Amkor Technology Inc., a specialist in packaging and testing computer chips, said Thursday that its earnings fell 43 percent in the first quarter even as sales notched higher.
The results offered another example of how Japan's March 11 earthquake and tsunami has affected the technology industry. The company's first-quarter revenue missed Wall Street's expectations, and it lowered its second quarter guidance as well.
Amkor's rise in revenue wasn't enough to offset an increase in expenses, and would have been higher had the company not taken a hit from the Japan disaster. Amkor operates a 211,000-square foot factory in Japan, one of the company's smallest facilities, according to regulatory filings.
Shares of the Chandler, Ariz.-based company fell 30 cents, or 4.5 percent, to $6.44 in extended trading, after results were reported. The shares had closed at $6.74 in the regular session.
Amkor helps semiconductor companies make sure their chips work properly after they roll off the assembly line. So-called "assembly and test" work is vital to the chip industry, and Amkor works as an outsourcer to companies that don't have the facilities to do it themselves.
Amkor said after the market closed that its net income was $25.1 million, or 10 cents per share, compared with $44.3 million, or 18 cents per share, a year ago. Analysts were expecting 8 cents per share, according to analysts polled by FactSet.
Revenue rose 3 percent to $665 million, up from $646 million a year ago. Amkor said its revenue would have been $6 million higher were it not for the Japan disaster.
"We remain optimistic about solid growth in the second half 2011, although there is less visibility due to the situation in Japan," Ken Joyce, Amkor's CEO, said in a statement. "Because of the current uncertainties in the electronics industry supply chain, we have reduced our sales expectations for the second quarter 2011 by $50 million. Our guidance for the second quarter is also negatively impacted by unexpected weakness in demand for wireless baseband chips by a single OEM," or original equipment manufacturer.
Amkor did not identify the manufacturer. Baseband chips are communications chips.
Amkor's second quarter guidance calls for net income of 4 cents per share to 15 cents per share, lower than analysts' projection for 19 cents per share. The company expects revenue of $650 million to $700 million.