Amkor Technology (AMKR) 8-K Amkor Reports Fourth Quarter and Full Year 2009 Results

Exhibit 99.1

News Release

Amkor Reports Fourth Quarter and Full Year 2009 Results

CHANDLER, Ariz. — February 10, 2010— Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor assembly and test services, today reported its financial results for the quarter and year ended December 31, 2009.

Fourth quarter net sales of $668 million were up 8% sequentially from the third quarter of 2009 and up 22% from the fourth quarter of 2008. Gross margin improved to 26% for the fourth quarter, compared to 25% for the third quarter of 2009 and 18% for the fourth quarter of 2008. Fourth quarter net income was $88 million or $0.33 per diluted share, compared to $81 million or $0.31 per diluted share in the third quarter of 2009 and a net loss of $623 million, or $3.40 loss per share, in the fourth quarter of 2008. Net income for the third quarter of 2009 included income tax benefits of $34 million or $0.12 per diluted share, primarily from the release of a tax valuation allowance at a subsidiary in Korea. The net loss for the fourth quarter of 2008 included a $671 million goodwill impairment charge, or $3.67 per share.

Full year 2009 net sales were $2.2 billion, down 18% from $2.7 billion for 2008. Gross margin was 22% for 2009, compared to 21% for 2008. Net income for the full year 2009 was $156 million or $0.67 per diluted share compared to a net loss of $457 million for 2008 or $2.50 loss per share, which included the goodwill impairment charge noted above.

“Customer demand remained strong in the fourth quarter as we delivered our best quarterly results in 2009. Our net sales of $668 million were better than expected, representing an 8% improvement from the third quarter,” said Ken Joyce, Amkor’s president and chief executive officer. “Our disciplined spending and cost control efforts, together with strong operating leverage in the second half of the year, have driven solid profitability and free cash flow generation during the worst industry downturn in many years,” added Joyce.

“We began the year with an unprecedented drop in sales as the electronics industry significantly cut inventories in response to the global recession. The markets have rebounded more quickly than most people anticipated at the start of the year, and the current outlook is positive as we enter 2010. Looking ahead to the first quarter of 2010, we expect net sales to be down between 2% and 6% from a strong fourth quarter of 2009, with gross margin of 22% to 24%,” said Joyce.

“We are currently operating at or near capacity in many of our product lines,” noted Joyce. “In order to support improved customer demand, we expect to invest at higher levels in 2010 compared with 2009, with spending weighted more towards the first half of the year. Our overall capital intensity is expected to be around 14%.”

“Unit shipments of 2.4 billion during the fourth quarter were up 4% from the third quarter, principally driven by the strength of leadframe wirebond packaging services,” said Joanne Solomon, Amkor’s chief financial officer. “Revenue growth of 8% was more than the unit growth of 4% reflecting strong demand for flip chip and wire bond chip scale and ball grid array packaging services with higher average sales prices. We saw broad demand across our product lines during the fourth quarter, including our services for the communications and consumer end markets, with notable sequential growth in networking.”

“We generated $88 million in free cash flow in the full year 2009, our fourth consecutive year of positive free cash flow, despite paying $148 million to reduce our Korean severance obligations and to resolve a patent license dispute,” noted Solomon. “During the fourth quarter, we repurchased $23 million of our 7.125% senior notes due 2011 and $15 million of our 7.75% senior notes due 2013 and we ended the quarter with a cash balance of $395 million and total debt of $1.4 billion.”

“Capital additions for the fourth quarter of 2009 were $69 million and $198 million for the full year 2009 with full year capital intensity of 9%. We expect capital additions for the first quarter of 2010 to be approximately $100 to $125 million. Our planned capital additions are focused on expanding capacity in support of customer demand for a number of advanced packaging and test areas, including flip chip and wire bond chip scale packaging and wafer bumping,” said Solomon.

Selected operating data for the fourth quarter and full year 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 first quarter of 2010:

• Net sales down 2% to 6% from the fourth quarter of 2009

• Gross margin between 22% and 24%

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

Conference Call Information

Amkor will conduct a conference call on February 10, 2010 at 5:00 p.m. eastern time. This call is being webcast and can be accessed at Amkor’s web site atwww.amkor.com. You may also access the call by dialing 877-941-2332. A replay of the call will be made available at Amkor’s web site or by dialing 800-406-7325 (access passcode # 4200074). 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 atwww.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 to semiconductor companies and electronics OEMs. 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 the expected dollar amount, focus and timing of our capital additions and the expected level of capital intensity; and the statements made regarding our current outlook as we enter 2010 and our expected 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;

• dependence on key customers;

• 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;

• worldwide economic effects of terrorist attacks, natural disasters and military conflict;

• our ability to control 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 and precious metal 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:

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

AMKOR TECHNOLOGY, INC.
Selected Operating Data

	Q4 2009			Q3 2009			Q4 2008			2009			2008
Sales Data:
Packaging services (in millions):
Chip scale package	$	224		$	206		$	151		$	695		$	697
Ball grid array		142			129			152			500			751
Leadframe		184			172			144			587			753
Other packaging		47			42			33			152			144
Packaging services		597			549			480			1,934			2,345
Test services		71			67			69			245			314
Total sales	$	668		$	616		$	549		$	2,179		$	2,659
Packaging services:
Chip scale package		33	%		33	%		27	%		32	%		26	%
Ball grid array		21	%		21	%		28	%		23	%		28	%
Leadframe		28	%		28	%		26	%		27	%		29	%
Other packaging		7	%		7	%		6	%		7	%		5	%
Packaging services		89	%		89	%		87	%		89	%		88	%
Test services		11	%		11	%		13	%		11	%		12	%
Total sales		100	%		100	%		100	%		100	%		100	%
Packaged units (in millions):
Chip scale package		519			481			380			1,652			1,661
Ball grid array		53			57			59			205			298
Leadframe		1,856			1,802			1,307			5,773			6,593
Other packaging		7			7			3			24			14
Total packaged units		2,435			2,347			1,749			7,654			8,566
Net sales from top ten customers		55	%		54	%		52	%		53	%		50	%
Capacity utilization		84	%		82	%		61	%
End Market Distribution Data(an approximation based on a sampling of our largest customers. Prior periods were revised for an expanded sampling methodology and refinement of our classifications):
Communications		39	%		40	%		34	%
Consumer		26	%		28	%		28	%
Computing		13	%		13	%		16	%
Networking		13	%		12	%		15	%
Other		9	%		7	%		7	%
Total		100	%		100	%		100	%

AMKOR TECHNOLOGY, INC.
Selected Operating Data (continued)

	Q4 2009			Q3 2009			Q4 2008			2009			2008
	(in millions, except per share data)
Earnings per Share Data:
Net income (loss) attributable to Amkor — basic	$	88		$	81		$	(623	)	$	156		$	(457	)
Adjustment for dilutive securities on net income (loss):
Interest on 2.5% convertible notes due 2011, net of tax		—			—			—			2			—
Interest on 6.25% convertible notes due 2013, net of tax		2			2			—			7			—
Interest on 6.0% convertible notes due 2014, net of tax		4			4			—			12			—
Net income (loss) attributable to Amkor — diluted	$	94		$	87		$	(623	)	$	177		$	(457	)
Weighted average shares outstanding — basic		183			183			183			183			183
Effect of dilutive securities:
Stock options		—			—			—			—			—
2.5% convertible notes due 2011		3			3			—			5			—
6.25% convertible notes due 2013		13			13			—			13			—
6.0% convertible notes due 2014		83			83			—			62			—
Weighted average shares outstanding — diluted		282			282			183			263			183
Net income (loss) attributable to Amkor per common share:
Basic	$	0.48		$	0.44		$	(3.40	)	$	0.85		$	(2.50	)
Diluted	$	0.33		$	0.31		$	(3.40	)	$	0.67		$	(2.50	)
Capital Investment Data:
Property, plant and equipment additions	$	69		$	78		$	32		$	198		$	342
Net change in related accounts payable and deposits		(7	)		(36	)		37			(24	)		44
Purchases of property, plant and equipment	$	62		$	42		$	69		$	174		$	386
Depreciation and amortization	$	75		$	74		$	80		$	306		$	310
Free Cash Flow Data:
Net cash provided by operating activities	$	106		$	123		$	149		$	262		$	606
Less purchases of property, plant and equipment		(62	)		(42	)		(69	)		(174	)		(386	)
Free cash flow*	$	44		$	81		$	80		$	88		$	220

^* 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 Twelve Months
	Ended December 31,						Ended December 31,
	2009			2008			2009			2008
		(In thousands, except per share data)
Net sales	$	667,612		$	548,712		$	2,179,109		$	2,658,602
Cost of sales		492,258			451,088			1,698,713			2,096,864
Gross profit		175,354			97,624			480,396			561,738
Operating expenses:
Selling, general and administrative		54,775			58,399			210,907			251,756
Research and development		10,907			13,192			44,453			56,227
Goodwill impairment		—			671,117			—			671,117
Gain on sale of real estate		(135	)		—			(281	)		(9,856	)
Total operating expenses		65,547			742,708			255,079			969,244
Operating income (loss)		109,807			(645,084	)		225,317			(407,506	)
Other (income) expense:
Interest expense, net		22,593			26,114			100,029			109,980
Interest expense, related party		3,813			1,563			13,000			6,250
Foreign currency loss (gain)		1,178			(16,957	)		3,339			(61,057	)
Loss (gain) on debt retirement, net		570			(35,987	)		(15,088	)		(35,987	)
Equity in earnings of unconsolidated affiliate		(2,373	)		—			(2,373	)		—
Other income, net		(36	)		(49	)		(113	)		(1,004	)
Total other expense (income), net		25,745			(25,316	)		98,794			18,182
Income (loss) before income taxes		84,062			(619,768	)		126,523			(425,688	)
Income tax (benefit) expense		(3,820	)		5,237			(29,760	)		31,788
Net income (loss)		87,882			(625,005	)		156,283			(457,476	)
Net loss (income) attributable to noncontrolling interests		104			1,927			(303	)		781
Net income (loss) attributable to Amkor	$	87,986		$	(623,078	)	$	155,980		$	(456,695	)
Net income (loss) attributable to Amkor per common share:
Basic	$	0.48		$	(3.40	)	$	0.85		$	(2.50	)
Diluted	$	0.33		$	(3.40	)	$	0.67		$	(2.50	)
Shares used in computing per common share amounts:
Basic		183,134			183,035			183,067			182,734
Diluted		282,495			183,035			263,379			182,734

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	December 31,			December 31,
	2009			2008
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	395,406		$	424,316
Restricted cash		2,679			4,880
Accounts receivable:
Trade, net of allowances		328,252			259,630
Other		18,666			14,183
Inventories		155,185			134,045
Other current assets		32,737			23,862
Total current assets		932,925			860,916
Property, plant and equipment, net		1,364,630			1,473,763
Intangibles, net		9,975			11,546
Investments		19,108			—
Restricted cash		6,795			1,696
Other assets		99,476			36,072
Total assets	$	2,432,909		$	2,383,993
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	88,944		$	54,609
Trade accounts payable		361,263			241,684
Accrued expenses		155,630			258,449
Total current liabilities		605,837			554,742
Long-term debt		1,095,241			1,338,751
Long-term debt, related party		250,000			100,000
Pension and severance obligations		83,067			116,789
Other non-current liabilities		9,063			30,548
Total liabilities		2,043,208			2,140,830
Equity:
Amkor stockholders’ equity:
Preferred stock		—			—
Common stock, $0.001 par value, 500,000 shares authorized, issued and outstanding of 183,171 in 2009 and 183,035 in 2008		183			183
Additional paid-in capital		1,500,246			1,496,976
Accumulated deficit		(1,122,241	)		(1,278,221	)
Accumulated other comprehensive income		5,021			18,201
Total Amkor stockholders’ equity		383,209			237,139
Noncontrolling interests in subsidiaries		6,492			6,024
Total equity		389,701			243,163
Total liabilities and equity	$	2,432,909		$	2,383,993

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

	For the Twelve Months Ended
	December 31,
	2009			2008
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	156,283		$	(457,476	)
Impairment of goodwill		—			671,117
Depreciation and amortization		305,510			309,920
Gain on debt retirement, net		(15,088	)		(35,987	)
Other operating activities and non-cash items		(17,595	)		22,511
Changes in assets and liabilities		(167,385	)		95,733
Net cash provided by operating activities		261,725			605,818
Cash flows from investing activities:
Purchases of property, plant and equipment		(173,496	)		(386,239	)
Proceeds from the sale of property, plant and equipment		3,116			15,480
Purchase of equipment leased to unconsolidated affiliate		(44,681	)		—
Investment in unconsolidated affiliate		(16,736	)		—
Proceeds from sale of securities		—			2,460
Other investing activities		(9,081	)		(3,081	)
Net cash used in investing activities		(240,878	)		(371,380	)
Cash flows from financing activities:
Borrowings under revolving credit facilities		41,410			619
Payments under revolving credit facilities		(10,171	)		(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 of long-term debt		(338,104	)		(233,814	)
Payments for debt issuance costs		(8,479	)		—
Proceeds from issuance of stock through stock compensation plans		693			10,203
Net cash used in financing activities		(49,651	)		(223,625	)
Effect of exchange rate fluctuations on cash and cash equivalents		(106	)		3,433
Net (decrease) increase in cash and cash equivalents		(28,910	)		14,246
Cash and cash equivalents, beginning of period		424,316			410,070
Cash and cash equivalents, end of period	$	395,406		$	424,316