投资者 Archives - Magnachip Semiconductor

Company to Become a Pure-Play Power Business To Drive Profitable Growth and Maximize Shareholder Value

-Company will continue to evaluate opportunities to monetize Display assets-

SEOUL, South Korea–(BUSINESS WIRE)–Apr. 8, 2025– Magnachip Semiconductor Corporation (NYSE:MX) (“Magnachip” or the “Company”) today announced that after a thorough review its Board of Directors unanimously approved a plan to shut down the Company’s Display business by the end of the second quarter of 2025. The Company had previously announced its intention to explore all strategic options for the Display business and to classify the Display business as discontinued operations when it reports Q1 results in May in order to focus as a pure-play Power discrete and Power IC company and to achieve profitable revenue growth and maximize shareholder value. However, the Company has not been able to consummate a transaction following several months of discussions with several interested parties on terms that the Company’s Board of Directors believed were in the best interests of the Company and its stockholders. Therefore, the Company has already begun notifying its customers impacted by this decision.

Shutting down the Display business will include the liquidation of Magnachip Mixed-Signal, Ltd. (“MMS”), the Company’s wholly owned subsidiary that operates the discontinued Display business. The Company will retain its Power IC business which had previously resided in MMS and now operates alongside the Company’s Power discrete business in Magnachip Semiconductor, Ltd. (“Magnachip Korea”), the Company’s wholly owned subsidiary that comprises the Power solutions business. Together, the Power IC and Power discrete businesses represent Magnachip’s going-forward continuing operations. The Company will maintain a small team to continue to support customers with respect to “end of life” (“EOL”) products. While Magnachip expects to shut down the Display business by the end of Q2, Magnachip will continue to evaluate opportunities to monetize Display assets.

Magnachip CEO YJ Kim said, “It was an extremely difficult decision to shut down our Display business when considering both our valued customers and employees. However, our first priority is to ensure Magnachip’s long-term success by achieving consistent profitability and earnings growth in order to maximize shareholder value. Navigating the unpredictable macroeconomic headwinds will likely pose significant challenges to all companies over the coming few quarters. At the same time, our strategic pivot to focus exclusively on Power discrete and Power IC businesses is designed to position the Company for a return to profitability. We aim to attain a quarterly Adjusted EBITDA* break-even from continuing operations by the end of this year. We also believe that this will pave the way for positive adjusted operating income* in 2026 and positive adjusted free cash flow* in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a $300 million annual revenue run-rate with a 30% gross profit margin target. We call this our 3-3-3 strategy. Magnachip’s Power discrete and Power IC businesses generated $185 million in revenue in 2024, up 13% from 2023, and the Company expects mid-to-high-single digit revenue growth in 2025.”

Magnachip’s Chairman of the Board Camillo Martino commented, “Having concluded an in-depth review of our businesses, Magnachip’s Board of Directors made a unanimous decision to shut down the Display business in order to focus the Company on the revenue growth and profit potential of the Power discrete and Power IC businesses. We believe the actions announced today demonstrate the Board’s firm commitment to put Magnachip on the path to achieve profitable revenue growth, restore the Company back to profitability and to enhance shareholder value.”

The actions that are being undertaken by the Company in connection with the liquidation process are expected to result in a 30% to 35% reduction in annualized operating expenditures (excluding equity compensation charges) as compared with 2024. In addition, the Company will provide limited support for remaining customer obligations including the sale of EOL Display products, which will be conducted by Magnachip Korea.

* Non-GAAP measure. Please see “Use of Non-GAAP Financial Measures” below.

The Company is unable at this time to provide an estimated amount or range of estimated amounts to be incurred or the future cash expenditures or charges that it will incur in connection with the shutdown of the Company’s Display business and the liquidation of MMS. The Company expects to disclose such costs promptly after the Company makes a determination of an estimate or range of estimates of the costs that are expected to be incurred in connection with the shutdown of the Display business and the liquidation of MMS.

USE OF NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA, adjusted operating income and adjusted free cash flow are considered Non-GAAP measures. Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to Non-GAAP results can be found in our most recent earnings press release on the investor relations page of our website at https://investors.magnachip.com. We define adjusted free cash flow as net cash provided by operating activities, adjusted for net foreign currency transaction gain or loss, less capital expenditures.

Safe Harbor for Forward-Looking Statements

Information in this presentation 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. All forward-looking statements included or incorporated by reference in this press release, including expectations about future operating results and financial performance, outlook and business plans, including longer term revenue growth and Adjusted EBITDA, adjusted operating income and adjusted free cash flow targets, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts including between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and global macroeconomic conditions resulting from trade and tariff actions instituted between the U.S. and other countries on Magnachip’s future operating results and financial performance, and the timing and extent of future revenue contributions by our products and businesses, are based upon information available to Magnachip as of the date of this press release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts including between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 14, 2025, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250408519840/en/

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

Source: Magnachip Semiconductor Corporation

– Announces Transition to Become Pure-Play Power Company; Explores All Strategic Options for Display Business –

Q4 Results Summary

Consolidated revenue of $63 million was above the mid-point of our guidance range of $59.0 to $64.0 million.
Standard Product business revenue was down 5.1% sequentially due primarily to seasonality.
Consolidated gross profit margin of 25.2% was above the high-end our guidance range of 21.5% to 23.5%.
Standard Product business gross profit margin was 26.6%, up 2.2 percentage points sequentially.
Repurchased approximately 0.7 million shares for aggregate purchase price of $2.9 million during the quarter and ended Q4 with cash of $138.6 million.

2024 Highlights

Excluding Transitional Foundry Services, Standard Products business revenue increased 13% year-over-year, with MSS up 22.5% and PAS up 10.2%. Both of these business line growth rates were in line with original guidance for double-digit growth provided at the beginning of 2024.
PAS revenue growth was strongest in Communication, Computing and Consumer in calendar 2024. Automotive and Industrial declined only slightly, relatively outperforming the broader markets.
Power IC revenue increased more than 50% year-over-year.

SEOUL, South Korea–(BUSINESS WIRE)–Mar. 12, 2025– Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the fourth quarter and full-year 2024.

YJ Kim, Magnachip’s CEO, said, “Our Q4 revenue of $63 million was up 24% year-over-year, and gross profit margin of 25.2% was up 2.5 percentage points as compared to a year ago. For the year, Standard Products business revenue increased 13% year-over-year, in line with our guidance for double-digit growth that we provided at the beginning of 2024.”

YJ Kim added, “Our revenue and gross margin results represented a step in the right direction, but our utmost short-term goal is a return to profitability. To achieve this goal, Magnachip announced today its transition to become a pure-play Power company, and we also announced that we are exploring all strategic options for the Display business, which will be classified as discontinued operations when the Company reports Q1 results in May.”

YJ Kim commented, “By focusing on the Power business, Magnachip currently expects to achieve a quarterly Adjusted EBITDA^* breakeven by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income^* in 2026, and positive adjusted free cash flow^* in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a $300 million annual revenue run-rate with a 30% gross profit margin target. We call this our 3-3-3 strategy.”

^*Non-GAAP measure. Please see footnote (2) under the table below, as well as the reconciliation tables of historical GAAP results to non-GAAP results included at the end of this press release.

Q4 and 2024 Financial Highlights


	In thousands of U.S. dollars, except share data
	GAAP
	Q4 2024		Q3 2024		Q/Q change			Q4 2023	Y/Y change
Consolidated Revenues	63,039		66,460		down	5.1	%	50,822	up	24.0	%
Standard Products Business	60,744		64,020		down	5.1	%	41,182	up	47.5	%
Mixed-Signal Solutions	17,289		16,446		up	5.1	%	8,558	up	102.0	%
Power Analog Solutions	43,455		47,574		down	8.7	%	32,624	up	33.2	%
Transitional Fab 3 foundry services⁽¹⁾	2,295		2,440		down	5.9	%	9,640	down	76.2	%
Consolidated Gross Profit Margin	25.2	%	23.3	%	up	1.9	%pts	22.7%	up	2.5	%pts
Standard Products Business	26.6	%	24.4	%	up	2.2	%pts	22.9%	up	3.7	%pts
Mixed-Signal Solutions	41.8	%	38.7	%	up	3.1	%pts	41.3%	up	0.5	%pts
Power Analog Solutions	20.5	%	19.4	%	up	1.1	%pts	18.1%	up	2.4	%pts
Operating Loss	(15,745	)	(11,003	)	down	n/a		(15,935)	up	n/a
Net Loss	(16,277	)	(9,617	)	down	n/a		(6,040)	down	n/a
Basic Loss per Common Share	(0.44	)	(0.26	)	down	n/a		(0.16)	down	n/a
Diluted Loss per Common Share	(0.44	)	(0.26	)	down	n/a		(0.16)	down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q4 2024		Q3 2024		Q/Q change			Q4 2023	Y/Y change
Adjusted Operating Loss	(6,970	)	(9,026	)	up	n/a		(14,095)	up	n/a
Adjusted EBITDA	(2,635	)	(4,949	)	up	n/a		(9,972)	up	n/a
Adjusted Net Income (Loss)	2,637		(12,797	)	up	n/a		(8,044)	up	n/a
Adjusted Earnings (Loss) per Common Share—Diluted	0.07		(0.34	)	up	n/a		(0.21)	up	n/a

	In thousands of U.S dollars, except share data
	GAAP
	2024	2023	Y/Y Change
Consolidated Revenues	231,737	230,051	up	0.7%
Standard Products Business	221,140	195,690	up	13.0%
Mixed-Signal Solutions	54,336	44,366	up	22.5%
Power Analog Solutions	166,804	151,324	up	10.2%
Transitional Fab 3 foundry services⁽¹⁾	10,597	34,361	down	69.2%
Consolidated Gross Profit Margin	22.4%	22.4%	down	0.0%pts
Standard Products Business	24.0%	26.5%	down	2.5%pts
Mixed-Signal Solutions	39.8%	33.7%	up	6.1%pts
Power Analog Solutions	18.9%	24.4%	down	5.5%pts
Operating Loss	(53,031)	(57,644)	up	n/a
Net Loss	(54,308)	(36,622)	down	n/a
Basic Loss per Common Share	(1.44)	(0.89)	down	n/a
Diluted Loss per Common Share	(1.44)	(0.89)	down	n/a

	In thousands of U.S dollars, except share data
	Non-GAAP⁽²⁾
	2024	2023	Y/Y Change
Adjusted Operating Loss	(40,163)	(41,170)	up	n/a
Adjusted EBITDA	(23,594)	(24,174)	up	n/a
Adjusted Net Loss	(29,178)	(22,474)	down	n/a
Adjusted Loss per Common Share—Diluted	(0.77)	(0.55)	down	n/a

______________________

(1)		Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we have wound down these foundry services and begun to convert portions of the idle capacity to PAS products during the second half of 2024. Because these foundry services during the wind-down period have still been provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we continued to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS businesses.

(2)		Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release. We define adjusted free cash flow as net cash provided by operating activities, adjusted for net foreign currency transaction gain or loss, less capital expenditures.

Q1 and Full-year 2025 Financial Guidance

Beginning Q1 2025, the Company will become a pure-play Power company, with the display business classified as discontinued operations and reported separately from continuing operations, which will include PAS and Power IC business lines. While actual results may vary, Magnachip currently expects the following:

For Q1 2025:

Consolidated revenue from continuing operations (which includes Power discrete and Power IC businesses, and excludes our former Display business) to be in the range of $42 to $47 million, down 8.9% sequentially due primarily to seasonality, but up 11.5% year-over-year at the mid-point. This compares with equivalent revenue of $48.9 million in Q4 2024 and $39.9 million in Q1 2024.
Consolidated gross profit margin from continuing operations to be in the range of 18.5% to 20.5%, due to the seasonal sequential decline in revenue and the wind down of Transitional Foundry Services impacting fab utilization. This compares with equivalent gross profit margin of 23.2% in Q4 2024 and 17.6% in Q1 2024.

For the full-year 2025, which will set the stage to become a pure-play Power company, we currently expect:

Consolidated revenue from continuing operations to grow mid-to-high single digit year-over-year as compared with equivalent revenue of $185.8 million in 2024.
Consolidated gross profit margin from continuing operations between 19.5% to 21.5%, reflecting the fact that we have completed the wind down of Transitional Foundry Services and new generation power products will just begin production in the second half 2025. The equivalent gross profit margin was 21.5% in 2024.

Q4 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 8:30 a.m. ET on Wednesday, March 12, 2025, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com/cn.

Online registration: https://register.vevent.com/register/BIa6cd0a845f2f49d6b9ae30f6b3ef47d2

Sell-Side Analyst Briefing and Webcast

Following the conference call, Magnachip will hold an in-person briefing for sell-side analysts in New York City at 10:15 a.m. ET on Wednesday, March 12, 2025. The session will be led by Chief Executive Officer YJ Kim, with Chief Financial Officer Shinyoung Park and other members of management also in attendance. The in person briefing is open to all sell-side analysts and will be webcast live. For further details, please contact steven@blueshirtgroup.co.

To join the Analyst Briefing webcast, all participants must use the following link to complete the online registration process in advance. Upon registering, each participant will receive access details, including the dial-in numbers, a PIN number, and an email with detailed instructions to join the call.

Online registration: https://register.vevent.com/register/BIa603d2c4ff554592b500a20e6e1500d7

Safe Harbor for Forward-Looking Statements

Information in this presentation 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. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter and full year 2025 revenue and gross profit margin expectations and longer term annualized revenue and gross profit margin targets, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China on Magnachip’s first quarter and full year 2025 revenue and future operating results, and the timing and extent of future revenue contributions by our products and businesses, are based upon information available to Magnachip as of the date of this presentation and the accompanying press release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S., China and other countries, including the impact of tariff actions; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

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

	Three Months Ended									Year Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Revenues:
Net sales – standard products business	$	60,744		$	64,020		$	41,182		$	221,140		$	195,690
Net sales – transitional Fab 3 foundry services		2,295			2,440			9,640			10,597			34,361

Total revenues		63,039			66,460			50,822			231,737			230,051
Cost of sales:
Cost of sales – standard products business		44,607			48,400			31,754			168,008			143,762
Cost of sales – transitional Fab 3 foundry services		2,547			2,599			7,541			11,814			34,649

Total cost of sales		47,154			50,999			39,295			179,822			178,411

Gross profit		15,885			15,461			11,527			51,915			51,640
Gross profit as a percentage of standard products business net sales		26.6	%		24.4	%		22.9	%		24.0	%		26.5	%
Gross profit as a percentage of total revenues		25.2	%		23.3	%		22.7	%		22.4	%		22.4	%
Operating expenses:
Selling, general and administrative expenses		12,009			12,091			12,079			47,098			48,470
Research and development expenses		12,967			14,373			15,383			51,194			51,563
Impairment and other charges		6,654			—			—			6,654			802
Early termination charges		—			—			—			—			8,449

Total operating expenses		31,630			26,464			27,462			104,946			109,284

Operating loss		(15,745	)		(11,003	)		(15,935	)		(53,031	)		(57,644	)
Interest income		2,279			2,051			2,519			8,771			10,435
Interest expense		(603	)		(574	)		(183	)		(1,969	)		(828	)
Foreign currency gain (loss), net		(13,407	)		5,066			5,241			(16,899	)		465
Other income (loss), net		364			(31	)		(42	)		485			13

Loss before income tax expense (benefit)		(27,112	)		(4,491	)		(8,400	)		(62,643	)		(47,559	)
Income tax expense (benefit), net		(10,835	)		5,126			(2,360	)		(8,335	)		(10,937	)

Net loss	$	(16,277	)	$	(9,617	)	$	(6,040	)	$	(54,308	)	$	(36,622	)

Basic loss per common share—	$	(0.44	)	$	(0.26	)	$	(0.16	)	$	(1.44	)	$	(0.89	)
Diluted loss per common share—	$	(0.44	)	$	(0.26	)	$	(0.16	)	$	(1.44	)	$	(0.89	)
Weighted average number of shares—
Basic		36,921,300			37,468,849			38,834,451			37,774,280			41,013,069
Diluted		36,921,300			37,468,849			38,834,451			37,774,280			41,013,069

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


	December 31, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents		$	138,610			$	158,092
Accounts receivable, net			28,402				32,641
Inventories, net			30,535				32,733
Other receivables			4,444				4,295
Prepaid expenses			10,379				7,390
Hedge collateral			2,080				1,000
Other current assets			4,779				9,283
Total current assets			219,229				245,434
Property, plant and equipment, net			81,463				100,122
Operating lease right-of-use assets			3,107				4,639
Intangible assets, net			507				1,537
Long-term prepaid expenses			165				5,736
Deferred income taxes			52,889				50,836
Other non-current assets			21,956				12,187
Total assets		$	379,316			$	420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	21,642			$	24,443
Other accounts payable			10,764				5,292
Accrued expenses			8,648				10,457
Accrued income taxes			56				1,496
Operating lease liabilities			1,393				1,914
Other current liabilities			3,765				3,286
Total current liabilities			46,268				46,888
Long-term borrowing			27,211				—
Accrued severance benefits, net			17,094				16,020
Non-current operating lease liabilities			1,823				2,897
Other non-current liabilities			10,123				10,088
Total liabilities			102,519				75,893
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023			574				569
Additional paid-in capital			279,423				273,256
Retained earnings			244,576				298,884
Treasury stock, 20,586,389 shares at December 31, 2024 and 18,118,652 shares at December 31, 2023, respectively			(225,883	)			(213,454	)
Accumulated other comprehensive loss			(21,893	)			(14,657	)
Total stockholders’ equity			276,797				344,598
Total liabilities and stockholders’ equity		$	379,316			$	420,491

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

	Three Months Ended			Year Ended
	December 31, 2024			December 31, 2024			December 31, 2023
Cash flows from operating activities
Net loss	$	(16,277	)	$	(54,308	)	$	(36,622	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization		3,990			16,161			16,684
Provision for severance benefits		3,468			8,020			5,333
Loss on foreign currency, net		26,711			32,851			3,373
Provision (reversal) for inventory reserves		1,086			(529	)		3,885
Stock-based compensation		2,121			6,214			7,223
Impairment charges		4,637			4,637			—
Deferred income tax assets		(10,145	)		(7,034	)		(13,405	)
Other, net		247			799			757
Changes in operating assets and liabilities
Accounts receivable, net		(841	)		2,719			1,909
Inventories		782			(1,583	)		2,370
Other receivables		915			(115	)		3,847
Prepaid expenses		3,232			8,877			8,808
Other current assets		598			1,753			8,048
Accounts payable		(2,590	)		(1,971	)		7,152
Other accounts payable		(3,963	)		(14,160	)		(8,934	)
Accrued expenses		732			(607	)		493
Accrued income taxes		27			(1,432	)		(1,569	)
Other current liabilities		(921	)		(1,161	)		(24	)
Other non-current liabilities		10			(335	)		(238	)
Payment of severance benefits		(518	)		(2,407	)		(6,982	)
Others, net		(1,445	)		(2,522	)		(5,122	)

Net cash provided by (used in) operating activities		11,856			(6,133	)		(3,014	)
Cash flows from investing activities
Proceeds from settlement of hedge collateral		—			627			5,669
Payment of hedge collateral		(1,094	)		(1,706	)		(3,754	)
Purchase of property, plant and equipment		(7,425	)		(11,600	)		(6,955	)
Payment for intellectual property registration		(53	)		(316	)		(263	)
Collection of guarantee deposits		2,382			3,535			4,984
Payment of guarantee deposits		(85	)		(2,175	)		(7,338	)
Collection of short-term financial instruments		30,000			30,000			—
Purchase of short-term financial instruments		—			(30,000	)		—
Others, net		—			(37	)		—

Net cash provided by (used in) investing activities		23,725			(11,672	)		(7,657	)
Cash flows from financing activities
Proceeds from long-term borrowing		—			30,059			—
Proceeds from exercise of stock options		—			—			27
Acquisition of treasury stock		(3,384	)		(12,891	)		(51,782	)
Repayment of financing related to water treatment facility arrangement		(115	)		(472	)		(493	)
Repayment of principal portion of finance lease liabilities		(35	)		(139	)		(91	)

Net cash provided by (used in) financing activities		(3,534	)		16,557			(52,339	)
Effect of exchange rates on cash and cash equivalents		(14,532	)		(18,234	)		(4,375	)

Net increase (decrease) in cash and cash equivalents		17,515			(19,482	)		(67,385	)
Cash and cash equivalents
Beginning of the period		121,095			158,092			225,477

End of the period	$	138,610		$	138,610		$	158,092

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

	Three Months Ended										Year Ended
	December 31, 2024			September 30, 2024			December 31, 2023				December 31, 2024				December 31, 2023
Operating loss	$	(15,745	)	$	(11,003	)		$	(15,935	)		$	(53,031	)		$	(57,644	)
Adjustments:
Equity-based compensation expense		2,121			1,977				1,840				6,214				7,223
Impairment and other charges		6,654			—				—				6,654				802
Early termination charges		—			—				—				—				8,449
Adjusted Operating Loss	$	(6,970	)	$	(9,026	)		$	(14,095	)		$	(40,163	)		$	(41,170	)

We present Adjusted Operating Loss as a supplemental measure of our performance. We define Adjusted Operating Loss for the periods indicated as operating loss adjusted to exclude (i) Equity-based compensation expense, (ii) Impairment and other charges and (iii) Early termination charges.

For the year ended December 31, 2024, we recorded in our consolidated statement of operations $4,637 thousand of impairment loss primarily related to the tangible assets associated with our Display business. During the same period, we also recorded $2,017 thousand of one-time cumulative financial impact in connection with certain employee benefits.

For the year ended December 31, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives.

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

	Three Months Ended										Year Ended
	December 31, 2024			September 30, 2024			December 31, 2023				December 31, 2024			December 31, 2023
Net loss	$	(16,277	)	$	(9,617	)	$	(6,040	)	$		(54,308	)	$	(36,622	)
Adjustments:
Interest income		(2,279	)		(2,051	)		(2,519	)			(8,771	)		(10,435	)
Interest expense		603			574			183				1,969			828
Income tax expense (benefit), net		(10,835	)		5,126			(2,360	)			(8,335	)		(10,937	)
Depreciation and amortization		3,990			4,056			4,101				16,161			16,684

EBITDA		(24,798	)		(1,912	)		(6,635	)			(53,284	)		(40,482	)
Equity-based compensation expense		2,121			1,977			1,840				6,214			7,223
Foreign currency loss (gain), net		13,407			(5,066	)		(5,241	)			16,899			(465	)
Derivative valuation loss (gain), net		(19	)		52			64				(77	)		299
Impairment and other charges		6,654			—			—				6,654			802
Early termination charges		—			—			—				—			8,449

Adjusted EBITDA	$	(2,635	)	$	(4,949	)	$	(9,972	)		$	(23,594	)	$	(24,174	)

Net loss	$	(16,277	)	$	(9,617	)	$	(6,040	)		$	(54,308	)	$	(36,622	)
Adjustments:
Equity-based compensation expense		2,121			1,977			1,840				6,214			7,223
Foreign currency loss (gain), net		13,407			(5,066	)		(5,241	)			16,899			(465	)
Derivative valuation loss (gain), net		(19	)		52			64				(77	)		299
Impairment and other charges		6,654			—			—				6,654			802
Early termination charges		—			—			—				—			8,449
Income tax effect on non-GAAP adjustments		(3,249	)		(143	)		1,333				(4,560	)		(2,160	)

Adjusted Net Income (Loss)	$	2,637		$	(12,797	)	$	(8,044	)		$	(29,178	)	$	(22,474	)

Adjusted Net Income (Loss) per common share—
– Basic	$	0.07		$	(0.34	)	$	(0.21	)		$	(0.77	)	$	(0.55	)
– Diluted	$	0.07		$	(0.34	)	$	(0.21	)		$	(0.77	)	$	(0.55	)
Weighted average number of shares – basic		36,921,300			37,468,849			38,834,451				37,774,280			41,013,069
Weighted average number of shares – diluted		37,738,210			37,468,849			38,834,451				37,774,280			41,013,069

We present Adjusted EBITDA and Adjusted Net Income (Loss) as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Impairment and other charges and (v) Early termination charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit), net and depreciation and amortization.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20250312544285/en/

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

Source: Magnachip Semiconductor Corporation

-Company exploring all strategic options for Display to focus on higher-profit potential of Power and Power IC products-

SEOUL, South Korea–(BUSINESS WIRE)–Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced that after a thorough review, its Board of Directors and management team have made the decision to become a pure-play Power company to drive revenue growth, improve profitability, and maximize shareholder value. As a result, the Company is exploring all strategic options for its Display business, which will be classified as discontinued operations when the Company reports Q1 results in May. The Company’s strategic options include a sale, merger, joint venture, licensing, and wind-down. It expects to complete this strategic process and exit the Display business by the end of Q2 this year.

Magnachip CEO YJ Kim said, “It was an extremely difficult decision when considering both our valued customers and employees. However, our priority is to maximize shareholder value by achieving consistent profitability and earnings growth. By focusing on the Power business, we have a goal to achieve quarterly Adjusted EBITDA break-even by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income in 2026, and positive adjusted free cash flow in 2027. Each of these goals helps reach our 3-3-3 Strategy of $300 million annual revenue run-rate with a 30% gross margin in three years.”

In contrast to the Display business, which serves primarily a single market in smartphones, the Power business serves a broad array of large end markets characterized by longer product cycles, and where industry growth rates tend to fluctuate less and be more predictable over the long term. Magnachip’s Power discrete and Power IC businesses generated $185 million in revenue in 2024, up 13% from 2023, and the Company expects mid-to-high-single digit revenue growth in 2025. Magnachip, which entered the Power business in 2007, announced today it is launching a pipeline of next-generation power products, including Gen 5 and Gen 6 IGBT, Gen 6 SuperJunction MOSFETs, and Gen 8 medium- and low-voltage MOSFETs. The company plans to launch over 40 new-generation power products in 2025, including 27 as mentioned in separate product announcements today. These innovative product families unlock the potential of new high-value market opportunities, such as automotive, industrial, AI, and high-current applications up to and greater than 100KW. The new products are expected to drive higher revenue per wafer, while optimizing the Company’s Gumi manufacturing facility.

In connection with the Company’s strategy to focus exclusively on its Power business, Magnachip expects to invest approximately $65-70 million over three years to optimize and upgrade the Company’s Gumi manufacturing facility. Magnachip recently disclosed it executed a $26.5 million Equipment Financial Credit Agreement, which provides for loans, secured by certain existing assets, to partially fund the Company’s capital expenditures. The loans feature an interest rate of 3.97%, which is adjusted quarterly, and a 10-year maturity, structured with an initial two year period of interest-only payments, followed by eight years of amortizing payments. These loans will help the Company invest in new equipment to upgrade and optimize its Gumi manufacturing facility, which the Company expects will have a positive impact on its product roadmap while also efficiently managing cash on the balance sheet.

Magnachip’s Chairman of the Board Camillo Martino commented, “Having concluded an in-depth review of our businesses, Magnachip’s Board of Directors and management team made a decision to focus the Company on the revenue growth and profit potential of the Power discrete and Power IC businesses. We believe that the action we’ve announced today demonstrates our commitment to maximize shareholder value. The Board is extremely disappointed and shares the frustration of investors over the Company’s financial performance, but we remain determined to put Magnachip on the path to achieve profitable revenue growth and restore the Company back to profitability.”

Q4 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 8:30 a.m. ET on Wednesday, March 12, 2025, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com/cn.

Online registration: https://register.vevent.com/register/BIa6cd0a845f2f49d6b9ae30f6b3ef47d2

Sell-Side Analyst Briefing and Webcast

Following the conference call, Magnachip will hold an in-person briefing for sell-side analysts in New York City at 10:15 a.m. ET on Wednesday, March 12, 2025. The session will be led by Chief Executive Officer YJ Kim, with Chief Financial Officer Shinyoung Park and other members of management also in attendance. The in-person briefing is open to all sell-side analysts and will be webcast live. For further details, please contact steven@blueshirtgroup.co.

Online registration: https://register.vevent.com/register/BIa603d2c4ff554592b500a20e6e1500d7

Safe Harbor for Forward-Looking Statements

Information in this presentation 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. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter and full year 2025 revenue and gross profit margin expectations and longer term annualized revenue and gross profit margin targets, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts including between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China on Magnachip’s first quarter and full year 2025 revenue and future operating results and financial performance, and the timing and extent of future revenue contributions by our products and businesses, are based upon information available to Magnachip as of the date of this presentation and the accompanying press release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts including between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S., China and other countries, including the impact of tariff actions; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

Contacts

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

SEOUL, South Korea–(BUSINESS WIRE)–Feb. 10, 2025– Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the fourth quarter ended December 31, 2024, on Wednesday, March 12, 2025, before the market opens.

Conference Call

The Company will host a conference call to discuss the financial results at 5:30 a.m. PT / 8:30 a.m. ET on Wednesday, March 12, 2025.

To join the conference call, all participants must use the following link to complete the online registration process in advance. Upon registering, each participant will receive access details, including the dial-in numbers, a PIN number, and an email with detailed instructions to join the call.

Online registration: https://register.vevent.com/register/BIa6cd0a845f2f49d6b9ae30f6b3ef47d2

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

Sell-Side Analyst Briefing and Webcast

Following the conference call, Magnachip will hold an in-person briefing for sell-side analysts in New York City at 10:00 a.m. ET on Wednesday, March 12, 2025. The session will be led by Chief Executive Officer YJ Kim, with Chief Financial Officer Shinyoung Park and other members of management also in attendance. The briefing is open to all sell-side analysts and will be webcast live. For further details, please contact steven@blueshirtgroup.co.

Online registration: https://register.vevent.com/register/BIa603d2c4ff554592b500a20e6e1500d7

An audio recording of the analyst briefing webcast and the corresponding presentation materials will be made available following the conclusion of the meeting on the company’s website at www.magnachip.com/cn.

About Magnachip Semiconductor Corporation

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210271891/en/

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

Source: Magnachip Semiconductor Corporation

Financial Highlights

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

Operational Highlights

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

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

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

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

Q3 2024 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP
	Q3 2024		Q2 2024		Q/Q change			Q3 2023		Y/Y change
Consolidated Revenues	66,460		53,171		up	25.0	%	61,245		up	8.5	%
Standard Products Business	64,020		50,835		up	25.9	%	51,619		up	24.0	%
Mixed-Signal Solutions	16,446		11,595		up	41.8	%	10,644		up	54.5	%
Power Analog Solutions	47,574		39,240		up	21.2	%	40,975		up	16.1	%
Transitional Fab 3 foundry services⁽¹⁾	2,440		2,336		up	4.5	%	9,626		down	74.7	%
Consolidated Gross Profit Margin	23.3	%	21.8	%	up	1.5	%pts	23.6	%	down	0.3	%pts
Standard Products Business	24.4	%	23.1	%	up	1.3	%pts	28.7	%	down	4.3	%pts
Mixed-Signal Solutions	38.7	%	34.6	%	up	4.1	%pts	28.8	%	up	9.9	%pts
Power Analog Solutions	19.4	%	19.7	%	down	0.3	%pts	28.6	%	down	9.2	%pts
Operating Loss	(11,003	)	(12,824	)	up	n/a		(9,235	)	down	n/a
Net Loss	(9,617	)	(12,997	)	up	n/a		(5,165	)	down	n/a
Basic Loss per Common Share	(0.26	)	(0.34	)	up	n/a		(0.13	)	down	n/a
Diluted Loss per Common Share	(0.26	)	(0.34	)	up	n/a		(0.13	)	down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q3 2024		Q2 2024		Q/Q change			Q3 2023		Y/Y change
Adjusted Operating Loss	(9,026	)	(11,608	)	up	n/a		(7,064	)	down	n/a
Adjusted EBITDA	(4,949	)	(7,569	)	up	n/a		(2,735	)	down	n/a
Adjusted Net Loss	(12,797	)	(8,134	)	down	n/a		(1,591	)	down	n/a
Adjusted Loss per Common Share—Diluted	(0.34	)	(0.21	)	down	n/a		(0.04	)	down	n/a

___________
(1)		Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and have begun to convert portions of the idle capacity to PAS products during the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS businesses.

(2)		Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q4 and Full-year 2024 Financial Guidance

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

For Q4 2024:

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

For the full-year 2024, we currently expect:

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

Q3 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, October 30, 2024, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com/cn.

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

Safe Harbor for Forward-Looking Statements

Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including fourth quarter and full year 2024 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s fourth quarter and full year 2024 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

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

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Revenues:
Net sales – standard products business	$	64,020		$	50,835		$	51,619		$	160,396		$	154,508
Net sales – transitional Fab 3 foundry services		2,440			2,336			9,626			8,302			24,721
Total revenues		66,460			53,171			61,245			168,698			179,229
Cost of sales:
Cost of sales – standard products business		48,400			39,113			36,829			123,401			112,008
Cost of sales – transitional Fab 3 foundry services		2,599			2,457			9,935			9,267			27,108
Total cost of sales		50,999			41,570			46,764			132,668			139,116
Gross profit		15,461			11,601			14,481			36,030			40,113
Gross profit as a percentage of standard products business net sales		24.4%			23.1%			28.7%			23.1%			27.5%
Gross profit as a percentage of total revenues		23.3%			21.8%			23.6%			21.4%			22.4%
Operating expenses:
Selling, general and administrative expenses		12,091			11,734			12,089			35,089			36,391
Research and development expenses		14,373			12,691			11,627			38,227			36,180
Early termination and other charges		—			—			—			—			9,251
Total operating expenses		26,464			24,425			23,716			73,316			81,822
Operating loss		(11,003	)		(12,824	)		(9,235	)		(37,286	)		(41,709	)
Interest income		2,051			2,228			2,382			6,492			7,916
Interest expense		(574	)		(554	)		(189	)		(1,366	)		(645	)
Foreign currency gain (loss), net		5,066			(3,557	)		(2,583	)		(3,492	)		(4,776	)
Other income (loss), net		(31	)		108			87			121			55
Loss before income tax expense (benefit)		(4,491	)		(14,599	)		(9,538	)		(35,531	)		(39,159	)
Income tax expense (benefit)		5,126			(1,602	)		(4,373	)		2,500			(8,577	)
Net loss	$	(9,617	)	$	(12,997	)	$	(5,165	)	$	(38,031	)	$	(30,582	)
Basic loss per common share—	$	(0.26	)	$	(0.34	)	$	(0.13	)	$	(1.00	)	$	(0.73	)
Diluted loss per common share—	$	(0.26	)	$	(0.34	)	$	(0.13	)	$	(1.00	)	$	(0.73	)
Weighted average number of shares—
Basic		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255
Diluted		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255

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

	September 30, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents		$	121,095			$	158,092
Short-term financial instruments			30,000				—
Accounts receivable, net			28,693				32,641
Inventories, net			36,127				32,733
Other receivables			5,301				4,295
Prepaid expenses			11,614				7,390
Hedge collateral			1,000				1,000
Other current assets			8,208				9,283
Total current assets			242,038				245,434
Property, plant and equipment, net			92,383				100,122
Operating lease right-of-use assets			3,810				4,639
Intangible assets, net			1,353				1,537
Long-term prepaid expenses			615				5,736
Deferred income taxes			46,643				50,836
Other non-current assets			24,513				12,187
Total assets		$	411,355			$	420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	24,644			$	24,443
Other accounts payable			11,768				5,292
Accrued expenses			9,133				10,457
Accrued income taxes			32				1,496
Operating lease liabilities			1,754				1,914
Other current liabilities			3,005				3,286
Total current liabilities			50,336				46,888
Long-term borrowing			30,312				—
Accrued severance benefits, net			17,347				16,020
Non-current operating lease liabilities			2,191				2,897
Other non-current liabilities			11,596				10,088
Total liabilities			111,782				75,893
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,032,206 shares issued and 37,292,044 outstanding at September 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023			569				569
Additional paid-in capital			277,306				273,256
Retained earnings			260,853				298,884
Treasury stock, 19,740,162 shares at September 30, 2024 and 18,118,652 shares at December 31, 2023, respectively			(222,503	)			(213,454	)
Accumulated other comprehensive loss			(16,652	)			(14,657	)
Total stockholders’ equity			299,573				344,598
Total liabilities and stockholders’ equity		$	411,355			$	420,491

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

	Three Months Ended			Nine Months Ended
	September 30, 2024			September 30, 2024			September 30, 2023
Cash flows from operating activities
Net loss	$	(9,617	)	$	(38,031	)	$	(30,582	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		4,056			12,171			12,583
Provision for severance benefits		1,582			4,552			5,358
Loss (gain) on foreign currency, net		(10,708	)		6,140			14,532
Provision for inventory reserves		(591	)		(1,615	)		3,035
Stock-based compensation		1,977			4,093			5,383
Deferred income taxes		(47	)		3,111			88
Others, net		126			552			592
Changes in operating assets and liabilities
Accounts receivable, net		3,795			3,560			(6,409	)
Inventories		1,084			(2,365	)		3,635
Other receivables		(1,631	)		(1,030	)		4,993
Prepaid expenses		1,818			5,645			5,653
Other current assets		4,086			1,155			(7,944	)
Accounts payable		(1,325	)		619			6,066
Other accounts payable		(3,521	)		(10,197	)		(6,738	)
Accrued expenses		(912	)		(1,339	)		619
Accrued income taxes		(1,442	)		(1,459	)		(3,014	)
Other current liabilities		(693	)		(240	)		(741	)
Other non-current liabilities		(99	)		(345	)		(279	)
Payment of severance benefits		(527	)		(1,889	)		(6,183	)
Others, net		(316	)		(1,077	)		(841	)
Net cash used in operating activities		(12,905	)		(17,989	)		(194	)
Cash flows from investing activities
Proceeds from settlement of hedge collateral		627			627			3,335
Payment of hedge collateral		—			(612	)		(3,154	)
Purchase of property, plant and equipment		(2,609	)		(4,175	)		(2,280	)
Payment for intellectual property registration		(85	)		(263	)		(230	)
Collection of guarantee deposits		15			1,153			4,984
Payment of guarantee deposits		(180	)		(2,090	)		(7,276	)
Increase in short-term financial instruments		—			(30,000	)		—
Others, net		(37	)		(37	)		—
Net cash used in investing activities		(2,269	)		(35,397	)		(4,621	)
Cash flows from financing activities
Proceeds from long-term borrowing		—			30,059			—
Proceeds from exercise of stock options		—			—			27
Acquisition of treasury stock		(2,648	)		(9,507	)		(43,087	)
Repayment of financing related to water treatment facility arrangement		(119	)		(357	)		(371	)
Repayment of principal portion of finance lease liabilities		(35	)		(104	)		(69	)
Net cash provided by (used in) financing activities		(2,802	)		20,091			(43,500	)
Effect of exchange rates on cash and cash equivalents		6,604			(3,702	)		(10,518	)
Net decrease in cash and cash equivalents		(11,372	)		(36,997	)		(58,833	)
Cash and cash equivalents
Beginning of the period		132,467			158,092			225,477
End of the period	$	121,095		$	121,095		$	166,644

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

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Operating loss	$	(11,003	)	$	(12,824	)	$	(9,235	)	$	(37,286	)	$	(41,709	)
Adjustments:
Equity-based compensation expense		1,977			1,216			2,171			4,093			5,383
Early termination and other charges		—			—			—			—			9,251
Adjusted Operating Income Loss	$	(9,026	)	$	(11,608	)	$	(7,064	)	$	(33,193	)	$	(27,075	)

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

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

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net loss	$	(9,617	)	$	(12,997	)	$	(5,165	)	$	(38,031	)	$	(30,582	)
Adjustments:
Interest income		(2,051	)		(2,228	)		(2,382	)		(6,492	)		(7,916	)
Interest expense		574			554			189			1,366			645
Income tax expense (benefit)		5,126			(1,602	)		(4,373	)		2,500			(8,577	)
Depreciation and amortization		4,056			4,016			4,081			12,171			12,583
EBITDA		(1,912	)		(12,257	)		(7,650	)		(28,486	)		(33,847	)
Equity-based compensation expense		1,977			1,216			2,171			4,093			5,383
Foreign currency loss (gain), net		(5,066	)		3,557			2,583			3,492			4,776
Derivative valuation loss (gain), net		52			(85	)		161			(58	)		235
Early termination and other charges		—			—			—			—			9,251
Adjusted EBITDA	$	(4,949	)	$	(7,569	)	$	(2,735	)	$	(20,959	)	$	(14,202	)
Net loss	$	(9,617	)	$	(12,997	)	$	(5,165	)	$	(38,031	)	$	(30,582	)
Adjustments:
Equity-based compensation expense		1,977			1,216			2,171			4,093			5,383
Foreign currency loss (gain), net		(5,066	)		3,557			2,583			3,492			4,776
Derivative valuation loss (gain), net		52			(85	)		161			(58	)		235
Early termination and other charges		—			—			—			—			9,251
Income tax effect on non-GAAP adjustments		(143	)		175			(1,341	)		(1,311	)		(3,493	)
Adjusted Net Loss	$	(12,797	)	$	(8,134	)	$	(1,591	)	$	(31,815	)	$	(14,430	)
Adjusted Net Loss per common share—
– Basic	$	(0.34	)	$	(0.21	)	$	(0.04	)	$	(0.84	)	$	(0.35	)
– Diluted	$	(0.34	)	$	(0.21	)	$	(0.04	)	$	(0.84	)	$	(0.35	)
Weighted average number of shares – basic		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255
Weighted average number of shares – diluted		37,468,849			38,174,920			40,145,290			38,060,682			41,747,255

We present Adjusted EBITDA and Adjusted Net Loss as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Early termination and other charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit) and depreciation and amortization.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030615593/en/

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

Source: Magnachip Semiconductor Corporation

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

In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event, including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call.

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

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

About Magnachip Semiconductor Corporation

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241009041152/en/

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

Source: Magnachip Semiconductor Corporation

Financial Highlights

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

Operational Highlights

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

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

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

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

Q2 2024 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP
	Q2 2024		Q1 2024		Q/Q change			Q2 2023		Y/Y change
Consolidated Revenues	53,171		49,067		up	8.4	%	60,979		down	12.8	%
Standard Products Business	50,835		45,541		up	11.6	%	51,375		down	1.1	%
Mixed-Signal Solutions	11,595		9,006		up	28.7	%	12,357		down	6.2	%
Power Analog Solutions	39,240		36,535		up	7.4	%	39,018		up	0.6	%
Transitional Fab 3 foundry services⁽¹⁾	2,336		3,526		down	33.7	%	9,604		down	75.7	%
Consolidated Gross Profit Margin	21.8	%	18.3	%	up	3.5	%pts	22.2	%	down	0.4	%pts
Standard Products Business	23.1	%	21.2	%	up	1.9	%pts	26.3	%	down	3.2	%pts
Mixed-Signal Solutions	34.6	%	44.6	%	down	10.0	%pts	36.4	%	down	1.8	%pts
Power Analog Solutions	19.7	%	15.4	%	up	4.3	%pts	23.1	%	down	3.4	%pts
Operating Loss	(12,824	)	(13,459	)	up	n/a		(10,656	)	down	n/a
Net Loss	(12,997	)	(15,417	)	up	n/a		(3,947	)	down	n/a
Basic Loss per Common Share	(0.34	)	(0.40	)	up	n/a		(0.09	)	down	n/a
Diluted Loss per Common Share	(0.34	)	(0.40	)	up	n/a		(0.09	)	down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q2 2024		Q1 2024		Q/Q change			Q2 2023		Y/Y change
Adjusted Operating Loss	(11,608	)	(12,559	)	up	n/a		(7,762	)	down	n/a
Adjusted EBITDA	(7,569	)	(8,441	)	up	n/a		(3,594	)	down	n/a
Adjusted Net Loss	(8,134	)	(10,884	)	up	n/a		(2,472	)	down	n/a
Adjusted Loss per Common Share—Diluted	(0.21	)	(0.28	)	up	n/a		(0.06	)	down	n/a

___________

(1)		Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and planning to convert portions of the idle capacity to PAS products beginning around the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS businesses.

(2)		Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q3 and Full-year 2024 Financial Guidance

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

For Q3 2024:

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

For the full-year 2024, we currently expect:

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

Q2 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, July 31, 2024, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com/cn.

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

Safe Harbor for Forward-Looking Statements

Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including third quarter and full year 2024 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s third quarter and full year 2024 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

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

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Revenues:
Net sales – standard products business	$	50,835		$	45,541		$	51,375		$	96,376		$	102,889
Net sales – transitional Fab 3 foundry services		2,336			3,526			9,604			5,862			15,095
Total revenues		53,171			49,067			60,979			102,238			117,984
Cost of sales:
Cost of sales – standard products business		39,113			35,888			37,867			75,001			75,179
Cost of sales – transitional Fab 3 foundry services		2,457			4,211			9,574			6,668			17,173
Total cost of sales		41,570			40,099			47,441			81,669			92,352
Gross profit		11,601			8,968			13,538			20,569			25,632
Gross profit as a percentage of standard products business net sales		23.1	%		21.2	%		26.3	%		22.2	%		26.9	%
Gross profit as a percentage of total revenues		21.8	%		18.3	%		22.2	%		20.1	%		21.7	%
Operating expenses:
Selling, general and administrative expenses		11,734			11,264			12,137			22,998			24,302
Research and development expenses		12,691			11,163			11,255			23,854			24,553
Early termination and other charges		—			—			802			—			9,251
Total operating expenses		24,425			22,427			24,194			46,852			58,106
Operating loss		(12,824	)		(13,459	)		(10,656	)		(26,283	)		(32,474	)
Interest income		2,228			2,213			2,692			4,441			5,534
Interest expense		(554	)		(238	)		(200	)		(792	)		(456	)
Foreign currency gain (loss), net		(3,557	)		(5,001	)		1,237			(8,558	)		(2,193	)
Other income (loss), net		108			44			3			152			(32	)
Loss before income tax benefit		(14,599	)		(16,441	)		(6,924	)		(31,040	)		(29,621	)
Income tax benefit		(1,602	)		(1,024	)		(2,977	)		(2,626	)		(4,204	)
Net loss	$	(12,997	)	$	(15,417	)	$	(3,947	)	$	(28,414	)	$	(25,417	)
Basic loss per common share—	$	(0.34	)		(0.40	)	$	(0.09	)	$	(0.74	)	$	(0.60	)
Diluted loss per common share—	$	(0.34	)		(0.40	)	$	(0.09	)	$	(0.74	)	$	(0.60	)
Weighted average number of shares—
Basic		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514
Diluted		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514

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

	June 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	132,467		$	158,092
Short-term financial instruments		30,000			—
Accounts receivable, net		31,175			32,641
Inventories, net		34,783			32,733
Other receivables		3,977			4,295
Prepaid expenses		8,548			7,390
Hedge collateral		1,600			1,000
Other current assets		11,653			9,283
Total current assets		254,203			245,434
Property, plant and equipment, net		88,330			100,122
Operating lease right-of-use assets		4,181			4,639
Intangible assets, net		1,320			1,537
Long-term prepaid expenses		8,085			5,736
Deferred income taxes		44,578			50,836
Other non-current assets		11,998			12,187
Total assets	$	412,695		$	420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	25,575		$	24,443
Other accounts payable		8,383			5,292
Accrued expenses		9,199			10,457
Accrued income taxes		1,422			1,496
Operating lease liabilities		1,805			1,914
Other current liabilities		4,168			3,286
Total current liabilities		50,552			46,888
Long-term borrowing		28,794			—
Accrued severance benefits, net		15,759			16,020
Non-current operating lease liabilities		2,514			2,897
Other non-current liabilities		9,228			10,088
Total liabilities		106,847			75,893
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,015,569 shares issued and 37,799,482 outstanding at June 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023		569			569
Additional paid-in capital		275,329			273,256
Retained earnings		270,470			298,884
Treasury stock, 19,216,087 shares at June 30, 2024 and 18,118,652 shares at December 31, 2023, respectively		(219,949	)		(213,454	)
Accumulated other comprehensive loss		(20,571	)		(14,657	)
Total stockholders’ equity		305,848			344,598
Total liabilities and stockholders’ equity	$	412,695		$	420,491

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

	Three Months Ended			Six Months Ended
	June 30, 2024			June 30, 2024			June 30, 2023
Cash flows from operating activities
Net loss	$	(12,997	)	$	(28,414	)	$	(25,417	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		4,016			8,115			8,502
Provision for severance benefits		1,565			2,970			4,091
Loss on foreign currency, net		6,622			16,848			9,117
Provision for inventory reserves		(77	)		(1,024	)		1,121
Stock-based compensation		1,216			2,116			3,212
Deferred income tax assets		1.845			3,158			27
Other, net		163			426			423
Changes in operating assets and liabilities
Accounts receivable, net		(1,636	)		(235	)		(342	)
Inventories		(4,250	)		(3,449	)		4,911
Other receivables		986			601			4,407
Prepaid expenses		2,922			3,827			4,073
Other current assets		(3,262	)		(2,931	)		(3,678	)
Accounts payable		1,381			1,944			2,880
Other accounts payable		(1,420	)		(6,676	)		(6,488	)
Accrued expenses		1,618			(427	)		1,104
Accrued income taxes		(184	)		(17	)		(2,972	)
Other current liabilities		840			453			(471	)
Other non-current liabilities		378			(246	)		(214	)
Payment of severance benefits		(478	)		(1,362	)		(5,728	)
Other, net		(360	)		(761	)		(487	)
Net cash used in operating activities		(1,112	)		(5,084	)		(1,929	)
Cash flows from investing activities
Proceeds from settlement of hedge collateral		—			—			3,335
Payment of hedge collateral		(612	)		(612	)		(2,586	)
Purchase of property, plant and equipment		(898	)		(1,566	)		(1,518	)
Payment for intellectual property registration		(118	)		(178	)		(163	)
Collection of guarantee deposits		5			1,138			1,445
Payment of guarantee deposits		(36	)		(1,910	)		(6,907	)
Increase in short-term financial instruments		(30,000	)		(30,000	)		—
Other, net		(1	)		0			—
Net cash used in investing activities		(31,660	)		(33,128	)		(6,394	)
Cash flows from financing activities
Proceeds from long-term borrowings		—			30,059			—
Proceeds from exercise of stock options		—			—			27
Acquisition of treasury stock		(2,200	)		(6,859	)		(36,840	)
Repayment of financing related to water treatment facility arrangement		(117	)		(238	)		(248	)
Repayment of principal portion of finance lease liabilities		(34	)		(69	)		(46	)
Net cash provided by (used in) financing activities		(2,351	)		22,893			(37,107	)
Effect of exchange rates on cash and cash equivalents		(4,012	)		(10,306	)		(7,093	)
Net decrease in cash and cash equivalents		(39,135	)		(25,625	)		(52,523	)
Cash and cash equivalents
Beginning of the period		171,602			158,092			225,477
End of the period	$	132,467		$	132,467		$	172,954

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

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Operating loss	$	(12,824	)	$	(13,459	)	$	(10,656	)	$	(26,283	)	$	(32,474	)
Adjustments:
Equity-based compensation expense		1,216			900			2,092			2,116			3,212
Early termination and other charges		—			—			802			—			9,251
Adjusted Operating Income Loss	$	(11,608	)	$	(12,559	)	$	(7,762	)	$	(24,167	)	$	(20,011	)

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

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

	Three Months Ended									Six Months Ended
	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Net loss	$	(12,997	)	$	(15,417	)	$	(3,947	)	$	(28,414	)	$	(25,417	)
Adjustments:
Interest income		(2,228	)		(2,213	)		(2,692	)		(4,441	)		(5,534	)
Interest expense		554			238			200			792			456
Income tax benefit		(1,602	)		(1,024	)		(2,977	)		(2,626	)		(4,204	)
Depreciation and amortization		4,016			4,099			4,145			8,115			8,502
EBITDA		(12,257	)		(14,317	)		(5,271	)		(26,574	)		(26,197	)
Equity-based compensation expense		1,216			900			2,092			2,116			3,212
Foreign currency loss (gain), net		3,557			5,001			(1,237	)		8,558			2,193
Derivative valuation loss (gain), net		(85	)		(25	)		20			(110	)		74
Early termination and other charges		—			—			802			—			9,251
Adjusted EBITDA	$	(7,569	)	$	(8,441	)	$	(3,594	)	$	(16,010	)	$	(11,467	)
Net loss	$	(12,997	)	$	(15,417	)	$	(3,947	)	$	(28,414	)	$	(25,417	)
Adjustments:
Equity-based compensation expense		1,216			900			2,092			2,116			3,212
Foreign currency loss (gain), net		3,557			5,001			(1,237	)		8,558			2,193
Derivative valuation loss (gain), net		(85	)		(25	)		20			(110	)		74
Early termination and other charges		—			—			802			—			9,251
Income tax effect on non-GAAP adjustments		175			(1,343	)		(202	)		(1,168	)		(2,152	)
Adjusted Net Loss	$	(8,134	)	$	(10,884	)	$	(2,472	)	$	(19,018	)	$	(12,839	)
Adjusted Net Loss per common share—
– Basic	$	(0.21	)	$	(0.28	)	$	(0.06	)	$	(0.50	)	$	(0.30	)
– Diluted	$	(0.21	)	$	(0.28	)	$	(0.06	)	$	(0.50	)	$	(0.30	)
Weighted average number of shares – basic		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514
Weighted average number of shares – diluted		38,174,920			38,544,781			41,741,310			38,359,851			42,561,514

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731545229/en/

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

Source: Magnachip Semiconductor Corporation

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

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

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

About Magnachip Semiconductor Corporation

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240710768242/en/

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

Source: Magnachip Semiconductor Corporation

Financial Highlights

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

Operational Highlights

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

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

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

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

Q1 2024 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP
	Q1 2024		Q4 2023		Q/Q change			Q1 2023		Y/Y change
Consolidated Revenues	49,067		50,822		down	3.5	%	57,005		down	13.9	%
Standard Products Business	45,541		41,182		up	10.6	%	51,514		down	11.6	%
Mixed-Signal Solutions	9,006		8,558		up	5.2	%	12,807		down	29.7	%
Power Analog Solutions	36,535		32,624		up	12.0	%	38,707		down	5.6	%
Transitional Fab 3 foundry services⁽¹⁾	3,526		9,640		down	63.4	%	5,491		down	35.8	%
Consolidated Gross Profit Margin	18.3	%	22.7	%	down	4.4	%pts	21.2	%	down	2.9	%pts
Standard Products Business	21.2	%	22.9	%	down	1.7	%pts	27.6	%	down	6.4	%pts
Mixed-Signal Solutions	44.6	%	41.3	%	up	3.3	%pts	30.2	%	up	14.4	%pts
Power Analog Solutions	15.4	%	18.1	%	down	2.7	%pts	26.7	%	down	11.3	%pts
Operating Loss	(13,459	)	(15,935	)	up	n/a		(21,818	)	up	n/a
Net Loss	(15,417	)	(6,040	)	down	n/a		(21,470	)	up	n/a
Basic Loss per Common Share	(0.40	)	(0.16	)	down	n/a		(0.49	)	up	n/a
Diluted Loss per Common Share	(0.40	)	(0.16	)	down	n/a		(0.49	)	up	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q1 2024		Q4 2023		Q/Q change			Q1 2023		Y/Y change
Adjusted Operating Loss	(12,559	)	(14,095	)	up	n/a		(12,249	)	down	n/a
Adjusted EBITDA	(8,441	)	(9,972	)	up	n/a		(7,873	)	down	n/a
Adjusted Net Loss	(10,884	)	(8,044	)	down	n/a		(10,367	)	down	n/a
Adjusted Loss per Common Share—Diluted	(0.28	)	(0.21	)	down	n/a		(0.24	)	down	n/a

___________
(1)		Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are winding down these foundry services and planning to convert portions of the idle capacity to PAS products beginning around the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS businesses.

(2)		Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q2 and 2024 Financial Guidance

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

For Q2 2024:

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

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

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

Q1 2024 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Thursday, May 2, 2024, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com/cn.

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

Safe Harbor for Forward-Looking Statements

Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including second quarter and full year 2024 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s second quarter and full year 2024 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

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

	Three Months Ended
	March 31,			December 31,			March 31,
	2024			2023			2023
Revenues:
Net sales – standard products business	$	45,541		$	41,182		$	51,514
Net sales – Transitional Fab 3 foundry services		3,526			9,640			5,491
Total revenues		49,067			50,822			57,005
Cost of sales:
Cost of sales – standard products business		35,888			31,754			37,312
Cost of sales – Transitional Fab 3 foundry services		4,211			7,541			7,599
Total cost of sales		40,099			39,295			44,911
Gross profit		8,968			11,527			12,094
Gross profit as a percentage of standard products business net sales		21.2	%		22.9	%		27.6	%
Gross profit as a percentage of total revenues		18.3	%		22.7	%		21.2	%
Operating expenses:
Selling, general and administrative expenses		11,264			12,079			12,165
Research and development expenses		11,163			15,383			13,298
Early termination charges		—			—			8,449
Total operating expenses		22,427			27,462			33,912
Operating loss		(13,459	)		(15,935	)		(21,818	)
Interest income		2,213			2,519			2,842
Interest expense		(238	)		(183	)		(256	)
Foreign currency gain (loss), net		(5,001	)		5,241			(3,430	)
Other income (expense), net		44			(42	)		(35	)
Loss before income tax expense		(16,441	)		(8,400	)		(22,697	)
Income tax benefit		(1,024	)		(2,360	)		(1,227	)
Net loss	$	(15,417	)	$	(6,040	)	$	(21,470	)
Basic loss per common share—	$	(0.40	)	$	(0.16	)	$	(0.49	)
Diluted loss per common share—	$	(0.40	)	$	(0.16	)	$	(0.49	)
Weighted average number of shares—
Basic		38,544,781			38,834,451			43,390,832
Diluted		38,544,781			38,834,451			43,390,832

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

	March 31, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	171,602		$	158,092
Accounts receivable, net		30,288			32,641
Inventories, net		31,479			32,733
Other receivables		5,041			4,295
Prepaid expenses		10,255			7,390
Hedge collateral		1,000			1,000
Other current assets		8,550			9,283
Total current assets		258,215			245,434
Property, plant and equipment, net		92,868			100,122
Operating lease right-of-use assets		4,538			4,639
Intangible assets, net		1,391			1,537
Long-term prepaid expenses		9,297			5,736
Deferred income taxes		47,669			50,836
Other non-current assets		12,186			12,187
Total assets	$	426,164		$	420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	24,619		$	24,443
Other accounts payable		5,650			5,292
Accrued expenses		7,951			10,457
Accrued income taxes		1,622			1,496
Operating lease liabilities		1,884			1,914
Other current liabilities		3,158			3,286
Total current liabilities		44,884			46,888
Long-term borrowing		29,700			—
Accrued severance benefits, net		15,503			16,020
Non-current operating lease liabilities		2,808			2,897
Other non-current liabilities		11,384			10,088
Total liabilities		104,279			75,893
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,008,573 shares issued and 38,263,642 outstanding at March 31, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023		569			569
Additional paid-in capital		274,156			273,256
Retained earnings		283,467			298,884
Treasury stock, 18,744,931 shares at March 31, 2024 and 18,118,652 shares at December 31, 2023, respectively		(217,607	)		(213,454	)
Accumulated other comprehensive loss		(18,700	)		(14,657	)
Total stockholders’ equity		321,885			344,598
Total liabilities and stockholders’ equity	$	426,164		$	420,491

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

	Three Months Ended
	March 31, 2024			March 31, 2023
Cash flows from operating activities
Net loss	$	(15,417	)	$	(21,470	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization		4,099			4,357
Provision for severance benefits		1,405			2,330
Loss on foreign currency, net		10,226			9,082
Provision for inventory reserves		(947	)		1,138
Stock-based compensation		900			1,120
Deferred income tax assets		1,313			(4	)
Other, net		263			241
Changes in operating assets and liabilities
Accounts receivable, net		1,401			2,973
Inventories		801			1,062
Other receivables		(385	)		2,376
Other current assets		331			596
Prepaid expenses		905			860
Accounts payable		563			1,904
Other accounts payable		(5,256	)		(1,424	)
Accrued expenses		(2,045	)		7,600
Accrued income taxes		167			(2,923	)
Other current liabilities		(387	)		(596	)
Other non-current liabilities		(624	)		(169	)
Payment of severance benefits		(884	)		(871	)
Other, net		(401	)		(306	)
Net cash provided by (used in) operating activities		(3,972	)		7,876
Cash flows from investing activities
Proceeds from settlement of hedge collateral		—			1,155
Payment of hedge collateral		—			(1,093	)
Purchase of property, plant and equipment		(668	)		(135	)
Payment for intellectual property registration		(60	)		(74	)
Collection of guarantee deposits		1,133			19
Payment of guarantee deposits		(1,874	)		(3,482	)
Other, net		1			—
Net cash used in investing activities		(1,468	)		(3,610	)
Cash flows from financing activities
Proceeds from long-term borrowing		30,059			—
Proceeds from exercise of stock options		—			9
Acquisition of treasury stock		(4,659	)		(12,264	)
Repayment of financing related to water treatment facility arrangement		(121	)		(126	)
Repayment of principal portion of finance lease liabilities		(35	)		(24	)
Net cash provided by (used in) financing activities		25,244			(12,405	)
Effect of exchange rates on cash and cash equivalents		(6,294	)		(5,253	)
Net increase (decrease) in cash and cash equivalents		13,510			(13,392	)
Cash and cash equivalents
Beginning of the period		158,092			225,477
End of the period	$	171,602		$	212,085

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

	Three Months Ended
	March 31,			December 31,			March 31,
	2024			2023			2023
Operating loss	$	(13,459	)	$	(15,935	)	$	(21,818	)
Adjustments:
Equity-based compensation expense		900			1,840			1,120
Early termination charges		—			—			8,449
Adjusted Operating Loss	$	(12,559	)	$	(14,095	)	$	(12,249	)

We present Adjusted Operating Loss as a supplemental measure of our performance. We define Adjusted Operating Loss for the periods indicated as operating loss adjusted to exclude (i) Equity-based compensation expense and (ii) Early termination charges.

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

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

	Three Months Ended
	March 31,			December 31,			March 31,
	2024			2023			2023
Net loss	$	(15,417	)	$	(6,040	)	$	(21,470	)
Adjustments:
Interest income		(2,213	)		(2,519	)		(2,842	)
Interest expense		238			183			256
Income tax benefit		(1,024	)		(2,360	)		(1,227	)
Depreciation and amortization		4,099			4,101			4,357
EBITDA		(14,317	)		(6,635	)		(20,926	)
Equity-based compensation expense		900			1,840			1,120
Foreign currency loss (gain), net		5,001			(5,241	)		3,430
Derivative valuation loss (gain), net		(25	)		64			54
Early termination charges					—			8,449
Adjusted EBITDA	$	(8,441	)	$	(9,972	)	$	(7,873	)

Net loss	$	(15,417	)	$	(6,040	)	$	(21,470	)
Adjustments:
Equity-based compensation expense		900			1,840			1,120
Foreign currency loss (gain), net		5,001			(5,241	)		3,430
Derivative valuation loss (gain), net		(25	)		64			54
Early termination charges		—			—			8,449
Income tax effect on non-GAAP adjustments		(1,343	)		1,333			(1,950	)
Adjusted Net Loss	$	(10,884	)	$	(8,044	)	$	(10,367	)
Adjusted Net Loss per common share—
– Basic	$	(0.28	)	$	(0.21	)	$	(0.24	)
– Diluted	$	(0.28	)	$	(0.21	)	$	(0.24	)
Weighted average number of shares – basic		38,544,781			38,834,451			43,390,832
Weighted average number of shares – diluted		38,544,781			38,834,451			43,390,832

We present Adjusted EBITDA and Adjusted Net Loss as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Early termination charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax benefit and depreciation and amortization.

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

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502734057/en/

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

Source: Magnachip Semiconductor Corporation

SEOUL, South Korea–(BUSINESS WIRE)–Apr. 15, 2024– Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the first quarter ended March 31, 2024, on Thursday, May 2, 2024, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

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

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

About Magnachip Semiconductor Corporation

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com/cn. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240415079688/en/

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

Source: Magnachip Semiconductor Corporation

分类：投资者

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