Amkor Tech shares plunge on 2Q sales outlook cut

The stock was down $1, or 10.5 percent, at $8.52. It has ranged from $6.14 to $15.98 over the past year.

Late Thursday, the Chandler, Ariz.-based company predicted a second-quarter revenue decline of 1 percent to 2 percent from the first quarter, compared with a previous forecast for growth between 1 percent and 3 percent. The company cited production disruptions stemming from the implementation of new information technology at its Philippines facilities.

Amkor's new guidance implies revenue of $692.5 million to $685.5 million. On average, analysts polled by Thomson Financial projected revenue of $710.8 million.

"The fat lady might be warming up," Citi analyst Timothy M. Arcuri warned in a note to investors late Thursday.

Arcuri, who rates Amkor "Sell," predicted more bad news is in store for the company.

"While Amkor attributes the miss to (enterprise resource planning) we believe weakening demand is playing--and will continue to play--a part," he wrote. "This is consistent with our view since last earnings call that Amcor would ultimately miss its second-quarter guidance ... and we think the proof will be in the pudding once Amkor guides for and/or eventually misses the third quarter."

Furthermore, Arcuri predicted fewer chips will be shipped through late summer as compared with last year. "Amkor has never been able to grow revenue in a decelerating unit environment," he added.

In a client note Friday, Lehman Brothers analyst C.J. Muse wrote that the guidance reduction was "not surprising" given that Amkor already had disclosed the technology problems, though the company had not quantified the impact.