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|Amkor Announces Interim Ruling in Tessera Arbitration|
The panel found that no royalties are due to Tessera on seven of the ten asserted U.S. patents. The panel also found that royalties are due on four foreign patents related to U.S. patents that the panel previously found to be royalty bearing. The panel has reserved for later decision the issues of the amount of royalties and pre-judgment interest due, the allocation of costs, and the question of whether Tessera intends to pursue its allegations regarding other patents which have not yet been addressed.
The Company currently estimates that the damages and interest could be
The panel also ruled that the license agreement, under which the
royalties were awarded, was terminated by Tessera as of
“Although we are disappointed that the panel did not rule in our favor
on all of the claims, we prevailed on the patents for which Tessera made
the largest claims for royalties and we expect that the amount of the
award will be well below the more than
The Company expects to record a charge to operating results in the second quarter 2012 in respect of the panel’s award. Payment of the award is not anticipated before the fourth quarter 2012, after the proceedings to determine the final amount of the award are concluded. We expect to use cash on hand and/or proceeds from borrowings under our existing credit line or other sources to make the payment.
Forward-Looking Statement Disclaimer
This announcement contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical fact are considered forward-looking statements including, without limitation, statements regarding the amount of the final damages award and interest; the effect of the panel’s order, including the termination of the license agreement, on the Company’s ongoing business, customer relationships or liquidity; the new complaint filed by Tessera, including the Company’s defense; and the timing and amount of the charge and cash payment in respect of the final award. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements, including, but not limited to, that there can be no assurance that the final damages award and interest will not be significantly more or less than the Company’s expectations or have a material impact on the Company’s liquidity; that the termination of the license agreement will not have a material impact on the Company’s ongoing business and customer relationships, including any supply arrangements with customers formerly benefiting from Amkor’s rights under the terminated license agreement; that the new complaint filed by Tessera will not result in an unfavorable outcome for the Company, including an injunction and significant damage award; or that there will not be any further disputes with Tessera or others involving the Company’s technology or business.
Other important risk factors that could affect the outcome of the events
set forth in these statements and that could affect our operating
results and financial condition are discussed in our Annual Report on
Form 10-K for the year ended
Amkor Technology, Inc., Chandler