Amkor Technology (AMKR) Acquires Remaining J-Devices Shares

Amkor Technology Inc. (Nasdaq: AMKR) 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.

“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.

Non-GAAP Financial Measures Reconciliation

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.

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