• Revenue of $104.1 million was down 5.7% sequentially and down 15.4% year-over-year (YoY). The decrease was mainly due to a 29.3% sequential decline in Display solutions revenue as a result of continued severe supply shortage of 28nm 12″ OLED wafers, partially offset by record revenue in our Power solutions business, which was up 11.4% sequentially and 20.0% YoY on strong demand in premium products.
  • Gross profit margin was 37.5%, up 250 basis points from Q4 and up over 960 basis points from Q1 a year ago. The YoY increase was primarily attributable to an improved product mix, combined with an increase in average selling price under a favorable pricing environment.  Sequentially, Q1 benefited by approximately 200 basis points from the timing mismatch of lower cost 12″ wafers purchased in a prior period and sold in Q1.
  • GAAP diluted earnings per share (EPS) was $0.20.
  • Non-GAAP diluted EPS was $0.28.

 

SEOUL, South KoreaMay 3, 2022 – Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the first quarter of 2022.

(PRNewsfoto/Magnachip Semiconductor)Commenting on the results for the first quarter of 2022, YJ Kim, Magnachip’s chief executive officer stated, “In Q1, we reported revenue of $104.1 million and non-GAAP EPS of 28 cents, which was an increase of 27% year-over-year bolstered by a strong gross profit margin.  As expected, OLED revenue remained severely impacted by the shortage of 28nm 12-inch wafer supply; however, this impact was somewhat offset by strength in our Power solutions business, which achieved yet another record quarterly revenue.”

YJ Kim continued, “Looking forward, the ongoing lockdowns in China has added new challenges to an already stressed supply chain. Despite the current macro issues, which may limit our near-term growth, our recent design tractions with an existing OLED customer, broadening customer base, and new wafer capacity later this year give us confidence and optimism about our long-term growth.”

 

Q1 2022 Financial Highlights
In thousands of U.S. dollars, except share data
GAAP
Q1 2022 Q4 2021 Q/Q change Q1 2021 Y/Y change
Revenues
Standard Products Business
Display Solutions 29,185 41,298 down 29.3 % 58,895 down 50.4 %
Power Solutions 64,825 58,212 up 11.4 % 54,011 up 20.0 %
Transitional Fab 3 foundry services(1) 10,083 10,825 down 6.9 % 10,113 down 0.3 %
Gross Profit Margin 37.5 % 35.0 % up 2.5 % pts 27.9 % up 9.6 % pts
Operating Income (Loss)(2) 12,879 63,870 down 79.8 % (2,091) up n/a
Net Income (Loss) 9,528 53,611 down 82.2 % (7,473) up n/a
Basic Earnings (Loss) per Common Share 0.21 1.16 down 81.9 % (0.19) up n/a
Diluted Earnings (Loss) per Common Share 0.20 1.12 down 82.1 % (0.19) up n/a
In thousands of U.S. dollars, except share data
Non-GAAP(3)
Q1 2022 Q4 2021 Q/Q change Q1 2021 Y/Y change
Adjusted Operating Income 14,517 14,421 up 0.7 % 9,971 up 45.6 %
Adjusted EBITDA 18,755 18,144 up 3.4 % 13,504 up 38.9 %
Adjusted Net Income 12,936 14,606 down 11.4 % 9,346 up 38.4 %
Adjusted Earnings per Common Share—Diluted 0.28 0.31 down 9.7 % 0.22 up 27.3 %
(1) Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, and for a period of up to three years, we will provide transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi (“Transitional Fab 3 Foundry Services”). 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 display solutions and power solutions businesses.
(2) For the three months ended December 31, 2021, operating income of $63.9 million included net gain of $49.4 million that represented $70.2 million income from the recognition of a reverse termination fee, net of professional service fees and expenses of $20.8 million incurred in connection with the contemplated merger transaction.
(3) 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 income (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 2022 Financial Guidance
Our near-term outlook is still being challenged by persisting supply constraints, especially for 28nm 12″ wafers.  While actual results may vary, looking into the next quarter, Magnachip currently expects:

  • Revenue to be in the range of $100 million to $105 million, including about $9.5 million of Transitional Fab 3 Foundry Services.
  • Gross profit margin to be in the range of 33% to 35%.

Q1 2022 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on May 3, 2022 to discuss its financial results. The conference call will be webcast live and also is available by dialing toll-free at 1-844-536-5472 in US/Canada. International call-in participants can dial 1-614-999-9318. The conference ID number is 2619959. Participants are encouraged to initiate their calls at least 10 minutes in advance of the start time to ensure a timely connection. 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. A replay of the conference call will be available until 8:00 p.m. ET on May 10, 2022. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056.  The conference ID number is 2619959.

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 2022 revenue and gross profit margin expectations, and the impact of the COVID-19 pandemic or the emergence of various variants of the virus, escalated trade tensions and supply constraints on Magnachip’s second quarter 2022 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 and/or general economic conditions, including those caused by or related to the COVID-19 pandemic or the emergence of various variants of the virus and governmental lock-downs or other measures implemented in response thereto, other outbreaks of disease, the Russia-Ukraine crisis, recessions, economic instability or civil unrest; 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, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; 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 or supply constraints; 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, our customers and our distributors, including those related to the Russia-Ukraine crisis; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic or the emergence of various variants of the virus; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic or the emergence of various variants of the virus that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on February 23, 2022 (including that the impact of the COVID-19 pandemic or the emergence of various variants of the virus, trade tensions and supply constraints may also exacerbate the risks discussed therein) 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 communications, 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 1,150 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

 

CONTACTS:
Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com

 

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,
2022 2021 2021
Revenues:
          Net sales – standard products business $ 94,010 $ 99,510 $ 112,906
          Net sales – transitional Fab 3 foundry services 10,083 10,825 10,113
               Total revenues 104,093 110,335 123,019
Cost of sales:
          Cost of sales – standard products business 56,080 62,206 79,247
          Cost of sales – transitional Fab 3 foundry services 9,017 9,525 9,390
               Total cost of sales 65,097 71,731 88,637
Gross profit 38,996 38,604 34,382
Gross profit as a percentage of standard products business net sales 40.3 % 37.5 % 29.8 %
Gross profit as a percentage of total revenues 37.5 % 35.0 % 27.9 %
Operating expenses:
          Selling, general and administrative expenses 14,163 13,255 12,634
          Research and development expenses 11,954 12,197 13,423
          Merger-related costs (income), net (49,369) 9,831
          Other charges, net (1,349) 585
               Total operating expenses (income) 26,117 (25,266) 36,473
Operating income (loss) 12,879 63,870 (2,091)
          Interest expense (111) (132) (1,041)
          Foreign currency gain (loss), net (690) 147 (4,671)
          Other income, net 933 947 620
Income (loss) before income tax expense 13,011 64,832 (7,183)
Income tax expense 3,483 11,221 290
Net income (loss) $ 9,528 $ 53,611 $ (7,473)
Basic earnings (loss) per common share— $ 0.21 $ 1.16 $ (0.19)
Diluted earnings (loss) per common share— $ 0.20 $ 1.12 $ (0.19)
Weighted average number of shares—
          Basic 45,603,208 46,369,520 40,292,838
          Diluted 46,693,294 47,691,816 40,292,838

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share data)
(Unaudited)
      March 31,

      2022

    December 31,

      2021

Assets
Current assets
          Cash and cash equivalents $  284,921 $  279,547
          Accounts receivable, net 51,208 50,954
          Inventories, net 36,947 39,370
          Other receivables 26,121 25,895
          Prepaid expenses 9,124 7,675
          Hedge collateral 4,060 3,060
          Other current assets 9,262 2,619
               Total current assets 421,643 409,120
Property, plant and equipment, net 102,675 107,882
Operating lease right-of-use assets 3,719 4,275
Intangible assets, net 2,203 2,377
Long-term prepaid expenses 6,771 8,243
Deferred income taxes 40,246 41,095
Other non-current assets 10,608 10,662
               Total assets $  587,865 $  583,654
Liabilities and Stockholders’ Equity
Current liabilities
          Accounts payable $    37,566 $    37,593
          Other accounts payable 7,707 6,289
          Accrued expenses 20,573 20,071
          Accrued income taxes 9,361 11,823
          Operating lease liabilities 2,223 2,323
          Other current liabilities 6,989 7,382
               Total current liabilities 84,419 85,481
Accrued severance benefits, net 32,572 33,064
Non-current operating lease liabilities 1,496 1,952
Other non-current liabilities 8,216 10,395
               Total liabilities 126,703 130,892
Commitments and contingencies
Stockholders’ equity
          Common stock, $0.01 par value, 150,000,000 shares authorized, 56,225,441 shares issued and
44,894,385 outstanding at March 31, 2022 and 55,905,320 shares issued and 45,659,304
outstanding at December 31, 2021
562 559
          Additional paid-in capital 261,830 241,197
          Retained earnings 353,070 343,542
          Treasury stock, 11,331,056 shares at March 31, 2022 and 10,246,016 shares at December 31, 2021, respectively (148,523 ) (130,306 )
          Accumulated other comprehensive loss (5,777 ) (2,230 )
               Total stockholders’ equity 461,162 452,762
               Total liabilities and stockholders’ equity $   587,865 $   583,654

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(Unaudited)
Three Months Ended
March 31,
2022
March 31,
2021
Cash flows from operating activities
Net income (loss) $        9,528 $       (7,473 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities
          Depreciation and amortization 3,891 3,448
          Provision for severance benefits 1,670 1,771
          Amortization of debt issuance costs and original issue discount 261
          Loss on foreign currency, net 6,380 14,873
          Provision for inventory reserves 145 1,504
          Stock-based compensation 1,638 1,646
          Other, net 161 154
Changes in operating assets and liabilities
          Accounts receivable, net (1,213 ) 9,794
          Inventories 1,456 6,071
          Other receivables 667 (1,438 )
          Other current assets (6,829 ) 5,427
          Accounts payable 538 (7,701 )
          Other accounts payable (702 ) 1,570
          Accrued expenses 187 2,393
          Accrued income taxes (2,346 ) (10,700 )
          Other current liabilities (711 ) 1,087
          Other non-current liabilities (73 ) 18
          Payment of severance benefits (1,389 ) (1,493 )
          Other, net (178 ) 12
Net cash provided by operating activities 12,820 21,224
Cash flows from investing activities
          Proceeds from settlement of hedge collateral 1,829
          Payment of hedge collateral (2,891 )
          Purchase of property, plant and equipment (944 ) (1,082 )
          Payment for intellectual property registration (59 ) (171 )
          Other, net (77 ) (111 )
Net cash used in investing activities (2,142 ) (1,364 )
Cash flows from financing activities
          Proceeds from exercise of stock options 1,781 2,538
          Acquisition of treasury stock (830 ) (1,540 )
          Repayment of financing related to water treatment facility arrangement (134 ) (144 )
          Repayment of principal portion of finance lease liabilities (16 ) (16 )
Net cash provided by financing activities 801 838
Effect of exchange rates on cash and cash equivalents (6,105 ) (10,444 )
Net increase in cash and cash equivalents 5,374 10,254
Cash and cash equivalents at beginning of period 279,547 279,940
Cash and cash equivalents at end of period $    284,921 $    290,194

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME
(In thousands of U.S. dollars)
(Unaudited)
Three Months Ended
March 31, December 31, March 31,
2022 2021 2021
Operating income (loss) $ 12,879 $ 63,870 $ (2,091)
Adjustments:
          Equity-based compensation expense 1,638 1,648 1,646
          Inventory reserve related to Huawei impact of downstream trade restrictions (379)
          Merger-related costs (income), net (49,369) 9,831
          Other charges, net (1,349) 585
Adjusted Operating Income $ 14,517 $ 14,421 $ 9,971

We present Adjusted Operating Income as a supplemental measure of our performance. We define Adjusted Operating Income for the periods indicated as operating income (loss) adjusted to exclude (i) Equity-based compensation expense, (ii) Inventory reserve related to Huawei impact of downstream trade restrictions, (iii) Merger-related costs (income), net and (iv) Other charges, net.

For the three months ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $49,369 thousand that represented income of $70,200 thousand from the recognition of a reverse termination fee, net of professional service fees and expenses of $20,831 thousand incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021. For the same period, we also recorded $1,419 thousand gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018), partially offset by $70 thousand of non-recurring expenses incurred in connection with the regulatory requests.

For the three months ended March 31, 2021, we recorded $9,831 thousand non-recurring professional service fees and expenses incurred in connection with the contemplated merger transaction. For the same period, we also recorded $585 thousand non-recurring professional service fees and expenses incurred in connection with the regulatory requests.

 

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED NET INCOME
(In thousands of U.S. dollars, except share data)
(Unaudited)
Three Months Ended
March 31, December 31, March 31,
2022 2021 2021
Net income (loss) $ 9,528 $ 53,611 $ (7,473)
Adjustments:
          Interest expense (income), net (604) (726) 420
          Income tax expense 3,483 11,221 290
          Depreciation and amortization 3,891 3,663 3,448
EBITDA 16,298 67,769 (3,315)
          Equity-based compensation expense 1,638 1,648 1,646
          Foreign currency loss (gain), net 690 (147) 4,671
          Derivative valuation loss (gain), net 129 (29) 86
          Inventory reserve related to Huawei impact of downstream trade restrictions (379)
          Merger-related costs (income), net (49,369) 9,831
          Other charges, net (1,349) 585
Adjusted EBITDA $ 18,755 $ 18,144 $ 13,504
Net income (loss) $ 9,528 $ 53,611 $ (7,473)
Adjustments:
          Equity-based compensation expense 1,638 1,648 1,646
          Foreign currency loss (gain), net 690 (147) 4,671
          Derivative valuation loss (gain), net 129 (29) 86
          Inventory reserve related to Huawei impact of downstream trade restrictions (379)
          Merger-related costs (income), net (49,369) 9,831
          Other charges, net (1,349) 585
          GAAP and cash tax expense difference 907
          Income tax effect on non-GAAP adjustments 951 9,713
Adjusted Net Income $ 12,936 $ 14,606 $ 9,346
Adjusted Net Income per common share—
          – Basic $ 0.28 $ 0.31 $ 0.23
          – Diluted $ 0.28 $ 0.31 $ 0.22
Weighted average number of shares – basic 45,603,208 46,369,520 40,292,838
Weighted average number of shares – diluted 46,693,294 47,691,816 47,470,416

We present Adjusted EBITDA and Adjusted Net Income as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Inventory reserve related to Huawei impact of downstream trade restrictions, (v) Merger-related costs (income), net and (vi) Other charges, net. EBITDA for the periods indicated is defined as net income (loss) before interest expense (income), net, income tax expense and depreciation and amortization.

We prepare Adjusted Net Income by adjusting net income (loss) to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income for the periods as net income (loss), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Inventory reserve related to Huawei impact of downstream trade restrictions, (v) Merger-related costs (income), net, (vi) Other charges, net, (vii) GAAP and cash tax expense difference and (viii) Income tax effect on non-GAAP adjustments.

For the three months ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $49,369 thousand that represented income of $70,200 thousand from the recognition of a reverse termination fee, net of professional service fees and expenses of $20,831 thousand incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021. For the same period, we also recorded $1,419 thousand gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018), partially offset by $70 thousand of non-recurring expenses incurred in connection with the regulatory requests.

For the three months ended March 31, 2021, we recorded $9,831 thousand non-recurring professional service fees and expenses incurred in connection with the contemplated merger transaction. For the same period, we also recorded $585 thousand non-recurring professional service fees and expenses incurred in connection with the regulatory requests.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/magnachip-reports-results-for-first-quarter-2022-301538749.html

SOURCE Magnachip Semiconductor Corporation

SEOUL, South KoreaApril 7, 2022 – Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the first quarter ended March 31, 2022, on Tuesday, May 3, 2022, 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.

The conference call will be webcast live and also is available by dialing toll-free at 1-844-536-5472 in US/Canada. International call-in participants can dial 1-614-999-9318. The conference ID number is 2619959. Participants are encouraged to initiate their calls at least 10 minutes in advance of the start time to ensure a timely connection. 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.   A replay of the conference call will be available until 8:00 p.m. ET on May 10, 2022. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056.  The conference ID number is 2619959.

 

About Magnachip Semiconductor Corporation

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, 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 1,150 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.

 

CONTACTS:

So-Yeon Jeong
Jeong Consulting
Tel. +1-408-712-6151
Investor.relations@magnachip.com

Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com

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SOURCE Magnachip Semiconductor Corporation

SEOUL, South Korea, Jan. 31, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today it will report its results for the fourth quarter and year ended December 31, 2021 on Wednesday, February 16, 2022 after the close of market. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

The conference call will be webcast live and also is available by dialing toll-free at 1-844-536-5472 in US/Canada. International call-in participants can dial 1-614-999-9318. The conference ID number is 1582546. Participants are encouraged to initiate their calls at least 10 minutes in advance of the start time to ensure a timely connection. 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.   A replay of the conference call will be available until 8:00 p.m. ET on February 23, 2022. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056.  The conference ID number is 1582546.

 

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,200 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.

 

CONTACTS:
So-Yeon Jeong
Jeong Consulting
Tel. +1-408-712-6151
Investor.relations@magnachip.com

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SOURCE Magnachip Semiconductor Corporation

– Fourth quarter revenue of $110.3 million was down 13.1% sequentially and down 22.8% year-over-year (YoY) due mainly to severe supply shortages especially for 28nm 12″ OLED wafers; Full-year revenue of $474.2 million decreased 6.5% YoY due primarily to a revenue decrease in our OLED business due to wafer supply shortages, offset in part by strong growth in our Power business.
– GAAP gross profit margin for the fourth quarter was 35.0%, down 170 bps sequentially and up 810 bps YoY; Full-year GAAP gross profit margin of 32.4% was an increase of 710 bps YoY due mainly to improved product mix, increased average selling price, and a higher utilization rate.
– GAAP diluted earnings per share (EPS) for the fourth quarter was $1.12; Full-year GAAP diluted EPS was $1.21.
– Non-GAAP diluted EPS for the fourth quarter was $0.31; Full-year non-GAAP diluted EPS was $1.09.
 

SEOUL, South Korea, Feb. 16, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the fourth quarter and full-year 2021.Commenting on the results for the fourth quarter of 2021, YJ Kim, Magnachip’s chief executive officer stated, “For the fourth quarter, the demand and signals from our customers remained strong across the board. However, severe supply constraints continued to significantly limit our OLED revenue potential, which was partially offset by strong Power business. We reported $110.3 million in revenue and 31 cents in non-GAAP diluted EPS for the fourth quarter.”

Commenting on the full-year, YJ stated, “While our 2021 revenue was negatively impacted by continuing supply shortages, especially for 28nm 12″ OLED wafers, we delivered higher profitability in all of our key measures in 2021 compared to 2020. In addition, our team at Magnachip achieved critical milestones to fuel future growth; we broadened our customer base, further penetrated new applications, and enhanced our supply chain for additional manufacturing capacity, which is expected to come online in the later part of 2022. While our near-term outlook is still being challenged by persisting supply constraints, these developments reinforce our confidence and optimism about our long-term growth.”

Q4 and 2021 Financial Highlights

In thousands of U.S dollars, except share data
GAAP
Q4 2021 Q3 2021 Q/Q change Q4 2020 Y/Y change
Revenues
Standard Products Business
Display Solutions 41,298 58,528 down 29.4 % 82,705 down 50.1 %
Power Solutions 58,212 58,887 down 1.1 % 46,861 up 24.2 %
Transitional Fab 3 foundry services(1) 10,825 9,585 up 12.9 % 13,379 down 19.1 %
Gross Profit Margin 35.0 % 36.7 % down 1.7 %pts 26.9 % up 8.1 %pts
Operating Income 63,870 20,001 up 219.3 % 9,206 up 593.8 %
Net Income 53,611 10,768 up 397.9 % 66,581 down 19.5 %
Basic Earnings per Common Share 1.16 0.23 up 404.3 % 1.87 down 38.0 %
Diluted Earnings per Common Share 1.12 0.23 up 387.0 % 1.45 down 22.8 %

 

In thousands of U.S dollars, except share data
Non-GAAP(4)
Q4 2021 Q3 2021 Q/Q change Q4 2020 Y/Y change
Adjusted Operating Income 14,421 22,691 down 36.4 % 15,355 down 6.1 %
Adjusted EBITDA 18,144 26,361 down 31.2 % 18,582 down 2.4 %
Adjusted Net Income 14,606 20,073 down 27.2 % 17,268 down 15.4 %
Adjusted Earnings per Common Share—Diluted 0.31 0.42 down 26.2 % 0.40 down 22.5 %

 

In thousands of U.S dollars, except share data
GAAP
2021 2020 Y/Y Change
Revenues
Standard Products Business
Display Solutions 205,322 299,057 down 31.3 %
Power Solutions 227,777 166,462 up 36.8 %
Transitional Fab 3 foundry services(1) 41,131 41,540 down 1.0 %
Gross Profit Margin 32.4 % 25.3 % up 7.1 %pts
Operating Income(2) 83,407 27,016 up 208.7 %
Net Income(3) 56,708 344,965 down 83.6 %
Basic Earnings per Common Share 1.26 9.80 down 87.1 %
Diluted Earnings per Common Share 1.21 7.54 down 84.0 %

 

In thousands of U.S dollars, except share data
Non-GAAP(4)
2021 2020 Y/Y Change
Adjusted Operating Income 56,135 41,584 up 35.0 %
Adjusted EBITDA 70,701 52,919 up 33.6 %
Adjusted Net Income 51,059 28,260 up 80.7 %
Adjusted Earnings per Common Share—Diluted 1.09 0.73 up 49.3 %

(1)Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, and for a period of up to three years, we will provide transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi (“Transitional Fab 3 Foundry Services”). 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 display solutions and power solutions businesses.

(2)For the year ended December 31, 2021, operating income of $83.4 million included net gain of $35.5 million that represented $70.2 million income from the recognition of a reverse termination fee, net of professional service fees and expenses of $34.7 million incurred in connection with the contemplated merger transaction.

(3)For the year ended December 31,2020, net income of $345.0 million included income from discontinued operations, net of tax, of $287.9 million, primarily attributable to the recognition of $287.1 million as gain on sale of the Foundry Services Group business and Fab 4. It also included income tax benefits of $46.2 million, mainly attributable to the recognition of differences between GAAP and cash tax expense of $43.9 million.

(4)Non-GAAP financial measures are calculated based on the results from continuing operations. 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 income from continuing operations or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q1 2022 Financial Guidance
Our near-term outlook is still being challenged by persisting supply constraints especially for 28nm 12″ wafers.  While actual results may vary, looking into the next quarter, which typically presents seasonal softness, Magnachip anticipates Q1 2022 to be the bottom and currently expects:

  • Revenue to be in the range of $102 million to $108 million, including about $9 million of the Transitional Fab 3 Foundry Services.
  • Gross profit margin to be in the range of 34.5% to 36.5%

Q4 2021 Earnings Conference Call
Magnachip will host a conference call at 5 p.m. Eastern Time on February 16, 2022. The conference call will be webcast live and also is available by dialing toll-free at 1-844-536-5472. International call-in participants can dial 1-614-999-9318. The conference ID number is 1582546. Participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. Eastern Time start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com. A replay of the conference call will be available the same day and will run for 72 hours. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056. The access code is 1582546.

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 first quarter 2022 revenue and gross profit margin expectations, and the impact of the COVID-19 pandemic or the emergence of various variants of the virus, escalated trade tensions and supply constraints on Magnachip’s first quarter 2022 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 and/or general economic conditions, including those caused by or related to the COVID-19 pandemic or the emergence of various variants of the virus, other outbreaks of disease, recessions, economic instability or civil unrest; manufacturing capacity constraints or supply chain disruptions; 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 or supply constraints; 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, our customers and our distributors; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic or the emergence of various variants of the virus; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic or the emergence of various variants of the virus that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 9, 2021 (amended on April 30, 2021), our Form 10-Qs filed on May 10, 2021, August 6, 2021 and November 5, 2021 (including that the impact of the COVID-19 pandemic, trade tensions and supply constraints may also exacerbate the risks discussed therein) 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 communications, 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 1,150 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACT:
In the United States:

So-Yeon Jeong

Jeong Consulting

Tel. +1-408-712-6151

Investor.relations@magnachip.com

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

 

Three Months Ended Year Ended
  December 31,       September 30,      December 31,      December 31,      December 31,
2021 2021 2020 2021 2020
Revenues:
Net sales – standard products business $ 99,510 $ 117,415 $ 129,566 $ 433,099 $ 465,519
Net sales – transitional Fab 3 foundry services 10,825 9,585 13,379 41,131 41,540
Total revenues 110,335 127,000 142,945 474,230 507,059
Cost of sales:
Cost of sales – standard products business 62,206 71,641 92,503 283,503 338,420
Cost of sales – transitional Fab 3 foundry services 9,525 8,772 11,981 37,184 40,322
Total cost of sales 71,731 80,413 104,484 320,687 378,742
Gross profit 38,604 46,587 38,461 153,543 128,317
Gross profit as a percentage of standard products business net sales 37.5 % 39.0 % 28.6 % 34.5 % 27.3 %
Gross profit as a percentage of total revenues 35.0 % 36.7 % 26.9 % 32.4 % 25.3 %
Operating expenses:
Selling, general and administrative expenses 13,255 12,550 12,576 52,440 49,974
Research and development expenses 12,197 12,270 11,604 51,212 45,698
Merger-related costs (income), net (49,369) 1,552 653 (35,527) 653
Early termination and other charges, net (1,349) 214 4,422 2,011 4,976
Total operating expenses (income) (25,266) 26,586 29,255 70,136 101,301
Operating income: 63,870 20,001 9,206 83,407 27,016
Interest expense (132) (113) (1,625) (1,371) (18,147)
Foreign currency gain (loss), net 147 (7,579) 13,256 (11,853) (382)
Loss on early extinguishment of borrowings, net (766) (766)
Other income, net 947 1,608 767 3,786 3,110
Income from continuing operations before income tax expense 64,832 13,917 20,838 73,969 10,831
Income tax expense (benefit) 11,221 3,149 (47,064) 17,261 (46,228)
Income from continuing operations 53,611 10,768 67,902 56,708 57,059
Income (loss) from discontinued operations, net of tax (1,321) 287,906
Net income $ 53,611 $ 10,768 $ 66,581 $ 56,708 $ 344,965
Basic earnings (loss) per common share—
Continuing operations $ 1.16 $ 0.23 $ 1.91 $ 1.26 $ 1.62
Discontinued operations (0.04) 8.18
Total $ 1.16 $ 0.23 $ 1.87 $ 1.26 $ 9.80
Diluted earnings (loss) per common share—
Continuing operations $ 1.12 $ 0.23 $ 1.47 $ 1.21 $ 1.35
Discontinued operations (0.02) 6.19
Total $ 1.12 $ 0.23 $ 1.45 $ 1.21 $ 7.54
Weighted average number of shares—
Basic 46,369,520 46,449,234 35,582,966 44,879,412 35,213,525
Diluted 47,691,816 47,808,457 47,062,903 47,709,373 46,503,586

 

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

 

December 31,
2021 2020
Assets
Current assets
Cash and cash equivalents $  279,547 $  279,940
Accounts receivable, net 50,954 64,390
Inventories, net 39,370 39,039
Other receivables 25,895 4,338
Prepaid expenses 7,675 7,332
Hedge collateral 3,060 5,250
Other current assets 2,619 9,321
Total current assets 409,120 409,610
Property, plant and equipment, net 107,882 96,383
Operating lease right-of-use assets 4,275 4,632
Intangible assets, net 2,377 2,727
Long-term prepaid expenses 8,243 4,058
Deferred income taxes 41,095 44,541
Other non-current assets 10,662 9,739
Total assets $  583,654 $  571,690
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $     37,593 $     52,164
Other accounts payable 6,289 2,531
Accrued expenses 20,071 16,241
Accrued income taxes 11,823 12,398
Operating lease liabilities 2,323 2,210
Current portion of long-term borrowings, net 83,479
Other current liabilities 7,382 4,595
Total current liabilities 85,481 173,618
Accrued severance benefits, net 33,064 40,462
Non-current operating lease liabilities 1,952 2,422
Other non-current liabilities 10,395 9,588
Total liabilities 130,892 226,090
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 55,905,320 shares issued and 45,659,304 outstanding at December 31, 2021 and 44,943,854 shares issued and 35,783,347 outstanding at December 31, 2020 559 450
Additional paid-in capital 241,197 163,010
Retained earnings 343,542 286,834
Treasury stock, 10,246,016 shares at December 31, 2021 and 9,160,507 shares at December 31, 2020, respectively (130,306) (108,397)
Accumulated other comprehensive income (loss) (2,230) 3,703
Total stockholders’ equity 452,762 345,600
Total liabilities and stockholders’ equity $   583,654 $   571,690

 

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

 

 Three Months Ended Year Ended
December 31, December 31, December 31,
2021 2021 2020
Cash flows from operating activities
Net income $ 53,611 $ 56,708 $ 344,965
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 3,663 14,239 16,481
Provision for severance benefits 2,768 8,282 16,743
Amortization of debt issuance costs and original issue discount 261 2,220
Loss (gain) on foreign currency, net (175) 32,432 (23,233)
Restructuring and other charges 3,502
Merger-related costs (income), net (12,142) (12,142) 360
Provision for inventory reserves 760 2,244 3,695
Stock-based compensation 1,648 7,704 6,699
Loss on early extinguishment of borrowings, net 766
Gain on sale of discontinued operations (287,117)
Deferred income tax assets 893 918 (44,441)
Other, net (1,030) (613) 217
Changes in operating assets and liabilities
Accounts receivable, net 809 7,505 (19,268)
Unbilled accounts receivable, net 14,260
Inventories (1,378) (5,939) (816)
Other receivables 2,949 (2,338) 6,954
Other current assets 4,464 12,397 13,561
Accounts payable 4,755 (11,437) 3,960
Other accounts payable (4,084) (7,813) (12,000)
Accrued expenses (765) (2,406) (29,116)
Accrued income taxes 8,307 (1) 10,825
Deferred revenue 863 (131) 2,174
Other current liabilities (104) 1,445 279
Other non-current liabilities (732) (1,398) 3,521
Contributions to severance insurance deposit accounts (5,526) (5,688) (11,921)
Payment of severance benefits (1,907) (6,679) (12,076)
Other, net 80 193 (3,724)
Net cash provided by operating activities 57,727 87,743 7,470
Cash flows from investing activities
Proceeds from settlement of hedge collateral 1,219 5,214 13,762
Payment of hedge collateral (605) (3,349) (8,839)
Proceeds from disposal of property, plant and equipment 1,419 1,446 65
Purchase of property, plant and equipment (18,844) (32,212) (36,100)
Payment for intellectual property registration (159) (614) (741)
Collection of guarantee deposits 3,192 1,024
Payment of guarantee deposits (41) (5,001) (1,236)
Proceeds from sale of discontinued operations 350,553
Other, net 16 (114) (6)
Net cash provided by (used in) investing activities (16,995) (31,438) 318,482
Cash flows from financing activities
Repurchase of long-term borrowings (224,250)
Proceeds from exercise of stock options 359 4,279 3,918
Acquisition of treasury stock (1,653) (1,125)
Acquisition of stock under accelerated stock repurchase agreement (20,073) (20,073)
Payment under accelerated stock repurchase agreement (17,427) (17,427)
Repayment of financing related to water treatment facility arrangement (136) (563) (546)
Others (58) (107) (278)
Net cash used in financing activities (37,335) (35,544) (222,281)
Effect of exchange rates on cash and cash equivalents (151) (21,154) 24,612
Net increase (decrease) in cash and cash equivalents 3,246 (393) 128,283
Cash and cash equivalents at beginning of period 276,301 279,940 151,657
Cash and cash equivalents at end of period $ 279,547 $ 279,547 $ 279,940

 

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

 

Three Months Ended Year Ended
December 31, September 30, December 31, December 31, December 31,
2021 2021 2020 2021 2020
Operating income $ 63,870 $ 20,001 $ 9,206 $ 83,407 $ 27,016
Adjustments:
Equity-based compensation expense 1,648 2,005 1,945 7,704 6,311
Inventory reserve related to Huawei impact of downstream trade restrictions (379) (1,081) (871) (1,460) 1,460
Expenses related to Fab 3 power outage 1,168
Merger-related costs (income), net (49,369) 1,552 653 (35,527) 653
Early termination and other charges, net (1,349) 214 4,422 2,011 4,976
Adjusted operating income $ 14,421 $ 22,691 $ 15,355 $ 56,135 $ 41,584

We present Adjusted Operating Income as a supplemental measure of our performance. We define Adjusted Operating Income for the periods indicated as operating income adjusted to exclude (i) Equity-based compensation expense, (ii) Inventory reserve related to Huawei impact of downstream trade restrictions, (iii) Expenses related to Fab 3 power outage, (iv) Merger-related costs (income), net and (v) Early termination and other charges, net.

For the year ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $35,527 thousand that represented income of $70,200 thousand from the recognition of a reverse termination fee, net of professional service fees and expenses of $34,673 thousand incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021. For the same period, we also recorded $3,430 thousand of non-recurring professional service fees and expenses incurred in connection with the regulatory requests, partially offset by $1,419 thousand gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018).

For the year ended December 31, 2020, we recorded in our consolidated statement of operations $4,422 thousand of early termination and other charges, net, in connection with the headcount reduction program offered and paid to the employees during the fourth quarter of 2020. During the same period, we also recorded $554 thousand of non-recurring professional service fees and expenses incurred in connection with certain treasury and finance initiatives.

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

 

Three Months Ended Year Ended
December 31, September 30, December 31, December 31, December 31,
2021 2021 2020 2021 2020
Income from continuing operations $ 53,611 $ 10,768 $ 67,902 $ 56,708 $ 57,059
Adjustments:
Interest expense, net (726) (439) 863 (1,238) 15,404
Income tax expense (benefit) 11,221 3,149 (47,064) 17,261 (46,228)
Depreciation and amortization 3,663 3,578 3,148 14,239 11,116
EBITDA 67,769 17,056 24,849 86,970 37,351
Equity-based compensation expense 1,648 2,005 1,945 7,704 6,311
Foreign currency loss (gain), net (147) 7,579 (13,256) 11,853 382
Derivative valuation loss (gain), net (29) (237) 74 (123) (148)
Loss on early extinguishment of borrowings, net 766 766
Inventory reserve related to Huawei impact of downstream trade restrictions (379) (1,081) (871) (1,460) 1,460
Expenses related to Fab 3 power outage 1,168
Merger-related costs (income), net (49,369) 1,552 653 (35,527) 653
Early termination and other charges, net (1,349) (513) 4,422 1,284 4,976
Adjusted EBITDA 18,144 26,361 18,582 70,701 52,919
Income from continuing operations $ 53,611 $ 10,768 $ 67,902 $ 56,708 $ 57,059
Adjustments:
Equity-based compensation expense 1,648 2,005 1,945 7,704 6,311
Foreign currency loss (gain), net (147) 7,579 (13,256) 11,853 382
Derivative valuation loss (gain), net (29) (237) 74 (123) (148)
Loss on early extinguishment of borrowings, net 766 766
Inventory reserve related to Huawei impact of downstream trade restrictions (379) (1,081) (871) (1,460) 1,460
Expenses related to Fab 3 power outage 1,168
Merger-related costs (income), net (49,369) 1,552 653 (35,527) 653
Early termination and other charges, net (1,349) (513) 4,422 1,284 4,976
GAAP and cash tax expense difference 907 (43,874) 907 (43,874)
Income tax effect on non-GAAP adjustments 9,713 (493) 9,713 (493)
Adjusted Net Income $ 14,606 $ 20,073 $ 17,268 $ 51,059 $ 28,260
Adjusted Net Income per common share—
– Basic $ 0.31 $ 0.43 $ 0.49 $ 1.14 $ 0.80
– Diluted $ 0.31 $ 0.42 $ 0.40 $ 1.09 $ 0.73
Weighted average number of shares – basic 46,369,520 46,449,234 35,582,966 44,879,412 35,213,525
Weighted average number of shares – diluted 47,691,816 47,808,457 47,062,903 47,709,373 46,503,586

 

We present Adjusted EBITDA and Adjusted Net Income as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Loss on early extinguishment of borrowings, net, (v) Inventory reserve related to Huawei impact of downstream trade restrictions, (vi) Expenses related to Fab 3 power outage, (vii) Merger-related costs (income), net and (viii) Early termination and other charges, net.

EBITDA for the periods indicated is defined as Income from continuing operations before interest expense, net, income tax expense (benefit) and depreciation and amortization. We prepare Adjusted Net Income by adjusting income from continuing operations to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income for the periods as income from continuing operations, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Loss on early extinguishment of borrowings, net, (v) Inventory reserve related to Huawei impact of downstream trade restrictions, (vi) Expenses related to Fab 3 power outage, (vii) Merger-related costs (income), net, (viii) Early termination and other charges, net, (ix) GAAP and cash tax expense difference and (x) Income tax effect on non-GAAP adjustments.

For the year ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $35,527 thousand that represented income of $70,200 thousand from the recognition of a reverse termination fee, net of professional service fees and expenses of $34,673 thousand incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021. For the same period, we also recorded $3,430 thousand of non-recurring professional service fees and expenses incurred in connection with the regulatory requests, partially offset by $1,419 thousand gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018 and $727 thousand legal settlement gain related to certain expenses incurred in prior periods in connection with our legacy Fab 4 (which was sold during the year ended December 31, 2020) and awarded in the third quarter of 2021.

For the year ended December 31, 2020, we recorded in our consolidated statement of operations $4,422 thousand of early termination and other charges, net in connection with the headcount reduction program offered and paid to the employees during the fourth quarter of 2020. During the same period, we also recorded $554 thousand of non-recurring professional service fees and expenses incurred in connection with certain treasury and finance initiatives.

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SOURCE Magnachip Semiconductor Corporation

 

– Magnachip initiates $37.5 Million Accelerated Stock Repurchase Agreement

SEOUL, South Korea, Dec. 21, 2021 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip Corp.” or the “Company”) (NYSE: MX), announced today that the Board of Directors has authorized the Company to repurchase up to $75 million of the Company’s common stock. As an immediate step towards implementing the approved stock repurchase program, the Company has entered into an accelerated stock repurchase agreement (the “ASR Agreement”) with JPMorgan Chase Bank, National Association (“JPM”) to repurchase an aggregate of $37.5 million of Magnachip’s common stock.

Pursuant to the terms of the ASR Agreement dated December 21, 2021, the Company will pay JPM $37.5 million in cash and will receive an initial delivery of approximately 1.0 million shares of the Company’s common stock. The final number of shares of common stock to ultimately be repurchased by the Company will generally be based on the average of the daily volume-weighted average stock prices of the Company’s common stock during the valuation period of the ASR Agreement, less a discount and subject to adjustments. Upon final settlement of the ASR Agreement, the Company may be entitled to receive additional shares of common stock from JPM or, under certain circumstances specified in the ASR Agreement, the Company may be required to deliver shares of common stock or make a cash payment, at its option, to JPM. The ASR Agreement contains provisions customary for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances under which the ASR Agreement may be accelerated, extended or terminated early by JPM and various acknowledgments, representations and warranties made by the parties to one another. Final settlement of the ASR Agreement is expected to occur during the fiscal quarter ending March 31, 2022.

“Today’s announcement reflects the confidence of the management team and our Board of Directors in Magnachip’s financial strength, long-term growth strategy and ability to generate sustainable cash flow,” said YJ Kim, Magnachip’s chief executive officer. “It is also consistent with our commitment to enhance and return value to our shareholders. Our business has sound long-term fundamentals and we are poised to accelerate our MX 3.0 strategy, which we look forward to articulating in more detail at our investor call on January 6, 2022.”

Investor Conference Call
Magnachip will host an investor conference call at 5:00 pm Eastern time on January 6, 2022. The investor call will be webcast live and also is available by dialing toll-free at 1-844-536-5472 in US/Canada. International call-in participants can dial 1-614-999-9318. The conference ID number is 9163925. Participants are encouraged to initiate their calls at least 10 minutes in advance of the start time to ensure a timely connection. A live and archived webcast of the call will be accessible from the ‘Investors’ section of the company’s website at www.magnachip.com. A replay of the conference call will be available until 8:00 pm ET on January 13, 2022. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056. The conference ID number is 9163925.

About Magnachip Semiconductor Corporation
Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,200 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created thereby. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “will be,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe(s),” “intend,” “predict,” “potential,” “future,” “strategy,” “opportunity” and similar words or phrases or the negatives of these words or phrases. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including, but not limited to: the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to the COVID-19 outbreak, recessions, economic instability and the outbreak of disease; 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, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; 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 or supply constraints; 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; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks and uncertainties and the factors identified under “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and updated in subsequent reports filed by the Company with the SEC. These reports are available at www.magnachip.com or www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.

CONTACTS:
In the United States:

So-Yeon Jeong
Jeong Consulting
Tel. +1-408-712-6151
investor.relations@magnachip.com

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SOURCE Magnachip Semiconductor Corporation

국내 연구개발 강화 및 생산 역량 확대에 5천억 투자 포함 약 2조원의 경제유발효과 예상

  • 2021년부터 2025년까지 한국 R&D 센터 기술 개발 및 연구 인력 확충 등에 약 3,400억원
  • 수요 높은 전력 반도체 생산 기지인 구미 생산시설에 지난해 380억 투자를 포함하여 총 1,310억 투자

 

대한민국 서울, 2021년 5월 20일 — 매그나칩반도체(이하, 매그나칩, 뉴욕증시 상장코드 NYSE: MX)는 글로벌 시장에서 입지를 강화하기 위해서 오는 2025년까지 향후 5년 간 서울, 청주 등 한국 R&D센터와 구미 생산시설에 과감한 선제적 투자를 단행할 계획이라고 밝혔다.

R&D 센터와 생산시설이 위치한 한국에 약 2조원을 투자하는 ‘미래 성장 5개년 투자 계획’을 통해 기술 개발 역량을 한층 더 강화하고, 구미 공장의 전력 반도체 제품 생산 능력을 향상시킬 예정이다. 이를 통해 중장기적으로 높은 성장 잠재력을 가지고 있는 아시아의 신흥국 시장과 유럽 및 북미 등의 선진국 시장까지 확대해 나갈 예정이다. 또한, 이번 투자는 지역 경제 활성화에 기여할 것으로 기대된다.

매그나칩은 서울, 청주 등 한국의 R&D 센터에 약 3천4백억원을 투입해 기술 및 제품 리더십을 강화시켜 나갈 계획이다.  또한, 지역 대학들과 연계해 연구 인력 확충에도 매진할 예정이다. 매그나칩은 충북대학교와 함께 지역 인재 발굴, 양성 및 채용에 협력하기도 했다. 향후에도 매년 1억원 수준의 장학금 지원을 통해 우수 인재 발굴과 육성을 지속할 계획이다.

또한, 최근 전세계적으로 높은 관심을 받고 있는 전력 반도체 제품을 생산하는 구미 생산시설에 지난해 380억원을 투자해 시설을 확충한 데 이어, 향후 5년 간 약 930억원을 추가로 투자할 계획이다. 2015년에 전기자동차에 들어가는 전력 반도체에 투자를 시작해, 개발을 완료하고 1만 시간 테스트를 진행해 왔던 매그나칩은 7년간의 노력으로 전기자동차용 전력 반도체의 상용화를 눈 앞에 두고 있다. 이 외에도 구미 공장은 스마트폰 전력 효율을 높이는 배터리 FET(Field Effect Transistor)를 비롯해 소비자 가전, 통신, 산업용 제품에 사용되는 Super-junction MOSFET, IGBT 등의 프리미엄 제품도 생산하고 있다. 전력 반도체 분야에서 긍정적 시장 수요가 지속될 경우 향후 5년 간 투자 금액을 1,100억원 이상으로 확대하는 방안도 검토 중이다.

이번 투자 결정에는 R&D센터와 구미 생산시설에 대한 투자 외에도 국내 임직원들에 대한 급여와 복리후생 등 일상적 경영 활동을 위한 투자도 포함되어 있다.

뉴욕증시에 상장되어 있는 매그나칩 주식을 주당 29 달러에 유한책임출자자(LP)들과 함께 매입하기로 한 글로벌 사모펀드인 와이즈로드캐피털은 지금까지 싱가포르, 네덜란드, 스위스 등에 본사와 생산시설을 둔 ICT 기업들에 장기적인 관점으로 투자해 왔다. 투자 이후에 각 지역의 생산시설을 확충하고, R&D에 대한 투자를 늘릴 수 있도록 지원했다. 특히, 본사, 생산시설, R&D센터 등을 현지에서 기존대로 운영하도록 하고, 경영진과 직원의 고용을 보장하면서 경영에 간섭하지 않는 것을 원칙으로 하는 순수 재무적 투자자(a pure financial investor)로 역할 하면서 글로벌 기업으로 성장할 수 있도록 지원했다. *

와이즈로드캐피털의 매니징 파트너 마이클 장(Michael Zhang)은 “글로벌 사모펀드로서 와이즈로드캐피털은 글로벌 성장 가능성이 있고, 시장 중심적이고, 고객 중심적인 독립된 기업에 투자하고 있다. 글로벌 차원의 투자를 통해 각 지역의 업체들이 해당 지역에서 더 성장할 수 있도록 돕는 것이 우리의 성공 비결이다“라며 “이번에 발표한 미래 성장 목표와 투자 계획을 통해 매그나칩이 한국 내에서 생산능력과 R&D 역량을 강화할 수 있도록 지원할 수 있는 모든 것을 지원할 것이다. 이를 위해 와이즈로드캐피털은 매그나칩의 현재 경영진을 유지하고 임직원과 생산시설 그리고 지적재산권(IP) 등을 모두 한국에 그대로 유지할 것을 보장한다. 이번 미국 매그나칩 본사와의 주식 거래는 미국증권거래위원회에 제출한 공시자료(Proxy Statement)에서 언급했던 대로, 중국 외 지역(offshore)**에서 모으는 글로벌 펀드로 진행된다”라고 말했다.

매그나칩 임상택 노조 위원장은 “이번 발표가 노동조합이 지속적으로 요구하고 중시하는 임직원의 고용안정과 처우개선, 생산시설유지 및 투자확대, 구미지역 경제활성화에도 긍정적 요인이 될것으로 생각하며, 회사가 추진하는 성장전략과 글로벌 시장으로의 도약을 위해서 직원들에게 좋은 방향으로 협의해 나가겠다”라고 말했다.

매그나칩 김영준 대표는 “이번 미래 성장 5개년 투자 계획은 ‘매그나칩 3.0 성장 전략’ 및 노동조합과 임직원들의 니즈를 반영하여, 회사가 기존 고객에게 차별화된 경쟁력을 제공하고, 임직원들에게 보다 향상된 근무 환경과 기업문화를 제공할 것”이라며 “매그나칩은 업계를 선도하는 제품을 보다 많은 고객에게 선보일 수 있도록 적시에 투자하고, 급변하는 미래에 글로벌 기업으로 성장하는 새로운 도약의 기회로 삼겠다”라고 강조했다.

한편, OLED 패널 구동을 위한 디스플레이 구동칩 (DDIC)은 일반적인 기능을 담당하는 블록과 패널 특성의 핵심이 되는 고객 IP 블록으로 구성되며, 이러한 고객 IP 블록은 모두 패널 업체가 보유하고 있고, DDIC 업체에는 암호화된 블랙박스 형태로 제공되어 DDIC 업체에서는 원천적으로 정보 접근을 할 수가 없도록 해 보안을 유지하고 있다.

 

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About Magnachip Semiconductor Corporation

2004년 10월에 하이닉스반도체의 시스템 반도체 사업부가 분리되어 약 8억 2800만 달러에 미국 씨티그룹벤처캐피탈(CVC) 에퀴티 파트너스와 CVC 아시아퍼시픽, 프란시스코 파트너스 등이 인수하여 미국 델라웨어주에 매그나칩반도체(Magnachip Semiconductor)를 설립했다. 한국(서울, 청주, 구미)에 있었던 연구시설, 생산시설 등은 그대로 유지했다.  매그나칩은 통신, IoT, 소비재, 산업 및 자동차 애플리케이션을 위한 아날로그 및 혼합 신호 반도체 플랫폼 솔루션을 설계하고 제조하는 기업으로, 전세계 고객에게 광범위한 표준 제품을 제공한다. 매그나칩은 40년 이상의 업계 전문성을 바탕으로 약 1,200개의 등록 특허와 등록 예정인 포트폴리오를 소유하고 있으며, 광범위한 엔지니어링, 설계 및 제조 프로세스 전문지식을 확보하고 있는 기업이다. 자세한 내용은 www.magnachip.com 참조.

 

About Wise Road Capital

와이즈로드캐피털(Wise Road Capital)은 선진 기술 기업에 투자하는 글로벌 사모펀드이다. 해당 펀드는 스마트시티, 지능형제조, 신재생에너지 등 여러 주요 테마에 걸쳐 기업들과 긴밀한 협력을 통해 글로벌 도시화 및 스마트·그린라이프를 위한 기술을 발굴하는 데 초점을 맞추고 있다. 와이즈로드캐피털 투자와 산업 경험을 갖춘 국제경영팀을 통해 이러한 핵심 테마를 중심으로 건강한 국제 생태계를 구축하기 위해 노력하고 있다.

참고자료 (*) – 와이즈로드캐피탈은 순수 재무적 투자자로서 4가지 원칙으로 운영한다. 1) 장기적인 관점의 비즈니스 운영과 성장을 보장 (Committed to long term business operations and growth) 2) 본사, 공장, R&D센터, IP 등을 옮기거나 폐쇄하지 않는다. (No headquarters, factories, R&D centers, or IP change or shutdown), 3) 기업의 법적 구조를 바꾸지 않는다. (No change for legal structure of portfolio companies), 4) 직원의 해고나 경영진 교체를 하지 않는다. (No employee layoffs and management replacement)

참고자료(**) – 매그나칩이 미국 증권거래 위원회(SECURITIES AND EXCHANGE COMMISSION)에 제출한 223페이지에 달하는 PROXY STATEMENT에서 [PROPOSAL 1: ADOPTION OF THE MERGER AGREEMENT AND APPROVAL OF THE MERGER]에서 이번 주식 거래를 승락하는 이유를 여러 가지로 설명한다. 이 중 58페이지에서 아래와 같이 설명하고 있다. “coming from offshore funds outside of the PRC and that, accordingly, it is not expected that any regulatory approvals will be needed with respect to the funding of the aggregate Merger Consideration.” è ‘기업 인수를 위한 자금이 중국 본토 외의 지역(오프쇼어, offshore)에서 오기 때문에 중국 외환당국 승인 절차가 없을 것으로 예상된다.’ 라고 표현하고 있다.

 

추가적인 정보는 아래에서 확인할 수 있습니다.

본 통지는 Magnachip Semiconductor Corporation (“회사”) 및 Wise Road 관련된 제안된 거래 관련된 것입니다. 제안된 거래 관련하여, 회사는 미국 증권거래위원회 (Securities and Exchange Commission, “SEC”)에 별지 14A(Schedule 14A) 위임장 권유신고서를 포함한 관련 자료를 제출할 예정입니다. SEC에 확정 위임장 권유신고서를 제출한 직후 회사는 제안된 거래 관련한 임시주주총회에서 의결권이 있는 각 주주에 대하여 확정 위임장 권유신고서 및 투표장(proxy card)을 우편 송부 및 기타 방법으로 제공할 예정입니다. 본 통지는 위임장 권유신고서 또는 회사가 SEC에 제출 또는 제안된 거래 관련하여 주주들에 대하여 송부할 여하의 서면에 대한 대체물이 아닙니다. 의결권 행사 결정 전, 제안된 거래 및 제안된 거래의 당사자에 관하여 중요한 정보를 포함하고 있으므로 주주들은 (수정 사항 또는 보충 사항을 포함하여) 이들 자료 및 제안된 거래 관련하여 회사가 SEC에 제출할 문서들이 제공되는 경우, 해당 자료를 읽어 주실 것을 촉구하는 바입니다. 제안된 거래 관련된 확정 위임장 권유신고서 및 기타 관련 자료(제공되는 경우) 및 그외 회사가 SEC에 제출하는 여하의 문서는 SEC 웹사이트(www.sec.gov) 또는 회사 웹사이트(www.magnachip.com)에서 무료로 입수하실 수 있습니다.

 

권유 참여자

본 통지는 위임장 권유, 매수 청약 또는 여하의 주식의 매도 청약에 대한 권유가 아닙니다. 회사와 그 이사, 임원 및 특정 직원들은 제안된 거래 관련하여 주주들에 대한 위임장 권유 참여자로 간주될 수 있습니다. 그러한 사람들의 이름, 제안된 거래에 대한 이해관계(주식 보유 또는 기타)는 SEC에 위임장 권유신고서를 제출할 시 기재될 것입니다. 이들 개인에 대한 추가적인 정보는 2020. 12. 31. 종료된 사업연도에 대한 2021. 3. 9. SEC에 제출된 Form 10-K 연간보고서, 2020년 6월에 개최된 가장 최근의 정기주주총회를 위한 것으로서 2020. 4. 29. SEC에 제출된 Schedule 14A 위임장 권유신고서에 기재되어 있습니다. 회사의 이사 및 임원 또는 이들의 회사 주식 보유 현황이 위 제출 서류에 공개된 바로부터 변동사항이 있는 경우, 회사가 알고 있는 한 그러한 변동사항은 SEC에 제출할 Form 3 최초 실질귀속 신고서 또는 Form 4 소유변동신고서에 기재될 것입니다. 이들 서류는 SEC 웹사이트(www.sec.gov) 또는 회사 웹사이트(www.magnachip.com)에서 무료로 입수하실 수 있습니다.

 

장래예측정보

본 통지는 1995년 사적증권소송개혁법(Private Securities Litigation Reform Act of 1995)에 정의된 장래예측정보를 포함하고 있으며, 해당 법령에 따른 면책규정의 적용을 받습니다.

과거 또는 현재 사실이 아닌 명제는, 믿음 또는 예상에 관련한 명제와 회사와 와이즈로드 간 제안된 거래 관련한 명제 및 확신의 표현을 포함하여 장래예측정보입니다. 이들 장래예측정보는 종종 “그러할 수 있음”,
“그러할 것임”, “그리될 것임”, “예상함”, “예측함”, “계획함”, ”투시함”, “계속되는”, “지속되는”, “기대함”, “믿음”, “의도함”, “예견함”, “잠재적인”, “미래의”, “전략”, “기회” 또는 그와 유사한 단어 또는 구문, 그와 반대되는 단어 또는 구문을 사용하나, 항상 그러하지는 않습니다.

장래예측정보는 그 자체에 내재된 위험 및 불확실성이 관련되어 있으며, 중요한 요소로 인하여 예상된 결과와 중요한 부분에서 다른 결과가 발생할 수 있으며, 그 중요한 요소는 다음을 포함하나 이에 한정되지 않습니다: 제안된 거래의 종결을 위한 선행조건의 일부 또는 전부의 미충족(주주 및 규제 당국의 승인이 충족되지 아니하거나 포기 되지 않는 경우 포함); 제안된 거래 관련하여 예측되지 않은 어려움 또는 지출; 거래가 제 시간에 완성되지 아니할 수 있음; 합병계약의 해지의 원인이 되는 여하의 사건 또는 사정변경; 거래 관련한 이슈로부터 회사 경영진의 주목 또는 이의 전환; 본건 발표 이후 회사, 회사의 이사회 및 임원을 상대로 제기될 수 있는 소송, 판결, 화해; 본 발표 및 본 거래가 계속중이라는 사실로 인하여 발생할 수 있는 현 계획 및 운영에 대한 방해; 본 발표 및 본 거래가 계속중이라는 사실로 인하여 임직원 유지에 대한 잠재적인 어려움; 본 거래의 발표로 인한 고객, 공급사, 사업 파트너 및 규제 당국의 반응; 그외 회사의 2020. 12. 31. 종료 사업연도에 대한 연간보고서 10-K 양식 중 Item 1A, Part 1의 “위험 요소”(Risk Factors)에 공개되고 회사가 SEC에 보고서를 제출하여 업데이트 한 위험 요소.

이들 보고서는 www.magnachip.com 또는 www.sec.gov에서 입수하실 수 있습니다. 장래예측정보는 그 발표가 이루어진 날을 기준으로만 하여 제공되며, 회사는 신규 정보 또는 장래 사건에 맞추어 이를 업데이트 할 의무를 부담하지 않습니다.

 

보도자료 문의:  앨리슨+파트너스 – 정민아 대표 010-6282-0677 mina.jeong@allisonpr.com

– 매그나칩 주주는 보유 주식 1주당 29달러 현금 지급 예정

– 매그나칩 인수에 관심이 있는 업체가 있다는 언론 보도가 나오기 전 마지막 거래일인 2021년 3월 2일 종가 18.83달러 대비 54% 프리미엄 산정, 매그나칩 최근 3개월 간의 평균 주가 기준 약 75% 프리미엄이 적용

– 경영진과 임직원, 본사와 연구소 및 생산시설 등은 동일하게 운영  

 

대한민국 서울, 2021년 3월 29일 — 매그나칩 반도체 유한회사의 미국(델라웨어) 본사인 Magnachip Semiconductor Corporation(이하, “매그나칩 Corp.”, 뉴욕증시 상장코드 NYSE: MX)는 금일 와이즈 로드 캐피털과 유한책임출자자(LP)들(이하 다수 회사를 “와이즈로드”로 통칭)이 설립한 투자회사인 사우스 디어본 (South Dearborn Limited, 케이만 아일랜드에 설립된 투자회사) 및 미시건 머저 섭(Michigan Merger Sub, Inc., 미국 델라웨어에 설립된 투자회사)과 매그나칩 Corp.의 주식을 매각하기 위한 계약을 체결했다고 밝혔다.

이번 계약에 따라 매그나칩 Corp.의 주주들은 현재 보유하고 있는 주식 1주당 현금 29달러를 받게 된다. 이는 매그나칩 Corp. 최근 3개월 간의 평균 주가를 기준으로 하면 약 75% 프리미엄이 적용된 것이며, 매그나칩 Corp.의 인수에 관심이 있는 업체가 있다는 언론 보도가 나오기 전 마지막 거래일인 2021년 3월 2일 종가 대비 약 54% 프리미엄을 받은 가격이다. 모든 거래는 현금으로 이뤄지며, 거래 규모는 약 14억 달러(약 1조 5천8백9십억원 – 2021년 3월 26일 07시 기준 환율, 1달러=1,135원)가 될 것이다.

매각이 완료된 이후에도 매그나칩의 경영진과 임직원들은 기존과 변함없이 현재의 역할을 그대로 지속할 계획이며, 서울, 청주에 각각 운영하고 있는 사무소와 연구소 및 구미의 생산시설 등도 동일하게 운영할 예정이다. 고객과 임직원 등을 포함한 매그나칩의 사업 또한 이번 매각 거래에 따른 영향없이 그대로 운영될 예정이다.

매그나칩의 김영준 CEO는 “이번 거래는 주주, 고객, 임직원 모두에게 최선의 이익을 가져올 뿐만 아니라 매그나칩의 제3차 성장 전략(MX 3.0 growth strategy)을 가속화하는 훌륭한 기회가 될 것입니다. 업계에서 쌓은 강력한 전문성을 지닌 와이즈로드는 매그나칩에게 이상적인 파트너로 매그나칩이 다음 단계로 성장하는 과정에서 협력할 것을 기대하고 있습니다. 매그나칩을 변함없이 믿어 주시는 고객들에게 늘 감사하며, 전세계 고객들에게 업계를 선도하는 제품을 선보이기 위해 늘 헌신하는 우리 임직원들에게도 깊은 감사를 표합니다”라고 말했다.

와이즈로드는 매그나칩 경영진과 협력하여 회사가 정한 성장 전략의 다음 단계로 나아가고 글로벌 디스플레이와 파워 시장에서 진정한 업계 리더로 거듭날 수 있도록 노력해 나갈 예정이다. 추가적인 투자와 글로벌 네트워크를 통해 와이즈로드는 매그나칩이 세계적으로 성장할 수 있도록 지원할 것이다. 와이즈로드는 매그나칩이 고객들에게 세계적인 수준의 제품과 서비스를 제공할 수 있도록 헌신할 것이며, 회사의 임직원이 성장하고 번영할 수 있는 안정적인 환경을 만들어 갈 것이다.

한편, 본건 거래는 주주 인수 및 당국의 규제 승인 등을 포함하여 관례적인 종결 조건에 따라 2021년 하반기에 마무리될 것으로 예상된다.

 

About Magnachip Semiconductor Corporation

매그나칩은 통신, IoT, 소비재, 산업 및 자동차 애플리케이션을 위한 아날로그 및 혼합 신호 반도체 플랫폼 솔루션을 설계하고 제조하는 기업으로, 전세계 고객에게 광범위한 표준 제품을 제공한다. 매그나칩은 40년 이상의 업계 전문성을 바탕으로 약 1,200개의 등록 특허와 등록 예정인 포트폴리오를 소유하고 있으며, 광범위한 엔지니어링, 설계 및 제조 프로세스 전문지식을 확보하고 있는 기업이다. 자세한 내용은 www.magnachip.com을 참조.

 

About Wise Road Capital

와이즈로드캐피털(Wise Road Capital)은 선진 기술 기업에 투자하는 글로벌 사모펀드이다. 해당 펀드는 스마트시티, 지능형제조, 신재생에너지 등 여러 주요 테마에 걸쳐 기업들과 긴밀한 협력을 통해 글로벌 도시화 및 스마트·그린라이프를 위한 기술을 발굴하는 데 초점을 맞추고 있다. 와이즈로드캐피털 투자와 산업 경험을 갖춘 국제경영팀을 통해 이러한 핵심 테마를 중심으로 건강한 국제 생태계를 구축하기 위해 노력하고 있다.

 

추가적인 정보는 아래에서 확인할 수 있습니다.

본 통지는 Magnachip Semiconductor Corporation (“회사”) 및 Wise Road 관련된 제안된 거래 관련된 것입니다. 제안된 거래 관련하여, 회사는 미국 증권거래위원회 (Securities and Exchange Commission, “SEC”)에 별지 14A(Schedule 14A) 위임장 권유신고서를 포함한 관련 자료를 제출할 예정입니다. SEC에 확정 위임장 권유신고서를 제출한 직후 회사는 제안된 거래 관련한 임시주주총회에서 의결권이 있는 각 주주에 대하여 확정 위임장 권유신고서 및 투표장(proxy card)을 우편 송부 및 기타 방법으로 제공할 예정입니다. 본 통지는 위임장 권유신고서 또는 회사가 SEC에 제출 또는 제안된 거래 관련하여 주주들에 대하여 송부할 여하의 서면에 대한 대체물이 아닙니다. 의결권 행사 결정 전, 제안된 거래 및 제안된 거래의 당사자에 관하여 중요한 정보를 포함하고 있으므로 주주들은 (수정 사항 또는 보충 사항을 포함하여) 이들 자료 및 제안된 거래 관련하여 회사가 SEC에 제출할 문서들이 제공되는 경우, 해당 자료를 읽어 주실 것을 촉구하는 바입니다. 제안된 거래 관련된 확정 위임장 권유신고서 및 기타 관련 자료(제공되는 경우) 및 그외 회사가 SEC에 제출하는 여하의 문서는 SEC 웹사이트(www.sec.gov) 또는 회사 웹사이트(www.magnachip.com)에서 무료로 입수하실 수 있습니다.

 

권유 참여자

본 통지는 위임장 권유, 매수 청약 또는 여하의 주식의 매도 청약에 대한 권유가 아닙니다. 회사와 그 이사, 임원 및 특정 직원들은 제안된 거래 관련하여 주주들에 대한 위임장 권유 참여자로 간주될 수 있습니다. 그러한 사람들의 이름, 제안된 거래에 대한 이해관계(주식 보유 또는 기타)는 SEC에 위임장 권유신고서를 제출할 시 기재될 것입니다. 이들 개인에 대한 추가적인 정보는 2020. 12. 31. 종료된 사업연도에 대한 2021. 3. 9. SEC에 제출된 Form 10-K 연간보고서, 2020년 6월에 개최된 가장 최근의 정기주주총회를 위한 것으로서 2020. 4. 29. SEC에 제출된 Schedule 14A 위임장 권유신고서에 기재되어 있습니다. 회사의 이사 및 임원 또는 이들의 회사 주식 보유 현황이 위 제출 서류에 공개된 바로부터 변동사항이 있는 경우, 회사가 알고 있는 한 그러한 변동사항은 SEC에 제출할 Form 3 최초 실질귀속 신고서 또는 Form 4 소유변동신고서에 기재될 것입니다. 이들 서류는 SEC 웹사이트(www.sec.gov) 또는 회사 웹사이트(www.magnachip.com)에서 무료로 입수하실 수 있습니다.

 

장래예측정보

본 통지는 1995년 사적증권소송개혁법(Private Securities Litigation Reform Act of 1995)에 정의된 장래예측정보를 포함하고 있으며, 해당 법령에 따른 면책규정의 적용을 받습니다.

과거 또는 현재 사실이 아닌 명제는, 믿음 또는 예상에 관련한 명제와 회사와 와이즈로드 간 제안된 거래 관련한 명제 및 확신의 표현을 포함하여 장래예측정보입니다. 이들 장래예측정보는 종종 “그러할 수 있음”,
“그러할 것임”, “그리될 것임”, “예상함”, “예측함”, “계획함”, ”투시함”, “계속되는”, “지속되는”, “기대함”, “믿음”, “의도함”, “예견함”, “잠재적인”, “미래의”, “전략”, “기회” 또는 그와 유사한 단어 또는 구문, 그와 반대되는 단어 또는 구문을 사용하나, 항상 그러하지는 않습니다.

장래예측정보는 그 자체에 내재된 위험 및 불확실성이 관련되어 있으며, 중요한 요소로 인하여 예상된 결과와 중요한 부분에서 다른 결과가 발생할 수 있으며, 그 중요한 요소는 다음을 포함하나 이에 한정되지 않습니다: 제안된 거래의 종결을 위한 선행조건의 일부 또는 전부의 미충족(주주 및 규제 당국의 승인이 충족되지 아니하거나 포기 되지 않는 경우 포함); 제안된 거래 관련하여 예측되지 않은 어려움 또는 지출; 거래가 제 시간에 완성되지 아니할 수 있음; 합병계약의 해지의 원인이 되는 여하의 사건 또는 사정변경; 거래 관련한 이슈로부터 회사 경영진의 주목 또는 이의 전환; 본건 발표 이후 회사, 회사의 이사회 및 임원을 상대로 제기될 수 있는 소송, 판결, 화해; 본 발표 및 본 거래가 계속중이라는 사실로 인하여 발생할 수 있는 현 계획 및 운영에 대한 방해; 본 발표 및 본 거래가 계속중이라는 사실로 인하여 임직원 유지에 대한 잠재적인 어려움; 본 거래의 발표로 인한 고객, 공급사, 사업 파트너 및 규제 당국의 반응; 그외 회사의 2020. 12. 31. 종료 사업연도에 대한 연간보고서 10-K 양식 중 Item 1A, Part 1의 “위험 요소”(Risk Factors)에 공개되고 회사가 SEC에 보고서를 제출하여 업데이트 한 위험 요소.

이들 보고서는 www.magnachip.com 또는 www.sec.gov에서 입수하실 수 있습니다. 장래예측정보는 그 발표가 이루어진 날을 기준으로만 하여 제공되며, 회사는 신규 정보 또는 장래 사건에 맞추어 이를 업데이트 할 의무를 부담하지 않습니다.

 

보도자료 문의

앨리슨+파트너스 – 정민아 대표 010-6282-0677 mina.jeong@allisonpr.com

매그나칩반도체, 파운드리 사업 및 청주공장 매각 계약 체결
OLED 구동칩 및 전력반도체 중심의 반도체 제품 기업으로 거듭나

 

매그나칩반도체(대표:김영준, 뉴욕증시상장)는 국내 사모투자펀드운용사인 알케미스트캐피탈파트너스코리아와 크레디언파트너스가 설립한 특수목적회사(SPC)에 자사의 파운드리 사업과 청주공장(Fab 4)을 매각하는 계약을 3월 31일 체결했다고 밝혔다.

이번 거래는 현금 미화 약 3억4천4백7십만달러와 고용 승계 직원들의 퇴직충당금을 포함하여 총 기업 가치 미화 약 4억3천5백만달러에 거래 되었다. 파운드리 사업부 및 청주공장에서 근무하는 약 1,500명 임직원의 고용은 인수기업으로 승계되며, 거래 종료까지는 4~6개월 정도 소요될 예정이다. 알케미스트캐피탈파트너스코리아와 크레디언파트너스가 설립한 매그너스 사모투자합자회사(PEF)에는 새마을금고중앙회와 SK하이닉스가 각각 50%+1주, 49.8%를 출자했다.

매그나칩 김영준 대표이사는 “파운드리 사업과 청주공장에 대한 전략적 평가를 면밀히 실시한 결과, 매그나칩 이사회와 경영진은 회사 매출의 40%를 차지하는 파운드리 사업을 규모의 경제를 실현할 수 있는 기관에 매각하고, 나머지 60% 비중을 차지하며 약 5억달러 매출을 이루는 디스플레이 솔루션 사업과 전력 솔루션 사업에 집중하는 것이 최선의 선택이라고 판단했다”고 배경을 설명하고 “이번 발표는 직원, 고객, 주주를 포함해 양사의 최고의 선택이다. 두 회사 모두 역량을 강화하고, 미래 성장에 주력할 수 있게 되어 지속 성장의 발판을 마련했다”고 말했다.

새로운 매그나칩과 관련해 김 대표는 “디스플레이 솔루션 사업 가운데 OLED 사업과 전력 솔루션 사업의 매출은 최근 4년간 각각 260%, 111%의 높은 성장을 이뤘냈다”라며 “새로운 매그나칩은 향후 디스플레이 및 전력 솔루션 사업 육성, 구미 공장 생산능력 확대를 통해 높은 경쟁력을 갖춘 일류 제품 기업으로 한 단계 더 도약 발전해 나갈 것”이라고 밝혔다.

매그나칩은 패널 업체를 보유하지 않은 논캡티브(Non-Captive) 세계 1위의 OLED 디스플레이 구동칩 공급 업체이며, 세계 최대의 스마트폰 패널 제조사에 OLED 구동칩을 공급하고 있다. 매그나칩의 다양한 OLED 구동칩 제품군은 업계 최저 전력의 28나노 제품을 포함하고 있으며, 5G 스마트폰 모델에 공급된다. 스마트폰 OLED 디스플레이 시장은 향후 4년간 연평균 14% 성장이 전망되는 유망 시장이다. (출처: IHS Markit, Q3 2019)

또한, 매그나칩은 전력 솔루션 분야의 선도 기업으로, 스마트폰 배터리의 전력 효율성을 높이는 배터리 FET(Field Effect Transistor)을 비롯해, 소비자 가전, 통신, 산업용 제품 등에 쓰이는 Super-Junction MOSFET, IGBT, Power IC 등의 프리미엄 제품을 공급하고 있다. 파워 사업은 사물인터넷, 전기자동차를 포함, 신규 애플리케이션 수요 확대에 힘입어 시장 규모가 지속 성장하고 있으며, 특히 전기자동차용 IGBT칩 시장은 향후 4년간 연평균 18% 성장이 예상된다. (출처: IHS Markit, Q3 2019)

아울러, 구미에 위치한 8인치 공장(Fab 3)은 전력 제품 및 OLED가 아닌 디스플레이 제품의 생산을 위해 지속적으로 가동된다. 매그나칩은 구미공장의 월간 웨이퍼 생산 능력을 현재 약 3만장에서 향후 5만장 수준으로 확대할 예정이며, 향후 전력 솔루션 제품군을 전기자동차, 자율주행자동차 등 프리미엄 제품군으로 지속 확대해 나갈 계획이다. 파워 디스크리트(Discrete) 전력 제품은 구미공장에서 생산하고, OLED 디스플레이 제품과 파워IC 전력 제품은 팹리스로 운영해 생산 효율성을 높일 예정이다.

한편, 매그나칩의 이번 전략적 평가의 재무적인 자문은 JP모건에서 제공했으며, 법률자문은 폴와이즈(Paul Weiss)에서 제공했다. 매그나칩은 미국 동부 시간으로 3월 31일 오전 9시에 투자자들을 대상으로 웹캐스트를 진행할 예정이다. 1-844-536-5472 (미국 내 참가 전화번호), 1-614-999-9318(미국 외 지역의 참가 전화번호). 컨퍼런스 ID는 7994839이다.

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 www.magnachip.com.
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 www.magnachip.com. 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.

CONTACTS:

In the United States:
Robert Pursel
Director of Investor Relations
Tel. +1-408-625-1262
robert.pursel@magnachip.com

In Korea:
Chankeun Park
Senior Manager, Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com