[February 11, 2016] |
|
Amkor Technology Reports Financial Results for the Fourth Quarter and Full Year 2015
Amkor Technology, Inc. (NASDAQ:AMKR), a leading provider of
semiconductor packaging and test services, today announced financial
results for the fourth quarter and full year ended December 31, 2015.
The GAAP financial results for the fourth quarter of 2015 include
certain one-time, non-cash accounting charges related to the increase in
Amkor's ownership interest in J-Devices Corporation to 100% on December
30, 2015. These charges were excluded from Amkor's fourth quarter
guidance and we believe the table "Non-GAAP Results" below provides a
basis for comparing our 2015 operating results with our fourth quarter
guidance and prior periods.
"Fourth quarter results were generally in line with expectations," said
Steve Kelley, Amkor's president and chief executive officer. "Although
2015 was challenging, early in the year we reduced our capital and
operational budgets, which allowed us to generate positive free cash
flow for the year."
"During 2015 we made strong progress in many of our key initiatives,"
added Kelley. "Amkor's advanced System-in-Package (SiP) business is
gaining significant traction and achieved sales of $725 million. These
multi-component, multi-function products demand a variety of high
precision assembly technologies, which leverage Amkor's strengths.
Automotive was also a bright spot for Amkor as sales were up 10%.
Finally, our Greater China Revenues grew 20% and we have significantly
expanded the number of accounts we engage with in the region."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Results
|
|
|
Q4 2015
|
|
|
Q3 2015
|
|
|
Q4 2014
|
|
|
2015
|
|
|
2014
|
|
|
|
($ in millions, except per share amounts)
|
Net sales
|
|
|
$671
|
|
|
$734
|
|
|
$853
|
|
|
$2,885
|
|
|
$3,129
|
Gross margin
|
|
|
15.3%
|
|
|
17.2%
|
|
|
14.1%
|
|
|
16.6%
|
|
|
17.7%
|
Net income
|
|
|
($9)
|
|
|
$28
|
|
|
$13
|
|
|
$58
|
|
|
$130
|
Earnings per diluted share
|
|
|
($0.04)
|
|
|
$0.12
|
|
|
$0.06
|
|
|
$0.24
|
|
|
$0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results*
|
|
|
Q4 2015
|
|
|
Q3 2015
|
|
|
Q4 2014
|
|
|
2015
|
|
|
2014
|
|
|
|
($ in millions, except per share amounts)
|
Net sales
|
|
|
$671
|
|
|
$734
|
|
|
$853
|
|
|
$2,885
|
|
|
$3,129
|
Gross margin
|
|
|
15.3%
|
|
|
17.2%
|
|
|
22.9%
|
|
|
16.6%
|
|
|
20.1%
|
Net income
|
|
|
$5
|
|
|
$28
|
|
|
$90
|
|
|
$81
|
|
|
$190
|
Earnings per diluted share
|
|
|
$0.02
|
|
|
$0.12
|
|
|
$0.38
|
|
|
$0.34
|
|
|
$0.81
|
EBITDA
|
|
|
$132
|
|
|
$187
|
|
|
$175
|
|
|
$666
|
|
|
$739
|
Adjusted EBITDA
|
|
|
$146
|
|
|
$187
|
|
|
$250
|
|
|
$689
|
|
|
$796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Fourth quarter and full year 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. Full year 2015 net income and earnings per diluted share
exclude a charge of $9 million for the early extinguishment of debt
related to the redemption of our 7.375% Senior Notes due 2018. Fourth
quarter and full year 2014 gross margin exclude charges of $75 million
and net income and earnings per diluted share exclude charges of $77
million and $78 million, net of tax, respectively, relating to the
settlement of our litigation with Tessera. Full year 2014 net income and
earnings per diluted share also exclude the gain on the sale of our
subsidiary to J-Devices of $18 million, net of tax. The reconciliation
to the comparable GAAP measures is included below under "Selected
Operating Data."
In December, Amkor increased its ownership in J-Devices Corporation from
66% to 100% through the exercise of existing options. J-Devices was
formed in 2009 as a joint venture to acquire the assembly and test
operations of Toshiba. Since that time, it has experienced considerable
growth through a number of acquisitions involving other large
semiconductor companies in Japan. J-Devices is now the largest
outsourced semiconductor assembly and test (OSAT) provider in Japan and
the sixth largest in the world. Using the latest wire bond assembly and
test technologies, J-Devices specializes in producing high quality and
reliable semiconductor packages for the exacting standards of the
automotive end market.
"The purchase of the remaining interest in J-Devices has been part of
our long term strategic plan to strengthen our relationships with the
key semiconductor companies in Japan and enhance our position in the
rapidly growing automotive market," continued Kelley. "As a result,
Amkor is now the world's largest OSAT provider for automotive ICs, with
around $750 million in combined automotive application revenue. We
believe that consolidating J-Devices with Amkor will facilitate the
acceleration of synergies and cost savings across the organization."
Amkor has invested an aggregate of $202 million since 2009 to acquire
its 100% interest in J-Devices, and this investment has generated $84
million of equity in earnings for Amkor through December 31, 2015. For
the year ended December 31, 2015, J-Devices had revenues of $813
million, EBITDA of $114 million and net income of $30 million. Cash and
cash equivalents were $128 million and total debt was $56 million for
J-Devices at December 31, 2015. Amkor's balance sheet at December 31,
2015 reflects the consolidation of J-Devices, and the operating results
of J-Devices will be consolidated beginning in 2016. The reconciliation
to the comparable GAAP measure for EBITDA is included below under
"Selected Operating Data."
Cash and cash equivalents were $523 million, and total debt was $1.6
billion, at December 31, 2015.
Business Outlook
"Market conditions in Q1 remain sluggish, with particular weakness in
the high-end smartphone market," said Kelley. "Despite challenging
market conditions, we expect that Q1 revenues will increase 21%
sequentially, driven by incremental revenue from J-Devices. At this
time, we expect full year 2016 capital expenditures of around $650
million."
Based upon currently available information, we have the following
expectations for the first quarter 2016, which will include J-Devices'
operating results:
-
Net sales of $785 million to $835 million, up 17% to 25% from the
prior quarter
-
Gross margin of 9% to 13%
-
Net loss of ($37) million to ($7) million, or ($0.15) to ($0.03) per
diluted share
Conference Call Information
Amkor will conduct a conference call on Thursday, February 11, 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
39845912). 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
Amkor Technology Inc. is one of the world's largest providers of
semiconductor packaging and test services. Founded in 1968, Amkor
pioneered the outsourcing of IC assembly 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
operational base encompasses more than 7 million square feet of floor
space with production facilities, product development centers and sales
& support offices located in key electronics manufacturing regions in
Asia, Europe and the USA. For more information visit www.amkor.com.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
Selected Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2015
|
|
|
Q3 2015
|
|
|
Q4 2014
|
|
|
2015
|
|
|
2014
|
|
Net Sales Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced products*
|
|
$
|
333
|
|
|
|
$
|
365
|
|
|
|
$
|
462
|
|
|
|
$
|
1,433
|
|
|
|
$
|
1,553
|
|
|
Mainstream products**
|
|
338
|
|
|
|
369
|
|
|
|
391
|
|
|
|
1,452
|
|
|
|
1,576
|
|
|
Total net sales
|
|
$
|
671
|
|
|
|
$
|
734
|
|
|
|
$
|
853
|
|
|
|
$
|
2,885
|
|
|
|
$
|
3,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Packaging services
|
|
85
|
|
%
|
|
85
|
|
%
|
|
85
|
|
%
|
|
85
|
|
%
|
|
85
|
|
%
|
Test services
|
|
15
|
|
%
|
|
15
|
|
%
|
|
15
|
|
%
|
|
15
|
|
%
|
|
15
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales from top ten customers
|
|
64
|
|
%
|
|
61
|
|
%
|
|
64
|
|
%
|
|
63
|
|
%
|
|
61
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Packaged units (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced products*
|
|
1,196
|
|
|
|
1,305
|
|
|
|
1,174
|
|
|
|
4,965
|
|
|
|
3,776
|
|
|
Mainstream products**
|
|
2,492
|
|
|
|
2,750
|
|
|
|
3,001
|
|
|
|
10,616
|
|
|
|
13,112
|
|
|
Total packaged units
|
|
3,688
|
|
|
|
4,055
|
|
|
|
4,175
|
|
|
|
15,581
|
|
|
|
16,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End Market Distribution Data (an approximation including
representative devices and applications based on a sampling of our
largest customers):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications (smart phones, tablets, handheld devices, wireless
LAN)
|
|
54
|
|
%
|
|
55
|
|
%
|
|
60
|
|
%
|
|
55
|
|
%
|
|
56
|
|
%
|
Automotive, industrial and other (infotainment, safety, performance,
comfort)
|
|
15
|
|
%
|
|
13
|
|
%
|
|
10
|
|
%
|
|
14
|
|
%
|
|
11
|
|
%
|
Consumer (television, set top boxes, gaming, portable media, digital
cameras)
|
|
12
|
|
%
|
|
12
|
|
%
|
|
11
|
|
%
|
|
12
|
|
%
|
|
13
|
|
%
|
Networking (servers, routers, switches)
|
|
11
|
|
%
|
|
12
|
|
%
|
|
10
|
|
%
|
|
11
|
|
%
|
|
11
|
|
%
|
Computing (PCs, hard disk drive, printers, peripherals, servers)
|
|
8
|
|
%
|
|
8
|
|
%
|
|
9
|
|
%
|
|
8
|
|
%
|
|
9
|
|
%
|
Total
|
|
100
|
|
%
|
|
100
|
|
%
|
|
100
|
|
%
|
|
100
|
|
%
|
|
100
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
100.0
|
|
%
|
|
100.0
|
|
%
|
|
100.0
|
|
%
|
|
100.0
|
|
%
|
|
100.0
|
|
%
|
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Materials
|
|
35.8
|
|
%
|
|
36.8
|
|
%
|
|
36.0
|
|
%
|
|
36.6
|
|
%
|
|
36.8
|
|
%
|
Labor
|
|
15.8
|
|
%
|
|
14.9
|
|
%
|
|
13.2
|
|
%
|
|
15.1
|
|
%
|
|
14.0
|
|
%
|
Other manufacturing
|
|
33.1
|
|
%
|
|
31.1
|
|
%
|
|
27.9
|
|
%
|
|
31.7
|
|
%
|
|
29.1
|
|
%
|
Litigation settlement
|
|
-
|
|
%
|
|
-
|
|
%
|
|
8.8
|
|
%
|
|
-
|
|
%
|
|
2.4
|
|
%
|
Gross margin
|
|
15.3
|
|
%
|
|
17.2
|
|
%
|
|
14.1
|
|
%
|
|
16.6
|
|
%
|
|
17.7
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Advanced products include flip chip and wafer-level processing and
related test services
|
**Mainstream products include wirebond packaging and related test
services
|
|
|
AMKOR TECHNOLOGY, INC.
Selected Operating Data
In the press release above we provide non-GAAP net income and non-GAAP
earnings per diluted share for the quarter and year ended December 31,
2015. We also provide non-GAAP gross margin, non-GAAP net income and
non-GAAP earnings per diluted share for the quarter and year ended
December 31, 2014. We present these non-GAAP amounts to demonstrate the
impact of the consolidation of J-Devices, the sale of our subsidiary to
J-Devices, the early extinguishment of debt and the charges we
recognized related to the settlement of our litigation with Tessera.
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, including that they exclude the
charges for the settlement payments, which are amounts that the company
will ultimately have to pay in cash, and should be considered in
addition to, and not as a substitute for, or superior to, gross margin,
net income and earnings per diluted share prepared in accordance with
U.S. GAAP. Below is the reconciliation of non-GAAP gross margin,
non-GAAP net income and non-GAAP earnings per diluted share to U.S. GAAP
gross margin, net income and earnings per diluted share.
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2015
|
|
|
|
Q4 2014
|
|
2015
|
|
2014
|
|
|
(in millions, except per share amounts)
|
Gross margin
|
|
|
|
|
|
14.1
|
%
|
|
|
|
17.7
|
%
|
Plus: Litigation settlement charges divided by net sales
|
|
|
|
|
|
8.8
|
%
|
|
|
|
2.4
|
%
|
Non-GAAP gross margin
|
|
|
|
|
|
22.9
|
%
|
|
|
|
20.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
(9
|
)
|
|
|
|
$
|
13
|
|
|
$
|
58
|
|
|
$
|
130
|
|
Plus: Litigation settlement charges, net of tax
|
|
-
|
|
|
|
|
77
|
|
|
-
|
|
|
78
|
|
Plus: Net loss on acquisition of J-Devices, net of tax
|
|
14
|
|
|
|
|
-
|
|
|
14
|
|
|
-
|
|
Plus: Loss on early extinguishment of debt, net of tax
|
|
-
|
|
|
|
|
-
|
|
|
9
|
|
|
-
|
|
Less: Gain on sale of subsidiary to J-Devices, net of tax
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
(18
|
)
|
Non-GAAP net income
|
|
$
|
5
|
|
|
|
|
$
|
90
|
|
|
$
|
81
|
|
|
$
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
0.06
|
|
|
$
|
0.24
|
|
|
$
|
0.55
|
|
Plus: Litigation settlement charges per diluted share, net of tax
|
|
-
|
|
|
|
|
0.32
|
|
|
-
|
|
|
0.33
|
|
Plus: Net loss on acquisition of J-Devices per diluted share, net of
tax
|
|
0.06
|
|
|
|
|
-
|
|
|
0.06
|
|
|
-
|
|
Plus: Loss on early extinguishment of debt per diluted share, net of
tax
|
|
-
|
|
|
|
|
-
|
|
|
0.04
|
|
|
-
|
|
Less: Gain on sale of subsidiary to J-Devices per diluted share, net
of tax
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
(0.07
|
)
|
Non-GAAP earnings per diluted share
|
|
$
|
0.02
|
|
|
|
|
$
|
0.38
|
|
|
$
|
0.34
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
Selected Operating Data
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2015
|
|
Q3 2015
|
|
Q4 2014
|
|
2015
|
|
2014
|
|
|
(in millions)
|
EBITDA Data:
|
|
|
|
|
|
|
|
|
|
|
J-Devices' net income
|
|
|
|
|
|
|
|
$
|
30
|
|
|
|
Plus: Interest expense
|
|
|
|
|
|
|
|
1
|
|
|
|
Plus: Income tax expense
|
|
|
|
|
|
|
|
13
|
|
|
|
Plus: Depreciation & amortization
|
|
|
|
|
|
|
|
70
|
|
|
|
J-Devices' EBITDA
|
|
|
|
|
|
|
|
$
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amkor's net (loss) income
|
|
$
|
(9
|
)
|
|
$
|
28
|
|
|
$
|
13
|
|
|
$
|
58
|
|
|
$
|
130
|
|
Plus: Interest expense
|
|
18
|
|
|
19
|
|
|
36
|
|
|
86
|
|
|
110
|
|
Plus: Income tax expense
|
|
1
|
|
|
17
|
|
|
1
|
|
|
28
|
|
|
34
|
|
Plus: Depreciation & amortization
|
|
122
|
|
|
123
|
|
|
125
|
|
|
494
|
|
|
465
|
|
Amkor's EBITDA
|
|
$
|
132
|
|
|
$
|
187
|
|
|
$
|
175
|
|
|
$
|
666
|
|
|
$
|
739
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Cost of goods sold portion of litigation settlement charges
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
75
|
|
|
$
|
-
|
|
|
$
|
75
|
|
Plus: Net loss on acquisition of J-Devices
|
|
14
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
-
|
|
Plus: Loss on early extinguishment of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
|
-
|
|
Less: Gain on sale of subsidiary to J-Devices
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(18
|
)
|
Amkor's Adjusted EBITDA
|
|
$
|
146
|
|
|
$
|
187
|
|
|
$
|
250
|
|
|
$
|
689
|
|
|
$
|
796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the press release above we refer to free cash flow, which is not
defined by U.S. GAAP. We define free cash flow as net cash provided by
operating activities less payments for property, plant and equipment. 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
expenditures. 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. Below is our reconciliation
of free cash flow to U.S. GAAP net cash provided by operating activities.
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2015
|
|
Q3 2015
|
|
Q4 2014
|
|
2015
|
|
2014
|
|
|
(in millions)
|
Free Cash Flow Data:
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
154
|
|
|
$
|
195
|
|
|
$
|
208
|
|
|
$
|
578
|
|
|
$
|
614
|
|
Less purchases of property, plant and equipment
|
|
(185
|
)
|
|
(158
|
)
|
|
(239
|
)
|
|
(538
|
)
|
|
(681
|
)
|
Free cash flow
|
|
$
|
(31
|
)
|
|
$
|
37
|
|
|
$
|
(31
|
)
|
|
$
|
40
|
|
|
$
|
(67
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(In thousands, except per share data)
|
Net sales
|
|
$
|
670,644
|
|
|
$
|
853,113
|
|
|
$
|
2,884,603
|
|
|
$
|
3,129,440
|
|
Cost of sales
|
|
568,024
|
|
|
733,042
|
|
|
2,405,338
|
|
|
2,576,618
|
|
Gross profit
|
|
102,620
|
|
|
120,071
|
|
|
479,265
|
|
|
552,822
|
|
Selling, general and administrative
|
|
58,045
|
|
|
62,800
|
|
|
231,654
|
|
|
254,498
|
|
Research and development
|
|
22,898
|
|
|
17,303
|
|
|
82,017
|
|
|
76,864
|
|
Total operating expenses
|
|
80,943
|
|
|
80,103
|
|
|
313,671
|
|
|
331,362
|
|
Operating income
|
|
21,677
|
|
|
39,968
|
|
|
165,594
|
|
|
221,460
|
|
Interest expense
|
|
17,090
|
|
|
34,917
|
|
|
81,407
|
|
|
104,956
|
|
Interest expense, related party
|
|
1,242
|
|
|
1,242
|
|
|
4,969
|
|
|
4,969
|
|
Other (income) expense, net
|
|
15,712
|
|
|
(9,254
|
)
|
|
10,928
|
|
|
(24,543
|
)
|
Total other expense, net
|
|
34,044
|
|
|
26,905
|
|
|
97,304
|
|
|
85,382
|
|
(Loss) income before taxes and equity in earnings of unconsolidated
affiliate
|
|
(12,367
|
)
|
|
13,063
|
|
|
68,290
|
|
|
136,078
|
|
Income tax expense
|
|
837
|
|
|
1,420
|
|
|
28,035
|
|
|
33,845
|
|
(Loss) income before equity in earnings of unconsolidated affiliate
|
|
(13,204
|
)
|
|
11,643
|
|
|
40,255
|
|
|
102,233
|
|
Equity in earnings of J-Devices
|
|
4,647
|
|
|
2,485
|
|
|
20,107
|
|
|
31,654
|
|
Net (loss) income
|
|
(8,557
|
)
|
|
14,128
|
|
|
60,362
|
|
|
133,887
|
|
Net income attributable to noncontrolling interests
|
|
(409
|
)
|
|
(993
|
)
|
|
(2,795
|
)
|
|
(3,501
|
)
|
Net (loss) income attributable to Amkor
|
|
$
|
(8,966
|
)
|
|
$
|
13,135
|
|
|
$
|
57,567
|
|
|
$
|
130,386
|
|
|
|
|
|
|
|
|
|
|
Net (loss)income attributable to Amkor per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.04
|
)
|
|
$
|
0.06
|
|
|
$
|
0.24
|
|
|
$
|
0.56
|
|
Diluted
|
|
$
|
(0.04
|
)
|
|
$
|
0.06
|
|
|
$
|
0.24
|
|
|
$
|
0.55
|
|
Shares used in computing per common share amounts:
|
|
|
|
|
|
|
|
|
Basic
|
|
236,961
|
|
|
236,578
|
|
|
236,850
|
|
|
230,710
|
|
Diluted
|
|
236,961
|
|
|
236,937
|
|
|
237,170
|
|
|
236,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
|
(In thousands)
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
523,172
|
|
|
$
|
449,946
|
|
Restricted cash
|
|
2,000
|
|
|
2,681
|
|
Accounts receivable, net of allowances
|
|
526,143
|
|
|
469,683
|
|
Inventories
|
|
238,205
|
|
|
223,379
|
|
Other current assets
|
|
27,960
|
|
|
52,259
|
|
Total current assets
|
|
1,317,480
|
|
|
1,197,948
|
|
Property, plant and equipment, net
|
|
2,579,017
|
|
|
2,206,476
|
|
Goodwill
|
|
19,443
|
|
|
-
|
|
Investments
|
|
-
|
|
|
117,733
|
|
Restricted cash
|
|
2,176
|
|
|
2,123
|
|
Other assets
|
|
113,184
|
|
|
111,125
|
|
Total assets
|
|
$
|
4,031,300
|
|
|
$
|
3,635,405
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Short-term borrowings and current portion of long-term debt
|
|
$
|
76,770
|
|
|
$
|
5,000
|
|
Trade accounts payable
|
|
434,222
|
|
|
309,025
|
|
Capital expenditures payable
|
|
242,980
|
|
|
127,568
|
|
Accrued expenses
|
|
263,457
|
|
|
258,997
|
|
Total current liabilities
|
|
1,017,429
|
|
|
700,590
|
|
Long-term debt
|
|
1,444,107
|
|
|
1,450,824
|
|
Long-term debt, related party
|
|
75,000
|
|
|
75,000
|
|
Pension and severance obligations
|
|
167,197
|
|
|
152,673
|
|
Other non-current liabilities
|
|
101,679
|
|
|
125,382
|
|
Total liabilities
|
|
2,805,412
|
|
|
2,504,469
|
|
|
|
|
|
|
Amkor stockholders' equity:
|
|
|
|
|
Preferred stock
|
|
-
|
|
|
-
|
|
Common stock
|
|
283
|
|
|
282
|
|
Additional paid-in capital
|
|
1,883,592
|
|
|
1,878,810
|
|
Accumulated deficit
|
|
(459,395
|
)
|
|
(516,962
|
)
|
Accumulated other comprehensive loss
|
|
(2,084
|
)
|
|
(32,867
|
)
|
Treasury stock
|
|
(213,758
|
)
|
|
(213,028
|
)
|
Total Amkor stockholders' equity
|
|
1,208,638
|
|
|
1,116,235
|
|
Noncontrolling interests in subsidiaries
|
|
17,250
|
|
|
14,701
|
|
Total equity
|
|
1,225,888
|
|
|
1,130,936
|
|
Total liabilities and equity
|
|
$
|
4,031,300
|
|
|
$
|
3,635,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
For the Year Ended
|
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
|
(In thousands)
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
60,362
|
|
|
$
|
133,887
|
|
Depreciation and amortization
|
|
494,200
|
|
|
464,706
|
|
Loss on debt retirement
|
|
2,530
|
|
|
-
|
|
Loss from acquisition of J-Devices
|
|
13,878
|
|
|
-
|
|
Gain on sale of subsidiary to J-Devices
|
|
-
|
|
|
(9,155
|
)
|
Other operating activities and non-cash items
|
|
(10,083
|
)
|
|
(40,762
|
)
|
Changes in assets and liabilities
|
|
17,058
|
|
|
65,233
|
|
Net cash provided by operating activities
|
|
577,945
|
|
|
613,909
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Payments for property, plant and equipment
|
|
(537,975
|
)
|
|
(681,120
|
)
|
Proceeds from sale of property, plant and equipment
|
|
6,945
|
|
|
2,815
|
|
Cash received from business acquisition of J-Devices, net
|
|
22,577
|
|
|
-
|
|
Cash received (transferred) on sale of subsidiary to J-Devices, net
|
|
8,355
|
|
|
(15,774
|
)
|
Investment in J-Devices
|
|
(12,908
|
)
|
|
-
|
|
Other investing activities
|
|
(1,356
|
)
|
|
(399
|
)
|
Net cash used in investing activities
|
|
(514,362
|
)
|
|
(694,478
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings under revolving credit facilities
|
|
290,000
|
|
|
-
|
|
Payments under revolving credit facilities
|
|
(150,000
|
)
|
|
-
|
|
Proceeds from issuance of long-term debt
|
|
400,000
|
|
|
80,000
|
|
Payments of long-term debt
|
|
(530,000
|
)
|
|
(145,000
|
)
|
Payments for debt issuance costs
|
|
(312
|
)
|
|
(903
|
)
|
Payment of deferred consideration for an acquisition
|
|
-
|
|
|
(18,763
|
)
|
Proceeds from issuance of stock through share-based compensation
plans
|
|
931
|
|
|
6,250
|
|
Payments of tax withholding for restricted shares
|
|
(730
|
)
|
|
(1,579
|
)
|
Payments of subsidiary dividends to noncontrolling interests
|
|
(246
|
)
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
9,643
|
|
|
(79,995
|
)
|
|
|
|
|
|
Effect of exchange rate fluctuations on cash and cash equivalents
|
|
-
|
|
|
68
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
73,226
|
|
|
(160,496
|
)
|
Cash and cash equivalents, beginning of period
|
|
449,946
|
|
|
610,442
|
|
Cash and cash equivalents, end of period
|
|
$
|
523,172
|
|
|
$
|
449,946
|
|
|
|
|
|
|
|
|
|
|
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 our gaining market share in
Japan and enhancing our SiP business, position in the automotive market,
realizing synergies and cost savings from the acquisition of J-Devices
and all of the 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 new factory and research and
development center in Korea will be completed, 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 additions;
-
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, natural disasters and military
conflict;
-
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;
-
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, 2014 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/20160211006444/en/
[ Back To TMCnet.com's Homepage ]
|