Amkor Technologies posts improved profits due to smartphone demand

Amkor reported a net income of $4.7m on revenue of $917.3m for the second quarter results published overnight, beating analyst estimates.

The chip packaging and testing service saw its shares rally 11% in afterhours trading to $7.16.

Amkor President and CEO Steve Kelley said the accelerated recovery from Japan earthquakes, in part, drove this strong performance. An Amkor factory in Japan was hit by an earthquake earlier this year, causing significant damage.

“I would like to thank the extraordinary efforts of our Japanese team who assisted in our recovery process,” Kelley said in a call with analysts.

Strong showings in the company's smartphone operations allowed it to post the profit results. “We benefited from better than expected performance in Japan and in the high-end Android smartphone market," Kelley pointed out in a press release.

Amkor will spend about $13m in earthquake costs, with another $4m expected.

“Taking into account insurance payments anticipated later this year, we expect the net impact of the Japan earthquakes on our full year 2016 results to be minimal,” Solomon said.