Amkor Technology Files Q3 2024 10-Q Report

TL;DR

**AMKR Q3 2024 10-Q FILED: Financials and operational details released.**

AI Summary

Amkor Technology, Inc. filed its 10-Q report for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial data and disclosures relevant to investors and stakeholders are presented.

Why It Matters

This filing provides crucial financial and operational insights into Amkor Technology's performance during the third quarter of 2024, impacting investor decisions and market perception.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the semiconductor industry can be subject to cyclical demand and geopolitical risks.

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20241029 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• AMKOR TECHNOLOGY, INC. (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241029 (date) — Date of filing
• TEMPE, AZ (location) — Company headquarters location

FAQ

Key Financial Figures

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

Filing Documents

• amkr-20240930.htm (10-Q) — 1548KB
• amkr9302024ex311.htm (EX-31.1) — 10KB
• amkr9302024ex312.htm (EX-31.2) — 10KB
• amkr9302024ex32.htm (EX-32) — 8KB
• 0001047127-24-000203.txt ( ) — 7496KB
• amkr-20240930.xsd (EX-101.SCH) — 42KB
• amkr-20240930_cal.xml (EX-101.CAL) — 86KB
• amkr-20240930_def.xml (EX-101.DEF) — 182KB
• amkr-20240930_lab.xml (EX-101.LAB) — 601KB
• amkr-20240930_pre.xml (EX-101.PRE) — 387KB
• amkr-20240930_htm.xml (XML) — 1175KB

Financial Information

PART I. Financial Information Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Consolidated Statements of Income - Three and Nine Months Ended September 30, 2024 and 2023 3 Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2024 and 2023 4 Consolidated Balance Sheets - September 30, 2024 and December 31, 2023 5 Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended September 30, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 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 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 32

Other Information

PART II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Defaults Upon Senior Securities 52 Item 4. Mine Safety Disclosures 52 Item 5. Other Information 52 Item 6. Exhibits 53

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 September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands, except per share data) Net sales $ 1,861,589 $ 1,821,793 $ 4,688,574 $ 4,751,254 Cost of sales 1,589,105 1,539,040 4,002,072 4,087,210 Gross profit 272,484 282,753 686,502 664,044 Selling, general and administrative 80,753 73,020 262,379 216,551 Research and development 42,364 43,135 120,103 135,870 Total operating expenses 123,117 116,155 382,482 352,421 Operating income 149,367 166,598 304,020 311,623 Interest expense 15,622 13,001 47,866 43,522 Other (income) expense, net ( 8,130 ) ( 8,777 ) ( 39,273 ) ( 24,212 ) Total other expense, net 7,492 4,224 8,593 19,310 Income before taxes 141,875 162,374 295,427 292,313 Income tax expense 19,185 28,923 45,693 49,194 Net income 122,690 133,451 249,734 243,119 Net income attributable to non-controlling interests ( 121 ) ( 837 ) ( 1,371 ) ( 868 ) Net income attributable to Amkor $ 122,569 $ 132,614 $ 248,363 $ 242,251 Net income attributable to Amkor per common share: Basic $ 0.50 $ 0.54 $ 1.01 $ 0.99 Diluted $ 0.49 $ 0.54 $ 1.00 $ 0.98 Shares used in computing per common share amounts: Basic 246,480 245,740 246,239 245,571 Diluted 247,922 247,129 247,798 247,080 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 September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Net income $ 122,690 $ 133,451 $ 249,734 $ 243,119 Other comprehensive income (loss), net of tax: Adjustments to net unrealized gains (losses) on available-for-sale debt investments 662 124 143 216 Adjustments to unrealized components of defined benefit pension plans ( 84 ) ( 97 ) ( 254 ) ( 292 ) Foreign currency translati

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 September 30, 2024, and for the three and nine months ended September 30, 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 and nine months ended September 30, 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 res

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) prior to vesting. The number of shares of our common stock to be received annually from the EPS PSUs at vesting will range from 0 % to 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 resulting grant date fair value of the rTSR 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. The new standard will result in enhanced disclosures in our financial statements. 2. Net Sales by Product Group and End Market The following table presents our net sales by product group: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) (In thousands) Advanced products (1) $ 1,567,604 $ 1,451,707 $ 3,817,156 $ 3,603,445 Mainstream products (2) 293,985 370,086 871,418 1,147,809 Total net sales $ 1,861,589 $ 1,821,793 $ 4,688,574 $ 4,751,254 (1) Advanced products inclu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) 3. Other Income and Expense Other income and expense consist of the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Interest income $ ( 15,862 ) $ ( 12,137 ) $ ( 50,356 ) $ ( 34,589 ) Foreign currency loss (gain), net 7,980 5,659 11,446 12,471 Other, net ( 248 ) ( 2,299 ) ( 363 ) ( 2,094 ) Total other (income) expense, net $ ( 8,130 ) $ ( 8,777 ) $ ( 39,273 ) $ ( 24,212 ) 4. Income Taxes Income tax expense of $ 45.7 million for the nine months ended September 30, 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 $ 29.5 million as of September 30, 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

View Full Filing

View this 10-Q filing on SEC EDGAR