Company: AMKR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001047127-25-000087
Chunk: 152

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 152
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, existing cash and cash equivalents, short-term investments, borrowings under available credit facilities and proceeds from any additional financing.  Maintaining an appropriate level of liquidity is important to our business and depends on, among other considerations, the performance of our business, our capital expenditure levels, our ability to repay debt out of our operating cash flows or proceeds from debt or equity financings and our investment strategy.  As of March 31, 2025, we had cash and cash equivalents and short-term investments of $1,057.6 million and $505.2 million, respectively. 

Our net sales, gross profit, operating income, cash flows, liquidity and capital resources have historically fluctuated significantly from quarter to quarter due to many factors, including the seasonality of our business, the cyclical nature of the semiconductor industry and other factors discussed in the “Risk Factors” section in Part II, Item 1A of this Form 10-Q.  We will continue to make prudent investments, and we will closely manage capacity expansion and control costs in response to any changes in market conditions.

Financial Summary

Our net sales decreased $43.9 million, or 3.2%, to $1,321.6 million for the three months ended March 31, 2025 compared to $1,365.5 million for the three months ended March 31, 2024, primarily due to lower sales in our communications end market, partially offset by growth in the consumer and computing end markets.

Gross margin for the three months ended March 31, 2025 decreased to 11.9% compared to 14.8% for the three months ended March 31, 2024.  The decrease in gross margin was primarily due to a decrease in net sales and resulting lower factory utilization.  Gross margin was 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.

Operating income margin decreased 300 basis points to 2.4% for the three months ended March 31, 2025 from 5.4% for the three months ended March 31, 2024.  The decrease in our operating income margin was primarily due to the decrease in our gross margin discussed above along with an increase in research and development expenses, primarily due to development projects in new advanced packaging technologies.

Our capital expenditures totaled $79.9 million for the three months ended March 31