UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

February 13, 2008

AMKOR TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

DELAWARE		000-29472		23-1722724
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1900 SOUTH PRICE ROAD
CHANDLER, AZ 85286
(Address of Principal Executive Offices, including Zip Code)

(480) 821-5000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02		Results of Operations and Financial Condition

Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for Amkor Technology, Inc. for the three and twelve months ended December 31, 2007 and forward-looking statements relating to the first quarter of 2008 as presented in a press release dated February 13, 2008. The information in this Form 8-K and the exhibit attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Exhibit 99.1 discloses free cash flow for the three and twelve months ended December 31, 2007. Free cash flow (which we define as net cash provided by operating activities less payments for property, plant and equipment) is considered a non-GAAP financial measure. 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 generally accepted accounting principles. We believe free cash flow to be relevant and useful information to our investors in assessing our financial operating results as this measure is used by our management in evaluating our liquidity, our ability to service debt and fund capital expenditures. However, this measure should be considered in addition to, and not as a substitute, or superior to, cash flows or other measures of financial performance prepared in accordance with generally accepted accounting principles, and may not be comparable to similarly titled measures reported by other companies. The non-GAAP measures included in our press release have been reconciled to the nearest GAAP measure as required under SEC rules regarding the use of non-GAAP financial measures.

Item 9.01		Financial Statements and Exhibits

(d) Exhibits

The following exhibit is furnished (not filed) herewith.

99.1 Text of Press Release dated February 13, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 13, 2008

EXHIBIT INDEX:

99.1		Text of Press Release dated February 13, 2008

Exhibit 99.1

News Release

Amkor Reports Strong Fourth Quarter 2007 Results

Chandler, Ariz., February 13, 2008 — Amkor Technology, Inc. (NASDAQ: AMKR) today reported its financial results for the fourth quarter and year ended December 31, 2007.

Net sales of $747 million for the fourth quarter of 2007 were up 8.4% from the third quarter of 2007 and up 9.4% from the fourth quarter of 2006. Fourth quarter net income was $94 million, up 54.5% from the third quarter of 2007 and 58.6% from the fourth quarter of 2006. Fourth quarter earnings per diluted share was $0.46, up 53.3% from $0.30 in both the third quarter of 2007 and fourth quarter of 2006.

For the full year 2006 and 2007, Amkor’s net sales were $2.7 billion. Amkor’s full year 2007 net income of $220 million was up $50 million, or 29.3%, from $170 million for the full year 2006. Full year 2007 earnings per diluted share was $1.11, up 23.3% from $0.90 for the full year 2006.

“We exceeded both our sales and profitability targets in the fourth quarter of 2007 with stronger than expected customer demand primarily for high-end wireless communications, computing and gaming applications,” said James Kim, Amkor’s chairman and chief executive officer. “Our strong fourth quarter performance demonstrates that our business model is working, as we enrich our product mix, leverage our advanced packaging technologies and maintain a disciplined approach to capital spending.”

“We anticipate solid first quarter 2008 sales when compared with historical levels,” said Kim. “However, in view of exceptionally strong sales in the fourth quarter of 2007, we expect first quarter 2008 sales to be down 7% to 9% sequentially, which is generally in line with seasonal expectations.”

“Net sales for the fourth quarter of 2007 increased $58 million or 8.4% sequentially, while unit shipments increased 4.2% with higher unit volumes across most of our product lines,” said Joanne Solomon, Amkor’s chief financial officer. “Fourth quarter 2007 sales reflect the increasing importance of our advanced packaging technologies and the benefit of our investments in flip chip and wafer level packaging, 3D packaging and test. For the full year 2007 compared with 2006, unit shipments were down slightly reflecting a shift in our mix from traditional leadframe packages to advanced technologies including flip chip and 3D packaging,” said Solomon.

Gross margin in the fourth quarter of 2007 was 27.2%, up from 24.7% in the third quarter of 2007 and 25.3% in the fourth quarter of 2006. The improvement principally reflects the operating leverage of higher revenues and the enriched product mix. Amkor generated $367 million of free cash flow in 2007, an increase of $159 million or 76% from the $208 million of free cash flow generated in 2006.

“Total debt at the end of 2007 was $1.8 billion down $241 million from the prior year. Our cash balance at the end of 2007 was $410 million. We will repay $88 million of 9.25% senior notes at maturity on February 15, 2008 and repay approximately $64 million of maturing debt held by our subsidiaries

throughout 2008. Net interest expense for 2007 decreased $31 million from 2006 reflecting the results of ongoing debt reduction efforts and selective refinancing of high cost debt in prior periods,” said Solomon.

“Capital additions totaled $101 million in the fourth quarter of 2007 and $294 million for the full year,” said Solomon. “Capital additions as a percentage of revenues, or capital intensity, were 10.7% for 2007 compared with 11.0% for 2006. We expect our capital intensity for 2008 to be around 11% to 14% of revenues, of which approximately 70% is expected to be in support of packaging, 20% for test and 10% for infrastructure. For the first quarter of 2008 we expect around $110 million of capital additions which are focused on specific opportunities for our largest customers and ongoing infrastructure investments. We currently expect our capital spending will be weighted more heavily in the first half of 2008 as a result of investments to expand our wafer bumping capacity.”

The effective income tax rate for 2007 was 5.4%, and the anticipated effective tax rate for 2008 is approximately 10%. This increase is primarily attributable to the full utilization of foreign net operating loss carry-forwards and tax credit carry-forwards in Taiwan. At December 31, 2007, Amkor had U.S. net operating losses available for carry-forward totaling $364 million, expiring through 2027, and $48 million of non-U.S. operating losses available for carry-forward, expiring through 2012.

Selected operating data for the fourth quarter 2007 is included in a section before the financial tables.

Business Outlook

On the basis of customers’ forecasts, we have the following expectations for the first quarter of 2008:

	•		Sales — Down 7% to 9% from the fourth quarter of 2007
	•		Gross Margin — in the range of 24% to 25%
	•		Net income — in the range of $0.25 to $0.29 per diluted share

Amkor will conduct a conference call on February 13, 2008 at 5:00 p.m. eastern time. The call can be accessed by dialing 303-262-2190, or by visiting the investor relations page of our website: www.amkor.com or CCBN’s website: www.companyboardroom.com. An archive of the webcast can be accessed through the same links, and will be available until our next quarterly earnings conference call. An audio replay of the call will be available for 48 hours following the conference call by dialing 303-590-3000 passcode: 11105972.

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: our focus on enriching product mix, leveraging our advanced packaging technologies and continuing a disciplined approach to capital spending; our expectations regarding capital intensity and the allocation of capital expenditures among our businesses; the expected dollar amount of our capital additions and the focus of our capital spending; the timing of our capital spending during the year; expectations regarding our effective tax rate for 2008, and the statements regarding sales, gross margin and net income per diluted share contained under Business Outlook. 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; 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 expenditures; deterioration of the U.S. or other economies; 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; 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, 2006 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.

Company Contact:		Investor Relations Contact:
Joanne Solomon		Claire McAdams
Corporate Vice President & CFO		Investor Relations
480-821-5000 ext. 5416		530-274-0551
jsolo@amkor.com		cmcad@amkor.com

AMKOR TECHNOLOGY, INC.

Selected Financial Data

		Q4 2007				Q3 2007				Q4 2006				2007				2006
		(in millions)
Capital Investment Data:
Capital additions		$	101			$	78			$	55			$	294			$	299
Net change in related accounts payable and deposits			(25	)			(20	)			9				(58	)			17
Payments for property, plant and equipment		$	76			$	58			$	64			$	236			$	316
Depreciation and amortization		$	72			$	70			$	71			$	283			$	274
Free Cash Flow Data:
Net cash provided by operating activities		$	189			$	160			$	143			$	603			$	524
Less payments for property, plant and equipment			(76	)			(58	)			(64	)			(236	)			(316	)
Free cash flow*		$	113			$	102			$	79			$	367			$	208

		Q4 2007				Q3 2007				Q4 2006				2007				2006
Sales Data:
Packaging services:
Wirebond — leadframe			31	%			33	%			34	%			33	%			37	%
Wirebond — laminate			40	%			40	%			38	%			39	%			38	%
Flip chip and wafer level processing			18	%			16	%			17	%			17	%			15	%
Packaging services			89	%			89	%			89	%			89	%			90	%
Test services			11	%			11	%			11	%			11	%			10	%
Total sales			100	%			100	%			100	%			100	%			100	%
Packaged units (in billions)			2.4				2.3				2.2				8.7				8.8
Net sales from top ten customers			49	%			48	%			46	%			47	%			44	%
Capacity utilization			86	%			83	%			79	%
End Market Distribution Data (an approximation based on a sampling of our largest customers):
Communications			40	%			40	%			36	%
Consumer			34	%			32	%			33	%
Computing			17	%			19	%			21	%
Other			9	%			9	%			10	%
Total			100	%			100	%			100	%

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

		For the Three Months Ended								For the Year Ended
		December 31,								December 31,
		2007				2006				2007				2006
		(in thousands, except per share data)
Net sales		$	746,888			$	683,011			$	2,739,445			$	2,728,560
Cost of sales			543,976				509,879				2,057,572				2,053,600
Gross profit			202,912				173,132				681,873				674,960
Operating expenses:
Selling, general and administrative			62,142				62,494				251,249				250,142
Research and development			10,720				9,337				41,650				38,735
Gain on sale of specialty test operations			—				—				(1,717	)			—
Provision for legal settlements and contingencies			—				—				—				1,000
Total operating expenses			72,862				71,831				291,182				289,877
Operating income			130,050				101,301				390,691				385,083
Other (income) expense:
Interest expense, net			28,489				36,477				124,099				154,807
Interest expense, related party			1,562				1,563				6,250				6,477
Foreign currency loss			1,015				1,783				8,961				13,255
Debt retirement costs			1				—				15,876				27,389
Other (income) expense, net			1,632				(836	)			668				661
Total other expense, net			32,699				38,987				155,854				202,589
Income before income taxes and minority interests			97,351				62,314				234,837				182,494
Income tax expense			3,024				2,743				12,597				11,208
Income before minority interests			94,327				59,571				222,240				171,286
Minority interests, net of tax			(663	)			(524	)			(2,376	)			(1,202	)
Net income		$	93,664			$	59,047			$	219,864			$	170,084
Net income per common share:
Basic		$	0.52			$	0.33			$	1.22			$	0.96
Diluted		$	0.46			$	0.30			$	1.11			$	0.90
Shares used in computing net income per common share:
Basic			181,775				178,109				180,597				177,862
Diluted			209,083				205,064				208,767				199,556

AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

		December 31,
		2007				2006
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	410,070			$	244,694
Restricted cash			2,609				2,478
Accounts receivable:
Trade, net of allowances			393,493				380,888
Other			4,938				5,969
Inventories, net			149,014				164,178
Other current assets			27,290				39,650
Total current assets			987,414				837,857
Property, plant and equipment, net			1,455,111				1,443,603
Goodwill			673,385				671,900
Intangibles, net			20,321				29,694
Investments			3,019				6,675
Restricted cash			1,725				1,688
Other assets			51,631				49,847
Total assets		$	3,192,606			$	3,041,264
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt		$	152,489			$	185,414
Trade accounts payable			359,313				291,847
Accrued expenses			165,271				145,501
Total current liabilities			677,073				622,762
Long-term debt			1,511,570				1,719,901
Long-term debt, related party			100,000				100,000
Pension and severance obligations			208,387				170,070
Other non-current liabilities			33,935				30,008
Total liabilities			2,530,965				2,642,741
Minority interests			7,022				4,603
Stockholders’ equity:
Preferred stock			—				—
Common stock, $0.001 par value, 500,000 shares authorized, issued and outstanding of 181,799 in 2007 and 178,109 in 2006			182				178
Additional paid-in capital			1,482,186				1,441,194
Accumulated deficit			(821,526	)			(1,041,390	)
Accumulated other comprehensive loss			(6,223	)			(6,062	)
Total stockholders’ equity			654,619				393,920
Total liabilities and stockholders’ equity		$	3,192,606			$	3,041,264

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

		For the Year Ended
		December 31,
		2007				2006
		(In thousands)
Cash flows from operating activities:
Net income		$	219,864			$	170,084
Depreciation and amortization			283,267				273,845
Debt retirement costs			6,876				27,389
Other operating activities and non-cash items			21,002				28,899
Changes in assets and liabilities			72,421				23,413
Net cash provided by operating activities			603,430				523,630
Cash flows from investing activities:
Payments for property, plant and equipment			(236,240	)			(315,873	)
Proceeds from the sale of property, plant and equipment			5,192				4,449
Other investing activities			(251	)			(3,373	)
Net cash used in investing activities			(231,299	)			(314,797	)
Cash flows from financing activities:
Borrowings under revolving credit facilities			86,150				233,212
Payments under revolving credit facilities			(109,296	)			(237,933	)
Proceeds from issuance of long-term debt			300,000				590,000
Payments of long-term debt			(518,913	)			(744,392	)
Payments for debt issuance costs			(3,441	)			(15,094	)
Proceeds from issuance of stock through stock compensation plans			37,050				4,976
Net cash used in financing activities			(208,450	)			(169,231	)
Effect of exchange rate fluctuations on cash and cash equivalents			1,695				(1,483	)
Net increase in cash and cash equivalents			165,376				38,119
Cash and cash equivalents, beginning of period			244,694				206,575
Cash and cash equivalents, end of period		$	410,070			$	244,694