Company: AMKR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001047127-25-000087
Chunk: 198

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 198
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 utilization. 

Gross profit and gross margin decreased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to a decrease in net sales and resulting lower factory utilization.  Gross profit and gross margin were also impacted by the ramp up of the Vietnam Facility, which is in the early stages of high-volume manufacturing.  These decreasing factors were partially offset by net favorable foreign currency exchange rate movements.  

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Selling, General and Administrative

For the Three Months Ended March 31,20252024Change(In thousands, except percentages)Selling, general and administrative$80,408 $90,346 $(9,938)(11.0)%

Selling, general and administrative expenses decreased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to the incremental costs incurred in 2024 during start-up at the Vietnam Facility and decreased compensation costs, partially offset by the recovery of bad debt expense in 2024.  The incremental costs incurred during start-up at the Vietnam Facility were approximately $12 million for the three months ended March 31, 2024.

Research and Development

For the Three Months Ended March 31,20252024Change(In thousands, except percentages)Research and development$45,652 $38,171 $7,481 19.6 %

Research and development activities are focused on developing new packaging and test services and improving the efficiency and capabilities of our existing production processes.  The costs related to our technology and product development projects are included in research and development expense until the project moves into production.  Once production begins, the costs relating to production become part of the cost of sales, including ongoing depreciation for the equipment previously held for research and development activities.  

Research and development expenses increased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to development projects in new advanced packaging technologies.

Other Income and Expense

For the Three Months Ended March 31,20252024Change(In thousands, except percentages)Interest expense$16,809 $16,439 $370 2.3 %Interest income(14,453)(16,796)2,343 (13.9)%Foreign currency (gain) loss, net3,760 1,545 2,215 >100%Other