1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 July 22, 1998 ----------------------------------------- Date of Report (Date of earliest event reported) AMKOR TECHNOLOGY, INC. ----------------------------------------- (Exact name of Registrant as specified in its charter) Delaware ----------------------------------------- (State or other jurisdiction of incorporation) 23-292-5614 - --------------------- ----------- (Commission File No.) (IRS Employer Identification Number) 1345 Enterprise Drive West Chester, PA 19380 (610) 431-9600 ----------------------------------------- (Address of Principal Executive Offices) ------------------------------------------------------------ (Former name or former address, if changed since last report) 2 Item 5. Other Events On July 22, 1998, Amkor Technology, Inc. issued a press release announcing financial results for the second quarter ended June 30, 1998. A copy of the press release is filed herewith as Exhibit 99.1 3 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. AMKOR TECHNOLOGY, INC. By: /s/ Frank J. Marcucci ----------------------------------- Frank J. Marcucci Chief Finincial Officer Dated: July 23, 1998 4 INDEX TO EXHIBITS
SEQUENTIALLY EXHIBIT DESCRIPTION NUMBERED NUMBER PAGE ------- ----------- ------------ 99.1 Press release dated July 22, 1998
1 Exhibit 99.1 Contacts: Frank Marcucci Deborah Stapleton or Kristine Mozes Chief Financial Officer Stapleton Communications Inc. (610) 431-9600 (650) 470-4225 AMKOR TECHNOLOGY, INC. REPORTS REVENUES AND EARNINGS FOR SECOND QUARTER 1998 West Chester, Penn. - July 22, 1998 -- Amkor Technology, Inc. (Nasdaq: AMKR) today reported financial results for the second quarter ended June 30, 1998. Revenues for the second quarter of 1998 were $384.7 million, up 10 percent from $350.5 million in revenues reported for the second quarter of 1997, and up 3 percent from the $371.7 million in revenues reported for the first quarter of 1998. Pro forma net income* for the second quarter of 1998 was $20.8 million. This compares with pro forma net income of $7.6 million for the second quarter of 1997 and pro forma net income of $9.6 million for the first quarter of 1998. Pro forma earnings per share for the second quarter of 1998 were $0.19 on the basis of 116.4 million weighted average shares outstanding. This compares with pro forma earnings per share of $0.09 for the second quarter of 1997, and pro forma earnings per share of $0.12 for the first quarter of 1998. All per share amounts are computed on a diluted basis. Revenues for the six-month period ended June 30, 1998 were $756.5 million, up 14 percent from $663.5 million in revenue a year ago. Pro forma net income for the six months ended June 30, 1998 was $30.4 million. This compares with pro forma net income of $1.2 million for the six-month period ended June 30, 1997. Pro forma earnings per share for the first six months of 1998 were $0.32 on the basis of 99.5 million weighted average shares outstanding. This compares with pro forma earnings per share of $0.01 for the six months ended June 30, 1997. - ------------------- * (Prior to April 28, 1998 certain of the Company's subsidiaries were taxed as S Corporations and, as a result, did not recognize any provision for Federal income taxes. All pro forma financial data included herein include a pro forma provision to reflect the U.S. Federal income taxes, which would have been recorded by the Company if these subsidiaries had been C Corporations.) 2 Amkor Technology, Inc. Reports Earnings for Q2 1998 July 22, 1998 Page 2 "We are very pleased with our performance in the second quarter, which was a challenging time in the worldwide semiconductor industry," said John Boruch, Amkor's president and chief operating officer. "We continued to increase sales of our advanced products. The resulting favorable shift in our product mix, plus the impact of our cost reduction programs and favorable margins on customer shipments from Anam Semiconductor Inc. combined to keep our gross margins within our target range, despite strong pricing pressures. We believe our performance during the first half of 1998 positions us well for the industry recovery when it does occur." The statements in this news release, other than the historical financial information, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk factors that could affect the company's results is detailed in the company's filings with the Securities and Exchange Commission, including the Report on Form 10-Q for the quarter ended March 31, 1998. Amkor Technology, Inc., founded in 1968, is the world's largest independent provider of semiconductor packaging and test services. The company offers a complete set of services including deep submicron wafer fabrication, wafer probe testing, IC packaging assembly and design, final testing, burn-in, characterization and reliability testing. More information on Amkor Technology, Inc. is available from the company's SEC filings and on Amkor's web site, http://www.amkor.com. Amkor Technology, Inc. is traded on the Nasdaq National Market under the symbol AMKR. (Condensed Statements of Operations and Balance Sheets to follow) ### 3 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
DECEMBER 31, JUNE 30, 1997 1998 ------------ ------------ (UNAUDITED) ASSETS CURRENT ASSETS: Cash and cash equivalents ............................ $ 90,917 $ 170,461 Short-term investments ............................... 2,524 2,824 Accounts receivable -- Trade, net of allowance for doubtful Accounts of $4,234, $5,593 ...................... 102,804 106,112 Due from affiliates ............................... 14,431 39,333 Other ............................................. 4,879 5,675 Inventories .......................................... 115,870 93,044 Other current assets ................................. 26,997 16,233 ------------ ------------ Total current assets ......................... 358,422 433,682 ------------ ------------ PROPERTY, PLANT AND EQUIPMENT, net ..................... 427,061 422,533 ------------ ------------ INVESTMENTS: AICL at equity ....................................... 13,863 -- Other ................................................ 5,958 5,836 ------------ ------------ Total investments ............................ 19,821 5,836 ------------ ------------ OTHER ASSETS: Due from affiliates .................................. 29,186 25,308 Other ................................................ 21,102 60,060 ------------ ------------ 50,288 85,368 ------------ ------------ Total assets ................................. $ 855,592 $ 947,419 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Short-term borrowings and current portion of Long-term debt .................................... $ 167,317 $ 32,973 Trade accounts payable ............................... 113,037 92,863 Due to affiliates .................................... 15,581 2,413 Bank overdraft ....................................... 29,765 12,937 Accrued expenses ..................................... 43,973 90,784 Accrued income taxes ................................. 26,968 33,284 ------------ ------------ Total current liabilities .................... 396,641 265,254 ------------ ------------ LONG-TERM DEBT ......................................... 196,934 18,120 ------------ ------------ CONVERTIBLE SUBORDINATED NOTES ......................... -- 207,000 ------------ ------------ DUE TO ANAM USA, INC. .................................. 149,776 -- ------------ ------------ OTHER NONCURRENT LIABILITIES ........................... 12,084 11,559 ------------ ------------ COMMITMENTS AND CONTINGENCIES MINORITY INTEREST ...................................... 9,282 -- ------------ ------------ STOCKHOLDERS' EQUITY: Common stock ......................................... 46 118 Additional paid-in capital ........................... 20,871 381,487 Retained earnings .................................... 70,621 63,881 Cumulative translation adjustment .................... (663) -- ------------ ------------ Total stockholders' equity ................... 90,875 445,486 ------------ ------------ Total liabilities and stockholders' equity ... $ 855,592 $ 947,419 ============ ============ 4 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED JUNE 30, -------------------------------- 1997 1998 ------------ ------------ (UNAUDITED) (UNAUDITED) NET REVENUES ............................... $ 350,471 $ 384,724 COST OF REVENUES -- including Purchases from AICL ........................ 299,093 317,106 ------------ ------------ GROSS PROFIT ............................... 51,378 67,618 ------------ ------------ OPERATING EXPENSES: Selling, general and administrative ...... 26,657 28,939 Research and development ................. 2,030 1,938 ------------ ------------ Total operating expenses .............. 28,687 30,877 ------------ ------------ OPERATING INCOME ........................... 22,691 36,741 ------------ ------------ OTHER (INCOME) EXPENSE: Interest expense, net .................... 8,306 4,875 Foreign currency loss .................... 1,590 956 Other expense, net ....................... (319) 1,808 ------------ ------------ Total other expense ................... 9,577 7,639 ------------ ------------ INCOME BEFORE INCOME TAXES, EQUITY IN INCOME OF AICL AND MINORITY INTEREST ........................ 13,114 29,102 PROVISION FOR INCOME TAXES ................. 4,186 8,437 EQUITY IN INCOME OF AICL ................... -- -- MINORITY INTEREST .......................... 221 (126) ------------ ------------ NET INCOME ................................. $ 8,707 $ 20,791 ============ ============ PRO FORMA DATA (UNAUDITED): Historical income before income taxes, equity in income of AICL and minority interest ..................... $ 13,114 $ 29,102 Pro forma provision for income taxes ..... 5,327 8,437 ------------ ------------ Pro forma income before equity in income of AICL and minority interest .............................. 7,787 20,665 Historical equity in income of AICL .................................. -- -- Historical minority interest ............. 221 (126) ------------ ------------ Pro forma net income ..................... $ 7,566 $ 20,791 ============ ============ Basic pro forma net income per common share ...................... $ .09 $ .20 ============ ============ Diluted pro forma net income per common share ...................... $ .09 $ .19 ============ ============ Shares used in computing basic pro forma income per common share .......... 82,610 106,035 ============ ============ Shares used in computing diluted pro forma net income per common share ...... 82,610 116,427 ============ ============ 5 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE SIX MONTHS ENDED JUNE 30, ------------------------------ 1997 1998 ------------ ------------ (UNAUDITED) (UNAUDITED) NET REVENUES ............................... $ 663,490 $ 756,457 COST OF REVENUES -- including purchases from AICL ...................... 586,542 627,162 ------------ ------------ GROSS PROFIT ............................... 76,948 129,295 ------------ ------------ OPERATING EXPENSES: Selling, general and administrative ...... 47,265 57,654 Research and development ................. 3,515 3,995 ------------ ------------ Total operating expenses .............. 50,780 61,649 ------------ ------------ OPERATING INCOME ........................... 26,168 67,646 ------------ ------------ OTHER (INCOME) EXPENSE: Interest expense, net .................... 16,355 14,397 Foreign currency loss .................... 100 3,703 Other expense, net ....................... 1,287 5,897 ------------ ------------ Total other expense ................... 17,742 23,997 ------------ ------------ INCOME BEFORE INCOME TAXES, EQUITY IN INCOME OF AICL AND MINORITY INTEREST ........................ 8,426 43,649 PROVISION FOR INCOME TAXES ................. 2,689 13,487 EQUITY IN INCOME OF AICL ................... -- -- MINORITY INTEREST .......................... 1,859 559 ------------ ------------ NET INCOME ................................. $ 3,878 $ 29,603 ============ ============ PRO FORMA DATA (UNAUDITED): Historical income before income taxes, equity in income of AICL and minority interest ..................... $ 8,426 $ 43,649 Pro forma provision for income taxes ..... 5,389 12,659 ------------ ------------ Pro forma income before equity in Income of AICL and minority Interest .............................. 3,037 30,990 Historical equity in income of AICL .................................. -- -- Historical minority interest ............. 1,859 559 ------------ ------------ Pro forma net income ..................... $ 1,178 $ 30,431 ============ ============ Basic and diluted pro forma net income per common share ...................... $ .01 $ .32 ============ ============ Shares used in computing pro forma basic net income per common share ............ 82,610 94,323 ============ ============ Shares used in computing pro forma diluted net income per common share ..... 82,610 99,519 ============ ============