Magnachip Reports Results for Fourth Quarter and Full-Year 2024
Magnachip (NYSE: MX) reported Q4 2024 results with consolidated revenue of $63 million, up 24% year-over-year and above guidance range of $59-64 million. Q4 gross profit margin reached 25.2%, exceeding guidance of 21.5-23.5%.
The company announced its strategic transition to become a pure-play Power company, exploring options for its Display business. Standard Products revenue grew 13% year-over-year, with MSS up 22.5% and PAS up 10.2%. Notable growth included Power IC revenue increasing over 50% year-over-year.
For Q1 2025, Magnachip expects continuing operations revenue of $42-47 million with gross margin of 18.5-20.5%. The company outlined its '3-3-3 strategy' targeting $300 million annual revenue run-rate with 30% gross margin in 3 years, expecting to achieve quarterly Adjusted EBITDA breakeven by Q4 2025.
Magnachip (NYSE: MX) ha riportato i risultati del Q4 2024 con un fatturato consolidato di 63 milioni di dollari, in aumento del 24% rispetto all'anno precedente e superiore alla fascia di guidance di 59-64 milioni di dollari. Il margine di profitto lordo del Q4 ha raggiunto il 25,2%, superando la guidance del 21,5-23,5%.
L'azienda ha annunciato la sua transizione strategica per diventare un'azienda esclusivamente focalizzata sull'energia, esplorando opzioni per il suo business Display. Il fatturato dei Prodotti Standard è cresciuto del 13% rispetto all'anno precedente, con MSS in aumento del 22,5% e PAS del 10,2%. Una crescita notevole ha incluso il fatturato dei Power IC che è aumentato di oltre il 50% rispetto all'anno precedente.
Per il Q1 2025, Magnachip prevede un fatturato delle operazioni continuative di 42-47 milioni di dollari con un margine lordo del 18,5-20,5%. L'azienda ha delineato la sua 'strategia 3-3-3' mirante a un fatturato annuale di 300 milioni di dollari con un margine lordo del 30% in 3 anni, prevedendo di raggiungere il pareggio dell'EBITDA rettificato trimestrale entro il Q4 2025.
Magnachip (NYSE: MX) reportó resultados del Q4 2024 con ingresos consolidados de 63 millones de dólares, un aumento del 24% interanual y por encima del rango de orientación de 59-64 millones de dólares. El margen de beneficio bruto del Q4 alcanzó el 25,2%, superando la orientación del 21,5-23,5%.
La compañía anunció su transición estratégica para convertirse en una empresa exclusivamente de energía, explorando opciones para su negocio de Display. Los ingresos de Productos Estándar crecieron un 13% interanual, con MSS en aumento del 22,5% y PAS del 10,2%. Un crecimiento notable incluyó un aumento de más del 50% en los ingresos de Power IC interanual.
Para el Q1 2025, Magnachip espera ingresos de operaciones continuas de 42-47 millones de dólares con un margen bruto del 18,5-20,5%. La empresa delineó su 'estrategia 3-3-3' que apunta a una tasa de ingresos anual de 300 millones de dólares con un margen bruto del 30% en 3 años, esperando alcanzar el equilibrio de EBITDA ajustado trimestral para el Q4 2025.
Magnachip (NYSE: MX)는 2024년 4분기 실적을 발표하며 통합 수익이 6,300만 달러로 전년 대비 24% 증가하고 5,900만-6,400만 달러의 가이던스 범위를 초과했다고 보고했습니다. 4분기 총 이익률은 25.2%에 도달하여 21.5-23.5%의 가이던스를 초과했습니다.
회사는 디스플레이 사업을 위한 옵션을 탐색하며 순수 전력 회사로의 전략적 전환을 발표했습니다. 표준 제품의 수익은 전년 대비 13% 증가했으며, MSS는 22.5%, PAS는 10.2% 증가했습니다. 특히, 전력 IC 수익은 전년 대비 50% 이상 증가했습니다.
2025년 1분기에는 Magnachip이 지속적인 운영 수익을 4,200만-4,700만 달러로 예상하며 총 이익률은 18.5-20.5%로 예상하고 있습니다. 이 회사는 3년 이내에 연간 3억 달러의 수익률과 30%의 총 이익률을 목표로 하는 '3-3-3 전략'을 설명하며, 2025년 4분기까지 분기 조정 EBITDA 손익 분기점을 달성할 것으로 기대하고 있습니다.
Magnachip (NYSE: MX) a annoncé les résultats du Q4 2024 avec un chiffre d'affaires consolidé de 63 millions de dollars, en hausse de 24 % par rapport à l'année précédente et au-dessus de la fourchette de guidance de 59-64 millions de dollars. La marge brute du Q4 a atteint 25,2%, dépassant la guidance de 21,5-23,5%.
L'entreprise a annoncé sa transition stratégique pour devenir une société purement axée sur l'énergie, explorant des options pour son activité Display. Les revenus des Produits Standards ont augmenté de 13 % par rapport à l'année précédente, avec une augmentation de 22,5 % pour MSS et de 10,2 % pour PAS. Une croissance notable a été enregistrée avec des revenus de Power IC augmentant de plus de 50 % par rapport à l'année précédente.
Pour le Q1 2025, Magnachip prévoit un chiffre d'affaires des opérations continues de 42-47 millions de dollars avec une marge brute de 18,5-20,5 %. L'entreprise a exposé sa 'stratégie 3-3-3' visant un chiffre d'affaires annuel de 300 millions de dollars avec une marge brute de 30 % dans 3 ans, s'attendant à atteindre l'équilibre du EBITDA ajusté trimestriel d'ici le Q4 2025.
Magnachip (NYSE: MX) hat die Ergebnisse des Q4 2024 mit einem konsolidierten Umsatz von 63 Millionen Dollar veröffentlicht, was einem Anstieg von 24 % im Vergleich zum Vorjahr entspricht und über dem Richtwert von 59-64 Millionen Dollar liegt. Die Bruttomarge im Q4 erreichte 25,2%, was die Prognose von 21,5-23,5% übersteigt.
Das Unternehmen kündigte seinen strategischen Übergang an, um ein reines Energieunternehmen zu werden, und prüft Optionen für sein Display-Geschäft. Der Umsatz der Standardprodukte wuchs um 13 % im Vergleich zum Vorjahr, wobei MSS um 22,5 % und PAS um 10,2 % zunahm. Ein bemerkenswerter Anstieg war der Umsatz der Power-ICs, der im Vergleich zum Vorjahr um über 50 % stieg.
Für das Q1 2025 erwartet Magnachip einen Umsatz aus fortlaufenden Betrieben von 42-47 Millionen Dollar mit einer Bruttomarge von 18,5-20,5 %. Das Unternehmen skizzierte seine '3-3-3-Strategie', die auf eine jährliche Umsatzrate von 300 Millionen Dollar mit einer Bruttomarge von 30 % in 3 Jahren abzielt, und erwartet, dass es bis zum Q4 2025 den quartalsweisen bereinigten EBITDA-Breakeven erreicht.
- Revenue increased 24% year-over-year to $63M in Q4
- Gross profit margin improved to 25.2%, up 2.5 percentage points YoY
- Power IC revenue grew over 50% year-over-year
- Standard Products business revenue increased 13% YoY
- Strategic transition to pure-play Power company to improve profitability
- Standard Product revenue down 5.1% sequentially in Q4
- Automotive and Industrial segments showed slight decline
- Q1 2025 revenue guidance indicates 8.9% sequential decline
- Expected lower gross margins in Q1 2025 (18.5-20.5%)
- Company not yet profitable, targeting breakeven by Q4 2025
Insights
Magnachip's strategic pivot to become a pure-play power semiconductor company represents a significant transformation that addresses ongoing profitability challenges. The Q4 revenue of
The company's financial results demonstrate divergent performance between segments. The Standard Products business grew
The sequential revenue guidance decline of
This strategic reset creates a clearer value proposition for investors but execution risks remain substantial as the company navigates the challenging transition period while pursuing profitability milestones.
Magnachip's decision to transform into a pure-play power semiconductor company addresses a classic conglomerate discount problem. By divesting the underperforming Display business, management is implementing a focused strategy that concentrates resources on their highest-growth segment - particularly Power ICs, which grew over
The strategic roadmap is structured around sequential financial milestones: Adjusted EBITDA breakeven by Q4 2025, positive adjusted operating income in 2026, and positive adjusted free cash flow in 2027. This phased approach provides accountability benchmarks while acknowledging the transition period required. The "3-3-3 strategy" (3 years to
Share repurchases of
The guidance for 2025 reflects transition-year realities, with continuing operations expected to grow mid-to-high single digits year-over-year but with constrained margins until new product cycles begin. The classification of Display as discontinued operations in Q1 will reset the company's financial baseline, potentially creating initial investor confusion but ultimately providing cleaner performance metrics.
The success of this strategic pivot hinges on execution quality, particularly maintaining revenue momentum in Power products while simultaneously improving operational efficiency to achieve the stated profitability targets.
- Announces Transition to Become Pure-Play Power Company; Explores All Strategic Options for Display Business -
Q4 Results Summary
-
Consolidated revenue of
$63 million $59.0 $64.0 million -
Standard Product business revenue was down
5.1% sequentially due primarily to seasonality. -
Consolidated gross profit margin of
25.2% was above the high-end our guidance range of21.5% to23.5% . -
Standard Product business gross profit margin was
26.6% , up 2.2 percentage points sequentially. -
Repurchased approximately 0.7 million shares for aggregate purchase price of
$2.9 million $138.6 million
2024 Highlights
-
Excluding Transitional Foundry Services, Standard Products business revenue increased
13% year-over-year, with MSS up22.5% and PAS up10.2% . Both of these business line growth rates were in line with original guidance for double-digit growth provided at the beginning of 2024. - PAS revenue growth was strongest in Communication, Computing and Consumer in calendar 2024. Automotive and Industrial declined only slightly, relatively outperforming the broader markets.
-
Power IC revenue increased more than
50% year-over-year.
YJ Kim, Magnachip’s CEO, said, “Our Q4 revenue of
YJ Kim added, “Our revenue and gross margin results represented a step in the right direction, but our utmost short-term goal is a return to profitability. To achieve this goal, Magnachip announced today its transition to become a pure-play Power company, and we also announced that we are exploring all strategic options for the Display business, which will be classified as discontinued operations when the Company reports Q1 results in May.”
YJ Kim commented, “By focusing on the Power business, Magnachip currently expects to achieve a quarterly Adjusted EBITDA* breakeven by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income* in 2026, and positive adjusted free cash flow* in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a
*Non-GAAP measure. Please see footnote (2) under the table below, as well as the reconciliation tables of historical GAAP results to non-GAAP results included at the end of this press release.
Q4 and 2024 Financial Highlights
In thousands of |
||||||||||||||||
|
GAAP |
|
||||||||||||||
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q change |
|
Q4 2023 |
Y/Y change |
|
|||||||
Consolidated Revenues |
63,039 |
66,460 |
down |
5.1 |
% |
50,822 |
up |
24.0 |
% |
|||||||
Standard Products Business |
60,744 |
64,020 |
|
down |
5.1 |
% |
41,182 |
up |
47.5 |
% |
||||||
Mixed-Signal Solutions |
17,289 |
|
16,446 |
|
up |
5.1 |
% |
8,558 |
up |
102.0 |
% |
|||||
Power Analog Solutions |
43,455 |
|
47,574 |
|
down |
8.7 |
% |
32,624 |
up |
33.2 |
% |
|||||
Transitional Fab 3 foundry services(1) |
2,295 |
|
2,440 |
|
down |
5.9 |
% |
9,640 |
down |
76.2 |
% |
|||||
Consolidated Gross Profit Margin |
25.2 |
% | 23.3 |
% |
up |
1.9 |
%pts |
|
up |
2.5 |
%pts |
|||||
Standard Products Business |
26.6 |
% | 24.4 |
% |
up |
2.2 |
%pts |
|
up |
3.7 |
%pts |
|||||
Mixed-Signal Solutions |
41.8 |
% |
38.7 |
% |
up |
3.1 |
%pts |
|
up |
0.5 |
%pts |
|||||
Power Analog Solutions |
20.5 |
% |
19.4 |
% |
up |
1.1 |
%pts |
|
up |
2.4 |
%pts |
|||||
Operating Loss |
(15,745 |
) |
(11,003 |
) |
down |
n/a |
|
(15,935) |
up |
n/a |
|
|||||
Net Loss |
(16,277 |
) |
(9,617 |
) |
down |
n/a |
|
(6,040) |
down |
n/a |
|
|||||
Basic Loss per Common Share |
(0.44 |
) |
(0.26 |
) |
down |
n/a |
|
(0.16) |
down |
n/a |
|
|||||
Diluted Loss per Common Share |
(0.44 |
) |
(0.26 |
) |
down |
n/a |
|
(0.16) |
down |
n/a |
|
|||||
|
||||||||||||||||
|
In thousands of |
|
||||||||||||||
|
Non-GAAP(2) |
|
||||||||||||||
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q change |
|
Q4 2023 |
Y/Y change |
|
|||||||
Adjusted Operating Loss |
(6,970 |
) |
(9,026 |
) |
up |
n/a |
|
(14,095) |
up |
n/a |
|
|||||
Adjusted EBITDA |
(2,635 |
) |
(4,949 |
) |
up |
n/a |
|
(9,972) |
up |
n/a |
|
|||||
Adjusted Net Income (Loss) |
2,637 |
|
(12,797 |
) |
up |
n/a |
|
(8,044) |
up |
n/a |
|
|||||
Adjusted Earnings (Loss) per Common Share—Diluted |
0.07 |
|
(0.34 |
) |
up |
n/a |
|
(0.21) |
up |
n/a |
|
|||||
|
In thousands of |
||||||
|
GAAP |
|
|||||
|
2024 |
|
2023 |
Y/Y Change |
|||
Consolidated Revenues |
231,737 |
230,051 |
up |
|
|||
Standard Products Business |
221,140 |
195,690 |
up |
|
|||
Mixed-Signal Solutions |
54,336 |
44,366 |
up |
|
|||
Power Analog Solutions |
166,804 |
151,324 |
up |
|
|||
Transitional Fab 3 foundry services(1) |
10,597 |
34,361 |
down |
|
|||
Consolidated Gross Profit Margin |
|
|
down |
|
|||
Standard Products Business |
|
|
down |
|
|||
Mixed-Signal Solutions |
|
|
up |
|
|||
Power Analog Solutions |
|
|
down |
|
|||
Operating Loss |
(53,031) |
(57,644) |
up |
n/a |
|||
Net Loss |
(54,308) |
(36,622) |
down |
n/a |
|||
Basic Loss per Common Share |
(1.44) |
(0.89) |
down |
n/a |
|||
Diluted Loss per Common Share |
(1.44) |
(0.89) |
down |
n/a |
|||
|
In thousands of |
||||||
|
Non-GAAP(2) |
||||||
|
2024 |
2023 |
Y/Y Change |
||||
Adjusted Operating Loss |
(40,163) |
(41,170) |
up |
n/a |
|||
Adjusted EBITDA |
(23,594) |
(24,174) |
up |
n/a |
|||
Adjusted Net Loss |
(29,178) |
(22,474) |
down |
n/a |
|||
Adjusted Loss per Common Share—Diluted |
(0.77) |
(0.55) |
down |
n/a |
|||
______________________
| (1) |
Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, |
|
|
|
|
(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 our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release. We define adjusted free cash flow as net cash provided by operating activities, adjusted for net foreign currency transaction gain or loss, less capital expenditures. |
Q1 and Full-year 2025 Financial Guidance
Beginning Q1 2025, the Company will become a pure-play Power company, with the display business classified as discontinued operations and reported separately from continuing operations, which will include PAS and Power IC business lines. While actual results may vary, Magnachip currently expects the following:
For Q1 2025:
-
Consolidated revenue from continuing operations (which includes Power discrete and Power IC businesses, and excludes our former Display business) to be in the range of
$42 $47 million 8.9% sequentially due primarily to seasonality, but up11.5% year-over-year at the mid-point. This compares with equivalent revenue of$48.9 million $39.9 million -
Consolidated gross profit margin from continuing operations to be in the range of
18.5% to20.5% , due to the seasonal sequential decline in revenue and the wind down of Transitional Foundry Services impacting fab utilization. This compares with equivalent gross profit margin of23.2% in Q4 2024 and17.6% in Q1 2024.
For the full-year 2025, which will set the stage to become a pure-play Power company, we currently expect:
-
Consolidated revenue from continuing operations to grow mid-to-high single digit year-over-year as compared with equivalent revenue of
$185.8 million -
Consolidated gross profit margin from continuing operations between
19.5% to21.5% , reflecting the fact that we have completed the wind down of Transitional Foundry Services and new generation power products will just begin production in the second half 2025. The equivalent gross profit margin was21.5% in 2024.
Q4 2024 Earnings Conference Call
Magnachip will host a corresponding conference call at 8:30 a.m. ET on Wednesday, March 12, 2025, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.
Online registration: https://register.vevent.com/register/BIa6cd0a845f2f49d6b9ae30f6b3ef47d2
Sell-Side Analyst Briefing and Webcast
Following the conference call, Magnachip will hold an in-person briefing for sell-side analysts in
To join the Analyst Briefing webcast, all participants must use the following link to complete the online registration process in advance. Upon registering, each participant will receive access details, including the dial-in numbers, a PIN number, and an email with detailed instructions to join the call.
Online registration: https://register.vevent.com/register/BIa603d2c4ff554592b500a20e6e1500d7
Safe Harbor for Forward-Looking Statements
Information in this presentation 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. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter and full year 2025 revenue and gross profit margin expectations and longer term annualized revenue and gross profit margin targets, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between
About Magnachip Semiconductor
Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 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.
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||
Revenues: |
|
|
|
|
|
||||||||||||||
Net sales – standard products business |
$ |
60,744 |
|
$ |
64,020 |
|
$ |
41,182 |
|
$ |
221,140 |
|
$ |
195,690 |
|
||||
Net sales – transitional Fab 3 foundry services |
|
2,295 |
|
|
2,440 |
|
|
9,640 |
|
|
10,597 |
|
|
34,361 |
|
||||
|
|
|
|
|
|
||||||||||||||
Total revenues |
|
63,039 |
|
|
66,460 |
|
|
50,822 |
|
|
231,737 |
|
|
230,051 |
|
||||
Cost of sales: |
|
|
|
|
|
||||||||||||||
Cost of sales – standard products business |
|
44,607 |
|
|
48,400 |
|
|
31,754 |
|
|
168,008 |
|
|
143,762 |
|
||||
Cost of sales – transitional Fab 3 foundry services |
|
2,547 |
|
|
2,599 |
|
|
7,541 |
|
|
11,814 |
|
|
34,649 |
|
||||
|
|
|
|
|
|
||||||||||||||
Total cost of sales |
|
47,154 |
|
|
50,999 |
|
|
39,295 |
|
|
179,822 |
|
|
178,411 |
|
||||
|
|
|
|
|
|
||||||||||||||
Gross profit |
|
15,885 |
|
|
15,461 |
|
|
11,527 |
|
|
51,915 |
|
|
51,640 |
|
||||
Gross profit as a percentage of standard products business net sales |
|
26.6 |
% |
|
24.4 |
% |
|
22.9 |
% |
|
24.0 |
% |
|
26.5 |
% |
||||
Gross profit as a percentage of total revenues |
|
25.2 |
% |
|
23.3 |
% |
|
22.7 |
% |
|
22.4 |
% |
|
22.4 |
% |
||||
Operating expenses: |
|
|
|
|
|
||||||||||||||
Selling, general and administrative expenses |
|
12,009 |
|
|
12,091 |
|
|
12,079 |
|
|
47,098 |
|
|
48,470 |
|
||||
Research and development expenses |
|
12,967 |
|
|
14,373 |
|
|
15,383 |
|
|
51,194 |
|
|
51,563 |
|
||||
Impairment and other charges |
|
6,654 |
|
|
— |
|
|
— |
|
|
6,654 |
|
|
802 |
|
||||
Early termination charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8,449 |
|
||||
|
|
|
|
|
|
||||||||||||||
Total operating expenses |
|
31,630 |
|
|
26,464 |
|
|
27,462 |
|
|
104,946 |
|
|
109,284 |
|
||||
|
|
|
|
|
|
||||||||||||||
Operating loss |
|
(15,745 |
) |
|
(11,003 |
) |
|
(15,935 |
) |
|
(53,031 |
) |
|
(57,644 |
) |
||||
Interest income |
|
2,279 |
|
|
2,051 |
|
|
2,519 |
|
|
8,771 |
|
|
10,435 |
|
||||
Interest expense |
|
(603 |
) |
|
(574 |
) |
|
(183 |
) |
|
(1,969 |
) |
|
(828 |
) |
||||
Foreign currency gain (loss), net |
|
(13,407 |
) |
|
5,066 |
|
|
5,241 |
|
|
(16,899 |
) |
|
465 |
|
||||
Other income (loss), net |
|
364 |
|
|
(31 |
) |
|
(42 |
) |
|
485 |
|
|
13 |
|
||||
|
|
|
|
|
|||||||||||||||
Loss before income tax expense (benefit) |
|
(27,112 |
) |
|
(4,491 |
) |
|
(8,400 |
) |
|
(62,643 |
) |
|
(47,559 |
) |
||||
Income tax expense (benefit), net |
|
(10,835 |
) |
|
5,126 |
|
|
(2,360 |
) |
|
(8,335 |
) |
|
(10,937 |
) |
||||
|
|
|
|
|
|
||||||||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(9,617 |
) |
$ |
(6,040 |
) |
$ |
(54,308 |
) |
$ |
(36,622 |
) |
||||
|
|
|
|
|
|
||||||||||||||
Basic loss per common share— |
$ |
(0.44 |
) |
$ |
(0.26 |
) |
$ |
(0.16 |
) |
$ |
(1.44 |
) |
$ |
(0.89 |
) |
||||
Diluted loss per common share— |
$ |
(0.44 |
) |
$ |
(0.26 |
) |
$ |
(0.16 |
) |
$ |
(1.44 |
) |
$ |
(0.89 |
) |
||||
Weighted average number of shares— |
|
|
|
|
|
||||||||||||||
Basic |
|
36,921,300 |
|
|
37,468,849 |
|
|
38,834,451 |
|
|
37,774,280 |
|
|
41,013,069 |
|
||||
Diluted |
|
36,921,300 |
|
|
37,468,849 |
|
|
38,834,451 |
|
|
37,774,280 |
|
|
41,013,069 |
|
||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(In thousands of (Unaudited) |
||||||||||
|
|
|
|
|||||||
|
December 31,
|
December 31,
|
||||||||
Assets |
|
|
|
|
|
|
||||
Current assets |
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
138,610 |
|
|
|
$ |
158,092 |
|
|
Accounts receivable, net |
|
|
28,402 |
|
|
|
|
32,641 |
|
|
Inventories, net |
|
|
30,535 |
|
|
|
|
32,733 |
|
|
Other receivables |
|
|
4,444 |
|
|
|
|
4,295 |
|
|
Prepaid expenses |
|
|
10,379 |
|
|
|
|
7,390 |
|
|
Hedge collateral |
|
|
2,080 |
|
|
|
|
1,000 |
|
|
Other current assets |
|
|
4,779 |
|
|
|
|
9,283 |
|
|
Total current assets |
|
|
219,229 |
|
|
|
|
245,434 |
|
|
Property, plant and equipment, net |
|
|
81,463 |
|
|
|
|
100,122 |
|
|
Operating lease right-of-use assets |
|
|
3,107 |
|
|
|
|
4,639 |
|
|
Intangible assets, net |
|
|
507 |
|
|
|
|
1,537 |
|
|
Long-term prepaid expenses |
|
|
165 |
|
|
|
|
5,736 |
|
|
Deferred income taxes |
|
|
52,889 |
|
|
|
|
50,836 |
|
|
Other non-current assets |
|
|
21,956 |
|
|
|
|
12,187 |
|
|
Total assets |
|
$ |
379,316 |
|
|
|
$ |
420,491 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||||
Current liabilities |
|
|
|
|
|
|
||||
Accounts payable |
|
$ |
21,642 |
|
|
|
$ |
24,443 |
|
|
Other accounts payable |
|
|
10,764 |
|
|
|
|
5,292 |
|
|
Accrued expenses |
|
|
8,648 |
|
|
|
|
10,457 |
|
|
Accrued income taxes |
|
|
56 |
|
|
|
|
1,496 |
|
|
Operating lease liabilities |
|
|
1,393 |
|
|
|
|
1,914 |
|
|
Other current liabilities |
|
|
3,765 |
|
|
|
|
3,286 |
|
|
Total current liabilities |
|
|
46,268 |
|
|
|
|
46,888 |
|
|
Long-term borrowing |
|
|
27,211 |
|
|
|
|
— |
|
|
Accrued severance benefits, net |
|
|
17,094 |
|
|
|
|
16,020 |
|
|
Non-current operating lease liabilities |
|
|
1,823 |
|
|
|
|
2,897 |
|
|
Other non-current liabilities |
|
|
10,123 |
|
|
|
|
10,088 |
|
|
Total liabilities |
|
|
102,519 |
|
|
|
|
75,893 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
|
|
||||
Common stock, |
|
|
574 |
|
|
|
|
569 |
|
|
Additional paid-in capital |
|
|
279,423 |
|
|
|
|
273,256 |
|
|
Retained earnings |
|
|
244,576 |
|
|
|
|
298,884 |
|
|
Treasury stock, 20,586,389 shares at December 31, 2024 and 18,118,652 shares at December 31, 2023, respectively |
|
|
(225,883 |
) |
|
|
|
(213,454 |
) |
|
Accumulated other comprehensive loss |
|
|
(21,893 |
) |
|
|
|
(14,657 |
) |
|
Total stockholders’ equity |
|
|
276,797 |
|
|
|
|
344,598 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
379,316 |
|
|
|
$ |
420,491 |
|
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of (Unaudited) |
|||||||||||
Three Months
|
Year Ended |
||||||||||
|
December 31,
|
December 31,
|
December 31,
|
||||||||
Cash flows from operating activities |
|
|
|
||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(54,308 |
) |
$ |
(36,622 |
) |
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
||||||||
Depreciation and amortization |
|
3,990 |
|
|
16,161 |
|
|
16,684 |
|
||
Provision for severance benefits |
|
3,468 |
|
|
8,020 |
|
|
5,333 |
|
||
Loss on foreign currency, net |
|
26,711 |
|
|
32,851 |
|
|
3,373 |
|
||
Provision (reversal) for inventory reserves |
|
1,086 |
|
|
(529 |
) |
|
3,885 |
|
||
Stock-based compensation |
|
2,121 |
|
|
6,214 |
|
|
7,223 |
|
||
Impairment charges |
|
4,637 |
|
|
4,637 |
|
|
— |
|
||
Deferred income tax assets |
|
(10,145 |
) |
|
(7,034 |
) |
|
(13,405 |
) |
||
Other, net |
|
247 |
|
|
799 |
|
|
757 |
|
||
Changes in operating assets and liabilities |
|
|
|
||||||||
Accounts receivable, net |
|
(841 |
) |
|
2,719 |
|
|
1,909 |
|
||
Inventories |
|
782 |
|
|
(1,583 |
) |
|
2,370 |
|
||
Other receivables |
|
915 |
|
|
(115 |
) |
|
3,847 |
|
||
Prepaid expenses |
|
3,232 |
|
|
8,877 |
|
|
8,808 |
|
||
Other current assets |
|
598 |
|
|
1,753 |
|
|
8,048 |
|
||
Accounts payable |
|
(2,590 |
) |
|
(1,971 |
) |
|
7,152 |
|
||
Other accounts payable |
|
(3,963 |
) |
|
(14,160 |
) |
|
(8,934 |
) |
||
Accrued expenses |
|
732 |
|
|
(607 |
) |
|
493 |
|
||
Accrued income taxes |
|
27 |
|
|
(1,432 |
) |
|
(1,569 |
) |
||
Other current liabilities |
|
(921 |
) |
|
(1,161 |
) |
|
(24 |
) |
||
Other non-current liabilities |
|
10 |
|
|
(335 |
) |
|
(238 |
) |
||
Payment of severance benefits |
|
(518 |
) |
|
(2,407 |
) |
|
(6,982 |
) |
||
Others, net |
|
(1,445 |
) |
|
(2,522 |
) |
|
(5,122 |
) |
||
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
|
11,856 |
|
|
(6,133 |
) |
|
(3,014 |
) |
||
Cash flows from investing activities |
|
|
|
||||||||
Proceeds from settlement of hedge collateral |
|
— |
|
|
627 |
|
|
5,669 |
|
||
Payment of hedge collateral |
|
(1,094 |
) |
|
(1,706 |
) |
|
(3,754 |
) |
||
Purchase of property, plant and equipment |
|
(7,425 |
) |
|
(11,600 |
) |
|
(6,955 |
) |
||
Payment for intellectual property registration |
|
(53 |
) |
|
(316 |
) |
|
(263 |
) |
||
Collection of guarantee deposits |
|
2,382 |
|
|
3,535 |
|
|
4,984 |
|
||
Payment of guarantee deposits |
|
(85 |
) |
|
(2,175 |
) |
|
(7,338 |
) |
||
Collection of short-term financial instruments |
|
30,000 |
|
|
30,000 |
|
|
— |
|
||
Purchase of short-term financial instruments |
|
— |
|
|
(30,000 |
) |
|
— |
|
||
Others, net |
|
— |
|
|
(37 |
) |
|
— |
|
||
|
|
|
|
||||||||
Net cash provided by (used in) investing activities |
|
23,725 |
|
|
(11,672 |
) |
|
(7,657 |
) |
||
Cash flows from financing activities |
|
|
|
||||||||
Proceeds from long-term borrowing |
|
— |
|
|
30,059 |
|
|
— |
|
||
Proceeds from exercise of stock options |
|
— |
|
|
— |
|
|
27 |
|
||
Acquisition of treasury stock |
|
(3,384 |
) |
|
(12,891 |
) |
|
(51,782 |
) |
||
Repayment of financing related to water treatment facility arrangement |
|
(115 |
) |
|
(472 |
) |
|
(493 |
) |
||
Repayment of principal portion of finance lease liabilities |
|
(35 |
) |
|
(139 |
) |
|
(91 |
) |
||
|
|
|
|
||||||||
Net cash provided by (used in) financing activities |
|
(3,534 |
) |
|
16,557 |
|
|
(52,339 |
) |
||
Effect of exchange rates on cash and cash equivalents |
|
(14,532 |
) |
|
(18,234 |
) |
|
(4,375 |
) |
||
|
|
|
|
||||||||
Net increase (decrease) in cash and cash equivalents |
|
17,515 |
|
|
(19,482 |
) |
|
(67,385 |
) |
||
Cash and cash equivalents |
|
|
|
||||||||
Beginning of the period |
|
121,095 |
|
|
158,092 |
|
|
225,477 |
|
||
|
|
|
|
||||||||
End of the period |
$ |
138,610 |
|
$ |
138,610 |
|
$ |
158,092 |
|
||
|
|
|
|
||||||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS
(In thousands of (Unaudited) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|||||||||
Operating loss |
|
$ |
(15,745 |
) |
|
$ |
(11,003 |
) |
|
$ |
(15,935 |
) |
|
$ |
(53,031 |
) |
|
$ |
(57,644 |
) |
||||
Adjustments: |
|
|
|
|
|
|||||||||||||||||||
Equity-based compensation expense |
|
|
2,121 |
|
|
|
1,977 |
|
|
1,840 |
|
|
|
6,214 |
|
|
|
7,223 |
|
|||||
Impairment and other charges |
|
|
6,654 |
|
|
|
— |
|
|
|
— |
|
|
|
6,654 |
|
|
|
802 |
|
||||
Early termination charges |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
8,449 |
|
|||||
Adjusted Operating Loss |
|
$ |
(6,970 |
) |
|
$ |
(9,026 |
) |
|
$ |
(14,095 |
) |
|
$ |
(40,163 |
) |
|
$ |
(41,170 |
) |
||||
We present Adjusted Operating Loss as a supplemental measure of our performance. We define Adjusted Operating Loss for the periods indicated as operating loss adjusted to exclude (i) Equity-based compensation expense, (ii) Impairment and other charges and (iii) Early termination charges.
For the year ended December 31, 2024, we recorded in our consolidated statement of operations
For the year ended December 31, 2023, we recorded in our consolidated statement of operations
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS)
(In thousands of (Unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(9,617 |
) |
$ |
(6,040 |
) |
$ | (54,308 |
) |
$ |
(36,622 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Interest income |
|
(2,279 |
) |
|
(2,051 |
) |
|
(2,519 |
) |
(8,771 |
) |
|
(10,435 |
) |
||||||
Interest expense |
|
603 |
|
|
574 |
|
|
183 |
|
1,969 |
|
|
828 |
|
||||||
Income tax expense (benefit), net |
|
(10,835 |
) |
|
5,126 |
|
|
(2,360 |
) |
(8,335 |
) |
|
(10,937 |
) |
||||||
Depreciation and amortization |
|
3,990 |
|
|
4,056 |
|
|
4,101 |
|
16,161 |
|
|
16,684 |
|
||||||
|
|
|
|
|
|
|||||||||||||||
EBITDA |
|
(24,798 |
) |
|
(1,912 |
) |
|
(6,635 |
) |
(53,284 |
) |
|
(40,482 |
) |
||||||
Equity-based compensation expense |
|
2,121 |
|
|
1,977 |
|
|
1,840 |
|
6,214 |
|
|
7,223 |
|
||||||
Foreign currency loss (gain), net |
|
13,407 |
|
|
(5,066 |
) |
|
(5,241 |
) |
16,899 |
|
|
(465 |
) |
||||||
Derivative valuation loss (gain), net |
|
(19 |
) |
|
52 |
|
|
64 |
|
(77 |
) |
|
299 |
|
||||||
Impairment and other charges |
|
6,654 |
|
|
— |
|
|
— |
|
6,654 |
|
|
802 |
|
||||||
Early termination charges |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
8,449 |
|
||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA |
$ |
(2,635 |
) |
$ |
(4,949 |
) |
$ |
(9,972 |
) |
$ | (23,594 |
) |
$ |
(24,174 |
) |
|||||
|
|
|
|
|
|
|||||||||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(9,617 |
) |
$ |
(6,040 |
) |
$ | (54,308 |
) |
$ |
(36,622 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Equity-based compensation expense |
|
2,121 |
|
|
1,977 |
|
|
1,840 |
|
6,214 |
|
|
7,223 |
|
||||||
Foreign currency loss (gain), net |
|
13,407 |
|
|
(5,066 |
) |
|
(5,241 |
) |
16,899 |
|
|
(465 |
) |
||||||
Derivative valuation loss (gain), net |
|
(19 |
) |
|
52 |
|
|
64 |
|
(77 |
) |
|
299 |
|
||||||
Impairment and other charges |
|
6,654 |
|
|
— |
|
|
— |
|
6,654 |
|
|
802 |
|
||||||
Early termination charges |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
8,449 |
|
||||||
Income tax effect on non-GAAP adjustments |
|
(3,249 |
) |
|
(143 |
) |
|
1,333 |
|
(4,560 |
) |
|
(2,160 |
) |
||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted Net Income (Loss) |
$ |
2,637 |
|
$ |
(12,797 |
) |
$ |
(8,044 |
) |
$ | (29,178 |
) |
$ |
(22,474 |
) |
|||||
|
|
|
|
|
|
|||||||||||||||
Adjusted Net Income (Loss) per common share— |
|
|
|
|
|
|||||||||||||||
- Basic |
$ |
0.07 |
|
$ |
(0.34 |
) |
$ |
(0.21 |
) |
$ | (0.77 |
) |
$ |
(0.55 |
) |
|||||
- Diluted |
$ |
0.07 |
|
$ |
(0.34 |
) |
$ |
(0.21 |
) |
$ | (0.77 |
) |
$ |
(0.55 |
) |
|||||
Weighted average number of shares – basic |
|
36,921,300 |
|
|
37,468,849 |
|
|
38,834,451 |
|
37,774,280 |
|
|
41,013,069 |
|
||||||
Weighted average number of shares – diluted |
|
37,738,210 |
|
|
37,468,849 |
|
|
38,834,451 |
|
37,774,280 |
|
|
41,013,069 |
|
||||||
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) Impairment and other charges and (v) Early termination charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit), net and depreciation and amortization.
We prepare Adjusted Net Income (Loss) by adjusting net loss 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 net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Impairment and other charges, (v) Early termination charges and (vi) Income tax effect on non-GAAP adjustments.
For the year ended December 31, 2024, we recorded in our consolidated statement of operations
For the year ended December 31, 2023, we recorded in our consolidated statement of operations
View source version on businesswire.com: https://www.businesswire.com/news/home/20250312544285/en/
Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co
Source: Magnachip Semiconductor Corporation
FAQ
What are Magnachip's (MX) Q4 2024 financial results?
How is Magnachip (MX) transforming its business strategy?
What is Magnachip's (MX) revenue guidance for Q1 2025?
What are the key targets in Magnachip's (MX) 3-3-3 strategy?
How did Magnachip's (MX) Power IC business perform in 2024?
