Amkor Reports First Quarter 2009 Results

CHANDLER, Ariz.--(Business Wire)--
Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor
assembly and test services, today reported its financial results for the first
quarter ended March 31, 2009.

First quarter net sales of $389 million were down 29% sequentially from the
fourth quarter of 2008 and down 44% from the first quarter of 2008. The first
quarter net loss was $22 million or $0.12 per share compared to a net loss of
$623 million or $3.40 per share in the prior quarter, which included a $671
million goodwill impairment charge. Net income for the first quarter of 2008 was
$72 million, or $0.36 per diluted share.

Commenting on first quarter performance, James Kim, Amkor`s chairman and chief
executive officer, said, "Our sales were adversely impacted by the sharp global
economic downturn and weakness in consumer demand. Based on current customer
forecasts, we expect second quarter 2009 net sales to increase 18% to 22% from
the first quarter of 2009 reflecting customer inventory builds from historically
low first quarter levels. However, there remains significant uncertainty
regarding the full scope and duration of the current downturn, and it is
difficult to predict future results in this very challenging economic
environment."

"Gross margin for the first quarter of 2009 was 12%, and we expect that gross
margin for the second quarter of 2009 will be between 17% and 19%. In the
current environment, we are focused on gross margin and cash flows. Starting in
early 2008, we began implementing wide-ranging, but carefully selected cost
reduction measures to align our cost structure with decreasing levels of demand.
Our first quarter operating results compared to the fourth quarter of 2008
benefited by approximately $55 million from these cost reduction programs,"
added Kim.

Unit shipments were down 33% sequentially while sales declined 29% in the same
period, reflecting a shift in our mix to more advanced packages. Gross margin
for the first quarter of 2009 was 12%, down sequentially from 18% in the fourth
quarter of 2008, reflecting the impact of lower sales volume and a $6 million
charge for workforce reductions. These declines were mitigated partially by the
benefits of the cost reduction initiatives and the strength of the U.S. dollar
against certain foreign currencies.

Selling, general and administrative expenses for the first quarter were
$50million, down 14% from $58 million in the fourth quarter of 2008. The decline
was primarily attributable to reduced executive and other employee compensation
and professional fees, but was partially offset by ERP (Enterprise Resource
Planning) system implementation costs.

"We ended the first quarter with $291 million of cash," said Joanne Solomon,
Amkor`s chief financial officer. "We were free cash flow negative by $106
million in the first quarter primarily as a result of approximately $104 million
of payments relating to the resolution of a patent license dispute and employee
benefit and separation payments. We expect to be free cash flow positive in the
second quarter of 2009."

Commenting on the company`s recent capital market transactions, Solomon said,
"After the quarter, we completed an offering of $250 million principal amount of
6% convertible senior subordinated notes due 2014 and extended our $100 million
senior secured revolving credit facility through April 2013. These actions have
significantly improved our liquidity. We have an aggregate of $113 million of
debt coming due through the end of 2010, and in 2011 the remaining $254 million
of 7.125% senior notes and 2.5% senior subordinated convertible notes mature."

Solomon added, "During the first quarter of 2009, we repurchased $33 million
principal amount of debt due in 2011 and recorded a related $9 million gain in
the first quarter. In April 2009, we used $29 million of the proceeds from the
convertible notes offering to repurchase $35 million principal amount of debt
due in 2011 and expect to record a related $5 million gain in the second
quarter."

"First quarter 2009 capital additions totaled $24 million, which was less than
expected due to the deferment of purchases into the second and third quarters of
2009. Capital additions are expected to be approximately $25 million in the
second quarter of 2009. Because of the significantly reduced level of consumer
demand, capital additions are focused on specific customer requirements,
technology advancements and cost reduction programs. We reaffirm that we are
estimating capital additions for the full year 2009 of approximately $100
million," said Solomon.

Selected operating data for the first quarter of 2009 is included in a section
before the financial tables.

Business Outlook

Limited visibility due to significant uncertainties in the U.S. and global
economies has increased the risk that our actual results may differ from our
expectations. Based upon the latest available information, we have the following
expectations for the second quarter of 2009:

* Sales up 18% to 22% from the first quarter of 2009
* Gross margin between 17% and 19%
* Net loss of $0.04 per share to around break-even

Conference Call Information

Amkor will conduct a conference call on April 29, 2009 at 5:00 p.m. eastern
time. This call is being webcast and can be accessed at Amkor`s web site at
www.amkor.com. You may also access the call by dialing 303-262-2175. A replay of
the call will be made available at Amkor`s web site or by dialing 303-590-3000
(access passcode # 11128705). The webcast is also being distributed over Thomson
Financial`s Investor Distribution Network to both institutional and individual
investors. Individual investors can listen to the call through Thomson Financial
individual investor center at www.companyboardroom.com or by visiting any of the
investor sites in Thomson Financial`s Individual Investor Network. Institutional
investors can access the call via Thomson Financial`s password-protected event
management site, StreetEvents (www.streetevents.com).

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,
statements regarding the following: expectations regarding net sales, gross
margin and free cash flow in the second quarter of 2009; expected gains
associated with debt repurchases; our anticipated level of debt repayment; the
expected dollar amount of our capital additions; and the statements made under
Business Outlook including those regarding sales, gross margin and per share
data. 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: 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 additions; 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; 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.

AMKOR TECHNOLOGY, INC.
Selected Operating Data

Sales Data: Q1 2009 Q4 2008 Q1 2008

Packaging services:
Wirebond - leadframe 27 % 27 % 29 %
Wirebond - laminate 39 % 41 % 40 %
Flip chip and wafer level processing 21 % 20 % 19 %
Packaging services 87 % 88 % 88 %
Test services 13 % 12 % 12 %
Total sales 100 % 100 % 100 %

Packaged units (in millions):
Wirebond - leadframe 887 1,308 1,689
Wirebond - laminate 208 310 336
Flip chip and wafer level processing 85 131 168
Total packaged units 1,180 1,749 2,193

Net sales from top ten customers 51 % 52 % 50 %
Capacity utilization 45 % 61 % 80 %

End Market Distribution Data (an approximation based on a sampling of our largest customers):
Communications 46 % 43 % 41 %
Consumer 29 % 33 % 32 %
Computing 16 % 16 % 17 %
Other 9 % 8 % 10 %
Total 100 % 100 % 100 %

Earnings per Share Data: Q1 2009 Q4 2008 Q1 2008
(in millions, except per share data)

Net (loss) income attributable to Amkor - basic $ (22 ) $ (623 ) $ 72
Adjustment for dilutive securities on net income:
Interest on 2.5% convertible notes due 2011, net of tax - - 1
Interest on 6.25% convertible notes due 2013, net of tax - - 2
Net (loss) income attributable to Amkor - diluted $ (22 ) $ (623 ) $ 75

Weighted average shares outstanding - basic 183 183 182
Effect of dilutive securities:
Stock options - - 1
2.5% convertible notes due 2011 - - 13
6.25% convertible notes due 2013 - - 13
Weighted average shares outstanding - diluted 183 183 209

Net (loss) income attributable to Amkor per common share:
Basic $ (0.12 ) $ (3.40 ) $ 0.40
Diluted $ (0.12 ) $ (3.40 ) $ 0.36

Q1 2009 Q4 2008 Q1 2008
(in millions)

Capital Investment Data:
Property, plant and equipment additions $ 24 $ 32 $ 95
Net change in related accounts payable and deposits 19 37 (6 )
Purchases of property, plant and equipment $ 43 $ 69 $ 89
Depreciation and amortization $ 80 $ 80 $ 74

Free Cash Flow Data:
Net cash (used in) provided by operating activities $ (63 ) $ 149 $ 181
Less purchases of property, plant and equipment (43 ) (69 ) (89 )
Free cash flow* $ (106 ) $ 80 $ 92

*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 generally accepted accounting principles. However, 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, this measure should be considered in addition to, and not as a substitute for, or superior to,
cash flows or other measures of financial performance prepared in accordance with generally accepted accounting principles, and our definition of free cash flow may not be comparable to similarly titled measures reported
by other companies.

AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Three Months
Ended March 31,
2009 2008
(In thousands, except per share data)

Net sales $ 388,776 $ 699,483
Cost of sales 340,737 523,331
Gross profit 48,039 176,152

Operating expenses:
Selling, general and administrative 50,068 65,449
Research and development 10,147 13,856
Total operating expenses 60,215 79,305
Operating (loss) income (12,176 ) 96,847
Other (income) expense:
Interest expense, net 26,145 27,433
Interest expense, related party 1,562 1,563
Foreign currency gain (12,068 ) (9,477 )
Gain on debt retirement, net (8,996 ) -
Other expense (income), net 59 (806 )
Total other expense, net 6,702 18,713
(Loss) income before income taxes (18,878 ) 78,134
Income tax expense 3,081 5,940
Net (loss) income (21,959 ) 72,194
Net income attributable to noncontrolling interests 133 198
Net (loss) income attributable to Amkor $ (22,092 ) $ 71,996

Net (loss) income attributable to Amkor per common share:
Basic $ (0.12 ) $ 0.40
Diluted $ (0.12 ) $ 0.36

Shares used in computing per common share amounts:
Basic 183,035 182,134
Diluted 183,035 209,396

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

March 31, December 31,
2009 2008
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 291,479 $ 424,316
Restricted cash 2,677 4,880
Accounts receivable:
Trade, net of allowances 214,475 259,630
Other 17,755 14,183
Inventories 110,377 134,045
Other current assets 30,463 23,862
Total current assets 667,226 860,916

Property, plant and equipment, net 1,415,144 1,473,763
Intangibles, net 14,433 11,546
Restricted cash 1,657 1,696
Other assets 37,593 36,072
Total assets $ 2,136,053 $ 2,383,993

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt $ 69,364 $ 54,609
Trade accounts payable 176,939 241,684
Accrued expenses 138,790 258,449
Total current liabilities 385,093 554,742

Long-term debt 1,294,656 1,338,751
Long-term debt, related party 100,000 100,000
Pension and severance obligations 116,903 116,789
Other non-current liabilities 29,283 30,548
Total liabilities 1,925,935 2,140,830

Equity:
Amkor stockholders' equity:
Preferred stock - -
Common stock, $0.001 par value, 500,000 shares authorized, issued
and outstanding of 183,035 in 2009 and 2008
183 183
Additional paid-in capital 1,497,755 1,496,976
Accumulated deficit (1,300,313 ) (1,278,221 )
Accumulated other comprehensive income 6,518 18,201
Total Amkor stockholders` equity 204,143 237,139
Noncontrolling interests in subsidiaries 5,975 6,024
Total equity 210,118 243,163
Total liabilities and equity $ 2,136,053 $ 2,383,993

AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Three Months Ended
March 31,
2009 2008
(In thousands)
Cash flows from operating activities:
Net (loss) income $ (21,959 ) $ 72,194
Depreciation and amortization 79,949 73,517
Gain on debt retirement, net (8,996 ) -
Other operating activities and non-cash items 2,943 3,600
Changes in assets and liabilities (115,131 ) 31,905
Net cash (used in) provided by operating activities (63,194 ) 181,216

Cash flows from investing activities:
Purchases of property, plant and equipment (42,821 ) (88,839 )
Proceeds from the sale of property, plant and 144 339
equipment
Other investing activities (3,635 ) (277 )
Net cash used in investing activities (46,312 ) (88,777 )

Cash flows from financing activities:
Borrowings under revolving credit facilities - 619
Proceeds from issuance of short-term debt 15,000 -
Payments for debt issuance costs (2,572 ) -
Payments of long-term debt, net of discount (34,725 ) (101,086 )
Proceeds from issuance of stock through stock compensation plans - 6,088
Net cash used in financing activities (22,297 ) (94,379 )

Effect of exchange rate fluctuations on cash and cash equivalents (1,034 ) 3,583

Net (decrease) increase in cash and cash equivalents (132,837 ) 1,643
Cash and cash equivalents, beginning of period 424,316 410,070
Cash and cash equivalents, end of period $ 291,479 $ 411,713

Amkor Technology, Inc.
Joanne Solomon
Corporate Vice President & CFO
480-821-5000 ext. 5416
jsolo@amkor.com

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