Amkor 2Q profit declines 86 percent as sales drop

CHANDLER, Ariz. — Microchip assembly and test company Amkor Technology Inc. said Wednesday its second-quarter profit tumbled 86 percent as sales slid amid the global economic downturn. But the results beat Wall Street expectations.

Net income fell to $9 million, or 5 cents per share, for the three months ended June 30. That compares with a profit of $65 million, or 33 cents per share, in the year-earlier period.

Sales plunged 27 percent to $507 million.

Analysts expected a loss of a penny on lower revenue of $471.5 million, according to a survey by Thomson Reuters. Those estimates generally exclude special items.

“We are seeing improvement in customer demand for the second half of 2009,” James Kim, Amkor’s chairman and chief executive, said in a statement.

Based on current customer forecasts, he said, the company expects third-quarter net sales to increase 17 percent to 21 percent from the previous quarter, reflecting higher-than-typical seasonal growth, and gross margin of 23 to 25 percent.

For the third quarter, Amkor said it expects net income of 17 cents to 22 cents per share. Analysts expect a profit of 6 cents per share.

Shares of Amkor rose 49 cents, or 8.8 percent, in after-hours trading. During the regular session, the stock slid 18 cents, or 3.1 percent, to $5.60 per share.