[April 27, 2016] |
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Amkor Technology Reports Financial Results for the First Quarter 2016
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, 2016.
"First quarter results were above the high end of our guidance," said
Steve Kelley, Amkor's president and chief executive officer. "We
benefited from better than expected performance in Japan and in the
high-end Android smartphone market. In addition, our strategic
initiatives continued to build momentum with automotive sales of $220
million in the quarter, up 7% sequentially and 6% year-over-year on a
combined basis with J-Devices. Our Greater China revenues were also up
21% sequentially. However, overall demand was still relatively low on a
historical basis, which led to breakeven financial performance in the
quarter."
GAAP Results
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Q1 2016
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Q4 2015
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Q1 2015
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($ in millions, except per share data)
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Net sales
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$869
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$671
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$743
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Gross margin
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14.1
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%
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15.3
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%
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18.2
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%
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Net income (loss)
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($1
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($10
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$29
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Earnings per diluted share
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$-
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($0.04
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$0.12
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Non-GAAP Results*
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Q1 2016
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Q4 2015
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Q1 2015
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($ in millions, except per share data)
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Net sales
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$869
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$671
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$743
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Gross margin
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14.1
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%
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15.3
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%
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18.2
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%
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Net income (loss)
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($1
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)
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$4
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$29
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Earnings per diluted share
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$-
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$0.02
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$0.12
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EBITDA
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$155
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$131
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$184
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Adjusted EBITDA
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$155
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$145
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$184
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* Fourth quarter 2015 net income and earnings per diluted share exclude
a gain of $16 million related to our previous investments in J-Devices
and a non-cash loss of $30 million relating to the release of a foreign
currency translation adjustment account, for a net loss of $14 million.
The reconciliation to the comparable GAAP measures is included below
under "Selected Operating Data."
In December 2015, Amkor increased its ownership in J-Devices Corporation
from 66% to 100%. As a result, the accounting for J-Devices changed from
the equity method to the consolidation method effective at the time of
acquisition. J-Devices' operating results were consolidated with Amkor
for the first time beginning in the first quarter of 2016.
"Our first quarter revenues were up 30% sequentially with the
consolidation of $217 million of sales from J-Devices," said Joanne
Solomon, Amkor's executive vice president and chief financial officer.
"J-Devices also contributed $0.04 to our earnings per share in the
quarter."
Cash and cash equivalents were $413 million, and total debt was $1.5
billion, at March 31, 2016.
Business Outlook
"Looking ahead, we see improved demand across most end markets in Q2,"
said Kelley. "Unfortunately, we do not expect to realize meaningful
revenue growth in Q2 due to temporary disruptions stemming from the
recent earthquakes in Japan. Our Kumamoto factory was damaged in the
earthquakes and is operating on a limited basis today. Repair work is
being expedited, and we expect to ramp to full operational capacity over
the next 11 weeks. We now expect Q2 revenues of around $875 million,
which reflect roughly $35 million in lower sales due to the impact of
the earthquakes. We also expect to incur incremental costs of around $20
million in Q2 for damaged inventory and repairs to buildings and
equipment. Taking into account insurance payments anticipated later this
year, we expect the net impact on our full year 2016 results to be
modest."
Second quarter 2016 outlook (unless otherwise noted):
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Net sales of $850 million to $900 million, down 2% to up 4% from the
prior quarter
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Gross margin of 10% to 13%
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Net loss of $11 million to $33 million, or ($0.04) to ($0.14) per share
-
Full year 2016 capital expenditures of around $650 million, unchanged
from our previous forecast
Conference Call Information
Amkor will conduct a conference call on Wednesday, April 27, 2016, 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 1-877-645-6380 or
1-404-991-3911. A replay of the call will be made available at Amkor's
website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID
89394810). The webcast is also being distributed over NASDAQ OMX's
investor distribution network to both institutional and individual
investors. Institutional investors can access the call via NASDAQ OMX's
password-protected event management site, Street Events (www.streetevents.com).
About Amkor Technology, Inc.
Amkor Technology, Inc. is one of the world's largest providers of
outsourced semiconductor packaging and test services. Founded in 1968,
Amkor pioneered the outsourcing of IC packaging and test, and is now a
strategic manufacturing partner for more than 250 of the world's leading
semiconductor companies, foundries and electronics OEMs. Amkor's
operating base includes more than 8 million square feet of floor space,
with production facilities, product development centers, and sales and
support offices located in key electronics manufacturing regions in
Asia, Europe and the U.S. For more information, visit www.amkor.com.
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AMKOR TECHNOLOGY, INC.
Selected Operating Data
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Q1 2016
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Q4 2015
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Q1 2015
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Net Sales Data:
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Net sales (in millions):
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Advanced products*
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$
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356
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$
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333
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$
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373
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Mainstream products**
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513
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338
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370
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Total net sales
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$
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869
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$
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671
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$
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743
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Packaging services
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82
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%
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85
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%
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85
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%
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Test services
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18
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%
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15
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%
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15
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%
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Net sales from top ten customers
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67
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%
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64
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%
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60
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%
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Packaged units (in millions):
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Advanced products*
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941
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1,196
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1,188
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Mainstream products**
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3,048
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2,492
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2,671
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Total packaged units
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3,989
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3,688
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3,859
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End Market Distribution Data (an approximation including
representative devices and applications based on a sampling of our
largest customers):
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Communications (smart phones, tablets, handheld devices, wireless
LAN)
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42
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%
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54
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%
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57
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%
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Automotive, industrial and other (infotainment, safety, performance,
comfort)
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25
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%
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15
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%
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11
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%
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Consumer (televisions, set top boxes, gaming, portable media,
digital cameras)
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16
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%
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12
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%
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12
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%
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Networking (servers, routers, switches)
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10
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%
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11
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%
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11
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%
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Computing (PCs, hard disk drives, printers, peripherals, servers)
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7
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%
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8
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%
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9
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%
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Total
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100
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%
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100
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%
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100
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%
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Gross Margin Data:
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Net sales
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100.0
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%
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100.0
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%
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100.0
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%
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Cost of sales:
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Materials
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37.5
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%
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35.8
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%
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36.7
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%
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Labor
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16.2
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%
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15.8
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%
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14.2
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%
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Other manufacturing
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32.2
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%
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33.1
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%
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30.9
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%
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Gross margin
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14.1
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%
|
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15.3
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%
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18.2
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%
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*Advanced products include flip chip and wafer-level processing and
related test services **Mainstream products include wirebond
packaging and related test services
In the press release above we provide non-GAAP net income and non-GAAP
earnings per diluted share. We present these non-GAAP amounts to
demonstrate the impact of the consolidation of J-Devices. 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
U.S. generally accepted accounting principles ("U.S. GAAP"). These
measures have limitations, and should be considered in addition to, and
not as a substitute for, or superior to, net income and earnings per
diluted share prepared in accordance with U.S. GAAP. Below is the
reconciliation of non-GAAP net income and non-GAAP earnings per diluted
share to U.S. GAAP net income and earnings per diluted share.
Non-GAAP Financial Measures Reconciliation:
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Q1 2016
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Q4 2015
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Q1 2015
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(in millions, except per share amounts)
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Net income (loss) attributable to Amkor
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$
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(1
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)
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$
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(10
|
)
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$
|
29
|
Plus: Net loss on acquisition of J-Devices, net of tax
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|
-
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|
14
|
|
|
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|
|
-
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Non-GAAP net income (loss)
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|
|
$
|
(1
|
)
|
|
|
|
|
|
$
|
4
|
|
|
|
|
|
|
$
|
29
|
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Earnings per diluted share
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$
|
-
|
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|
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|
|
$
|
(0.04
|
)
|
|
|
|
|
|
$
|
0.12
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Plus: Net loss on acquisition of J-Devices per diluted share, net of
tax
|
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|
|
-
|
|
|
|
|
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|
0.06
|
|
|
|
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|
|
-
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Non-GAAP earnings per diluted share
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$
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-
|
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|
|
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|
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$
|
0.02
|
|
|
|
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
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In the press release above we provide EBITDA and Adjusted EBITDA, which
are not defined by U.S. GAAP. We define EBITDA as net income before
interest expense, income tax expense and depreciation and amortization.
We believe EBITDA and Adjusted EBITDA to be relevant and useful
information to our investors because they provide additional information
in assessing our financial operating results. Our management uses EBITDA
and Adjusted EBITDA in evaluating our operating performance, our ability
to service debt and our ability to fund capital expenditures. However,
EBITDA and Adjusted EBITDA have certain limitations in that they do not
reflect the impact of certain expenses on our consolidated statements of
income, including interest expense, which is a necessary element of our
costs because we have borrowed money in order to finance our operations,
income tax expense, which is a necessary element of our costs because
taxes are imposed by law, and depreciation and amortization, which is a
necessary element of our costs because we use capital assets to generate
income. EBITDA and Adjusted EBITDA should be considered in addition to,
and not as a substitute for, or superior to, operating income, net
income or other measures of financial performance prepared in accordance
with U.S. GAAP. Furthermore our definition of EBITDA and Adjusted EBITDA
may not be comparable to similarly titled measures reported by other
companies. Below is our reconciliation of EBITDA and Adjusted EBITDA to
U.S. GAAP net income.
Non-GAAP Financial Measures Reconciliation:
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Q1 2016
|
|
|
|
|
|
Q4 2015
|
|
|
|
|
|
Q1 2015
|
|
|
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(in millions)
|
EBITDA Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Amkor
|
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
$
|
(10
|
)
|
|
|
|
|
|
$
|
29
|
Plus: Interest expense
|
|
|
|
17
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
25
|
Plus: Income tax expense
|
|
|
|
2
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
6
|
Plus: Depreciation & amortization
|
|
|
|
137
|
|
|
|
|
|
|
122
|
|
|
|
|
|
|
124
|
EBITDA
|
|
|
|
$
|
155
|
|
|
|
|
|
|
$
|
131
|
|
|
|
|
|
|
$
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Net loss on acquisition of J-Devices
|
|
|
|
-
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
-
|
Adjusted EBITDA
|
|
|
|
$
|
155
|
|
|
|
|
|
|
$
|
145
|
|
|
|
|
|
|
$
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
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|
|
|
2016
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
(In thousands, except per share data)
|
Net sales
|
|
|
|
$
|
868,682
|
|
|
|
|
|
|
|
|
|
$
|
742,875
|
|
Cost of sales
|
|
|
|
745,798
|
|
|
|
|
|
|
|
|
|
607,928
|
|
Gross profit
|
|
|
|
122,884
|
|
|
|
|
|
|
|
|
|
134,947
|
|
Selling, general and administrative
|
|
|
|
73,635
|
|
|
|
|
|
|
|
|
|
62,942
|
|
Research and development
|
|
|
|
27,155
|
|
|
|
|
|
|
|
|
|
18,026
|
|
Total operating expenses
|
|
|
|
100,790
|
|
|
|
|
|
|
|
|
|
80,968
|
|
Operating income
|
|
|
|
22,094
|
|
|
|
|
|
|
|
|
|
53,979
|
|
Interest expense
|
|
|
|
16,192
|
|
|
|
|
|
|
|
|
|
23,777
|
|
Interest expense, related party
|
|
|
|
1,242
|
|
|
|
|
|
|
|
|
|
1,242
|
|
Other (income) expense, net
|
|
|
|
3,192
|
|
|
|
|
|
|
|
|
|
(498
|
)
|
Total other expense, net
|
|
|
|
20,626
|
|
|
|
|
|
|
|
|
|
24,521
|
|
Income before taxes and equity in earnings of unconsolidated
affiliate
|
|
|
|
1,468
|
|
|
|
|
|
|
|
|
|
29,458
|
|
Income tax expense
|
|
|
|
1,873
|
|
|
|
|
|
|
|
|
|
5,999
|
|
Income (loss) before equity in earnings of unconsolidated affiliate
|
|
|
|
(405
|
)
|
|
|
|
|
|
|
|
|
23,459
|
|
Equity in earnings of J-Devices
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
6,238
|
|
Net income (loss)
|
|
|
|
(405
|
)
|
|
|
|
|
|
|
|
|
29,697
|
|
Net income attributable to noncontrolling interests
|
|
|
|
(470
|
)
|
|
|
|
|
|
|
|
|
(916
|
)
|
Net income (loss) attributable to Amkor
|
|
|
|
$
|
(875
|
)
|
|
|
|
|
|
|
|
|
$
|
28,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Amkor per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
$
|
0.12
|
|
Diluted
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing per common share amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
237,025
|
|
|
|
|
|
|
|
|
|
236,708
|
|
Diluted
|
|
|
|
237,025
|
|
|
|
|
|
|
|
|
|
237,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
(In thousands)
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
413,465
|
|
|
|
|
|
|
|
|
|
$
|
523,172
|
|
Restricted cash
|
|
|
|
2,000
|
|
|
|
|
|
|
|
|
|
2,000
|
|
Accounts receivable, net of allowances
|
|
|
|
537,745
|
|
|
|
|
|
|
|
|
|
526,143
|
|
Inventories
|
|
|
|
237,000
|
|
|
|
|
|
|
|
|
|
238,205
|
|
Other current assets
|
|
|
|
29,363
|
|
|
|
|
|
|
|
|
|
27,960
|
|
Total current assets
|
|
|
|
1,219,573
|
|
|
|
|
|
|
|
|
|
1,317,480
|
|
Property, plant and equipment, net
|
|
|
|
2,616,227
|
|
|
|
|
|
|
|
|
|
2,579,017
|
|
Goodwill
|
|
|
|
20,840
|
|
|
|
|
|
|
|
|
|
19,443
|
|
Restricted cash
|
|
|
|
2,222
|
|
|
|
|
|
|
|
|
|
2,176
|
|
Other assets
|
|
|
|
100,292
|
|
|
|
|
|
|
|
|
|
104,346
|
|
Total assets
|
|
|
|
$
|
3,959,154
|
|
|
|
|
|
|
|
|
|
$
|
4,022,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings and current portion of long-term debt
|
|
|
|
$
|
26,183
|
|
|
|
|
|
|
|
|
|
$
|
76,770
|
|
Trade accounts payable
|
|
|
|
407,698
|
|
|
|
|
|
|
|
|
|
434,222
|
|
Capital expenditures payable
|
|
|
|
199,944
|
|
|
|
|
|
|
|
|
|
242,980
|
|
Accrued expenses
|
|
|
|
306,285
|
|
|
|
|
|
|
|
|
|
264,212
|
|
Total current liabilities
|
|
|
|
940,110
|
|
|
|
|
|
|
|
|
|
1,018,184
|
|
Long-term debt
|
|
|
|
1,433,426
|
|
|
|
|
|
|
|
|
|
1,435,269
|
|
Long-term debt, related party
|
|
|
|
75,000
|
|
|
|
|
|
|
|
|
|
75,000
|
|
Pension and severance obligations
|
|
|
|
176,631
|
|
|
|
|
|
|
|
|
|
167,197
|
|
Other non-current liabilities
|
|
|
|
88,820
|
|
|
|
|
|
|
|
|
|
101,679
|
|
Total liabilities
|
|
|
|
2,713,987
|
|
|
|
|
|
|
|
|
|
2,797,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
-
|
|
Common stock
|
|
|
|
283
|
|
|
|
|
|
|
|
|
|
283
|
|
Additional paid-in capital
|
|
|
|
1,884,397
|
|
|
|
|
|
|
|
|
|
1,883,592
|
|
Accumulated deficit
|
|
|
|
(461,025
|
)
|
|
|
|
|
|
|
|
|
(460,150
|
)
|
Accumulated other comprehensive income (loss)
|
|
|
|
17,804
|
|
|
|
|
|
|
|
|
|
(2,084
|
)
|
Treasury stock
|
|
|
|
(213,877
|
)
|
|
|
|
|
|
|
|
|
(213,758
|
)
|
Total Amkor stockholders' equity
|
|
|
|
1,227,582
|
|
|
|
|
|
|
|
|
|
1,207,883
|
|
Noncontrolling interests in subsidiaries
|
|
|
|
17,585
|
|
|
|
|
|
|
|
|
|
17,250
|
|
Total equity
|
|
|
|
1,245,167
|
|
|
|
|
|
|
|
|
|
1,225,133
|
|
Total liabilities and equity
|
|
|
|
$
|
3,959,154
|
|
|
|
|
|
|
|
|
|
$
|
4,022,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
(In thousands)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(405
|
)
|
|
|
|
|
|
|
|
|
$
|
29,697
|
|
Depreciation and amortization
|
|
|
|
137,136
|
|
|
|
|
|
|
|
|
|
124,387
|
|
Other operating activities and non-cash items
|
|
|
|
(3,944
|
)
|
|
|
|
|
|
|
|
|
(9,525
|
)
|
Changes in assets and liabilities
|
|
|
|
5,311
|
|
|
|
|
|
|
|
|
|
20,465
|
|
Net cash provided by operating activities
|
|
|
|
138,098
|
|
|
|
|
|
|
|
|
|
165,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for property, plant and equipment
|
|
|
|
(198,788
|
)
|
|
|
|
|
|
|
|
|
(106,149
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
|
121
|
|
|
|
|
|
|
|
|
|
3,254
|
|
Investment in J-Devices
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
(12,908
|
)
|
Other investing activities
|
|
|
|
(472
|
)
|
|
|
|
|
|
|
|
|
(322
|
)
|
Net cash used in investing activities
|
|
|
|
(199,139
|
)
|
|
|
|
|
|
|
|
|
(116,125
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under revolving credit facilities
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
30,000
|
|
Payments under revolving credit facilities
|
|
|
|
(40,000
|
)
|
|
|
|
|
|
|
|
|
-
|
|
Payments of short-term debt
|
|
|
|
(11,901
|
)
|
|
|
|
|
|
|
|
|
-
|
|
Payments of long-term debt
|
|
|
|
(4,204
|
)
|
|
|
|
|
|
|
|
|
(35,000
|
)
|
Payments for debt issuance costs
|
|
|
|
(156
|
)
|
|
|
|
|
|
|
|
|
-
|
|
Payments for capital lease obligations
|
|
|
|
(401
|
)
|
|
|
|
|
|
|
|
|
-
|
|
Proceeds from the issuance of stock through share-based compensation
plans
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
574
|
|
Payments of tax withholding for restricted shares
|
|
|
|
(119
|
)
|
|
|
|
|
|
|
|
|
(230
|
)
|
Payments of subsidiary dividends to noncontrolling interests
|
|
|
|
(135
|
)
|
|
|
|
|
|
|
|
|
-
|
|
Net cash used in financing activities
|
|
|
|
(56,916
|
)
|
|
|
|
|
|
|
|
|
(4,656
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuations on cash and cash equivalents
|
|
|
|
8,250
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(109,707
|
)
|
|
|
|
|
|
|
|
|
44,243
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
523,172
|
|
|
|
|
|
|
|
|
|
449,946
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
413,465
|
|
|
|
|
|
|
|
|
|
$
|
494,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, statements regarding the impact and recovery from
the recent earthquakes in Japan and all of the other statements made
under "Business Outlook" above. 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:
-
there can be no assurance that our recovery from the recent
earthquakes in Japan will occur as quickly as expected, or that the
actual costs and financial impact will be consistent with our current
expectations, for example due to additional earthquakes, shortages in
labor or supplies for repairs or operations, increased inventory or
repair costs, shortages in customer materials, changes in customer
preferences, demand or loadings, or delays or shortfalls in insurance
payments;
-
there can be no assurance regarding when our new K5 facility in Korea
will be fully utilized, or that the actual scope, costs, timeline or
benefits of the project will be consistent with our current
expectations;
-
the highly unpredictable nature and cyclicality of the semiconductor
industry;
-
timing and volume of orders relative to production capacity and the
inability to achieve high capacity utilization rates, control costs
and improve profitability;
-
volatility of consumer demand, double booking by customers and
deterioration in forecasts from our customers for products
incorporating our semiconductor packages, including any slowdown in
demand or changes in customer forecasts for smartphones or other
mobile devices and generally soft end market demand for electronic
devices;
-
delays, lower manufacturing yields and supply constraints relating to
wafers, particularly for advanced nodes and related technologies;
-
dependence on key customers and the impact of changes in our market
share and prices for our services with those customers;
-
the performance of our business, economic and market conditions, the
cash needs and investment opportunities for the business, the need for
additional capacity and facilities to service customer demand and the
availability of cash flow from operations or financing;
-
the effect of the global economy on credit markets, financial
institutions, customers, suppliers and consumers, including the
uncertain macroeconomic environment;
-
the highly unpredictable nature and costs of litigation and other
legal activities and the risk of adverse results of such matters and
the impact of other legal proceedings;
-
changes in tax rates and taxes as a result of changes in U.S. or
foreign 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 or access to other sources of
liquidity to fund capital expenditures;
-
the effects of an economic slowdown in major economies worldwide,
particularly the recent slowdown in China;
-
disruptions in our business or deficiencies in our controls resulting
from the integration of newly acquired operations, particularly
J-Devices, or the implementation and security of, and changes to, our
enterprise resource planning, factory shop floor systems and other
management information systems;
-
economic effects of terrorist attacks, military conflict and natural
disasters such as the recent earthquakes in Japan;
-
competition, competitive pricing and declines in average selling
prices;
-
fluctuations in manufacturing yields;
-
dependence on international operations and sales and exchange rate
fluctuations;
-
dependence on raw material and equipment suppliers and changes in raw
material and precious metal costs, including any disruptions in the
supply chain resulting from the recent earthquakes in Japan;
-
dependence on key personnel;
-
enforcement of and compliance with 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, 2015 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160427006697/en/
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