• Suppliers may be affected by changes in costs, quality, availability, and delivery times of raw materials, components, and equipment.

• Amkor will conduct a conference call on April 28, 2025, to discuss the financial results.
• The company will continue to monitor the evolving landscape with tariffs and trade regulations.
• Amkor will focus on staying agile and delivering value by executing on its long-term strategy.

• 1968: Year Amkor Technology, Inc. was founded.
• March 31, 2025: End date of the first quarter 2025.
• April 2, 2025: Date of quarterly dividend payment of $0.08269 per share.
• April 28, 2025: Date of the press release and conference call regarding Q1 2025 financial results.
• December 31, 2024: Date of the company's Annual Report on Form 10-K.