Amkor Technology (AMKR) 8-K Amkor Reports Second Quarter 2009 Results

Exhibit 99.1

News Release

Amkor Reports Second Quarter 2009 Results

CHANDLER, Ariz. — July 29, 2009— Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor assembly and test services, today reported its financial results for the quarter ended June 30, 2009.

Second quarter net sales of $507 million were up 30% sequentially from the first quarter of 2009 and down 27% from the second quarter of 2008. Second quarter net income was $9 million or $0.05 per diluted share, compared to a net loss of $22 million or $0.12 per share in the first quarter. Net income for the second quarter of 2008 was $65 million, or $0.33 per diluted share.

“I am pleased with our second quarter performance in a very difficult economic environment,” commented James Kim, Amkor’s chairman and chief executive officer. “Our strategy of managing and aligning costs with customer demand is working. We achieved gross margin of 20% for the quarter, up sequentially from 12% in the first quarter of 2009, despite a $7 million charge to exit our manufacturing operations in Singapore. At the same time, we continued our disciplined approach in making capital spending decisions, which allowed us to generate free cash flow and strengthen our cash position.”

“We are seeing improvement in customer demand for the second half of 2009. Based on current customer forecasts, we expect third quarter 2009 net sales to increase 17% to 21% from the second quarter of 2009, reflecting higher than typical seasonal growth, and gross margin of 23% to 25%,” added Kim.

“Overall unit shipments were up 43% sequentially with advanced laminate and flip chip packages up nearly 60%,” said Ken Joyce, Amkor’s president and chief operating officer. “Net sales grew 30% driven by inventory adjustments by customers from historically low levels in the first quarter, strength of 3D packaging principally in support of wireless applications and improved demand for our leadframe packages.”

“We generated $69 million in free cash flow in the second quarter and ended the quarter with a cash balance of $455 million and total debt of just under $1.6 billion,” said Joanne Solomon, Amkor’s chief financial officer. “We used $135 million of the proceeds from our recent $250 million convertible note offering to repurchase $144 million principal amount of debt due in 2011 and recorded a related $8 million net gain. We have an aggregate of $97 million of debt coming due through the end of 2010, and the remaining $144 million of 7.125% notes and 2.5% convertible notes mature in 2011.”

“Second quarter 2009 capital additions were $27 million. We expect capital additions for the third quarter to be approximately $70 million and we are increasing our estimated capital additions for the full year 2009 to approximately $150 million. Our planned capital additions are primarily related to expanding our wafer bumping capacity in support of advanced interconnect technologies in response to increased level of customer demand,” said Solomon.

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

Business Outlook

Based upon the latest available information, we have the following expectations for the third quarter of 2009:

• Net sales up 17% to 21% from the second quarter of 2009

• Gross margin between 23% and 25%

• Net income — in the range of $0.17 to $0.22 per diluted share

Conference Call Information

Amkor will conduct a conference call on July 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 877-941-9205. A replay of the call will be made available at Amkor’s web site or by dialing 800-406-7325 (access passcode # 4108562). 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 and gross margin in the third quarter of 2009; customer demand for the second half of 2009; plans to exit our manufacturing operations in Singapore; the expected dollar amount of our capital additions; and the statements made under Business Outlook including those regarding net sales, gross margin and net income. 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; the effect of the global economy 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.

Contact:
  Joanne Solomon
  Corporate Vice President & CFO
  480-821-5000 ext. 5416
  jsolo@amkor.com

AMKOR TECHNOLOGY, INC.

Selected Operating Data

Sales Data:	Q2 2009			Q1 2009			Q2 2008
Packaging services:
Wirebond — leadframe		25	%		27	%		28	%
Wirebond — laminate		43	%		39	%		40	%
Flip chip and wafer level processing		20	%		21	%		20	%
Packaging services		88	%		87	%		88	%
Test services		12	%		13	%		12	%
Total sales		100	%		100	%		100	%
Packaged units (in millions):
Wirebond — leadframe		1,229			887			1,638
Wirebond — laminate		330			208			339
Flip chip and wafer level processing		134			85			141
Total packaged units		1,693			1,180			2,118
Net sales from top ten customers		54	%		51	%		49	%
Capacity utilization		66	%		45	%		73	%
End Market Distribution Data(an approximation based on a sampling of our largest customers):
Communications		49	%		46	%		42	%
Consumer		30	%		29	%		32	%
Computing		14	%		16	%		16	%
Other		7	%		9	%		10	%
Total		100	%		100	%		100	%

Earnings per Share Data:	Q2 2009		Q1 2009			Q2 2008
	(in millions, except per share data)
Net income (loss) attributable to Amkor — basic	$	9	$	(22	)	$	65
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
Interest on 6.0% convertible notes due 2014, net of tax		4		—			—
Net income (loss) attributable to Amkor — diluted	$	13	$	(22	)	$	68
Weighted average shares outstanding — basic		183		183			183
Effect of dilutive securities:
Stock options		—		—			1
2.5% convertible notes due 2011		—		—			13
6.25% convertible notes due 2013		—		—			13
6.0% convertible notes due 2014		83		—			—
Weighted average shares outstanding — diluted		266		183			210
Net income (loss) attributable to Amkor per common share:
Basic	$	0.05	$	(0.12	)	$	0.36
Diluted	$	0.05	$	(0.12	)	$	0.33

AMKOR TECHNOLOGY, INC.

Selected Operating Data (continued)

	Q2 2009			Q1 2009			Q2 2008
	(in millions)
Capital Investment Data:
Property, plant and equipment additions	$	27		$	24		$	122
Net change in related accounts payable and deposits		—			19			(20	)
Purchases of property, plant and equipment	$	27		$	43		$	102
Depreciation and amortization	$	77		$	80		$	77
Free Cash Flow Data:
Net cash provided by (used in) operating activities	$	96		$	(63	)	$	103
Less purchases of property, plant and equipment		(27	)		(43	)		(102	)
Free cash flow*	$	69		$	(106	)	$	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 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						For the Six Months
	Ended June 30,						Ended June 30,
	2009			2008			2009			2008
	(In thousands, except per share data)
Net sales	$	506,516		$	690,676		$	895,292		$	1,390,159
Cost of sales		404,129			531,745			744,866			1,055,076
Gross profit		102,387			158,931			150,426			335,083
Operating expenses:
Selling, general and administrative		52,445			67,441			102,513			132,890
Research and development		10,035			15,095			20,182			28,951
Gain on sale of real estate		—			(9,856	)		—			(9,856	)
Total operating expenses		62,480			72,680			122,695			151,985
Operating income		39,907			86,251			27,731			183,098
Other (income) expense:
Interest expense, net		26,826			26,314			52,971			53,747
Interest expense, related party		3,812			1,562			5,374			3,125
Foreign currency loss (gain)		5,970			(11,597	)		(6,098	)		(21,074	)
Gain on debt retirement, net		(7,888	)		—			(16,884	)		—
Other (income) expense, net		(10	)		107			49			(699	)
Total other expense, net		28,710			16,386			35,412			35,099
Income (loss) before income taxes		11,197			69,865			(7,681	)		147,999
Income tax expense		1,833			4,298			4,914			10,238
Net income (loss)		9,364			65,567			(12,595	)		137,761
Net income attributable to noncontrolling interests		141			335			274			533
Net income (loss) attributable to Amkor	$	9,223		$	65,232		$	(12,869	)	$	137,228
Net income (loss) attributable to Amkor per common share:
Basic	$	0.05		$	0.36		$	(0.07	)	$	0.75
Diluted	$	0.05		$	0.33		$	(0.07	)	$	0.68
Shares used in computing per common share amounts:
Basic		183,036			182,759			183,036			182,446
Diluted		265,846			210,138			183,036			209,785

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	June 30,			December 31,
	2009			2008
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	455,294		$	424,316
Restricted cash		2,678			4,880
Accounts receivable:
Trade, net of allowances		264,440			259,630
Other		16,924			14,183
Inventories		118,072			134,045
Other current assets		25,483			23,862
Total current assets		882,891			860,916
Property, plant and equipment, net		1,371,177			1,473,763
Intangibles, net		12,970			11,546
Restricted cash		1,001			1,696
Other assets		39,700			36,072
Total assets	$	2,307,739		$	2,383,993
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	69,670		$	54,609
Trade accounts payable		230,617			241,684
Accrued expenses		137,914			258,449
Total current liabilities		438,201			554,742
Long-term debt		1,234,505			1,338,751
Long-term debt, related party		250,000			100,000
Pension and severance obligations		126,217			116,789
Other non-current liabilities		32,845			30,548
Total liabilities		2,081,768			2,140,830
Equity:
Amkor stockholders’ equity:
Preferred stock		—			—
Common stock, $0.001 par value, 500,000 shares authorized, issued and outstanding of 183,039 in 2009 and 183,035 in 2008		183			183
Additional paid-in capital		1,498,331			1,496,976
Accumulated deficit		(1,291,090	)		(1,278,221	)
Accumulated other comprehensive income		12,231			18,201
Total Amkor stockholders’ equity		219,655			237,139
Noncontrolling interests in subsidiaries		6,316			6,024
Total equity		225,971			243,163
Total liabilities and equity	$	2,307,739		$	2,383,993

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

	For the Six Months Ended
	June 30,
	2009			2008
	(In thousands)
Cash flows from operating activities:
Net (loss) income	$	(12,595	)	$	137,761
Depreciation and amortization		156,507			150,543
Gain on debt retirement, net		(16,884	)		—
Other operating activities and non-cash items		5,407			7,694
Changes in assets and liabilities		(99,077	)		(11,300	)
Net cash provided by operating activities		33,358			284,698
Cash flows from investing activities:
Purchases of property, plant and equipment		(69,955	)		(190,870	)
Proceeds from the sale of property, plant and equipment		687			14,968
Proceeds from sale of investment		—			2,460
Other investing activities		(3,086	)		(496	)
Net cash used in investing activities		(72,354	)		(173,938	)
Cash flows from financing activities:
Borrowings under revolving credit facilities		—			619
Payments under revolving credit facilities		—			(633	)
Proceeds from issuance of short-term debt		15,000			—
Proceeds from issuance of long-term debt		100,000			—
Proceeds from issuance of related party debt		150,000			—
Payments for debt issuance costs		(8,539	)		—
Payments of long-term debt		(186,156	)		(124,074	)
Proceeds from issuance of stock through stock compensation plans		15			9,776
Net cash provided by (used in) financing activities		70,320			(114,312	)
Effect of exchange rate fluctuations on cash and cash equivalents		(346	)		2,594
Net increase (decrease) in cash and cash equivalents		30,978			(958	)
Cash and cash equivalents, beginning of period		424,316			410,070
Cash and cash equivalents, end of period	$	455,294		$	409,112