AMKR 8-K Earnings Release Q2 2012


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
July 26, 2012
AMKOR TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
DELAWARE
 
000-29472
 
23-1722724
 
 
 
 
 
(State or Other Jurisdiction of Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)

1900 SOUTH PRICE ROAD
CHANDLER, AZ 85286
(Address of Principal Executive Offices, including Zip Code)

(480) 821-5000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 






Item 2.02. Results of Operations and Financial Condition.

Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for Amkor Technology, Inc. for the three and six months ended June 30, 2012 and forward-looking statements relating to the third quarter of 2012 as presented in a press release dated July 26, 2012. The information in this Form 8-K and the exhibit attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Exhibit 99.1 discloses free cash flow, adjusted gross margin, adjusted net income and adjusted earnings per diluted share for the three months ended June 30, 2012. Free cash flow, adjusted gross margin, adjusted net income and adjusted earnings per diluted share are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles. We define free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. 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 additions. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. Adjusted gross margin, adjusted net income and adjusted earnings per diluted share exclude the impact of a loss contingency accrual for the three months ended June 30, 2012. However, these measures have limitations, including that they exclude the accrual for the arbitration panel award, which is an amount that the company may ultimately have to pay in cash. Furthermore, the factors affecting the calculation of the arbitration award are complex and subject to determination by the arbitration panel. Therefore, the final amount of the loss may be significantly more or less than the amount of the current accrual. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities, gross margin, net income and earnings per diluted share. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. The non-GAAP measures included in our press release have been reconciled to the nearest U.S. GAAP measure as required under SEC rules regarding the use of non-GAAP financial measures.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.
99.1
 
Text of Press Release dated July 26, 2012, which is furnished (not filed) herewith.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
AMKOR TECHNOLOGY, INC.

 
 
By:
/s/ Joanne Solomon
 
 
 
Joanne Solomon
 
 
 
Executive Vice President and Chief Financial Officer
 
 
Date: July 26, 2012






EXHIBIT INDEX:

Exhibit
 
Description
99.1
 
Text of Press Release dated July 26, 2012


AMKR 8-K Earnings Release Ex-99.1 Q2 2012



News Release

Amkor Technology Reports Financial Results for the Second Quarter 2012

Second Quarter 2012
Net sales $687 million
Gross margin 13%
Net income $1 million
Earnings per diluted share $0.00

Second Quarter 2012 Excluding $34 Million Charge for Loss Contingency Accrual
Adjusted gross margin 17%
Adjusted net income $33 million
Adjusted earnings per diluted share $0.15

CHANDLER, Ariz. - July 26, 2012 - Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the second quarter ended June 30, 2012, with net sales of $687 million, net income of $1 million, and earnings per diluted share of $0.00.

Second quarter results included a charge of $34 million ($32 million, net of tax), or $0.13 per diluted share (net of tax), relating to an accrual of the low end of Amkor's estimated loss for the previously announced interim order issued by an arbitration panel relating to Amkor's license agreement with Tessera, Inc. Of the total accrual, $30 million was recorded as cost of goods sold and $4 million was recorded as interest expense.

"After adjusting for the loss contingency accrual, second quarter results were consistent with our expectations," said Ken Joyce, Amkor's president and chief executive officer. "Amkor's strong position in communications continues to drive our business with notable strength in smartphones and tablets. We also saw a seasonal increase in gaming, although lower than the levels we have seen in the past few years."

Selected financial information for the second quarter 2012, excluding the loss contingency accrual, is as follows:
Net Sales: $687 million, up 5% from $655 million in the prior quarter, and flat with $688 million in the second quarter of 2011
Adjusted Gross Margin: 17%, compared to 16% in the prior quarter, and 19% in the second quarter of 2011
Adjusted Net Income: $33 million, up from $12 million in the prior quarter, and up from $14 million in the second quarter of 2011
Adjusted Earnings Per Diluted Share: $0.15, up from $0.06 in the prior quarter, and up from $0.07 in the second quarter of 2011

The adjusted items presented above are non-GAAP measures. Selected operating data for the second quarter 2012, and a reconciliation of the non-GAAP measures presented above to the comparable GAAP measures, is included in a section below before the financial statements.

“Capital additions were $149 million during the second quarter, primarily in support of specific business for customers in smartphones and tablets,” said Joanne Solomon, Amkor's executive vice president and chief financial officer. "This was about $50 million below our guidance as we saw some delays in the demand forecasts from several of our major customers that sell into smartphones and tablets."

Amkor's Board of Directors previously authorized $300 million for the repurchase of our common stock. During the second quarter 2012 the company repurchased 7.1 million shares at a purchase price of $33.2 million, for a total of 36.7 million shares at a purchase price of $166.6 million since the program commenced.

Cash and cash equivalents were $351 million, and net debt was $1.0 billion, at June 30, 2012.






Business Outlook

"We expect to see sequential third quarter sales growth of 2% to 9% driven by a seasonal increase in gaming, solid demand for communications, and a continuing recovery in the networking sector,” said Joyce. “Our growth in the third quarter is somewhat slower than anticipated due to worldwide macroeconomic uncertainties, the delay in the ramp of 28 nanometer wafer supply and the softness in end market demand by the less dominant OEMs that sell smartphones and tablets.”

"In light of these developments, we are lowering our full year 2012 capital additions expectations to around $500 million (excluding $100 million for the acquisition of land relating to our previously announced new factory and R&D center in Incheon, South Korea). Our capital additions for the first half of 2012 totaled $273 million, and we are estimating capital additions of around $150 million for the third quarter 2012, although some of that spending could move to the fourth quarter if the ramp of 28 nanometer wafer supply is pushed out," continued Joyce.

Based upon the currently available information, we have the following expectations for the third quarter 2012:
Net sales of $700 million to $750 million, up 2% to 9% from the prior quarter
Gross margin of 17% to 19%
Net income of $20 million to $44 million, or $0.10 to $0.20 per diluted share
Capital additions of around $150 million for the third quarter, and around $500 million for the full year (excluding $100 million for the acquisition of land relating to our previously announced new factory and R&D center in Incheon, South Korea)

Conference Call Information

Amkor will conduct a conference call on July 26, 2012, at 5:00 p.m. Eastern Daylight Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor's web site: www.amkor.com. You may also access the call by dialing 1-877-947-1465. A replay of the call will be made available at Amkor's web site or by dialing 1-800-406-7325 (access pass code #4553664). The webcast is also being distributed over Thomson Reuters' Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Reuters' individual investor center at www.companyboardroom.com or by visiting any of the investor sites in Thomson Reuters' Individual Investor Network. Institutional investors can access the call via Thomson Reuters' password-protected event management site, Street Events (www.streetevents.com).

About Amkor

Amkor is a leading provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs. More information about Amkor is available from the company's filings with the Securities and Exchange Commission 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, all of the statements made under "Business Outlook" above. 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 and costs of litigation and other legal activities and the risk of adverse results of such matters, including the final ruling by the arbitration panel and the impact of other proceedings involving Tessera, Inc.;
with respect to the interim order issued by the Tessera arbitration panel, we believe that $34 million is a reasonable estimate of the low end of the possible range of loss up to an amount in excess of $125 million claimed by Tessera, and that no amount in the range constitutes a better estimate than any other amount; however, the final award could





be more than the amount currently accrued, and we expect to record our estimate of interest accruing with the passage of time and may record additional charges as information develops or upon the issuance of the final award;
the highly unpredictable nature of the semiconductor industry;
the effect of the global economy on credit markets, financial institutions, customers, suppliers and consumers, including the increasingly uncertain macroeconomic environment;
timing and volume of orders relative to production capacity and inability to achieve high capacity utilization rates;
volatility of consumer demand and weakness in forecasts from our customers for products incorporating our semiconductor packages;
dependence on key customers;
the performance of our business, economic and market conditions, the cash needs and investment opportunities for the business, the need for additional capacity and facilities to service customer demand and the availability of cash flow from operations or financing;
the supply of 28 nanometer wafers;
customer modification of and follow through with respect to forecasts provided to us, including delays in forecasts with respect to smartphones and tablets;
changes in tax rates and taxes as a result of changes in tax law, the jurisdictions in which our income is determined to be earned and taxed, the outcome of tax audits and tax ruling requests, our ability to realize deferred tax assets and the expiration of tax holidays;
curtailment of outsourcing by our customers;
our substantial indebtedness and restrictive covenants;
failure to realize sufficient cash flow or access to other sources of liquidity to fund capital additions;
the effects of a recession or other downturn in the U.S. and other economies worldwide;
disruptions or deficiencies in our controls resulting from the implementation of our new enterprise resource planning system;
worldwide economic effects of terrorist attacks, natural disasters and military conflict;
our ability to control costs and improve profitability;
competition, competitive pricing and declines in average selling prices;
fluctuations in manufacturing yields;
dependence on international operations and sales;
dependence on raw material and equipment suppliers and changes in raw material and precious metal costs;
exchange rate fluctuations;
dependence on key personnel;
difficulties in managing growth;
enforcement of and compliance with 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, 2011 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.





Contact:

Amkor Technology, Inc., Chandler
Joanne Solomon
Executive Vice President & Chief Financial Officer
480-786-7878
joanne.solomon@amkor.com





AMKOR TECHNOLOGY, INC.
Selected Operating Data

 
Q2 2012
 
 
Q1 2012
 
 
Q2 2011
 
Sales Data (prior periods were revised for a refinement of our classifications):
 
 
 
 
 
 
 
 
Packaging services (in millions):
 
 
 
 
 
 
 
 
Chip scale package
$
244

 
 
$
250

 
 
$
211

 
Leadframe
176

 
 
168

 
 
187

 
Ball grid array
137

 
 
117

 
 
163

 
Other packaging
54

 
 
47

 
 
52

 
Packaging services
611

 
 
582

 
 
613

 
Test services
76

 
 
73

 
 
75

 
Total sales
$
687

 
 
$
655

 
 
$
688

 
 
 
 
 
 
 
 
 
 
Packaging services:
 
 
 
 
 
 
 
 
Chip scale package
35

%
 
38

%
 
31

%
Leadframe
26

%
 
26

%
 
27

%
Ball grid array
20

%
 
18

%
 
24

%
Other packaging
8

%
 
7

%
 
7

%
Packaging services
89

%
 
89

%
 
89

%
Test services
11

%
 
11

%
 
11

%
Total sales
100

%
 
100

%
 
100

%
 
 
 
 
 
 
 
 
 
Packaged units (in millions):
 
 
 
 
 
 
 
 
Chip scale package
480

 
 
409

 
 
442

 
Leadframe
1,589

 
 
1,457

 
 
1,671

 
Ball grid array
45

 
 
40

 
 
51

 
Other packaging
11

 
 
14

 
 
22

 
Total packaged units
2,125

 
 
1,920

 
 
2,186

 
 
 
 
 
 
 
 
 
 
Net sales from top ten customers
64

%
 
65

%
 
60

%
 
 
 
 
 
 
 
 
 
Capacity Utilization
 
 
 
 
 
 
 
 
Packaging
79

%
 
73

%
 
76

%
Test
80

%
 
78

%
 
78

%
 
 
 
 
 
 
 
 
 
End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers):
 
 
 
 
 
 
 
 
Communications (cell phones, tablets, wireless LAN, handheld devices)
45

%
 
47

%
 
38

%
Consumer (gaming, television, set top boxes, portable media, digital cameras)
23

%
 
20

%
 
26

%
Computing (PCs, laptops, hard disk drives, servers, displays, printers, peripherals)
12

%
 
13

%
 
12

%
Networking (network servers, routers, switches)
11

%
 
11

%
 
13

%
Other (auto, industrial)
9

%
 
9

%
 
11

%
Total
100

%
 
100

%
 
100

%
 
 
 
 
 
 
 
 
 
Gross Margin Data:
 
 
 
 
 
 
 
 
Net sales
100

%
 
100

%
 
100

%
Cost of sales:
 
 
 
 
 
 
 
 
Materials
43

%
 
45

%
 
43

%
Labor
15

%
 
14

%
 
15

%
Other manufacturing
25

%
 
25

%
 
23

%
Loss contingency accrual
4

%
 

%
 

%
Gross margin
13

%
 
16

%
 
19

%




AMKOR TECHNOLOGY, INC.
Selected Operating Data

 
Q2 2012
 
 
Q1 2012
 
 
Q2 2011
 
 
(In millions, except per share data)
 
Capital Investment Data:
 
 
 
 
 
 
 
 
Property, plant and equipment additions
$
149

 
 
$
124

 
 
$
97

 
Net change in related accounts payable and deposits
(38
)
 
 
(3
)
 
 
14

 
Purchases of property, plant and equipment
$
111

 
 
$
121

 
 
$
111

 
Depreciation and amortization
$
91

 
 
$
88

 
 
$
83

 
 
 
 
 
 
 
 
 
 
Free Cash Flow Data:
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
86

 
 
$
56

 
 
$
114

 
Less purchases of property, plant and equipment
(111
)
 
 
(121
)
 
 
(111
)
 
Free cash flow*
$
(25
)
 
 
$
(65
)
 
 
$
3

 
 
 
 
 
 
 
 
 
 
Earnings per Share Data:
 
 
 
 
 
 
 
 
Net income attributable to Amkor - basic
$
1

 
 
$
12

 
 
$
14

 
 
 
 
 
 
 
 
 
 
Adjustment for dilutive securities on net income:
 
 
 
 
 
 
 
 
Interest on 6.0% convertible notes due 2014, net of tax

 
 
4

 
 
5

 
Net income attributable to Amkor - diluted
$
1

 
 
$
16

 
 
$
19

 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding - basic**
166

 
 
168

 
 
197

 
Effect of dilutive securities:
 
 
 
 
 
 
 
 
Stock options and unvested restricted shares

 
 

 
 

 
6.0% convertible notes due 2014

 
 
83

 
 
83

 
Weighted average shares outstanding - diluted
166

 
 
251

 
 
280

 
 
 
 
 
 
 
 
 
 
Net income attributable to Amkor per common share:
 
 
 
 
 
 
 
 
Basic
$

 
 
$
0.07

 
 
$
0.07

 
Diluted
$

 
 
$
0.06

 
 
$
0.07

 

*We define free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. Free cash flow is not defined by U.S. GAAP. 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 additions. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies.

**Amkor's Board of Directors previously authorized $300 million for the repurchase of our common stock. During the second quarter, we repurchased 7.1 million shares of common stock for a purchase price of $33.2 million. As of June 30, 2012, we had repurchased a total of 36.7 million shares under the stock repurchase program for a purchase price of $166.6 million. From July 1, 2012, through July 25, 2012, we repurchased an additional 5.6 million shares for a purchase price of $27.1 million, for a cumulative total of 42.3 million shares for a purchase price of $193.7 million.

In the press release above we provide adjusted gross margin, adjusted net income and adjusted earnings per diluted share. We present these non-GAAP amounts to demonstrate the impact of the loss contingency accrual discussed above. However, these measures have limitations, including that they exclude the accrual for the arbitration panel award, which is an amount that the company may ultimately have to pay in cash. Furthermore, the factors affecting the calculation of the arbitration award are complex and subject to determination by the arbitration panel. Therefore, the final amount of the loss may be more than the amount of the current accrual. Accordingly, these measures that exclude the loss contingency accrual should be considered in addition to, and not as a substitute for, or superior to, gross margin, net income and earnings per diluted share prepared in accordance with U.S. GAAP. Below is the reconciliation of adjusted gross margin, adjusted net income and adjusted earnings per diluted share to U.S. GAAP gross margin, net income and earnings per diluted share.




AMKOR TECHNOLOGY, INC.
Selected Operating Data

 
 
Q2 2012
 
 
Non-GAAP Reconciliation:
 
 
 
 
Gross margin
 
13

%
 
Plus: Loss contingency accrual divided by net sales
 
4

%
 
Adjusted gross margin
 
17

%
 
 
 
 
 
 
 
 
Q2 2012
 
 
 
(In millions)
 
Net income
 
$
1

 
 
Plus: Loss contingency accrual, net of tax
 
32

 
 
Adjusted net income
 
$
33

 
 
 
 
 
 
 
 
 
Q2 2012
 
 
Earnings per diluted share
 
$

 
 
Plus: Loss contingency accrual per diluted share
 
0.13

 
 
Plus: Adjustment for dilutive effect of interest on 6.0% convertible notes due 2014, net of tax
 
0.02

 
 
Adjusted earnings per diluted share
 
$
0.15

 
 





AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

 
For the Three Months Ended
June 30,
 
For the Six Months Ended
June 30,
 
 
 
2012
 
2011
 
2012
 
2011
 
(In thousands, except per share data)
Net sales
$
686,527

 
$
687,633

 
$
1,341,537

 
$
1,352,583

Cost of sales
597,207

 
557,816

 
1,147,236

 
1,096,080

Gross profit
89,320

 
129,817

 
194,301

 
256,503

Operating expenses:
 
 
 
 
 
 
 
Selling, general and administrative
53,489

 
61,284

 
110,744

 
125,842

Research and development
13,867

 
12,559

 
27,292

 
24,688

Total operating expenses
67,356

 
73,843

 
138,036

 
150,530

Operating income
21,964

 
55,974

 
56,265

 
105,973

Other expense (income):
 
 
 
 
 
 
 
Interest expense
22,452

 
19,609

 
41,038

 
38,398

Interest expense, related party
3,492

 
2,830

 
6,984

 
5,410

Interest income
(828
)
 
(553
)
 
(1,717
)
 
(1,140
)
Foreign currency loss
1,277

 
2,932

 
2,067

 
4,663

Loss on debt retirement, net

 
15,531

 

 
15,531

Equity in earnings of unconsolidated affiliate
(892
)
 
(2,089
)
 
(2,880
)
 
(3,607
)
Other income, net
(518
)
 
(325
)
 
(1,152
)
 
(469
)
Total other expense, net
24,983

 
37,935

 
44,340

 
58,786

(Loss) income before income taxes
(3,019
)
 
18,039

 
11,925

 
47,187

Income tax (benefit) expense
(3,891
)
 
3,594

 
(529
)
 
6,976

Net income
872

 
14,445

 
12,454

 
40,211

Net (income) loss attributable to noncontrolling interests
(291
)
 
43

 
(99
)
 
(620
)
Net income attributable to Amkor
$
581

 
$
14,488

 
$
12,355

 
$
39,591

 
 
 
 
 
 
 
 
Net income attributable to Amkor per common share:
 
 
 
 
 
 
 
Basic
$

 
$
0.07

 
$
0.07

 
$
0.20

Diluted
$

 
$
0.07

 
$
0.07

 
$
0.17

 
 
 
 
 
 
 
 
Shares used in computing per common share amounts:
 
 
 
 
 
 
 
Basic
165,956

 
197,084

 
166,911

 
195,584

Diluted
166,009

 
280,009

 
167,012

 
278,810






AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)


 
June 30,
2012
 
December 31, 2011
 
(In thousands)
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
351,183

 
$
434,631

Restricted cash
2,680

 
2,680

Accounts receivable:
 
 
 
Trade, net of allowances
352,453

 
298,543

Other
18,632

 
27,197

Inventories
205,778

 
198,427

Other current assets
41,573

 
35,352

Total current assets
972,299

 
996,830

Property, plant and equipment, net
1,751,629

 
1,656,214

Intangibles, net
6,436

 
8,382

Investments
38,822

 
36,707

Restricted cash
2,214

 
4,001

Other assets
73,784

 
70,913

Total assets
$
2,845,184

 
$
2,773,047

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Short-term borrowings and current portion of long-term debt
$
69,358

 
$
59,395

Trade accounts payable
448,235

 
424,504

Accrued expenses
190,657

 
158,287

Total current liabilities
708,250

 
642,186

Long-term debt
1,085,545

 
1,062,256

Long-term debt, related party
225,000

 
225,000

Pension and severance obligations
130,993

 
129,096

Other non-current liabilities
18,129

 
13,288

Total liabilities
2,167,917

 
2,071,826

Equity:
 
 
 
Amkor stockholders' equity:
 
 
 
Preferred stock

 

Common stock
198

 
197

Additional paid-in capital
1,612,840

 
1,611,242

Accumulated deficit
(786,107
)
 
(798,462
)
Accumulated other comprehensive income
11,122

 
10,849

Treasury stock
(168,840
)
 
(130,560
)
Total Amkor stockholders' equity
669,213

 
693,266

Noncontrolling interests in subsidiaries
8,054

 
7,955

Total equity
677,267

 
701,221

Total liabilities and equity
$
2,845,184

 
$
2,773,047





AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 
For the Six Months Ended
June 30,
 
2012
 
2011
 
(In thousands)
Cash flows from operating activities:
 
 
 
Net income
$
12,454

 
$
40,211

Depreciation and amortization
179,182

 
166,468

Loss on debt retirement, net

 
10,557

Other operating activities and non-cash items
(1,881
)
 
3,648

Changes in assets and liabilities
(47,292
)
 
13,013

Net cash provided by operating activities
142,463

 
233,897

 
 
 
 
Cash flows from investing activities:
 
 
 
Purchases of property, plant and equipment
(232,682
)
 
(224,629
)
Proceeds from the sale of property, plant and equipment
998

 
14,643

Financing lease payment from unconsolidated affiliate
9,688

 
5,991

Other investing activities
1,533

 
(4,014
)
Net cash used in investing activities
(220,463
)
 
(208,009
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Borrowings under short-term credit facilities
30,000

 
20,000

Payments under short-term credit facilities
(20,000
)
 
(15,000
)
Proceeds from issuance of long-term debt
187,528

 
325,000

Proceeds from issuance of long-term debt, related party

 
75,000

Payments of long-term debt
(165,165
)
 
(354,693
)
Payments for debt issuance costs
(823
)
 
(5,875
)
Payments for repurchase of common stock
(35,652
)
 

Proceeds from the issuance of stock through share-based compensation plans
162

 
907

Payments of tax withholding for restricted shares
(446
)
 
(744
)
Net cash (used in) provided by financing activities
(4,396
)
 
44,595

 
 
 
 
Effect of exchange rate fluctuations on cash and cash equivalents
(1,052
)
 
(10
)
 
 
 
 
Net (decrease) increase in cash and cash equivalents
(83,448
)
 
70,473

Cash and cash equivalents, beginning of period
434,631

 
404,998

Cash and cash equivalents, end of period
$
351,183

 
$
475,471