TEMPE, Ariz. — (BUSINESS WIRE) — January 6, 2016 — 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.
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|