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

MagnaChip Reports First Quarter 2013 Financial Results

– Revenue Grew 16% Year-Over-Year
– Gross Margin Improved 380 Basis Points Year-Over-Year
– Foundry Business Revenue Increased 53% Year-Over-Year
– Ninth Consecutive Quarter of Achieving Financial Guidance

SEOUL, South Korea and CUPERTINO, Calif., April 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 first quarter ended March 31, 2013.

Revenue for the first quarter of 2013 was $205.3 million, a 5.9% decrease compared to $218.1 million for the fourth quarter of 2012 and a 16.0% increase compared to $177.0 million for the first quarter of 2012.

Gross margin was $65.7 million or 32.0%, as a percent of revenue, for the first quarter of 2013. This compares to gross margin of $74.3 million or 34.1% for the fourth quarter of 2012 and $49.9 million or 28.2% for the first quarter of 2012.

Net loss, on a GAAP basis, for the first quarter of 2013 totaled $7.4 million or $0.21 per diluted share. This compares to net income of $125.3 million or $3.38 per diluted share for the fourth quarter of 2012 and a net income of $15.3 million or $0.40 per diluted share for the first quarter of 2012. Net loss was impacted primarily by a foreign currency loss of $22.6 million during the quarter which was primarily related to non-cash foreign currency translation for intercompany balances that were denominated in U.S. dollars.

“Our first quarter revenue and margin performance was better than the same quarter last year because of the product mix and customer shift we have been making which has enabled us to be better aligned with growing markets,” said Sang Park, MagnaChip Chairman and CEO. “The March quarter is typically a weak quarter due to seasonality and the post-holiday consumer spending slowdown. However, in addition to normal seasonality we also experienced lower than anticipated demand from the smartphone market. Despite these obstacles, we were able to achieve our financial guidance for the ninth consecutive quarter. Looking ahead, challenges still remain and visibility is somewhat limited. However, we remain optimistic that the macro environment is starting to improve and that our business will return to normal seasonal growth beginning in the second quarter.”

Adjusted net income, a non-GAAP measurement, for the first quarter of 2013 totaled $19.7 million or $0.53 per diluted share compared to $28.7 million or $0.77 per diluted share for the fourth quarter of 2012 and $6.5 million or $0.17 per diluted share for the first 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 $183.0 million at the end of the first quarter of 2013, an increase of $0.7 million from the end of the prior quarter. Cash provided from operations totaled approximately $37.5 million for the first quarter of 2013.

First Quarter and Recent Company Highlights
– Foundry Revenue Grew 53% Year-Over-Year.
– Power Solutions Revenue Increased 20% Year-Over-Year.
– Corporate Credit and Debt Rating Upgraded by Standard and Poor’s.
– Repurchased 376,000 Shares in Q1 under MagnaChip’s 2011 Stock Repurchase Program.

Business Outlook
For the second quarter of 2013, MagnaChip expects:
– Revenue will be in the range of $210 million to $220 million.
– Gross margin will be 32.0% to 34.0% as a percent of revenue.

Conference Call
MagnaChip will hold a conference call at 3 p.m. PDT today to discuss the first 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 31661611 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 3 p.m. PDT 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 31661611.

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 second 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

SOURCE MagnaChip Semiconductor Corporation

– Revenue Increased 6.1% For the Full Year
– Gross Margin Increased 190 Basis Points For the Full Year
– Achieved 2012 GAAP EPS of $5.16 Per Diluted Share, Adjusted EPS of $2.23 Per Diluted Share

SEOUL, South Korea and CUPERTINO, Calif., Jan. 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 quarter and year ended December 31, 2012.

Revenue for the fourth quarter of 2012 was $218.1 million, a 1.7% decrease compared to $221.9 million for the third quarter of 2012, and a 20.6% increase compared to $180.8 million for the fourth quarter of 2011. For the full year 2012, revenue was $819.6 million compared to $772.8 million for 2011, a 6.1% increase.

Gross margin was $74.3 million or 34.1%, as a percent of revenue, for the fourth quarter of 2012. This compares to gross profit of $76.4 million or 34.5 % for the third quarter of 2012 and $51.5 million or 28.5% for the fourth quarter of 2011. For the full year 2012, gross profit was $263.5 million or 32.2% compared to $234.3 million or 30.3% for 2011.

Net income, on a GAAP basis, for the fourth quarter of 2012 totaled $125.3 million or $3.38 per diluted share. This compares to net income of $48.4 million or $1.30 per diluted share for the third quarter of 2012 and a net income of $23.7 million or $0.61 per diluted share for the fourth quarter of 2011. For the full year 2012, net income was $193.3 million or $5.16 per diluted share compared to $21.8 million or $0.55 per diluted share for 2011. Net income for 2012 was impacted primarily by a gross margin of $263.5 million compared to $234.3 million for 2011, recognition of deferred tax assets of $64.7 million in 2012, and a foreign currency gain of $56.0 million compared to a foreign currency loss of $11.6 million for 2011, which was primarily related to non-cash foreign currency translation for intercompany balances that were denominated in U.S. dollars.

“I am very pleased that we ended 2012 with revenue of $819.6 million dollars, up 6.1% from 2011 and outpacing the semiconductor industry, which declined 3.0% this year. While the macro environment remained weak, we have successfully aligned with the growing smartphone and tablet PC market, leveraged our strong relationships with blue chip customers, and delivered 30% more new products in 2012 from the previous year,” said Sang Park, MagnaChip Chairman and CEO. “I believe that this will help differentiate us from our competitors and allow us to perform better than the market in 2013. Compared to the same quarter last year, Q4 revenue and gross margin maintained better momentum due to a successful mix shift of products and customers and improved utilization from our mixed business model. Our revenue and margin performance this quarter represents our eighth consecutive quarter of meeting or exceeding guidance.”

Adjusted net income, a non-GAAP measurement, for the fourth quarter of 2012 totaled $28.7 million or $0.77 per diluted share compared to $30.4 million or $0.81 per diluted share for the third quarter of 2012 and $10.0 million or $0.26 per diluted share for the fourth quarter of 2011. For the full year 2012, adjusted net income was $83.5 million or $2.23 per diluted share compared to $66.4 million or $1.67 per diluted share for 2011.

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.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $182.4 million at the end of the fourth quarter of 2012, an increase of $16.6 million from the end of the prior quarter. Cash provided from operations totaled approximately $31.5 million for the fourth quarter of 2012.

Revenue by Segment

In thousands of US dollars Three Months Ended Year Ended

December 31, 2012 September 30, 2012 December 31, 2011 December 31, 2012 December 31, 2011
Semiconductor Manufacturing Services $ 112,654 $ 117,978 $ 67,973 $ 389,812 $ 338,268
Display Solutions  72,806 69,415 90,045 302,230 338,995
Power Solutions 31,949  33,849 22,039 124,750 92,547
Other 675 630 769 2,800 3,021
Total Revenue $ 218,084 $ 221,872 $ 180,826 $ 819,592 $ 772,831

Fourth Quarter and Recent Company Highlights

Power Solutions 2012 Revenue Grew 34.8% for the Full Year.
AMOLED 2012 Revenue from Smartphones Grew 47.0% for the Full Year.
Eighth Consecutive Quarter of Achieving Financial Guidance.
Repurchased 406 Thousand Shares in Q4 under MagnaChip’s 2011 Stock Repurchase Program.

Business Outlook

For the first quarter of 2013, MagnaChip expects:

Revenue will be in the range of $201 million to $209 million.
Gross margin will be 31.0% to 33.0% as a percent of revenue.

Non-GAAP Metrics

Adjusted EBITDA excludes charges related to depreciation and amortization, interest expense, net, income tax expense (benefit), restructuring and impairment charges, stock-based compensation expense, foreign currency loss (gain), net, derivative valuation loss (gain), net, secondary offering and others, special expense for an IPO employee incentive payment, and loss on early extinguishment of senior notes. Adjusted net income excludes charges related to restructuring and impairment, stock-based compensation expense, amortization of intangible assets associated with continuing operations, foreign currency loss (gain), net, derivative valuation loss (gain), net, secondary offering and others, GAAP and cash tax expense difference, special expense for an IPO employee incentive payment, and loss on early extinguishment of senior notes. A reconciliation of GAAP results to non-GAAP results is included following the financial statements.

Conference Call

MagnaChip will hold a conference call at 2 p.m. PST today to discuss the fourth quarter 2012 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 86473379 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 2 p.m. PST 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 86473379.

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 first 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 March 8, 2012 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

MagnaChip Reports Third Quarter 2012 Financial Results

– Revenue Increased 9.5% Sequentially and 10.7% Year-Over-Year Driven By Solid Foundry Revenue Growth
– Gross Margin of 34.5% Expanded 350 Basis Points Sequentially and 450 Basis Points Year-Over-Year
– Achieved GAAP EPS of $1.30 Per Diluted Share and Adjusted EPS of $0.81 Per Diluted Share

SEOUL, South Korea and CUPERTINO, Calif., Nov. 1, 2012 /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 third quarter ended September 30, 2012.

Revenue for the third quarter of 2012 was $221.9 million, a 9.5% increase compared to $202.6 million for the second quarter of 2012, and a 10.7% increase compared to $200.4 million for the third quarter of 2011.
Gross margin was $76.4 million or 34.5%, as a percent of revenue, for the third quarter of 2012. This compares to gross margin of $62.9 million or 31.0% for the second quarter of 2012 and $60.1 million or 30.0% for the third quarter of 2011.

Net income, on a GAAP basis, for the third quarter of 2012 totaled $48.4 million or $1.30 per diluted share. This compares to net income of $4.3 million or $0.12 per diluted share for the second quarter of 2012 and net loss of $56.0 million or $1.43 per diluted share for the third quarter of 2011. Net income was impacted primarily by a foreign currency gain of $21.8 million during the quarter which was primarily related to non-cash foreign currency translation for intercompany balances that were denominated in U.S. dollars.

“Our sequential revenue growth of nearly 10% put us at the high end of the semiconductor group in terms of top line performance with smartphone and tablet PC demand remaining strong going into the fourth quarter. This smartphone and tablet PC demand is well diversified with MagnaChip supplying about 50 unique products to 26 different customers,” said Sang Park, MagnaChip Chairman and CEO. “In addition to strong revenue growth, our Q3 gross margin was up 350 basis points sequentially and up 630 basis points since Q1 due to higher fab utilization and improved product mix shift.”

Adjusted net income, a non-GAAP measurement, for the third quarter of 2012 totaled $30.4 million or $0.81 per diluted share compared to $17.9 million or $0.48 per diluted share for the second quarter of 2012 and $18.2 million or $0.46 per diluted share for the third quarter of 2011.

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.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $165.8 million at the end of the third quarter of 2012, an increase of $4.8 million from the end of the prior quarter. Cash provided from operations totaled approximately $23.0 million for the third quarter of 2012.

Revenue by Segment
In thousands of US dollars

Three Months Ended

September 30, 2012      June 30, 2012 September 30, 2012
Semiconductor
Manufacturing Services $                   117,978 $                 91,318 $                    81,571
Display Solutions 69,415 76,784 91,767
Power Solutions 33,849 33,699 26,358
Other 630 833 709
Total Revenue $                  221,872 $              202,634 $                 200,405


Third Quarter and Recent Company Highlights
– Seventh Consecutive Quarter of Achieving Financial Guidance.
– Expanded Gross Margins to $76.4 million or 34.5%.
– Achieved GAAP EPS of $1.30 Per Diluted Share and Adjusted EPS of $0.81 Per Diluted Share.
– Repurchased 444 Thousand Shares under MagnaChip’s 2011 Stock Repurchase Program.

Business Outlook
– For the fourth quarter of 2012, MagnaChip expects:
– Revenue will be in the range of $213 million to $222 million.
– Gross margin will be 33.5% to 34.5%.

Non-GAAP Metrics
Adjusted EBITDA excludes charges related to depreciation and amortization, interest expense, net, income tax expense, restructuring and impairment charges, stock-based compensation expense, foreign currency loss (gain), net, derivative valuation loss (gain), net, secondary offering and others, and loss on early extinguishment of senior notes. Adjusted net income (loss) excludes charges related to restructuring and impairment charges, stock-based compensation expense, amortization of intangible assets associated with continuing operations, foreign currency loss (gain), net, derivative valuation loss (gain), net, secondary offering and others, and loss on early extinguishment of senior notes. A reconciliation of GAAP results to non-GAAP results is included following the financial statements.

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 fourth quarter 2012 revenue and gross margin. 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 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 March 8, 2012 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

MagnaChip Reports Second Quarter 2012 Financial Results

– Q2 Revenue Increased 14.5% Sequentially Driven By Strong Growth From Power Solutions (33.4%) and Foundry (34.6%) Revenue
– Gross Margin Expanded 280 Basis Points to 31.0% in Q2
– Expects Q3 Revenue to Increase 7% to 11% and Gross Margin to Increase 100 to 200 Basis Points on a Sequential Basis

SEOUL, South Korea and CUPERTINO, Calif., Aug. 2, 2012 /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, 2012.

Revenue for the second quarter of 2012 was $202.6 million, a 14.5% increase compared to $177.0 million for the first quarter of 2012, and a 0.5% decrease compared to $203.7 million for the second quarter of 2011.

Gross margin was $62.9 million or 31.0%, as a percent of revenue, for the second quarter of 2012. This compares to gross margin of $49.9 million or 28.2% for the first quarter of 2012 and $66.2 million or 32.5% for the second quarter of 2011.

“I am very pleased that the second quarter represented our sixth consecutive quarter of meeting revenue and gross margin guidance in what is being described as a challenging macro environment. Our foundry services and power solutions segments saw greater than anticipated order strength and revenue growth during the quarter,” said Sang Park, MagnaChip Chairman and CEO. “This is possible because of our alignment with strategic customers in high growth markets – including the leading smart phone and tablet PC makers. During the last three years, we have made solid progress shifting our customer base and refocusing our product portfolio. Our direct and indirect revenue from the top two smart phone/tablet PC makers has almost tripled in the first half of this year compared to the first half of 2010.”

Net income, on a GAAP basis, for the second quarter of 2012 totaled $4.3 million or $0.12 per diluted share. This compares to net income of $15.3 million or $0.40 per diluted share for the first quarter of 2012 and net income of $31.6 million or $0.78 per diluted share for the second quarter of 2011. Net income was impacted primarily by a foreign currency loss of $10.6 million during the quarter which was primarily related to non-cash translation losses for intercompany balances that were denominated in U.S. dollars.

Adjusted net income, a non-GAAP measurement, for the second quarter of 2012 totaled $17.9 million or $0.48 per diluted share compared to $6.5 million or $0.17 per diluted share for the first quarter of 2012 and $22.5 million or $0.56 per diluted share for the second quarter of 2011.

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.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $161.0 million at the end of the second quarter of 2012, an increase of $0.4 million from the end of the prior quarter. Cash provided from operations totaled approximately $26.7 million for the second quarter of 2012.

Second Quarter and Recent Company Highlights
– Sixth Consecutive Quarter of Achieving Financial Guidance.
– Factory Utilization Increased to More than 90% in the Second Quarter.
– Achieved GAAP EPS of $0.12 Per Diluted Share and Adjusted EPS of $0.48.
– Completed Successful Secondary Offering of 7 Million Shares of Common Stock in May.
– Repurchased 539 Thousand Shares under MagnaChip’s Stock Repurchase Program Announced October 11, 2011.

Business Outlook For the third quarter of 2012, MagnaChip expects:
– Revenue to increase 7% to 11% to $217 million to $225 million on a sequential basis.
– Gross margin to increase 100 to 200 basis points to 32.0% to 33.0% sequentially.

Non-GAAP Metrics
Adjusted EBITDA excludes charges related to depreciation and amortization, interest expense, net, income tax expense, restructuring and impairment charges, stock-based compensation expense, foreign currency loss (gain), net, derivative valuation gain, net, secondary offering expense, and loss on early extinguishment of senior notes. Adjusted net income (loss) excludes charges related to restructuring and impairment charges, stock-based compensation expense, amortization of intangible assets associated with continuing operations, foreign currency loss (gain), net, derivative valuation gain, net, secondary offering expense, and loss on early extinguishment of senior notes. A reconciliation of GAAP results to non-GAAP results is included following the financial statements.

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 2012 revenue and gross profit. 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 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 March 8, 2012 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 Invetor Relations
Tel. 408-625-1262
robert.pursel@magnachip.com

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

MagnaChip Reports First Quarter 2012 Financial Results

– Power Solutions Revenue Grew 14.6% Sequentially and 23.7% Year-over-Year
– Achieved GAAP EPS of $0.40 and Adjusted EPS of $0.17
– Expects Q2 Revenue to Increase 11% to 15% on a Sequential Basis

 

SEOUL, South Korea and CUPERTINO, Calif., April 25, 2012 – 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 first quarter ended March 31, 2012.

Revenue for the first quarter of 2012 was $177.0 million, a 2.1% decrease compared to $180.8 million for the fourth quarter of 2011, and a 5.8% decrease compared to $187.9 million for the first quarter of 2011.

Gross profit was $49.9 million or 28.2%, as a percent of revenue, for the first quarter of 2012. This compares to gross profit of $51.5 million or 28.5 % for the fourth quarter of 2011 and $56.5 million or 30.1% for the first quarter of 2011.

“I am very pleased that since going public in March 2011, we have met our revenue and gross margin guidance each quarter for 5 consecutive quarters in what has been a very challenging period for the industry,” said Sang Park, MagnaChip’s Chairman and Chief Executive Officer. “As our Q2 guidance suggests, the first quarter of 2012 was indeed our bottom during this current semiconductor downturn. We have been seeing renewed customer order strength and wafer loading since early March as a result of increased demand from smartphone and tablet PC customers and expect this trend to continue into the second half of this year. In anticipation of this growing demand, we have allocated additional fab capacity to support expansion.”

Net income, on a GAAP basis, for the first quarter of 2012 totaled $15.3 million or $0.40 per diluted share. This compares to net income of $23.7 million or $0.61 per diluted share for the fourth quarter of 2011 and a net income of $22.5 million or $0.57 per diluted share for the first quarter of 2011. Net income was impacted primarily by a foreign currency gain of $11.1 million during the quarter which was primarily related to non-cash translation gains for intercompany balances that were denominated in U.S. dollars.

Adjusted net income, a non-GAAP measurement, for the first quarter of 2012 totaled $6.5 million or $0.17 per diluted share compared to $10.0 million or $0.26 per diluted share for the fourth quarter of 2011 and $15.7 million or $0.40 per diluted share for the first quarter of 2011.

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.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $160.6 million at the end of the first quarter of 2012, a decrease of $8.4 million from the end of the prior quarter. Cash provided from operations totaled approximately $39.9 million for the first quarter of 2012.

Revenue by Segment

In thousands of US dollars Three Months Ended

March 31, 2012 December 31, 2011 March 31, 2011
 Semiconductor Manufacturing Services $ 67,863 $ 67,973 $ 92,266
 Display Solutions 83,225 90,045 74,464
 Power Solutions 25,253 22,039 20,412
 Other 661 769 779
 Total Revenue $ 177,002 $ 180,826 $ 187,921

First Quarter and Recent Company Highlights

Power Solutions Revenue Grew 14.6% Sequentially and 23.7% Year-over-Year.
Fab loading rate exceeded 90% in March 2012.
Achieved GAAP EPS of $0.40 and Adjusted EPS of $0.17.
Repurchased 1.04 Million Shares under MagnaChip’s Stock Repurchase Program Announced October 11, 2011.

Business Outlook For the second quarter of 2012, MagnaChip expects:

Revenue will increase 11% to 15% ($197 million to $203 million) on a sequential basis.
Gross Profit, as a percent of revenue, will be in the range of 29.5% to 30.5%.

Non-GAAP Metrics Adjusted EBITDA excludes charges related to depreciation and amortization, interest expense, net, income tax expense, stock-based compensation expense, foreign currency gain, net, derivative valuation loss (gain), net, and special expense for an IPO employee incentive payment. Adjusted net income (loss) excludes charges related to, stock-based compensation expense, amortization of intangible assets associated with continuing operations, foreign currency gain, net, derivative valuation loss (gain), net, and special expense for an IPO employee incentive payment. A reconciliation of GAAP results to non-GAAP results is included following the financial statements.

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 second quarter 2012 revenue and gross profit. 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 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 March 8, 2012 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. 408-625-1262
robert.pursel@magnachip.com

In Korea:

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

MagnaChip Completes Acquisition of Dawin Electronics

 

Acquisition Expands MagnaChip’s Portfolio of Power Solutions Products

 

SEOUL, South Korea and CUPERTINO, Calif., March 5, 2012 — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) today announced that its Korean subsidiary has completed its acquisition of Dawin Electronics Co. Ltd., a privately held semiconductor company that designs and manufactures Insulated Gate Bipolar Transistor (IGBT), Fast Recovery Diode (FRD) and MOSFET modules. Dawin Electronics is headquartered in Incheon, South Korea, and has sales offices in China and Europe.

“We are delighted to have completed this acquisition,” said Sang Park, MagnaChip’s Chairman and Chief Executive Officer. “The acquisition of Dawin Electronics expands MagnaChip’s offering of Power Solutions products to the commercial and industrial markets and will enable MagnaChip to compete quickly and effectively with a broader portfolio of IGBT power solutions. We are very excited about this transaction and the additional value we expect to create for our shareholders and customers.”

According to market research firm IHS iSuppli, the total IGBT market in 2011 was estimated to be $4.1 billion and is expected to grow at a compounded annual growth rate of 10 percent from 2011 to 2015. IGBTs are used in a broad range of medium- to high-power commercial and industrial applications and in many consumer appliances such as variable speed refrigerators, air-conditioners and stereo systems. Availability of affordable, reliable IGBTs is also an important enabler for electric vehicles and hybrid cars. Terms of the deal were not disclosed.

About MagnaChip Semiconductor

Headquartered in South Korea, MagnaChip Semiconductor is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications. MagnaChip Semiconductor believes it has one of the broadest and deepest range of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com.

Safe Harbor for Forward-Looking Statements

Information in this release regarding MagnaChip Semiconductor Corporation’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 revenue. 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 Semiconductor Corporation’s filings with the SEC, including our Form 10-K filed on March 18, 2011 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 Semiconductor Corporation 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. 408-625-1262
robert.pursel@magnachip.com

In Korea:

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

MagnaChip Reports Fourth Quarter and Full Year 2011 Financial Results

 

– Power Solutions Full Year 2011 Revenue Grew 61.6% Year-over-Year
– AMOLED Display Full Year 2011 Revenue Grew 700% Year-over-Year
– Smartphone and Tablet PC 2011 Design Wins Tripled Year-over-Year
– Signed a Definitive Agreement to Acquire Dawin Electronics,
a Provider of High-Power Semiconductor Modules

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 quarter and year ended December 31, 2011.

Revenue for the fourth quarter of 2011 was $180.8 million, a 9.8% decrease compared to $200.4 million for the third quarter of 2011, and a 3.2% decrease compared to $186.8 million for the fourth quarter of 2010. For the full year 2011, revenue was $772.8 million compared to $770.4 million for 2010, a 0.3% increase.

Gross profit was $51.5 million or 28.5%, as a percent of revenue, for the fourth quarter of 2011. This compares to gross profit of $60.1 million or 30.0% for the third quarter of 2011 and $60.4 million or 32.3% for the fourth quarter of 2010. For the full year 2011, gross profit was $234.3 million or 30.3% compared to $243.6 million or 31.6% for 2010.

“I am very pleased that for the fourth consecutive quarter we again met our quarterly revenue guidance in what has been a challenging year for the semiconductor industry. Our successful track record is a result of outstanding relationships with major blue chip customers and a growing list of design-wins targeted at high-growth, high-margin applications,” said Sang Park, MagnaChip’s Chairman and Chief Executive Officer. “Smartphones, tablet PCs, AMOLED displays and Ultrabooks are some examples of growth drivers for MagnaChip in 2012 as well as our rapidly expanding customer base and new product introductions for the power solutions segment. In addition, our recent announcement of the Dawin Electronics Co. Ltd. acquisition strengthens our competitive position in the fast growing IGBT power module business. Looking ahead, we believe there are indications that the first quarter of 2012 could be the bottom of our revenue downturn based on the strength of orders for new products coming from our smartphone and tablet PC customers. Our goal is to grow the business, deliver solid financial performance and to enhance shareholder value in the years to come.”

Net income, on a GAAP basis, for the fourth quarter of 2011 totaled $23.7 million or $0.61 per diluted share. This compares to net loss of $56.0 million or $1.43 per diluted share for the third quarter of 2011 and a net income of $12.3 million or $0.31 per diluted share for the fourth quarter of 2010. For the full year 2011, net income was $21.8 million or $0.55 per diluted share compared to $74.1 million or $1.89 per diluted share for 2010. Net income for 2011 was impacted primarily by a foreign currency loss of $11.6 million compared to a foreign currency gain of $14.7 million for 2010, as well as a special expense for IPO incentive payments of $12.1 million made in 2011. The net foreign currency exposure was primarily related to non-cash translation gains or losses for intercompany balances that were denominated in U.S. dollars.

Adjusted net income, a non-GAAP measurement, for the fourth quarter of 2011 totaled $10.0 million or $0.26 per diluted share compared to $18.2 million or $0.46 per diluted share for the third quarter of 2011 and $17.4 million or $0.44 per diluted share for the fourth quarter of 2010. For the full year 2011, adjusted net income was $66.4 million or $1.67 per diluted share compared to $89.2 million or $2.28 per diluted share for 2010.

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.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $168.9 million at the end of the fourth quarter of 2011, an increase of $0.2 million from the end of the prior quarter. Cash provided from operations totaled approximately $18.3 million for the fourth quarter of 2011.

Revenue by Segment

In thousands of US dollars

Three Months Ended Year Ended
December 31,
2011
September 30,
2011
December 31,
2010
December 31,
2011
December 31,
2010
Semiconductor
Manufacturing Services
$ 67,973 $ 81,571 $ 97,261 $ 338,268 $ 405,197
Display Solutions 90,045 91,767 70,581 338,995 305,884
Power Solutions 22,039 26,358 18,398 92,547 57,273
Other 769 709 532 3,021 2,051
Total Revenue $ 180,826 $ 200,405 $ 186,772 $ 772,831 $ 770,405

Fourth Quarter and Recent Company Highlights

Signed a Definitive Agreement to Acquire Dawin Electronics Co. Ltd., a Provider of High-Power Semiconductor Modules.
Repurchased 1.53 Million Shares under MagnaChip’s Stock Repurchase Program Announced October 11, 2011.
Announced the Supply of AMOLED Display Driver ICs for Microsoft Windows-Based Smartphones.
Expanded the LED Driver Product Portfolio to Notebook and Tablet PCs.
Launched Module Based Process Design Kits for Power and Display Driver Applications.

Non-GAAP Metrics

Adjusted EBITDA excludes charges related to depreciation and amortization, interest expense, net, income tax expense, restructuring and impairment charges, inventory step-up, stock-based compensation expense, foreign currency loss (gain), net, derivative valuation loss, net, special expense for an IPO employee incentive payment, and loss on early extinguishment of senior notes. Adjusted net income (loss) excludes charges related to restructuring and impairment, inventory step-up, stock-based compensation expense, amortization of intangible assets associated with continuing operations, foreign currency loss (gain), net, derivative valuation loss, net, special expense for an IPO employee incentive payment, and loss on early extinguishment of senior notes. A reconciliation of GAAP results to non-GAAP results is included following the financial statements.

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 first quarter 2012 revenue. 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 March 18, 2011 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. 408-625-1262
robert.pursel@magnachip.com

In Korea:

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

MagnaChip to Acquire Dawin Electronics,
Designer and Manufacturer of Power Modules

 

MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) today announced that its Korean subsidiary has entered into a definitive agreement to acquire Dawin Electronics Co. Ltd., a privately held semiconductor company that designs and manufactures Insulated Gate Bipolar Transistor (IGBT), Fast Recovery Diode (FRD) and MOSFET modules. Dawin Electronics is headquartered in Incheon, South Korea, and has sales offices in China and Europe. Terms of the deal were not disclosed.

“The acquisition of Dawin Electronics is a strategic fit for MagnaChip and allows us to continue to diversify and expand our fast-growing Power Solutions business into the commercial and industrial segments,” said Sang Park, MagnaChip’s Chairman and CEO. “Dawin’s high-power modules will enable MagnaChip to compete quickly and effectively in the high-growth IGBT market with a broader portfolio of power solutions for our customers. This acquisition also demonstrates our continued focus on capital allocation and commitment to return shareholder value to our investors.”

According to market research firm IHS iSuppli, the total IGBT market in 2011 was estimated to be $4.1 billion and is expected to grow at a compounded annual growth rate of 10 percent from 2011 to 2015. The IGBT is used in a broad range of medium- to high-power commercial and industrial applications and in many consumer appliances such as variable speed refrigerators, air-conditioners and stereo systems. Availability of affordable, reliable IGBTs is also an important enabler for electric vehicles and hybrid cars.

The acquisition of Dawin and its IGBT and FRD module technology is synergistic with MagnaChip’s goal of expanding into high-growth, high-margin markets and with its long history as a designer and manufacturer of analog and mixed-signal semiconductor products. The acquisition is expected to be completed before the end of March 2012.

About MagnaChip Semiconductor

Headquartered in South Korea, MagnaChip Semiconductor is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications. MagnaChip Semiconductor believes it has one of the broadest and deepest range of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com.

About Dawin Electronics

Dawin Electronics, founded in 2001, is a Korea-based designer and manufacturer of FRD, IGBT and MOSFET modules for consumer, commercial and industrial applications. For more information, please visit www.dawinsemi.com.

Safe Harbor for Forward-Looking Statements

Information in this release regarding MagnaChip Semiconductor Corporation’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 revenue. 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 Semiconductor Corporation’s filings with the SEC, including our Form 10-K filed on March 18, 2011 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 Semiconductor Corporation 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. 408-625-1262
robert.pursel@magnachip.com

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