Amkor Technology Reports Financial Results for the Third Quarter 2013

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, 2012 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

Since the first quarter 2013, we have reported sales data for our packaging services by the following categories: flip chip and wafer-level processing and wirebond. We have also provided quarterly and annual packaging services sales and packaged units for 2011 and 2012 under these revised sales reporting categories at the Investor Relations section of our website at www.amkor.com.

    Q3 2013     Q2 2013     Q3 2012
Sales Data:
Packaging services (in millions):
Flip chip and wafer-level processing $ 304 $ 339 $ 295
Wirebond   351     308     321  
Packaging services 655 647 616
Test services   113     99     79  
Total sales $ 768   $ 746   $ 695  
 
Packaging services:
Flip chip and wafer-level processing 39 % 46 % 43 %
Wirebond   46   %   41   %   46   %
Packaging services 85 % 87 % 89 %
Test services   15   %   13   %   11   %
Total sales   100   %   100   %   100   %
 
Packaged units (in millions):
Flip chip and wafer-level processing 746 704 447
Wirebond   3,101     1,976     1,753  
Total packaged units   3,847     2,680     2,200  
 
Net sales from top ten customers 63 % 63 % 62 %
 
 
End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers; prior periods have been revised for a refinement of our classifications) :
Communications (handsets, tablets, wireless LAN, handheld devices) 53 % 58 % 44 %
Consumer (gaming, television, set top boxes, portable media, digital cameras) 15 % 14 % 24 %
Computing (desk tops, PCs, hard disk drives, servers, displays, printers, peripherals) 11 % 9 % 11 %
Networking (servers, routers, switches) 11 % 10 % 12 %
Other (automotive, industrial)   10   %   9   %   9   %
Total   100   %   100   %   100   %
 
Gross Margin Data:
Net sales 100.0 % 100.0 % 100.0 %
Cost of sales:
Materials 39.0 % 41.7 % 42.8 %
Labor 14.1 % 14.0 % 14.8 %
Other manufacturing 27.2 % 25.8 % 25.6 %
Loss contingency   1.3   %     %    

%

Gross margin   18.4   %   18.5   %   16.8   %
 
 

AMKOR TECHNOLOGY, INC.
Selected Operating Data

 
    Q3 2013     Q2 2013     Q3 2012
(In millions, except per share data)
Capital Investment Data:
Property, plant and equipment additions $ 97 $ 159 $ 173
Net change in related accounts payable and deposits  

82

    (49 )   (25 )
Purchases of property, plant and equipment $

179

  $ 110   $ 148  
Depreciation and amortization $ 106 $ 99 $ 94
 
Free Cash Flow Data:
Net cash provided by operating activities $ 174 $ 102 $ 142
Less purchases of property, plant and equipment   (179 )   (110 )   (148 )
Free cash flow (1) $ (5 ) $ (8 ) $ (6 )
 
Earnings per Share Data:
Net income attributable to Amkor - basic $ 25 $ 30 $ 22
 
Adjustment for dilutive securities on net income:
Interest on 6.0% convertible notes due 2014, net of tax   1     3     4  
Net income attributable to Amkor - diluted $ 26   $ 33   $ 26  
 
Weighted average shares outstanding - basic 216 161 154
Effect of dilutive securities:
6.0% convertible notes due 2014   19     74     83  
Weighted average shares outstanding - diluted   235     235     237  
 
Net income attributable to Amkor per common share:
Basic $ 0.12   $ 0.18   $ 0.14  
Diluted $ 0.11   $ 0.14   $ 0.11  
(1)     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. generally accepted accounting principles ("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.
 

AMKOR TECHNOLOGY, INC.

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