SAN FRANCISOChip-packaging provider Amkor Technology Inc. saw its third quarter profit plummet to $34 million, down 48 percent from the second quarter and down 44 percent from the third quarter of 2007, the company said Wednesday (Oct. 29).
Amkor's third quarter net sales were $720 million, up 4 percent sequentially and up for 4 percent year-to-year, the company said.
Third quarter earnings per share totaled 18 cents, down 45 percent sequentially and 40 percent year-to-year, the company said.
Amkor issued fourth quarter guidance calling for sales to decrease 15 to 20 percent from the third quarter. The company said it expects fourth quarter earnings per diluted share of 3 to 12 cents.
"The current uncertainties about global economic conditions make it very difficult for our customers and us to accurately forecast and plan future business activities," said James Kim, Amkor chairman and CEO, in a statement.
Amkor said its third quarter results included a charge of $49 million relating to an interim order issued by an arbitration panel Tuesday pertaiing to Amkor's license agreement with Tessera Technologies. Inc. The final award will be determined by the panel following a recalculation of damages by the parties' respective experts, Amkor said.
Third quarter unit shipments increased 18 percent sequentially to 2.5 billion packaged units, Amkor said.
Kim said Amkor continues to focus on cutting costs. Through Sept. 30 the company has reduced its headcount by more than 700 employees, which he said is expected to save the company about $4 million per quarter.