Selected operating data for the first quarter 2007
1st Quarter
Capital additions $55 million
Net increase in related accounts payable and deposits 4 million
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Payments for property, plant & equipment $ 51 million
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Depreciation and amortization $ 71 million
Free cash flow (a) $ 72 million
(a) Reconciliation of free cash flow to the most
directly comparable US GAAP measure:
Net cash provided by operating activities $ 123 million
Less payments for property, plant and equipment (51 million)
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Free cash flow from continuing operations $ 72 million
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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 First Quarter of 2007:
-- Capacity utilization was approximately 75%
-- First quarter assembly unit shipments were 2.0 billion, down 9% from Q4 2006
-- Our top ten customers accounted for 44% of net sales
-- End market distribution (an approximation based on a sampling of our largest customers):
Communications 38%
Consumer 32%
Computing 20%
Other 10%
-- As a percentage of net sales:
Laminate packages 52%
Leadframe packages 33%
Other 4%
Test 11%
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For the Three Months Ended
March 31,
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2007 2006
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(In thousands, except per
share data)
Net sales $650,988 $645,089
Cost of sales 503,650 490,352
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Gross profit 147,338 154,737
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Operating expenses:
Selling, general and administrative 62,667 60,204
Research and development 9,625 9,430
Provision for legal settlements and
contingencies - 1,000
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Total operating expenses 72,292 70,634
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Operating income 75,046 84,103
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Other (income) expense:
Interest expense, net 35,160 41,157
Interest expense, related party 1,563 1,788
Foreign currency (gain) loss, net (15) 3,928
Debt retirement (gain) loss, net - (451)
Other (income) expense, net (686) (485)
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Total other expense, net 36,022 45,937
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Income before income taxes and minority
interests 39,024 38,166
Income tax expense 4,107 3,612
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Income before minority interests 34,917 34,554
Minority interests, net of tax (327) (115)
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Net income $34,590 $34,439
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Net income per common share:
Basic $0.19 $0.19
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Diluted $0.18 $0.19
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Shares used in computing net income per
common share:
Basic 178,513 176,801
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Diluted 206,540 190,764
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