Amkor 3Q Profit, Sales Top Forecasts

NEWS: Chip packaging and test services provider Amkor Technology Inc. on Monday posted fiscal third-quarter revenue and profit that beat analysts’ expectations.

DETAILS: CEO Steve Kelley says third-quarter sales fell in the midpoint of the company’s expectations when excluding the power discrete business. Revenue grew more than 25 percent from the preceding quarter, thanks to strength in the NAND flash memory market.

NUMBERS: Amkor said that in the three months to Sept. 30, net income was flat at $25.3 million, or 11 cents per share, even with a year ago. Excluding a loss contingency charge of $11 million, adjusted earnings came to 15 cents per share, better than the 12 cents expected by analysts polled by FactSet. Revenue grew 10.5 percent to $768 million, also above the $736 million expected.

FUTURE: The company said it expected fourth-quarter sales between $730 million and $780 million, and net income of $17 million to $44 million, or 8 to 19 cents per share. It said the quarter would benefit from a full quarter of results from its acquisition of Toshiba’s power discrete semiconductor packaging and test operation in Malaysia, which closed July 31. But that would be offset by seasonal declines in the consumer and computing end markets.

STOCK: Shares rose 2.5 percent, to $4.95, in after-hours trading, after having closed up 1.3 percent, at $4.83, in the regular session.