Amkor Technology, Inc.

Good day, ladies and gentlemen, and welcome to the Amcor Technology fourth quarter and full year 2024 earnings conference call. My name is Diego, and I will be your conference facilitator today. At this time, all participants are in a listen-only mode. After the speaker's remarks, we will conduct a question and answer session. As a reminder, this conference is being recorded. I would now like to turn the call over to Jennifer Ju, Head of Investor Relations. Ms. Ju, please go ahead.

Ms. Thank you, Operator. Good afternoon, everyone, and thank you for joining us for AMCOR's fourth quarter 2024 earnings conference call. Joining me today are Gil Rutten, our Chief Executive Officer, and Megan Faust, our Chief Financial Officer. Our earnings press release was filed with the SEC this afternoon and is available on the investor relations page of our website, along with the presentation slides that accompany today's call. During this presentation, we will use non-GAAP financial measures, and you can find the reconciliation to the US GAAP equivalent on our website. We will make forward-looking statements about our expectations for AMCOR's future performance based on the environment as we currently see it. Of course, actual results could differ. Please refer to our press release and SEC filings for information on risk factors, uncertainties, and exceptions that could cause actual results to differ materially from these expectations. Please note that the financial results discussed today are preliminary, and final data will be included in our Form 10-K. And now, I'll turn the call over to Gil.

Thank you, Jennifer. Good afternoon, everyone, and thank you for joining the call today. MCOR delivered fourth-quote results in line with guidance, with revenue of $1.63 billion and EPS of 43 cents. For the full year 2024, revenue was $6.3 billion, a 3% decline from the previous year. The year met our expectations, except for the weakness in the automotive and industrial end market, where we had expected improvement in the second half. During the year, we achieved several significant milestones. Advanced packaging revenue increased 3% year-over-year, and advanced SAP reached a record of $3.1 billion. The computing end market reached a record of $1.2 billion, driven by growth in ARM-based PCs and 2.5D technology for AI GPUs. We qualified our new Vietnam facility and REM production for system and package and memory devices, We solidified our U.S. manufacturing strategy and secured $407 million in CHIPS funding to support our planned Arizona facility, and we expanded our partnership with TSMC to support advanced packaging in the U.S. and with Infineon to support power modules in Europe. Despite the dynamic macro environment and short-term challenges, we remained focused on strengthening our technology leadership in advanced packaging, expanding our global footprint, and partnering with lead customers in growth markets. Now let me discuss each of our end markets. In the fourth quarter, revenue in our communications end market declined 25% sequentially due to a change in build pattern for new iOS phones and temporarily lower content in the latest iOS phone due to an SIP socket that we are not participating in. This socket gap drove the 7% decline in our total communication revenue for the full year 2024. The iOS revenue decline was slightly offset by Android growth of 9% for the full year. For 2025, we expect our communications business to be muted in the first half, followed by above-seasonal growth in the second half. We're closely collaborating with our strategic customer and are confident in recovering the SIP socket in the next generation iOS phones. We expect continued improvement in Android revenue and are projecting total communication revenue to be flat year on year. Revenue in our computing end market increased 13% sequentially and 16% for the full year to record levels. Strong demand for AI GPUs and ramping programs supporting ARM-based PCs led to growth, while weakness in traditional servers and networking dampened upside. Within the past few weeks, dynamics within the AI data center supply chain have impacted our 2.5D growth expectations for the year. The accelerated transition to a new AI GPU product family together with new trade restrictions have resulted in an adjusted near-term outlook. We expect to continue running volume for 2.5D AI GPUs, but at a lower level than previously anticipated. As we navigate these dynamics, We remain confident in our project pipeline, including our new 2NRFD customer that continues to ramp volume, and our first programs on the next-generation RDL interposer technology, which started low-volume production. The uncertain geopolitical environments limit visibility for the full year. However, we expect our computing end market to show mild growth for the full year. In the fourth quarter, revenue in our automotive and industrial end market declined 8% sequentially, missing our flat to mild growth expectations. Customer forecasts deteriorated throughout the quarter due to macro weakness and tight inventory control. For the full year, the automotive and industrial end market declined 16% compared to 23% and we have experienced seven quarters in a row of year-on-year declines. From our peak in 2022, revenue has declined nearly $300 million, primarily due to declines in mainstream products. For 2025, we expect advanced packaging programs in automotive to grow in the mid-teens percent and remain optimistic about the recovery in our mainstream portfolio, although the timing is uncertain. Overall, we anticipate softness in the first part of the year and mild full-year growth. Revenue in our consumer end market increased 10% for full-year 2024, driven by the ramp of a new hearable program utilizing advanced SAP technology. This program helped to offset headwinds in other traditional consumer applications, and revenue in the fourth quarter remained relatively steady after a steep ramp in the third quarter. For 2025, we expect mild growth, driven by a full year of production for the hearable program and modest improvements in traditional consumer programs. Now I will turn to our first quarter outlook. For Q1, we expect revenue of $1.275 billion, reflecting a year-on-year decline of 7%, primarily due to the temporary socket gap in the current iOS phones. For full year 2025, we foresee a muted first half, followed by a strong second half, driven by the content recovery in the next generation of iOS phones. With each of the end markets expected to be flat to slightly up, we expect total company revenue to be flat to low single-digit growth for the year. With that, I will now turn the call over to Megan to provide more detailed financial information.