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Amkor Technology revenue down, shares fall
Microchip packaging and testing company Amkor Technology Inc (AMKR.O: Quote, Profile , Research) on Wednesday posted a drop in third-quarter revenue and a weak fourth-quarter outlook, sending shares down nearly 10 percent.
Citing pricing pressure, Amkor said revenue fell 3.5 percent to $689 million from $714 million a year earlier.
"Third-quarter 2007 sales reflect the impact of product mix and to a lesser extent a degree of pricing pressure experienced on select packages during the quarter," said Ken Joyce, chief financial officer of Amkor.
For the fourth quarter, the company expects net income in the range of 25 cents to 30 cents per diluted share.
Amkor forecast revenue would rise slightly from the third quarter in the fourth, while analysts on average expected revenue of $735.9 million and earnings of 32 cents.
Third-quarter net income was $61 million, or 30 cents per share, compared with net income of $53 million, or 27 cents per diluted share, in the third quarter of 2006. Tax gains helped boost earnings.
Excluding an after-tax gain and an income tax benefit, Amkor posted earnings of 27 cents per share, topping the Wall Street target of 26 cents, according to Reuters Estimates.
The stock fell to $9.40, or 9.7 percent, after closing at $10.41 a share on Nasdaq on Wednesday. (Reporting by Sue Zeidler, editing by Gary Hill)
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=marketsNewsUS&storyID=2007-11-07T225524Z_01_N07561900_RTRIDST_0_AMKORTECH-RESULTS-UPDATE-2.XML
Microchip packaging and testing company Amkor Technology Inc (AMKR.O: Quote, Profile , Research) on Wednesday posted a drop in third-quarter revenue and a weak fourth-quarter outlook, sending shares down nearly 10 percent.
Citing pricing pressure, Amkor said revenue fell 3.5 percent to $689 million from $714 million a year earlier.
"Third-quarter 2007 sales reflect the impact of product mix and to a lesser extent a degree of pricing pressure experienced on select packages during the quarter," said Ken Joyce, chief financial officer of Amkor.
For the fourth quarter, the company expects net income in the range of 25 cents to 30 cents per diluted share.
Amkor forecast revenue would rise slightly from the third quarter in the fourth, while analysts on average expected revenue of $735.9 million and earnings of 32 cents.
Third-quarter net income was $61 million, or 30 cents per share, compared with net income of $53 million, or 27 cents per diluted share, in the third quarter of 2006. Tax gains helped boost earnings.
Excluding an after-tax gain and an income tax benefit, Amkor posted earnings of 27 cents per share, topping the Wall Street target of 26 cents, according to Reuters Estimates.
The stock fell to $9.40, or 9.7 percent, after closing at $10.41 a share on Nasdaq on Wednesday. (Reporting by Sue Zeidler, editing by Gary Hill)
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=marketsNewsUS&storyID=2007-11-07T225524Z_01_N07561900_RTRIDST_0_AMKORTECH-RESULTS-UPDATE-2.XML
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