Company: AMKR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001047127-25-000087
Chunk: 197

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 197
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 the Three Months Ended March 31,20252024Net sales100.0 %100.0 %Cost of sales:Materials52.4 %51.9 %Labor12.0 %11.2 %Depreciation10.6 %9.5 %Other manufacturing costs13.1 %12.6 %Gross margin11.9 %14.8 %Selling, general and administrative6.1 %6.6 %Research and development3.5 %2.8 %Operating income2.4 %5.4 %Net income attributable to Amkor1.6 %4.3 %

Net Sales

For the Three Months Ended March 31,20252024Change(In thousands, except percentages)Net sales$1,321,575 $1,365,511 $(43,936)(3.2)%

The decrease in net sales for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to lower sales in our communications end market, partially offset by growth in the consumer and computing end markets.  The communications end market decreased 19% compared to 2024 primarily due to lower supported content in premium tier smartphones.  The consumer and computing end markets grew 23% and 21%, respectively, compared to 2024 primarily driven by strong demand for IoT wearables, AI devices and ARM-based PCs.  

Gross Profit and Gross Margin

For the Three Months Ended March 31,20252024Change(In thousands, except percentages)Gross profit$157,583 $201,643 $(44,060)Gross margin11.9 %14.8 %(2.9)%

Our cost of sales consists principally of materials, labor, depreciation and manufacturing overhead.  Since a substantial portion of the costs at our factories is fixed, there tends to be a strong relationship between our revenue levels and gross margin.  Accordingly, relatively modest increases or decreases in revenue can have a significant effect on margin and on labor and other manufacturing costs as a percentage of revenue, depending on product mix, utilization, foreign currency exchange rate movements and seasonality.  We have expanded our business in advanced packaging, which tends to have higher material costs than our other products.  As we continue to increase production of these higher material cost products, there could be an impact on our profitability, depending on overall