MagnaChip Reports Results for Second Quarter 2020

Rhea-AI Summary

MagnaChip Semiconductor Corporation (NYSE: MX) reported Q2 2020 financial results, showing resilience amid COVID-19. Key highlights include revenues from continuing operations at $118,828K, down 1.4% QoQ and 15.7% YoY. Adjusted net income rose 335.3% QoQ to $4,753K. The gross profit margin increased to 27.0%, up 2.8 points QoQ. The company anticipates closing the sale of its Foundry Services by Q3 2020, a shift from earlier estimates. Despite a power outage causing damages of $2.3 million, the revenue impact is expected to be negligible.

Positive

• Adjusted net income increased 335.3% QoQ to $4,753K.
• Gross profit margin improved to 27.0%, up 2.8 points QoQ.
• The pending sale of Foundry Services Group expected to close in Q3 2020.

Negative

• Revenues from continuing operations decreased 1.4% QoQ and 15.7% YoY.
• Power outage damage estimated at $2.3 million, with negligible revenue impact.

SEOUL, South Korea and SAN JOSE, Calif., July 30, 2020 /PRNewswire/ -- MagnaChip Semiconductor Corporation (NYSE: MX) ("MagnaChip" or the "Company") today announced financial results for the second quarter of 2020.

"We executed well and delivered an excellent quarter despite market disruptions caused by COVID-19 by achieving key financial metrics above expectations, said YJ Kim, MagnaChip's chief executive officer. In addition to delivering outstanding financial results, our team is making substantial progress with the pending sale of our Foundry Services Group business and Fab 4. Based on the progress we made so far, we now anticipate that the transaction likely will close in the third quarter instead of our previous estimate of the September-October timeframe."

"The new MagnaChip is undergoing a dramatic transformation to accelerate our profitability. While we can't be completely immune to the risk of COVID-19 and macroeconomic conditions, we will continue our relentless execution to deliver a successful close of the pending transaction and strengthen our business foundation for profitable growth."

Q2 2020 Financial Highlights

The following table sets forth certain financial and other information relating to the continuing and discontinued operations. Following the execution of the definitive agreement to sell the Foundry business and Fab 4, the Foundry Services Group has been accounted for as a discontinued operations beginning in the first quarter of 2020.

In thousands of US dollars, except share data
		Q2 2020	Q1 2020	Q/Q change	Q2 2019	Y/Y change
Revenues
	Continuing Operations(1)	118,828	120,473	down 1.4 %	140,885	down 15.7 %
	Standard Products Business(1)	108,955	110,736	down 1.6 %	132,006	down 17.5 %
	Foundry Services Group	95,779	86,279	up 11.0 %	73,139	up 31.0 %
	Non-GAAP Combined Total Revenues(2)	204,734	197,015	up 3.9 %	205,145	down 0.2 %
Gross Profit Margin
	Continuing Operations(1)	27.0%	24.2%	up 2.8 pts	22.4%	up 4.6 pts
	Standard Products Business(1)	29.5%	26.3%	up 3.2 pts	24.0%	up 5.5 pts
	Foundry Services Group(3)	32.3%	24.0%	up 8.3 pts	16.7%	up 15.6 pts
	Non-GAAP Combined Total Gross Profit Margin(2)(3)	30.8%	25.3%	up 5.5 pts	21.4%	up 9.4 pts
Net Income (Loss)
	Continuing Operations	11,774	(31,078)	up 137.9 %	(8,490)	up 238.7 %
Diluted Earnings (Loss) per Common Share
	Continuing Operations	0.28	(0.89)	up 131.5%	(0.25)	up 212.0%
In thousands of US dollars, except share data
		Non-GAAP(2)
		Q2 2020	Q1 2020	Q/Q change	Q2 2019	Y/Y change
Continuing Operations
	Adjusted Operating Income	10,125	7,281	up 39.1 %	9,423	up 7.4 %
	Adjusted Net Income	4,753	1,092	up 335.3 %	3,829	up 24.1 %
	Adjusted Net Income per Common Share—Diluted	0.13	0.03	up 333.3 %	0.11	up 18.2 %
In thousands of US dollars
		GAAP
		Q2 2020	Q1 2020	Q/Q change	Q2 2019	Y/Y change
Revenues - Standard Products Business
	Display Solutions	69,176	77,593	down 10.8 %	84,261	down 17.9 %
	Power Solutions	39,779	33,143	up 20.0 %	47,745	down 16.7 %

(1) Following the consummation of the sale of the Foundry Services Group business and Fab 4, and for a period up to three years, the Company will provide transitional foundry services to the buyer for Foundry products manufactured in the Company's fabrication facility located in Gumi ("Transitional Fab 3 Foundry Services"). For the periods prior to the disposal of the Foundry Services Group business and Fab 4, revenue from the Transitional Fab 3 Foundry Services by the Company to the Foundry Services Group (i.e., discontinued operations) is recorded at cost as part of its continuing operations. Management believes that excluding the revenue of the Transitional Fab 3 Foundry Services from the continuing operations (i.e., revenue from standard products business) allows investors to better understand the results of continuing operations of our core standard products display solutions and power solutions businesses.

(2) Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting MagnaChip's business and operations and assist in evaluating our core operating performance, as well as providing a meaningful comparison to previous information provided on a basis prior to the discontinued operations classification of the Foundry Services Group. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income from continuing operations or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

(3) In the second quarter, depreciation and amortization associated with the assets classified as held-for-sale ceased, which resulted in an increase in gross profit from discontinued operations by approximately $2 million.

Q3 2020 financial guidance

On July 20, 2020, our Fab 3 facility in Gumi, South Korea experienced a temporary power outage for approximately 9 hours and 15 minutes as a result of an accident involving branches of a nearby tree falling onto cables connecting one of the electricity pylons that supplies power to the Gumi plant. We are nearly fully operational in our Fab 3 facility as of the date of this earnings report. The accident caused damage to our work-in-process wafers with an estimated total cost of up to approximately $2.3 million. The related impact to our revenue from continuing operations is expected to be negligible. We are currently evaluating potential insurance and other claims that we may have for the above loss and damages.

As we expect to close the pending sale of the Foundry business and Fab 4 in Q3, we will provide a quarterly outlook on continuing operations only. The COVID-19 global pandemic and escalated trade tension are rapidly evolving situations and reduce our forward visibility. While actual results may vary, MagnaChip currently anticipates for Q3 2020:

• Revenue from the continuing operations to be in the range of $118 million to $124 million, including $9.5 million to $10 million of the Transitional Fab 3 Foundry Services at cost
• Gross profit margin from continuing operations to be in the range of 25% to 27%
• Without the estimated power outage impact, gross profit margin from continuing operations would have been in the range of 27% and 29%

Second Quarter 2020 Earnings Conference Call

MagnaChip will host a conference call at 5 p.m. Eastern Time on July 30, 2020. The conference call will be webcast live and also is available by dialing toll-free at 1-844-536-5472. International call-in participants can dial 1-614-999-9318. The conference ID number is 8269223. Participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. ET start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com. A replay of the conference call will be available the same day and will run for 72 hours. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056.  The access code is 8269223.

Safe Harbor for Forward-Looking Statements

Information in this release regarding MagnaChip's forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about MagnaChip's future operating and financial performance, outlook and business plans, including third quarter 2020 revenue and gross profit margin expectations, the evaluation and expectation of costs and related revenue impact and timing as a result of the power outage, and the impact of the COVID-19 pandemic and escalated trade tensions on MagnaChip's third quarter 2020 and future operating results. All forward-looking statements included in this release are based upon information available to MagnaChip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to the COVID-19 outbreak, recessions, economic instability and the outbreak of disease; the impact of competitive products and pricing; timely design acceptance by our customers; timely introduction of new products and technologies; ability to ramp new products into volume production; industry wide shifts in supply and demand for semiconductor products; industry and/or company overcapacity; effective and cost efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses which can be eliminated; compliance with U.S. and international trade and export laws and regulations by us and our distributors; the risk that the pending sale of our Foundry Services Group business and the Fab 4 facility to Magnus Semiconductor, LLC or one of its wholly owned subsidiaries is not consummated according to our current expectations or at all; public health issues, including the COVID-19 pandemic; other business interruptions that could disrupt supply or delivery of, or demand for, MagnaChip's products, including uncertainties regarding the impacts of the COVID-19 pandemic that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for MagnaChip's products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in MagnaChip's filings with the SEC, including our Form 10-K filed on February 21, 2020 (including that the impact of the COVID-19 pandemic may also exacerbate the risks discussed therein), our Form 10-Q filed on May 11, 2020 and subsequent registration statements, amendments or other reports that we may file from time to time with the Securities and Exchange Commission and/or make available on our website. MagnaChip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About MagnaChip Semiconductor 

MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company provides a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with more than 40 years of operating history, owns a portfolio of approximately 2,950 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through MagnaChip's website is not a part of, and is not incorporated into, this release.

CONTACTS:
In the United States: So-Yeon Jeong Head of Investor Relations Tel. +1-408-712-6151 Investor.relations@magnachip.com	In Korea: Chankeun Park Director, Public Relations Tel. +82-2-6903-5223 chankeun.park@magnachip.com

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US dollars, except share data)
(Unaudited)
	Three Months Ended													Six Months Ended
	June 30, 2020				March 31, 2020				June 30, 2019					June 30, 2020			June 30, 2019
Revenues:
Net sales – standard products business	$	108,955			$	110,736			$	132,006				$	219,691		$	232,270
Net sales – transitional Fab 3 foundry services		9,873				9,737				8,879					19,610			15,882
Total revenues		118,828				120,473				140,885					239,301			248,152
Cost of sales:
Cost of sales – standard products business		76,817				81,606				100,384					158,423			181,625
Cost of sales – transitional Fab 3 foundry services		9,873				9,737				8,879					19,610			15,882
Total cost of sales		86,690				91,343				109,263					178,033			197,507
Gross profit		32,138				29,130				31,622					61,268			50,645
Gross profit as a percentage of standard products business net sales		29.5	%			26.3	%			24.0	%				27.9	%		21.8	%
Gross profit as a percentage of total revenues		27.0	%			24.2	%			22.4	%				25.6	%		20.4	%
Operating expenses:
Selling, general and administrative expenses		12,408				12,102				11,095					24,510			23,131
Research and development expenses		11,108				10,509				11,772					21,617			23,816
Other charges		—				554				—					554			—
Total operating expenses		23,516				23,165				22,867					46,681			46,947
Operating income:		8,622				5,965				8,755					14,587			3,698
Interest expense		(5,430)				(5,607)				(5,439)					(11,037)			(11,076)
Foreign currency gain (loss), net		8,469				(30,971)				(11,571)					(22,502)			(22,181)
Loss on early extinguishment of long-term borrowings, net		—				—				—					—			(42)
Other income, net		791				838				551					1,629			1,138
Income (loss) from continuing operations before income tax expense		12,452				(29,775)				(7,704)					(17,323)			(28,463)
Income tax expense		678				1,303				786					1,981			1,582
Income (loss) from continuing operations		11,774				(31,078)				(8,490)					(19,304)			(30,045)
Income (loss) from discontinued operations, net of tax		17,397				7,329				(1,030)					24,726			(13,600)
Net income (loss)	$	29,171			$	(23,749)			$	(9,520)				$	5,422		$	(43,645)
Basic earnings (loss) per common share—
Continuing operations	$	0.34			$	(0.89)			$	(0.25)				$	(0.55)		$	(0.88)
Discontinued operations		0.50				0.21				(0.03)					0.71			(0.40)
Total	$	0.84			$	(0.68)			$	(0.28)				$	0.16		$	(1.28)
Diluted earnings (loss) per common share—
Continuing operations	$	0.28			$	(0.89)			$	(0.25)				$	(0.55)		$	(0.88)
Discontinued operations		0.37				0.21				(0.03)					0.71			(0.40)
Total	$	0.65			$	(0.68)			$	(0.28)				$	0.16		$	(1.28)
Weighted average number of shares—
Basic		35,092,312				34,893,157				34,245,127					34,992,734			34,220,141
Diluted		46,474,237				34,893,157				34,245,127					34,992,734			34,220,141

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars, except share data)
(Unaudited)
	June 30, 2020					December 31, 2019
Assets
Current assets
Cash and cash equivalents	$	192,824				$	151,657
Accounts receivable, net		48,548					47,447
Inventories, net		45,511					41,404
Other receivables		10,406					10,200
Prepaid expenses		8,598					9,003
Hedge collateral		11,740					9,820
Other current assets		7,405					10,013
Current assets held for sale		205,086					99,821
Total current assets		530,118					379,365
Property, plant and equipment, net		69,110					73,068
Operating lease right-of-use assets		1,182					1,876
Intangible assets, net		2,590					2,769
Long-term prepaid expenses		2,936					5,757
Other non-current assets		9,212					9,059
Non-current assets held for sale		—					123,434
Total assets	$	615,148				$	595,328
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	42,366				$	40,376
Other accounts payable		4,049					6,410
Accrued expenses		45,735					44,799
Operating lease liabilities		1,053					1,625
Current portion of long-term borrowings, net		82,706					—
Other current liabilities		5,481					3,583
Current liabilities held for sale		146,569					37,040
Total current liabilities		327,959					133,833
Long-term borrowings, net		223,242					304,743
Accrued severance benefits, net		49,927					51,181
Other non-current liabilities		7,845					9,671
Non-current liabilities held for sale		—					110,881
Total liabilities		608,973					610,309
Commitments and contingencies
Stockholders' equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 44,248,706 shares issued and 35,143,033 outstanding at June 30, 2020 and 43,851,991 shares issued and 34,800,312 outstanding at December 31, 2019		443					439
Additional paid-in capital		155,591					152,404
Accumulated deficit		(52,709)					(58,131)
Treasury stock, 9,105,673 shares at June 30, 2020 and 9,051,679 shares at December 31, 2019, respectively		(107,649)					(107,033)
Accumulated other comprehensive income (loss)		10,499					(2,660)
Total stockholders' equity (deficit)		6,175					(14,981)
Total liabilities and stockholders' equity	$	615,148				$	595,328

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars)
(Unaudited)
		Three Months Ended					Six Months Ended
		June 30, 2020					June 30, 2020				June 30, 2019
Cash flows from operating activities
Net income (loss)		$	29,171			$	5,422			$	(43,645)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization			2,544				10,479				16,505
Provision for severance benefits			5,108				10,179				6,406
Amortization of debt issuance costs and original issue discount			607				1,205				1,134
Loss (gain) on foreign currency, net			(12,083)				26,397				24,609
Restructuring and other charges			141				141				732
Provision for inventory reserves			1,463				2,033				8,940
Stock-based compensation			1,643				2,528				1,441
Loss on early extinguishment of long-term borrowings, net			—				—				42
Other			(218)				(111)				(494)
Changes in operating assets and liabilities
Accounts receivable, net			9,992				(438)				(20,974)
Unbilled accounts receivable, net			3,996				10,933				6,201
Inventories			(9,197)				(14,060)				(7,351)
Other receivables			(1,915)				67				(2,969)
Other current assets			3,838				4,747				5,929
Accounts payable			2,959				4,947				32,137
Other accounts payable			(4,325)				(5,898)				(3,960)
Accrued expenses			4,878				161				2,880
Other current liabilities			158				1,220				(7,491)
Other non-current liabilities			(570)				1,238				1,716
Payment of severance benefits			(2,192)				(4,272)				(4,579)
Other			(1)				147				(54)
Net cash provided by operating activities			35,997				57,065				17,155
Cash flows from investing activities
Proceeds from settlement of hedge collateral			1,616				5,855				4,627
Payment of hedge collateral			—				(7,841)				(8,395)
Purchase of property, plant and equipment			(5,491)				(8,842)				(15,000)
Payment for intellectual property registration			(244)				(473)				(642)
Collection of guarantee deposits			—				47				388
Payment of guarantee deposits			(571)				(571)				(1,330)
Other			13				21				193
Net cash used in investing activities			(4,677)				(11,804)				(20,159)
Cash flows from financing activities
Repurchase of long-term borrowings			—				—				(1,175)
Proceeds from exercise of stock options			663				663				149
Acquisition of treasury stock			—				(1,021)				(2,588)
Repayment of financing related to water treatment facility arrangement			(132)				(267)				(281)
Repayment of principal portion of lease liabilities			(59)				(119)				(118)
Net cash provided by (used in) financing activities			472				(744)				(4,013)
Effect of exchange rates on cash and cash equivalents			3,739				(3,350)				(1,668)
Net increase (decrease) in cash and cash equivalents			35,531				41,167				(8,685)
Cash and cash equivalents
Beginning of the period			157,293				151,657				132,438
End of the period		$	192,824				192,824				123,753

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME
(In thousands of US dollars)
(Unaudited)
	Three Months Ended												Six Months Ended
	June 30, 2020				March 31, 2020				June 30, 2019				June 30, 2020				June 30, 2019
Operating income	$	8,622			$	5,965			$	8,755			$		14,587		$	3,698
Adjustments:
Equity-based compensation expense		1,503				762				668					2,265			1,231
Others		—				554				—					554			585
Adjusted Operating Income	$	10,125			$	7,281			$	9,423			$		17,406		$	5,514

We present Adjusted Operating Income as supplemental measures of our performance. We define Adjusted Operating Income for the periods indicated as operating income adjusted to exclude (i) Equity-based compensation expense and (ii) Others. Others include non-recurring professional fees and expenses incurred in connection with certain treasury and finance initiatives for the three months ended March 31, 2020, and a $0.6 million legal settlement charge related to dispute with a prior customer and a legal expense related to the indemnification of a former employee, which is borne by us under a negotiated separation agreement for the three months ended March 31, 2019.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS)
(In thousands of US dollars, except share data)
(Unaudited)
	Three Months Ended													Six Months Ended
	June 30, 2020				March 31, 2020				June 30, 2019					June 30, 2020			June 30, 2019
Income (loss) from continuing operations	$	11,774			$	(31,078)			$	(8,490)					(19,304)			(30,045)
Adjustments:
Interest expense, net		4,736				4,930				4,852					9,666			9,911
Income tax expense		678				1,303				786					1,981			1,582
Depreciation and amortization		2,544				2,570				2,551					5,114			5,102
EBITDA		19,732				(22,275)				(301)					(2,543)			(13,450)
Equity-based compensation expense		1,503				762				668					2,265			1,231
Foreign currency loss (gain), net		(8,469)				30,971				11,571					22,502			22,181
Derivative valuation loss (gain), net		(55)				(117)				80					(172)			136
Loss on early extinguishment of long-term borrowings, net		—				—				—					—			42
Others		—				554				—					554			585
Adjusted EBITDA		12,711				9,895				12,018					22,606			10,725
Income (loss) from continuing operations	$	11,774			$	(31,078)			$	(8,490)				$	(19,304)		$	(30,045)
Adjustments:
Equity-based compensation expense		1,503				762				668					2,265			1,231
Foreign currency loss (gain), net		(8,469)				30,971				11,571					22,502			22,181
Derivative valuation loss (gain), net		(55)				(117)				80					(172)			136
Loss on early extinguishment of long-term borrowings, net		—				—				—					—			42
Others		—				554				—					554			585
Adjusted Net Income (Loss)	$	4,753			$	1,092			$	3,829				$	5,845		$	(5,870)
Adjusted Net Income (Loss) per common share—
- Basic	$	0.14			$	0.03			$	0.11				$	0.17		$	(0.17)
- Diluted	$	0.13			$	0.03			$	0.11				$	0.16		$	(0.17)
Weighted average number of shares – basic		35,092,312				34,893,157				34,245,127					34,992,734			34,220,141
Weighted average number of shares – diluted		36,330,083				35,883,200				34,965,562					36,248,039			34,220,141

We present Adjusted EBITDA and Adjusted Net Income (Loss) as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Loss on early extinguishment of long-term borrowings, net and (v) Others. Others include non-recurring professional fees and expenses incurred in connection with certain treasury and finance initiatives for the three months ended March 31, 2020, and a $0.6 million legal settlement charge related to dispute with a prior customer and a legal expense related to the indemnification of a former employee, which is borne by us under a negotiated separation agreement for the three months ended March 31, 2019. EBITDA for the periods indicated is defined as Income (loss) from continuing operations before interest expense, net, income tax expense and depreciation and amortization. We prepare Adjusted Net Income (Loss) by adjusting income (loss) from continuing operations to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income (Loss) is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income (Loss) for the periods as income (loss) from continuing operations, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Loss on early extinguishment of long-term borrowings, net and (v) Others. Others include non-recurring professional fees and expenses incurred in connection with certain treasury and finance initiatives for the three months ended March 31, 2020, and a $0.6 million legal settlement charge related to dispute with a prior customer and a legal expense related to the indemnification of a former employee, which is borne by us under a negotiated separation agreement for the three months ended March 31, 2019. 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP COMBINED RESULTS OF OPERATIONS

(In thousands of US dollars)

(Unaudited)

Three Months Ended June 30, 2020

Continuing Operations

Discontinued Operations

Combined

Standard

Transitional

Foundry

Transitional

Fab 3

Fab 3

Combined results of operations (non-GAAP):

products

foundry

Services

foundry

business

services

Group

services

Net sales

$ 108,955

$9,873

$95,779

$

(9,873)

$204,734

Gross profit margin

29.5%

—

32.3%

—

30.8%

Three Months Ended June 30, 2019

Continuing Operations

Discontinued Operations

Combined

Standard

Transitional

Foundry

Transitional

Fab 3

Fab 3

Combined results of operations (non-GAAP):

products

foundry

Services

foundry

business

services

Group

services

Net sales

$132,006

$8,879

$73,139

$

(8,879)

$205,145

Gross profit margin

24.0%

—

16.7%

—

21.4%

Six Months Ended June 30, 2020

Continuing Operations

Discontinued Operations

Combined

Standard

Transitional

Foundry

Transitional

Fab 3

Fab 3

Combined results of operations (non-GAAP):

products

foundry

Services

foundry

business

services

Group

services

Net sales

$219,691

$19,610

$182,058

$

(19,610)

$401,749

Gross profit margin

27.9%

—

28.3%

—

28.1%

Six Months Ended June 30, 2019

Continuing Operations

Discontinued Operations

Combined

Standard

Transitional

Foundry

Transitional

Fab 3

Fab 3

Combined results of operations (non-GAAP):

products

foundry

Services

foundry

business

services

Group

services

Net sales

$232,270

$15,882

$130,255

$

(15,882)

$362,525

Gross profit margin

21.8%

—

12.2%

—

18.4%

 

View original content:http://www.prnewswire.com/news-releases/magnachip-reports-results-for-second-quarter-2020-301103020.html

SOURCE MagnaChip Semiconductor Corporation