Amkor Technology (AMKR) has reported 116.65 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $60.09 million, or $0.25 a share in the quarter, compared with $27.74 million, or $0.12 a share for the same period last year.
Revenue during the quarter surged 47.89 percent to $1,086.01 million from $734.36 million in the previous year period. Gross margin for the quarter expanded 245 basis points over the previous year period to 19.69 percent. Total expenses were 89.45 percent of quarterly revenues, down from 93.02 percent for the same period last year. This has led to an improvement of 357 basis points in operating margin to 10.55 percent.
Operating income for the quarter was $114.62 million, compared with $51.30 million in the previous year period.
"Third quarter results were at the high end of our guidance," said Steve Kelley, Amkor's president and chief executive officer. "We saw notable strength in smartphones across multiple tiers. Sales in Automotive, Greater China and advanced SiP were all up sequentially reflecting the continued success of our strategic initiatives in these key areas. Our 18% sequential growth in sales generated substantial cash and profits for the quarter.”
For the fourth-quarter, Amkor Technology expects revenue to be in the range of $990 million to $1,070 million. It forecasts net income to be in the range of $46 million to $82 million. The company projects diluted earnings per share to be in the range of $0.19 to $0.34.
For fiscal year 2016, Amkor Technology forecasts revenue to be $3,900 million. It projects net income to be $130 million, the company expects diluted earnings per share to be $0.55.
Operating cash flow improvesAmkor Technology has generated cash of $491.62 million from operating activities during the nine month period, up 14.22 percent or $61.22 million, when compared with the last year period. The company has spent $470.16 million cash to meet investing activities during the nine month period as against cash outgo of $352.85 million in the last year period. It has incurred net capital expenditure of $467.98 million on net basis during the nine month period, up 34.70 percent or $120.55 million from year ago period.
The company has spent $16.68 million cash to carry out financing activities during the nine month period as against cash outgo of $97.04 million in the last year period.
Cash and cash equivalents stood at $549.84 million as on Sep. 30, 2016, up 27.74 percent or $119.39 million from $430.44 million on Sep. 30, 2015.
Working capital increases
Amkor Technology has recorded an increase in the working capital over the last year. It stood at $412.09 million as at Sep. 30, 2016, up 16.88 percent or $59.51 million from $352.58 million on Sep. 30, 2015. Current ratio was at 1.38 as on Sep. 30, 2016, down from 1.47 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 14 days for the quarter compared with 32 days for the previous year period. At the same time, days payable outstanding was almost stable at 42 days for the quarter, when compared with the previous year period.
Debt moves up marginallyAmkor Technology has witnessed an increase in total debt over the last one year. It stood at $1,504.05 million as on Sep. 30, 2016, up 4.42 percent or $63.67 million from $1,440.38 million on Sep. 30, 2015. Short-term debt stood at $30.83 million as on Sep. 30, 2016. Total debt was 35.46 percent of total assets as on Sep. 30, 2016, compared with 39.49 percent on Sep. 30, 2015. Debt to equity ratio was at 1.12 as on Sep. 30, 2016, down from 1.20 as on Sep. 30, 2015. Interest coverage ratio improved to 5.33 for the quarter from 2.90 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
