Amkor Technology Reports Financial Results for the Second Quarter 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

 
Q2 2012 Q1 2012 Q2 2011
Sales Data (prior periods were revised for a refinement of our classifications):
Packaging services (in millions):
Chip scale package $ 244 $ 250 $ 211
Leadframe 176 168 187
Ball grid array 137 117 163
Other packaging 54   47   52  
Packaging services 611 582 613
Test services 76   73   75  
Total sales $ 687   $ 655   $ 688  
 
Packaging services:
Chip scale package 35 % 38 % 31 %
Leadframe 26 % 26 % 27 %
Ball grid array 20 % 18 % 24 %
Other packaging 8   % 7   % 7   %
Packaging services 89 % 89 % 89 %
Test services 11   % 11   % 11   %
Total sales 100   % 100   % 100   %
 
Packaged units (in millions):
Chip scale package 480 409 442
Leadframe 1,589 1,457 1,671
Ball grid array 45 40 51
Other packaging 11   14   22  
Total packaged units

2,125

 

1,920   2,186  
 
Net sales from top ten customers 64 % 65 % 60 %
 
Capacity Utilization
Packaging 79 % 73 % 76 %
Test 80 % 78 % 78 %
 
End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers):
Communications (cell phones, tablets, wireless LAN, handheld devices) 45 % 47 % 38 %
Consumer (gaming, television, set top boxes, portable media, digital cameras) 23 % 20 % 26 %
Computing (PCs, laptops, hard disk drives, servers, displays, printers, peripherals) 12 % 13 % 12 %
Networking (network servers, routers, switches) 11 % 11 % 13 %
Other (auto, industrial) 9   % 9   % 11   %
Total 100   % 100   % 100   %
 
Gross Margin Data:
Net sales 100 % 100 % 100 %
Cost of sales:
Materials 43 % 45 % 43 %
Labor 15 % 14 % 15 %
Other manufacturing 25 % 25 % 23 %
Loss contingency accrual 4   %   %   %
Gross margin 13   % 16   % 19   %
 
 
                 
Q2 2012 Q1 2012 Q2 2011
(In millions, except per share data)
Capital Investment Data:
Property, plant and equipment additions $ 149 $ 124 $ 97
Net change in related accounts payable and deposits (38 ) (3 ) 14  
Purchases of property, plant and equipment $ 111   $ 121   $ 111  
Depreciation and amortization $ 91 $ 88 $ 83
 
Free Cash Flow Data:
Net cash provided by operating activities $ 86 $ 56 $ 114
Less purchases of property, plant and equipment (111 ) (121 ) (111 )
Free cash flow* $ (25 ) $ (65 ) $ 3  
 
Earnings per Share Data:
Net income attributable to Amkor - basic $ 1 $ 12 $ 14
 
Adjustment for dilutive securities on net income:
Interest on 6.0% convertible notes due 2014, net of tax   4   5  
Net income attributable to Amkor - diluted $ 1   $ 16   $ 19  
 
Weighted average shares outstanding - basic** 166 168 197
Effect of dilutive securities:
Stock options and unvested restricted shares
6.0% convertible notes due 2014   83   83  
Weighted average shares outstanding - diluted 166   251   280  
 
Net income attributable to Amkor per common share:
Basic $   $ 0.07   $ 0.07  
Diluted $   $ 0.06   $ 0.07  
 

*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 U.S. GAAP. 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, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies.

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