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

To: Jim Oravetz who wrote (1028)	5/19/2004 7:17:07 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 1056

It sounds like AMKR is trying to make a strategic move for the future. It seems to have costs up front without significant immediate revenue. That will most likely add further strain to AMKR's debt levels and reduce the likelihood of significantly reducing debt levels in the near future. It isn't immediately clear how much business AMKR will get through the deal, but presumably the contract provides that IBM will commit to a minimum level of business activity with AMKR with a possibility for more. Perhaps the deal includes transferring business others had contracted with IBM. Overall, it sounds like they are looking for revenues of around $150 million next year. I suspect that a strong motivation for AMKR is to diversify into more testing business. You have to hand it to AMKR for an aggressive strategy that certainly demonstrates a strong commitment to their vision of a positive future for assembly and testing. If they are right it may pay off big. If not, the enormous debt load may overwhelm them.