Amkor will conduct a conference call on April 30, 2008 at 5:00 p.m. eastern time. The call can be accessed by dialing 303-205-0033, or by visiting the investor relations page of our website: www.amkor.com or CCBN’s website: www.companyboardroom.com. An archive of the webcast can be accessed through the same links, and will be available until our next quarterly earnings conference call. An audio replay of the call will be available for 48 hours following the conference call by dialing 303-590-3000 passcode: 11110795.
About Amkor
Amkor is a leading provider of semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronics design and manufacturing services. More information on Amkor is available from the company’s SEC filings and on Amkor’s website: www.amkor.com.
Forward Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical fact are considered forward looking statements including, without limitation, statements regarding the following: our stability within a challenging economy; our anticipated revenue growth; our anticipated level of debt repayment in 2008; our focus on continuing a disciplined approach to capital spending; our expectations regarding capital intensity and the allocation of capital expenditures among our businesses; the expected dollar amount of our capital additions and the focus of our capital spending; the timing of our capital spending during the year; expectations regarding our effective tax rate for 2008; and the statements regarding sales, gross margin and net income per diluted share contained under Business Outlook. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward looking statements, including, but not limited to, the following: the highly unpredictable nature of the semiconductor industry; inability to achieve high capacity utilization rates; volatility of consumer demand for products incorporating our semiconductor packages; weakness in the forecasts of Amkor’s customers; customer modification of and follow through with respect to forecasts provided to Amkor; curtailment of outsourcing by our customers; our substantial indebtedness and restrictive covenants; failure to realize sufficient cash flow to fund capital expenditures; deterioration of the U.S. or other economies; the highly unpredictable nature and costs of litigation and other legal activities and the risk of adverse results of such matters, including our litigation with Tessera; the outcome of the pending SEC investigation; worldwide economic effects of terrorist attacks, natural disasters and military conflict; competitive pricing and declines in average selling prices; timing and volume of orders relative to production capacity; fluctuations in manufacturing yields; competition; dependence on international operations and sales; dependence on raw material and equipment suppliers and changes in raw material costs; exchange rate fluctuations; dependence on key personnel; difficulties in managing growth; enforcement of intellectual property rights; environmental and other governmental regulations; and technological challenges.
Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2007 and in the company’s subsequent filings with the Securities and Exchange Commission made prior to or after the date hereof. Amkor undertakes no obligation to review or update any forward looking statements to reflect events or circumstances occurring after the date of this press release.
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AMKOR TECHNOLOGY, INC. |
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Selected Operating Data |
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| Sales Data: | Q1 2008 | Q4 2007 | Q1 2007 | |||||||||
| Packaging services: | ||||||||||||
| Wirebond - Leadframe | 29 | % | 31 | % | 32 | % | ||||||
| Wirebond - Laminate | 40 | % | 40 | % | 38 | % | ||||||
| Flip chip and wafer level processing | 19 | % | 18 | % | 19 | % | ||||||
| Packaging services | 88 | % | 89 | % | 89 | % | ||||||
| Test services | 12 | % | 11 | % | 11 | % | ||||||
| Total Sales | 100 | % | 100 | % | 100 | % | ||||||
| Packaged units (in billions) | 2.2 | 2.4 | 2.0 | |||||||||
| Net sales from top ten customers | 50 | % | 49 | % | 44 | % | ||||||
| Capacity utilization | 80 | % | 86 | % | 75 | % | ||||||
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End Market Distribution Data (an approximation based on sampling of our largest customers): |
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| Communications | 41 | % | 40 | % | 38 | % | ||||||
| Consumer | 32 | % | 34 | % | 32 | % | ||||||
| Computing | 17 | % | 17 | % | 20 | % | ||||||
| Other | 10 | % | 9 | % | 10 | % | ||||||
| Total | 100 | % | 100 | % | 100 | % | ||||||
| Earnings per Share Data: | Q1 2008 | Q4 2007 | Q1 2007 | |||||||||
| (in millions) | ||||||||||||
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Net income |
$ | 72 | $ | 94 | $ | 35 | ||||||
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Adjustment for dilutive securities on net income: |
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Interest on 2.5% convertible notes due 2011, net of tax |
1 | 1 | 1 | |||||||||
| Interest on 6.25% convertible notes due 2013, net of tax | 2 | 2 | 1 | |||||||||
| Net income - diluted | $ | 75 | $ | 97 | $ | 37 | ||||||
| Weighted average shares outstanding - basic | 182 | 182 | 179 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Stock options | 1 | 1 | 2 | |||||||||
| 2.5% convertible notes due 2011 | 13 | 13 | 13 | |||||||||
| 6.25% convertible notes due 2013 | 13 | 13 | 13 | |||||||||
| Weighted average shares outstanding - diluted | 209 | 209 | 207 | |||||||||
| Q1 2008 | Q4 2007 | Q1 2007 | ||||||||||
| (in millions) | ||||||||||||
| Capital Investment Data: | ||||||||||||
| Capital additions | $ | 95 | $ | 101 | $ | 55 | ||||||
| Net change in related accounts payable and deposits | (6 | ) | (25 | ) | (4 | ) | ||||||
| Payments for property, plant and equipment | $ | 89 | $ | 76 | $ | 51 | ||||||
| Depreciation and amortization | $ | 74 | $ | 72 | $ | 71 | ||||||
| Free Cash Flow Data: | ||||||||||||
| Net cash provided by operating activities | $ | 181 | $ | 189 | $ | 123 | ||||||
| Less payments for property, plant and equipment | (89 | ) | (76 | ) | (51 | ) | ||||||
| Free cash flow* | $ | 92 | $ | 113 | $ | 72 | ||||||
