**EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under "Selected Operating Data."
“Our business was essentially break-even for the first quarter and in line with guidance," said Megan Faust, Amkor’s corporate vice president and chief financial officer. "Earnings were reduced by a non-cash foreign exchange rate loss of $11 million ($0.05 per diluted share) related to the re-measurement of our balance sheet liabilities denominated in foreign currencies."
Cash and cash equivalents were $614 million and total debt was $1.5 billion, at March 31, 2017.
"Looking ahead to Q2, we expect that revenues will increase around 9% sequentially, driven by strength in communications and other markets," said Kelley.
"We expect to complete our acquisition of Nanium in the second quarter. Nanium is the leader in wafer-level fan-out technology and has already shipped over 1 billion units to major customers. This acquisition will strengthen our position in the wafer-level packaging market," continued Kelley.
"In Q2, we expect to complete the sale of our K1 factory in Korea," said Faust. "The sale price is approximately $140 million, and we expect to recognize an after-tax gain of approximately $80 million ($0.33 per diluted share)."
Second quarter 2017 outlook (unless otherwise noted):
- Net sales of $955 million to $1.035 billion, up 5% to 13% from the prior quarter
- Gross margin of 16% to 20%
- Net income of $86 million to $125 million, or $0.36 to $0.52 per share (includes gain from the sale of our K1 factory)
- Full year capital expenditures of around $500 million, unchanged from our previous forecast
Conference Call Information
Amkor will conduct a conference call on Thursday, April 27, 2017, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor's website: www.amkor.com. You may also access the call by dialing 1-877-645-6380 or 1-404-991-3911. A replay of the call will be made available at Amkor's website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID 7226501). The webcast is also being distributed over NASDAQ OMX's investor distribution network to both institutional and individual investors. Institutional investors can access the call via NASDAQ OMX's password-protected event management site, Street Events ( www.streetevents.com).
About Amkor Technology, Inc.
Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test, and is now a strategic manufacturing partner for more than 250 of the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operating base includes 10 million square feet of floor space, with production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the U.S. For more information, visit www.amkor.com.
AMKOR TECHNOLOGY, INC.
Selected Operating Data
|Q1 2017||Q4 2016||Q1 2016|
|Net Sales Data:|
|Net sales (in millions):|
|Total net sales||$||914||$||1,022||$||869|
|Net sales from top ten customers||67||%||66||%||67||%|
|End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers) :|
|Communications (smart phones, tablets, handheld devices, wireless LAN)||41||%||45||%||42||%|
|Automotive and industrial (infotainment, safety, performance, comfort)||26||%||25||%||25||%|
|Consumer (televisions, set top boxes, gaming, portable media, digital cameras)||14||%||14||%||16||%|
|Networking (servers, routers, switches)||11||%||9||%||10||%|
|Computing (PCs, hard disk drives, printers, peripherals, servers)||8||%||7||%||7||%|
|Gross Margin Data:|
|Cost of sales:|