Magnachip Reports Results for Third Quarter 2024

Financial Highlights

  • Q3 consolidated revenue was $66.5 million, at the high-end of guidance range of $61.5-66.5 million.
    • Q3 standard product business revenue was up 25.9% sequentially.
  • Q3 consolidated gross profit margin of 23.3% was in-line with the mid-point of guidance range of 22.5-24.5%.
    • Q3 standard product business gross profit margin was 24.4%, up 1.3 percentage points sequentially.
  • Ended Q3 with cash of $121.1 million; and an additional non-redeemable short-term financial investment of $30 million.
  • Repurchased approximately 0.5 million shares for aggregate purchase price of $2.5 million during the quarter.

 

Operational Highlights

  • Broad-based sequential revenue growth in our PAS business was driven by leaner distribution channels and better-than-typical seasonality. Relative strength was more evident in industrial, computing, and consumer applications. Automotive continues to show strength with additional design wins in Japan and China.
  • Started initial DDIC production and shipments for a premium smartphone model from a leading China OEM.
  • Received a purchase order from a second leading China smartphone OEM and commenced shipments in October 2024.
  • Began sampling our new OLED driver designed with next-generation IP, including sub-pixel rendering (SPR), refined color enhancement, color filter, brightness uniformity control and more than 20% reduction in power consumption than previous generation.
  • Power IC revenue increased sequentially, driven primarily by demand for LCD TVs and OLED IT in tablets and notebooks.

 

SEOUL, South Korea–(BUSINESS WIRE)–Oct. 30, 2024– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the third quarter 2024.

YJ Kim, Magnachip’s CEO, commented, “Our Q3 revenue was at the high-end of guidance driven by broad-based growth in our Standard Product businesses, which is comprised of our MSS and PAS businesses. Standard Product revenue increased 25.9% sequentially and 24% year-over-year. Our discrete Power business benefited from leaner inventory in distribution channels as well as new product designs wins resulting in better-than-seasonal growth. In MSS, the strong sequential growth was due to increased demand for products targeted for China smartphone OEMs, automotive displays, and OLED IT.”

YJ Kim added, “Looking ahead, we expect our Standard Product business revenue in Q4 will modestly decline sequentially, which is better than typical seasonality experienced in past years. We reiterate our full-year guidance for double-digit growth in both MSS and PAS businesses in 2024.”

 

Q3 2024 Financial Highlights

In thousands of U.S. dollars, except share data

GAAP

Q3 2024

Q2 2024

Q/Q change

Q3 2023

Y/Y change

Consolidated Revenues

66,460

53,171

up

25.0

%

61,245

up

8.5

%

Standard Products Business

64,020

50,835

up

25.9

%

51,619

up

24.0

%

Mixed-Signal Solutions

16,446

11,595

up

41.8

%

10,644

up

54.5

%

Power Analog Solutions

47,574

39,240

up

21.2

%

40,975

up

16.1

%

Transitional Fab 3 foundry services(1)

2,440

2,336

up

4.5

%

9,626

down

74.7

%

Consolidated Gross Profit Margin

23.3

%

21.8

%

up

1.5

%pts

23.6

%

down

0.3

%pts

Standard Products Business

24.4

%

23.1

%

up

1.3

%pts

28.7

%

down

4.3

%pts

Mixed-Signal Solutions

38.7

%

34.6

%

up

4.1

%pts

28.8

%

up

9.9

%pts

Power Analog Solutions

19.4

%

19.7

%

down

0.3

%pts

28.6

%

down

9.2

%pts

Operating Loss

(11,003

)

(12,824

)

up

n/a

(9,235

)

down

n/a

Net Loss

(9,617

)

(12,997

)

up

n/a

(5,165

)

down

n/a

Basic Loss per Common Share

(0.26

)

(0.34

)

up

n/a

(0.13

)

down

n/a

Diluted Loss per Common Share

(0.26

)

(0.34

)

up

n/a

(0.13

)

down

n/a

In thousands of U.S. dollars, except share data

Non-GAAP(2)

Q3 2024

Q2 2024

Q/Q change

Q3 2023

Y/Y change

Adjusted Operating Loss

(9,026

)

(11,608

)

up

n/a

(7,064

)

down

n/a

Adjusted EBITDA

(4,949

)

(7,569

)

up

n/a

(2,735

)

down

n/a

Adjusted Net Loss

(12,797

)

(8,134

)

down

n/a

(1,591

)

down

n/a

Adjusted Loss per Common Share—Diluted

(0.34

)

(0.21

)

down

n/a

(0.04

)

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, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and have begun to convert portions of the idle capacity to PAS products during the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS 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 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 GAAP results to non-GAAP results is included in this press release.

 

Q4 and Full-year 2024 Financial Guidance

Beginning in Q1 of 2024, the Company began reporting results under its newly organized businesses: MSS (Mixed-Signal Solutions) and PAS (Power Analog Solutions). While actual results may vary, Magnachip currently expects the following:

For Q4 2024:

  • Consolidated revenue to be in the range of $59.0 to $64.0 million, including approximately $2.0 million of Transitional Foundry Services.
    • MSS revenue to be in the range of $15 to $17 million, down 2.7% sequentially but up 87% year-over-year at the mid-point. This compares with MSS revenue of $16.4 million in Q3 2024 and MSS equivalent revenue of $8.6 million in Q4 2023.
    • PAS revenue to be in the range of $42 to $45 million, down 8.6% sequentially but up 33.3% year-over-year at the mid-point. This compares with PAS revenue of $47.6 million in Q3 2024 and PAS equivalent revenue of $32.6 million in Q4 2023.
  • Consolidated gross profit margin to be in the range of 21.5% to 23.5%.
    • MSS gross profit margin to be in the range of 37.5% to 40.5%. This compares with MSS gross profit margin of 38.7% in Q3 2024 and MSS equivalent gross profit margin of 41.3% in Q4 2023.
    • PAS gross profit margin to be in the range of 17% to 19%. This compares with PAS gross profit margin of 19.4% in Q3 2024 and PAS equivalent gross profit margin of 18.1% in Q4 2023.

 

For the full-year 2024, we currently expect:

  • MSS revenue to grow double digits year-over-year as compared with MSS equivalent revenue of $44.4 million in 2023, consistent with what we communicated throughout the year.
  • PAS revenue to grow double digits year-over-year as compared with PAS equivalent revenue of $151.3 million in 2023, consistent with what we communicated throughout the year.
  • Transitional Foundry Services revenue will be wound down by the end of 2024, as expected. We expect any remaining amounts to be immaterial beyond Q4 2024.
  • Consolidated revenue flattish, as compared to our prior expectation of flattish-to-slightly down.
  • Consolidated gross profit margin between 21% to 22%, as compared to our prior expectation of 19% to 22%. This compares with the consolidated gross profit margin of 22.4% in 2023.

 

Q3 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, October 30, 2024, 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/kr.

 

Online registration: https://register.vevent.com/register/BId4ac9a385dd74e4f813c5964a3ac6546

 

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 expectations about estimated historical or future operating results and financial performance, outlook and business plans, including fourth quarter and full year 2024 revenue and gross profit margin expectations, 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 Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s fourth quarter and full year 2024 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, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; 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 that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, 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.

 

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 more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/kr. 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 U.S. dollars, except share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,
2024

June 30,
2024

September 30,
2023

September 30,
2024

September 30,
2023

Revenues:

Net sales – standard products business

$

64,020

$

50,835

$

51,619

$

160,396

$

154,508

Net sales – transitional Fab 3 foundry services

2,440

2,336

9,626

8,302

24,721

Total revenues

66,460

53,171

61,245

168,698

179,229

Cost of sales:

Cost of sales – standard products business

48,400

39,113

36,829

123,401

112,008

Cost of sales – transitional Fab 3 foundry services

2,599

2,457

9,935

9,267

27,108

Total cost of sales

50,999

41,570

46,764

132,668

139,116

Gross profit

15,461

11,601

14,481

36,030

40,113

Gross profit as a percentage of standard products business net sales

24.4%

23.1%

28.7%

23.1%

27.5%

Gross profit as a percentage of total revenues

23.3%

21.8%

23.6%

21.4%

22.4%

Operating expenses:

Selling, general and administrative expenses

12,091

11,734

12,089

35,089

36,391

Research and development expenses

14,373

12,691

11,627

38,227

36,180

Early termination and other charges

9,251

Total operating expenses

26,464

24,425

23,716

73,316

81,822

Operating loss

(11,003

)

(12,824

)

(9,235

)

(37,286

)

(41,709

)

Interest income

2,051

2,228

2,382

6,492

7,916

Interest expense

(574

)

(554

)

(189

)

(1,366

)

(645

)

Foreign currency gain (loss), net

5,066

(3,557

)

(2,583

)

(3,492

)

(4,776

)

Other income (loss), net

(31

)

108

87

121

55

Loss before income tax expense (benefit)

(4,491

)

(14,599

)

(9,538

)

(35,531

)

(39,159

)

Income tax expense (benefit)

5,126

(1,602

)

(4,373

)

2,500

(8,577

)

Net loss

$

(9,617

)

$

(12,997

)

$

(5,165

)

$

(38,031

)

$

(30,582

)

Basic loss per common share—

$

(0.26

)

$

(0.34

)

$

(0.13

)

$

(1.00

)

$

(0.73

)

Diluted loss per common share—

$

(0.26

)

$

(0.34

)

$

(0.13

)

$

(1.00

)

$

(0.73

)

Weighted average number of shares—

Basic

37,468,849

38,174,920

40,145,290

38,060,682

41,747,255

Diluted

37,468,849

38,174,920

40,145,290

38,060,682

41,747,255

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

(Unaudited)

September 30,
2024

December 31,
2023

Assets

Current assets

Cash and cash equivalents

$

121,095

$

158,092

Short-term financial instruments

30,000

Accounts receivable, net

28,693

32,641

Inventories, net

36,127

32,733

Other receivables

5,301

4,295

Prepaid expenses

11,614

7,390

Hedge collateral

1,000

1,000

Other current assets

8,208

9,283

Total current assets

242,038

245,434

Property, plant and equipment, net

92,383

100,122

Operating lease right-of-use assets

3,810

4,639

Intangible assets, net

1,353

1,537

Long-term prepaid expenses

615

5,736

Deferred income taxes

46,643

50,836

Other non-current assets

24,513

12,187

Total assets

$

411,355

$

420,491

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

24,644

$

24,443

Other accounts payable

11,768

5,292

Accrued expenses

9,133

10,457

Accrued income taxes

32

1,496

Operating lease liabilities

1,754

1,914

Other current liabilities

3,005

3,286

Total current liabilities

50,336

46,888

Long-term borrowing

30,312

Accrued severance benefits, net

17,347

16,020

Non-current operating lease liabilities

2,191

2,897

Other non-current liabilities

11,596

10,088

Total liabilities

111,782

75,893

Commitments and contingencies

Stockholders’ equity

Common stock, $0.01 par value, 150,000,000 shares authorized, 57,032,206 shares issued and 37,292,044 outstanding at September 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023

569

569

Additional paid-in capital

277,306

273,256

Retained earnings

260,853

298,884

Treasury stock, 19,740,162 shares at September 30, 2024 and 18,118,652 shares at December 31, 2023, respectively

(222,503

)

(213,454

)

Accumulated other comprehensive loss

(16,652

)

(14,657

)

Total stockholders’ equity

299,573

344,598

Total liabilities and stockholders’ equity

$

411,355

$

420,491

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(Unaudited)

Three Months
Ended

Nine Months
Ended

September 30,
2024

September 30,
2024

September 30,
2023

Cash flows from operating activities

Net loss

$

(9,617

)

$

(38,031

)

$

(30,582

)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization

4,056

12,171

12,583

Provision for severance benefits

1,582

4,552

5,358

Loss (gain) on foreign currency, net

(10,708

)

6,140

14,532

Provision for inventory reserves

(591

)

(1,615

)

3,035

Stock-based compensation

1,977

4,093

5,383

Deferred income taxes

(47

)

3,111

88

Others, net

126

552

592

Changes in operating assets and liabilities

Accounts receivable, net

3,795

3,560

(6,409

)

Inventories

1,084

(2,365

)

3,635

Other receivables

(1,631

)

(1,030

)

4,993

Prepaid expenses

1,818

5,645

5,653

Other current assets

4,086

1,155

(7,944

)

Accounts payable

(1,325

)

619

6,066

Other accounts payable

(3,521

)

(10,197

)

(6,738

)

Accrued expenses

(912

)

(1,339

)

619

Accrued income taxes

(1,442

)

(1,459

)

(3,014

)

Other current liabilities

(693

)

(240

)

(741

)

Other non-current liabilities

(99

)

(345

)

(279

)

Payment of severance benefits

(527

)

(1,889

)

(6,183

)

Others, net

(316

)

(1,077

)

(841

)

Net cash used in operating activities

(12,905

)

(17,989

)

(194

)

Cash flows from investing activities

Proceeds from settlement of hedge collateral

627

627

3,335

Payment of hedge collateral

(612

)

(3,154

)

Purchase of property, plant and equipment

(2,609

)

(4,175

)

(2,280

)

Payment for intellectual property registration

(85

)

(263

)

(230

)

Collection of guarantee deposits

15

1,153

4,984

Payment of guarantee deposits

(180

)

(2,090

)

(7,276

)

Increase in short-term financial instruments

(30,000

)

Others, net

(37

)

(37

)

Net cash used in investing activities

(2,269

)

(35,397

)

(4,621

)

Cash flows from financing activities

Proceeds from long-term borrowing

30,059

Proceeds from exercise of stock options

27

Acquisition of treasury stock

(2,648

)

(9,507

)

(43,087

)

Repayment of financing related to water treatment facility arrangement

(119

)

(357

)

(371

)

Repayment of principal portion of finance lease liabilities

(35

)

(104

)

(69

)

Net cash provided by (used in) financing activities

(2,802

)

20,091

(43,500

)

Effect of exchange rates on cash and cash equivalents

6,604

(3,702

)

(10,518

)

Net decrease in cash and cash equivalents

(11,372

)

(36,997

)

(58,833

)

Cash and cash equivalents

Beginning of the period

132,467

158,092

225,477

End of the period

$

121,095

$

121,095

$

166,644

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS

(In thousands of U.S. dollars)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,
2024

June 30,
2024

September 30,
2023

September 30,
2024

September 30,
2023

Operating loss

$

(11,003

)

$

(12,824

)

$

(9,235

)

$

(37,286

)

$

(41,709

)

Adjustments:

Equity-based compensation expense

1,977

1,216

2,171

4,093

5,383

Early termination and other charges

9,251

Adjusted Operating Income Loss

$

(9,026

)

$

(11,608

)

$

(7,064

)

$

(33,193

)

$

(27,075

)

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 and (ii) Early termination and other charges.

For the nine months ended September 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET LOSS

(In thousands of U.S. dollars, except share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,
2024

June 30,
2024

September 30,
2023

September 30,
2024

September 30,
2023

Net loss

$

(9,617

)

$

(12,997

)

$

(5,165

)

$

(38,031

)

$

(30,582

)

Adjustments:

Interest income

(2,051

)

(2,228

)

(2,382

)

(6,492

)

(7,916

)

Interest expense

574

554

189

1,366

645

Income tax expense (benefit)

5,126

(1,602

)

(4,373

)

2,500

(8,577

)

Depreciation and amortization

4,056

4,016

4,081

12,171

12,583

EBITDA

(1,912

)

(12,257

)

(7,650

)

(28,486

)

(33,847

)

Equity-based compensation expense

1,977

1,216

2,171

4,093

5,383

Foreign currency loss (gain), net

(5,066

)

3,557

2,583

3,492

4,776

Derivative valuation loss (gain), net

52

(85

)

161

(58

)

235

Early termination and other charges

9,251

Adjusted EBITDA

$

(4,949

)

$

(7,569

)

$

(2,735

)

$

(20,959

)

$

(14,202

)

Net loss

$

(9,617

)

$

(12,997

)

$

(5,165

)

$

(38,031

)

$

(30,582

)

Adjustments:

Equity-based compensation expense

1,977

1,216

2,171

4,093

5,383

Foreign currency loss (gain), net

(5,066

)

3,557

2,583

3,492

4,776

Derivative valuation loss (gain), net

52

(85

)

161

(58

)

235

Early termination and other charges

9,251

Income tax effect on non-GAAP adjustments

(143

)

175

(1,341

)

(1,311

)

(3,493

)

Adjusted Net Loss

$

(12,797

)

$

(8,134

)

$

(1,591

)

$

(31,815

)

$

(14,430

)

Adjusted Net Loss per common share—

– Basic

$

(0.34

)

$

(0.21

)

$

(0.04

)

$

(0.84

)

$

(0.35

)

– Diluted

$

(0.34

)

$

(0.21

)

$

(0.04

)

$

(0.84

)

$

(0.35

)

Weighted average number of shares – basic

37,468,849

38,174,920

40,145,290

38,060,682

41,747,255

Weighted average number of shares – diluted

37,468,849

38,174,920

40,145,290

38,060,682

41,747,255

We present Adjusted EBITDA and Adjusted Net 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 and (iv) Early termination and other charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit) and depreciation and amortization.

We prepare Adjusted Net 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 Loss is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net 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) Early termination and other charges and (v) Income tax effect on non-GAAP adjustments.

For the nine months ended September 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives.

Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co

Source: Magnachip Semiconductor Corporation

2024년 10월 28일, 매그나칩반도체 유한회사(“매그나칩”) (대표이사 김영준, NYSE:MX)는 슈퍼 쇼트 채널 펫 기술(SSCFET®: Super-Short Channel FET) 기반의 7세대 1)MXT LV MOSFET 제품 생산을 확대한다.

최근 모바일 기기가 고성능화되면서 콤팩트하고 2)온저항이 낮은 LV MOSFET에 대한 수요가 높아지는 추세다. 매그나칩 MXT LV MOSFET 제품 시리즈는 매그나칩에서 개발한 슈퍼 쇼트 채널 펫 기술을 적용하여 온저항을 낮춘 것이 특징이다. 슈퍼 쇼트 채널 펫 기술은 MOSFET이 동작할 때 전류가 흐르는 채널의 길이를 획기적으로 줄여서 배터리 성능과 효율성은 높여주면서 배터리 사용 시간을 연장하고 과열 발생을 감소시킨다.

또한, 100μm의 얇은 웨이퍼 레벨 칩 스케일 패키지(WLCSP:Wafer Level Chip Scale Package)로 제조되어 애플리케이션 설계의 유연성을 높인다. 그렇기 때문에 스마트폰은 물론 스마트 워치, 무선 이어폰, 링 형태의 차세대 폼팩터 등 다양한 모바일 기기에 최적화되어 있다.

탁월한 품질과 안정적인 공급 능력을 기반으로 매그나칩 MXT LV MOSFET 제품 시리즈 중 MDWC0151ERH는 메이저 글로벌 스마트폰 제조사의 프리미엄 모델에 탑재되어 왔으며, 이번에 MDWC12D025ERH 제품도 동일 제조사에서 생산량이 가장 많은 중저가형 모델에 적용된다. 2024년 1분기에서 3분기 MXT LV MOSFET 제품 생산량은 작년 동기 대비 120%가량 증가했다.

매그나칩 김영준 부회장은 “최근, 매그나칩은 메이저 글로벌 스마트폰 제조사와 긴밀한 협력 관계를 구축했다”라며, “끊임없는 기술 개발과 혁신으로 모바일 기기 시장뿐만 아니라 전기 자전거, 스쿠터, 전자담배, 드론 등 다양한 배터리 시장을 타깃으로 한 매그나칩 MXT MOSFET 포트폴리오를 강화해 나갈 것”이라고 밝혔다.

 

 

 


1)MXT LV MOSFET(Magnachip eXtreme Trench Low Voltage MOSFET): 매그나칩의 최신 Trench MOSFET 제품군 중 12V~40V MOSFET.

2)온저항(RSS(on)): MOSFET이 ON 동작할 때 직렬(Common drain)로 연결된 MOSFET 소스 단자 사이(source to source)의 저항.

 

 

 

 

관련 링크

파워솔루션 > MXT MOSFETs

 

관련 기사

매그나칩, 슈퍼 쇼트 채널 펫 2 기술 기반 첫 번째 8세대 MXT LV MOSFET 신제품 공개

매그나칩, 슈퍼 쇼트 채널 펫 2 기술 기반 번째 8세대 MXT LV MOSFET 신제품 공개

 

매그나칩반도체

매그나칩은 통신, IoT, 가전, 컴퓨팅, 산업, 자동차 등의 애플리케이션에 탑재되는 아날로그 및 혼성신호 반도체를 설계·생산하고, 전 세계 고객들에게 표준 규격에 맞는 다양한 솔루션을 제공합니다. 40여 년 동안, 매그나칩은 엔지니어링, 설계 및 제조 공정 영역에서 광범위한 전문 지식을 축적해 왔고, 약 1,050건의 특허를 보유하거나 출원 중입니다. 더 자세한 정보는 www.magnachip.com/kr 에서 확인할 수 있습니다. 매그나칩 웹사이트에 기재된 정보나 매그나칩 웹사이트를 통해서 획득한 정보는 이 보도 자료에 포함되지 않습니다.

 

CONTACTS:

미국 (투자자):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@ blueshirtgroup.co
미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com
한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

 

In the Media

   매그나칩, 슈퍼 쇼트 채널 펫 기술 기반 7세대 MXT LV MOSFET 생산 확대 본격화

 

 

SEOUL, South Korea–(BUSINESS WIRE)–Oct. 9, 2024– Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the third quarter ended September 30, 2024, on Wednesday, October 30, 2024, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET 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.

Online registration: https://register.vevent.com/register/BId4ac9a385dd74e4f813c5964a3ac6546

A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the company’s website at www.magnachip.com/kr.

 

About Magnachip Semiconductor Corporation

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 more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/kr. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co

Source: Magnachip Semiconductor Corporation

– 소형 패키지 적용 및 낮은 문턱 전압(gate threshold voltage) 특성으로 자동차 모터와 저전력 제어 시스템에 최적화된 40V MXT MV MOSFET 신제품 출시

 

2024년 9월 9일, 매그나칩반도체 유한회사(대표이사 김영준, 이하 ‘매그나칩’) (NYSE:MX)는 PDFN(Power Dual Flat No-Lead)33 패키지로 설계된 차량용 40V 1)MXT MV MOSFET 신제품 4종을 출시했다고 밝혔다.

 

 

자율주행, 인포테인먼트 등 자동차 기술이 고도화되면서 차량에 탑재되는 모터의 종류와 수량이 증가하는 추세다. 그리고, 이러한 모터를 효율적으로 구동시키기 위한 낮은 전력, 컴팩트한 크기와 가벼운 중량을 가진 고성능 MOSFET의 중요도가 높아지고 있다.

이번에 출시된 매그나칩 40V MXT MV MOSFET 신제품 4종은 PDFN33 패키지를 적용하여 PDFN56 패키지 40V MOSFET에 비해 면적은 60% 이상, 무게는 75% 정도 감소했다. 그래서, 성능, 연비, 공간 유연성이 중요한 자동차 모터와 저전력 제어 시스템에 더욱 적합해졌다.

이번 신제품 중 AMDV040N029LVRH, AMDV040N036LVRH 및 AMDV040N042LVRH 3종은 1.8V의 낮은 문턱 전압이 특징이다. 문턱 전압이란 MOSFET이 꺼진 상태에서 켜지는 상태로 전환되는 지점을 결정하는 전압으로, 문턱 전압이 낮으면 MOSFET을 작동시키기 위해 필요한 에너지가 줄어들어 전체 시스템의 전력 소비가 감소하게 된다.

이번에 출시된 매그나칩 차량용 40V MXT MV MOSFET 신제품 4종의 주요 스펙은 아래와 같다.

 

 

매그나칩 김영준 대표 이사는 “이번 신제품 출시로 매그나칩은 변화하는 자동차 부품 시장의 다양한 수요를 충족하는 차량용 전력 반도체 라인업을 한층 더 강화했다”라며 “앞으로도 기술 혁신과 안정적인 제품 공급으로 글로벌 시장에서 입지를 강화해 나갈 것”이라고 말했다.

 

 

 


1)MXT MV MOSFET(Magnachip eXtreme Trench Medium Voltage MOSFET): 매그나칩의 최첨단 Trench MOSFET 제품군 중 40V~200V MOSFET

2)온저항(RDS(on)): MOSFET이 ON 동작할 때, 드레인과 소스 사이의 저항

 

관련 링크

매그나칩 차량용 전력 반도체에 대한 제품 스펙과 데이터시트는 https://www.magnachip.com/kr/automotive-solutions를 참고하세요.

 

관련 기사

매그나칩, 40V MXT MV MOSFET 신제품 출시로 차량용 전력 반도체 라인업 확대

매그나칩, 자동차 전동식 파워 스티어링 전자 제어 장치용 30V MXT LV MOSFET 신제품 본격 양산

 

매그나칩반도체

매그나칩은 통신, IoT, 가전, 컴퓨팅, 산업, 자동차 등의 애플리케이션에 탑재되는 아날로그 및 혼성신호 반도체를 설계·생산하고, 전 세계 고객들에게 표준 규격에 맞는 다양한 솔루션을 제공합니다. 40여 년 동안, 매그나칩은 엔지니어링, 설계 및 제조 공정 영역에서 광범위한 전문 지식을 축적해 왔고, 약 1,050건의 특허를 보유하거나 출원 중입니다. 더 자세한 정보는 www.magnachip.com/kr 에서 확인할 수 있습니다. 매그나칩 웹사이트에 기재된 정보나 매그나칩 웹사이트를 통해서 획득한 정보는 이 보도 자료에 포함되지 않습니다.

 

CONTACTS:

미국 (투자자):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@ blueshirtgroup.co
미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com
한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

 

In the Media

   매그나칩, 40V MXT MV MOSFET 신제품 4종 출시

Magnachip Reports Results for Second Quarter 2024

Financial Highlights

  • Q2 consolidated revenue was $53.2 million, above the mid-point of guidance range of $49-54 million.
    • Q2 standard product business revenue was up 11.6% sequentially.
  • Q2 consolidated gross profit margin was 21.8%, above the upper end of guidance range of 17-19%.
    • Q2 standard product business gross profit margin was 23.1%, up nearly two percentage points sequentially.
  • Ended Q2 with cash of $132.5 million; and also have an additional short-term financial investment of $30 million.
  • Repurchased approximately 0.5 million shares for aggregate purchase price of $2.3 million during the quarter.

 

Operational Highlights

  • Held formal opening ceremony in China for newly formed subsidiary, Magnachip Technology Company, Ltd. (MTC).
  • Secured a purchase commitment for OLED driver targeted for a premium smartphone OEM; mass production and revenue currently expected to begin by year-end.
  • Delivered samples of our next-generation OLED driver to a panel supplier for a leading Chinese smartphone OEM’s winter 2024 model, now in the final design validation phase.
  • Taped out a new OLED driver designed with next-generation IP including sub-pixel rendering (SPR), refined color enhancement, color filter, brightness uniformity control and more than 20% reduction in power consumption than previous generation.
  • Sampled our first OLED smartwatch DDIC in Q2 following a Q1 tape-out, demonstrating our expansion into new, adjacent markets.
  • Power IC revenue increased sequentially, driven primarily by demand for LCD TVs and OLED IT monitors.
  • Sequential revenue growth in PAS segment was driven by industrial, communication and consumer applications. Automotive rebounded with new design wins in Japan and China.
  • Launched new 75A/1200V IGBT for a design opportunity in solar applications; expected to begin mass production in the second half of the year.

 

SEOUL, South Korea–(BUSINESS WIRE)–Jul. 31, 2024– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the second quarter 2024.

YJ Kim, Magnachip’s CEO, commented, “Our Q2 revenue was above the mid-point of guidance and gross margin was better than expected. Revenue in our Standard Products Business, which is comprised of our MSS and PAS businesses, increased sequentially by double digits in Q2. We benefited from a recovery in our Power business, increased demand for OLED drivers for China smartphones and European autos, and an upturn in Power IC demand for OLED IT panels and LED TVs.”

YJ Kim added, “Looking ahead, we currently expect Standard Product Business revenue will increase sequentially once again in Q3, driven by leaner distribution channels in Power, as well as seasonality, and an increase in OLED and Power IC businesses.”

 

Q2 2024 Financial Highlights

In thousands of U.S. dollars, except share data

GAAP

Q2 2024

Q1 2024

Q/Q change

Q2 2023

Y/Y change

Consolidated Revenues

53,171

49,067

up

8.4

%

60,979

down

12.8

%

Standard Products Business

50,835

45,541

up

11.6

%

51,375

down

1.1

%

Mixed-Signal Solutions

11,595

9,006

up

28.7

%

12,357

down

6.2

%

Power Analog Solutions

39,240

36,535

up

7.4

%

39,018

up

0.6

%

Transitional Fab 3 foundry services(1)

2,336

3,526

down

33.7

%

9,604

down

75.7

%

Consolidated Gross Profit Margin

21.8

%

18.3

%

up

3.5

%pts

22.2

%

down

0.4

%pts

Standard Products Business

23.1

%

21.2

%

up

1.9

%pts

26.3

%

down

3.2

%pts

Mixed-Signal Solutions

34.6

%

44.6

%

down

10.0

%pts

36.4

%

down

1.8

%pts

Power Analog Solutions

19.7

%

15.4

%

up

4.3

%pts

23.1

%

down

3.4

%pts

Operating Loss

(12,824

)

(13,459

)

up

n/a

(10,656

)

down

n/a

Net Loss

(12,997

)

(15,417

)

up

n/a

(3,947

)

down

n/a

Basic Loss per Common Share

(0.34

)

(0.40

)

up

n/a

(0.09

)

down

n/a

Diluted Loss per Common Share

(0.34

)

(0.40

)

up

n/a

(0.09

)

down

n/a

In thousands of U.S. dollars, except share data

Non-GAAP(2)

Q2 2024

Q1 2024

Q/Q change

Q2 2023

Y/Y change

Adjusted Operating Loss

(11,608

)

(12,559

)

up

n/a

(7,762

)

down

n/a

Adjusted EBITDA

(7,569

)

(8,441

)

up

n/a

(3,594

)

down

n/a

Adjusted Net Loss

(8,134

)

(10,884

)

up

n/a

(2,472

)

down

n/a

Adjusted Loss per Common Share—Diluted

(0.21

)

(0.28

)

up

n/a

(0.06

)

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, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and planning to convert portions of the idle capacity to PAS products beginning around the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS 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 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 GAAP results to non-GAAP results is included in this press release.

 

Q3 and Full-year 2024 Financial Guidance

Beginning in Q1, the Company began reporting results under its newly organized businesses: MSS (Mixed-Signal Solutions) and PAS (Power Analog Solutions). While actual results may vary, Magnachip currently expects the following:

For Q3 2024:

  • Consolidated revenue to be in the range of $61.5 to $66.5 million, including approximately $1.5 million of Transitional Foundry Services.
    • MSS revenue to be in the range of $14.5 to $16.5 million, up 33.7% sequentially and 46.2% year-over-year at the mid-point. This compares with MSS equivalent revenue of $11.6 million in Q2 2024 and $10.6 million in Q3 2023.
    • PAS revenue to be in the range of $45.5 to $48.5 million, up 19.8% sequentially and 14.6% year-over-year at the mid-point. This compares with PAS equivalent revenue of $39.2 million in Q2 2024 and $41.0 million in Q3 2023.
  • Consolidated gross profit margin to be in the range of 22.5% to 24.5%.
    • MSS gross profit margin to be in the range of 36.5% to 39.5%. This compares with MSS equivalent gross profit margin of 34.6% in Q2 2024 and 28.8% in Q3 2023.
    • PAS gross profit margin to be in the range of 18.5% to 20.5%. This compares with PAS equivalent gross profit margin of 19.7% in Q2 2024 and 28.6% in Q3 2023.

 

For the full-year 2024, we currently expect:

  • MSS revenue to grow double digits year-over-year as compared with MSS equivalent revenue of $44.4 million in 2023, consistent with what we communicated at the beginning of the year.
  • PAS revenue to grow double digits year-over-year as compared with PAS equivalent revenue of $151.3 million in 2023, consistent with what we communicated at the beginning of the year.
  • Transitional Foundry Services revenue will decline in 2024, as expected. We expect this revenue to phase out by the end of the year.
  • Consolidated revenue flattish-to-slightly down, compared to prior expectation of flat-to-up-slightly year-over-year.
  • Consolidated gross profit margin between 19% to 22%, above our prior expectation of 17% to 20%. This compares with the consolidated gross profit margin of 22.4% in 2023.

 

Q2 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, July 31, 2024, 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/kr.

 

Online registration: https://register.vevent.com/register/BId7d466aa72124a439fec483c2b65d307

 

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 expectations about estimated historical or future operating results and financial performance, outlook and business plans, including third quarter and full year 2024 revenue and gross profit margin expectations, 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 Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s third quarter and full year 2024 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, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; 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 that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, 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.

 

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 more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/kr. 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 U.S. dollars, except share data)
(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

March 31,
2024

June 30,
2023

June 30,
2024

June 30,
2023

Revenues:

Net sales – standard products business

$

50,835

$

45,541

$

51,375

$

96,376

$

102,889

Net sales – transitional Fab 3 foundry services

2,336

3,526

9,604

5,862

15,095

Total revenues

53,171

49,067

60,979

102,238

117,984

Cost of sales:

Cost of sales – standard products business

39,113

35,888

37,867

75,001

75,179

Cost of sales – transitional Fab 3 foundry services

2,457

4,211

9,574

6,668

17,173

Total cost of sales

41,570

40,099

47,441

81,669

92,352

Gross profit

11,601

8,968

13,538

20,569

25,632

Gross profit as a percentage of standard products business net sales

23.1

%

21.2

%

26.3

%

22.2

%

26.9

%

Gross profit as a percentage of total revenues

21.8

%

18.3

%

22.2

%

20.1

%

21.7

%

Operating expenses:

Selling, general and administrative expenses

11,734

11,264

12,137

22,998

24,302

Research and development expenses

12,691

11,163

11,255

23,854

24,553

Early termination and other charges

802

9,251

Total operating expenses

24,425

22,427

24,194

46,852

58,106

Operating loss

(12,824

)

(13,459

)

(10,656

)

(26,283

)

(32,474

)

Interest income

2,228

2,213

2,692

4,441

5,534

Interest expense

(554

)

(238

)

(200

)

(792

)

(456

)

Foreign currency gain (loss), net

(3,557

)

(5,001

)

1,237

(8,558

)

(2,193

)

Other income (loss), net

108

44

3

152

(32

)

Loss before income tax benefit

(14,599

)

(16,441

)

(6,924

)

(31,040

)

(29,621

)

Income tax benefit

(1,602

)

(1,024

)

(2,977

)

(2,626

)

(4,204

)

Net loss

$

(12,997

)

$

(15,417

)

$

(3,947

)

$

(28,414

)

$

(25,417

)

Basic loss per common share—

$

(0.34

)

(0.40

)

$

(0.09

)

$

(0.74

)

$

(0.60

)

Diluted loss per common share—

$

(0.34

)

(0.40

)

$

(0.09

)

$

(0.74

)

$

(0.60

)

Weighted average number of shares—

Basic

38,174,920

38,544,781

41,741,310

38,359,851

42,561,514

Diluted

38,174,920

38,544,781

41,741,310

38,359,851

42,561,514

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share data)
(Unaudited)

June 30,

2024

December 31,

2023

Assets

Current assets

Cash and cash equivalents

$

132,467

$

158,092

Short-term financial instruments

30,000

Accounts receivable, net

31,175

32,641

Inventories, net

34,783

32,733

Other receivables

3,977

4,295

Prepaid expenses

8,548

7,390

Hedge collateral

1,600

1,000

Other current assets

11,653

9,283

Total current assets

254,203

245,434

Property, plant and equipment, net

88,330

100,122

Operating lease right-of-use assets

4,181

4,639

Intangible assets, net

1,320

1,537

Long-term prepaid expenses

8,085

5,736

Deferred income taxes

44,578

50,836

Other non-current assets

11,998

12,187

Total assets

$

412,695

$

420,491

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

25,575

$

24,443

Other accounts payable

8,383

5,292

Accrued expenses

9,199

10,457

Accrued income taxes

1,422

1,496

Operating lease liabilities

1,805

1,914

Other current liabilities

4,168

3,286

Total current liabilities

50,552

46,888

Long-term borrowing

28,794

Accrued severance benefits, net

15,759

16,020

Non-current operating lease liabilities

2,514

2,897

Other non-current liabilities

9,228

10,088

Total liabilities

106,847

75,893

Commitments and contingencies

Stockholders’ equity

Common stock, $0.01 par value, 150,000,000 shares authorized, 57,015,569 shares issued and 37,799,482 outstanding at June 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023

569

569

Additional paid-in capital

275,329

273,256

Retained earnings

270,470

298,884

Treasury stock, 19,216,087 shares at June 30, 2024 and 18,118,652 shares at December 31, 2023, respectively

(219,949

)

(213,454

)

Accumulated other comprehensive loss

(20,571

)

(14,657

)

Total stockholders’ equity

305,848

344,598

Total liabilities and stockholders’ equity

$

412,695

$

420,491

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

June 30,
2024

June 30,
2023

Cash flows from operating activities

Net loss

$

(12,997

)

$

(28,414

)

$

(25,417

)

Adjustments to reconcile net loss to net cash provided by operating activities

Depreciation and amortization

4,016

8,115

8,502

Provision for severance benefits

1,565

2,970

4,091

Loss on foreign currency, net

6,622

16,848

9,117

Provision for inventory reserves

(77

)

(1,024

)

1,121

Stock-based compensation

1,216

2,116

3,212

Deferred income tax assets

1.845

3,158

27

Other, net

163

426

423

Changes in operating assets and liabilities

Accounts receivable, net

(1,636

)

(235

)

(342

)

Inventories

(4,250

)

(3,449

)

4,911

Other receivables

986

601

4,407

Prepaid expenses

2,922

3,827

4,073

Other current assets

(3,262

)

(2,931

)

(3,678

)

Accounts payable

1,381

1,944

2,880

Other accounts payable

(1,420

)

(6,676

)

(6,488

)

Accrued expenses

1,618

(427

)

1,104

Accrued income taxes

(184

)

(17

)

(2,972

)

Other current liabilities

840

453

(471

)

Other non-current liabilities

378

(246

)

(214

)

Payment of severance benefits

(478

)

(1,362

)

(5,728

)

Other, net

(360

)

(761

)

(487

)

Net cash used in operating activities

(1,112

)

(5,084

)

(1,929

)

Cash flows from investing activities

Proceeds from settlement of hedge collateral

3,335

Payment of hedge collateral

(612

)

(612

)

(2,586

)

Purchase of property, plant and equipment

(898

)

(1,566

)

(1,518

)

Payment for intellectual property registration

(118

)

(178

)

(163

)

Collection of guarantee deposits

5

1,138

1,445

Payment of guarantee deposits

(36

)

(1,910

)

(6,907

)

Increase in short-term financial instruments

(30,000

)

(30,000

)

Other, net

(1

)

0

Net cash used in investing activities

(31,660

)

(33,128

)

(6,394

)

Cash flows from financing activities

Proceeds from long-term borrowings

30,059

Proceeds from exercise of stock options

27

Acquisition of treasury stock

(2,200

)

(6,859

)

(36,840

)

Repayment of financing related to water treatment facility arrangement

(117

)

(238

)

(248

)

Repayment of principal portion of finance lease liabilities

(34

)

(69

)

(46

)

Net cash provided by (used in) financing activities

(2,351

)

22,893

(37,107

)

Effect of exchange rates on cash and cash equivalents

(4,012

)

(10,306

)

(7,093

)

Net decrease in cash and cash equivalents

(39,135

)

(25,625

)

(52,523

)

Cash and cash equivalents

Beginning of the period

171,602

158,092

225,477

End of the period

$

132,467

$

132,467

$

172,954

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS
(In thousands of U.S. dollars)
(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

March 31,
2024

June 30,
2023

June 30,
2024

June 30,
2023

Operating loss

$

(12,824

)

$

(13,459

)

$

(10,656

)

$

(26,283

)

$

(32,474

)

Adjustments:

Equity-based compensation expense

1,216

900

2,092

2,116

3,212

Early termination and other charges

802

9,251

Adjusted Operating Income Loss

$

(11,608

)

$

(12,559

)

$

(7,762

)

$

(24,167

)

$

(20,011

)

 

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 and (ii) Early termination and other charges.

For the six months ended June 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. For the three and six months ended June 30, 2023, we recorded $802 thousand of one-time employee incentives.

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET LOSS
(In thousands of U.S. dollars, except share data)
(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

March 31,
2024

June 30,
2023

June 30,
2024

June 30,
2023

Net loss

$

(12,997

)

$

(15,417

)

$

(3,947

)

$

(28,414

)

$

(25,417

)

Adjustments:

Interest income

(2,228

)

(2,213

)

(2,692

)

(4,441

)

(5,534

)

Interest expense

554

238

200

792

456

Income tax benefit

(1,602

)

(1,024

)

(2,977

)

(2,626

)

(4,204

)

Depreciation and amortization

4,016

4,099

4,145

8,115

8,502

EBITDA

(12,257

)

(14,317

)

(5,271

)

(26,574

)

(26,197

)

Equity-based compensation expense

1,216

900

2,092

2,116

3,212

Foreign currency loss (gain), net

3,557

5,001

(1,237

)

8,558

2,193

Derivative valuation loss (gain), net

(85

)

(25

)

20

(110

)

74

Early termination and other charges

802

9,251

Adjusted EBITDA

$

(7,569

)

$

(8,441

)

$

(3,594

)

$

(16,010

)

$

(11,467

)

Net loss

$

(12,997

)

$

(15,417

)

$

(3,947

)

$

(28,414

)

$

(25,417

)

Adjustments:

Equity-based compensation expense

1,216

900

2,092

2,116

3,212

Foreign currency loss (gain), net

3,557

5,001

(1,237

)

8,558

2,193

Derivative valuation loss (gain), net

(85

)

(25

)

20

(110

)

74

Early termination and other charges

802

9,251

Income tax effect on non-GAAP adjustments

175

(1,343

)

(202

)

(1,168

)

(2,152

)

Adjusted Net Loss

$

(8,134

)

$

(10,884

)

$

(2,472

)

$

(19,018

)

$

(12,839

)

Adjusted Net Loss per common share—

– Basic

$

(0.21

)

$

(0.28

)

$

(0.06

)

$

(0.50

)

$

(0.30

)

– Diluted

$

(0.21

)

$

(0.28

)

$

(0.06

)

$

(0.50

)

$

(0.30

)

Weighted average number of shares – basic

38,174,920

38,544,781

41,741,310

38,359,851

42,561,514

Weighted average number of shares – diluted

38,174,920

38,544,781

41,741,310

38,359,851

42,561,514

 

We present Adjusted EBITDA and Adjusted Net 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 and (iv) Early termination and other charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax benefit and depreciation and amortization.

We prepare Adjusted Net 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 Loss is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net 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) Early termination and other charges and (v) Income tax effect on non-GAAP adjustments.

For the six months ended June 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. For the three and six months ended June 30, 2023, we recorded $802 thousand of one-time employee incentives.

 

Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co

 

Source: Magnachip Semiconductor Corporation

2024년 7월 30일, 매그나칩반도체 유한회사(“매그나칩”) (대표이사 김영준, NYSE:MX)는 스마트폰 배터리 보호 회로용 8세대 1)MXT LV MOSFET (Metal Oxide Semiconductor Field Effect Transistor) 신제품을 출시했다고 밝혔다.

매그나칩은 이번에 새로 출시된 12V Dual N-channel MOSFET(MDWC12D024PERH)에 자체 개발한 슈퍼 쇼트 채널 펫 2(SSCFET® II: Super-Short Channel FET II) 기술을 처음으로 도입했다. 슈퍼 쇼트 채널 펫 2는 MOSFET이 동작할 때 전류가 흐르는 채널의 길이를 획기적으로 줄여 2)온저항을 낮추는 매그나칩의 최신 설계 기술을 말한다.

이 제품은 슈퍼 쇼트 채널 펫 1(SSCFET® I: Super-Short Channel FET I) 기술을 적용한 동일 규격의 자사 이전 세대 제품과 비교해 온저항이 약 22% 감소했다. 이렇게 전력 손실이 감소하면 스마트폰 충전 시간이 단축되고, 고속 충전 모드에서는 스마트폰 내부 온도가 약 12% 낮아진다.

글로벌 스마트폰 제조사들이 AI 기능을 강화한 스마트폰을 출시하면서, MOSFET 제품의 중요성이 커지고 있다. 이번에 출시된 매그나칩의 12V MXT LV MOSFET은 높은 전력 효율을 특징으로 하여 온 디바이스 AI 스마트폰과 같은 다양한 프리미엄 스마트폰의 배터리 보호 회로에 적용될 수 있다.

시장조사업체 옴디아 데이터에 따르면, 2024년 온디바이스 AI 스마트폰 출하량은 2024년부터 2028년까지 연평균 50% 성장하여 2028년에는 6억 600만 대에 달할 것으로 예상된다.

매그나칩 김영준 부회장은 “매그나칩은 작년 초 슈퍼 쇼트 채널 펫 1 기술 개발 및 제품 공급에 이어 이번에는 슈퍼 쇼트 채널 펫 2 기술 확보에 성공했다”라며, “올해 하반기에도 고밀도 셀 트렌치 기술을 개발하여 스마트폰, 스마트워치, 이어폰 등을 타겟으로 한 고성능 파워 솔루션을 지속적으로 출시할 계획이다”라고 말했다.

 

 

 


1)MXT LV MOSFET(Magnachip eXtreme Trench Low Voltage MOSFET): 매그나칩의 최신 Trench MOSFET 제품군 중 12V~40V MOSFET.

2)온저항(RSS(on)): MOSFET이 ON 동작할 때 직렬(Common drain)로 연결된 MOSFET 소스 단자 사이(source to source)의 저항.

 

 

Magnachip's new 12V MXT LV MOSFET is optimized for a wide range of battery protection applications in premium smartphones, particularly on-device AI smartphones

 

 

관련 링크

파워솔루션 > MXT MOSFETs > 12V-24V

 

관련 기사

매그나칩, 모바일 기기 배터리 보호 회로용 MXT LV MOSFET 라인업 확대

 

매그나칩반도체

매그나칩은 통신, IoT, 가전, 컴퓨팅, 산업, 자동차 등의 애플리케이션에 탑재되는 아날로그 및 혼성신호 반도체를 설계·생산하고, 전 세계 고객들에게 표준 규격에 맞는 다양한 솔루션을 제공합니다. 40여 년 동안, 매그나칩은 엔지니어링, 설계 및 제조 공정 영역에서 광범위한 전문 지식을 축적해 왔고, 약 1,100건의 특허를 보유하거나 출원 중입니다. 더 자세한 정보는 www.magnachip.com/kr 에서 확인할 수 있습니다. 매그나칩 웹사이트에 기재된 정보나 매그나칩 웹사이트를 통해서 획득한 정보는 이 보도 자료에 포함되지 않습니다.

 

CONTACTS:

미국 (투자자):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@ blueshirtgroup.co
미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com
한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

 

In the Media

   매그나칩, 슈퍼 쇼트 채널 펫 2 기술 기반 첫 번째 8세대 MXT LV MOSFET 신제품 공개

– 다양한 IGBT 1)MXT MV MOSFET 제품으로 태양광 에너지 시장에 최적화된 솔루션 제공

Magnachip’s solar energy power product lineup_kr

 

2024년 7월 29일, 매그나칩반도체 유한회사(대표이사 김영준, 이하 ‘매그나칩’) (NYSE:MX)는 태양광 인버터에 특화된 TO-247PLUS 패키지 1200V 75A 절연 게이트 양극성 트랜지스터 (IGBT: Insulated Gate Bipolar Transistor)를 개발했다고 밝혔다. 이 제품은 올해 10월 양산될 계획이다.

2020년 매그나칩은 1200V 40A IGBT(MBQ40T120QFS) 제품 출시로 태양광 인버터 시장에 진입했고, 2022년에 650V 75A IGBT(MBQ75T65PEH)를 발표했다. 그리고, 이번에 매그나칩의 최신 설계기술과 공정을 적용한 1200V 75A IGBT(MBQA75T120RFS)를 공개했다.

이번 신제품은 TO-247 패키지에 비해 넓은 히트 스프레더(Heat spreader)를 가진 TO-247PLUS 패키지에 탑재되어 열 방출 효과가 개선되었다. 자사 이전 세대 IGBT에 비해 전도 손실은 14% 이상 감소하여 전력 효율이 향상되어 과부하 환경에서도 안정적인 동작이 가능해져 시스템 신뢰성을 높인다.

기존 40A IGBT 두 개를 75A 한 개 제품으로 대체할 수 있어 이 신제품을 적용하게 되면 애플리케이션의 설계 유연성도 확보된다. 고속 역병렬 다이오드로 잔존 전류를 빠르게 제거하여 스위칭 손실을 줄이면서 최대 175°C의 동작 온도 범위를 보장하는 것도 이번 제품의 주요 특징 중 하나이다. 또한, 국제반도체표준협의기구(JEDEC: Joint Electron Device Engineering Council) 표준에 따라 설계되어 태양광 인버터와 컨버터는 물론 UPS 및 범용 인버터 등 엄격한 전력 등급과 높은 효율성이 요구되는 애플리케이션에 광범위하게 사용될 수 있다.

시장조사업체 옴디아 데이터에 따르면, 재생 에너지 시장에서 디스크리트(Discrete) IGBT와 실리콘 기반 모스펫(Si MOSFET) 영역은 2024년부터 2028년까지 연평균 15% 성장할 것으로 예상된다.

매그나칩 김영준 대표이사는 “이번 신제품 출시로 태양광 에너지 애플리케이션의 기술적 요구사항을 충족하는 고성능 IGBT와 MXT MV MOSFET 제품 라인업이 한층 더 강화되었다”라며, “앞으로도 재생 에너지 시장을 타겟으로 한 혁신적인 파워 솔루션을 지속적으로 공급하여 이 영역의 성장 가능성을 확장할 것”이라고 했다.

 

 

 


1)MXT MV MOSFET(Magnachip eXtreme Trench Medium Voltage MOSFET): 매그나칩의 최첨단 Trench MOSFET 제품군 중 40V~200V MOSFET.

2)RDS(ON)MOSFET이 ON 동작할 때, 드레인과 소스 사이의 저항.

 

 

 

관련 링크

파워 솔루션 > Discrete IGBTs

 

관련 기사

매그나칩, 태양광 인버터에 특화된 650V IGBT 신제품 출시

매그나칩, 8세대 150V MXT MV MOSFET 2 공개

 

매그나칩반도체

매그나칩은 통신, IoT, 가전, 컴퓨팅, 산업, 자동차 등의 애플리케이션에 탑재되는 아날로그 및 혼성신호 반도체를 설계·생산하고, 전 세계 고객들에게 표준 규격에 맞는 다양한 솔루션을 제공합니다. 40여 년 동안, 매그나칩은 엔지니어링, 설계 및 제조 공정 영역에서 광범위한 전문 지식을 축적해 왔고, 약 1,100건의 특허를 보유하거나 출원 중입니다. 더 자세한 정보는 www.magnachip.com/kr 에서 확인할 수 있습니다. 매그나칩 웹사이트에 기재된 정보나 매그나칩 웹사이트를 통해서 획득한 정보는 이 보도 자료에 포함되지 않습니다.

 

CONTACTS:

미국 (투자자):
Steven C. Pelayo, CFA
The Bueshirt Group
Tel. +1(360) 808-5154
steven@ blueshirtgroup.co
미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com
한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

 

In the Media

   매그나칩, TO247PLUS 패키지 1200V IGBT 신제품 출시

SEOUL, South Korea–(BUSINESS WIRE)–Jul. 10, 2024– Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the second quarter ended June 30, 2024, on Wednesday, July 31, 2024, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET 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.

Online registration: https://register.vevent.com/register/BId7d466aa72124a439fec483c2b65d307

A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the company’s website at www.magnachip.com/kr.

 

About Magnachip Semiconductor Corporation

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 more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/kr. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co

Source: Magnachip Semiconductor Corporation

Magnachip Reports Results for First Quarter 2024

Financial Highlights

  • Q1 consolidated revenue was $49.1 million, within our guidance range of $46-51 million.
    • Q1 standard product business revenue was up 10.6% sequentially.
  • Q1 consolidated gross profit margin was 18.3%, within our guidance range of 17-20%.
    • Q1 standard product business gross profit margin was down 170 basis points sequentially, mostly due to lower Gumi fab utilization driven by the wind-down of Transitional Foundry Services.
  • Ended Q1 with $29.7 million in long-term borrowing and $171.6 million in cash.
  • Repurchased approximately $4.1 million or 0.6 million shares during the quarter.

 

Operational Highlights

  • Secured a new high-end smartphone OLED DDIC design for a top tier China smartphone OEM.
  • Secured a new EV automotive OLED DDIC design win for a leading European automaker.
  • Began operations of our new China entity called Magnachip Technology Company (MTC). Our China headquarters is now up and running.
  • Started initial ramp in Q1 for our first-generation OLED DDIC chip for China for the after-service market.
  • Captured our first medium voltage MOSFET automotive design-win for an electric cooling fan with a China-based SUV supplier, as well as an additional automotive power steering related win in Korea.
  • Began to see initial signs of inventory reductions in the distribution channel for our Power Analog Solutions products.

 

SEOUL, South Korea–(BUSINESS WIRE)–May 2, 2024– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the first quarter 2024.

YJ Kim, Magnachip’s Chief Executive Officer, commented, “In Q1 we started the initial revenue ramp for OLED DDICs for the after-service market, and we were awarded two new designs targeted for a leading China smartphone OEM and also for a leading European EV maker. Our Power Analog Solutions (PAS) business revenue grew 12% sequentially driven by smartphones, e-motors, consumer appliances and server power applications, and we now are launching a slate of next-gen power products to help sustain our momentum. We also are encouraged that the power channel inventory showed signs of improvement in the first quarter.”

YJ continued, “Looking forward, we expect sequential revenue growth in Mixed-Signal Solutions (MSS) and PAS to continue in Q2 and we reiterate our prior full-year guidance for double digit growth in both MSS and PAS businesses.”

 

Q1 2024 Financial Highlights

In thousands of U.S. dollars, except share data

GAAP

Q1 2024

Q4 2023

Q/Q change

Q1 2023

Y/Y change

Consolidated Revenues

49,067

50,822

down

3.5

%

57,005

down

13.9

%

Standard Products Business

45,541

41,182

up

10.6

%

51,514

down

11.6

%

Mixed-Signal Solutions

9,006

8,558

up

5.2

%

12,807

down

29.7

%

Power Analog Solutions

36,535

32,624

up

12.0

%

38,707

down

5.6

%

Transitional Fab 3 foundry services(1)

3,526

9,640

down

63.4

%

5,491

down

35.8

%

Consolidated Gross Profit Margin

18.3

%

22.7

%

down

4.4

%pts

21.2

%

down

2.9

%pts

Standard Products Business

21.2

%

22.9

%

down

1.7

%pts

27.6

%

down

6.4

%pts

Mixed-Signal Solutions

44.6

%

41.3

%

up

3.3

%pts

30.2

%

up

14.4

%pts

Power Analog Solutions

15.4

%

18.1

%

down

2.7

%pts

26.7

%

down

11.3

%pts

Operating Loss

(13,459

)

(15,935

)

up

n/a

(21,818

)

up

n/a

Net Loss

(15,417

)

(6,040

)

down

n/a

(21,470

)

up

n/a

Basic Loss per Common Share

(0.40

)

(0.16

)

down

n/a

(0.49

)

up

n/a

Diluted Loss per Common Share

(0.40

)

(0.16

)

down

n/a

(0.49

)

up

n/a

In thousands of U.S. dollars, except share data

Non-GAAP(2)

Q1 2024

Q4 2023

Q/Q change

Q1 2023

Y/Y change

Adjusted Operating Loss

(12,559

)

(14,095

)

up

n/a

(12,249

)

down

n/a

Adjusted EBITDA

(8,441

)

(9,972

)

up

n/a

(7,873

)

down

n/a

Adjusted Net Loss

(10,884

)

(8,044

)

down

n/a

(10,367

)

down

n/a

Adjusted Loss per Common Share—Diluted

(0.28

)

(0.21

)

down

n/a

(0.24

)

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, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and planning to convert portions of the idle capacity to PAS products beginning around the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS 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 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 GAAP results to non-GAAP results is included in this press release.

 

Q2 and 2024 Financial Guidance

Beginning in Q1, the Company begins reporting results under its newly organized businesses: MSS (Mixed-Signal Solutions) and PAS (Power Analog Solutions). While actual results may vary, Magnachip currently expects the following:

 

For Q2 2024:

  • Consolidated revenue to be in the range of $49 to $54 million, including approximately $1.5 million of Transitional Foundry Services.
    • MSS revenue to be in the range of $9.5 to $11.5 million. This compares with MSS equivalent revenue of $9.0 million in Q1 2024 and $12.4 million in Q2 2023
    • PAS revenue to be in the range of $38 to $41 million. This compares with PAS equivalent revenue of $36.5 million in Q1 2024 and $39 million in Q2 2023.
  • Consolidated gross profit margin to be in the range of 17% to 19%.
    • MSS gross profit margin to be in the range of 30% to 33%. This compares with MSS equivalent gross profit margin of 44.6% in Q1 2024, which included non-recurring engineering revenue, and 36.4% in Q2 2023.
    • PAS gross profit margin to be in the range of 15% to 17%, primarily as a result of the impact of idle capacity from the expected decline in Transitional Foundry Services revenue. This compares with PAS equivalent gross profit margin of 15.4% in Q1 2024 and 23.1% in Q2 2023.

 

For the full-year 2024, we reiterate our prior guidance:

  • MSS revenue to grow double digits year-over-year as compared with MSS equivalent revenue of $44.4 million in 2023.
  • PAS revenue to grow double digits year-over-year as compared with PAS equivalent revenue of $151.3 million in 2023.
  • Consolidated revenue flat-to-up-slightly year-over-year as recovery in MSS and PAS is offset by the phase-out of Transitional Foundry Services.
  • Consolidated gross profit margin between 17% to 20%, primarily as a result of the impact of idle capacity expected from the phase-out of Transitional Foundry Services. This compares with the consolidated gross profit margin of 22.4% in 2023.

 

Q1 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Thursday, May 2, 2024, 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/kr.

 

Online registration: https://register.vevent.com/register/BIffb31aff244f4ff99dae99731c4879bf

 

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 expectations about estimated historical or future operating results and financial performance, outlook and business plans, including second quarter and full year 2024 revenue and gross profit margin expectations, 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 Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s second quarter and full year 2024 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, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; 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 that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, 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.

 

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 more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/kr. 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 U.S. dollars, except share data)

(Unaudited)

Three Months Ended

March 31,

December 31,

March 31,

2024

2023

2023

Revenues:

Net sales – standard products business

$

45,541

$

41,182

$

51,514

Net sales – Transitional Fab 3 foundry services

3,526

9,640

5,491

Total revenues

49,067

50,822

57,005

Cost of sales:

Cost of sales – standard products business

35,888

31,754

37,312

Cost of sales – Transitional Fab 3 foundry services

4,211

7,541

7,599

Total cost of sales

40,099

39,295

44,911

Gross profit

8,968

11,527

12,094

Gross profit as a percentage of standard products business net sales

21.2

%

22.9

%

27.6

%

Gross profit as a percentage of total revenues

18.3

%

22.7

%

21.2

%

Operating expenses:

Selling, general and administrative expenses

11,264

12,079

12,165

Research and development expenses

11,163

15,383

13,298

Early termination charges

8,449

Total operating expenses

22,427

27,462

33,912

Operating loss

(13,459

)

(15,935

)

(21,818

)

Interest income

2,213

2,519

2,842

Interest expense

(238

)

(183

)

(256

)

Foreign currency gain (loss), net

(5,001

)

5,241

(3,430

)

Other income (expense), net

44

(42

)

(35

)

Loss before income tax expense

(16,441

)

(8,400

)

(22,697

)

Income tax benefit

(1,024

)

(2,360

)

(1,227

)

Net loss

$

(15,417

)

$

(6,040

)

$

(21,470

)

Basic loss per common share—

$

(0.40

)

$

(0.16

)

$

(0.49

)

Diluted loss per common share—

$

(0.40

)

$

(0.16

)

$

(0.49

)

Weighted average number of shares—

Basic

38,544,781

38,834,451

43,390,832

Diluted

38,544,781

38,834,451

43,390,832

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

(Unaudited)

March 31,

2024

December 31,

2023

Assets

Current assets

Cash and cash equivalents

$

171,602

$

158,092

Accounts receivable, net

30,288

32,641

Inventories, net

31,479

32,733

Other receivables

5,041

4,295

Prepaid expenses

10,255

7,390

Hedge collateral

1,000

1,000

Other current assets

8,550

9,283

Total current assets

258,215

245,434

Property, plant and equipment, net

92,868

100,122

Operating lease right-of-use assets

4,538

4,639

Intangible assets, net

1,391

1,537

Long-term prepaid expenses

9,297

5,736

Deferred income taxes

47,669

50,836

Other non-current assets

12,186

12,187

Total assets

$

426,164

$

420,491

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

24,619

$

24,443

Other accounts payable

5,650

5,292

Accrued expenses

7,951

10,457

Accrued income taxes

1,622

1,496

Operating lease liabilities

1,884

1,914

Other current liabilities

3,158

3,286

Total current liabilities

44,884

46,888

Long-term borrowing

29,700

Accrued severance benefits, net

15,503

16,020

Non-current operating lease liabilities

2,808

2,897

Other non-current liabilities

11,384

10,088

Total liabilities

104,279

75,893

Commitments and contingencies

Stockholders’ equity

Common stock, $0.01 par value, 150,000,000 shares authorized, 57,008,573 shares issued and 38,263,642 outstanding at March 31, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023

569

569

Additional paid-in capital

274,156

273,256

Retained earnings

283,467

298,884

Treasury stock, 18,744,931 shares at March 31, 2024 and 18,118,652 shares at December 31, 2023, respectively

(217,607

)

(213,454

)

Accumulated other comprehensive loss

(18,700

)

(14,657

)

Total stockholders’ equity

321,885

344,598

Total liabilities and stockholders’ equity

$

426,164

$

420,491

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(Unaudited)

Three Months Ended

March 31,

2024

March 31,

2023

Cash flows from operating activities

Net loss

$

(15,417

)

$

(21,470

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities

Depreciation and amortization

4,099

4,357

Provision for severance benefits

1,405

2,330

Loss on foreign currency, net

10,226

9,082

Provision for inventory reserves

(947

)

1,138

Stock-based compensation

900

1,120

Deferred income tax assets

1,313

(4

)

Other, net

263

241

Changes in operating assets and liabilities

Accounts receivable, net

1,401

2,973

Inventories

801

1,062

Other receivables

(385

)

2,376

Other current assets

331

596

Prepaid expenses

905

860

Accounts payable

563

1,904

Other accounts payable

(5,256

)

(1,424

)

Accrued expenses

(2,045

)

7,600

Accrued income taxes

167

(2,923

)

Other current liabilities

(387

)

(596

)

Other non-current liabilities

(624

)

(169

)

Payment of severance benefits

(884

)

(871

)

Other, net

(401

)

(306

)

Net cash provided by (used in) operating activities

(3,972

)

7,876

Cash flows from investing activities

Proceeds from settlement of hedge collateral

1,155

Payment of hedge collateral

(1,093

)

Purchase of property, plant and equipment

(668

)

(135

)

Payment for intellectual property registration

(60

)

(74

)

Collection of guarantee deposits

1,133

19

Payment of guarantee deposits

(1,874

)

(3,482

)

Other, net

1

Net cash used in investing activities

(1,468

)

(3,610

)

Cash flows from financing activities

Proceeds from long-term borrowing

30,059

Proceeds from exercise of stock options

9

Acquisition of treasury stock

(4,659

)

(12,264

)

Repayment of financing related to water treatment facility arrangement

(121

)

(126

)

Repayment of principal portion of finance lease liabilities

(35

)

(24

)

Net cash provided by (used in) financing activities

25,244

(12,405

)

Effect of exchange rates on cash and cash equivalents

(6,294

)

(5,253

)

Net increase (decrease) in cash and cash equivalents

13,510

(13,392

)

Cash and cash equivalents

Beginning of the period

158,092

225,477

End of the period

$

171,602

$

212,085

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS

(In thousands of U.S. dollars)

(Unaudited)

Three Months Ended

 March 31,

December 31,

March 31,

2024

2023

2023

Operating loss

$

(13,459

)

$

(15,935

)

$

(21,818

)

Adjustments:

Equity-based compensation expense

900

1,840

1,120

Early termination charges

8,449

Adjusted Operating Loss

$

(12,559

)

$

(14,095

)

$

(12,249

)

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 and (ii) Early termination charges.

For the three months ended March 31, 2023, we recorded in our consolidated statement of operations $8,449 thousand of early termination charges in connection with the voluntary resignation program offered to the employees during the first quarter of 2023.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET LOSS

(In thousands of U.S. dollars, except share data)

(Unaudited)

Three Months Ended

March 31,

December 31,

March 31,

2024

2023

2023

Net loss

$

(15,417

)

$

(6,040

)

$

(21,470

)

Adjustments:

Interest income

(2,213

)

(2,519

)

(2,842

)

Interest expense

238

183

256

Income tax benefit

(1,024

)