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Amkor 2nd-quarter net income up sharply

CHANDLER, Ariz. (AP) -- Amkor Technology Inc., which provides semiconductor packaging and test services, on Monday reported a sharp rise in its second-quarter net income due to higher mobile communications sales and as its year ago results were weighed down by one-time costs.

Still, the company said it expects third-quarter sales to be flat due to cooling demand for smartphones and gave disappointing guidance. Its stock fell 4 percent in aftermarket trading.

Net income for the three months ended June 30 after paying preferred dividends rose to $29.7 million, or 14 cents per share. That compares with net income of $581,000, or break even per share, in the prior year period. Excluding one-time items net income from the prior year period was 15 cents per share.

Analysts expected 13 cents per share in the latest quarter, according to FactSet.

Revenue rose 9 percent to $746.1 million from $686.5 million last year. Analysts expected $755.6 million.

Company CEO Joanne Solomon said some of its customers are cutting back as demand for smartphones slows down.

For the third quarter, Amkor predicts net income of 4 cents to 13 cents per share on revenue of $715 million to $765 million. Analysts were forecasting net income of 18 cents per share on revenue $780.3 million.

Shares fell 16 cents to $4.25 during aftermarket trading following the earnings report after ending the day up 7 cents at $4.41.