Stock Alert for Amkor Technology Inc. (AMKR)

Amkor Technology Inc. (AMKR) is a subcontractor of semiconductor packaging and test services. The Company’s packages are designed for application specific body size and electrical connection requirements to provide optimal electrical connectivity and thermal performance. The company offers flip chip and wafer level packages in which the semiconductor die is connected directly to the package substrate or system board; three dimensional (3D) package-on-package and stacked chip scale packages in which the individual chips or individual packages are stacked vertically to provide integration of logic and memory; advanced leadframe packages, which are thinner and smaller packages; multi-chip or system-in-package modules used in mobile phones and other handheld end-products; and packages for micro-electromechanical system devices that are used in automotive, industrial, and consumer electronics markets. It also provides a line of advanced probe and final test services for analog, digital, logic, mixed signal, and radio frequency semiconductor devices. Its customers include Altera Corp.; Atmel Corp.; Infineon Technologies AG; Intel Corp.; International Business Machines Corp. (IBM); LSI Corp.; ST Microelectronics Pte.; Texas Instruments Inc.; Toshiba Corporation and Qualcomm Inc.

The Company was founded in 1968 and is headquartered in Chandler, Arizona.

Share Statistics (Jul-22-10)			FY 2007	FY 2008	% Chg	Q4 2008	Q4 2009	% Chg
Symbol	AMKR	Revenue, $Mn	2.74B	2.66B	2.9%	548.7M	667.6M	21.7%
Current price	$5.64	Gross marg.	24.9%	21.5%	13.7%	n/a	26.3%	n/a
52wk Range:	$8.81-5.12	Oper. Margin	13.7%	-14.0%	202.2%	n/a	16.3%	n/a
Avg Vol (3m):	3,251,670	Net margin	8.0%	-17.2%	315.0%	n/a	13.2%	n/a
Market Cap.	1.04B
Shares Outst.	183.7M	EPS, $	1.11	-2.50	325.2%	-3.40	0.33	109.7%

Source: Reuters.com, SEC Filings.

Financial Summary

AMKR a leading provider of semiconductor assembly and test services, recently reported its financial results for the quarter ended March 31, 2010.

First quarter 2010 net sales of $646 million were down 3% sequentially from the fourth quarter 2009 and up 66% from the first quarter 2009. Gross margin was 21% for the first quarter, compared to 26% for the fourth quarter 2009 and 12% for the first quarter 2009. First quarter 2010 net income was $44 million or $0.18 per diluted share, compared to $88 million or $0.33 per diluted share in the fourth quarter 2009 and a net loss of $22 million, or $0.12 loss per share, in the first quarter 2009.

Business Outlook

• Net sales of $710 million to $736 million, up 10% to 14% from the first quarter of 2010
• Gross margin between 22% and 23%
• Net income in the range of $56 million to $70 million or $0.22 to $0.27 per diluted share

Financial Strength (Jul-22-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	1.24	0.52	1.33	0.75
Current Ratio (MRQ)	1.49	0.63	1.55	0.91
Long-Term Debt to Equity(MRQ)	304.13	8.16	17.53	112.91
Total Debt to Equity (MRQ)	333.46	12.95	28.79	176.21

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast amongst 4 polled investment analysts. Against the Amkor Technology Inc company.

Analyst Detail	Buy	Outperform	Hold	Underperform	Sell	No Opinion
Latest	1	1	1	0	1	0
4 weeks ago	1	1	1	0	1	0
2 months ago	0	1	2	0	1	0
3 months ago	0	1	2	0	1	0
Last year	0	0	4	0	0	0

The 4 analysts offering 12 month price targets for AMKR have a median target of 8.00, with a high estimate of 12.00 and a low estimate of 7.50. The median estimate represents a 49.25% increase from the last price of 5.36.

Source: www.ft.com

Consensus Estimates Analysis

	# of Estimates	Mean	High	Low	1 Year Ago
SALES (in millions)
Quarter Ending Sep-10	2	760.75	769.99	751.50	562.49
Quarter Ending Dec-10	2	752.20	777.70	726.70	596.24
Year Ending Dec-10	2	2,878.60	2,916.40	2,840.80	2,145.81
Year Ending Dec-11	2	3,022.10	3,150.80	2,893.40	–
EARNINGS (per share)
Quarter Ending Sep-10	3	0.35	0.38	0.30	0.14
Quarter Ending Dec-10	3	0.34	0.39	0.27	0.21
Year Ending Dec-10	4	1.08	1.20	0.98	0.16
Year Ending Dec-11	4	1.12	1.35	0.71	0.74

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=AMKR.O

Investment Highlights

AMKR recently announced that the International Trade Commission (the “Commission”) has issued a Notice of Commission Final Determination (the “Notice”) dated July 20, 2010, in which the Commission determined that there is no violation of Section 337 of the Tariff Act in Amkor’s patent infringement case against Carsem.

On November 9, 2005, the Administrative Law Judge (the “ALJ”) issued a ruling that Carsem’s Dual and Quad Flat No-Lead Packages infringe certain claims of one of Amkor’s patents relating to MicroLeadFrame^(R) (MLF) technology, that all of Amkor’s asserted claims for that patent are valid, and that Carsem violated Section 337 of the Tariff Act. On February 18, 2010, the Commission found that a certain invention constituted prior art to Amkor’s asserted patents, and remanded the investigation to the ALJ for further findings. On March 22, 2010, the ALJ found that the infringed claims of the Amkor patent are invalid in light of the Commission’s finding. Accordingly, the ALJ found no violation of Section 337.

In the Notice issued by the Commission on July 20, 2010, the Commission determined not to review the ALJ’s findings in either of the prior rulings and terminated the investigation. The Notice indicates the Commission will issue an opinion supporting its determination in the future.

AMKR will issue its financial results for the second quarter 2010 after the close of trading on the NASDAQ Global Select Market on Wednesday, August 4, 2010. At 5:00 p.m. ET, AMKR management will host a conference call to discuss the Company’s financial results.

This call is being webcast by Thomson Reuters and can be accessed at the Company’s website: www.amkor.com. You may also access the call by dialing 877-941-2928. A replay of the call will be made available at Amkor’s website or by dialing 800-406-7325 (access passcode #4327244).

The webcast is also being distributed over Thomson Reuters’ Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Reuters’ individual investor center at www.companyboardroom.com or by visiting any of the investor sites in Thomson Reuters’ Individual Investor Network. Institutional investors can access the call via Thomson Reuters’ password-protected event management site, StreetEvents (www.streetevents.com).

Source: http://www.amkor.com/

Technical Analysis

Source: http://stockcharts.com

AMKR is below its 50 day moving average. This bearish sign is even more significant because the moving average is also trending lower.

AMKR is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

AMKR’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jul-22-2010	symbol	Share, $	$ Mn	2010	2011	2010	2011
Siliconware Precision Indust. Inc.	SPIL	5.25	3.30B	10.53	n/a	1.81	n/a
ChipMOS Tech. (Bermuda) Ltd.	IMOS	1.26	139.91M	n/a	n/a	0.29	n/a
Atmel Corp.	ATML	5.27	2.43B	n/a	n/a	1.96	n/a
Semiconductor Median			1.95B	n/a	n/a	1.35	n/a
Amkor Technology Inc.	AMKR	5.64	1.04B	6.52	n/a	0.46	n/a

Source: Thomson Financial

Insider Trading Activity

NET SHARES PURCHSE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	12,900	1
Sales	n/a	0
Net Shares Purchased (Sold)	12,900	1
Total Insider Shares Held	70.57M	n/a
% Net Shares Purchased (Sold)	0.0%	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	(11,955,500)
% Change in Institutional Shares Held	(12.84%)

Source: Yahoo Finance

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