Amkor Technology Reports Financial Results for the First Quarter

Amkor Technology Reports Financial Results for the First Quarter 2013

First Quarter 2013

Net sales $688 million
Gross margin 17%
Net income $13 million
Earnings per diluted share $0.07

CHANDLER, Ariz. — (BUSINESS WIRE) — April 25, 2013 — Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the first quarter ended March 31, 2013, with net sales of $688 million, net income of $13 million, and earnings per diluted share of $0.07.

"Driven by our strong performance in mobile communications, first quarter sales and earnings came in at the high end of our expectations," said Ken Joyce, Amkor's president and chief executive officer. "Our investments in the advanced technologies and production capacity in support of the fast-growing market for smartphones and tablets are paying off with notable improvement over the first quarter 2012."

Selected financial information for the first quarter 2013 is as follows:

Net Sales: $688 million, down 5% from $723 million in the prior quarter, and up 5% from $655 million in the first quarter of 2012
Gross Margin: 17%, compared to adjusted gross margin of 18% in the prior quarter, and 16% in the first quarter of 2012
Net Income: $13 million, down from adjusted net income of $27 million in the prior quarter, and up from $12 million in the first quarter of 2012
Earnings Per Diluted Share: $0.07, down from adjusted earnings per diluted share of $0.13 in the prior quarter, and up from $0.06 in the first quarter of 2012

The adjusted gross margin, adjusted net income and adjusted earnings per diluted share presented above for the fourth quarter 2012 exclude a loss contingency of $22 million ($20 million, net of tax) relating to our pending patent license arbitration with Tessera, Inc. and are non-GAAP measures. Selected operating data for the first quarter 2013, and a reconciliation of the fourth quarter 2012 non-GAAP measures presented above to the comparable GAAP measures, are included in a section below before the financial statements.

“Capital additions were $124 million during the first quarter, primarily in support of customers in mobile communications,” said Joanne Solomon, Amkor's executive vice president and chief financial officer.

Cash and cash equivalents were $467 million, and total debt was $1.6 billion, at March 31, 2013.

Business Outlook

"To support the growth opportunities we see in mobile communications, we are revising our estimate of 2013 capital additions from around $450 million to around $525 million," noted Joyce.

Based upon currently available information, we have the following expectations for the second quarter 2013:

Net sales of $730 million to $780 million, up 6% to 13% from the prior quarter
Gross margin of 17% to 20%
Net income of $18 million to $41 million, or $0.09 to $0.19 per diluted share
Capital additions of around $170 million

Based upon currently available information, we have the following expectations for the full year 2013:

Capital additions of around $525 million
An additional $150 million of spending for the acquisition of land and construction relating to our previously announced new factory and R&D center in South Korea

Conference Call Information

Amkor will conduct a conference call on Thursday, April 25, 2013, 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: www.amkor.com. You may also access the call by dialing 1-888-561-1721 or 1-480-629-9724. A replay of the call will be made available at Amkor's website or by dialing 1-800-406-7325 or 1-303-590-3030 (access pass code #4614651). 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 ).

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