Amkor Technology Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Third quarter net sales of $616 million were up 22% sequentially from the second quarter of 2009 and down 14% from the third quarter of $720 million in 2008. Third quarter net income was $81 million or $0.31 per diluted share compared to $9 million or $0.05 per diluted share in the second quarter. Net income for the third quarter of 2008 was $29 million, or $0.15 per diluted share. Net income for the third quarter of 2008 included a charge of $52 million or $0.25 per diluted share, relating to the resolution of a patent license dispute. The company reported operating income of $87.8 million and income before income taxes of $50.14 million compared to operating income of $54.5 million and income before income taxes of $46.1 million for the same period a year ago. Net cash provided by operating activities was $123 million against $173 million last year. For the nine months ended September 30, 2009, the company reported net income attributable to the company of $68 million or $0.32 per diluted share on net sales of $1,511.5 million compared to net income attributable to the company of $166.4 or $0.84 per diluted share on net sales of $2,109.9 million for the same period a year ago. The company reported operating income of $115.5 million and income before income taxes of $42.5 million compared to operating income of $237.6 million and income before income taxes of $194.1 million for the same period a year ago. Net cash provided by operating activities was $156.8 million compared to $457.4 million for the same period a year ago. Purchases of property, plant and equipment was $112 million compared to $317.12 million for the same period a year ago. The company expectations for the fourth quarter of 2009, net sales flat, plus or minus 2%, from the third quarter of 2009. Net income in the range of $0.17 to $0.23 per diluted share.

Nakaya Microdevices Corporation, Amkor Technology, Inc. and Toshiba Corp. announced that they have signed definitive agreements for the formation of a joint venture to provide semiconductor assembly and final testing services in Japan. NMD, Amkor and Toshiba entered into discussions regarding a possible joint venture at the start of this year, and announcement follows an April 28, 2009 memorandum of understanding between the parties. The new company is expected to begin operations on October 31. Under the terms of the definitive agreements, NMD will become a joint venture, 60% owned by the existing shareholders of NMD, 30% by Amkor and 10% by Toshiba, and it will change its name to J-Devices Corporation. Under the definitive agreements, the following equipment and operations will be transferred to J-Devices: the back-end process business, including technology development, at Toshiba LSI Package Solutions Corporation; the system LSI and memory back-end process equipment at TPACS' Oita Works and Fukuoka Works; and certain wafer probing equipment installed at Toshiba's Oita Operations. TPACS' employees working for the transferred business will engage in the same business at J-Devices. Amkor is expected to invest approximately ¥1.5 billion (approximately $17 million) in J-Devices and to purchase certain assembly and test equipment from Toshiba for about ¥4.0 billion (approximately $45 million) and lease such equipment to J-Devices. Toshiba is expected to invest approximately ¥0.5 billion. In addition, Amkor will have the right to acquire a majority interest in J-Devices in 2012.

Amkor Technology, Inc., Q3 2009 Earnings Call, Oct 27 2009