艾克爾 (AMKR) 2006 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen.

And welcome to the Amkor Technology first quarter conference call.

At this time, all participants are in a listen-only mode.

Following today's presentation instructions will be given for the question-and-answer session.

This call will be 1 hour in duration. [OPERATOR INSTRUCTIONS] As a reminder, this call is being recorded Wednesday, April 26th, 2006.

I would now like to turn the conference over to Jim Kim, Chairman and Chief Executive Officer of Amkor.

Please go ahead, sir.

Thank you.

Good afternoon.

This is James Kim, Chairman and Chief Executive Officer of Amkor Technology.

With me today is Ken Joyce, Chief Financial Officer.

Before we begin this call, I would like to remind you that any forward-looking statement made during the course of this conference call represents the current view of management.

Prior to this conference call, today's earnings release was filed with the SEC on Form 8-K.

This release, together with our other SEC filings contain information on risk factors that could cause actual results to differ materially from our current expectations.

Our first quarter results were better than we had anticipated in all indices, and it was nice to see such good performance in what is traditionally a down quarter.

Our Q1 performance was also consistent with the evolution in our business model.

High capacity deflected the [inaudible] capital expansion.

Pricing is firm, utilization is high, we are enhancing our product mix.

We are increasing our technical and business collaboration with the strategic customers, we are enhancing our [inaudible] location, and we are improving operational effectiveness.

Consistent with my comments on last quarter's call, I am driving a cultural disciplined financial management across our organizations that should enable Amkor to increase gross margin and cash flow, reduce our debt, and enhance shareholder value.

Our strategic alliance with IBM continues to develop very well.

Amkor is clearly benefiting from IBM's success in providing wafers for each of the 3 major gaming platforms.

We expect this relationship will continue to grow through the year.

We believe that business conditions should continue to favor our models throughout 2006.

This year, we had a strong first quarter, but we also see a different environment than in 2004, when a strong Q1 was followed by an extended period of declining revenue.

Based on what we are hearing from our customers, and due to tight industry capacity, we expect modest growth in Q2, and continued growth in Q3.

Ken Joyce will review our first quarter operating performance.

Ken?

Thank you, Jim.

Q1 was a record quarter for Amkor, in terms of both revenue, $645 million, and units shipped, 2.2 billion.

We saw continued improvement in product mix, driven by increases in flip chip, System-In-a-Package, MicroLeadFrame, and 3D packaging supporting cell phones and digital entertainment.

Higher than planned revenue, coupled with improved allocation of production assets and factory productivity, enabled us to achieve gross margin of 24%, exceeding our guidance of 21 to 22%.

During the quarter, we underestimated SG&A expenses by approximately $4 million.

The higher expenses were principally attributable to higher than anticipated legal and auditing fees, and increased IT-related expenses.

Over the past several quarters, we have realized more than $16 million in annual payroll and associated benefits savings, and we continue to move forward with programs to enhance our operational effectiveness and reduce costs.

As noted in our release, we have decided to invest a portion of our increased earnings in a broad-based IT initiative to enhance our systems capability.

We are also accelerating the buildout of our new factories in China and Singapore.

As a result, we currently anticipate that year-over-year SG&A savings, previously estimated at $25 million to $30 million will be closer to $15 million.

Ultimately, the amount of annual savings will be determined by business conditions.

However, I want to stress that we are committed to achieving a meaningful reduction in SG&A expenses during 2006.

Our capital expenditure plan for 2006 remains at $300 million.

This amount includes $50 million for facilities, including our new assembly and test factory in Shanghai, China, and our new wafer bumping facility in Singapore.

We also expect to undertake a modest amount of additional capacity expansion, that would be funded by customers, under long-term supply agreements.

During the first quarter, we generated $39 million in free cash flow, and used $30 million to effect open market purchases of our 9.25% senior notes, due 2008, reducing the overall principal amount to $441 million.

We plan to retire the outstanding balance of $132 million in 5.75% convertible notes, due June 1st, 2006.

And based on current forecasts, believe we have sufficient liquidity available to satisfy the $146 million of 5% convertible notes, due March, 2007.

Both of these obligations are included in current liabilities on our balance sheet.

Looking ahead, we are currently evaluating debt and equity linked financing alternatives to refinance a portion of our intermediate term maturities.

We expect to consummate 1 or more refinancing transactions during the second quarter, depending on market conditions.

And for this reason, we will not respond to any questions asking to clarify our refinancing plans on this call.

For the remainder of 2006, we anticipate an effective tax rate of 7.5%, which reflects the utilization of U.S. and foreign net operating loss carryforwards, and tax holidays in certain of our foreign jurisdictions.

Here is a recap of our second quarter, 2006 guidance, contained in our earnings release.

Revenue should be up between 2% and 4%, sequentially.

Gross margin should be in the range of 25% to 26%.

We expect second quarter EPS to be in the range of $0.24 to $0.28 per share.

We will now open the call to questions.

Operator?

Thank you, sir. [OPERATOR INSTRUCTIONS] John Pitzer, Credit Suisse.

A couple of questions, and congratulations on a good quarter.

First, just wondering if you can just talk about business trends by vertical, specifically the PC market.

What you saw in March, and what you expect to see in June.

And then I have a follow-up question, please.

This is Jim Kim.

As you know, Amkor's role in the PC market is relatively small, compared to some of our competitors in Taiwan.

So we have not seen too much impact on that one.

And I guess, Jim, do you expect June PC business to be up or down sequentially?

We really see stable.

Not really increase or decrease from our point of view.

Timothy Arcuri, Citigroup.

A couple of things.

Number 1, one of your competitors said this morning they were getting about 5% of their revenue from the gaming sector.

And I'm wondering how your percentage exposure to that sector compares to that benchmark?

And then I had a follow-up.

Thanks.

For competitive reasons, Tim, we don't break out our exposure to the various sectors.

Okay, but would you say that it was de minimis a year ago, and it's -- and it's all happened in the past year or so?

Let me put it -- this is Jim.

I expect beginning toward end of second quarter, based on our past history, that sector will increase significantly.

Okay.

Thanks.

And then I guess the follow-up, if you look at year-over-year chip units, and you compare them to your revenue, for the past 6 or 7 years, pretty much every time year-over-year chip units peak, your revenue peaks, as well.

And mathematically, chip units kind of have to peak over the next month to 3 months.

So I'm wondering, is the offset that could drive revenue up in the back half of the year relative to what's been the case in prior years, is it the gaming exposure?

What's going to make it different this time?

Thanks.

Well, first of all, I think I may differ from you a little bit, because I visited at least 30 customers last couple of months.

And I come away with -- they're going to continue to grow increase.

I know you've been saying second half is going to be our inflection point in June to come down.

I read your report on that.

But I have not seen that.

So, yes, growth rate, we can now no longer continue to grow at 40, 50% each quarter, year-over-year.

But I really don't -- so far, I have not seen it.

Let me put that way.

Now, however, I have read it.

I agree, there is going to be slowdown, in terms of a growth rate is concerned.

But I have not seen any actual numbers going down.

Tom Diffely, Merrill Lynch.

A couple things here.

First, what do you see as in the way of pricing trends right now?

Is it more of a mix issue driving up the revenue margins, or was it pricing?

Pricing is very firm at the moment.

We aren't really raising prices right now, but we are passing on our material increases.

And that's been because of the tight capacity in the industry.

Okay.

And then moving on to the capital spending.

What kind of flexibility do you have, based on market conditions, to raise or lower the capital spending at this point?

As far as -- I'm adhering to the $300 million goal we have set.

However, as our statement indicates, we are a little bit of flexible on customer-financed funded CapEx.

And that's what we're planning -- there may be some increase above $300 million, if the second quarter continues to be what we expect at the moment.

Lead times are relatively stable right now.

And as a result of that, we can flex our CapEx really quite quickly in response to upward or downward changes in the business levels.

Andrew Biggs, Susquehanna International.

2 quick questions.

The first, can we walk through SG&A?

I know that you mentioned there were about $4 million in unexpected costs in Q1.

How is that going to look over the rest of the year, because it looks like it has to drop about $2.5 million a quarter to hit that $15 million reduction, year-over-year.

Can you walk us through that?

I think your assessment is right on target.

It's going to have to be drops of about $2 million, and we believe that we have a program in place to achieve that.

We were caught unawares this quarter, as I say.

Our legal expenses went up a little higher than we had planned.

As you're aware, we have the class action lawsuit.

We have some ongoing litigation with respect to a license with [Tesra] and also with Motorola.

So our litigation expense is -- also our auditing fees went up substantially in connection with -- higher than we thought in connection with completing some of our 404 work.

So we were a little underaccrued last year.

Okay.

And a follow-up on the Kim remodule business in Korea.

You took a $4 million charge to shut that down.

What was the revenue associated with that on a quarterly basis?

I don't have that right at my hand, but obviously the revenues were not high enough to support the asset values.

Cost very minimal, if I recall.

Really, I don't remember, but it was not significant amount.

Jeff Harlib, Lehman Brothers.

Can you just talk about your unit growth versus price in Q1, and what's implicit in your guidance?

And just related to that, the gross margin improvement, is that continued product mix improvement, cost savings?

Maybe you can just talk about that.

Well, first, as far as units, our units were up slightly, sequentially.

They were $2.2 billion this quarter, versus $2.1 billion last quarter.

But it's not really so much the units that count for us, it's the number of pins.

So you have a change in product mix, you have a shift in the number of pins.

The ASP, or selling price per pin, the average selling price, is actually up slightly.

So you can't just look at units, you have to look at the number of pins which reflects the mix.

And over and above that, you now have the new complication of looking at the flip chip business running through there.

And the module business.

And the module business.

So it's not just a question of looking at units.

And the gross profit -- this is Jim.

Gross profit improvement is coming, not from only there, but product mix is really another important one.

And also, asset allocation.

Better efficiency in our use of asset is what is improving our gross margin.

And that's what I think we're going to continue to make improvements.

Yes.

I don't think that we're at our maximum operating leverage right now.

We continue to work on improving asset productivity.

We're working on cost reduction targets in our factories.

During Q3 and 4, we will have to absorb some additional costs associated with the ramp of our new factories in China and Singapore.

But once these costs are absorbed, we should be able to further enhance our operating leverage.

So we're working very hard, once again, on reducing the cost, as well as improving productivity.

Okay.

And last thing, capacity utilization.

I think it was 90% last quarter.

What was it in Q1, and how do you see it in Q2?

Our capacity utilization in Q1 is around 85%, and we would expect about the same in Q2.

It's a definition issue.

We are almost full.

Dave Egan, Lehman Brothers.

Just to follow-up on Jeff's questions there.

Could you talk a little bit more about which package types were you were seeing the demand in?

Because if you look at the percentage of revenue mix, it looks like the laminate was down quarter-over-quarter.

So could you just talk a little bit about that?

And then second question, follow-up.

One of your peers this morning, was saying that they expect materials for some of the materials costs to go down in the second quarter.

How do you think -- how will that impact your revenues and gross margins, if you are actually able to pass through all the materials cost at this point to your customers?

Well, the first question with respect to product mix.

We saw a relative increase in our lead frame business in Q1, due to strong demand for advanced lead frame packages, especially our MicroLeadFrame, which supports for wireless and consumer products.

With respect to the materials, we've been trying to, as I say, pass those costs on.

And we will continue to pass them on.

He's asking about decreases in material costs.

Again, I haven't seen anything yet, frankly in decrease in materials.

Nor have we.

So do you think that it's most likely we're going to see a stable environment?

Or do you think that that is something that is likely to continue to see rises?

I think it's improving, let me put that way.

It is definitely improving, but I have not seen decrease, what I'm saying.

Commodity prices have continued to increase, as you know.

And now the rate of increase is more moderate than it was, let's say, last year.

But we have been able to -- effective to be able pass these on to our customers.

Bill Ong, American Technology Research.

Congratulations.

Just all the execution over past couple of quarters.

My question is on depreciation.

Can we expect the depreciation level to stay in the 60 to $70 million over next couple quarters?

And also what kind of gross margins can we expect, assuming revenues continue to climb?

You're right on target on depreciation.

Depreciation should go up around $3 million in Q2, and then it will flatten at around -- in the range of $70 million per quarter for the balance of 2006.

With respect to gross margins, as I said a little earlier, we don't think we're at the maximum operating leverage.

But that being said, depending on the product mix, we believe that gross margin should be in the mid to higher 20% range.

And then, what kind of share count assumptions can we assume for the second quarter?

I'm sorry, I missed that.

Share count for June quarter, assumption?

192 million.

Great.

That's fully diluted.

Okay.

Thanks.

And congratulations, again.

Sundar Varadarajan, Deutsche Bank.

I have a couple of questions, actually. 1, on the flip chip side, obviously you guys are making a lot of progress there.

Could you quantify at this point what percent of your revenue is actually coming from flip chip, and where do you expect to be by the end of the year?

And then I have another question.

The flip chip is in the range of around 12 to 15%, and it will probably stay in that range through the balance of the year.

And what kind of gross margin profile does that have?

We really don't break out our gross margins for competitive reasons, Sundar -- .

No, but is it higher, lower than the average, or what does it do -- ?

Higher.

And then on the CapEx front, you mentioned this last quarter, too, in terms of customer or customer-funded type CapEx.

Have you already done any of that right now, or is it more more something that you're thinking about for the latter part of the year?

No, we have done some of that already.

In fact, there is some of it reflected -- some of the customer advances are reflected on our balance sheet.

So yes, we have completed some.

I mean, do they own the asset then?

Or is it more in the form of an advance that you pay back over a period of time, and then you end up owning the asset?

How does that work?

We own the assets, and they get paid back over time.

Peter Kim, Deutsche Bank.

I had a question about your gross margin.

You're anticipating gross margins to climb about 10 to 20 basis points on a slight increase in revenue.

Is that primarily due to the mix, or is it due to an increase in revenue?

Both.

Again, better utilization of asset is the main reason, and product mix.

So I noticed that in the previous question you had answered that revenues from flip chip was about 12 to 15% and that was quite a bit above the -- just below 10% you said last quarter.

And you expect this capacity to remain at current levels for the balance of the year?

I think we said a little earlier, I think it's going to be in the range of 12 to 15% for the year.

Oh, I see, for the full year, not -- ?

The full year, yes.

So what was it this quarter?

It was in the range of 12 to 15%.

And last 1.

There was a comment made this morning by one of your competitors talking about many of their customers shifting from wire bonding to flip chip.

Are you seeing that right now?

And what should I look purchasing [inaudible] going forward?

Well, we certainly see flip chip as an increasing market, and that's why we made the strategic decisions we did in 2004 to make investments to the Unitive leading edge technology.

And our alliance with IBM helped out also.

So yes, flip chip is a very important and growing part of our business.

The second part of your question, I'm sorry?

Hello?

One moment, please.

Okay.

One moment, please, sir.

Mr. Kim, please go ahead with your question.

So the second part of that question, was the [inaudible] wire bonders.

Do you anticipate that revenue base growing, and therefore you're going to need to invest more on wire bonders?

Sure.

I mean, wire bonded products have been a strong part of our business.

And yes, we would be buying some -- .

Fine pitch is an area -- as [inaudible] changes, we are continuing invest more in the fine pitch.

Great.

Thank you.

Eric Rubel, Miller Tabak Roberts.

Thanks for taking my call, and nice execution in the quarter.

Ken, with the model changing, flip chip growing as a percentage of revenue, can you give us a sense of what kind of incremental margin we should be looking at as revenue ramps to see the gross margin improve throughout the quarter?

I think as long as the mix stays pretty stable, if we assume that.

And we assume a capacity above 85%, where we're at right now, you can assume an incremental margin -- overall margin of 50%, I think is a fair number.

That's excellent.

Gross margin, that is, Eric, I'm sorry.

Can you talk a little bit about sort of how you -- the discipline that you're applying to CapEx.

It seems as though there might have been some weakness maybe at the beginning of the quarter.

And then maybe OSATs, like yourself, may have pulled some orders in.

How is that -- it seems like the model is much more finely tuned to adding in CapEx.

And if you could elaborate on that a little bit.

If you look at our numbers, in fact, it's a little heavy loaded in Q1, because we did 103 million, wasn't it?

And we expect the second quarter to be about same.

So out of 300 million -- and if you take the facilities out of 50 million, out of 250 million, we're going to be committing large part in the first half.

So I don't know exactly what you're driving at that particular point.

Lance Vitanza, Concordia.

Congratulations on the great couple of quarters here.

Could you -- or did you earlier, did you reiterate your CapEx guidance?

We did.

Our CapEx guidance for the year is still $300 million.

Okay, and I was a little unclear at one point when you were talking about investing in some improved efficiencies.

Were you just talking about, you're just reducing your expected SG&A savings?

You're not actually talking about CapEx budget to help facilitate '07 cost savings?

No, you're absolutely correct.

Okay.

Could you provide some more color on how that actually might work, and what that looks like?

Just qualitatively.

Yes, we're looking at a -- from the standpoint where we're putting it a total new ERP system worldwide, and we're going to be implementing that throughout all of our factories.

It's a multi-year project.

And it will allow us to interface much better with the entire supply chain, both our customers and our vendors, and of course, internally for our internal customers.

Shekhar Pramanick, Moors & Cabot.

Congratulations, first of all, great quarter here.

The question I have is the July 1st European Union is starting the lead-free initiative.

And how much of the chips you're shipping today are already compliant to that?

And is there -- how do you see, how does it play out in terms of preparedness in all of that?

About 80%, I think lead-free, I believe.

That's the number I can think of right now.

I believe that's right, Jim.

And we also would say that in the flip chip, the technology that we use is one of the only lead-free bump processes out there.

So I believe we have the advanced technology with respect to bumping wafers with respect to the flip chip process.

Is there potential for you to gain maybe some market share as the July 1st roll in?

We sure hope so.

Time will tell.

And do you see your competition being not prepared on this front?

Or how would you position their preparedness?

I'm sure they're working on it.

I'm sure they're working on it, as Jim said.

I will never underestimate them.

But we'd like to think we're the leader in that regard.

But yes, I'm sure they're working on it.

Eric Toubin, Banc of America Securities.

I just wanted to get a better understanding of how the CapEx will play out this year.

I think Jim said $100 million in 2Q, so then the maybe 50/50 in each of the back half quarters?

That's the way it's looking right now, Eric, yes.

Okay.

And then, I guess along those same lines, could you share what your expectations are for free cash flow over the next quarter or 2?

I think we're looking at some good cash flow.

I would say that. as you know, effective June 1st, we have to pay down $133 million of the convertible notes.

And that's in our cash number.

So I would, to give you some kind of a target to work with, we would estimate exiting Q2 with of cash of $125 to $150 million, after paying down the convertible note.

And that will -- and quite frankly, I think we're in a pretty strong position cash-wise, because as you're aware, we also have the $100 million revolver.

And at this time, it does not look like we have to draw upon that to pay down the convertible note.

Philip Lee, JPMorgan.

This question is for James.

Regarding the customer financed CapEx, can you talk a little bit on whether you're getting any better pricing or take-or-pay terms, or the length of the long-term agreement?

Ken, you can answer if you like.

Okay.

This is Ken Joyce.

We are entering into some take-or-pay, but each of the contracts are a little bit unique.

We are not reducing prices, though, however, to obtain these contracts.

So it's full contract pricing.

And each one is a little different.

As I say, some are take-or-pay up front, some are pay up front, and you get your money back over the term of the contract.

But there's no discount pricing in that regard.

Is the pricing going up?

As I said before, we're really not trying to increase prices, as much as we are to recover our material costs.

Okay.

And then 2 quick housekeeping questions.

What was the stock comp and the breakdown between SG&A, et cetera?

And then secondly, what was the add back of the converts for the diluted EPS calculation?

Yes, well, first, the 123R stock compensation expense is less than $0.01 a share.

It's approximately -- it's less than $1 million for Q1.

Okay.

That's number 1.

As far as the shares being added back on the convert side, it's approximately 13 million shares.

What about the interest expense add back for the EPS calculation?

You would subtract that out, right?

Right.

Yes, you would subtract that out.

So what's that number?

[inaudible] I don't have the number right in front of me.

You can calculate that.

All right.

Thank you.

Mike Lanier, AIG.

In the press release you talked about maybe doing an equity-linked financing here in the second quarter?

We did, but we're not prepared to comment on that right now.

Oh, you just don't want to touch that one?

As we said in the conference call here, we have been looking at some alternatives, but we're not prepared to talk to them on this call.

All right.

Thank you.

[OPERATOR INSTRUCTIONS] John Pitzer, Credit Suisse.

Just real quick, on your CapEx for the full year of 300 million, does that include the customer financed capacity additions?

And if it doesn't, can you help us come up with a pro forma number?

And then I have a quick follow-up.

Again, if you read it correctly, $300 million is what we are plan to spend for ourselves.

But in case there is a demand, there are customer financed, which already exists.

There are already some contracts which call for it.

Therefore, yes.

We'll spend some modest amount above $300 million, for customer financed portion.

And Ken, I know you don't want to talk about the deal specifically.

But I'm kind of curious, is the preference here to extend the maturity on the existing debt, or to actually try to use equity to pay down absolute debt on the balance sheet?

We won't be issuing -- I'll say this.

We won't be issuing equity, but other than that, I can't comment on these transactions we're talking about right now.

Okay, thanks, Ken.

Lance Vitanza, Concordia.

Actually, my questions have been answered.

Thank you.

Frederick Brown, Janney Montgomery Scott.

Gentleman, congratulations on a great quarter.

This is really more of a comment.

I attended the last couple of annual meetings in the suburbs of Philadelphia, and they were somewhat not as happy as this conference call has been.

I'm delighted to see the stock at 12, or thereabouts.

At the time, maybe 2 years ago, it was 4 or 5.

And 1 comment, an additional comment.

Mr. Kim, I believe purchased an entire convertible bond issue not too long ago, maybe 6, 7, 8 months ago.

And Mr. Kim, I give you a lot of credit.

You've been a leader in your Company, and as a shareholder and my clients are -- patience is a good thing.

Thank you very much.

You're welcome, sir.

Tim Ling, Basso Capital.

I was wondering if you can just make general comments about where the industry is headed, and Amkor vis a vis your competition?

Are you obtaining more market share, relative to the competition?

Or is it because of your focus on different industry sectors which allows you to grow as your top line so nicely, as you have guided to in the second quarter this year?

First of all, you know our visibility is really limited to 3 to 6 months, because our customers also visibility very limited by end customer.

So I think saying beyond what we have in the press release or our conference call, I don't think I can make any comments.

With regard to market share, again, my focus at the moment, our Company's focus is in improving our efficiency.

Operating efficiency.

So frankly, I really don't have any update number whether we gained market share or not.

But I'm sure by product, product basis, I'm sure there are some we gain, some we lose.

So again, company is focused on profitability is our goal.

Just on a blended average, are your prices cheaper than the competition now, or how does that play out?

I really don't know.

I think you have to wait to see what happens to market share.

I'm sure they're competitive.

Okay.

And a final question.

Is -- in the industry right now, your competitors have been very disciplined in terms of capital expenditures going forward.

Do you see this balance continuing for the duration of this year?

Yes, I have to agree with that statement, yes.

Okay.

All right.

Thank you.

Dave Egan, Lehman Brothers.

Guys, just imagine -- if we could imagine what -- the way that you're talking about the year, it sounds like it's fairly moderate growth.

What do you think the year would actually have looked like if the industry had stayed in the capacity addition mode mind-set that it was in last year and in 2004, with pricing environment being kind of weak?

What kind of growth do you think we'd be seeing this year?

Boy, that's a very hypothetical question and really very hard to answer.

I mean, real hard to answer.

Again, that's why refer to 2004. 2004, we definitely had a strong Q1, but followed the prolonged decline.

I think that's why everyone is very cautious in CapEx.

And those disciplined in conjunction with market condition.

As you know, communication areas and consumer areas are very strong right now.

So, earlier one question about the second half.

But so far, I have not seen any slow down in second half.

In fact, we are expect to, based on what customers are telling us, we expect to continue to grow.

Okay.

Great.

Thanks.

Jeffrey Brown, Credit Suisse.

Sorry, I got cut off on the call earlier.

But given where your CapEx is, are you guys walking away from any business that's out there, just based upon it's just not [margin] enough.

I'm trying to get a sense as to, at what point do you kind of pull the trigger and start to spend more CapEx again?

Boy, that's tough one to answer.

I'm sure if you ask my sales guys, they think I'm walking away.

But let me put this way, we are becoming much more prudent in where to invest.

And because, as I said earlier, visibility is an issue in our business.

We learned the hard way that you really cannot just trust what customer says, and then invest.

So now, we are going for risk sharing with the customers.

Okay.

Thanks a lot.

Mr. Kim, there are no further questions at this time.

Please continue with any concluding remarks you may have.

Well, thank you very much for participating on our conference call.

And we look forward to speaking with you again next quarter.

Ladies and gentlemen, this does concluded the Amkor Technology first quarter results conference call.

If you would like to listen to a replay of today's conference, you may do so by dialing 303-590-3000 and entering the passcode 11053998, followed by the pound sign.

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