SAN JOSE, Calif. Amkor Technology Inc. on Wednesday (Sept. 29) lowered its third-quarter forecast amid an ongoing slowdown in its IC-packaging and test business.
Amkor (Chandler, Ariz.) said that revenues for the third quarter ended September 30, are expected to be approximately $480 million, or 3 percent lower than the second quarter of 2004. This compares with prior guidance of flat quarter-over-quarter revenue.
The net loss for the third quarter is expected to be approximately $0.13 cents per diluted share, compared with prior guidance of a net loss of $0.07 to $0.09.
"Our revenue shortfall in the third quarter was due to declining customer forecasts during the quarter and lower-than-expected support of these forecasts, which we believe reflects an industry-wide inventory correction that has distorted the normal seasonal trends in our business," said John Boruch, Amkor's president and chief operating officer, in a statement. "Our view is that the
semiconductor industry is experiencing a classical correction, and it is unclear at this time when business will improve."
The disclosure follows a string of disappointing quarters and the recent resignation of Bruce Freyman, president and chief operating officer of Amkor. Boruch, vice chairman of Amkor, moved back into his former role as president and COO (see Aug. 25 story).
The news also reflects a slowdown in the backend. Recent book-to-bill figures indicate that the front-end semiconductor equipment market is thriving, while the back-end is slowing down.