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Revenue of $71.2 million was within our guidance range. The year-over-year and sequential decline were primarily driven by the supply shortages of OLED wafers in the 2^nd half of this year that impacted design-in projects from our large panel customer in Korea.
Gross profit margin was 24.2%, below the low end of our guidance range as we recorded a $3.3 million charge to scrap 12-inch wafers as a result of slowing demand caused by elevated smartphone inventories in China.
GAAP diluted loss per share was $0.38.
Non-GAAP diluted earnings per share was $0.02.

SEOUL, South Korea, Nov. 2, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the third quarter of 2022.

(PRNewsfoto/Magnachip Semiconductor) Commenting on the results for the third quarter of 2022, YJ Kim, Magnachip’s chief executive officer stated, “Our Q3 revenue of $71.2 million was within our guidance range. As we mentioned last quarter, our Display business in the 2^nd half is impacted by supply shortages of 28nm 12-inch OLED wafers that impacted design-in projects from our large panel customer in Korea, which are typically given in advance based on future wafer supply allocation. In addition, China covid lockdowns and the dramatic slowdown in consumer spending due to inflationary pressures reduced demand for smartphones and TVs and resulted in an oversupply of channel inventories, particularly in China. Our Power business also slowed due to lower consumer spending.”

YJ Kim continued, “While the global economic situation remains challenging, our balance sheet is strong, and we are focused on executing a recovery of our Display business. During the quarter, we successfully released our new OLED DDIC sample to our new panel customer and we expect to begin mass production in 2023. In addition, due to the global economic slowdown, we are seeing more wafer capacity availability and we are in discussion with multiple foundries to secure capacity and believe that our 2023 wafer supply will be more than two times higher than 2022. As such, we expect to see a significant recovery of Display business in 2023.”

Q3 2022 Financial Highlights


	In thousands of U.S. dollars, except share data
	GAAP
	Q3 2022			Q2 2022			Q/Q change				Q3 2021			Y/Y change
Revenues
Standard Products Business
Display Solutions		6,355			28,336			down	77.6 %			58,528			down	89.1	%
Power Solutions		56,416			62,952			down	10.4 %			58,887			down	4.2	%
Transitional Fab 3 foundry services⁽¹⁾		8,428			10,088			down	16.5 %			9,585			down	12.1	%
Gross Profit Margin		24.2	%		28.6	%		down	4.4	%pts		36.7	%		down	12.5	%pts
Operating Income (Loss)		(10,008)			2,002			down	n/a			20,001			down	n/a
Net Income (Loss)		(17,195)			(3,340)			down	n/a			10,768			down	n/a
Basic Earnings (Loss) per Common Share		(0.38)			(0.07)			down	n/a			0.23			down	n/a
Diluted Earnings (Loss) per Common Share		(0.38)			(0.07)			down	n/a			0.23			down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q3 2022			Q2 2022			Q/Q change				Q3 2021			Y/Y change
Adjusted Operating Income (Loss)		(6,646)			4,787			down	n/a			22,691			down	n/a
Adjusted EBITDA		(2,995)			8,525			down	n/a			26,361			down	n/a
Adjusted Net Income		1,097			10,567			down	89.6 %			20,073			down	94.5 %
Adjusted Earnings per Common Share—Diluted		0.02			0.23			down	91.3 %			0.42			down	95.2 %

___________
(1)	Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, and for a period of up to three years, we will provide transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi (“Transitional Fab 3 Foundry Services”). Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products display solutions and power solutions business lines.
(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 income (loss) or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q4 2022 Financial Guidance
The Company’s near-term outlook is being challenged by previous OLED wafer allocation constraints that impacted 2^nd half design-in projects, elevated smartphone channel inventories, a pushout of the initial mass production ramp of our new OLED customer and weakening demand in consumer end markets on growing recession fears and cost increases, including labor, due to inflationary pressures. In addition, we estimate our Q4 revenue will be further negatively impacted by approximately $5 million of foreign exchange hedging instruments. While actual results may vary, looking into the next quarter, Magnachip currently expects:

Revenue to be in the range of $57 million to $62 million, including about $7 million of Transitional Fab 3 Foundry Services.
Gross profit margin to be in the range of 26 % to 28%.

Q3 2022 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, November 2, 2022, 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.

Online registration: https://register.vevent.com/register/BIccd8bcc64c4a4092bc5e11273a22e8f2

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 2022 revenue and gross profit margin expectations, and the impact of market conditions associated with inflation and rising interest rates, the COVID-19 pandemic or the emergence of various variants of the virus, geopolitical conflict between Russia and Ukraine, and escalated trade tensions and supply constraints on Magnachip’s fourth quarter 2022 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the COVID-19 pandemic or the emergence of various variants of the virus or other outbreaks of disease, and governmental lock-downs or other measures implemented in response thereto, and the Russia-Ukraine conflict; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely design acceptance by our customers; timely introduction of new products and technologies; ability to ramp new products into volume production; industry wide shifts in supply and demand for semiconductor products; industry and/or company overcapacity; effective and cost efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses which can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors, including those related to the Russia-Ukraine conflict; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic or the emergence of various variants of the virus; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic or the emergence of various variants of the virus that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on February 23, 2022 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

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

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

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

	Three Months Ended			Nine Months Ended
	September 30, 2022	June 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021
Revenues:
Net sales – standard products business	$ 62,771	$ 91,288	$ 117,415	$ 248,069	$ 333,589
Net sales – transitional Fab 3 foundry services	8,428	10,088	9,585	28,599	30,306

Total revenues	71,199	101,376	127,000	276,668	363,895
Cost of sales:
Cost of sales – standard products business	45,497	63,620	71,641	165,197	221,297
Cost of sales – transitional Fab 3 foundry services	8,477	8,811	8,772	26,305	27,659

Total cost of sales	53,974	72,431	80,413	191,502	248,956

Gross profit	17,225	28,945	46,587	85,166	114,939
Gross profit as a percentage of standard products business net sales	27.5 %	30.3 %	39.0 %	33.4 %	33.7 %
Gross profit as a percentage of total revenues	24.2 %	28.6 %	36.7 %	30.8 %	31.6 %
Operating expenses:
Selling, general and administrative expenses	11,411	12,736	12,550	38,310	39,185
Research and development expenses	13,321	13,410	12,270	38,685	39,015
Merger-related costs	—	—	1,552	—	13,842
Other charges, net	2,501	797	214	3,298	3,360

Total operating expenses	27,233	26,943	26,586	80,293	95,402

Operating income (loss)	(10,008)	2,002	20,001	4,873	19,537
Interest expense	(278)	(499 )	(113)	(888)	(1,239)
Foreign currency loss, net	(12,809)	(7,012 )	(7,579)	(20,511)	(12,000 )
Other income, net	1,958	1,272	1,608	4,163	2,839

Income (loss) before income tax expense	(21,137)	(4,237 )	13,917	(12,363)	9,137
Income tax expense (benefit)	(3,942)	(897 )	3,149	(1,356)	6,040

Net income (loss)	$ (17,195)	$ (3,340 )	$ 10,768	$ (11,007)	$ 3,097

Basic earnings (loss) per common share—	$ (0.38)	$ (0.07 )	$ 0.23	$ (0.24)	$ 0.07
Diluted earnings (loss) per common share—	$ (0.38)	$ (0.07 )	$ 0.23	$ (0.24)	$ 0.07
Weighted average number of shares—
Basic	44,865,266	44,897,278	46,449,234	45,119,214	44,377,250
Diluted	44,865,266	44,897,278	47,808,457	45,119,214	45,811,792

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

	September 30, 2022	December 31, 2021
	(In thousands of U.S. dollars, except share data)
Assets
Current assets
Cash and cash equivalents	$ 250,831	$ 279,547
Accounts receivable, net	36,759	50,954
Inventories, net	37,298	39,370
Other receivables	8,248	25,895
Prepaid expenses	10,322	7,675
Hedge collateral	15,370	3,060
Other current assets	20,208	2,619

Total current assets	379,036	409,120
Property, plant and equipment, net	94,411	107,882
Operating lease right-of-use assets	4,928	4,275
Intangible assets, net	1,770	2,377
Long-term prepaid expenses	11,382	8,243
Deferred income taxes	34,299	41,095
Other non-current assets	10,382	10,662

Total assets	$ 536,208	$ 583,654

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 26,545	$ 37,593
Other accounts payable	14,809	6,289
Accrued expenses	15,800	20,071
Accrued income taxes	—	11,823
Operating lease liabilities	1,324	2,323
Other current liabilities	15,881	7,382

Total current liabilities	74,359	85,481
Accrued severance benefits, net	28,036	33,064
Non-current operating lease liabilities	3,811	1,952
Other non-current liabilities	16,787	10,395

Total liabilities	122,993	130,892

Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 56,234,774 shares issued and 44,579,075 outstanding at September 30, 2022 and 55,905,320 shares issued and 45,659,304 outstanding at December 31, 2021	562	559
Additional paid-in capital	264,510	241,197
Retained earnings	332,535	343,542
Treasury stock, 11,655,699 shares at September 30, 2022 and 10,246,016 shares at December 31, 2021, respectively	(152,161)	(130,306 )
Accumulated other comprehensive loss	(32,231)	(2,230 )

Total stockholders’ equity	413,215	452,762

Total liabilities and stockholders’ equity	$ 536,208	$ 583,654

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, 2022	September 30, 2022		September 30, 2021
Cash flows from operating activities
Net income (loss)	$ (17,195)	$ (11,007)		$ 3,097
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	3,623	11,225		10,576
Provision for severance benefits	1,923	5,163		5,514
Amortization of debt issuance costs and original issue discount	—	—		261
Loss on foreign currency, net	37,152	66,335		32,607
Provision for inventory reserves	2,448	7,730		1,484
Stock-based compensation	861	4,487		6,056
Other, net	(81)	631		442
Changes in operating assets and liabilities
Accounts receivable, net	20,182	7,805		6,696
Inventories	(7,722)	(13,208)		(4,561)
Other receivables	5,475	17,115		(5,287)
Other current assets	(12,028)	(14,117)		7,933
Accounts payable	(17,221)	(14,792)		(16,192)
Other accounts payable	(354)	(6,215)		(3,729)
Accrued expenses	8,575	5,866		(1,641 )
Accrued income taxes	30	(11,483)		(8,308)
Other current liabilities	570	(1,583)		555
Other non-current liabilities	(47)	523		(666 )
Payment of severance benefits	(1,247)	(4,181)		(4,772)
Other, net	335	(50)		(49 )

Net cash provided by operating activities	25,279	50,244		30,016
Cash flows from investing activities
Proceeds from settlement of hedge collateral	—	2,805		3,995
Payment of hedge collateral	(8,438)	(15,282)		(2,744 )
Purchase of property, plant and equipment	(10,301)	(11,812)		(13,368)
Payment for intellectual property registration	(148)	(301)		(455)
Collection of guarantee deposits	—	—		3,192
Payment of guarantee deposits	(1,026)	(2,075)		(4,960 )
Other, net	778	792		(103)

Net cash used in investing activities	(19,135)	(25,873)		(14,443 )
Cash flows from financing activities
Proceeds from exercise of stock options	—	1,786		3,920
Acquisition of treasury stock	(3,239)	(5,065)		(1,653 )
Repayment of financing related to water treatment facility arrangement	(120)	(381)		(427 )
Repayment of principal portion of finance lease liabilities	(18)	(50)		(49)

Net cash provided by (used in) financing activities	(3,377)	(3,710)		1,791
Effect of exchange rates on cash and cash equivalents	(25,733)	(49,377)		(21,003)

Net decrease in cash and cash equivalents	(22,966)	(28,716)		(3,639 )
Cash and cash equivalents
Beginning of the period	273,797	279,547		279,940

End of the period	$ 250,831	$ 250,831		$ 276,301

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

	Three Months Ended							Nine Months Ended
	September 30, 2022		June 30, 2022		September 30, 2021			September 30, 2022			September 30, 2021
Operating income (loss)	$	(10,008)	$	2,002		$	20,001		$	4,873		$	19,537
Adjustments:
Equity-based compensation expense		861		1,988			2,005			4,487			6,056
Inventory reserve related to Huawei		—		—			(1,081)			—			(1,081)
Merger-related costs		—		—			1,552			—			13,842
Other charges, net		2,501		797			214			3,298			3,360

Adjusted Operating Income (Loss)	$	(6,646)	$	4,787		$	22,691		$	12,658		$	41,714

We present Adjusted Operating Income (Loss) as a supplemental measure of our performance. We define Adjusted Operating Income (Loss) for the periods indicated as operating income (loss) adjusted to exclude (i) Equity-based compensation expense (ii) Inventory reserve related to Huawei (iii) Merger-related costs and (iv) Other charges, net. For the three and nine months ended September 30, 2022, Other charges, net includes $2.8 million of one-time employee incentives, in each period, and professional service fees and expenses of $0.2 million and $1.0 million, respectively, incurred in connection with certain strategic evaluations, both of which were offset in part by a $0.5 million gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi. For the three and nine months ended September 30, 2021, Other charges, net includes professional service fees and expenses of $0.2 million and $3.4 million, respectively, incurred in connection with the regulatory requests.

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

	Three Months Ended				Nine Months Ended
	September 30, 2022	June 30, 2022	September 30, 2021		September 30, 2022		September30, 2021
Net income (loss)	$ (17,195 )	$ (3,340 )	$ 10,768	$ (11,007)		$ 3,097
Adjustments:
Interest income, net	(1,506 )	(562 )	(439)	(2,672 )		(512)
Income tax expense (benefit)	(3,942)	(897 )	3,149	(1,356)		6,040
Depreciation and amortization	3,623	3,711	3,578	11,225		10,576

EBITDA	(19,020 )	(1,088 )	17,056	(3,810)		19,201
Equity-based compensation expense	861	1,988	2,005	4,487		6,056
Foreign currency loss, net	12,809	7,012	7,579	20,511		12,000
Derivative valuation gain, net	(146)	(184 )	(237)	(201)		(94)
Inventory reserve related to Huawei	—	—	(1,081)	—		(1,081)
Merger-related costs	—	—	1,552	—		13,842
Other charges, net	2,501	797	(513)	3,298		2,633

Adjusted EBITDA	$ (2,995)	$ 8,525	$ 26,361	$ 24,285		$ 52,557

Net income (loss)	$ (17,195)	$ (3,340 )	$ 10,768	$ (11,007)		$ 3,097
Adjustments:
Equity-based compensation expense	861	1,988	2,005	4,487		6,056
Foreign currency loss, net	12,809	7,012	7,579	20,511		12,000
Derivative valuation gain, net	(146 )	(184 )	(237)	(201 )		(94)
Inventory reserve related to Huawei	—	—	(1,081)	—		(1,081)
Merger-related costs	—	—	1,552	—		13,842
Other charges, net	2,501	797	(513)	3,298		2,633
Income tax effect on non-GAAP adjustments	2,267	4,294	—	7,512		—

Adjusted Net Income	$ 1,097	$ 10,567	$ 20,073	$ 24,600		$ 36,453

Adjusted Net Income per common share—
– Basic	$ 0.02	$ 0.24	$ 0.43	$ 0.55		$ 0.54
– Diluted	$ 0.02	$ 0.23	$ 0.42	$ 0.53		$ 0.53
Weighted average number of shares – basic	44,865,266	44,897,278	46,449,234	45,119,214		44,377,250
Weighted average number of shares – diluted	45,747,255	45,937,515	47,808,457	46,134,231		47,718,578

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

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

For the three and nine months ended September 30, 2022, Other charges, net includes $2.8 million of one-time employee incentives, in each period, and professional service fees and expenses of $0.2 million and $1.0 million, respectively, incurred in connection with certain strategic evaluations, both of which were offset in part by a $0.5 million gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi. For the three and nine months ended September 30, 2021, Other charges, net includes professional service fees and expenses of $0.2 million and $3.4 million, respectively, incurred in connection with the regulatory requests, both of which were offset in part by a $0.7 million legal settlement gain related to certain expenses incurred in prior periods in connection with our legacy Fab 4 (which was sold during the year ended December 31, 2020) and awarded in the third quarter of 2021.

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SOURCE Magnachip Semiconductor Corporation

SEOUL, South Korea, Oct. 19, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the third quarter ended September 30, 2022, on Wednesday, November 2, 2022, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

Magnachip logo

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/BIccd8bcc64c4a4092bc5e11273a22e8f2

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

About Magnachip Semiconductor Corporation

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

CONTACTS:

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

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SOURCE Magnachip Semiconductor Corporation

SEOUL, South Korea, Sept. 12, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced that the Board of Directors has authorized an expansion of the Company’s previously announced stock repurchase program from $75 million to $87.5 million of the Company’s common stock. The Company has already repurchased shares worth $37.5 million under the program.

(PRNewsfoto/Magnachip Semiconductor)

The remaining $50.0 million of the expanded $87.5 million program will be repurchased in the open market or through privately negotiated transactions. In connection with the repurchase program, the Company has established a stock trading plan in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934.

The timing of stock repurchases and the number of shares of common stock to be repurchased will depend upon prevailing market conditions and other factors.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created thereby. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “will be,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe(s),” “intend,” “predict,” “potential,” “future,” “strategy,” “opportunity” and similar words or phrases or the negatives of these words or phrases. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including, but not limited to: the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest the COVID 19 pandemic or the emergence of various variants of the virus or other outbreaks of disease, and governmental lock-downs or other measures implemented in response thereto, and the Russia-Ukraine conflict; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely design acceptance by our customers; timely introduction of new products and technologies; ability to ramp new products into volume production; industry wide shifts in supply and demand for semiconductor products; industry and/or company overcapacity or supply constraints; effective and cost efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses which can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors, including those related to the Russia-Ukraine conflict; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic or the emergence of various variants of the virus; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic or the emergence of various variants of the virus that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks and uncertainties and the factors identified under “Risk Factors” in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, and updated in subsequent reports filed by the Company with the U.S. Securities and Exchange Commission and/or make available on our website. These reports are available at www.magnachip.com/kr or www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/magnachip-announces-expanded-stock-repurchase-program-301622018.html

SOURCE Magnachip Semiconductor Corporation

– 200V MV MOSFET 3종 출시로 경전기차(LEV) 모터 컨트롤러 및 산업용 전원 장치 시장에서 점유율 확대 예상

2022년 9월 6일, 매그나칩반도체 유한회사(“매그나칩”) (대표이사 김영준, NYSE:MX)는 경전기차 모터 컨트롤러와 산업용 전원 장치에 특화된 3세대 200V MV (medium voltage) MOSFET (Metal-Oxide-Semiconductor Field-Effect Transistor) 3종을 출시했다고 밝혔다.

Magnachip introduces third- generation 200V MV MOSFETs

전력 기기에서 에너지 효율을 높이는 것은 매우 중요하다. 이번에 출시된 200V MV MOSFET은 3세대 Trench MOSFET 기술을 적용하여 2세대 100V MV MOSFET 제품과 비교해 정전 용량을 50% 줄였다. 그리고, 코어 셀과 칩 종단부 설계를 개선하여 *온저항과 **게이트 총 전하량이 낮아져 우수한 성능 지수(Figure of Merit)를 달성할 수 있게 되었다.

또한, 이번 3세대 MOSFET 제품들은 각각 Surface Mount Device 타입의 TOLL (TO-Leadless), M2PAK, 그리고 Through-hole 타입의 TO-220 패키지를 적용하여 제품 크기를 줄이고 열 방출 기능을 크게 개선했다. 그리고, 빠른 스위칭과 높은 파워 밀도를 구현하여 에너지 효율이 높아지고 -55℃부터 최대 175℃ 접합 온도를 보장하면서 우수한 애벌런치 내구성을 갖추어 높은 효율과 안정성을 요구하는 경전기차의 모터 컨트롤러 및 산업용 전원 장치에 최적화되어 있다.

시장조사업체 옴디아의 데이터에 따르면, 실리콘 모스펫 시장에서 차량용과 산업용 부문은 2020년에서 2025년까지 연평균 11.5% 및 9.6% 증가할 것으로 예측된다. 특히, 경전기차 시장은 탄소배출 감축에 대한 노력과 효율적이고 경제적인 이동 수단에 대한 수요 증가로 인해 빠르게 성장하고 있다.

매그나칩 김영준 부회장은 “차량 및 산업 분야에서 안정적이고 효율적인 전력 공급을 위한 고성능 MV MOSFET에 대한 수요가 증가하고 있다.”라며, “매그나칩은 40V에서부터 200V까지 다양한 프리미엄 MV MOSFET 제품을 지속적으로 개발하여 고객사의 제품 경쟁력을 강화하고 시장을 확대해 나갈 것”이라고 말했다.

매그나칩 3세대 200V MV MOSFET은 경전기차 모터 컨트롤러 및 산업용 전원 장치에 최적화되어 있다.

*온저항(R_DS(on)): MOSFET이 ON 동작할 때, 드레인과 소스 사이의 저항

**게이트 총 전하량(Q_g): MOSFET을 ON 동작시키기 위해 게이트 전극에 주입이 필요한 전하량

제품 특징

낮은 온저항 및 스위칭 손실
우수한 열 방출 능력
-55℃~최대 175℃의 접합 온도 보장
경전기차, 배터리 관리 시스템(BMS), 스위치 모드 전원 장치(SMPS), 전동 공구 등 광범위한 애플리케이션에 적용 가능

관련 링크

파워솔루션 > MV MOSFETs > 200V

매그나칩반도체

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

CONTACTS:

미국 (투자자):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

매그나칩, 3세대 200V MV MOSFET 출시

Revenue of $101.4 million was down 2.6% sequentially and down 11.0% year-over-year (YoY). The YoY decrease was mainly due to severe supply shortages for 28nm 12″ OLED wafers, partially offset by an 11.1% YoY increase in Power solutions business revenue.
Gross profit margin was 28.6%, down 890 basis points from Q1 and down 120 basis points from Q2 a year ago. The sequential decrease was primarily the result of: 1) the prior quarter benefiting 200 basis points from a one-time timing mismatch of lower cost 12″ wafers, 2) lower demand for China smartphones resulting in an inventory reserve of approximately $4.7 million related to 12″ display products, 3) higher foundry cost relating to 12″ wafers and 4) unfavorable product mix.
GAAP diluted loss per share was $0.07.
Non-GAAP diluted earnings per share (EPS) was $0.23.

SEOUL, South Korea, Aug. 8, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the second quarter of 2022.

Commenting on the results for the second quarter of 2022, YJ Kim, Magnachip’s chief executive officer stated, “In the second quarter of 2022, we reported revenue of $101.4 million and non-GAAP diluted EPS of $0.23 despite an increasingly challenging macroeconomic environment. Similar to last quarter, our OLED revenue continued to be impacted by severe supply shortages for 28nm 12-inch wafers and our Power solutions business continued its positive momentum of double-digit YoY growth.”

YJ Kim continued, “Looking ahead, we are facing several challenges in the 2nd half of 2022 that will further impact our near-term results before we expect recovery in 2023. First, lower allocation of 28nm wafers impacted timing of design wins. Second, our new customer ramp schedule will be delayed due to product feature changes. And third, we are seeing a slowdown of the smartphone market. However, we have successfully sampled the full working chip to our new OLED customer, and we expect to get better wafer allocations starting at the end of 2022. We are confident that we will begin to see a recovery of our OLED business in 2023. Accordingly, our Board of Directors has reaffirmed the remaining $37.5 million stock repurchase program that we announced previously. We have also activated the Strategic Review Committee to assist the Board in reviewing, considering, exploring and evaluating strategic alternatives that may be available to the Company to maximize shareholder value while we focus on executing our OLED recovery plan in 2023 and continuing our success in the Power solutions business.”

Stock Repurchase Program and Strategic Review Committee

The Company’s Board of Directors reaffirmed the remaining $37.5 million stock repurchase program that was announced previously. Magnachip believes that this stock repurchase program and continuing to drive its OLED business recovery plan combined with the continued momentum of its Power solutions business, the Company is well positioned to drive significant accretion and value for shareholders over the coming years.

Magnachip also announced today that the Board of Directors has activated the Strategic Review Committee to assist the Board in reviewing, considering, exploring and evaluating strategic alternatives that may be available to the Company to maximize shareholder value. The committee’s mandate is to review the Company’s capital allocation plans and actively explore potential strategic and transactional opportunities, including, but not limited to, joint ventures, strategic partnerships and M&A possibilities that may arise in the future, and make recommendations to the Board regarding those matters, as appropriate. The Strategic Review Committee includes directors Melvin Keating, Ilbok Lee, Camillo Martino and Gary Tanner.

Q2 2022 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP
	Q2 2022			Q1 2022			Q/Q change				Q2 2021			Y/Y change
Revenues
Standard Products Business
Display Solutions		28,336			29,185			down	2.9	%		46,601			down	39.2	%
Power Solutions		62,952			64,825			down	2.9	%		56,667			up	11.1	%
Transitional Fab 3 foundry services⁽¹⁾		10,088			10,083			up	0.0	%		10,608			down	4.9	%
Gross Profit Margin		28.6	%		37.5	%		down	8.9	%pts		29.8	%		down	1.2	%pts
Operating Income⁽²⁾		2,002			12,879			down	84.5	%		1,627			up	23.0	%
Net Income (Loss)		(3,340)			9,528			down	n/a			(198)			down	n/a
Basic Earnings (Loss) per Common Share		(0.07)			0.21			down	n/a			(0.00)			down	n/a
Diluted Earnings (Loss) per Common Share		(0.07)			0.20			down	n/a			(0.00)			down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽³⁾
	Q2 2022			Q1 2022			Q/Q change				Q2 2021			Y/Y change
Adjusted Operating Income		4,787			14,517			down	67.0	%		9,052			down	47.1	%
Adjusted EBITDA		8,525			18,755			down	54.5	%		12,692			down	32.8	%
Adjusted Net Income		10,567			12,936			down	18.3	%		7,034			up	50.2	%
Adjusted Earnings per Common Share—Diluted		0.23			0.28			down	17.9	%		0.15			up	53.3	%

___________
(1)	Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, and for a period of up to three years, we will provide transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi (“Transitional Fab 3 Foundry Services”). Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products display solutions and power solutions business lines.
(2)	In Q2 2022, operating income of $2.0 million included professional service fees and expenses of $0.8 million incurred in connection with certain strategic evaluations. In Q2 2021, operating income of $1.6 million included professional service fees and expenses of $2.5 million incurred in connection with the contemplated merger transaction and non-recurring professional service fees and expenses of $2.6 million incurred in connection with the regulatory requests.
(3)	Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income (loss) or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Q3 2022 Financial Guidance

The Company’s near-term outlook is being challenged by further OLED wafer shortages, pushout of initial mass production ramp of our new OLED customer outside of Korea, weakening demand in consumer end markets on growing recession fears and cost increases, including labor, due to inflationary pressures. While actual results may vary, looking into the next quarter, Magnachip currently expects:

Revenue to be in the range of $70 million to $75 million, including about $9 million of Transitional Fab 3 Foundry Services.
Gross profit margin to be in the range of 26.5% to 28.5%.

Q2 2022 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Monday, August 8, 2022, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com/kr.

Online registration: https://register.vevent.com/register/BI726a270135494c57a56defb9ec4da9d0

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 2022 revenue and gross profit margin expectations, and the impact of market conditions associated with inflation and rising interest rates, the COVID-19 pandemic or the emergence of various variants of the virus, geopolitical conflict between Russia and Ukraine, and escalated trade tensions and supply constraints on Magnachip’s third quarter 2022 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest the COVID-19 pandemic or the emergence of various variants of the virus or other outbreaks of disease, and governmental lock-downs or other measures implemented in response thereto, and the Russia-Ukraine conflict; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely design acceptance by our customers; timely introduction of new products and technologies; ability to ramp new products into volume production; industry wide shifts in supply and demand for semiconductor products; industry and/or company overcapacity; effective and cost efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses which can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors, including those related to the Russia-Ukraine conflict; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic or the emergence of various variants of the virus; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic or the emergence of various variants of the virus that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on February 23, 2022 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

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

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

	Three Months Ended			Six Months Ended
	June 30, 2022	March 31, 2022	June 30, 2021	June 30, 2022	June 30, 2021
Revenues:
Net sales – standard products business	$ 91,288	$ 94,010	$ 103,268	$ 185,298	$ 216,174
Net sales – transitional Fab 3 foundry services	10,088	10,083	10,608	20,171	20,721
Total revenues	101,376	104,093	113,876	205,469	236,895
Cost of sales:
Cost of sales – standard products business	63,620	56,080	70,409	119,700	149,656
Cost of sales – transitional Fab 3 foundry services	8,811	9,017	9,497	17,828	18,887
Total cost of sales	72,431	65,097	79,906	137,528	168,543
Gross profit	28,945	38,996	33,970	67,941	68,352
Gross profit as a percentage of standard products business net sales	30.3 %	40.3 %	31.8 %	35.4 %	30.8 %
Gross profit as a percentage of total revenues	28.6 %	37.5 %	29.8 %	33.1 %	28.9 %
Operating expenses:
Selling, general and administrative expenses	12,736	14,163	14,001	26,899	26,635
Research and development expenses	13,410	11,954	13,322	25,364	26,745
Merger-related costs	—	—	2,459	—	12,290
Other charges	797	—	2,561	797	3,146
Total operating expenses	26,943	26,117	32,343	53,060	68,816
Operating income (loss)	2,002	12,879	1,627	14,881	(464 )
Interest expense	(499)	(111)	(85)	(610 )	(1,126 )
Foreign currency gain (loss), net	(7,012)	(690)	250	(7,702 )	(4,421 )
Other income, net	1,272	933	611	2,205	1,231
Income (loss) before income tax expense	(4,237)	13,011	2,403	8,774	(4,780 )
Income tax expense (benefit)	(897)	3,483	2,601	2,586	2,891
Net income (loss)	$ (3,340)	$ 9,528	$ (198)	$ 6,188	$ (7,671 )
Basic earnings (loss) per common share—	$ (0.07)	0.21	$ (0.00)	$ 0.14	$ (0.18 )
Diluted earnings (loss) per common share—	$ (0.07)	0.20	$ (0.00)	$ 0.13	$ (0.18 )
Weighted average number of shares—
Basic	44,897,278	45,603,208	46,322,027	45,248,293	43,324,088
Diluted	44,897,278	46,693,294	46,322,027	46,329,559	43,324,088

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

	June 30, 2022	December 31, 2021
	(In thousands of U.S. dollars, except share data)
Assets
Current assets
Cash and cash equivalents	$ 273,797	$ 279,547
Accounts receivable, net	59,817	50,954
Inventories, net	36,168	39,370
Other receivables	14,094	25,895
Prepaid expenses	10,783	7,675
Hedge collateral	6,990	3,060
Other current assets	8,361	2,619
Total current assets	410,010	409,120
Property, plant and equipment, net	96,832	107,882
Operating lease right-of-use assets	3,322	4,275
Intangible assets, net	1,979	2,377
Long-term prepaid expenses	14,953	8,243
Deferred income taxes	37,825	41,095
Other non-current assets	10,804	10,662
Total assets	$ 575,725	$ 583,654
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 38,143	$ 37,593
Other accounts payable	14,835	6,289
Accrued expenses	15,426	20,071
Accrued income taxes	—	11,823
Operating lease liabilities	1,838	2,323
Other current liabilities	8,562	7,382
Total current liabilities	78,804	85,481
Accrued severance benefits, net	30,466	33,064
Non-current operating lease liabilities	1,485	1,952
Other non-current liabilities	16,823	10,395
Total liabilities	127,578	130,892
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 56,234,774 shares issued and 44,903,718 outstanding at June 30, 2022 and 55,905,320 shares issued and 45,659,304 outstanding at December 31, 2021	562	559
Additional paid-in capital	263,698	241,197
Retained earnings	349,730	343,542
Treasury stock, 11,331,056 shares at June 30, 2022 and 10,246,016 shares at December 31, 2021, respectively	(148,523)	(130,306)
Accumulated other comprehensive loss	(17,320)	(2,230)
Total stockholders’ equity	448,147	452,762
Total liabilities and stockholders’ equity	$ 575,725	$ 583,654

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, 2022	June 30, 2022	June 30, 2021
Cash flows from operating activities
Net income (loss)	$ (3,340)	$ 6,188	$ (7,671)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	3,711	7,602	6,998
Provision for severance benefits	1,570	3,240	3,507
Amortization of debt issuance costs and original issue discount	—	—	261
Loss on foreign currency, net	22,803	29,183	13,353
Provision for inventory reserves	5,137	5,282	3,346
Stock-based compensation	1,988	3,626	4,051
Other, net	551	712	266
Changes in operating assets and liabilities
Accounts receivable, net	(11,164)	(12,377)	5,098
Inventories	(6,942)	(5,486)	(7,170)
Other receivables	10,973	11,640	(4,841)
Other current assets	4,740	(2,089)	8,623
Accounts payable	1,891	2,429	1,040
Other accounts payable	(5,159)	(5,861)	(674)
Accrued expenses	(2,896)	(2,709)	(2,298)
Accrued income taxes	(9,167)	(11,513)	(10,249)
Other current liabilities	(1,442)	(2,153)	(102)
Other non-current liabilities	643	570	(274)
Payment of severance benefits	(1,545)	(2,934)	(2,836)
Other, net	(207)	(385)	(62)
Net cash provided by operating activities	12,145	24,965	10,366
Cash flows from investing activities
Proceeds from settlement of hedge collateral	976	2,805	972
Payment of hedge collateral	(3,953)	(6,844)	(585)
Purchase of property, plant and equipment	(567)	(1,511)	(4,866)
Payment for intellectual property registration	(94)	(153)	(288)
Collection of guarantee deposits	—	—	307
Payment of guarantee deposits	(970)	(1,049)	(4,960)
Other, net	12	14	(130)
Net cash used in investing activities	(4,596)	(6,738)	(9,550)
Cash flows from financing activities
Proceeds from exercise of stock options	5	1,786	2,549
Acquisition of treasury stock	(996)	(1,826)	(1,653)
Repayment of financing related to water treatment facility arrangement	(127)	(261)	(288)
Repayment of principal portion of finance lease liabilities	(16)	(32)	(33)
Net cash provided by (used in) financing activities	(1,134)	(333)	575
Effect of exchange rates on cash and cash equivalents	(17,539)	(23,644)	(9,451)
Net decrease in cash and cash equivalents	(11,124)	(5,750)	(8,060)
Cash and cash equivalents
Beginning of the period	284,921	279,547	279,940
End of the period	$ 273,797	$ 273,797	$ 271,880

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

	Three Months Ended						Six Months Ended
	June 30, 2022		March 31, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Operating income (loss)	$	2,002	$	12,879	$	1,627	$	14,881	$	(464)
Adjustments:
Equity-based compensation expense		1,988		1,638		2,405		3,626		4,051
Merger-related costs		—		—		2,459		—		12,290
Other charges		797		—		2,561		797		3,146

Adjusted Operating Income	$	4,787	$	14,517	$	9,052	$	19,304	$	19,023

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

For the three and six months ended June 30, 2021, we recorded $2,459 thousand and $12,290 thousand, respectively, of professional service fees and expenses incurred in connection with the contemplated merger transaction.

For the three and six months ended June 30, 2022, we recorded $797 thousand of professional service fees and expenses incurred in connection with certain strategic evaluations. For the three and six months ended June 30, 2021, we recorded $2,561 thousand and $3,146 thousand, respectively, of non-recurring professional service fees and expenses incurred in connection with the regulatory requests.

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

	Three Months Ended			Six Months Ended
	June 30, 2022	March 31, 2022	June 30, 2021	June 30, 2022	June 30, 2021
Net income (loss)	$ (3,340)	$ 9,528	$ (198)	$ 6,188	$ (7,671)
Adjustments:
Interest income, net	(562)	(604)	(493)	(1,166)	(73)
Income tax expense (benefit)	(897)	3,483	2,601	2,586	2,891
Depreciation and amortization	3,711	3,891	3,550	7,602	6,998

EBITDA	(1,088)	16,298	5,460	15,210	2,145
Equity-based compensation expense	1,988	1,638	2,405	3,626	4,051
Foreign currency loss (gain), net	7,012	690	(250)	7,702	4,421
Derivative valuation loss (gain), net	(184)	129	57	(55)	143
Merger-related costs	—	—	2,459	—	12,290
Other charges	797	—	2,561	797	3,146

Adjusted EBITDA	$ 8,525	$ 18,755	$ 12,692	$ 27,280	$ 26,196

Net income (loss)	$ (3,340)	$ 9,528	$ (198)	$ 6,188	$ (7,671)
Adjustments:
Equity-based compensation expense	1,988	1,638	2,405	3,626	4,051
Foreign currency loss (gain), net	7,012	690	(250)	7,702	4,421
Derivative valuation loss (gain), net	(184)	129	57	(55)	143
Merger-related costs	—	—	2,459	—	12,290
Other charges	797	—	2,561	797	3,146
Income tax effect on non-GAAP adjustments	4,294	951	—	5,245	—

Adjusted Net Income	$ 10,567	$ 12,936	$ 7,034	$ 23,503	$ 16,380

Adjusted Net Income per common share—
– Basic	$ 0.24	$ 0.28	$ 0.15	$ 0.52	$ 0.38
– Diluted	$ 0.23	$ 0.28	$ 0.15	$ 0.51	$ 0.36
Weighted average number of shares – basic	44,897,278	45,603,208	46,322,027	45,248,293	43,324,088
Weighted average number of shares – diluted	45,937,515	46,693,294	47,846,217	46,329,559	47,685,875

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

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/magnachip-reports-results-for-second-quarter-2022-and-reaffirms-previously-announced-stock-buyback-program-301601362.html

SOURCE Magnachip Semiconductor Corporation

SEOUL, South Korea, July 27, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that its management will participate at the Oppenheimer 25th Annual Technology, Internet & Communications Conference virtually between August 9 and August 10, 2022.

(PRNewsfoto/Magnachip Semiconductor)

Mr. YJ Kim, Magnachip’s chief executive officer, and Ms. Shinyoung Park, Magnachip’s chief financial officer, will be available for one-on-one and small group meetings with institutional investors during the conference. For more information about the conference or to request a one-on-one meeting, please contact an Oppenheimer sales representative.

About Magnachip Semiconductor Corporation

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

View original content to download multimedia: https://www.prnewswire.com/news-releases/magnachip-to-participate-in-oppenheimer-25th-annual-technology-internet–communications-conference-301594687.html

SOURCE Magnachip Semiconductor Corporation

SEOUL, South Korea, July 25, 2022 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the second quarter ended June 30, 2022, on Monday, August 8, 2022, after the market closes. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

Online registration: https://register.vevent.com/register/BI726a270135494c57a56defb9ec4da9d0

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

About Magnachip Semiconductor Corporation

CONTACTS:

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/magnachip-to-announce-second-quarter-2022-financial-results-on-august-8-301592189.html

SOURCE Magnachip Semiconductor Corporation

– 강력한 배터리 회로 보호 기능을 가진 24V MOSFET 신제품으로 글로벌 소형 전자 기기 배터리 시장에서 점유율 확대

2022년 7월 18일, 매그나칩반도체 유한회사(“매그나칩”) (대표이사 김영준, NYSE:MX)는 무선 이어폰의 배터리 회로용 24V MOSFET (Metal Oxide Semiconductor Field Effect Transistor)를 출시했다고 밝혔다.

이번 신제품은 도전 손실을 줄여 빠른 충전을 가능하게 하고 배터리 수명을 연장한다. 이전 세대 제품보다 코어 셀 집적도를 30% 높이고, 코어 셀과 칩 종단부 그리고 소스 패드 설계를 개선하여 온저항(RDS(on): MOSFET이 ON 동작할 때, 드레인과 소스 사이의 저항)은 24% 감소했다. 그리고, 충·방전 시 도전 손실(conduction loss)을 낮추어 전반적인 효율성이 개선되었다. 또한, 이 제품은 충전기로부터 5V 이상의 전압과 최대 2kV의 정전기가 유입되는 것을 막도록 설계되어 있어 정전기 특성을 확보하고 배터리 회로를 안전하게 보호한다.

시장조사업체 옴디아에 따르면, 2020년에서 2026년까지 무선 이어폰 시장은 연평균 15.1% 증가할 것으로 예상된다. 현재, 이 제품은 양산 후 글로벌 이어폰 제조사의 프리미엄 무선 이어폰 배터리에 탑재되고 있다.

매그나칩 김영준 대표 이사는 “매그나칩은 올해 초 스마트폰 배터리 보호회로용 LV MOSFET 3종을 발표한 데 이어 이번에는 무선 이어폰에 탑재되는 고효율 24V MOSFET을 출시했다.”라며, “앞으로도 축적된 기술 노하우와 사업 경험을 바탕으로 VR 글라스 등 다양한 웨어러블 기기에 적용되는 24V MOSFET 제품을 출시하여 소형 전자 기기 배터리 시장을 계속해서 확대해 갈 것”이라고 말했다.

관련 링크

파워솔루션 > MXT MOSFETs > 24V

매그나칩반도체

CONTACTS:

미국 (투자자):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-5223
pr@maganachip.com

In the Media

매그나칩, 무선 이어폰 배터리 보호회로용 24V MOSFET 신제품 출시

– IGBT 신제품 출시로 글로벌 태양광 에너지 시장에서 시장점유율 확대 기대

2022년 6월 17일, 매그나칩반도체 유한회사(“매그나칩”) (대표이사 김영준, NYSE:MX)는 태양광 인버터에 특화된 650V 절연 게이트 양극성 트랜지스터 (IGBT: Insulated-gate bipolar transistors)를 출시했다고 밝혔다.

기후변화로 인한 환경문제가 심각해지면서 탄소배출 저감을 위해 태양광과 같은 신재생에너지 보급이 전 세계적으로 확대되고 있다. 시장조사업체 옴디아의 데이터에 따르면, 2022년부터 2025년까지 전 세계 재생 에너지 시장에서 IGBT 분야는 연평균 15% 성장할 것으로 예측된다. 지난 3월, 매그나칩은 최신 필드 스톱 트렌치 (Field stop trench) 기술을 기반으로 빠른 스위칭 기능과 높은 항복 전압을 가진 650V IGBT를 개발했고, 이번 달부터 본격적인 양산에 들어간다.

이번 IGBT 신제품은 매그나칩의 최신 설계를 적용하여 이전 세대와 비교해 전류 밀도가 30% 개선되었다. 또한, 최소 5μs 이상의 단락 회로 시간을 견디도록 설계되었고, 양온도 계수 특성으로 병렬 스위칭에 최적화되어 있다. 이러한 병렬 스위칭을 통해 부하 전류와 최대 출력 전력이 함께 증가하게 된다.

또한, 이번 제품에는 고속 역병렬 다이오드가 결합되어 스위칭 속도를 높여 손실을 줄이고, 최대 175°C의 동작 온도 범위를 보장한다. 이 제품은 국제반도체표준협의기구인 JEDEC (Joint Electron Device Engineering Council)의 표준 규격을 준수하여 태양광 인버터와 컨버터를 비롯한 UPS, 범용 인버터 등 엄격한 전력 등급과 높은 효율성이 요구되는 애플리케이션에 광범위하게 적용될 수 있다.

매그나칩 김영준 대표이사는 “매그나칩은 2013년 IGBT 제품을 처음으로 출시한 이후, 다양한 애플리케이션에 적용되는 고효율 제품을 개발해왔다.”며, “앞으로도 지속적인 기술 혁신을 통해 고성능 제품을 개발하고 재생 에너지 시장에 더욱 많은 발전의 기회를 제공할 것”이라고 덧붙였다.

매그나칩의 재생에너지용 IGBT 제품

모델명	V_CES [V]	I_C [A] T_C=100℃	패키지
MBQ75T65P	650V	75A	TO-247
MBQ40T120Q	1200V	40A	TO-247

매그나칩반도체

매그나칩은 통신, IoT, 가전, 컴퓨팅, 산업, 자동차 등의 애플리케이션에 탑재되는 아날로그 및 혼성신호 반도체를 설계·생산하고, 전 세계 고객들에게 표준 규격에 맞는 다양한 솔루션을 제공합니다. 40여 년 동안, 매그나칩은 엔지니어링, 설계 및 제조 공정 영역에서 광범위한 전문 지식을 축적해 왔고, 약 1,150건의 특허를 보유하거나 출원 중입니다. 더 자세한 정보는 www.magnachip.com/kr 에서 확인할 수 있습니다. 매그나칩 웹사이트에 기재된 정보나 매그나칩 웹사이트를 통해서 획득한 정보는 이 보도 자료에 포함되지 않습니다.

CONTACTS:

미국 (투자자):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-5223
pr@maganachip.com

In the Media

매그나칩, 태양광 인버터에 특화된 650V IGBT 신제품 출시

2022년 5월 5일, 매그나칩반도체(“매그나칩”) (대표이사 김영준, NYSE: MX)는 2022년 1분기 말 기준, OLED 디스플레이 드라이버 IC (Display Driver Integrated Circuit)의 누적 출하량이 7억 3천만 개를 돌파했다고 밝혔다.

2003년, 매그나칩은 OLED DDIC 개발을 시작했고, 2007년에는 첫 제품을 양산했다. 그 후, 19년간의 지속적인 기술 혁신을 통해 폴더블폰, 차량 및 하이엔드 OLED TV 디스플레이 시장까지 사업 영역을 확대했다. 최근에는 전 세계적인 파운드리 시장의 공급 부족 상황에도 불구하고, 글로벌 스마트폰 제조사의 최신 모델에 연이어서 OLED DDIC 제품을 공급함으로써 글로벌 누적 출하량 7억 3천만 개를 돌파하는 등 좋은 성과를 보여 주고 있다.

주요 스마트폰, 자동차 및 TV 제조사들이 OLED 디스플레이 패널의 채택을 늘리면서, OLED DDIC에 대한 수요와 시장의 전망은 밝아 보인다. 시장조사업체 옴디아는 2021년부터 2028년까지 스마트폰과 TV에 탑재되는 OLED 디스플레이 패널 출하량이 2배가량 증가하고, 차량용 OLED 디스플레이 패널 출하량은 동기간 10배까지 성장할 것으로 예측한다. 또한, 옴디아의 데이터에 따르면, OLED 디스플레이 패널 전체 출하량은 2021년 약 804만 대에서 2028년 1,200만 대까지 증가할 것으로 예상된다.

매그나칩 김영준 대표이사는 “매그나칩은 지속적인 OLED DDIC 기술 개발과 제품군 확대를 통해 올해 1분기에는 7억 개를 훌쩍 뛰어넘는 글로벌 출하량을 기록했다.”라며, “앞으로도 시장의 다양한 기술적 변화를 최적으로 구현하는 고성능 DDIC 제품을 개발하여 시장을 확대하고, 동시에 기술적 리더십과 시장 지배력을 강화해 나갈 것”이라고 말했다.

관련 링크

디스플레이 솔루션 – 개요

매그나칩반도체

CONTACTS:

미국 (투자자):
Yujia Zhai
The Blueshirt Group
Tel. +1-860-214-0809
investor.relations@maganachip.com

미국 (투자자):
So-Yeon Jeong
Jeong Consulting
Tel. +1-408-712-6151
investor.relations@maganachip.com

미국 미디어 / 업계 분석가:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

한국 / 아시아 미디어:
김민아
Senior manager of Public Relations
Tel. +82-2-6903-5223
pr@maganachip.com

[카테고리:] News

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Magnachip to Announce Third Quarter 2022 Financial Results on November 2

Magnachip Announces Expanded Stock Repurchase Program

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Magnachip Reports Results for Second Quarter 2022 and Reaffirms Previously-Announced Stock Buyback Program

Magnachip to Participate in Oppenheimer 25th Annual Technology, Internet & Communications Conference

Magnachip to Announce Second Quarter 2022 Financial Results on August 8

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