Amkor Technology Quarterly Profit Sinks 86%

Amkor Technology, a company that tests and assembles microchips, unveiled a second quarter report that showed a massive fall in profit. Among the companies main customers are Intel and IBM.

Last year in the second quarter, Amkor Technology profited $65 million. This year, their profits were all the way down to $9 million. The drop was $56 million — or about 86%. Sales for the second quarter this year were down more than 25% to $507.

The good news? Amkor Technology actually did better than expected. Experts believed that the company would actually lose money this quarter. The revenue came in more than $35 million higher than expected.

Investors were apparently happy with the numbers as shown by the fact that Amkor Technology’s stock was heading north after the release of their quarterly report. The CEO of Amkor Technology, James Kim, was also happy.

Said Kim: “I am pleased with our second quarter performance in a very difficult economic environment. Our strategy of managing and aligning costs with customer demand is working. We achieved gross margin of 20% for the quarter, up sequentially from 12% in the first quarter of 2009, despite a $7 million charge to exit our manufacturing operations in Singapore. At the same time, we continued our disciplined approach in making capital spending decisions, which allowed us to generate free cash flow and strengthen our cash position.”

Amkor Technology (Image: Flickr)