Washington, DC 20549

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 28, 2019
(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.)

TEMPE, AZ 85284
(Address of principal executive offices, including zip code)

(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:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.001 par valueAMKRThe NASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

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 nine months ended September 30, 2019, and forward-looking statements relating to the fourth quarter and full year 2019 as presented in a press release dated October 28, 2019. 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.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.
Exhibit  Description
104  Cover Page Interactive Data File (embedded within the Inline XBRL document)


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.
By:/s/ Megan Faust
Megan Faust
Corporate Vice President and Chief Financial Officer
Date: October 28, 2019

News Release

Amkor Technology Reports Financial Results for the Third Quarter 2019

Third Quarter Highlights
Third quarter net sales $1,084 million, up 21% sequentially
Operating income $79 million
Net income $54 million, earnings per diluted share $0.23
EBITDA $209 million

TEMPE, Ariz. - October 28, 2019 - Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the third quarter ended September 30, 2019.

"Sequential revenue growth of 21% drove financial results above the high end of guidance," said Steve Kelley, Amkor's president and chief executive officer. "Demand was particularly strong for our advanced packaging technologies."

ResultsQ3 2019Q2 2019Q3 2018
($ in millions, except per share data) 
Net sales$1,084  $895  $1,144  
Gross margin16.8%  13.8%  17.5%  
Operating income$79  $23  $93  
Net income attributable to Amkor (1)$54  ($9) $57  
Earnings per diluted share (1)$0.23  ($0.04) $0.24  
$209  $149  $235  

(1) Q2 2019 net income includes an $8 million charge, or $0.03 per share, related to the early redemption of $525 million of senior notes due 2022.

(2) EBITDA is a non-U.S. GAAP measure. The reconciliation to the comparable U.S. GAAP measure is included below under "Selected Operating Data."

"Operating margin, earnings per share and EBITDA all showed meaningful sequential improvement in the third quarter," said Megan Faust, Amkor's corporate vice president and chief financial officer. "Based on our solid business outlook for the fourth quarter, we expect to deliver a fifth consecutive year of positive free cash flow."

At September 30, 2019, cash and cash equivalents were $600 million, and total debt was $1.3 billion.

Business Outlook

"We expect revenue of about $1.1 billion in the fourth quarter, reflecting continued healthy demand for Amkor's advanced packages," said Kelley.

Fourth quarter 2019 outlook:

Net sales of $1.05 billion to $1.14 billion
Gross margin of 15% to 18%
Net income of $26 million to $78 million, or $0.11 to $0.32 per diluted share
Full year 2019 capital expenditures of approximately $475 million

Conference Call Information

Amkor will conduct a conference call on Monday, October 28, 2019, at 5:00 p.m. Eastern 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 website: You may also access the call by dialing 1-877-645-6380 or 1-404-991-3911. A replay of the call will be made available at Amkor's website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID 4599721). The webcast is also being distributed over NASDAQ OMX's investor distribution network to both institutional and individual investors. Institutional investors can access the call via NASDAQ OMX's password-protected event management site, Street Events (

About Amkor Technology, Inc.

Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test and is now a strategic manufacturing partner for more than 300 of the world's leading semiconductor companies, foundries and electronics OEMs. Amkor's operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information, visit


Vincent Keenan
Vice President, Investor Relations

Selected Operating Data
Q3 2019Q2 2019Q3 2018
Net Sales Data:   
Net sales (in millions):   
Advanced products (1)$589  $433  $582  
Mainstream products (2)495  462  562  
Total net sales$1,084  $895  $1,144  
Packaging services84 %83 %84 %
Test services16 %17 %16 %
Net sales from top ten customers62 %62 %62 %
End Market Data:
Communications (handheld devices, smartphones, tablets)41 %37 %47 %
Automotive, industrial and other (driver assist, infotainment, performance, safety)26 %29 %25 %
Computing (datacenter, infrastructure, PC/laptop, storage)15 %19 %17 %
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)18 %15 %11 %
Total100 %100 %100 %
Gross Margin Data:
Net sales100.0 %100.0 %100.0 %
Cost of sales:
Materials40.4 %38.0 %40.3 %
Labor15.8 %17.4 %15.1 %
Other manufacturing27.0 %30.8 %27.1 %
Gross margin16.8 %13.8 %17.5 %

(1) Advanced products include flip chip and wafer-level processing and related test services
(2) Mainstream products include wirebond packaging and related test services

Selected Operating Data
In this press release, we provide EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, our ability to service debt and our ability to fund capital expenditures. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.
Non-GAAP Financial Measure Reconciliation:
Q3 2019Q2 2019Q3 2018
(in millions) 
Net income $54  $(9) $57  
Plus: Interest expense17  19  20  
Plus: Income tax expense  14  
Plus: Depreciation & amortization129  133  144  
EBITDA$209  $149  $235  

For the Three Months Ended September 30,For the Nine Months Ended September 30,
(In thousands, except per share data)
Net sales$1,083,917  $1,144,192  $2,874,186  $3,235,195  
Cost of sales901,677  943,485  2,447,731  2,707,000  
Gross profit182,240  200,707  426,455  528,195  
Selling, general and administrative70,458  70,463  206,803  225,886  
Research and development32,927  37,541  104,867  119,546  
Total operating expenses103,385  108,004  311,670  345,432  
Operating income78,855  92,703  114,785  182,763  
Interest expense16,988  19,770  54,914  60,908  
Other (income) expense, net(1,760) 1,315  641  (6,254) 
Total other expense, net15,228  21,085  55,555  54,654  
Income before taxes63,627  71,618  59,230  128,109  
Income tax expense9,141  14,326  36,418  27,438  
Net income54,486  57,292  22,812  100,671  
Net income attributable to non-controlling interests(416) (630) (1,071) (1,874) 
Net income attributable to Amkor$54,070  $56,662  $21,741  $98,797  
Net income attributable to Amkor per common share:
Basic$0.23  $0.24  $0.09  $0.41  
Diluted$0.23  $0.24  $0.09  $0.41  
Shares used in computing per common share amounts:
Basic239,586  239,370  239,503  239,312  
Diluted239,937  239,766  239,858  239,783  


September 30, 2019December 31, 2018
(In thousands)
Current assets:
Cash and cash equivalents$598,753  $681,569  
Restricted cash2,590  2,589  
Accounts receivable, net of allowances803,104  724,456  
Inventories216,663  230,589  
Other current assets41,891  32,005  
Total current assets1,663,001  1,671,208  
Property, plant and equipment, net2,466,067  2,650,448  
Operating lease right of use asset *141,467  —  
Goodwill26,104  25,720  
Restricted cash2,874  3,893  
Other assets106,417  144,178  
Total assets$4,405,930  $4,495,447  
Current liabilities:
Short-term borrowings and current portion of long-term debt$102,952  $114,579  
Trade accounts payable477,900  530,398  
Capital expenditures payable157,527  255,237  
Accrued expenses253,876  258,209  
Total current liabilities992,255  1,158,423  
Long-term debt1,195,005  1,217,732  
Pension and severance obligations178,530  184,321  
Long-term operating lease liability *85,094  —  
Other non-current liabilities67,426  79,071  
Total liabilities2,518,310  2,639,547  
Stockholders’ equity:
Preferred stock—  —  
Common stock286  285  
Additional paid-in capital1,915,481  1,909,425  
Retained earnings134,930  113,189  
Accumulated other comprehensive income (loss)27,243  23,812  
Treasury stock(216,301) (216,171) 
Total Amkor stockholders’ equity1,861,639  1,830,540  
Non-controlling interests in subsidiaries25,981  25,360  
Total equity1,887,620  1,855,900  
Total liabilities and equity$4,405,930  $4,495,447  
*Effective January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Upon adoption, we recorded a right-of-use asset and lease liability on our balance sheet. Prior period financial statements were not required to be adjusted for the effects of this new standard.

For the Nine Months Ended September 30,
(In thousands)
Cash flows from operating activities:
Net income$22,812  $100,671  
Depreciation and amortization398,013  429,181  
Other operating activities and non-cash items51,533  (2,006) 
Changes in assets and liabilities(189,026) (100,628) 
Net cash provided by operating activities283,332  427,218  
Cash flows from investing activities:
Payments for property, plant and equipment(328,497) (478,036) 
Proceeds from sale of property, plant and equipment8,495  1,606  
Proceeds from insurance recovery for property, plant and equipment1,538  —  
Other investing activities(353) 3,160  
Net cash used in investing activities(318,817) (473,270) 
Cash flows from financing activities:
Proceeds from revolving credit facilities172,700  —  
Payments of revolving credit facilities(92,700) (75,000) 
Proceeds from short-term debt51,434  23,341  
Payments of short-term debt(42,067) (35,125) 
Proceeds from issuance of long-term debt714,375  372,226  
Payments of long-term debt(847,155) (279,697) 
Payments of finance lease obligations(4,358) (2,669) 
Other financing activities(1,963) (2,482) 
Net cash provided by (used in) financing activities(49,734) 594  
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash1,385  (3,273) 
Net decrease in cash, cash equivalents and restricted cash(83,834) (48,731) 
Cash, cash equivalents and restricted cash, beginning of period688,051  602,851  
Cash, cash equivalents and restricted cash, end of period$604,217  $554,120  

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 including statements regarding our fourth quarter outlook, delivery of free cash flow, and 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, cyclicality, and rate of growth of the semiconductor industry;
timing and volume of orders relative to production capacity and the inability to achieve high capacity utilization rates, control costs and improve profitability;
laws, rules, regulations and policies imposed by the U.S. or foreign governments in areas such as tariffs, customs, duties and other restrictive trade barriers, national security, data privacy and cybersecurity, antitrust and competition, tax, currency and banking, privacy, labor, environmental, health and safety, and in particular the recent increase in protectionist measures considered or adopted by the U.S. and foreign governments;
laws, rules, regulations and policies within China and other countries that may favor domestic companies over non-domestic companies, including customer or government supported efforts to promote the development and growth of local competitors;
volatility of consumer demand, double booking by customers and deterioration in forecasts from our customers for products incorporating our semiconductor packages, including any slowdown in demand or changes in customer forecasts for smartphones or other mobile devices or for electronic devices;
delays, lower manufacturing yields and supply constraints relating to wafers, particularly for advanced nodes and related technologies;
dependence on key customers, the impact of changes in our market share and prices for our services with those customers and the business and financial condition of those customers;
the performance of our business, interest rate fluctuations and other 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 effect of the global economy on credit markets, financial institutions, customers, suppliers and consumers, including the uncertain macroeconomic environment;
the highly unpredictable nature and costs of litigation and other legal activities and the risk of adverse results of such matters and the impact of other legal proceedings;
changes in tax rates and taxes as a result of changes in U.S. or foreign tax law or the interpretations thereof (including the impact of U.S. tax reform), changes in our organizational structure, changes in the jurisdictions in which our income is determined to be earned and taxed, the outcome of tax reviews, audits and 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 debt covenants, including the potential impact of the phase-out of LIBOR on our variable interest rate debt;
failure to realize sufficient cash flow or access to other sources of liquidity to fund capital expenditures;
the effects of an economic slowdown in major economies worldwide;

disruptions in our business or deficiencies in our controls resulting from the integration of acquired operations, particularly J-Devices, or the implementation and security of, and changes to, our enterprise resource planning, factory shop floor systems and other management information systems;
there can be no assurance regarding when our K5 factory and research and development center in Korea will be fully utilized, or that the actual scope, costs, timeline or benefits of the project will be consistent with our expectations;
economic effects of terrorist attacks, political instability, natural disasters and military conflict;
competition, competitive pricing and declines in average selling prices;
fluctuations in packaging and test manufacturing yields;
dependence on international operations and sales and fluctuations in foreign currency exchange rates, particularly in Japan and Korea;
dependence on raw material and equipment suppliers and changes in raw material and precious metal costs;
dependence on key personnel;
enforcement of and compliance with intellectual property rights; 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, 2018 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 except as may be required by law.