Amkor Technology Inc. (Nasdaq: AMKR), a leader in semiconductor
packaging, assembly and test services, today announced that on December
30, 2015, it increased its ownership interest in J-Devices Corporation
from 65.7% to 100% through the exercise of previously disclosed options.
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“Amkor will consolidate the financial results of J-Devices beginning in
2016, initially adding about $800 million of annual revenue to our top
line,” said Steve Kelley, Amkor’s president and chief executive officer.
“This transaction cements Amkor’s position as the world’s second largest
OSAT, well ahead of the next two players. We also become the largest
OSAT for the automotive market, with roughly $750 million in combined
automotive-based revenues in 2015.”
“Fully combining J-Devices and Amkor is the logical next step in our
joint venture relationship that was begun more than six years ago,” said
Yoshifumi Nakaya, J-Devices’ chief executive officer. “We are fully
committed to our customers in Japan, and we see exciting opportunities
to expand our business worldwide by capitalizing on our leadership
position in automotive ICs.”
J-Devices is the largest OSAT in Japan and the sixth largest in the
world. For the 12 months ended September 30, 2015, J-Devices generated
revenues of $832 million, EBITDA of $113 million and net income of $26
million. The reconciliation to the comparable GAAP measure for EBITDA is
included in the reconciliation table below.
Forward-looking Disclaimer
This announcement 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 our consolidation of the
financial results of J-Devices beginning in 2016 and the addition of
$800 million in revenues, our position as the largest OSAT for the
automotive market, and the expansion of our business worldwide,
particularly in automotive ICs. These forward-looking statements involve
a number of risks, uncertainties, assumptions and other factors that
could affect future results and cause actual results and events to
differ materially from historical and expected results and those
expressed or implied in the forward-looking statements, including, but
not limited to, our ability to successfully consolidate J-Devices and
J-Devices’ financial performance in 2016, and our ability to expand our
business worldwide, especially in the automotive market. Other important
risk factors that could affect the outcome of the events set forth in
these statements and that could affect our operating results and
financial condition are discussed in Amkor’s Annual Report on Form 10-K
for the year ended December 31, 2014, and in its subsequent filings with
the Securities and Exchange Commission made prior to or after the date
hereof. Amkor undertakes no obligation to review or update any
forward-looking statements to reflect events or circumstances occurring
after the date of this announcement.
About Amkor Technology Inc.
Amkor Technology Inc. is one of the world’s largest providers of
semiconductor packaging, assembly and test services. Founded in 1968,
Amkor pioneered the outsourcing of IC assembly and test and is now a
strategic manufacturing partner for more than 250 of the world’s leading
semiconductor companies, foundries and electronics OEMs. Amkor’s
operational base encompasses more than 7 million square feet of floor
space with production facilities, product development centers and sales
& support offices located in key electronics manufacturing regions in
Asia, Europe and the USA. For more information visit www.amkor.com.
Non-GAAP Financial Measures Reconciliation
LTM September 30, 2015 ($ in Millions)
|
|
|
J-Devices’ Net Income
|
|
$
|
26
|
Plus: Income Tax Expense
|
|
|
1
|
Plus: Interest Expense
|
|
|
13
|
Plus: Depreciation & Amortization
|
|
|
73
|
J-Devices’ EBITDA
|
|
$
|
113
|
We define EBITDA as net income before interest expense, income tax
expense and depreciation and amortization. EBITDA is not defined by U.S.
GAAP. We believe EBITDA to be relevant and useful information to our
investors because it provides additional information in assessing our
financial operating results. Our management uses EBITDA in evaluating
our operating performance, our ability to service debt and our ability
to fund capital expenditures. However, EBITDA has certain limitations in
that it does not reflect the impact of certain expenses on our
consolidated statements of income, including interest expense, which is
a necessary element of our costs because we have borrowed money in order
to finance our operations, income tax expense, which is a necessary
element of our costs because taxes are imposed by law, and depreciation
and amortization, which is a necessary element of our costs because we
use capital assets to generate income. EBITDA should be considered in
addition to, and not as a substitute for, or superior to, operating
income, net income or other measures of financial performance prepared
in accordance with U.S. GAAP. Furthermore our definition of EBITDA may
not be comparable to similarly titled measures reported by other
companies.
Keywords
Amkor J-Devices merger
Amkor acquisition
Amkor
Japan OSAT
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