Exhibit 12.1
ChipPAC, Inc.
Computation of Ratio of Earnings to Fixed Charges
(in thousands)
Six Months
Years Ended December 31, Ended June 30,
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1996 1997 1998 1999 2000 2001
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Pre-tax income (loss) from
continuing operations $(2,742) $(55,789) $52,867 $(3,997) $18,060 $(21,475)
Fixed Charges:
Capitalized interest (A) 510 1,122 -- -- -- --
Interest expense 5,780 10,972 13,340 21,241 39,432 18,288
Rentals:
Rental expenses (B) 1,667 1,433 2,532 1,633 1,733 763
Total fixed charges $ 7,957 $ 13,527 $15,872 $22,874 $41,165 $19,051
Pre-tax income (loss) from
continuing charges $ 5,215 $(42,262) $68,739 $18,877 $59,225 $(2,424)
Ratio of earnings to fixed
charges (C) (C) 4.3x (C)(D) 1.4x (C)
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(A) Capitalized interest relates to the costs of plant and building
improvements in China and building improvements in Korea.
(B) Amounts represented one-third operating lease rental expense as a
reasonable approximation of the interest portion thereof.
(C) Due to ChipPAC's losses in the twelve months ended December 31, 1996, 1997,
1999 and the six months ended June 30, 2001, the ratio coverage was less
than 1:1. In order to achieve a coverage ratio of 1:1 for those periods,
ChipPAC had to generate additional earnings of $2,742, $55,789, $3,997 and
$21,475 respectively.
(D) Included in earnings for the year ended December 31, 1999 was a
non-recurring loss of $11,842 before income taxes relating to the change of
control expenses. If these expenses had not occurred, the ratio of earnings
to fixed charges would have been 1.3x.