- In addition to missing Q2 estimates, Amkor (NASDAQ:AMKR) forecasts Q3 revenue of $700M-$750M and EPS of -$0.03 to $0.06, below a consensus of $795.9M and $0.17.
- CEO Steve Kelley: "We expect sluggish mobile device market conditions to persist through most of Q3, with revenues slightly down compared with Q2, We are cautiously optimistic that demand will strengthen in the fourth quarter with the anticipated launch of flagship mobile devices." The last sentence is presumably a reference to the iPhone 6S and Galaxy Note 5.
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Business metrics: "Advanced products" revenue (e.g. flip-chip and wafer-level packaging) fell 1% Y/Y in Q2 to $362M. "Mainstream products" revenue (e.g. wirebond packaging and test services) fell 7% to $375M. Chip packaging was 85% of revenue, and test services 15%. Communications (mobile devices/Wi-Fi) was 56% of revenue, consumer products (TVs, consoles, etc.) 12%, automotive 12%, networking 11%, and PCs 9%.
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Financials: Gross margin fell to 15.6% from Q1's 18.2% and Q2 2014's 19.6%; Q3 GM guidance is at 13%-16%. GAAP operating expenses fell 15% Y/Y to $76.5M. Amkor ended Q2 with $442M in cash, and $1.5B in debt. The 2015 capex budget has been cut by $50M to $550M.
- Shares have fallen to $4.22 AH, making new 52-week lows along the way.
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Q2 results, PR