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AMKR 8-K Earnings Release 12.31.11


 

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)
February 9, 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 months and year ended December 31, 2011 and forward-looking statements relating to the first quarter of 2012 as presented in a press release dated February 9, 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 return on invested capital (“ROIC”) for the year ended December 31, 2011 and free cash flow for the three months and year ended December 31, 2011. ROIC and free cash flow 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 ROIC as net operating profit after tax divided by average invested capital (the sum of average debt plus average equity less average cash). We believe ROIC is relevant and useful information for our investors and management in evaluating whether our capital investments are generating stockholder value. 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, these measures should be considered in addition to, and not as a substitute for, or superior to other measures of financial performance prepared in accordance with U.S. GAAP and 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 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 7, 2012, the Compensation Committee of the Board of Directors approved the 2012 performance criteria for the payment of bonuses to our named executive officers under the 2007 Executive Incentive Bonus Plan (“Executive Bonus Plan”), a copy of which was previously filed with the Securities and Exchange Commission. The performance criteria are based on (i) gross margin and (ii) return on invested capital. Actual bonuses payable under the Executive Bonus Plan for 2012, if any, will depend on the extent to which our actual performance meets, exceeds or falls short of the performance criteria.

Item 8.01. Other Events.

At its recent meeting in February 2012, our Board of Directors authorized the repurchase of an additional $150 million of our common stock. The purchase of stock under this program may be made in the open market or through privately negotiated transactions. The timing, manner, price and amount of any repurchases will be determined at our discretion and will depend upon a variety of factors including economic and market conditions, price, applicable legal requirements and other factors. The stock repurchase program will be funded with available cash and may be suspended or discontinued at any time.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.
99.1
 
Text of Press Release dated February 9, 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: February 9, 2012





EXHIBIT INDEX:

Exhibit
 
Description
99.1
 
Text of Press Release dated February 9, 2012


AMKR 8-K Earnings Release Ex-99.1 12.31.11


 
News Release


Amkor Technology Reports Financial Results for the Fourth Quarter and Full Year 2011

Fourth Quarter 2011
•
Net sales $684 million
•
Gross margin 16%
•
Net income $25 million
•
Earnings per diluted share $0.11

Full Year 2011
•
Net sales $2.78 billion
•
Gross margin 18%
•
Net income $92 million
•
Earnings per diluted share $0.39

CHANDLER, Ariz. - February 9, 2012 - Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter ended December 31, 2011, with net sales of $684 million, net income of $25 million, and earnings per diluted share of $0.11. For the full year 2011, Amkor reported net sales of $2.78 billion, net income of $92 million, and earnings per diluted share of $0.39.

"During the fourth quarter we saw record quarterly sales in our wireless communications end market driven by strong demand for smartphones and tablets," said Ken Joyce, Amkor's president and chief executive officer. "We also experienced a seasonal decline in gaming and consumer electronics and some softness in demand in the networking, automotive and industrial areas."

"We achieved some notable successes in 2011," added Joyce. "We continued to build upon our industry-leading position in flip chip and other advanced packaging, and commercialized our innovative fine pitch copper pillar flip chip technology. We also delivered a sixth consecutive year of positive free cash flow, and overcame the extraordinary supply chain challenges that resulted from the tragic earthquake and tsunami in Japan."

Selected financial information for the fourth quarter 2011 is as follows:
•
Net Sales: $684 million, down 8% from $740 million in the prior quarter, and down 9% from $751 million in the fourth quarter of 2010
•
Gross Margin: 16%, compared to 17% in the prior quarter, and 21% in the fourth quarter of 2010
•
Net Income: $25 million, down from $27 million in the prior quarter, and down from $51 million in the fourth quarter of 2010
•
Earnings Per Diluted Share: $0.11, equal to the prior quarter, and down from $0.20 in the fourth quarter of 2010

Selected financial information for the full year 2011 is as follows:
•
Net Sales: $2.78 billion, down 6% from $2.94 billion in 2010
•
Gross Margin: 18%, compared to 23% in 2010
•
Net Income: $92 million, down 60% from $232 million in 2010
•
Earnings Per Diluted Share: $0.39, down 57% from $0.91 in 2010

"We continued to focus on cost reduction initiatives in the fourth quarter," said Joanne Solomon, Amkor's executive vice president and chief financial officer. "We recorded a charge of $4 million (or $0.01 per diluted share) in the quarter for restructuring costs associated with reductions in our workforce."

“Capital additions were $128 million during the fourth quarter, primarily in support of specific business for key customers in smartphones and tablets, for expansion of our facilities in China in support of NAND memory business, and for cost reduction initiatives in our factories,” said Solomon.




In August 2011, Amkor's Board of Directors authorized the repurchase of up to $150 million of our common stock. During the fourth quarter the company repurchased 17.7 million shares at a purchase price of $80 million, for a total of 28.6 million shares at a purchase price of $129 million for the full year 2011.

At its recent meeting in February 2012, the Board of Directors authorized an additional $150 million for the repurchase of our common stock. “Our stock repurchase program has been very successful to date, and we believe that the continuation of the program will serve to enhance stockholder value,” said Joyce. The purchase of stock under this program may be made in the open market or through privately negotiated transactions. The timing, manner, price and amount of any repurchases will be determined by the Company at its discretion and will depend upon a variety of factors including economic and market conditions, price, applicable legal requirements and other factors. The stock repurchase program will be funded with available cash and may be suspended or discontinued at any time.

Cash and cash equivalents were $435 million, and net debt was $912 million, at December 31, 2011.

Selected operating data for the fourth quarter and full year 2011 is included in a section before the financial statements.

Business Outlook

“Looking ahead to the first quarter 2012, we are seeing seasonal demand patterns with revenues expected to be down 3% to 10% from the fourth quarter 2011,” said Joyce. "We continue to focus on improving utilization and rationalizing our cost structure. These efforts are gaining traction and we expect that our gross margin in the first quarter will be the bottom for the year."

"As part of our continuing efforts to rationalize our cost structure, we have initiated a voluntary retirement program in Japan. While the ultimate amount of the charge for this restructuring initiative will depend on the level of employee participation, we currently anticipate incurring a charge of around $6 million in the first quarter 2012," said Solomon.

Based upon the currently available information, we have the following expectations for the first quarter 2012. These expectations do not include an estimate for the Japan restructuring charge discussed above:
•
Net sales of $615 million to $665 million, down 3% to 10% from the prior quarter
•
Gross margin of 14% to 17%
•
Net loss of $5 million to net income of $18 million, or ($0.03) to $0.09 per diluted share
•
Capital additions of around $125 million for the first quarter, and around $300 million for the full year

Conference Call Information

Amkor will conduct a conference call on February 9, 2012, at 5:00 p.m. Eastern Standard Time. 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 877-941-0843. A replay of the call will be made available at Amkor's web site or by dialing 800-406-7325 (access pass code #4510386). 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 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 made regarding: our stock repurchase program, the demand patterns in the first quarter 2012, our efforts on improving utilization and rationalizing our cost structure, our expectations regarding gross margin in the first quarter and the year, our voluntary retirement program in Japan and the related charge anticipated in the first quarter 2012, our current business outlook for the first quarter 2012,



including our expected net sales, gross margin, net income, earnings per diluted share and capital additions, and our capital additions for the full year 2012. 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;
•
the effect of the global economy on credit markets, financial institutions, customers, suppliers and consumers;
•
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;
•
customer modification of and follow through with respect to forecasts provided to us;
•
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 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;
•
the highly unpredictable nature and costs of litigation and other legal activities and the risk of adverse results of such matters;
•
worldwide economic effects of terrorist attacks, natural disasters and military conflict;
•
our ability to control costs;
•
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 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, 2010 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

 
Q4 2011
 
 
Q3 2011
 
 
Q4 2010
 
 
2011
 
 
2010
 
Sales Data (prior periods were revised for a refinement of our classifications):
Packaging services (in millions):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chip scale package
$
276

 
 
$
247

 
 
$
272

 
 
$
965

 
 
$
954

 
Leadframe
158

 
 
179

 
 
176

 
 
692

 
 
761

 
Ball grid array
128

 
 
190

 
 
186

 
 
625

 
 
747

 
Other packaging
53

 
 
52

 
 
46

 
 
211

 
 
188

 
Packaging services
615

 
 
668

 
 
680

 
 
2,493

 
 
2,650

 
Test services
69

 
 
72

 
 
71

 
 
283

 
 
289

 
Total sales
$
684

 
 
$
740

 
 
$
751

 
 
$
2,776

 
 
$
2,939

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Packaging services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chip scale package
40

%
 
33

%
 
36

%
 
35

%
 
33

%
Leadframe
23

%
 
24

%
 
24

%
 
25

%
 
26

%
Ball grid array
19

%
 
26

%
 
25

%
 
22

%
 
25

%
Other packaging
8

%
 
7

%
 
6

%
 
8

%
 
6

%
Packaging services
90

%
 
90

%
 
91

%
 
90

%
 
90

%
Test services
10

%
 
10

%
 
9

%
 
10

%
 
10

%
Total sales
100

%
 
100

%
 
100

%
 
100

%
 
100

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Packaged units (in millions):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chip scale package
445

 
 
461

 
 
590

 
 
1,826

 
 
2,130

 
Leadframe
1,287

 
 
1,511

 
 
1,579

 
 
6,041

 
 
7,466

 
Ball grid array
40

 
 
56

 
 
61

 
 
195

 
 
228

 
Other packaging
9

 
 
29

 
 
4

 
 
74

 
 
24

 
Total packaged units
1,781

 
 
2,057

 
 
2,234

 
 
8,136

 
 
9,848

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales from top ten customers
66

%
 
63

%
 
57

%
 
61

%
 
54

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capacity Utilization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Packaging
73

%
 
79

%
 
78

%
 
74

%
 
82

%
Test
74

%
 
76

%
 
74

%
 
75

%
 
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)
49

%
 
40

%
 
40

%
 
43

%
 
36

%
Consumer (gaming, television, set top boxes, portable media, digital cameras)
21

%
 
27

%
 
26

%
 
24

%
 
28

%
Computing (PCs, laptops, hard disk drive, servers, displays, printers, peripherals)
11

%
 
12

%
 
12

%
 
12

%
 
14

%
Networking (network servers, routers, switches)
11

%
 
12

%
 
13

%
 
12

%
 
13

%
Other (auto, industrial)
8

%
 
9

%
 
9

%
 
9

%
 
9

%
Total
100

%
 
100

%
 
100

%
 
100

%
 
100

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Margin Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
100

%
 
100

%
 
100

%
 
100

%
 
100

%
Cost of sales:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Materials
45

%
 
45

%
 
43

%
 
44

%
 
43

%
Labor
14

%
 
15

%
 
13

%
 
15

%
 
12

%
Other manufacturing
25

%
 
23

%
 
23

%
 
23

%
 
22

%
Gross margin
16

%
 
17

%
 
21

%
 
18

%
 
23

%



AMKOR TECHNOLOGY, INC.
Selected Operating Data

 
2011
 
 
2010
 
 
(In millions)
 
Return on Invested Capital:
 
 
 
 
 
Operating income
$
194

 
 
$
374

 
Income tax expense
(7
)
 
 
(19
)
 
Net operating profit after tax (NOPAT)
$
187

 
 
$
355

 
 
 
 
 
 
 
Invested capital:
 
 
 
 
 
Average debt
$
1,355

 
 
$
1,399

 
Plus average equity
662

 
 
507

 
Less average cash
(420
)
 
 
(400
)
 
Average invested capital
$
1,597

 
 
$
1,506

 
 
 
 
 
 
 
Return on invested capital (NOPAT / average invested capital)*
12
%
 
 
24
%
 
 
Q4 2011
 
 
Q3 2011
 
 
Q4 2010
 
 
2011
 
 
2010
 
 
(In millions, except per share data)
 
Capital Investment Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment additions
$
128

 
 
$
123

 
 
$
103

 
 
$
453

 
 
$
505

 
Net change in related accounts payable and deposits
14

 
 
(23
)
 
 
66

 
 
14

 
 
(59
)
 
Purchases of property, plant and equipment
$
142

 
 
$
100

 
 
$
169

 
 
$
467

 
 
$
446

 
Depreciation and amortization
$
87

 
 
$
83

 
 
$
87

 
 
$
336

 
 
$
324

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Free Cash Flow Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
141

 
 
$
142

 
 
$
176

 
 
$
517

 
 
$
543

 
Less purchases of property, plant and equipment
(142
)
 
 
(100
)
 
 
(169
)
 
 
(467
)
 
 
(446
)
 
Free cash flow*
$
(1
)
 
 
$
42

 
 
$
7

 
 
$
50

 
 
$
97

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per Share Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Amkor - basic
$
25

 
 
$
27

 
 
$
51

 
 
$
92

 
 
$
232

 
Adjustment for dilutive securities on net income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on 2.5% convertible notes due 2011, net of tax
—

 
 
—

 
 
—

 
 
—

 
 
1

 
Interest on 6.25% convertible notes due 2013, net of tax
—

 
 
—

 
 
2

 
 
—

 
 
7

 
Interest on 6.0% convertible notes due 2014, net of tax
4

 
 
4

 
 
4

 
 
16

 
 
16

 
Net income attributable to Amkor - diluted
$
29

 
 
$
31

 
 
$
57

 
 
$
108

 
 
$
256

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding - basic**
177

 
 
195

 
 
183

 
 
191

 
 
183

 
Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock options and unvested restricted shares
—

 
 
—

 
 
1

 
 
—

 
 
1

 
2.5% convertible notes due 2011
—

 
 
—

 
 
3

 
 
—

 
 
3

 
6.25% convertible notes due 2013
—

 
 
—

 
 
13

 
 
—

 
 
13

 
6.0% convertible notes due 2014
83

 
 
83

 
 
83

 
 
83

 
 
83

 
Weighted average shares outstanding - diluted
260

 
 
278

 
 
283

 
 
274

 
 
283

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Amkor per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.14

 
 
$
0.14

 
 
$
0.28

 
 
$
0.48

 
 
$
1.26

 
Diluted
$
0.11

 
 
$
0.11

 
 
$
0.20

 
 
$
0.39

 
 
$
0.91

 
*
We define return on invested capital ("ROIC") as net operating profit after tax divided by average invested capital (the sum of average debt plus average equity less average cash). ROIC is not defined by U.S. GAAP. However, we believe ROIC is relevant and useful information for our investors and management in evaluating whether our capital investments are generating stockholder value.
 
 
 
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. 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 additions.
 
 
 
However, these measures should be considered in addition to, and not as a substitute for, or superior to other measures of financial performance prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures reported by other companies.
 
 
**
In August 2011, our Board of Directors authorized the repurchase of up to $150.0 million of our common stock. During the fourth quarter we repurchased 17.7 million shares for a purchase price of $80.2 million. From January 1, 2012, through February 9, 2012, we repurchased an additional 1.0 million shares for a purchase price of $4.5 million, for a cumulative total of 29.5 million shares for a purchase price of $133.4 million.



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

 
For the Three Months
Ended December 31,
 
For the Year
Ended December 31,
 
 
 
2011
 
2010
 
2011
 
2010
 
(In thousands, except per share data)
Net sales
$
683,769

 
$
750,609

 
$
2,776,359

 
$
2,939,483

Cost of sales
571,942

 
591,266

 
2,285,790

 
2,275,727

Gross profit
111,827

 
159,343

 
490,569

 
663,756

Operating expenses:
 
 
 
 
 
 
 
Selling, general and administrative
55,660

 
62,037

 
246,513

 
242,424

Research and development
12,465

 
11,097

 
50,386

 
47,534

Total operating expenses
68,125

 
73,134

 
296,899

 
289,958

Operating income
43,702

 
86,209

 
193,670

 
373,798

Other expense (income):
 
 
 
 
 
 
 
Interest expense
18,220

 
19,202

 
74,212

 
85,595

Interest expense, related party
3,492

 
3,813

 
12,394

 
15,250

Interest income
(961
)
 
(675
)
 
(2,749
)
 
(2,950
)
Foreign currency loss
520

 
4,746

 
2,178

 
13,756

Loss on debt retirement, net
—

 
—

 
15,531

 
18,042

Equity in earnings of unconsolidated affiliate
(444
)
 
(1,552
)
 
(7,085
)
 
(6,435
)
Other income, net
(335
)
 
(144
)
 
(1,030
)
 
(619
)
Total other expense, net
20,492

 
25,390

 
93,451

 
122,639

Income before income taxes
23,210

 
60,819

 
100,219

 
251,159

Income tax (benefit) expense
(2,351
)
 
10,058

 
7,124

 
19,012

Net income
25,561

 
50,761

 
93,095

 
232,147

Net income attributable to noncontrolling interests
(711
)
 
(157
)
 
(1,287
)
 
(176
)
Net income attributable to Amkor
$
24,850

 
$
50,604

 
$
91,808

 
$
231,971

 
 
 
 
 
 
 
 
Net income attributable to Amkor per common share:
 
 
 
 
 
 
 
Basic
$
0.14

 
$
0.28

 
$
0.48

 
$
1.26

Diluted
$
0.11

 
$
0.20

 
$
0.39

 
$
0.91

 
 
 
 
 
 
 
 
Shares used in computing per common share amounts:
 
 
 
 
 
 
 
Basic
176,941

 
183,404

 
190,829

 
183,312

Diluted
259,633

 
282,830

 
273,686

 
282,602




AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

 
December 31,
 
2011
 
2010
 
(In thousands, except per share data)
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
434,631

 
$
404,998

Restricted cash
2,680

 
17,782

Accounts receivable:
 
 
 
Trade, net of allowances
298,543

 
392,327

Other
27,197

 
17,970

Inventories
198,427

 
191,072

Other current assets
35,352

 
37,918

Total current assets
996,830

 
1,062,067

 
 
 
 
Property, plant and equipment, net
1,656,214

 
1,537,226

Intangibles, net
8,382

 
13,524

Investments
36,707

 
28,215

Restricted cash
4,001

 
1,945

Other assets
70,913

 
93,845

Total assets
$
2,773,047

 
$
2,736,822

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Short-term borrowings and current portion of long-term debt
$
59,395

 
$
150,081

Trade accounts payable
424,504

 
443,333

Accrued expenses
158,287

 
178,794

Total current liabilities
642,186

 
772,208

 
 
 
 
Long-term debt
1,062,256

 
964,219

Long-term debt, related party
225,000

 
250,000

Pension and severance obligations
129,096

 
103,543

Other non-current liabilities
13,288

 
10,171

Total liabilities
2,071,826

 
2,100,141

 
 
 
 
Equity:
 
 
 
Amkor stockholders' equity:
 
 
 
Preferred stock
—

 
—

Common stock
197

 
183

Additional paid-in capital
1,611,242

 
1,504,927

Accumulated deficit
(798,462
)
 
(890,270
)
Accumulated other comprehensive income
10,849

 
15,457

Treasury stock
(130,560
)
 
(284
)
Total Amkor stockholders' equity
693,266

 
630,013

Noncontrolling interests in subsidiaries
7,955

 
6,668

Total equity
701,221

 
636,681

Total liabilities and equity
$
2,773,047

 
$
2,736,822



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

 
For the Year Ended
December 31,
 
 
2011
 
2010
 
(In thousands)
Cash flows from operating activities:
 
 
 
Net income
$
93,095

 
$
232,147

Depreciation and amortization
335,644

 
323,608

Loss on debt retirement, net
10,557

 
10,562

Other operating activities and non-cash items
1,176

 
11,522

Changes in assets and liabilities
76,360

 
(35,244
)
Net cash provided by operating activities
516,832

 
542,595

 
 
 
 
Cash flows from investing activities:
 
 
 
Purchases of property, plant and equipment
(466,694
)
 
(445,669
)
Proceeds from the sale of property, plant and equipment
15,823

 
3,125

Financing lease payment from unconsolidated affiliate
10,794

 
13,384

Other investing activities
9,543

 
(15,761
)
Net cash used in investing activities
(430,534
)
 
(444,921
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Borrowings under revolving credit facilities
6,567

 
3,261

Payments under revolving credit facilities
(6,567
)
 
(34,253
)
Borrowings under short-term credit facilities
20,000

 
15,000

Payments under short-term credit facilities
(15,000
)
 
(15,000
)
Proceeds from issuance of long-term debt
387,512

 
611,007

Proceeds from issuance of long-term debt, related party
75,000

 
—

Payments of long-term debt, net of redemption premiums and discounts
(392,191
)
 
(663,433
)
Payments for debt issuance costs
(5,875
)
 
(7,487
)
Payments for repurchase of common stock
(128,368
)
 
—

Proceeds from the issuance of stock through share-based compensation plans
821

 
1,048

Payments of tax withholding for restricted shares
(776
)
 
—

Net cash used in financing activities
(58,877
)
 
(89,857
)
 
 
 
 
Effect of exchange rate fluctuations on cash and cash equivalents
2,212

 
1,775

 
 
 
 
Net increase in cash and cash equivalents
29,633

 
9,592

Cash and cash equivalents, beginning of period
404,998

 
395,406

Cash and cash equivalents, end of period
$
434,631

 
$
404,998