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Technology Stocks : Amkor Technology Inc (AMKR) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (984)	6/27/2002 12:51:08 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 1056

Amkor Sees $140M Cash At June 30 DOW JONES NEWSWIRES CHANDLER, Ariz. -- Amkor Technology Inc. (AMKR) expects to record a second quarter impairment charge of $250 million to $350 million for underutilized test and assembly assets and related goodwill. After its stock fell 30.5% on Tuesday, Amkor said "we see no reason for the recent, sharp decline in our stock price." The microelectronics assembly and test services company reaffirmed its guidance for second quarter assembly and test revenue, but said wafer fab revenue will be "roughly flat" with the first quarter, reflecting weak demand from Texas Instruments Corp. (TXN). Amkor previously expected a "modest" sequential increase for wafer fab revenue. Amkor Technology shares closed Tuesday at $3.90, down $1.71. The company expects to record a second quarter charge of about $2.5 million for steps including a non-factory work force reduction designed to help efficiency and reduce costs. Amkor expects these moves to yield ongoing cash cost savings of approximately $13 million per year. The company expects second quarter assembly and test revenue to increase about 20% from the first quarter, and projects a double-digit sequential increase in third quarter assembly and test revenue. Amkor Technology, which will record the impairment charge based on FASB 142 and 144 accounting guidelines, said appraisals before its earnings release may lead to a higher or lower charge. Amkor said its liquidity is "sound," and the company has no "outstanding issues regarding our bank covenants." Amkor expects to have about $140 million in cash as of June 30. The company's $100 million revolving credit facility remains unused. Analyst estimates compiled by Thomson First Call project Amkor will lose 45 cents a share in the second quarter and 29 cents a share in the third quarter.