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Chandler company Amkor lowers sales forecast
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Amkor Technology, a Chandler-based semiconductor assembly and testing company, said this week its fourth-quarter sales will be lower than previous estimates because of further weakness in consumer spending.
The slowdown is causing cutbacks by semiconductor buyers who are using inventory rather than placing new orders, the company said.
The company, which is located at 1900 S. Price Road, predicted that its fourth-quarter sales will be down 23 to 25 percent from the third quarter instead of its previous prediction of a 15 percent to 20 percent decline.
However, the company said it's too early to update guidance on net income. In October, the company said it expected to earn 3 cents to 12 cents a share.
Also the company expects to record a noncash impairment charge for all or most of its goodwill in the earnings report.
Actual fourth-quarter results will be released on Feb. 12.
Amkor said gross margins for the fourth quarter are expected to remain in the previously announced range of 18 percent to 21 percent despite the decline in sales. However, the company said gross margins could be affected by factors still being reviewed and could vary from estimates.
The company said it repurchased $118 million in debt during the fourth quarter, which will reduce interest expenses by about $8 million.
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