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Exhibit 99.1
News Release
Amkor Provides Update on Preliminary Results for Second Quarter
Outlook for Second Half Remains Strong
Company is Comfortable with Full Year Consensus Earnings Estimates
West Chester, PA - June 27, 2000 - Amkor Technology, Inc. (Nasdaq:AMKR)
announced that revenues for the second quarter ending June 30, 2000 are expected
to be in the range of $545 million to $555 million, compared with $450 million
in the second quarter of 1999. Amkor had anticipated higher revenue this
quarter, and the variance to plan is expected to have a $0.02 to $0.03 impact on
second quarter earnings before accounting for the equity in earnings of
investees. Amkor reported earnings per share of $0.10 in the second quarter of
1999. Amkor expects to announce final second quarter results on or about August
3, 2000.
The company said that the outlook for the second half of the year is very
strong, and management remains comfortable with the consensus of analysts'
earnings estimates for the full year.
The revised expectations for the second quarter are due to three primary
factors:
- As noted earlier this year, in response to strong demand from the PC market, a
major customer shifted a significant amount of semiconductor production from
chipsets to microprocessors. Because Amkor assembles chipsets for this customer,
but not microprocessors, this shift has resulted in a reduction in our
forecasted business with this customer of approximately $12 million for the
second quarter.
- Tight industry capacity has constrained the availability of semiconductor
wafers and components for a variety of end-markets, especially in
communications. As a result, we experienced a reduced level of die support
relative to several of our customers' forecasts. Amkor presently expects that
the reduced die support will account for approximately $11 million in revenue
shortfall from plan for the second quarter.
- During the quarter, our P3 factory in the Philippines experienced laminate
substrate contamination in connection with the manufacturing of certain advanced
packages that were only produced at P3. The problem originated at a factory of
one of P3's major substrate vendors. Safeguards have been put in place to ensure
that this problem does not occur again. During the period of identifying and
correcting this problem, certain customers were compelled to use an alternate
manufacturing source. As a result, second quarter revenue at P3 is expected to
be approximately $10 million short of plan.
John Boruch, Amkor's president, said, "The situation regarding one of our major
customers shifting production from chipsets to microprocessors is well
documented. Amkor has been working with this customer for more than 15 years,
and from time to time we experience substantial ebbs and flows in some of their
outsourcing requirements. We presently expect our business with this major
customer to strengthen significantly in the second half of the year.
"In the face of strong consumer demand, the tight market for semiconductor
wafers and certain components has been impacting virtually the entire supply
chain. We are encouraged to note that wafer availability is improving, and we
expect to see much stronger die support in the second half of the year. Much of
our anticipated growth in the second half is in the chip scale and high end
laminate packages driven by telecom and Internet-related demand. We believe our
customers have the wafer capacity identified to support this forecasted growth.
"We are working diligently to regain the affected customers at P3. This factory,
together with our K4 facility in Korea, are centers for advanced semiconductor
packaging technology. We have some very exciting programs underway at both
locations, with several of our advanced package solutions expected to move into
volume production in the coming months.
"Our outlook for the second half of the 2000 continues to be very strong, and we
remain comfortable with the consensus of analysts' earnings estimates for the
full year."
Amkor Technology, Inc. is the world's largest provider of contract
microelectronics manufacturing solutions. The company offers semiconductor
companies and electronics OEMs a complete set of microelectronic design and
manufacturing services, including deep
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sub-micron wafer fabrication; wafer probe, wafer mapping, characterization and
reliability testing; IC packaging design and assembly; multi-chip module design
and assembly; and final testing. More information on Amkor is available from the
company's SEC filings and on Amkor's web site: www.amkor.com.
This news release contains forward-looking statements - such as (1) our belief
that revenues for the second quarter ending June 30, 2000 are expected to be in
the range of $545 million to $555 million; (2) our belief that second quarter
earnings will be impacted by $0.02 to $0.03 before accounting for equity in
earnings of investees ; (3) our present comfort with the consensus of analyst
earnings estimates for the full year; (4) our expectation that business with a
major customer will strengthen significantly in the second half of the year; (5)
our expectation of much stronger die support in the second half of the year; (6)
our expectation that several of our newest package solutions will move into
volume production; (7) our belief that our customers have the wafer capacity
identified to support our forecasted growth in the second half of the year -
that involve risks and uncertainties that could cause actual results to differ
from anticipated results. Further information on risk factors that could affect
the outcome of the events set forth in these statements and that would affect
the company's operating results and financial condition is detailed in the
company's filings with the Securities and Exchange Commission, including the
Report on Form 10-Q for the fiscal quarter ended March 31, 2000.
Contact: Jeffrey Luth (Investors) Ken Jensen (Media)
610-431-9600 ext. 5613 480-821-5000
[email protected] [email protected]
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