Packaging and test services provider Amkor today reported a big rise in Q4 sales, and a return to black ink after last year's Q4 loss.

The Chandler, Ariz.-based company said Q4 sales reached $459 million, up 8 percent sequentially and 23 percent year-over-year.  Net income came in at $23 million or 13 cents per share compared with a loss of $196 million for the same period a year ago.

For the year, revenue climbed to $1.6 billion compared with the previous year's $1.4 billion. Net income for the year also turned black at $2 million, compared with last year's loss of $827 million.

"Our 2003 results exceeded our initial expectations and were achieved during a year in which we realigned our operating structure, enhanced our balance sheet and strengthened our product development, sale and support organizations," said James Kim, chairman and CEO, in a statement.

"Since 2001 we have cautiously managed our business in an environment of economic uncertainty and cloudy visibility," he said. "This environment began to change during 2003 as customer demand improved. We believe the semiconductor industry is now entering a period of strong expansion. We are seeing strength in communications, computer and consumer markets."

During Q4, Amkor's customers' forecasts continued to strengthen, said Kim, adding that the company now expects revenue growth in Q1, normally a seasonally down quarter.

"Last quarter I said we were positioning Amkor to achieve $2 billion in revenue in 2004," he said. "Now I believe we will exceed $2 billion."

Kim said Amkor will increase production capacity and has budgeted capital expenditures of $200 million in Q1. Amkor will likely spend between $300 million and $500 million in 2004.

For Q1 Amkor is projecting a sequential revenue increase of between 2 percent and 4 percent.

By: DocMemory
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