Amkor Technology Inc. nearly doubled net income in its first quarter ended March 31, as the world's largest IC package manufacturer saw revenue increase by 32%.
The West Chester, Pa., company reported net profits of $37.2 million, or 27 cents per share, up from $18.9 million, or 16 cents per share, in the comparable year-ago quarter.
Revenue rose to $555 million from $420 million in the first quarter of 1999. Assembly and test revenue rose 34% to $469 million from $351 million a year ago, while wafer foundry revenue climbed to $86 million, compared with $69 million in the first 1999 quarter.
Operating income in the just-ended quarter was $63.4 million, compared with $30.2 million a year ago.
"This was a very satisfying first quarter, as robust business conditions in the semiconductor industry overrode what is typically a slow start," said John Boruch, Amkor's president. "We have been responding to this healthy industry environment by agg ressively building our packaging design and development staff, and by expanding manufacturing capacity."
First quarter assembly unit shipments rose 46% over the year-ago quarter and 4.3% sequentially. High-end (advanced lead-frame and laminate) products were 63% of packaging and test revenue for the first quarter, compared with 59% in the first quarter of 1999.
The company said the recent acquisition of manufacturing plants from Anam Semiconductor Inc. will help it increase its market lead going forward.
"Based on aggregate customer forecasts, we believe that our business will continue to strengthen over the course of 2000," Boruch said. "We are seeing exceptionally strong forecasted demand for the second half of the year. As we noted earlier this week, the acquisition of [fabs] K1, K2 and K3 strengthens Amkor's leadership position in semiconductor assembly & test and will enhance the profitability of our core business.
"We also believe that the strategic investment in Anam Semiconductor pr esents an outstanding opportunity to capitalize on the increasing value of Anam's wafer foundry operation," he said
Amkor said that Anam's wafer foundry has entered the second quarter with a run rate of more than 23,000 wafers per month and should reach full design capacity of 30,000 wafers per month by the end of 2000. The foundry is focused on the strengthening market for DSPs and other communications ICs and is currently producing wafers down to the 0.18 micron level.
In addition to its primary customer -- Texas Instruments Inc -- the foundry supplies services to Alcatel, Atmel, Ericsson, NEC, and Toshiba.