Amkor Technology Reports Financial Results for the Fourth Quarter and Full Year 2012

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, 2011 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.

           
 

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

Q4
2012

Q3
2012

Q4
2011

2012 2011
Sales Data:
Packaging services (in millions):
Chip scale package $ 306 $ 235 $ 276 $ 1,035 $ 965
Leadframe 146 171 158 661 692
Ball grid array 114 148 128 516 625
Other packaging 65   62   53   227   211  
Packaging services 631 616 615 2,439 2,493
Test services 92   79   69   321   283  
Total sales $ 723   $ 695   $ 684   $ 2,760   $ 2,776  
 
Packaging services:
Chip scale package 42 % 34 % 40 % 37 % 35 %
Leadframe 20 % 25 % 23 % 24 % 25 %
Ball grid array 16 % 21 % 19 % 19 % 22 %
Other packaging 9   % 9   % 8   % 8   % 8   %
Packaging services 87 % 89 % 90 % 88 % 90 %
Test services 13   % 11   % 10   % 12   % 10   %
Total sales 100 % 100 % 100 % 100 % 100 %
 
Packaged units (in millions):
Chip scale package 772 603 445 2,264 1,826
Leadframe 1,387 1,499 1,287 5,932 6,041
Ball grid array 39 47 40 171 195
Other packaging 52   51   9   128   74  
Total packaged units 2,250   2,200   1,781   8,495   8,136  
 
Net sales from top ten customers 63 % 62 % 66 % 62 % 61 %
 
Capacity Utilization:
Packaging 77 % 76 % 73 % 75 % 74 %
Test 80 % 77 % 74 % 79 % 75 %
 
End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers) :
Communications (handsets, tablets, wireless LAN, handheld devices) 58 % 44 % 49 % 48 % 43 %
Consumer (gaming, television, set top boxes, portable media, digital cameras) 17 % 24 % 21 % 21 % 24 %
Computing (desk tops, PCs, hard disk drive, servers, displays, printers, peripherals) 9 % 11 % 11 % 11 % 12 %
Networking (servers, routers, switches) 9 % 12 % 11 % 11 % 12 %
Other (automotive, industrial) 7   % 9   % 8   % 9   % 9   %
Total 100   % 100   % 100   % 100   % 100   %
 
Gross Margin Data:
Net sales 100 % 100 % 100 % 100 % 100 %
Cost of sales:
Materials 42 % 43 % 45 % 43 % 44 %
Labor 14 % 15 % 14 % 15 % 15 %
Other manufacturing 26 % 25 % 25 % 25 % 23 %
Loss contingency   %   %   % 1   %   %
Gross margin 18   % 17   % 16   % 16   % 18   %
 
        2012     2011
(In millions)
Return on Invested Capital:
Operating income $ 173 $ 194
Equity in earnings of unconsolidated affiliate 6 7
Income tax expense (19 ) (7 )
Net operating profit after tax (NOPAT) $ 160   $ 194  
 
Invested capital:
Average debt $ 1,446 $ 1,355
Plus average equity 686 662
Less average cash (424 ) (420 )
Average invested capital $ 1,708   $ 1,597  
 
Return on invested capital (NOPAT / average invested capital)* 9 % 12 %
 
   

Q4
2012

   

Q3
2012

   

Q4
2011

    2012     2011
(In millions, except per share data)
Capital Investment Data:
Property, plant and equipment additions $ 86 $ 173 $ 128 $ 533 $ 453
Net change in related accounts payable and deposits 67   (25 ) 14   1   14  
Purchases of property, plant and equipment $ 153   $ 148   $ 142   $ 534   $ 467  
Depreciation and amortization $ 97 $ 94 $ 87 $ 370 $ 336
 
Free Cash Flow Data:
Net cash provided by operating activities $ 98 $ 142 $ 141 $ 383 $ 517
Less purchases of property, plant and equipment (153 ) (148 ) (142 ) (534 ) (467 )
Free cash flow* $ (55 ) $ (6 ) $ (1 ) $ (151 ) $ 50  
 
Earnings per Share Data:
Net income attributable to Amkor - basic $ 27 $ 22 $ 25 $ 62 $ 92
Adjustment for dilutive securities on net income:
Interest on 6.0% convertible notes due 2014, net of tax 4   4   4   16   16  
Net income attributable to Amkor - diluted $ 31   $ 26   $ 29   $ 78   $ 108  
 
Weighted average shares outstanding - basic** 152 154 177 160 191
Effect of dilutive securities:
Stock options and unvested restricted shares
6.0% convertible notes due 2014 83   83   83   83   83  
Weighted average shares outstanding - diluted 235   237   260   243   274  
 
Net income attributable to Amkor per common share:
Basic $ 0.18   $ 0.14   $ 0.14   $ 0.39   $ 0.48  
Diluted $ 0.13   $ 0.11   $ 0.11   $ 0.32   $ 0.39  
 

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