We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment. Free cash flow is not defined by generally accepted accounting principles. However, we believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, our ability to service debt and our ability to fund capital expenditures. However, this measure should be considered in addition to, and not as a substitute, or superior to, cash flows or other measures of financial performance prepared in accordance with generally accepted accounting principles, and our definition of free cash flow may not be comparable to similarly titled measures reported by other companies.
For the Third Quarter of 2006:
-- Capacity utilization was approximately 81%
-- Assembly unit shipments were 2.2 billion, up slightly
from Q2 2006
-- Our top ten customers accounted for 46% of net sales
-- End market distribution (an approximation based on a sampling
of programs with some of our largest customers):
Communications 40%
Consumer 31%
Computing 17%
Other 12%
-- As a percentage of net sales:
Laminate packages 49%
Leadframe packages 36%
Other 5%
Test 10%
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For the Three Months For the Nine Months
Ended Ended
September 30, September 30,
----------------------- -----------------------
2006 2005 2006 2005
(As (As
restated) restated)
----------- ----------- ----------- -----------
(In thousands, except per share data)
Net sales $713,829 $549,641 $2,045,549 $1,456,457
Cost of sales 536,062 459,342 1,543,721 1,256,357
----------- ----------- ----------- -----------
Gross profit 177,767 90,299 501,828 200,100
----------- ----------- ----------- -----------
Operating expenses:
Selling, general
and administrative 68,477 59,633 187,648 187,057
Research and
development 9,653 8,870 29,398 27,694
Provision for legal
settlements and
contingencies - - 1,000 50,000
----------- ----------- ----------- -----------
Total operating
expenses 78,130 68,503 218,046 264,751
----------- ----------- ----------- -----------
Operating income
(loss) 99,637 21,796 283,782 (64,651)
----------- ----------- ----------- -----------
Other (income)
expense:
Interest expense,
net 36,573 40,859 118,330 122,767
Interest expense,
related party 1,563 - 4,914 -
Foreign currency
loss (gain), net 6,465 4,171 11,472 4,630
Debt retirement
costs, net - - 27,389 -
Other (income)
expense, net (878) 394 1,497 2,635
----------- ----------- ----------- -----------
Total other
expense, net 43,723 45,424 163,602 130,032
----------- ----------- ----------- -----------
Income (loss) before
income taxes and
minority interests 55,914 (23,628) 120,180 (194,683)
Income tax expense
(benefit) 2,881 (2,865) 8,465 (325)
----------- ----------- ----------- -----------
Income (loss) before
minority interests 53,033 (20,763) 111,715 (194,358)
Minority interests,
net of tax (223) 1,250 (678) 3,187
----------- ----------- ----------- -----------
Net income (loss) $52,810 $(19,513) $111,037 $(191,171)
=========== =========== =========== ===========
Net income (loss) per
common share:
Basic $0.30 $(0.11) $0.63 $(1.08)
=========== =========== =========== ===========
Diluted $0.27 $(0.11) $0.60 $(1.08)
=========== =========== =========== ===========
Shares used in
computing net income
(loss) per common
share:
Basic 178,108 176,715 177,537 176,271
=========== =========== =========== ===========
Diluted 204,482 176,715 197,539 176,271
=========== =========== =========== ===========
