SEOUL, South Korea and SAN JOSE, Calif., May 30, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor products, announced today the offering of its second generation 0.13 micron eFlash (Embedded Flash) technology with 20V and 30V high-voltage options. The technology is specifically designed to address the needs for multi-function hybrid mixed-signal products, including touch ICs, fingerprint readout ICs and wireless power charger ICs.

With the growing complexity of analog and mixed-signal functions, IC designers are facing increasing challenges to integrate multiple functions in a single product. The wireless power charger ICs, for instance, include digital logic, analog blocks, power management functions, embedded microcontrollers, etc. In order to design and manufacture such multi-functional products, hybrid processes capable of integrating various devices have become highly desirable.

To meet these market needs, MagnaChip has developed a unique, cost-competitive hybrid process through the addition of 20V and 30V high-voltage options to its second generation 0.13 micron eFlash. The second generation 0.13 micron eFlash, which has high performing and highly reliable embedded Flash, is a cost competitive process as it reduced 7 process steps in comparison to the first generation 0.13 micron eFlash. It also provides various customized IPs up to 64Kbytes. Even with the addition of the high voltage option, the hybrid process maintains the original eFlash characteristics.

Additional benefit of this process is that customers can now select either 20V or 30V, whichever fits their products’ characteristics while having the option to choose IPs such as SRAM, PLL analog IPs, high density standard cell libraries and high voltage IO libraries to meet their design needs. Furthermore, the hybrid process provides fully isolated high-voltage capability for the output driver to handle negative voltage, thereby allowing higher design flexibility.

MagnaChip’s newly developed hybrid process uses the high-voltage devices of which reliability has already been verified in DDI (Display Driver IC) technology and can minimize high-voltage area in chips through more optimized design rules and enhanced current performance. This high-voltage capability is particularly important for products needing high-voltage output drivers and those requiring high SNR (signal to noise ratio). For instance, touch ICs in tablets and notebooks mainly use 20V and monitors use 30V.

So far, MagnaChip has been developing various hybrid processes with higher performance at lower costs to meet the growing market needs for diverse and multi-function foundry products. Additionally, the next version of the hybrid embedded eFlash process is already under development to extend the voltage capability to 40V. Another type of hybrid process, e-Flash with 40V BCD (Bipolar CMOS DMOS), has been widely accepted in the market. MagnaChip is also developing e-Flash with 120V BCD process to continue to pioneer new markets. These technologies have the potential for broad applications including wireless power chargers, USB type-C PDs, motor driver ICs and BLU driver ICs.

“The second generation 0.13 micron eFlash with high-voltage technology is highly desirable for products requiring both memory and high-voltage, such as wireless power charger ICs, large panel touch ICs and fingerprint ICs,” said YJ Kim, CEO of MagnaChip, “MagnaChip will continue to develop new hybrid technologies to enable our customers to design various products and to stay competitive in the market.”

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with about 40 years of operating history, owns a portfolio of approximately 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

CONTACTS:
United States (Investor Relations):
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com

Magnachip Reports First Quarter 2019 Financial Results

SEOUL, South Korea and SAN JOSE, Calif., April 30, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (NYSE: MX) today announced financial results for the first quarter of 2019.

Q1 2019 Summary
Revenue of $157.4 million exceeded the guidance range of $150-$155 million; revenue down 5.1% Year-over-Year (YoY)
Standard Products Group (SPG) revenue of $100.3 million, up 13.5% YoY
Display Standard Products revenue of $58.2 million, up 17.2%; OLED revenue up 41.4% YoY
Power Standard Products revenue of $42.0 million, up 8.7% YoY
Foundry Services Group (FSG) revenue of $57.1 million, down 26.3% YoY due to a previously disclosed customer inventory correction and a previously announced decision to be more selective about new business as a result of a strategic evaluation of the Foundry business and Fab 4
Total gross profit margin of 14.4% was within the guidance range of 14-16%; gross margin down 12.5 percentage points YoY due primarily to a widely anticipated decline in Foundry fab utilization, and an inventory reserve of $3.3 million related to a legacy display product

Second Quarter 2019 Business Outlook
For the second quarter of 2019, MagnaChip anticipates:
Revenue to be in the range of $173 million to $181 million, up 12.5% at the mid-point of the projected range when compared with revenue of $157.4 million in the first quarter of 2019, and down 11.4% year-on-year when compared to the $199.7 million revenue recorded in the second quarter of 2018. Revenue guidance for the second quarter reflects an expectation that standard product revenue will show double-digit sequential improvement, and Foundry revenue will be flattish as compared to Q1 2019.
Gross profit margin to be in the range of 16% to 18%, as compared to 14.4% in the first quarter of 2019 and 27% in the second quarter of 2018. Gross margin guidance reflects the expectation that fab utilization in the Foundry business has stabilized.

Statement on strategic evaluation of the Foundry business and Fab 4
Chairman of the Board Nader Tavakoli said, “The Board and Company-led strategic evaluation of the Foundry business and Fab 4 that was announced in February is ongoing and supported by our financial advisor, JP Morgan, and legal advisor, Paul, Weiss. The Company intends to provide updates about the strategic evaluation process in a timely manner when meaningful milestones are achieved. As stated previously, the Board is committed to improving MagnaChip’s profitability and unlocking shareholder value. As we proceed with the strategic evaluation of the Foundry business and Fab 4, we will be mindful of the best interests of all of our stakeholders, including shareholders, customers and employees.”

CEO Comments on Q1 business
“Revenue for both OLED and Power standard products achieved the highest levels ever recorded in the first quarter of a year, despite typically weak seasonal trends and a soft China smartphone market.

In the display segment, OLED revenue increased over 41% year over year, and we were awarded six OLED design wins from leading smartphone makers in China. We also commenced volume production of OLED DDICs for mid-range smartphones from a major Korean brand. We added our ninth OLED DDIC with the launch of the industry’s most power-efficient 28-nanometer OLED DDIC, manufactured with the most advanced process technology used for DDICs. We also announced an OLED ecosystem initiative with three companies initially to develop next-generation features to improve the functionality of OLED platform solutions in a wide range of products and markets.

In the Power segment, revenue from Premium products increased nearly 46% from the first quarter a year ago, and accounted for nearly 55% of Power revenue, as compared with 40% in the first quarter of 2018. We also continued to make inroads in the automotive sector, as we commenced shipments of two different high-voltage power standard products to a customer in that market.

Our Foundry revenue and fab utilization both experienced a severe decline in Q1, as was widely anticipated. While the Foundry business will remain weak in Q2, the business has recently showed signs of stabilizing.”

First Quarter Financial Review

Total Revenue
Total revenue in the first quarter of 2019 was $157.4 million, down 5.1% as compared to reported revenue of $165.8 million from the first quarter of 2018, and down 12.3% from $179.4 million in the fourth quarter of 2018.

Segment Revenue
Foundry Services Group revenue in the first quarter was $57.1 million, down 26.3% from the first quarter of 2018, and down 31.3% from the fourth quarter of 2018.

Standard Products Group revenue in the first quarter was $100.3 million, up 13.5% YoY and up 4.2% sequentially. The improved results in the Standard Products Group year-over-year were primarily attributable to a sharp increase in revenue from mobile OLED display driver ICs in connection with the introduction of new OLED smartphones from manufacturers in China and Korea, and an increase in demand for premium Power products such as high-voltage MOSFETS, primarily for TV and industrial applications. The revenue improvement in the Standard Products Group was offset in part by a strategic reduction in demand of low-margin LCD business.

Total Gross Profit and Gross Profit Margin
Total gross profit in the first quarter of 2019 was $22.7 million or 14.4 % as a percentage of revenue as compared with gross profit of $44.6 million or 26.9% in the first quarter of 2018, and $43.9 million or 24.5% in the fourth quarter of 2018.

Segment Gross Profit Margin
Foundry Services Group gross profit margin was 6.4% as compared with 26.7% in the first quarter of 2018 and 23.2% in the fourth quarter of 2018. The Standard Products Group gross profit margin was 19.0% in the first quarter of 2019 as compared with 27.2% in the first quarter of 2018 and 25.6% in the fourth quarter of 2018. The sequential and YoY decline in the Standards Products Group gross profit margin was attributable in part by an additional inventory reserve of $3.3 million related to a legacy display product.

Operating Income, Net Income, Adjusted Net Income, Adjusted EBITDA
Operating loss, on a GAAP basis, for the first quarter of 2019 was $18.3 million, as compared with an income of $7.4 million in the first quarter of 2018 and an income of $7.9 million in the fourth quarter of 2018.

Net loss, on a GAAP basis, was $34.1 million or $1.00 per basic and diluted share in the first quarter of 2019, as compared with net income of $2.8 million or $0.08 per basic and diluted share in the first quarter of 2018, and net loss of $2.4 million or $0.07 per basic and diluted share in the fourth quarter of 2018.

Adjusted Net Loss, a non-GAAP financial measure, totaled $19.9 million or $0.58 per basic and diluted share in the first quarter of 2019, as compared with Adjusted Net Income of $1.4 million or $0.04 per basic and diluted share in the first quarter of 2018, and Adjusted Net Income of $3.5 million or $0.10 per basic and diluted share in the fourth quarter of 2018.

Adjusted EBITDA, a non-GAAP financial measure, in the first quarter of 2019 was negative $5.7 million or negative 3.6% of revenue in the first quarter of 2019, as compared with Adjusted EBITDA of $15.5 million or 9.3% of revenue in the first quarter of 2018, and Adjusted EBITDA of $17.4 million or 9.7% of revenue in the fourth quarter of 2018.

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 MagnaChip’s business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income 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.

Cash and cash equivalents totaled $105.8 million in the first quarter of 2019, down from $132.4 million at the end of the fourth quarter of 2018.

First Quarter 2019 and Recent Company Highlights

MagnaChip announced:

A launch of its 28-nanometer OLED Display Driver IC for smartphone displays, The 28nm process is the most advanced used today for manufacturing OLED DDICs, achieves a form factor reduction of 20 percent compared with the previous 40nm process, has a logic voltage of 1.0V vs. 1.1V in the previous generation, and also is expected to improve call quality by reducing EMI (Electromagnetic Interference) levels by 20 percent as compared to the 40nm DDIC, MagnaChip’s product roadmap includes plans to expand the feature set of OLED DDICs to include Ultra-High Definition (UHD) capabilities.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-launches-28-nanometer-oled-ddic-smartphone-displays

A new initiative to partner with companies in the development of next-generation display features of smartphones and other mobile or handheld consumer electronic devices. MagnaChip intends to develop individual strategic partnerships with leading manufacturers of touch, stylus, fingerprint technologies, and associated OLED display technologies. Each company will collaborate with MagnaChip to develop and standardize innovative human-interface solutions based upon smart touch, stylus and fingerprint technologies that are suitable for MagnaChip’s industry leading OLED DDICs. The goal in each instance will be to improve the functionality of OLED displays on end user devices. There also will be a specified collaboration in shared intellectual property that will extend into new applications, including the IoT and automotive sectors.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-announces-initiative-develop-next-generation-display

A partnership with ELAN Microelectronics Corp. to expand the capabilities for OLED displays for a wide variety of next-generation consumer, communication, computing and industrial products, as well as for automotive displays. The partnership seeks to build upon the recent growth and market penetration of OLED displays in areas such as smartphones, mobile devices, tablets and automotive applications, ranging from navigation and infotainment screens to brake light and interior lighting systems.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-and-elan-microelectronics-announce-partnership-expand

A partnership with HiDeep to develop advanced OLED display capabilities for smartphone makers and other handheld consumer electronics devices. MagnaChip will cooperate with HiDeep to develop enhanced HMI solutions optimized for the growing OLED display market. Specifically, MagnaChip and HiDeep will collaborate and create useful and cost effective new HMI solutions for flexible OLED displays for top-tier panel makers and smartphone OEMs. This collaboration also will extend into a variety of other applications and end markets.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-and-hideep-inc-announce-partnership-develop-enhanced

A partnership with Melfas Inc. to develop advanced OLED display capabilities for the automotive and consumer electronics sectors. Currently, OLED technology is deployed primarily in televisions and mobile products such as smartphones and smartwatches, but MagnaChip and Melfas are working towards developing automotive display-related solutions in an effort to respond to this fast-growing market. With their current solutions, the two companies will initially address opportunities in consumer electronics and, going forward, will work together to develop solutions for OLED displays in automotive applications.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-and-melfas-inc-announce-partnership-collaborate-oled

An offering of second generation 0.13 micron 18V high-voltage process technology to its foundry customers. The technology, which is dedicated for designing source drivers for LCD and OLED televisions, offers fewer steps, allows suitable high-voltage design rules to shrink chip size, and adds a new device for DAC block design, as compared to the first-generation process.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-offers-013-micron-18v-high-voltage-gen2-technology

First Quarter 2019 Conference Call
The conference call will be webcast live today (April 30, 2019) at 5:00 p.m. EDT and also is available by dialing toll-free at 1-844-536-5472. International call-in participants can dial 1-614-999-9318. The conference ID number is 8618428. Participants are encouraged to initiate their calls at least 10 minutes in advance of the 5:00 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com. A replay of the conference call will be available the same day and will run for 72 hours. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056. The access code is 8618428.

About MagnaChip Semiconductor Corporation
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with about 40 years of operating history, owns a portfolio of approximately 3,000 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.

Safe Harbor for Forward-Looking Statements
Information in this release regarding MagnaChip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about our future operating and financial performance, including but not limited to second quarter 2019 revenue and gross profit margin expectations. All forward-looking statements included in this release are based upon information available to MagnaChip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip’s filings with the SEC, including our Form 10-K filed on February 22, 2019 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. MagnaChip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

CONTACTS:
In the United States:
Bruce Entin
Investor Relations
Tel. +1-408-625-1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director, Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com

SEOUL, South Korea and SAN JOSE, Calif., April 16, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor products, announced today that it has launched the 28-nanometer (nm) OLED (Organic Light Emitting Diodes) DDIC (Display Driver IC) for smartphone displays.

The 28nm process is the most advanced process used for manufacturing OLED DDICs today. MagnaChip’s new 28nm OLED DDIC achieves a form factor reduction that is 20 percent smaller than that of the previous 40nm process and is suitable for smartphones and other mobile devices, where small size and thinness are critical factors. In addition, MagnaChip reduced the logic voltage from 1.1V, which was required for the existing 40nm products, to 1.0V, which reduces the current voltage consumption by more than 20 percent and also extends battery life. MagnaChip’s latest 28nm OLED DDIC provides Best-In-Class performance, power and feature with high performance/price value.

With the addition of this new 28nm platform OLED DDIC, MagnaChip now has developed a portfolio of nine advanced platform OLED Display Driver ICs, including one 110nm rigid bezel-less, two 55nm flexible bezel-less and five 40nm rigid bezel-less OLED DDICs. MagnaChip’s product roadmap includes plans to expand the feature set of OLED DDICs to include Ultra-High-Definition (UHD) capabilities.

The 28nm OLED display driver IC also is expected to improve the call quality of smartphones by reducing EMI (Electromagnetic Interference) levels by 20 percent, as compared to existing products based on the 40nm format. The 28nm new OLED driver IC supports various display types such as rigid, flexible, foldable and VR, AR applications. It also maximizes design flexibility for latest full-screen displays, such as bezel-less, hole type displays. This new display driver already has won its first design-in at a leading smartphone manufacturer.

YJ Kim CEO of MagnaChip said: “By launching the 28nm OLED DDIC, we have demonstrated again our world-class technology and expect it will help mobile device manufacturers develop new generations of smaller and more energy-efficient products with crisp displays. Further, MagnaChip plans to extend its DDIC portfolio from current OLED smartphones to the rapidly growing OLED TV, OLED automotive and MicroLED TV applications, as well as foldable smartphones.”

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with about 40 years of operating history, owns a portfolio of approximately 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

CONTACTS:
United States (Investor Relations):
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com

SEOUL, South Korea and SAN JOSE, Calif., April 11, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor products, and Melfas Inc., a leading provider of proven touch controller ICs and touch screen / touch key modules based on capacitive touch sensing technologies, today announced a partnership to develop advanced OLED display capabilities for the automotive and consumer electronics sectors.

Currently, OLED technology is deployed primarily in televisions and mobile products such as smartphones and smartwatches, but OLED displays represent an attractive growth opportunity. Industry forecasters expect the segment to show compounded annual growth rate (CAGR) of 187% between 2018 and 2022. Accordingly, MagnaChip and Melfas are working towards developing automotive display-related solutions in an effort to respond to this fast-growing market. With their current solutions, the two companies will initially address opportunities in consumer electronics and, going forward, will work closely together to develop solutions for OLED displays in automotive.

MagnaChip is the leading independent provider of OLED DDICs, and benefits from long relationships with the top two OLED display panel makers in the world. Further, more than a dozen smartphone OEMs currently use MagnaChip’s OLED DDICs in their smartphone lineups. Over the past 10 years, MagnaChip has shipped more than 400 million OLED DDICs, and developed a broad portfolio of patents related to the design and manufacturing of OLED display drivers.

Melfas has many years of technical experience and expertise in touch controller IC. Backed by its strong expertise in the field, Melfas has been constantly offering precise, responsive, and reliable touch solutions for highly innovative and dynamic smartphones and other mobile devices. It has shipped over 1 billion controller ICs since 2005. Further, Melfas recently launched a new OLED touch controller IC and has since supplied the same in large quantities to major handset manufacturers.

“Automotive display is an attractive market segment, and this partnership with Melfas will provide opportunities to develop feature-rich and cost-effective products,” said YJ Kim, Chief Executive Officer of MagnaChip.

About Melfas Inc.
MELFAS Inc. is a company that has built expertise in touch solutions. Melfas develops and supplies the world best touch controller ICs and touchscreen / touch key modules based on the capacitive touch sensing technologies Melfas has acquired for more than a decade. Capacitive touch sensing technology recognizes input location and movement by sensing capacitance variation generated in touchscreen module by a fingertip or stylus. When this technology is applied to touchscreen display, it produces excellent results such as multi-touch recognition, soft gesture recognition, outstanding durability and high light transmissivity; all these strengths are widely acknowledged. Capacitive touch solutions provided by MELFAS are materialized in the form of touchscreen or touch key for various products, including smartphone, feature phone, tablet PC, monitor, digital camera, MP3 player, and PMP. The areas of application are rapidly expanding.

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with about 40 years of operating history, owns a portfolio of approximately 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visithttps://www.magnachip.com/ www.magnachip.com.

CONTACTS

MagnaChip:
United States (Investor Relations):
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

USA media / industry analysts:
LouVan Communications, Inc.
Mike Newsom
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Director of Public Relations
Chankeun Park
Tel. +82-2-6903-5223
chankeun.park@magnachip.com

Melfas Inc:
Youngho Seo
Tel. +82-70-4055-6017
youngho.seo@melfas.com

SEOUL, South Korea and SAN JOSE, Calif., April 10, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX) announced today it will host a conference call on Tuesday, April 30, 2019 at 5 p.m. EST to discuss the Company’s financial results for the first quarter of 2019. Participating in the call will be YJ Kim, MagnaChip’s CEO and Jonathan Kim, Executive Vice President and CFO. The earnings press release will be issued after the market closes that day.

The conference call will be webcast live and also is available by dialing toll-free at 1-844 536 5472. International call-in participants can dial 1-614-999-9318. The conference ID number is 8618428. Participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com.

A replay of the conference call will be available the same day and will run for 72 hours. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056. The access code is 8618428.

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group and Foundry Services Groups provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with over 30 years of operating history, owns a portfolio of approximately 3,000 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.

CONTACTS:

In the United States:
Bruce Entin
Investor Relations
Tel. +1.408.625.1262
Investor.relations@magnachip.com

In Korea:
Chankeun Park
Director, Public Relations
Tel. +82.2.6903.3195
chankeun.park@magnachip.com

MagnaChip and HiDeep Inc. to Combine Advanced OLED Display and UX / UI Technologies to Create Innovative and Lower-Cost Designs

 

SEOUL, South Korea and SAN JOSE, Calif., April 10, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor products, and HiDeep Inc., a leading one stop Human Machine Interface (HMI) solutions provider, which offers HMI sensor hardware, semiconductors, and software including UX and UI capabilities, today announced a partnership to develop advanced OLED display capabilities for manufacturers of smartphones and other handheld consumer electronics.

MagnaChip will cooperate with HiDeep to develop enhanced HMI solutions optimized for the growing OLED display market. Specifically, MagnaChip and HiDeep will collaborate and create useful and cost-effective new HMI solutions for flexible OLED displays for top tier panel makers and smartphone OEMs. This collaboration also will extend into a variety of other applications and end markets.

MagnaChip is the leading independent provider of OLED DDICs, and benefits from long relationships with the top two display panel makers in the world. Further, more than a dozen smartphone OEMs currently use MagnaChip’s OLED DDICs in their smartphone lineups. Over the past 10 years, MagnaChip has shipped more than 400 million OLED DDICs and developed a broad portfolio of patents related to the design and manufacturing of OLED display drivers.

HiDeep is a leading provider of HMI solutions. HiDeep’s products include 2D touch solutions for on-cell flexible OLED displays for smartphones and tablets, 3D force touch solutions for smartphones and other applications, passive stylus solutions including palm-rejection capabilities for leading tablet and for educational OEMs, and active stylus solutions for tablets including the world’s first single chip solution to support MPP2.0 and USI 1.0 protocols. HiDeep is one of the few vendors worldwide to have shipped in volume 3D force touch solutions to leading Android smartphone OEMs. HiDeep has developed a large IP portfolio across all its solutions.

“Smartphones featuring OLED displays are expected by industry forecasters to account for about half of the market by 2021, and that growth from about 30% in 2018 will provide development opportunities for our partnership with HiDeep,” said YJ Kim, Chief Executive Officer of MagnaChip. “For example, HiDeep is a provider of HMI Technology for smartphones and we believe HiDeep’s advanced IC technology can work with our leading DDIC technology to create interesting new human machine interface capabilities for OLED displays.”

About HiDeep Inc.
HiDeep, Inc., founded in April 2010, is a leading one stop HMI solutions provider, which offers HMI sensor hardware, semiconductors, and software including UX and UI capabilities, for smartphones and tablets. HiDeep provides a complete one-stop solution for Android smartphone OEMs to easily integrate HiDeep’s game-changing 3D force touch technology into their products. HiDeep’s offerings include 2D/3D controller chips integrated with patented algorithms, capacitive sensors to detect pressure levels, and comprehensive design & production expertise.

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with about 40 years of operating history, owns a portfolio of approximately 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

CONTACTS

MagnaChip:
United States (Investor Relations):
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com

HiDeep Inc.:
United States:
Deepak Chugh
Global Alliances & Partnerships
Tel. +1-971-226-7700
Deepak.chugh@hideep.com

Korea / Asia media:
Edward Bach
Vice President
Tel. +82-10-5245-6034
edward.bach@hideep.com

Strategic Partnerships with Industry Leaders to Combine Best-in-Class OLED Display with Touch, Stylus and Fingerprint IC Technologies to Create Innovative and Lower-Cost Designs

 

SEOUL, South Korea and SAN JOSE, Calif., April 9, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor products, announced today a new initiative to partner with companies in the development of next-generation display features of smartphones and other mobile or handheld consumer electronics devices. MagnaChip intends to develop individual strategic partnerships with leading manufacturers of touch, stylus, fingerprint technologies, and associated OLED display technologies.

Each of these companies will collaborate with MagnaChip to develop and standardize innovative human-interface solutions based upon smart touch, stylus and fingerprint technologies that are suitable for MagnaChip’s industry leading OLED display driver integrated circuits (DDIC). The goal in each instance will be to improve the functionality of OLED displays on end user devices. Further, there will be a specified collaboration in shared intellectual property that will extend into new applications, for instance in the IoT and automotive sectors.

MagnaChip is the leading independent provider of OLED DDICs, and benefits from long relationships with the top two display panel makers in the world. Further, more than a dozen smartphone OEMs currently use MagnaChip’s OLED DDICs in their smartphone lineups. Over the past 10 years, MagnaChip has shipped more than 400 million OLED DDICs and developed a broad portfolio of patents related to the design and manufacturing of OLED display drivers.

With various market forecasts predicting OLED smartphones to account for more than 50 percent of all smartphones by 2021, the initiative has the potential to expand market-related business opportunities for each member, benefit consumers by offering “best-of-class” display features, and to make OLED the display technology of choice for screens in a wide range of consumer electronics products.

“The series of strategic ecosystem partnerships will create a new de facto OLED display ecosystem that can help us better identify customer needs and develop best-in-class products,” said YJ Kim, Chief Executive Officer of MagnaChip. “Further, by working together, we can achieve innovative and high performance OLED platform solutions, shorten the OLED platform validation cycle, hence reduce “design-in” costs for smartphone and other mobile solutions.”

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with about 40 years of operating history, owns a portfolio of approximately 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

CONTACTS:
United States (Investor Relations):
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com

MagnaChip’s New Industry Initiative Targets Applications in Smartphones and Mobile Devices and Computing, Industrial and Automotive Segments

SEOUL, South Korea and SAN JOSE, Calif., April 9, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor products, and ELAN Microelectronics Corp. (TWSE:ELAN), an industry leader in the development of Smart Human Machine Interface (HMI) applications, including capacitive touchscreen controllers, capacitive  trackpads, and fingerprint sensors, today announced a partnership to expand the capabilities of OLED displays for a wide variety of next-generation consumer, communication, computing and industrial products, as well as for automotive displays.

The partnership seeks to build upon the recent growth and market penetration of OLED displays in areas such as smartphones, mobile devices, tablets and automotive applications, ranging from navigation and infotainment screens to brake light and interior lighting systems.  OLED technology enables screens to display rich and highly saturated colors while emitting low power consumption. Flexible OLED display driver ICs (DDIC) enable curved screens for smartphones, tablets and other devices.

Further, customer demand for stylus input on screens continues to grow and MagnaChip, as the world’s largest independent volume provider of OLED DDIC components, with more than 400 million units shipped, will collaborate in seeking to bring ELAN’s stylus technologies to both rigid and flexible OLED Displays through this partnership.  Currently, ELAN supports pen protocols defined by Microsoft, Wacom, and Huawei and has enabled stylus features on smartphones, tablets, and Notebook PCs for Out-Cell, On-Cell and In-Cell LCDs.  MagnaChip believes it will enhance its leadership position in OLED DDIC by co-developing with ELAN new protocols with advanced features for the future.

Specifically, MagnaChip expects the collaboration with ELAN to improve its OLED DDIC technologies for next-generation applications by supporting ELAN’s development of de facto industry standard stylus solutions optimized for its OLED display drivers.

“By working with MagnaChip we believe we can develop optimized OLED display solutions that can become de-facto industry standards,” said I. H. Yeh, Chairman and CEO of ELAN Microelectronics.  “OLED displays across multiple product sectors have shown impressive growth in recent years and we believe integrating our advanced fingerprint and touch IC technology with OLED DDIC technology will create compelling benefits for consumer and industrial product manufacturers. It is my honor that MagnaChip, the largest independent supplier of OLED DDIC, and ELAN, the leader in stylus touch controllers, can collaborate to bring advanced stylus features to the world of OLED.”

“By working with industry leaders such as ELAN, our goal is to create combined hardware offerings that provide industry leading product features and benefits for our customers,” said YJ Kim, CEO of MagnaChip Semiconductor.  “And by collaborating with other industry leaders as part of our broader industry initiative, we believe MagnaChip can help accelerate product innovation, shorten time to market, and provide compelling OLED display solutions to the consumer, communications, computing, industrial and automotive markets.”

About ELAN Microelectronics Corporation
ELAN Microelectronics Corporation is an IC design house founded in May of 1994 to embark in the R&D of integrated circuit and offers touchpad module solutions. ELAN’s headquarters is located in Taiwan Hsinchu Science Park, and has its touchpad module factory located in Chung Ho City, Taipei County. It also has branch offices and customer service centers in the USA, Shenzhen (China), Shanghai, and Hong Kong. ELAN is listed in the Taiwan Stock Exchange since September 2001 and as of this date, its capital has accumulated to NTD 3039M. For more information, please visit www.emc.com.tw.

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with about 40 years of operating history, owns a portfolio of approximately 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

CONTACTS

MagnaChip:

United States (Investor Relations):

Bruce Entin

Entin Consulting

Tel. +1-408-625-1262

Investor.relations@magnachip.com

USA media / industry analysts:

Mike Newsom

LouVan Communications, Inc.

Tel. +1-617-803-5385

mike@louvanpr.com

Korea / Asia media:

Chankeun Park

Director of Public Relations

Tel. +82-2-6903-5223

chankeun.park@magnachip.com

 

ELAN Microelectronics:

Headquarters (Investor Relations):

Dennis Liu

Spokesperson & Director

Tel: +886-3-5639977

addldm@emc.com.tw

SEOUL, South Korea and SAN JOSE, Calif., Feb. 18, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor products, announced today it now offers foundry customers its second generation 0.13 micron 18V high voltage process technology. The technology, which is dedicated for designing source drivers for LCD and OLED televisions, offers fewer steps, allows suitable high voltage device design rules to shrink chip size and adds a new device for DAC block design compared to the first generation process.

The source driver IC is the main driver IC in a television that controls signals and converts data from the timing controller into proper analog signals, and then transfers them to LCD or OLED panels. To support high definition for LCD and OLED panels, low power consumption and super slim designs for those panels, source driver ICs increasingly requires additional channels and rapid transmission speeds. To address these new market demands, MagnaChip’s Foundry Services Group has developed its second generation 18V high voltage process technology to improve and enhance source driver ICs in speed and integration.

This second generation process has improved 1.8V device current performance for high speed. Furthermore, it added LHL (Logic High-Voltage Logic), Vgs=18V, Vds=1.8V, device suitable for DAC (Digital to Analog Converter) block designs to the prior device list (1.8V, 9V and 18V). It enables highly integrated designs by applying the same design rules for both top and internal metals. MagnaChip has also advanced high voltage device design rules to achieve approximately a seven-percent reduction in chip size. Additionally, MagnaChip is simplifying all its platform technologies to enhance its process competitiveness. The second generation process eliminated two process steps to achieve competitive number of process steps in the industry. Moreover, it offers various option modules including MIMs, resistors, BJTs and capacitors, and designers will be able to conveniently choose from these options that suit their design needs and specifications.

MagnaChip also offers diverse high voltage from 9V to 45V processes required to produce LDDIs (Large Display Driver ICs) and MDDIs (Mobile Display Driver ICs). With expertise from more than 17 years of experience in mass production of driver ICs for laptops, tablets, monitors, TVs, smart phones and other various applications, MagnaChip continues to develop high performance and cost effective processes to strengthen its high voltage process portfolio.

“The second generation 0.13 micron 18V high voltage process technology is dedicated for high performance source driver IC for LCD and OLED TVs,” said MagnaChip CEO YJ Kim. “We will continue to improve the performance of our high voltage technology to lead the high voltage sector and help our customers stay competitive in the market.”

About MagnaChip Semiconductor
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with over 30 years of operating history, owns a portfolio of more than 3,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

CONTACTS:

United States (Investor Relations):
Bruce Entin
Entin Consulting
Tel. +1-408-625-1262
Investor.relations@magnachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Chankeun Park
Director of Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com

SEOUL, South Korea and SAN JOSE, Calif., Feb. 14, 2019 /PRNewswire/ — MagnaChip Semiconductor Corporation (NYSE: MX) today announced financial results for the fourth quarter and full year 2018. Revenue in the fourth quarter was $179.4 million and gross profit margin was 24.5%. For the year 2018, revenue was $750.9 million and gross margin was 26.4%.

MagnaChip also announced today that it has undertaken a strategic evaluation of the Company’s Foundry business and Fab 4, the larger of the Company’s two 8″ manufacturing facilities. Fab 4 is an analog and mixed signal fab that produces approximately 73% of the Company’s total capacity, and is used primarily to meet wafer demand from Foundry customers that rely on outside suppliers. The strategic evaluation is expected to include a range of possible options, including, but not limited to, joint ventures, strategic partnerships as well as M&A possibilities. The Company has retained financial and legal advisors to assist in the evaluation.

Nader Tavakoli, Chairman of the Board of MagnaChip, said, “The Board is committed to improving MagnaChip’s profitability and unlocking shareholder value. As we undertake this strategic evaluation of the Foundry business, we will be mindful of the best interests of all of our stakeholders including shareholders, customers and employees.”

In commenting on the Company’s financial performance in Q4, YJ Kim, CEO of MagnaChip, said, “We are pleased to have met our revenue guidance in the seasonally soft fourth quarter despite a challenging macroeconomic backdrop, a slowdown in China, and an inventory correction by customers.”

In commenting on the 2018 financial results, Mr. Kim said, “Our OLED and Power businesses both had record annual revenue in 2018 and are positioned for success in 2019 due to a strong product lineup, robust product roadmap and well-established customer traction. Higher-margin Premium Power products represented over 45% of total Power revenue in Q4, due mainly to growth in the industrial, television, and lighting markets. In the OLED business, MagnaChip secured new design wins for display driver ICs from China smartphone makers and three design wins from a major smartphone maker in Korea for a line of mid-range smartphones. Our latest and lowest-power 28 nanometer OLED display driver IC will sample at the end of this month, and we anticipate volume production in the second half of this year.” Mr. Kim added, “Our foundry business under-performed in Q4 2018 on an “as adjusted” basis, due in part to an inventory correction by customers that caused a drop in utilization in Fab 4. We expect utilization in Fab 4 will decline significantly further in the first half of 2019, due in part to a continuing inventory correction and our decision to be more selective about business as we undergo our strategic evaluation process.”

Q4 2018 Summary
Revenue of $179.4 million within guidance range of $174-$184 million; revenue up 2.8% Year-over-Year (YoY)
Standard Products Group revenue of $96.3 million up 2.5% YoY on an “as reported” basis; up 14.3% on an “as adjusted” basis
Foundry Services Group revenue of $83.1 million up 3.1% YoY on an “as reported” basis; down 8.0% on an “as adjusted” basis
Record Power standard products revenue of $46.1 million; up 14.6% YoY
Total gross profit margin of 24.5% was below the guidance range of 25-27%; gross margin down 3.8 percentage points YoY primarily due to lower Foundry-related fab utilization and increased costs for wafers
Operating income of $7.9 million, or 4.4% of revenue, up 2.9% YoY and Net Loss, on a GAAP basis, of $2.4 million, down 105.5% YoY
Adjusted EBITDA of $17.4 million, or 9.7% of revenue, down 15.4% YoY

Full Year 2018 Summary
Revenue of $750.9 million, up 10.5% YoY
Record OLED revenue of $188.0 million, up 3-fold YoY
Record Power revenue of $169.3 million, up 13.0% YoY
Foundry revenue of $325.3 million, up 1.6% YoY on an “as reported” basis; down 7.2% on an “as adjusted” basis
Gross margin of 26.4% declined by 1.2 percentage points YoY primarily due to lower Foundry-related fab utilization

First Quarter 2019 Business Outlook
For the first quarter of 2019, MagnaChip anticipates:
Revenue in this seasonally soft quarter to be in the range of $150 million to $155 million, down sequentially about 15.0% at the mid-point of the projected range. The guidance for the first quarter of 2019 compares with revenue of $179.4 million in the fourth quarter of 2018, and $165.8 million in the first quarter of 2018.
Gross profit margin to be in the range of 14% to 16%. This compares to 24.5% in the fourth quarter of 2018, and 26.9% in the first quarter of 2018.

Both revenue and gross profit margin guidance reflect a downturn in the Foundry business due in part to a continuing inventory correction and the Company’s decision to be more selective about business as it undergoes a strategic evaluation process.

Fourth Quarter Financial Review

Total Revenue
Total revenue in the fourth quarter of 2018 was $179.4 million, up 2.8% as compared to reported revenue of $174.6 million from the fourth quarter of 2017, and down 12.9% from $206.0 million in the third quarter of 2018.

Segment Revenue and Segment Adjustments
In January 2018, as part of our ongoing portfolio optimization effort to realign business processes and streamline our organizational structure, we transferred a portion of our non-OLED display solutions business (“Transferred Business”), which represented $13.4 million of net sales for Q4 2018 and $33.0 million of net sales for the 2018 year, from our Standards Products Group to our Foundry Services Group. The corresponding non-OLED display business represented $30.3 million of net sales for the year ended December 31, 2017. As a result, the historical financial results in the tables below are discussed both on an “as reported” basis, which presents the Transferred Business in the Standards Products Group results, and “as adjusted” basis, which presents the Transferred Business in the Foundry Services Group results, for comparative purposes.

Foundry Services Group revenue in the fourth quarter was $83.1 million, up 3.1%, on an “as reported” basis from the fourth quarter of 2017, and down 0.9% from $83.9 million in the third quarter of 2018; and on an “as adjusted” basis, down 8.0% from $90.3 million in the fourth quarter of 2017.

Following the strategic realignment and portfolio optimization discussed above, Standard Products Group revenue in the fourth quarter was $96.3 million, up 2.5% year-over-year on an “as reported” basis, and down 21.1% sequentially; and on an “as adjusted” basis, up 14.3% year-over-year.

The improved results in the Standard Products Group year-over-year were primarily attributable to a sharp increase in revenue from mobile OLED display driver ICs in connection with the introduction of new OLED smartphones from China manufacturers, which was offset in part by a strategic reduction of low-margin LCD business. In addition, the increase was also attributable to a higher demand for premium Power products such as high-end MOSFETs and IGBTs, primarily for TV and industrial applications.

Total Gross Profit and Gross Profit Margin
Total gross profit in the fourth quarter of 2018 was $43.9 million or 24.5% as a percentage of sales as compared with gross profit of $49.4 million or 28.3% in the fourth quarter of 2017, and $55.7 million or 27.1% in the third quarter of 2018.

Segment Gross Profit Margin
Foundry Services Group gross profit margin was 23.2% in the fourth quarter of 2018 as compared with, on an “as reported” basis, 31.7% in the fourth quarter of 2017 and 24.4% in the third quarter of 2018. The Foundry Services Group gross profit margin was, on an “as adjusted” basis, 30.4% in the fourth quarter of 2017. The Standard Products Group gross profit margin was 25.6% in the fourth quarter of 2018 as compared with, on an “as reported” basis, 25.3% in the fourth quarter of 2017, and 28.8% in the third quarter of 2018. The Standard Products Group gross profit margin was, on an “as adjusted” basis, 25.9% in the fourth quarter of 2017.

Operating Income, Net Income, Adjusted Net Income, Adjusted EBITDA
Operating income, on a GAAP basis, for the fourth quarter was $7.9 million as compared with $7.6 million in the fourth quarter of 2017 and $18.3 million in the third quarter of 2018.

Net loss, on a GAAP basis, for the fourth quarter was $2.4 million or $0.07 cents per basic and diluted share as compared with net income of $43.7 million or $1.28 per basic share and $0.99 per diluted share in the fourth quarter of 2017, and net income of $17.2 million or $0.50 per basic share and $0.41 per diluted share in the third quarter of 2018.

Adjusted Net Income, a non-GAAP financial measure, for the fourth quarter of 2018 totaled $3.5 million or $0.10 per basic share and $0.10 per diluted share, as compared with Adjusted Net Income of $9.1 million or $0.27 per basic share and $0.23 per diluted share in the fourth quarter of 2017, and compared with Adjusted Net Income of $13.3 million or $0.38 per basic share and $0.32 per diluted share in the third quarter of 2018.

Adjusted EBITDA, a non-GAAP financial measure, in the fourth quarter was $17.4 million or 9.7% of revenue as compared with Adjusted EBITDA of $20.5 million or 11.8% of revenue in the fourth quarter of 2017, and compared with Adjusted EBITDA of $27.9 million or 13.5% of revenue in the third quarter of 2018.

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 MagnaChip’s business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income 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.

Cash and cash equivalents totaled $132.4 million at the end of the fourth quarter, slightly down from $133.5 million at the end of the third quarter of 2018.

Note: The following table sets forth information relating to our operating segments (in thousands). The historical amounts below are presented both on an “as reported” and “as adjusted” basis to show the impact of the strategic realignment and transfer of a portion of the non-OLED Display business from the Standard Products Group to the Foundry Services Group beginning in the first quarter of 2018:

Fourth Quarter 2018 and Recent Company Highlights

MagnaChip announced:

The introduction of a new High-Voltage Super Junction MOSFET with a 900V breakdown voltage and low total gate charge (Qg). The device with two package types, I-PAK and D-PAK, will be manufactured in high volume in the first quarter of 2019. https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=223&page=1

Volume production of a new Display Driver IC (DDIC) for automotive panel displays has commenced. MagnaChip is planning to expand its business to various automotive display applications, starting with the design-win of a new product at a leading Japanese panel maker of automotive CSD (Center Stack Display) panels. The application of this LCD-based display driver product will be further extended to a wide range of automotive applications such as instrument cluster, GPS navigation and car entertainment displays in the future. Over time, it is widely anticipated that OLED display drivers also will be adopted for use in automotive applications.
https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=224&page=1

Appointment of Jeong Ki Min to the newly created position of Chief of Strategic Planning. Mr. Min, a seasoned semiconductor executive with 33 years of global business experience, previously held senior positions at Samsung Semiconductor, Samsung Electronics, Samsung Display, and SK Telecom. During his more than three decades in the high-tech industry, Mr. Min has initiated and negotiated high-profile joint venture agreements, strategic alliances and acquisitions. Among his other accomplishments, Mr. Min also has led new business planning teams, managed R&D operations, led Foundry marketing teams, and helped develop semiconductor growth strategies.
https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=226&page=1

It now offers Foundry customers a 0.18 micron BCD (Bipolar-CMOS-DMOS) 200V high-voltage process. This new BCD process uses SOI (Silicon On Insulator) substrates with solid high-voltage isolation and extends MagnaChip’s existing BCD processes from 100V to 200V. Having 200V devices in a BCD process is valuable because it enables a Power IC to be designed for high voltage applications, including automobiles, electrical vehicles, industrial motor drivers, ultrasonic medical imaging systems and solar panels. https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=227&page=1

Volume production has commenced for an IGBT product for power module targeted to high-voltage industrial applications. IGBT is one of a MagnaChip family of Power standard products called Insulated Gate Bipolar Transistors.The new IGBT P-series (“MBW100T120PHF”) allows designers to operate devices at an improved switching frequency, which enables reducing the size and cost of capacitors and inductive devices in circuits. https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=228&page=1

The appointment of Nader Tavakoli as its new non-executive Chairman of the Board of Directors, effective November 26, 2018. Mr. Tavakoli replaces Gary Tanner as the Company’s Chairman. Mr. Tanner will remain a Director on the Board and will continue to serve as a member of the Audit, Compensation and Risk Committees of the Board. Mr. Tanner joined MagnaChip’s Board in August 2015, and has served as its non-executive Chairman since October 2016. Mr. Tavakoli has served on MagnaChip’s Board of Directors since 2009. He has served on, and chaired, various committees of the Board, and is currently a member of the Audit, Compensation and Risk Committees. Mr. Tavakoli is the Chief Executive Officer of Cobalt International Energy and serves as a Plan Administrator of MF Global Inc.https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=229&page=1

The release of a low noise, low power consumption, fast transient LDO (Low Dropout) regulator that also can be designed into BGA (Ball Grid Array) SSD (Solid State Drive) components commonly used in mobile devices. An LDO regulator is a power standard product whose function can be designed into various components. https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=230&page=1

Availability of its third generation 0.18 micron Bipolar-CMOS-DMOS (BCD) process technology for Foundry customers. The technology is highly suitable for PMIC, DC-DC converters, battery charger ICs, protection ICs, motor driver ICs, LED driver ICs and audio amplifiers. https://www.magnachip.com/aboutus/aboutus_sub12_view.html?tname=ez_Press_Room_e&seq=231&page=1.

Fourth Quarter 2018 Conference Call
The conference call will be webcast live today (February 14, 2019) at 5:00 p.m. EST and also is available by dialing toll-free at 1-844 536 5472. International call-in participants can dial 1-614-999-9318. The conference ID number is 9483865. Participants are encouraged to initiate their calls at least 10 minutes in advance of the 5:00 p.m. EST start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com. A replay of the conference call will be available the same day and will run for 72 hours. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056. The access code is 9483865.

About MagnaChip Semiconductor Corporation
MagnaChip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with over 30 years of operating history, owns a portfolio of approximately 3,000 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.

Safe Harbor for Forward-Looking Statements
Information in this release regarding MagnaChip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about our future operating and financial performance, including first quarter 2019 revenue and gross profit margin expectations. All forward-looking statements included in this release are based upon information available to MagnaChip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip’s filings with the SEC, including our Form 10-K filed on February 22, 2018 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. MagnaChip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

CONTACTS:

In the United States:
Bruce Entin
Investor Relations
Tel. +1-408-625-1262

Investor.relations@magnachip.com
In Korea:
Chankeun Park
Director, Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com