Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the first quarter ended March 31, 2012, with net sales of $655 million, net income of $12 million, and earnings per diluted share of $0.06. Net income includes a charge of $7 million (of which $5 million was recorded in cost of sales and $2 million in selling, general and administrative expenses), and earnings per diluted share includes a charge of $0.03, for restructuring costs associated with reductions in our workforce in Japan.

“First quarter results came in at the high end of our expectations,” said Ken Joyce, Amkor's president and chief executive officer. “Our strong position in wireless communications continues to drive our business and we saw notable improvement in our test services segment. We also benefited from additional leadframe packaging business from some customers whose supply chains were disrupted by the flooding in Thailand during the fourth quarter of 2011.”

Selected financial information for the first quarter 2012 is as follows:

• Net Sales: $655 million, down 4% from $684 million in the prior quarter, and down 1% from $665 million in the first quarter of 2011
• Gross Margin: 16%, compared to 16% in the prior quarter, and 19% in the first quarter of 2011
• Net Income: $12 million, down from $25 million in the prior quarter, and down from $25 million in the first quarter of 2011
• Earnings Per Diluted Share: $0.06, down from $0.11 in the prior quarter, and down from $0.10 in the first quarter of 2011

“Capital additions were $124 million during the first quarter, primarily in support of specific business for customers in smartphones and tablets,” said Joanne Solomon, Amkor's executive vice president and chief financial officer.

Amkor's Board of Directors previously authorized $300 million for the repurchase of our common stock; $150 million in August 2011 and $150 million in February 2012. During the first quarter 2012 the company repurchased 1.0 million shares at a purchase price of $4.5 million, for a total of 29.6 million shares at a purchase price of $133.4 million since the program commenced.

Cash and cash equivalents were $381 million, and net debt was $974 million, at March 31, 2012.

Selected operating data for the first quarter 2012 is included in a section below before the financial statements.

Business Outlook

Based upon the currently available information, we have the following expectations for the second quarter 2012:

• Net sales of $670 million to $700 million, up 2% to 7% from the prior quarter
• Gross margin of 16% to 18%
• Net income of $17 million to $36 million, or $0.08 to $0.16 per diluted share
• Capital additions of around $200 million for the second quarter, and around $550 million for the full year

“We expect solid growth in the second half of 2012,” noted Joyce. “Several of our major customers that sell into smartphones and tablets have substantially increased their demand forecasts with us and we are raising our estimate of 2012 capital additions to around $550 million to meet these specific new opportunities. However, our sales and capital additions may vary depending on a number of factors including the supply of 28 nanometer wafers for some of our customers.”

Conference Call Information

Amkor will conduct a conference call on April 26, 2012, at 5:00 p.m. Eastern Daylight Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor's web site: www.amkor.com. You may also access the call by dialing 1-888-561-1799. A replay of the call will be made available at Amkor's web site or by dialing 800-406-7325 (access pass code #4532650). The webcast is also being distributed over Thomson Reuters' Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Reuters' individual investor center at www.companyboardroom.com or by visiting any of the investor sites in Thomson Reuters' Individual Investor Network. Institutional investors can access the call via Thomson Reuters' password-protected event management site, Street Events (www.streetevents.com).

About Amkor

Amkor is a leading provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs. More information about Amkor is available from the company's filings with the Securities and Exchange Commission 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, all of the statements made under "Business Outlook" above. 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;
• timing and volume of orders relative to production capacity and inability to achieve high capacity utilization rates;
• volatility of consumer demand and weakness in forecasts from our customers for products incorporating our semiconductor packages;
• dependence on key customers;
• the performance of our business, economic and market conditions, the cash needs and investment opportunities for the business, the need for additional capacity and facilities to service customer demand and the availability of cash flow from operations or financing;
• the supply of 28 nanometer wafers;
• customer modification of and follow through with respect to forecasts provided to us;
• changes in tax rates and taxes as a result of changes in tax law, the jurisdictions in which our income is determined to be earned and taxed, the outcome of tax audits and tax ruling requests, our ability to realize deferred tax assets and the expiration of tax holidays;
• curtailment of outsourcing by our customers;
• our substantial indebtedness and restrictive covenants;
• failure to realize sufficient cash flow or access to other sources of liquidity to fund capital additions;
• the effects of a recession or other downturn in the U.S. and other economies worldwide;
• disruptions or deficiencies in our controls resulting from the implementation of our new enterprise resource planning system;
• 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;
• competition, competitive pricing and declines in average selling prices;
• fluctuations in manufacturing yields;
• 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 and compliance with 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, 2011 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.