CHANDLER, Ariz.--(BUSINESS WIRE)--Feb. 20, 2013--
Amkor Technology, Inc. (NASDAQ: AMKR) today announced that the
Arbitration Panel from the International Court of Arbitration of the
International Chamber of Commerce has issued another interim ruling in
the arbitration proceedings initiated in August 2009 relating to Amkor’s
license agreement with Tessera, Inc.
The panel previously ruled that Amkor would owe royalties under the
license agreement in respect of certain Tessera patents for Amkor
packages that meet specified technical requirements. In the latest
ruling, the panel determined that flip-chip only packages and pin grid
array only packages are not royalty bearing but that certain other
packages, principally certain wirebond and combination
flip-chip-wirebond packages, are royalty bearing. The panel has reserved
for later decision the issues of the amount of royalties and
pre-judgment interest due and the allocation of costs.
Although Amkor is still reviewing the panel’s latest ruling, Amkor
expects to record an additional charge to operating results for the
fourth quarter 2012 but believes that the final damage award will be
well below the $150 million amount publicly announced by Tessera earlier
today. Amkor previously recorded a charge of $34 million in respect of
the panel’s interim award in this arbitration, and subsequently made a
payment of approximately $20 million to Tessera in August 2012. The
ultimate amount of damages and interest is subject to further
determination by the panel based on a number of complex factors. Amkor
may record additional charges as information develops or upon the
issuance of the final award.
“Originally Tessera claimed more than $400 million in the arbitration,”
said Ken Joyce, Amkor’s president and chief executive officer. “As we
move closer to the conclusion of this arbitration, we are confident of
achieving a final resolution for far less than that amount and without a
material impact on Amkor’s liquidity.”
A cash payment in respect of the latest ruling is not anticipated before
the second quarter 2013, after the proceedings to determine the final
amount of the award are concluded. Amkor expects to use cash on hand
and/or proceeds from borrowings under its existing credit lines or other
sources to make the payment.
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 announcement 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 timing and amount of the
additional charge and cash payment in respect of the final award; the
amount of the final damages award, interest and allocation of costs; and
the effect of the panel’s ruling, including on Amkor’s liquidity. 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, that there can be no
assurance that the final damages award and interest will not be
significantly more or less than Amkor’s expectations or have a material
impact on Amkor’s liquidity; that the previously disclosed proceedings
with Tessera in United States District Court will not result in an
unfavorable outcome for Amkor, including an injunction and significant
damages award; or that there will not be any further disputes with
Tessera or others involving Amkor’s technology or business.
Other important risk factors that could affect the outcome of the events
set forth in these statements and that could affect Amkor’s operating
results and financial condition are discussed in Amkor’s Annual Report
on Form 10-K for the year ended December 31, 2011, and in its 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 announcement.
Source: Amkor Technology, Inc.
Amkor Technology, Inc.
Joanne Solomon
Executive Vice President
& Chief Financial Officer
480-786-7878
joanne.solomon@amkor.com
or
Greg
Johnson
Senior Director, Corporate Communications
480-786-7594
greg.johnson@amkor.com
