Amkor Technology, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Amkor Technology, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

AMKOR TECHNOLOGY, INC. (AMKR) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Amkor Technology, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. Amkor Technology, Inc. is incorporated in Delaware. The company's principal business address is in Tempe, Arizona.

Why It Matters

For investors and stakeholders tracking AMKOR TECHNOLOGY, INC., this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Amkor Technology, Inc. for the first quarter of 2024. Understanding the details within this 10-Q is crucial for assessing the company's current financial health and future prospects in the semiconductor industry.

Risk Assessment

Risk Level: low — AMKOR TECHNOLOGY, INC. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any unusual or high-risk disclosures.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Amkor Technology's Q1 2024 performance.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-01 — Filing Date (FILED AS OF DATE)
• 1231 — Fiscal Year End (FISCAL YEAR END)
• 3674 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• AMKOR TECHNOLOGY, INC. (company) — FILER
• AMKR (company) — ticker symbol
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-01 (date) — FILED AS OF DATE
• DE (jurisdiction) — STATE OF INCORPORATION
• AZ (state) — BUSINESS ADDRESS STATE
• 480-821-5000 (phone_number) — BUSINESS PHONE

FAQ

Industry Context

Amkor Technology operates in the semiconductor packaging and testing industry, a critical segment of the broader electronics manufacturing sector.

Regulatory Implications

The filing is a standard Form 10-Q, adhering to SEC regulations for quarterly financial reporting by public companies.

What Investors Should Do

1. Analyze the financial statements (balance sheet, income statement, cash flow) for the quarter ended March 31, 2024.
2. Review the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section for insights into performance drivers and trends.
3. Check for any new risk factors or updates to existing ones disclosed in the filing.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the most current financial data compared to previous filings.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value AMKR The NASDAQ Global Select

Filing Documents

• amkr-20240331.htm (10-Q) — 1267KB
• amkr3312024ex311.htm (EX-31.1) — 10KB
• amkr3312024ex312.htm (EX-31.2) — 10KB
• amkr3312024ex32.htm (EX-32) — 8KB
• 0001047127-24-000094.txt (&nbsp;) — 6681KB
• amkr-20240331.xsd (EX-101.SCH) — 42KB
• amkr-20240331_cal.xml (EX-101.CAL) — 85KB
• amkr-20240331_def.xml (EX-101.DEF) — 175KB
• amkr-20240331_lab.xml (EX-101.LAB) — 572KB
• amkr-20240331_pre.xml (EX-101.PRE) — 372KB
• amkr-20240331_htm.xml (XML) — 990KB

Financial Information

PART I. Financial Information Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Consolidated Statements of Income - Three Months Ended March 31, 2024 and 2023 3 Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2024 and 2023 4 Consolidated Balance Sheets - March 31, 2024 and December 31, 2023 5 Consolidated Statements of Stockholders' Equity - Three Months Ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 29

Other Information

PART II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Form 10-Q") contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding (1) the amount, timing and focus of our expected capital investments in 2024, (2) our ability to fund our operating activities and financial requirements for the next twelve months, (3) the effect of changes in revenue levels and capacity utilization on our gross margin, (4) the impact of health conditions or pandemics, such as the Covid-19 pandemic, on our operations, financial results and supply chain, (5) the focus of our research and development activities, (6) the anticipated impact of tax law changes in the jurisdictions in which we operate, (7) the grant and expiration of conditional reduced tax rates in jurisdictions in which we operate and expectations regarding our effective tax rate and the availability of tax incentives, (8) the creation or release of valuation allowances related to taxes in the future, (9) our repurchase or repayment of outstanding debt, (10) payment of dividends, (11) compliance with restrictive covenants in the indentures and agreements governing our current and future indebtedness, (12) expected contributions to foreign pension plans and potential future conversion of our unfunded severance plan in Korea to a defined contribution plan, (13) liability for unrecognized tax benefits and the potential impact of our unrecognized tax benefits on our effective tax rate, (14) the effect of foreign currency exchange rate exposure on our financial results, (15) the volatility of the trading price of our common stock, (16) changes to our internal controls related to integration of acquired operations and implementation of an enterprise resource planning system, (17) our efforts to enlarge our customer base in certain geographic areas and markets, (18) demand for advanced packages in mobile and automotive devices and our techno

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended March 31, 2024 2023 (In thousands, except per share data) Net sales $ 1,365,511 $ 1,471,539 Cost of sales 1,163,868 1,277,118 Gross profit 201,643 194,421 Selling, general and administrative 90,346 78,671 Research and development 38,171 47,047 Total operating expenses 128,517 125,718 Operating income 73,126 68,703 Interest expense 16,439 16,167 Other (income) expense, net ( 15,295 ) ( 3,552 ) Total other expense, net 1,144 12,615 Income before taxes 71,982 56,088 Income tax expense 12,196 10,864 Net income 59,786 45,224 Net (income) loss attributable to non-controlling interests ( 889 ) 127 Net income attributable to Amkor $ 58,897 $ 45,351 Net income attributable to Amkor per common share: Basic $ 0.24 $ 0.18 Diluted $ 0.24 $ 0.18 Shares used in computing per common share amounts: Basic 246,008 245,330 Diluted 247,614 247,087 The accompanying notes are an integral part of these statements. -3- Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) For the Three Months Ended March 31, 2024 2023 (In thousands) Net income $ 59,786 $ 45,224 Other comprehensive income (loss), net of tax: Adjustments to net unrealized gains (losses) on available-for-sale debt investments ( 308 ) 601 Adjustments to unrealized components of defined benefit pension plans ( 85 ) ( 97 ) Foreign currency translation ( 9,047 ) ( 2,113 ) Total other comprehensive income (loss) ( 9,440 ) ( 1,609 ) Comprehensive income 50,346 43,615 Comprehensive (income) loss attributable to non-controlling interests ( 889 ) 127 Comprehensive income attributable to Amkor $ 49,457 $ 43,742 The accompanying notes are an integral part of these statements. -4- Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2024 December 31, 2023 (In thou

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Interim Financial Statements Basis of Presentation. The Consolidated Financial Statements and related disclosures as of March 31, 2024, and for the three months ended March 31, 2024 and 2023, contained in this Form 10-Q (the "Consolidated Financial Statements") are unaudited pursuant to the rules and regulations of the SEC. The December 31, 2023 Consolidated Balance Sheet data contained in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations. In our opinion, the Consolidated Financial Statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods and should be read in conjunction with the financial statements included in the 2023 Form 10-K. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024. Unless the context otherwise requires, all references to "Amkor," "we," "us" or "our" are to Amkor Technology, Inc. and its wholly and majority-owned subsidiaries. Use of Estimates. The Consolidated Financial Statements have been prepared in conformity with U.S. GAAP, using management's best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially f

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) 225 %. For the rTSR PSUs, the Company estimated the grant-date fair value of the PSUs subject to a market condition using a Monte Carlo simulation model, using the following weighted-average assumptions: risk-free interest rate of 4.33 % and annualized volatility of 46.77 %. The grant date fair value of the PSUs was $ 27.07 . The number of shares of our common stock to be received at vesting will range from 0 % to 150 % of the target grant amount based on rTSR performance over the three-year performance period. The Company recognizes the grant date fair value of the PSUs as compensation expense ratably over the vesting period. Recently Issued Standards. In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires disclosure of additional income tax information, primarily related to effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Adoption of this ASU should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the impact of this new standard on our financial statements, which is expected to result in enhanced disclosures. 2. Net Sales by Product Group and End Market The following table presents our net sales by product group: For the Three Months Ended March 31, 2024 2023 (In thousands) Advanced products (1) $ 1,069,709 $ 1,067,377 Mainstream products (2) 295,802 404,162 Total net sales $ 1,365,511 $ 1,471,539 (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream products include all other wirebond packaging and related test services. Net sales by end market consist of the following: For the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) 4. Income Taxes Income tax expense of $ 12.2 million for the three months ended March 31, 2024 reflects income taxes, foreign withholding taxes and minimum taxes. We monitor on an ongoing basis our ability to utilize our deferred tax assets and whether there is a need for a related valuation allowance. In evaluating our ability to recover our deferred tax assets in the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and recent results of operations. We maintain a valuation allowance on certain U.S. and foreign deferred tax assets. Such valuation allowances are released as the related tax benefits are realized or when sufficient evidence exists to conclude that it is more likely than not that the deferred tax assets will be realized. Unrecognized tax benefits represent reserves for potential tax deficiencies or reductions in tax benefits that could result from federal, state or foreign tax audits. Gross unrecognized tax benefits decreased from $ 31.5 million as of December 31, 2023 to $ 30.6 million as of March 31, 2024. All of our unrecognized tax benefits would reduce our effective tax rate if recognized. Our unrecognized tax benefits are subject to change for effective settlement of examinations, changes in the recognition threshold of tax positions, the expiration of statutes of limitations and other factors. We have tax returns that are open to examination in various jurisdictions for tax years 2013-2023. The open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations related to the amount and/or timing of income, deductions and tax credits. There can be no assurance that the outcome of the examinations will be favorable. In certain circumstances where we elect to appeal

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) The following table summarizes the potential shares of common stock that were excluded from diluted EPS because the effect of including these potential shares was anti-dilutive: For the Three Months Ended March 31, 2024 2023 (In thousands) Share-based awards 11 — 6. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of tax, consist of the following: Unrealized Gains (Losses) on Available-for-Sale Debt Investments (1) Defined Benefit Pension (2) Foreign Currency Translation Total (In thousands) Accumulated other comprehensive income (loss) at December 31, 2023 $ 212 $ 15,905 $ 233 $ 16,350 Other comprehensive income (loss) before reclassifications ( 253 ) — ( 9,047 ) ( 9,300 ) Amounts reclassified from accumulated other comprehensive income (loss) ( 55 ) ( 85 ) — ( 140 ) Other comprehensive income (loss) ( 308 ) ( 85 ) ( 9,047 ) ( 9,440 ) Accumulated other comprehensive income (loss) at March 31, 2024 $ ( 96 ) $ 15,820 $ ( 8,814 ) $ 6,910 Unrealized Gains (Losses) on Available-for-Sale Debt Investments (1) Defined Benefit Pension (2) Foreign Currency Translation Total (In thousands) Accumulated other comprehensive income (loss) at December 31, 2022 $ ( 1,573 ) $ 14,220 $ 4,052 $ 16,699 Other comprehensive income (loss) before reclassifications 645 — ( 2,113 ) ( 1,468 ) Amounts reclassified from accumulated other comprehensive income (loss) ( 44 ) ( 97 ) — ( 141 ) Other comprehensive income (loss) 601 ( 97 ) ( 2,113 ) ( 1,609 ) Accumulated other comprehensive income (loss) at March 31, 2023 $ ( 972 ) $ 14,123 $ 1,939 $ 15,090 (1) Amounts reclassified out of accumulated other comprehensive income (loss) are included as other (income) expense, net (Note 3). (2) Amounts reclassified out of accumulated other comprehensive income (loss) are included as a component of net

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View this 10-Q filing on SEC EDGAR