Amkor Technology Inc (NASDAQ:AMKR) Q3 2020 Earnings Conference Call - Final Transcript
Oct 26, 2020 • 05:00 pm ET
Q3 operating expenses were $114 million, including $6 million for restructuring costs in Japan.
Our Japan initiative is expected to reduce annual fixed costs by approximately $25 million, half of which we expect to benefit from in 2020. Excluding restructuring costs, operating expenses through the first nine months of 2020 were essentially flat with the prior-year comparable period. The combination of strong revenue growth and continued spending discipline drove Q3 operating margin up 200 basis points sequentially to 9.4%. Q3 EBITDA increased 20% sequentially to $250 million and EBITDA margin was 19%.
Moving on to our fourth quarter outlook, we expect revenue to be between $1.25 billion and $1.35 billion. Gross margin for Q4 is expected to be between 17% and 20%. We expect Q4 operating expenses of around $120 million, including restructuring charges of approximately $12 million, primarily related to our Japan initiatives. With the increase in profit before tax, we expect a lower annual effective tax rate in the mid-teens. We expect net income to be in the range of $68 million to $115 million, and earnings per share to be in the range of $0.28 to $0.47.
As Giel stated earlier, our 2020 forecast for capital expenditures of $550 million may increase by up to 5% to $575 million, as we evaluate demand and growth opportunities for 2021.
With that, we will now open the call up for your questions. Operator, you may begin the polling now.