Magnachip Reports Results for Second Quarter 2020

– GAAP earnings per share of $0.34 from continuing operations
– Non-GAAP diluted earnings per share from continuing operations of $0.13
– Cash of $192.8 million highest since IPO in March 2011; net operating cash flow of $36.0 million, which was the 5th straight quarter of positive operating cash flow
– Revenue from continuing operations of $118.8 million; reflecting approximately $6 million impact from the strategic exit of non-auto LCD DDIC product line during the second quarter
– Revenue from standard products business of $109.0 million and the Foundry Services Group of $95.8 million
– Non-GAAP combined revenue of $204.7 million from total operations exceeded high-end of the guidance range
– Gross profit margin from continuing operations of 27.0%, 460 bps increase Y/Y
– Gross profit margin from standard products business of 29.5% and the Foundry Services Group of 32.3%
– Excluding depreciation benefit of $2 million from discontinued operations, non-GAAP combined gross margin from total operations of 29.7% surpassed high-end of guidance range

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

For further information, please visit “News Releases” of “Investors” on this website.

Q3 2020 financial guidance

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

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:

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

 

Q1 2020 Market Share Hits an All-Time High of 33.2%, up 8.6% from Q1 2019
DDICs Are Crucial to Next-Gen Smartphone and Other Displays

SEOUL, South Korea July 27, 2020 — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) today announced that it has retained the top position in the global OLED Smartphone DDIC non-captive market in the first quarter of 2020. According to OMDIA, a global market research firm, MagnaChip recorded a 33.2% market share, which represents the all-time high figure for the company.

Over the last 13 years, MagnaChip has held the undisrupted top position in the global smartphone DDIC market for “non-captive suppliers,” referring to the independent producers manufacturing and supplying for customers who do not have controlling interest of the producers. The streak began in 2007, when MagnaChip became the first in the world to start mass production of OLED DDICs for mobile phone displays.

MagnaChip has sustained consistent growth since then and has captured a significant stake of market share figures in recent quarters, such as 24.2% and 27.0% for Q2 and Q3 2019 respectively. The market share figure exceeded 30% for the first time in Q4 2019 with a figure of 32.1% and finally reached 33.2% in Q1 2020, which represents an all-time high.

As smartphone manufacturers are increasingly adopting OLED displays, the demand for OLED DDIC is also expected to grow through 2025. According to another report from OMDIA on OLED smartphone displays, the OLED smartphone market is expected to grow at a compound annual growth rate of 12% over the next 5 years, projecting worldwide shipments to reach 813 million units* in 2025.

MagnaChip is renowned for its OLED DDICs, with features such as a small chip size, low power consumption and advanced process technology. MagnaChip is also the pioneer in High Frame Rate OLED DDICs, which is a vital technology for 5G smartphones.

Based on its wide range of technology and know-how, MagnaChip is planning to expand its business into new areas such as flexible OLED for high-end smartphones, OLED for automotive dashboard and entertainment unit displays along with other premium display technologies with high growth potential in the future.

“We are proud to be first in the OLED DDIC market and to consistently hold the top position in the non-captive market by virtue of our innovative technology,” said YJ Kim, CEO of MagnaChip. “As OLED technology expands into various applications, we will continue to develop new premium products that will delight our customers.”

*Results are not an endorsement of MagnaChip. Any reliance on this data is at third party’s own risk.

 

About MaganaChip Semiconductor

Maganachip 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 to customers worldwide. With more than 40 years of operating history, MaganaChip owns a portfolio of approximately 1,200 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. Please visit www.maganachip.com for more information. Information on or accessible from MaganaChip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):

So-Yeon Jeong

Head of Investor Relations

Tel. +1-408-712-6151

Investor.relations@maganachip.com

USA media / industry analysts:

Mike Newsom

LouVan Communications, Inc.

Tel. +1-617-803-5385

mike@louvanpr.com

Korea / Asia media:

Chankeun Park

Director of Public Relations

Tel. +82-2-6903-5223

chankeun.park@maganachip.com

 MagnaChip expands Board to seven members with addition of Ms. Chung, a former judge who currently serves as the Head of Corporate, External and Legal Affairs, for Microsoft Korea

SEOUL, South Korea and SAN JOSE, Calif., July 20, 2020 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) announced the appointment of Kyo-Hwa (Liz) Chung to its board of directors, effective July 16, 2020.  Ms. Chung currently serves as the Head of Corporate, External and Legal Affairs, for Microsoft Korea, a position she has held since November 2018.  Ms. Chung’s appointment fills a vacancy on MagnaChip’s Board of Directors (“Board”) created as a result of the Board increasing the number of directors on the Board to seven directors from six directors.

Prior to Microsoft Korea, Ms. Chung was with the Korean law firm Kim & Chang, from April 2003 until November 2018, most recently as a partner focusing on the areas of international disputes, government investigations and crisis management.  During September 2008 to March 2009, Ms. Chung was engaged with the international law firm Skadden, Arps, Slate, Meagher & Flom LLP, as a visiting attorney at its New York office.  Ms. Chung served as a judge on the Seoul Administrative Court from 2001 to 2003 and the Seoul Central District Court from 1999 to 2001.  Ms. Chung received an LLM degree from Harvard Law School in 2008, and a Bachelor of Law degree from Korea University in 1996.  Ms. Chung is licensed to practice law in Korea and New York.

“I am delighted to welcome Liz to MagnaChip’s Board.  She will bring extensive experience in the technology industry and her legal expertise to our Board and will complement the diverse skills of our strong Board of Directors team.  We look forward to leveraging her expertise and perspective as we oversee the Company’s exciting journey to its next phase,” said Camillo Martino, Chairman of the Board of MagnaChip.

“I am honored to join the Board of MagnaChip and look forward to contributing to its future success, as we all continue to drive significant long-term shareholder value,” said Ms. Chung.

 

About Maganachip Semiconductor

Maganachip 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 to customers worldwide. With more than 40 years of operating history, Maganachip owns a portfolio of approximately 1,200 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. Please visit www.Maganachip.com for more information. Information on or accessible from Maganachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):

So-Yeon Jeong

Head of Investor Relations

Tel. +1-408-712-6151

Investor.relations@maganachip.com

Korea / Asia media:

Chankeun Park

Director of Public Relations

Tel. +82-2-6903-5223

chankeun.park@maganachip.com

 

Magnachip Expands High Frame Rate DDIC Product Line for OLED Smartphone Displays

High Frame Rate OLED DDICs Are Vital to Full-Featured 5G Smartphones

 

SEOUL, South Korea and SAN JOSE, Calif., July 15, 2020 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) announced an expansion of the company’s High Frame Rate (HFR) OLED DDIC product line for smartphones with the introduction of new DDIC products. HFR is a technology that improves the image quality by increasing the number of frames (images) used per second. This is a vital technology for 5G smartphones, as it facilitates a vivid and smooth visual experience for users.

MagnaChip (MX) today announced an expansion of the company’s high frame rate DDIC Product Line for OLED smartphone displays. High frame rate OLED DDICs are vital to full-featured 5G smartphones.

Anticipating the surge in demand for the 5G smartphone market, MagnaChip has launched five HFR OLED smartphone DDIC products to date, following its early start in research and development efforts. In 2018, MagnaChip began development of a 120Hz HFR DDIC for FHD+ OLED smartphone displays and, in 2Q 2019, became the first company in the world to start mass production. All of MagnaChip’s HFR OLED products now support 144Hz for FHD+ displays and 120Hz for QHD+ displays.

In particular, with the recent release of a super small size product with the optimal frame rates of FHD+ at 144Hz and QHD+ at 120Hz, MagnaChip is solidifying its standing among the leaders in the premium OLED DDIC market. MagnaChip’s products are renowned for their robust performance and stability in the market, and MagnaChip has consistently earned design wins with global mobile phone manufacturers promptly after launch.

The growth in the global smartphone market is expected to be driven by the wave of new 5G smartphones from the leading smartphone manufacturers. According to Omdia, a market research firm, global 5G smartphone shipments will reach 200 million units in 2020 and will grow five times to 1 billion units, accounting for 60% of all smartphone shipments in 2023. Recognizing this market momentum, MagnaChip is rapidly expanding its HFR OLED DDIC product line with the new products announced today, and it plans to roll out additional new products in the near future.

“The 5G smartphone industry is booming and with our innovative HFR OLED technologies, we will continue to take the lead in developing high-end smartphone DDICs,” said YJ Kim, Chief Executive Officer of MagnaChip.

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:

United States (Investor Relations):

So-Yeon Jeong

Head of Investor Relations

Tel. +1-408-712-6151

Investor.relations@maganachip.com

USA media / industry analysts:

Mike Newsom

LouVan Communications, Inc.

Tel. +1-617-803-5385

mike@louvanpr.com

Korea / Asia media:

Chankeun Park

Director of Public Relations

Tel. +82-2-6903-5223

chankeun.park@maganachip.com

MagnaChip to Announce Second Quarter 2020 Financial Results on July 30

 

SEOUL, South Korea and SAN JOSE, Calif., July 8, 2020 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) announced today it will report its results for the second quarter ended June 30, 2020 on Thursday, July 30, 2020 after the close of market. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss the Company’s financial results.

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 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.

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. +82.2.6903.3195

chankeun.park@magnachip.com