Amkor Technology, Inc. (NASDAQ: AMKR) today updated certain financial
information regarding the first quarter ending March 31, 2009.
Amkor reported that first quarter net sales are tracking to a sequential
decline of 30% to 34% from the quarter ended December 31, 2008, which is
within the favorable end of the range of the company’s previously
announced guidance.
The company also noted that gross margin for the first quarter is
expected to be 8% to 12% of net sales, which is above its previously
announced range of 5% to a negative 2%. Gross margin for the first
quarter is expected to benefit from reductions in labor and other costs
and foreign government subsidies of employee wages, as well as the
strength of the U.S. Dollar against certain foreign currencies. However,
gross margin is affected by a number of estimates and other factors
which will be reviewed after the end of the quarter and the final gross
margin for the first quarter could vary from our current estimate.
Amkor estimates that its current global cash balance has declined to
approximately $275 million, reflecting payments relating to a patent
license dispute, employee benefit and severance payments and the
repurchase of outstanding notes due in 2011.
It is too early for the company to provide other 2009 first quarter
financial information and therefore, it is neither updating nor
reaffirming its prior guidance regarding net income.
About Amkor
Amkor is a leading provider of semiconductor assembly and test services.
The company offers semiconductor companies and electronics OEMs a
complete set of microelectronics design and manufacturing services. More
information on Amkor is available from the company’s SEC filings and on
Amkor’s website: www.amkor.com.
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, the following: statements regarding our expectations
for net sales, gross margin, cash flow and the expected benefits from
strengthening of the U.S. dollar, temporary foreign government subsidies
of employee wages and reductions in labor and other costs. These
forward-looking statements contain estimates and 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: the completion of the first quarter and the outcome of
Amkor’s final accounting and review of financial results, the highly
unpredictable nature of the semiconductor industry; deteriorating market
conditions; the effect of the financial crisis on credit markets,
financial institutions, customers, suppliers and consumers; inability to
achieve high capacity utilization rates; volatility of consumer demand
for products incorporating our semiconductor packages; weakness in the
forecasts of Amkor’s customers; customer modification of and follow
through with respect to forecasts provided to Amkor; curtailment of
outsourcing by our customers; our substantial indebtedness and
restrictive covenants; failure to realize sufficient cash flow to fund
capital expenditures; the effects of a recession in the U.S. and other
economies worldwide; the highly unpredictable nature and costs of
litigation and other legal activities and the risk of adverse results of
such matters; the outcome of the pending SEC investigation; worldwide
economic effects of terrorist attacks, natural disasters and military
conflict; our ability to reduce costs, and control capital spending,
make prudent investments in technology and maintain pricing discipline;
competitive pricing and declines in average selling prices; timing and
volume of orders relative to production capacity; fluctuations in
manufacturing yields; competition; dependence on international
operations and sales; dependence on raw material and equipment suppliers
and changes in raw material costs; exchange rate fluctuations;
dependence on key personnel; difficulties in managing growth;
enforcement of 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, 2008 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.
