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, 2011
 
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, 2010 and forward-looking statements relating to the first quarter of 2011 as presented in a press release dated February 9, 2011. 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 years ended December 31, 2010 and 2009 and free cash flow for the three months and year ended December 31, 2010. 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 generally accepted accounting principles. ROIC is defined as net operating profit after tax divided by average invested capital (the sum of average debt plus average equity minus average cash). We believe that ROIC is useful information for our investors in evaluating whether our capital investments are generating shareholder value. We define free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. 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 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 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 9, 2011, 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, 2011

 
EXHIBIT INDEX:
 	 	 	
Exhibit	 	Description	
99.1	 	Text of Press Release dated February 9, 2011	

Exhibit 99.1

 	 	News Release	
Amkor Technology Reports Financial Results for the Fourth Quarter and Full Year 2010
Fourth Quarter 2010
 	•	 	Net sales $751 million	
 	 	 	 	
 	•	 	Gross margin 21%	
 	 	 	 	
 	•	 	Net income $51 million	
 	 	 	 	
 	•	 	Earnings per diluted share $0.20	
Full Year 2010
 	•	 	Net sales $2.94 billion	
 	 	 	 	
 	•	 	Gross margin 23%	
 	 	 	 	
 	•	 	Net income $232 million	
 	 	 	 	
 	•	 	Earnings per diluted share $0.91	
CHANDLER, Ariz. — February 9, 2011 — Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor assembly and test services, today announced financial results for the fourth quarter ended December 31, 2010, with net sales of $751 million, net income of $51 million, and earnings per diluted share of $0.20. For the full year 2010, Amkor reported net sales of $2.94 billion, net income of $232 million, and earnings per diluted share of $0.91.
“We delivered record net sales and net income for the full year 2010,” said Ken Joyce, Amkor’s president and chief executive officer. “Strong demand across all of our package families and end markets, particularly in our core markets for wireless communications, gaming and other consumer electronics, drove net sales growth of 35% and a 49% increase in net income. We also reduced our net debt by $79 million and delivered a 24% return on invested capital.”
“During the fourth quarter we saw solid growth in communications, a seasonal decline in gaming and inventory adjustments by some of our customers in the consumer electronics and networking areas,” said Joyce. “The lower business volumes in the quarter, along with unfavorable foreign currency exchange rate movements, reduced our gross margin from the prior quarter.”

 
Selected financial information for the fourth quarter 2010 is as follows:
 	•	 	Net Sales: $751 million, down 5% from $794 million in the prior quarter, and up 12% from $668 million in the fourth quarter of 2009	
 	 	 	 	
 	•	 	Gross Margin: 21%, compared to 24% in the prior quarter and 26% in the fourth quarter of 2009	
 	 	 	 	
 	•	 	Net Income: $51 million, down from $78 million in the prior quarter, and down from $88 million in the fourth quarter of 2009	
 	 	 	 	
 	•	 	Earnings Per Diluted Share: $0.20, down from $0.30 in the prior quarter, and down from $0.33 in the fourth quarter of 2009	
Selected financial information for the full year 2010 is as follows:
 	•	 	Net Sales: $2.94 billion, up 35% from $2.18 billion in 2009	
 	 	 	 	
 	•	 	Gross Margin: 23%, compared to 22% in 2009	
 	 	 	 	
 	•	 	Net Income: $232 million, up 49% from $156 million in 2009	
 	 	 	 	
 	•	 	Earnings Per Diluted Share: $0.91, up from $0.67 in 2009	
“Our fourth quarter earnings per diluted share were adversely impacted by approximately $0.04 as a result of unfavorable foreign currency exchange rate movements and $0.02 for an unanticipated reserve for foreign taxes,” said Joanne Solomon, Amkor’s executive vice president and chief financial officer. “Capital additions were $103 million during the fourth quarter, primarily in support of solid demand for wireless communications.”
Cash and cash equivalents were $405 million, and net debt was $959 million, at December 31, 2010. In January 2011, the company redeemed all $100 million of its 6.25% Convertible Subordinated Notes due 2013. The Notes were converted into 13.4 million shares of Amkor Common Stock and no cash was used for the redemption. As a consequence of this conversion, net debt would have been $859 million.
Selected operating data for the fourth quarter and full year 2010 are included in a section before the financial statements.
Business Outlook
“Looking ahead to the first quarter of 2011, our strong position in gaming is amplifying typical seasonal patterns and we see some carryover of the inventory adjustments that began in the fourth quarter,” said Joyce. “The corresponding decline in utilization is expected to compress our gross margin in the first quarter.”
“As we exit the first quarter, we are anticipating a rebound in customer demand and a year of solid growth driven primarily by strength in wireless communications and consumer electronics,” continued Joyce. “To meet the capacity requirements of our leading customers, we are currently planning capital additions of approximately $500 million for 2011, with spending weighted in the first half of the year to take advantage of the growth opportunities we see in the second quarter and the balance of the year.”

 
Based upon the currently available information, we have the following expectations for the first quarter of 2011:
 	•	 	Net sales of $660 million to $690 million, down 8% to down 12% from the prior quarter	
 	 	 	 	
 	•	 	Gross margin between 16% and 19%	
 	 	 	 	
 	•	 	Net income of $10 million to $35 million, or $0.05 to $0.14 per diluted share	
 	 	 	 	
 	•	 	Capital additions of approximately $135 million for the first quarter, and capital additions of approximately $500 million for the full year	

 
Conference Call Information
Amkor will conduct a conference call on February 9, 2011, at 5:00 p.m. Eastern Daylight 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 877-941-1465. A replay of the call will be made available at Amkor’s web site or by dialing 800-406-7325 (access pass code #4406938). 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 assembly and test services to semiconductor companies and electronics OEMs. 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, the following statements made regarding: our position in gaming and its impact on our typical seasonal patterns, some carryover of inventory adjustments into the first quarter, a decline in utilization and its expected impact on our gross margin in the first quarter, the anticipated rebound in customer demand and year of solid growth, expected strength in wireless communications and consumer electronics, the amount and timing of our capital additions in 2011, growth opportunities in the second quarter and the balance of the year, and our current business outlook for the first quarter of 2011, including our expected net sales, gross margin, net income, earnings per diluted share and capital additions. 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;	
 	 	 	 	
 	•	 	inability to achieve high capacity utilization rates;	
 	 	 	 	
 	•	 	volatility of consumer demand for products incorporating our semiconductor packages;	
 	 	 	 	
 	•	 	dependence on key customers;	
 	 	 	 	
 	•	 	weakness in the forecasts of our 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;	
 	 	 	 	
 	•	 	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 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, 2009 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 2010	 	 	Q3 2010	 	 	Q4 2009	 	 	2010	 	 	2009	 	
Sales Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Packaging services (in millions):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chip scale package	 	$	272	 	 	$	244	 	 	$	224	 	 	$	954	 	 	$	695	 	
Ball grid array	 	 	186	 	 	 	212	 	 	 	142	 	 	 	747	 	 	 	500	 	
Leadframe	 	 	176	 	 	 	204	 	 	 	184	 	 	 	761	 	 	 	587	 	
Other packaging	 	 	46	 	 	 	52	 	 	 	47	 	 	 	188	 	 	 	152	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Packaging services	 	 	680	 	 	 	712	 	 	 	597	 	 	 	2,650	 	 	 	1,934	 	
Test services	 	 	71	 	 	 	82	 	 	 	71	 	 	 	289	 	 	 	245	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total sales	 	$	751	 	 	$	794	 	 	$	668	 	 	$	2,939	 	 	$	2,179	 	

Packaging services:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chip scale package	 	 	36	%	 	 	31	%	 	 	33	%	 	 	33	%	 	 	32	%	
Ball grid array	 	 	25	%	 	 	27	%	 	 	21	%	 	 	25	%	 	 	23	%	
Leadframe	 	 	24	%	 	 	26	%	 	 	28	%	 	 	26	%	 	 	27	%	
Other packaging	 	 	6	%	 	 	6	%	 	 	7	%	 	 	6	%	 	 	7	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Packaging services	 	 	91	%	 	 	90	%	 	 	89	%	 	 	90	%	 	 	89	%	
Test services	 	 	9	%	 	 	10	%	 	 	11	%	 	 	10	%	 	 	11	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total sales	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	

Packaged units (in millions):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chip scale package	 	 	590	 	 	 	618	 	 	 	519	 	 	 	2,130	 	 	 	1,652	 	
Ball grid array	 	 	61	 	 	 	72	 	 	 	53	 	 	 	228	 	 	 	205	 	
Leadframe	 	 	1,579	 	 	 	2,185	 	 	 	1,856	 	 	 	7,466	 	 	 	5,773	 	
Other packaging	 	 	4	 	 	 	8	 	 	 	7	 	 	 	24	 	 	 	24	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total packaged units	 	 	2,234	 	 	 	2,883	 	 	 	2,435	 	 	 	9,848	 	 	 	7,654	 	

Net sales from top ten customers	 	 	57	%	 	 	55	%	 	 	55	%	 	 	54	%	 	 	53	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capacity Utilization (Packaging and test utilization separately presented beginning in Q4 2010. Prior periods were recalculated based on current methodology for comparability):	 	 	 	 	 	 	 	 	
Packaging	 	 	78	%	 	 	85	%	 	 	87	%	 	 	82	%	 	 	76	%	
Test	 	 	74	%	 	 	87	%	 	 	74	%	 	 	78	%	 	 	67	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers. Prior periods were revised for an expanded sampling methodology and refinement of our classifications):	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Communications (cell phones, Ethernet, WiMAX, wireless LAN, Bluetooth)	 	 	40	%	 	 	34	%	 	 	39	%	 	 	36	%	 	 	37	%	
Consumer (gaming, set top boxes, TV, portable media)	 	 	26	%	 	 	30	%	 	 	26	%	 	 	28	%	 	 	28	%	
Computing (PCs, servers, displays, hard disk drive, printers, other peripherals)	 	 	12	%	 	 	14	%	 	 	13	%	 	 	14	%	 	 	14	%	
Networking (infrastructure, routers, network servers)	 	 	13	%	 	 	13	%	 	 	13	%	 	 	13	%	 	 	13	%	
Other (auto, industrial)	 	 	9	%	 	 	9	%	 	 	9	%	 	 	9	%	 	 	8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	

Gross Margin Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net sales	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	
Cost of sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Materials	 	 	43	%	 	 	43	%	 	 	40	%	 	 	43	%	 	 	40	%	
Labor	 	 	13	%	 	 	12	%	 	 	13	%	 	 	12	%	 	 	13	%	
Other manufacturing	 	 	23	%	 	 	21	%	 	 	21	%	 	 	22	%	 	 	25	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	21	%	 	 	24	%	 	 	26	%	 	 	23	%	 	 	22	%	

 
AMKOR TECHNOLOGY, INC.
Selected Operating Data
 	 	 	 	 	 	 	 	 	
 	 	2010	 	 	2009	 	
 	 	(in millions)	 	
Return on Invested Capital:	 	 	 	 	 	 	 	 	
Operating income	 	$	374	 	 	$	225	 	
Income tax (expense) benefit	 	 	(19	)	 	 	30	 	
 	 	 	 	 	 	 	
Net operating profit after tax (NOPAT)	 	$	355	 	 	$	255	 	

Invested capital:	 	 	 	 	 	 	 	 	
Average debt	 	$	1,399	 	 	$	1,464	 	
Plus average equity	 	 	507	 	 	 	310	 	
Less average cash	 	 	(400	)	 	 	(410	)	
 	 	 	 	 	 	 	
Average invested capital	 	$	1,506	 	 	$	1,364	 	

Return on invested capital (NOPAT / average invested capital)*	 	 	24	%	 	 	19	%	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Q4 2010	 	 	Q3 2010	 	 	Q4 2009	 	 	2010	 	 	2009	 	
 	 	(in millions, except per share data)	 	
Capital Investment Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant and equipment additions	 	$	103	 	 	$	171	 	 	$	69	 	 	$	505	 	 	$	198	 	
Net change in related accounts payable and deposits	 	 	66	 	 	 	(37	)	 	 	(7	)	 	 	(59	)	 	 	(24	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment	 	$	169	 	 	$	134	 	 	$	62	 	 	$	446	 	 	$	174	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	$	87	 	 	$	83	 	 	$	75	 	 	$	324	 	 	$	306	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free Cash Flow Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	$	176	 	 	$	176	 	 	$	106	 	 	$	543	 	 	$	262	 	
Less purchases of property, plant and equipment	 	 	(169	)	 	 	(134	)	 	 	(62	)	 	 	(446	)	 	 	(174	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow*	 	$	7	 	 	$	42	 	 	$	44	 	 	$	97	 	 	$	88	 	

Earnings per Share Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Amkor — basic	 	$	51	 	 	$	78	 	 	$	88	 	 	$	232	 	 	$	156	 	
Adjustment for dilutive securities on net income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest on 2.5% convertible notes due 2011, net of tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	2	 	
Interest on 6.25% convertible notes due 2013, net of tax	 	 	2	 	 	 	2	 	 	 	2	 	 	 	7	 	 	 	7	 	
Interest on 6.0% convertible notes due 2014, net of tax	 	 	4	 	 	 	4	 	 	 	4	 	 	 	16	 	 	 	12	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Amkor — diluted	 	$	57	 	 	$	84	 	 	$	94	 	 	$	256	 	 	$	177	 	

Weighted average shares outstanding — basic	 	 	183	 	 	 	183	 	 	 	183	 	 	 	183	 	 	 	183	 	
Effect of dilutive securities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Stock options and unvested restricted shares	 	 	1	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	—	 	
2.5% convertible notes due 2011	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	5	 	
6.25% convertible notes due 2013	 	 	13	 	 	 	13	 	 	 	13	 	 	 	13	 	 	 	13	 	
6.0% convertible notes due 2014	 	 	83	 	 	 	83	 	 	 	83	 	 	 	83	 	 	 	62	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding — diluted	 	 	283	 	 	 	282	 	 	 	282	 	 	 	283	 	 	 	263	 	

Net income attributable to Amkor per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	$	0.28	 	 	$	0.42	 	 	$	0.48	 	 	$	1.26	 	 	$	0.85	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	 	$	0.20	 	 	$	0.30	 	 	$	0.33	 	 	$	0.91	 	 	$	0.67	 	

 	 	 	
*	 	Return on invested capital (“ROIC”) is defined as net operating profit after tax divided by average invested capital (the sum of average debt plus average equity minus average cash). ROIC is not defined by generally accepted accounting principles (“GAAP”). We believe that ROIC is useful information for our investors in evaluating whether our capital investments are generating shareholder 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 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 GAAP, and our definitions of ROIC and free cash flow may not be comparable to similarly titled measures reported by other companies.	

 
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	For the Three Months	 	 	For the Year	 	
 	 	Ended December 31,	 	 	Ended December 31,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	(In thousands, except per share data)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	750,609	 	 	$	667,612	 	 	$	2,939,483	 	 	$	2,179,109	 	
Cost of sales	 	 	591,266	 	 	 	492,258	 	 	 	2,275,727	 	 	 	1,698,713	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	159,343	 	 	 	175,354	 	 	 	663,756	 	 	 	480,396	 	

Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selling, general and administrative	 	 	62,037	 	 	 	54,640	 	 	 	242,424	 	 	 	210,626	 	
Research and development	 	 	11,097	 	 	 	10,907	 	 	 	47,534	 	 	 	44,453	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	73,134	 	 	 	65,547	 	 	 	289,958	 	 	 	255,079	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	86,209	 	 	 	109,807	 	 	 	373,798	 	 	 	225,317	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Other (income) expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	19,202	 	 	 	23,434	 	 	 	85,595	 	 	 	102,396	 	
Interest expense, related party	 	 	3,813	 	 	 	3,813	 	 	 	15,250	 	 	 	13,000	 	
Interest income	 	 	(675	)	 	 	(841	)	 	 	(2,950	)	 	 	(2,367	)	
Foreign currency loss	 	 	4,746	 	 	 	1,178	 	 	 	13,756	 	 	 	3,339	 	
Loss (gain) on debt retirement, net	 	 	—	 	 	 	570	 	 	 	18,042	 	 	 	(15,088	)	
Equity in earnings of unconsolidated affiliate	 	 	(1,552	)	 	 	(2,373	)	 	 	(6,435	)	 	 	(2,373	)	
Other income, net	 	 	(144	)	 	 	(36	)	 	 	(619	)	 	 	(113	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other expense, net	 	 	25,390	 	 	 	25,745	 	 	 	122,639	 	 	 	98,794	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	 	 	60,819	 	 	 	84,062	 	 	 	251,159	 	 	 	126,523	 	
Income tax expense (benefit)	 	 	10,058	 	 	 	(3,820	)	 	 	19,012	 	 	 	(29,760	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	50,761	 	 	 	87,882	 	 	 	232,147	 	 	 	156,283	 	
Net (income) loss attributable to noncontrolling interests	 	 	(157	)	 	 	104	 	 	 	(176	)	 	 	(303	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Amkor	 	$	50,604	 	 	$	87,986	 	 	$	231,971	 	 	$	155,980	 	

Net income attributable to Amkor per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	$	0.28	 	 	$	0.48	 	 	$	1.26	 	 	$	0.85	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	 	$	0.20	 	 	$	0.33	 	 	$	0.91	 	 	$	0.67	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares used in computing per common share amounts:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	183,404	 	 	 	183,134	 	 	 	183,312	 	 	 	183,067	 	
Diluted	 	 	282,830	 	 	 	282,495	 	 	 	282,602	 	 	 	263,379	 	

 
AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	 	December 31,	 	
 	 	2010	 	 	2009	 	
 	 	(In thousands)	 	
ASSETS
	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	404,998	 	 	$	395,406	 	
Restricted cash	 	 	17,782	 	 	 	2,679	 	
Accounts receivable:	 	 	 	 	 	 	 	 	
Trade, net of allowances	 	 	392,327	 	 	 	328,252	 	
Other	 	 	17,970	 	 	 	18,666	 	
Inventories	 	 	191,072	 	 	 	155,185	 	
Other current assets	 	 	37,918	 	 	 	32,737	 	
 	 	 	 	 	 	 	
Total current assets	 	 	1,062,067	 	 	 	932,925	 	
 	 	 	 	 	 	 	 	 	
Property, plant and equipment, net	 	 	1,537,226	 	 	 	1,364,630	 	
Intangibles, net	 	 	13,524	 	 	 	9,975	 	
Investments	 	 	28,215	 	 	 	19,108	 	
Restricted cash	 	 	1,945	 	 	 	6,795	 	
Other assets	 	 	93,845	 	 	 	99,476	 	
 	 	 	 	 	 	 	
Total assets	 	$	2,736,822	 	 	$	2,432,909	 	

LIABILITIES AND EQUITY
	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Short-term borrowings and current portion of long-term debt	 	$	150,081	 	 	$	88,944	 	
Trade accounts payable	 	 	443,333	 	 	 	361,263	 	
Accrued expenses	 	 	178,794	 	 	 	155,630	 	
 	 	 	 	 	 	 	
Total current liabilities	 	 	772,208	 	 	 	605,837	 	
 	 	 	 	 	 	 	 	 	
Long-term debt	 	 	964,219	 	 	 	1,095,241	 	
Long-term debt, related party	 	 	250,000	 	 	 	250,000	 	
Pension and severance obligations	 	 	103,543	 	 	 	83,067	 	
Other non-current liabilities	 	 	10,171	 	 	 	9,063	 	
 	 	 	 	 	 	 	
Total liabilities	 	 	2,100,141	 	 	 	2,043,208	 	

Equity:	 	 	 	 	 	 	 	 	
Amkor stockholders’ equity:	 	 	 	 	 	 	 	 	
Preferred stock	 	 	—	 	 	 	—	 	
Common stock, $0.001 par value, 500,000 shares authorized, 183,467 and 183,171 shares issued, and 183,420 and 183,171 shares outstanding, in 2010 and 2009, respectively	 	 	183	 	 	 	183	 	
Additional paid-in capital	 	 	1,504,927	 	 	 	1,500,246	 	
Accumulated deficit	 	 	(890,270	)	 	 	(1,122,241	)	
Accumulated other comprehensive income	 	 	15,457	 	 	 	5,021	 	
Treasury stock, at cost, 47 shares in 2010	 	 	(284	)	 	 	—	 	
 	 	 	 	 	 	 	
Total Amkor stockholders’ equity	 	 	630,013	 	 	 	383,209	 	
Noncontrolling interests in subsidiaries	 	 	6,668	 	 	 	6,492	 	
 	 	 	 	 	 	 	
Total equity	 	 	636,681	 	 	 	389,701	 	
 	 	 	 	 	 	 	
Total liabilities and equity	 	$	2,736,822	 	 	$	2,432,909	 	

 
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 	 	 	 	 	 	 	 	 	
 	 	For the Year Ended	 	
 	 	December 31,	 	
 	 	2010	 	 	2009	 	
 	 	(In thousands)	 	
Cash flows from operating activities:	 	 	 	 	 	 	 	 	
Net income	 	$	232,147	 	 	$	156,283	 	
Depreciation and amortization	 	 	323,608	 	 	 	305,510	 	
Loss (gain) on debt retirement, net	 	 	10,562	 	 	 	(15,088	)	
Other operating activities and non-cash items	 	 	11,522	 	 	 	(17,595	)	
Changes in assets and liabilities	 	 	(35,244	)	 	 	(167,385	)	
 	 	 	 	 	 	 	
Net cash provided by operating activities	 	 	542,595	 	 	 	261,725	 	

Cash flows from investing activities:	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment	 	 	(445,669	)	 	 	(173,496	)	
Proceeds from the sale of property, plant and equipment	 	 	3,125	 	 	 	3,116	 	
Purchase of equipment leased to unconsolidated affiliate	 	 	—	 	 	 	(44,681	)	
Investment in unconsolidated affiliate	 	 	—	 	 	 	(16,735	)	
Financing lease payment from unconsolidated affiliate	 	 	13,384	 	 	 	—	 	
Other investing activities	 	 	(15,761	)	 	 	(9,082	)	
 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	(444,921	)	 	 	(240,878	)	

Cash flows from financing activities:	 	 	 	 	 	 	 	 	
Borrowings under revolving credit facilities	 	 	3,261	 	 	 	41,410	 	
Payments under revolving credit facilities	 	 	(34,253	)	 	 	(10,171	)	
Proceeds from issuance of short-term working capital facility	 	 	15,000	 	 	 	15,000	 	
Payments of short-term working capital facility	 	 	(15,000	)	 	 	—	 	
Proceeds from issuance of long-term debt	 	 	611,007	 	 	 	100,000	 	
Proceeds from issuance of long-term debt, related party	 	 	—	 	 	 	150,000	 	
Payments of long-term debt, net of redemption premiums and discounts	 	 	(663,433	)	 	 	(338,104	)	
Payments for debt issuance costs	 	 	(7,487	)	 	 	(8,479	)	
Proceeds from issuance of stock through stock compensation plans	 	 	1,048	 	 	 	693	 	
 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(89,857	)	 	 	(49,651	)	

Effect of exchange rate fluctuations on cash and cash equivalents	 	 	1,775	 	 	 	(106	)	

Net increase (decrease) in cash and cash equivalents	 	 	9,592	 	 	 	(28,910	)	
Cash and cash equivalents, beginning of period	 	 	395,406	 	 	 	424,316	 	
 	 	 	 	 	 	 	
Cash and cash equivalents, end of period	 	$	404,998	 	 	$	395,406