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Today I’ll talk about our first quarter 2012 results and guidance for the second quarter. Joanne will then discuss our financial performance in more detail and finally we will open up the call for your questions.To begin, first quarter sales of $655 million, gross margin of 16% and earnings per share of $0.06 were all at the high end of our expectation. Our strong position in wireless communications continues to drive our business and we saw notable improvement in out text services segment. We also benefited from additional leadframe packaging business from some of our customers whose supply chains were disrupted by the flooding in Thailand during the fourth quarter of 2011. From an end market perspective wireless communications, gaming and other consumer electronics and networking were seasonably down from the fourth quarter of 2011. Computing grew mainly due to the additional leadframe business I just mentioned. Looking ahead to second quarter of 2012, our revenues are expected to be in the range of $670 million to $700 million were up 2% to 7% from the first quarter. Second quarter gross margin is expected to be in the range of 16% to 18%. Wireless communications is a key strength for us, although our growth in the second quarter appears to be muted due to some softness in demand fine pitch copper pillar Flip Chip applications and the current shortage in available 28 nanometer capacity to meet the strong demand for these Chips. Our growth in the second quarter should also benefit from a modest seasonal increase in gaming. However, our gaming business for the second quarter in full year 2012 is expected to be lower than the levels we have seen in the past few years due to insourcing by some IBM customers and the overall softness in the gaming box and peripherals market.
We expect solid growth for wireless communications in the second half of 2012, as consumer demand continues build and a supply of 28 nanometer wafers improved. Several of our major customers has fell into smartphone’s and tablets has substantially increased their demand forecast with us.To support these exciting new opportunities to grow our business, we are increasing our estimate of 2012 capital expenditures to around $550 million. Test services will be a particular focus this year as we expect to invest about 45% of our total capital editions in new test capacity. This additional spending is a bit as expected to help improve profitability. The main drivers of our incremental spending and increase focus on test services are 28 nanometer chip sets, power management and connectivity applications and NAND memory. As part of our efforts to support power management and connectivity applications we’re also expanding our wafer level CSP capacity. Our leading customers are well positioned to take advantage of the explosive growth in smartphone’s and tablet. Our strategies have closely collaborating with our customers, meeting their capacity requirements and delivering the technology solutions that enabled the advanced functions in these sophisticated devices are clearly aligned with this trend. We operate in the capital intensive business and the timing of our capital spending is driven by the specific demand presented by our customers. This year we are seeing significant opportunities that may only begin to generate additional revenue in the third and fourth quarter and beyond. It is important that we invest with our customers during this critical window of opportunity so that we can achieve our long-term strategic objectives for growth and profitability. If customer demand and the incremental capital additions is currently forecasted we maybe modestly free cash flow negative for the year, but to be clear our liquidity and balance sheet remains strong.
In closing, we are well positioned to take advantage of the significant growth opportunities and wireless communications. And we believe our planned investments can help drive profitable growth, enhance our technology leadership and provide excellent return.With that, I’ll now turn the call over to Joanne. Joanne Solomon Read the rest of this transcript for free on seekingalpha.com