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 Fourth Quarter of 2006:
-- Capacity utilization was approximately 79%
-- Fourth quarter assembly unit shipments were 2.2 billion, down 2% from Q3 2006
Full year 2006 assembly units were 8.8 billion, up 18% from the full year 2005
-- Our top ten customers accounted for 46% of net sales
-- End market distribution (an approximation based on a sampling of our largest customers):
Communications 36%
Consumer 33%
Computing 21%
Other 10%
-- As a percentage of net sales:
Laminate packages 50%
Leadframe packages 34%
Other 5%
Test 11%
(tables to follow)
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For the For the
Three Months Ended Year Ended
December 31, December 31,
------------------- -----------------------
2006 2005 2006 2005
--------- --------- ----------- -----------
(In thousands, except per share data)
Net sales $683,011 $643,492 $2,728,560 $2,099,949
Cost of sales 509,879 487,821 2,053,600 1,744,178
--------- --------- ----------- -----------
Gross profit 173,132 155,671 674,960 355,771
--------- --------- ----------- -----------
Operating expenses:
Selling, general and
administrative 62,494 56,262 250,142 243,319
Research and development 9,337 9,653 38,735 37,347
Provision for legal
settlements and
contingencies - - 1,000 50,000
Gain on sale of
specialty test
operations - (4,408) - (4,408)
--------- --------- ----------- -----------
Total operating
expenses 71,831 61,507 289,877 326,258
--------- --------- ----------- -----------
Operating income 101,301 94,164 385,083 29,513
--------- --------- ----------- -----------
Other (income) expense:
Interest expense, net 36,477 42,584 154,807 165,351
Interest expense,
related party 1,563 521 6,477 521
Foreign currency loss
(gain), net 1,783 4,688 13,255 9,318
Debt retirement costs,
net - - 27,389 -
Other (income) expense,
net (836) (3,024) 661 (389)
------------------- ----------- -----------
Total other expense,
net 38,987 44,769 202,589 174,801
------------------- ----------- -----------
Income (loss) before
income taxes
and minority interests 62,314 49,395 182,494 (145,288)
Income tax expense
(benefit) 2,743 (5,226) 11,208 (5,551)
--------- --------- ----------- -----------
Income (loss) before
minority interests 59,571 54,621 171,286 (139,737)
Minority interests, net of
tax (524) (685) (1,202) 2,502
--------- --------- ----------- -----------
Net income (loss) $59,047 $53,936 $170,084 $(137,235)
========= ========= =========== ===========
Net income (loss) per
common share:
Basic $0.33 $0.31 $0.96 $(0.78)
========= ========= =========== ===========
Diluted $0.30 $0.30 $0.90 $(0.78)
========= ========= =========== ===========
Shares used in computing
net income (loss) per
common share:
Basic 178,109 176,721 177,682 176,385
========= ========= =========== ===========
Diluted 205,124 181,220 199,556 176,385
========= ========= =========== ===========
