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 12, 2009
 
AMKOR TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
 	 	 	 	 	
DELAWARE	 	000-29472	 	23-1722724	
 	 	 	 	 	
(State or Other Jurisdiction of	 	(Commission File Number)	 	(IRS Employer	
Incorporation)	 	 	 	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 twelve months ended December 31, 2008 and forward-looking statements relating to the first quarter of 2009 as presented in a press release dated February 12, 2009. 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 for the three and twelve months ended December 31, 2008. Free cash flow (which we define as net cash provided by operating activities less purchases of property, plant and equipment) is considered a non-GAAP financial measure. 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 generally accepted accounting principles. We believe free cash flow to be relevant and useful information to our investors in assessing our financial operating results as this measure is used by our management in evaluating our liquidity, our ability to service debt and fund capital expenditures. However, this measure should be considered in addition to, and not as a substitute for, or superior to, cash flows or other measures of financial performance prepared in accordance with generally accepted accounting principles, 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 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 February 12, 2009, 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 	 	
 	 	Corporate Vice President and Chief Financial Officer 	 	
 	
Date: February 12, 2009

 
EXHIBIT INDEX:
 	 	 	
Exhibit	 	Description	
99.1	 	Text of Press Release dated February 12, 2009	

Exhibit 99.1

News Release
Amkor Reports Fourth Quarter and Full Year 2008 Results
Chandler, AZ (February 12, 2009) — Amkor Technology, Inc., (NASDAQ: AMKR) today reported financial results for the fourth quarter and full year ended December 31, 2008.
Fourth quarter net sales of $549 million were down 24% sequentially from the third quarter and declined 27% from the fourth quarter of 2007. The fourth quarter net loss, which included a goodwill impairment charge, was $623 million, or $3.40 loss per share, compared to $0.15 income per diluted share in the prior quarter and $0.46 income per diluted share in the fourth quarter of 2007.
For the full year 2008, net sales were $2.7 billion and the company had a net loss of $457 million or $2.50 loss per share. For the full year 2007, net sales were $2.7 billion and net income was $220 million, or $1.11 per diluted share.
The net loss for the fourth quarter and full year 2008 included a $671 million goodwill impairment charge, or $3.67 per share, to write off the entire carrying value of the company’s goodwill. This non-cash charge does not affect the company’s liquidity or cash flows from operating activities. Fourth quarter results also included a $36 million gain on extinguishment of debt and a $17 million net foreign currency gain primarily attributable to the depreciation of the Korean won and the resulting revaluation of the company’s Korean employee benefit plan liability.
Commenting on fourth quarter performance, James Kim, chairman and chief executive officer, said, “Difficult business conditions continue to challenge our industry, our customers and our company. Since early 2008 we have been proactively managing our cost structure while continuing to deliver high quality services, and our fourth quarter operating results reflect labor and other cost savings of approximately $18 million from previously implemented cost reduction programs.”
“In view of the continued downturn in global consumer demand, we implemented further cost reduction measures in the first quarter of 2009 that include lowering executive and other employee compensation, additional reductions in employee and contractor headcount, and shortened work weeks. Our cost reduction initiatives and lower volume are expected to reduce our costs by an additional $22 million in the first quarter,” Mr. Kim said.
“Fourth quarter gross margin of 18% was unchanged from the prior quarter,” said Joanne Solomon, chief financial officer. “Gross margin benefited by an estimated $20 million from the strengthening of the U.S. dollar against foreign currencies and a reduction in labor and other costs of $16 million. These benefits were partially offset by the accrual of an additional $12 million for unpaid royalties relating to the final award in the Tessera arbitration issued by the ICC in January 2009.”

 
Unit shipments in the fourth quarter declined 30% from the prior quarter while sales declined 24% in the same period, reflecting a shift in our mix from traditional leadframe packages to more advanced packages.
Interest expense for the period was $28 million or flat sequentially, after excluding $4 million of interest accrued in the prior quarter for the Tessera arbitration, and was down $2 million from the fourth quarter of 2007. In the fourth quarter of 2008, the company recorded a $36 million gain from the repurchase of $118 million aggregate principal amount of debt due in 2011. To date in 2009, the company repurchased an additional $33 million principal amount of debt due in 2011 and expects to record a related $9 million gain in the first quarter. The aggregate repurchase of $151 million of debt is expected to reduce net interest expense by approximately $12 million through maturity. The company may from time to time continue to purchase its outstanding notes for cash.
“Capital additions were $32 million for the fourth quarter and $342 million for the full year 2008. Capital additions in the fourth quarter were lower than planned due in part to the deferment of purchases into the first quarter of 2009. After taking into account the deferrals from the fourth quarter, we expect our capital additions for the first quarter of 2009 to be approximately $40 million. Because of the significantly reduced level of customer demand we are estimating total capital additions for the full year 2009 of approximately $100 million,” said Solomon.
“While the near term outlook for the semiconductor industry has continued to weaken, our financial position and liquidity remain sound,” added Solomon. “We generated $80 million in free cash flow in the fourth quarter and ended the year with a cash balance of $424 million and total debt of just under $1.5 billion. However, we do not expect to be free cash flow positive in the first quarter of 2009 primarily as a result of $64 million in payments to Tessera and certain employee benefit and separation payments. Other than annual amortizing debt of approximately $55 million, we have no significant debt due until 2011 when the remaining $289 million of our 2.5% convertible and 7.125% senior notes become due.”
Selected operating data for the fourth quarter and full year 2008 is included in a section before the financial tables.

 
Business Outlook:
Increasing volatility in customer forecasts and limited visibility due to uncertainties in the U.S. and global economies have increased the risk that our actual results may differ from our expectations. Based upon the latest available information, we have the following expectations for the first quarter of 2009:
 	•	 	Sales — down 30% to 38% from the fourth quarter of 2008	
 	 	 	 	
 	•	 	Gross Margin — between 5% and negative 2%	
 	 	 	 	
 	•	 	Net Loss — in the range of $0.34 to $0.49 per share.	
The outlook for gross margin and net loss includes the impact of anticipated charges in the first quarter of 2009 related to employee workforce reductions. The charges to cost of sales for these reductions are expected to be approximately $6 million. Our guidance for first quarter net loss also includes an estimated $9 million gain from debt repurchases to date and the related interest savings.
Conference Call Information
Amkor will conduct a conference call on February 12, 2009 at 5:00 p.m. eastern time. This call is being webcast by Thomson Financial and can be accessed at Amkor’s web site at www.amkor.com. You may also access the call by dialing 303-228-2960. A replay of the call will be made available at Amkor’s web site or by dialing 303-590-3000 (access passcode #11124867).
The webcast is also being distributed over Thomson Financial’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Financial individual investor center at www.companyboardroom.com or by visiting any of the investor sites in Thomson Financial’s Individual Investor Network. Institutional investors can access the call via Thomson Financial’s password-protected event management site, StreetEvents (www.streetevents.com).
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: expectations regarding further weakening in demand; expectations regarding reduced costs in the first quarter of 2009; expected gains and reduced interest expense associated with debt repurchases; our anticipated level of debt repayment; the expected dollar amount of our capital additions; our statements regarding the outlook for the semiconductor industry and our financial position and liquidity; and the statements made under Business Outlook including those regarding sales, gross margin and net loss per share. 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; deteriorating market conditions; the effect of the financial crisis on credit markets, financial institutions, customers, suppliers and consumers; 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 additions; the effects of a recession in the U.S. and other economies worldwide; the highly unpredictable nature and costs of litigation and other legal activities and the risk of adverse results of such matters; the outcome of the pending SEC investigation; worldwide economic effects of terrorist attacks, natural disasters and military conflict; our ability to reduce costs; 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.
Company Contact:
Joanne Solomon
Corporate Vice President & CFO
480-821-5000 ext. 5416
jsolo@amkor.com

 
AMKOR TECHNOLOGY, INC.
Selected Operating Data
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Q4 2008	 	Q3 2008	 	Q4 2007	 	2008	 	2007	
Sales Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Packaging services:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Wirebond — leadframe	 	 	27	%	 	 	29	%	 	 	31	%	 	 	28	%	 	 	33	%	
Wirebond — laminate	 	 	41	%	 	 	40	%	 	 	40	%	 	 	40	%	 	 	39	%	
Flip chip and wafer level processing	 	 	20	%	 	 	20	%	 	 	18	%	 	 	20	%	 	 	17	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Packaging services	 	 	88	%	 	 	89	%	 	 	89	%	 	 	88	%	 	 	89	%	
Test services	 	 	12	%	 	 	11	%	 	 	11	%	 	 	12	%	 	 	11	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total sales	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	

Packaged units (in millions):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Wirebond — leadframe	 	 	1,308	 	 	 	1,957	 	 	 	1,785	 	 	 	6,593	 	 	 	6,805	 	
Wirebond — laminate	 	 	310	 	 	 	390	 	 	 	395	 	 	 	1,376	 	 	 	1,350	 	
Flip chip and wafer level processing	 	 	131	 	 	 	157	 	 	 	154	 	 	 	597	 	 	 	415	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total packaged units	 	 	1,749	 	 	 	2,504	 	 	 	2,334	 	 	 	8,566	 	 	 	8,570	 	

Net sales from top ten customers	 	 	52	%	 	 	49	%	 	 	49	%	 	 	50	%	 	 	47	%	
Capacity utilization	 	 	61	%	 	 	86	%	 	 	86	%	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
End Market Distribution Data (an approximation based on a sampling of our largest customers):	 	 	 	 	 	 	
Communications	 	 	43	%	 	 	42	%	 	 	40	%	 	 	 	 	 	 	 	 	
Consumer	 	 	33	%	 	 	33	%	 	 	34	%	 	 	 	 	 	 	 	 	
Computing	 	 	16	%	 	 	15	%	 	 	17	%	 	 	 	 	 	 	 	 	
Other	 	 	8	%	 	 	10	%	 	 	9	%	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	100	%	 	 	100	%	 	 	100	%	 	 	 	 	 	 	 	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Q4 2008	 	 	Q3 2008	 	 	Q4 2007	 	 	2008	 	 	2007	 	
 	 	(in millions, except per share data)	 	
Earnings per Share Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income — basic	 	$	(623	)	 	$	29	 	 	$	94	 	 	$	(457	)	 	$	220	 	
Adjustment for dilutive securities on net income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest on 2.5% convertible notes due 2011, net of tax	 	 	—	 	 	 	1	 	 	 	1	 	 	 	—	 	 	 	5	 	
Interest on 6.25% convertible notes due 2013, net of tax	 	 	—	 	 	 	2	 	 	 	2	 	 	 	—	 	 	 	6	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income — diluted	 	$	(623	)	 	$	32	 	 	$	97	 	 	$	(457	)	 	$	231	 	

Weighted average shares outstanding — basic	 	 	183	 	 	 	183	 	 	 	182	 	 	 	183	 	 	 	181	 	
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	 	 	183	 	 	 	210	 	 	 	209	 	 	 	183	 	 	 	209	 	

Net (loss) income per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	$	(3.40	)	 	$	0.16	 	 	$	0.52	 	 	$	(2.50	)	 	$	1.22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	 	$	(3.40	)	 	$	0.15	 	 	$	0.46	 	 	$	(2.50	)	 	$	1.11	 	

 
AMKOR TECHNOLOGY, INC.
Selected Operating Data (continued)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Q4 2008	 	 	Q3 2008	 	 	Q4 2007	 	 	2008	 	 	2007	 	
 	 	(in millions)	
Capital Investment Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant and equipment additions	 	$	32	 	 	$	92	 	 	$	101	 	 	$	342	 	 	$	294	 	
Net change in related accounts payable and deposits	 	 	37	 	 	 	34	 	 	 	(25	)	 	 	44	 	 	 	(58	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment	 	$	69	 	 	$	126	 	 	$	76	 	 	$	386	 	 	$	236	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	$	80	 	 	$	79	 	 	$	72	 	 	$	310	 	 	$	283	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free Cash Flow Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	$	149	 	 	$	173	 	 	$	189	 	 	$	606	 	 	$	603	 	
Less purchases of property, plant and equipment	 	 	(69	)	 	 	(126	)	 	 	(76	)	 	 	(386	)	 	 	(236	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow*	 	$	80	 	 	$	47	 	 	$	113	 	 	$	220	 	 	$	367	 	

 	 	 	
*	 	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 generally accepted accounting principles. 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, this measure should be considered in addition to, and not as a substitute for, or superior to, cash flows or other measures of financial performance prepared in accordance with generally accepted accounting principles, and our definition of free cash flow may not be comparable to similarly titled measures reported by other companies.	

 
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	For the Three Months Ended	 	 	For the Twelve Months Ended	 	
 	 	December 31,	 	 	December 31,	 	
 	 	2008	 	 	2007	 	 	2008	 	 	2007	 	
 	 	(In thousands, except per share data)	 	
Net sales	 	$	548,712	 	 	$	746,888	 	 	$	2,658,602	 	 	$	2,739,445	 	
Cost of sales	 	 	451,088	 	 	 	543,976	 	 	 	2,096,864	 	 	 	2,057,572	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	97,624	 	 	 	202,912	 	 	 	561,738	 	 	 	681,873	 	

Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selling, general and administrative	 	 	58,399	 	 	 	62,142	 	 	 	251,756	 	 	 	254,365	 	
Research and development	 	 	13,192	 	 	 	10,720	 	 	 	56,227	 	 	 	41,650	 	
Goodwill impairment	 	 	671,117	 	 	 	—	 	 	 	671,117	 	 	 	—	 	
Gain on sale of real estate and specialty test operations	 	 	—	 	 	 	—	 	 	 	(9,856	)	 	 	(4,833	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	742,708	 	 	 	72,862	 	 	 	969,244	 	 	 	291,182	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating (loss) income	 	 	(645,084	)	 	 	130,050	 	 	 	(407,506	)	 	 	390,691	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Other (income) expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense, net	 	 	26,114	 	 	 	28,489	 	 	 	109,980	 	 	 	124,099	 	
Interest expense, related party	 	 	1,563	 	 	 	1,562	 	 	 	6,250	 	 	 	6,250	 	
Foreign currency (gain) loss	 	 	(16,957	)	 	 	1,015	 	 	 	(61,057	)	 	 	8,961	 	
(Gain) loss on debt retirement, net	 	 	(35,987	)	 	 	1	 	 	 	(35,987	)	 	 	15,876	 	
Other (income) expense, net	 	 	(49	)	 	 	1,632	 	 	 	(1,004	)	 	 	668	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other (income) expense	 	 	(25,316	)	 	 	32,699	 	 	 	18,182	 	 	 	155,854	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
(Loss) income before income taxes and minority interests	 	 	(619,768	)	 	 	97,351	 	 	 	(425,688	)	 	 	234,837	 	
Income tax expense	 	 	5,237	 	 	 	3,024	 	 	 	31,788	 	 	 	12,597	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
(Loss) income before minority interests	 	 	(625,005	)	 	 	94,327	 	 	 	(457,476	)	 	 	222,240	 	
Minority interests, net of tax	 	 	1,927	 	 	 	(663	)	 	 	781	 	 	 	(2,376	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(623,078	)	 	$	93,664	 	 	$	(456,695	)	 	$	219,864	 	

Net (loss) income per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	$	(3.40	)	 	$	0.52	 	 	$	(2.50	)	 	$	1.22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	 	$	(3.40	)	 	$	0.46	 	 	$	(2.50	)	 	$	1.11	 	

Shares used in computing net (loss) income per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	183,035	 	 	 	181,775	 	 	 	182,734	 	 	 	180,597	 	
Diluted	 	 	183,035	 	 	 	209,083	 	 	 	182,734	 	 	 	208,767	 	

 
AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	 	December 31,	 	
 	 	2008	 	 	2007	 	
 	 	(In thousands)	 	
ASSETS	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	424,316	 	 	$	410,070	 	
Restricted cash	 	 	4,880	 	 	 	2,609	 	
Accounts receivable:	 	 	 	 	 	 	 	 	
Trade, net of allowances	 	 	259,630	 	 	 	393,493	 	
Other	 	 	14,183	 	 	 	4,938	 	
Inventories	 	 	134,045	 	 	 	149,014	 	
Other current assets	 	 	23,862	 	 	 	27,290	 	
 	 	 	 	 	 	 	
Total current assets	 	 	860,916	 	 	 	987,414	 	
 	 	 	 	 	 	 	 	 	
Property, plant and equipment, net	 	 	1,473,763	 	 	 	1,455,111	 	
Goodwill	 	 	—	 	 	 	673,385	 	
Intangibles, net	 	 	11,546	 	 	 	20,321	 	
Investments	 	 	—	 	 	 	3,019	 	
Restricted cash	 	 	1,696	 	 	 	1,725	 	
Other assets	 	 	36,072	 	 	 	51,631	 	
 	 	 	 	 	 	 	
Total assets	 	$	2,383,993	 	 	$	3,192,606	 	

LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	54,609	 	 	$	152,489	 	
Trade accounts payable	 	 	241,684	 	 	 	359,313	 	
Accrued expenses	 	 	258,449	 	 	 	165,271	 	
 	 	 	 	 	 	 	
Total current liabilities	 	 	554,742	 	 	 	677,073	 	
 	 	 	 	 	 	 	 	 	
Long-term debt	 	 	1,338,751	 	 	 	1,511,570	 	
Long-term debt, related party	 	 	100,000	 	 	 	100,000	 	
Pension and severance obligations	 	 	116,789	 	 	 	208,387	 	
Other non-current liabilities	 	 	30,548	 	 	 	33,935	 	
 	 	 	 	 	 	 	
Total liabilities	 	 	2,140,830	 	 	 	2,530,965	 	

Minority interests	 	 	6,024	 	 	 	7,022	 	

Stockholders’ equity:	 	 	 	 	 	 	 	 	
Preferred stock	 	 	—	 	 	 	—	 	
Common stock, $0.001 par value, 500,000 shares authorized, issued and outstanding of 183,035 in 2008 and 181,799 in 2007	 	 	183	 	 	 	182	 	
Additional paid-in capital	 	 	1,496,976	 	 	 	1,482,186	 	
Accumulated deficit	 	 	(1,278,221	)	 	 	(821,526	)	
Accumulated other comprehensive income (loss)	 	 	18,201	 	 	 	(6,223	)	
 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	237,139	 	 	 	654,619	 	
 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	 	$	2,383,993	 	 	$	3,192,606	 	

 
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 	 	 	 	 	 	 	 	 	
 	 	For the Twelve Months Ended	 	
 	 	December 31,	 	
 	 	2008	 	 	2007	 	
 	 	(In thousands)	 	
Cash flows from operating activities:	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(456,695	)	 	$	219,864	 	
Goodwill impairment	 	 	671,117	 	 	 	—	 	
Depreciation and amortization	 	 	309,920	 	 	 	283,267	 	
(Gain) loss on debt retirement, net	 	 	(35,987	)	 	 	6,876	 	
Other operating activities and non-cash items	 	 	21,730	 	 	 	9,055	 	
Changes in assets and liabilities	 	 	95,733	 	 	 	84,368	 	
 	 	 	 	 	 	 	
Net cash provided by operating activities	 	 	605,818	 	 	 	603,430	 	

Cash flows from investing activities:	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment	 	 	(386,239	)	 	 	(236,240	)	
Proceeds from the sale of property, plant and equipment	 	 	15,480	 	 	 	5,192	 	
Proceeds from sale of investment	 	 	2,460	 	 	 	—	 	
Proceeds from specialty test operations	 	 	—	 	 	 	1,717	 	
Other investing activities	 	 	(3,081	)	 	 	(1,968	)	
 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	(371,380	)	 	 	(231,299	)	

Cash flows from financing activities:	 	 	 	 	 	 	 	 	
Borrowings under revolving credit facilities	 	 	619	 	 	 	86,150	 	
Payments under revolving credit facilities	 	 	(633	)	 	 	(109,296	)	
Proceeds from issuance of long-term debt	 	 	—	 	 	 	300,000	 	
Payments for debt issuance costs	 	 	—	 	 	 	(3,441	)	
Payments of long-term debt, including redemption premium payment	 	 	(233,814	)	 	 	(518,913	)	
Proceeds from issuance of stock through stock compensation plans	 	 	10,203	 	 	 	37,050	 	
 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(223,625	)	 	 	(208,450	)	

Effect of exchange rate fluctuations on cash and cash equivalents	 	 	3,433	 	 	 	1,695	 	

Net increase in cash and cash equivalents	 	 	14,246	 	 	 	165,376	 	
Cash and cash equivalents, beginning of period	 	 	410,070	 	 	 	244,694	 	
 	 	 	 	 	 	 	
Cash and cash equivalents, end of period	 	$	424,316	 	 	$	410,070