MagnaChip Reports Second Quarter 2013 Financial Results

– Revenue Grew 4.9% Sequentially, 6.2% Year-Over-Year
– Power Solutions Revenue Increased 19.1% Sequentially, 6.7% Year-Over-Year
– Gross Margin Improved 100 BPS Sequentially, 200 BPS Year-Over-Year
– Achieved GAAP EPS of $0.12 and Adjusted EPS of $0.71 Per Diluted Share
– Board Approves New $100 Million Stock Repurchase Program

SEOUL, South Korea and CUPERTINO, Calif., July 30, 2013 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced financial results for the second quarter ended June 30, 2013.

Revenue for the second quarter of 2013 was $215.3 million, a 4.9% increase compared to $205.3 million for the first quarter of 2013 and a 6.2% increase compared to $202.6 million for the second quarter of 2012.

Gross margin was $71.0 million or 33.0%, as a percent of revenue, for the second quarter of 2013. This compares to gross margin of $65.7 million or 32.0% for the first quarter of 2013 and $62.9 million or 31.0% for the second quarter of 2012.

Net income, on a GAAP basis, for the second quarter of 2013 totaled $4.4 million or $0.12 per diluted share. This compares to a net loss of $7.4 million or $0.21 per diluted share for the first quarter of 2013 and a net income of $4.3 million or $0.12 per diluted share for the second quarter of 2012.

“We delivered solid results in the second quarter. Revenue of $215.3 million dollars was up 4.9% sequentially and up 6.2% year-over-year. Gross margin of 33.0% was up 100 basis points compared to last quarter and up 200 basis points compared to Q2 of last year,” said Sang Park, MagnaChip Chairman and CEO. “We’re excited that our effort to focus on fast growing markets with our expanding list of innovative partners has enabled us to deliver ten consecutive quarters of meeting or exceeding our financial guidance, in spite of the recent soft demand from high-end smartphone makers.”

Adjusted net income, a non-GAAP measurement, for the second quarter of 2013 totaled $26.2 million or $0.71 per diluted share compared to $19.7 million or $0.53 per diluted share for the first quarter of 2013 and $17.9 million or $0.48 per diluted share for the second quarter of 2012.

Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a more meaningful understanding of the factors and trends affecting MagnaChip’s business and operations. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income 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 following the financial statements.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $192.6 million at the end of the second quarter of 2013, an increase of $9.6 million from the end of the prior quarter. Cash provided from operations totaled approximately $11.0 million for the second quarter of 2013.

Second Quarter and Recent Company Highlights
Completed Private Offering of $225 Million of Senior Notes.
Lowered Cash Interest Expense by 30.3% or $6.5 Million Annually.
Corporate Credit and Debt Rating Upgraded by Moody’s Investors Service.
Tenth Consecutive Quarter of Meeting or Exceeding Financial Guidance.

Business Outlook
For the third quarter of 2013, MagnaChip expects:
Revenue will be in the range of $215 million to $225 million.
Gross margin will be 33.0% to 34.0% as a percent of revenue.

Conference Call
MagnaChip will hold a conference call at 5 p.m. EDT today to discuss the second quarter 2013 financial results. The conference call will be webcast live and is also available by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 18170301 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at
A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-855-859-2056 or 1-404-537-3406. The access code is 18170301.

About MagnaChip Semiconductor Corporation
Headquartered in South Korea, MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications. MagnaChip believes it has one of the broadest and deepest ranges of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, a large portfolio of registered and pending patents, and extensive engineering and manufacturing process expertise. For more information, please visit Information on or accessible through, MagnaChip’s website is not a part of, and is not incorporated into, this release.

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 our ability to capitalize on improving market dynamics and future operating and financial performance including third quarter 2013 revenue and gross margin. All forward-looking statements included in this release are based upon information available to MagnaChip Semiconductor 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 general economic conditions, 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, and other risks detailed from time to time in MagnaChip’s filings with the SEC, including our Form 10-K filed on February 22, 2013 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC 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.


In the United States:
Robert Pursel
Director of Investor Relations
Tel. +1-408-625-1262

In Korea:
Chankeun Park
Senior Manager, Public Relations
Tel. +82-2-6903-3195

매그나칩, 지능형 센서 MXsensor™제품군출시로 센서사업 신규진출

– 매그나칩 자체 0.18um 미세 공정기술 기반
– 가전, 자동차, 산업, 의료 등 다양한 애플리케이션에 적용

아날로그 및 혼성신호 전문기업 매그나칩반도체(대표:박상호, NYSE:MX)는 자체 0.18um 미세 공정기술 기반의 지능형 센서 제품군 MXsensor™ 출시를 통해 센서 사업에 신규 진출한다고 밝혔다. MXsensor™ 제품군은 전자나침반 (e-Compass, 제품명 MXG1300), 디지털홀센서 (Digital Hall Sensor, 제품명 MXM1120)로 구성된다.

전자나침반은 휴대폰이 향하는 방향을 인식하여 화면과 사용자의 시선을 함께 정렬하는 기능을 제공하는 센서다. 최근 네비게이션, 증강현실과 같은 위치기반 애플리케이션이 모바일 기기의 인기 앱이 되면서, 전자나침반 시장도 스마트폰 시장과 함께 확대될 것으로 예상된다.

매그나칩의 전자나침반(MXG1300)은 자체 개발한 자기 센서 소자 및 16-bit 시그마델타 아날로그디지털 컨버터(Analog Digital Converter)를 사용하여, 업계 최고 수준의 입력 자기장 감지 범위(input dynamic range)를 가진다. 또한, 휴대용 기기에 적합한 저전력기능을 지원하여, 배터리 수명과 전력관리 효율을 높인 것이 특징이다.

디지털홀센서는 주변 자기장의 변화에 따라 전압이 변하는 홀-효과(Hall-Effect)를 이용해 외부의 자기장 세기를 측정하는 센서로서, 차량, 산업, 의료 등 다양한 어플리케이션에 사용된다.

이번에 선보이는 매그나칩의 디지털홀센서(MXM1120)는 10-bit 아날로그디지털 변환기(Analog Digital Converter)와 임베디드로직컨트롤러(Embedded Logic Controller)으로 구성되며, I2C(Inter Integrated-Circuit) 디지털 인터페이스를 통해, 측정된 자기장 세기를 디지털 데이터로 전송한다. 또한, 엔지니어가 프로그래밍을 통해 부가기능을 쉽게 추가할 수 있어 애플리케이션 확대가 용이한 장점이 있다.

매그나칩 김영준 부사장은 “매그나칩 자체 0.18um 미세 공정기술기반으로 기술 경쟁력과 가격 경쟁력을 겸비한 MXsensor™ 제품군을 출시했다” 며 “자동차, 산업, 의료 등 애플리케이션 확대를 통해 다양한 고객 요구를 만족시킬 것이다”라고 말했다.  끝.

매그나칩, SOI RF CMOS 기술이전 통해 RF FEM(Front-End Module) Foundry 시장진출확대


매그나칩반도체(대표이사 박상호)는 나노종합기술원과 SOI RF CMOS 기술이전 계약을 체결하고 수요가 늘고 있는 RF FEM(Front-End Module) 파운드리 시장 진출 확대에 나섰다고 밝혔다.

매그나칩이 이관 받게 되는 0.18um SOI RF CMOS 공정기술은 핸드폰의 FEM(Front-End Module)의 핵심기술로, 기존 화합물 반도체와 실리콘제품을 대체해 제조공정을 약 30% 정도 줄여, 제조단가 및 공정시간의 획기적인 단축과 함께 2/3/4G 및 LTE 휴대전화 시스템의 특정한 요구조건까지 지원할 수 있게 된다.

SOI RF CMOS기술은 최근 다중밴드 다중모드 휴대폰 설계 트랜드로 인해 빠르게 확산되고 있는 RF Switch와 Antenna Tuning Application에 최적화 되어 있는 기술로, 뛰어난 스위치 성능은 물론 Control, Logic, Monitoring, Power를 포함하는 높은 수준의 회로직접을 가능케 하는 기술이다.

이 기술을 통해 기존 화합물반도체를 이용한 FEM에 비해 FEM의 경박단소화가 가능해질 뿐만 아니라, RF 튜닝회로의 핵심요소인 Digital Tunable Capacitor의 집적도 가능하며, 향후에는 PA(Power Amplifier)까지 집적되어 Single-Chip CMOS FEM이 가능해 질 것으로 전망된다.

나노종합기술원 이재영 원장은 “이번 기술 이전은 정부출연 연구기관인 나노종합기술원이 독자적으로 개발한 기술플랫폼이 상업적 제품생산에 적용될 수 있다는 점을 확인 시켜준 모범사례로, 앞으로도 SOI RF CMOS 파운드리 사업이 순조롭게 진행될 수 있도록 매그나칩에 대한 적극적은 지원을 계속해 나가겠다.”고 밝혔다.

매그나칩반도체 박남규 SMS마케팅 전무는 “나노종합기술원의 0.18um SOI RF COMS 기술이전이 매그나칩 파운드리 고객에게 더욱 다양한 공정을 제공할 수 있게 된다는 점에서 큰 의미가 있다”며 “우리의 목표는 급속도로 변화하는 반도체 시장에서 고객과 파트너사들의 니즈를 충족시킬 수 있는 차별화된 새로운 기술을 꾸준히 제공하는 것”이라고 밝혔다.  끝.