CHANDLER, Ariz. -- Following its exit from the silicon foundry business, Amkor Technology Inc. here reported a net loss of $383.5 million, or minus $2.33 per share, on sales of $409.9 million, for its second quarter of 2002.
This compares to a loss of $188 million, or minus $0.15 a share, on sales of $350 million in the first quarter of this year. In the like period a year ago, Amkor reported a loss of $116.3 million, or minus $0.76 a share, on sales of $350.2 million.
The second-quarter results included $311 million in special charges and impairment of Amkor's equity investment in its silicon foundry partner, Anam Semiconductor Inc. of South Korea.
As reported, Amkor said it plans to exit the foundry business as a result of its previously announced deal with South Korea's Dongbu Group (see July 29 story ). Earlier this month, Amkor sold 20 million shares worth about $186.5 million in Anam to another competitor--Dongbu, based in Seoul. Amkor's ownership interest in Anam will be reduced from 43% to 22% (see July 10 story ).
During the quarter, Amkor also consolidated some of its U.S. office locations and closed its San Jose test facility. Test development is now centralized in Wichita, Kansas. In connection with these activities, the company recognized $4.8 million in lease cancellation costs and other facility exit expenses.
Meanwhile, the company's second-quarter revenue and gross margin were in line with guidance. Assembly and test revenue rose 21% to $350 million, from $289 million in the first quarter. Wafer fab revenue was $59 million compared with $61 million in the first quarter.
"Significant recovery was noted in the company's core assembly business during the second quarter, however, test assets and several non-core assembly assets remained at low utilization rates during the quarter relative to projected rates, and are no longer expected to reach anticipated utilization levels," according to Amkor of Chandler.
Amkor expects third-quarter assembly & test revenue to be around 5% higher than the second quarter. Wafer fab revenue should be down modestly. It also expects to incur approximately $10-to-$15 million of charges during the third quarter in connection with additional consolidation initiatives and cost reductions.