Amkor reports 1st-quarter profit but misses analysts’ expectations; shares sink

Tuesday, April 27, 2010

Amkor reports 1Q profit but misses expectations

CHANDLER, Ariz. — Chip assembly and testing services company Amkor Technology Inc. reported a first-quarter profit Tuesday, helped by broadband growth and consumer interest in high-definition televisions.

Amkor posted quarterly net income of $44.3 million, or 18 cents per share, compared with a year-ago net loss of $22.1 million, or 12 cents per share.

Analysts surveyed by Thomson Reuters had predicted net income of 20 cents per share.

Revenue jumped 66 percent to $645.7 million from $388.8 million.

In a statement, Amkor said demand generated by the growth of broadband Internet, new gaming systems and high-definition televisions was higher than it predicted.

But Amkor said revenue from communications applications was lower than expected.

For the second quarter, Amkor expects to earn 22 cents to 27 cents per share. The company said it expects revenue to grow 10 percent to 14 percent from the first quarter. The forecast implies second-quarter revenue of $710 million to $736 million.

Analysts predict second-quarter income of 22 cents per share.

Amkor’s stock fell 35 cents, or 4.2 percent, to $7.90 in after-hours trading. During the regular session, the stock shed 31 cents, or 3.6 percent, to close at $8.25. The stock has ranged from $3.33 to $8.81 over the past year.

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