Tag: Newsroom

MagnaChip Reports Second Quarter 2011 Financial Results

– Revenue of $204 Million up 8% Sequentially and 5% Year-over-Year
– Power Solutions Revenue Grew 16% Sequentially and 97% Year-over-Year
– Gross Profit Expands 240 Basis Points Sequentially
– GAAP Net Income $32 Million or $0.78 Per Diluted Share

SEOUL, South Korea and CUPERTINO, Calif., July 27, 2011 /PRNewswire via COMTEX/ — MagnaChip Semiconductor Corporation (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced financial results for the second quarter ended June 30, 2011.

Revenue for the second quarter of 2011 was $203.7 million, an 8.4% increase compared to $187.9 million for the first quarter of 2011, and a 4.6% increase compared to $194.7 million for the second quarter of 2010.

Gross profit was $66.2 million or 32.5%, as a percent of revenue, for the second quarter of 2011. This compares to gross profit of $56.5 million or 30.1% for the first quarter of 2011 and $64.5 million or 33.1% for the second quarter of 2010.

“I am very pleased that revenue for our three business segments grew during the quarter and that gross profit expanded as a result of strong execution by our sales and manufacturing organizations,” said Sang Park, MagnaChip’s Chairman and Chief Executive Officer. “Not only did our Power Solutions segment grow 16 percent sequentially, but our Display Solutions segment posted double-digit revenue growth this quarter as well. Additionally, our Foundry business was up 5% over the March quarter despite overall market softness as reported by several foundry providers. I am very encouraged by the traction of our new products, which has increased the design-win activity for both our Power Segment and Foundry Services. This better positions us strategically for growth in the coming years.”

Net income, on a GAAP basis, for the second quarter of 2011 totaled $31.6 million or $0.78 per diluted share. This compares to net income of $22.5 million or $0.57 per diluted share for the first quarter of 2011 and a net loss of $30.7 million or $0.81 per diluted share for the second quarter of 2010.

Adjusted net income, a non-GAAP measurement, for the second quarter of 2011 totaled $22.5 million or $0.56 per diluted share compared to $15.7 million or $0.40 per diluted share for the first quarter of 2011 and $25.7 million or $0.68 per diluted share for the second quarter of 2010.

Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a more meaningful understanding of the factors and trends affecting MagnaChip Semiconductor Corporation’s business and operations. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income or as a better indicator of our operating performance than measures that are presented in accordance with GAAP.

Combined cash balances (cash and cash equivalents plus short-term investments) totaled $177.8 million at the end of the second quarter of 2011, a decrease of $16.4 million from the end of the prior quarter due to a cash payment of $38.2 million related to the $35 million repurchase of senior notes during the quarter. Cash provided from operations totaled approximately $48.3 million for the second quarter of 2011.

Revenue by Segment

In thousands of US dollars                                                 Three Months Ended

Second Quarter and Recent Company Highlights

Reduced the Company’s Outstanding Senior Notes from $250M to $215M by Repurchasing and Retiring $35M of Principal.
Began Wafer Production for ELMOS’ 0.35um Automotive Semiconductor Products.
Delivered Working Samples of an LED Lighting Product targeted for the Fast Growing LED Market.
Developed a High Voltage IGBT Power Module for Industrial and Consumer Appliance Applications.

Non-GAAP Metrics

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

About MagnaChip Semiconductor Corporation

Headquartered in South Korea, MagnaChip Semiconductor Corporation is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications. MagnaChip Semiconductor believes it has one of the broadest and deepest ranges of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, a large portfolio of registered and pending patents, and extensive engineering and manufacturing process expertise. For more information, please visit https://www.magnachip.com/. Information on or accessible through, MagnaChip Semiconductor’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 Semiconductor Corporation’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about our ability to capitalize on improving market dynamics and future operating and financial performance including third quarter 2011 revenue. All forward-looking statements included in this release are based upon information available to MagnaChip Semiconductor as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip Semiconductor Corporation’s filings with the SEC, including our Form 10-K filed on March 18, 2011 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. MagnaChip Semiconductor Corporation assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

CONTACTS:

In the United States:

Robert Pursel
Director of Investor Relations
Tel. 408-625-1262
robert.pursel@magnachip.com

In Korea:

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

SEOUL, South Korea and CUPERTINO, Calif., July 11, 2011 — MagnaChip Semiconductor Corporation (“MagnaChip Semiconductor”) (NYSE: MX) will hold a conference call Wednesday, July 27, 2011 at 2 p.m. PDT to discuss the Company’s second quarter 2011 financial results. Participating in the call will be Sang Park, MagnaChip Chairman and CEO and Margaret Sakai, Executive Vice President and CFO. The earnings release will be issued after the market closes that day.

The conference call will be webcast live and is also available by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 82072152 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 2 p.m. PDT start time to ensure a timely connection. The webcast and earnings release will be accessible at investors.magnachip.com.

A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-800-642-1687 and 1-706-645-9291. The access code is 82072152.

About MagnaChip Semiconductor

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

CONTACTS:

In the United States:

Robert Pursel
Director of Investor Relations
Tel. +1-408-625-1262
robert.pursel@magnachip.com

In Korea:

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

MagnaChip Reports First Quarter 2011 Financial Results

First Quarter and Recent Company Highlights

Successfully completed our initial public offering and listing on the New York Stock Exchange on March 11, 2011.
Signed a wafer foundry agreement with a major US provider of microcontroller and touch solutions.
Launched a US-based power solutions design center in Cupertino, California, to expand our technology offerings.
Introduced a cost-competitive copper wire bonding solution for foundry customers.

Business Outlook

For the second quarter of 2011, the company expects:
Revenue to increase 5% to 9% on a sequential basis.
Gross profit, as a percent of revenue, to increase 1.5% to 3.0% quarter-over-quarter.

Non-GAAP Metrics

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

About MagnaChip Semiconductor Corporation

Headquartered in South Korea, MagnaChip Semiconductor Corporation is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications. MagnaChip Semiconductor believes it has one of the broadest and deepest ranges of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, a large portfolio of registered and pending patents, and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through, MagnaChip Semiconductor’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 Semiconductor Corporation’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about our ability to capitalize on improving market dynamics and future operating and financial performance including second quarter 2011 revenue and gross profit. All forward-looking statements included in this release are based upon information available to MagnaChip Semiconductor as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip Semiconductor Corporation’s filings with the SEC, including our Form 10-K filed on March 18, 2011 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. MagnaChip Semiconductor Corporation assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

SEOUL, South Korea and CUPERTINO, Calif., April 6, 2011 — On Thursday, April 7, 2011, executives of MagnaChip Semiconductor Corporation (NYSE: MX) will visit the New York Stock Exchange to celebrate the recent completion of its initial public offering and first day of NYSE trading. To mark this special occasion, Sang Park, Chairman and Chief Executive Officer, will ring the Opening Bell at 9:30 a.m. EDT. “It is an honor to ring the Opening Bell and represent our many employees around the world who are responsible for MagnaChip’s success,” said Sang Park. “We are proud to be listed on the New York Stock Exchange along with many of the world’s top publicly-traded companies.”

About MagnaChip Semiconductor Corporation

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

CONTACTS:

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

In Korea:
Chankeun Park
Senior Manager, Public Relations
Tel. +82-3-6903-3195
chankeun.park@magnachip.com

SEOUL, South Korea and CUPERTINO, Calif., April 5, 2011 — MagnaChip Semiconductor Corporation (“MagnaChip Semiconductor”) (NYSE: MX) will hold a conference call Wednesday, April 27, 2011 at 3 p.m. PDT to discuss the Company’s first quarter 2011 financial results. Participating in the call will be Sang Park, MagnaChip Chairman and CEO and Margaret Sakai, Executive Vice President and CFO. The earnings release will be issued after the market closes that day.

The conference call will be webcast live and is also available by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 57757395 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 3 p.m. PDT start time to ensure a timely connection. The webcast and earnings release will be accessible at investors.magnachip.com.

A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-800-642-1687 and 1-706-645-9291. The access code is 57757395.

About MagnaChip Semiconductor

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

SEOUL, South Korea, April 4, 2011 — MagnaChip Semiconductor Corporation (“MagnaChip Semiconductor”) (NYSE: MX) a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced that it now offers cost competitive and state of the art copper wire bonding technology for the specialized needs of foundry customers.

Copper bonding employs copper wires instead of gold for interconnection and has become one of the most preferred methods to reduce overall package cost for semiconductor applications as the price of gold continues to rise.

Copper wire offers significant advantages over gold wire. First, copper is three to five times less costly than gold. Substituting gold with copper can achieve a packaging cost savings of about 20% to 30%. Copper wire is about 30% more conductive than gold, making it a superior electrical conductor. Copper also has about 25% higher thermal conductivity. In addition, because of copper’s lower tendency to form intermetallic compounds, copper bonds can offer higher reliability at elevated temperatures than gold bonds.

One of the major challenges of copper wire bonding has been the significant mechanical stress imposed on bonding pads, which often resulted in damage to silicon wafers in the form of cracks beneath the pads. To resolve this issue, MagnaChip worked with the major packaging companies, including Amkor, to develop and qualify an enhanced silicon bonding process.

TJ Lee, Senior Vice President and General Manager, Corporate Engineering, commented, “We are very pleased to announce the offering of our cost competitive copper wire bonding solutions to meet the increasing demand for a gold wire alternative. Foundry customers can now migrate to MagnaChip’s copper wire bonding technology and recognize a direct 20% to 30% cost savings. It is our goal to provide innovative and cost-effective manufacturing solutions for our customers.”

About MagnaChip Semiconductor

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

CUPERTINO, Calif. & SEOUL, South Korea, March 16, 2011 — MagnaChip Semiconductor Corporation (“MagnaChip Semiconductor”) (NYSE: MX) today announced that it has closed its previously announced initial public offering of 9,500,000 shares of common stock at a price to the public of $14.00 per share. Of the 9,500,000 shares sold, 950,000 shares were sold by MagnaChip Semiconductor and 8,550,000 shares were sold by selling stockholders.

Barclays Capital Inc., Deutsche Bank Securities Inc. and Goldman, Sachs & Co. served as joint-bookrunners and Citigroup Global Markets Inc. and UBS Securities LLC served as co-managers in the offering.

A registration statement relating to this offering was filed with and declared effective by the Securities and Exchange Commission on March 10, 2011. A copy of the final prospectus relating to this offering may be obtained from:

– Barclays Capital Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 888-603-5847 or by e-mail at Barclaysprospectus@broadridge.com;

– Deutsche Bank Securities Inc., Attention: Prospectus Department, 100 Plaza One, Jersey City, New Jersey 07311, or by telephone at 800-503-4611 or by email at prospectus.cpdg@db.com;

– Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, New York 10282, by telephone at 866-471-2526, by fax at 212-902-9316 or by e-mail at prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About MagnaChip Semiconductor

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

CUPERTINO, Calif. and SEOUL, South Korea, March 10, 2011 — MagnaChip Semiconductor Corporation (“MagnaChip Semiconductor”) (NYSE: MX) today announced the initial public offering of 9,500,000 shares of common stock at a price to the public of $14.00 per share. All of the shares of common stock sold in this offering will be sold in the form of depositary shares. Each depositary share represents an ownership interest in one share of common stock. Of the 9,500,000 shares being offered, 950,000 shares are being offered by MagnaChip Semiconductor and 8,550,000 shares are being offered by selling stockholders. In addition, MagnaChip Semiconductor and the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 142,500 and 1,282,500 shares, respectively, to cover over-allotments, if any.

The depositary shares will begin trading on the New York Stock Exchange on March 11, 2011 under the ticker symbol “MX.”

Barclays Capital Inc., Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are serving as joint-bookrunners and Citigroup Global Markets Inc. and UBS Securities LLC are serving as co-managers in the offering.

A registration statement relating to this offering was filed with and declared effective by the Securities and Exchange Commission on March 10, 2011. This offering is being made solely by means of a written prospectus forming part of the effective registration statement. A copy of the prospectus relating to this offering may be obtained from:

· Barclays Capital Inc. c/o Broadridge Financial Solutions, Attention: Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 888-603-5847 or by e-mail at Barclaysprospectus@broadridge.com;

· Deutsche Bank Securities Inc., Attention: Prospectus Department, 100 Plaza One, Jersey City, New Jersey 07311, or by telephone at 800-503-4611 or by email at prospectus.cpdg@db.com;

· Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, New York 10282, by telephone at 1-866-471-2526, by fax at 212-902-9316 or by e-mail at prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About MagnaChip Semiconductor

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

SEOUL, South Korea and CUPERTINO, Calif., February 1, 2011 — MagnaChip Semiconductor LLC (“MagnaChip Semiconductor”) today announced financial results for the quarter and year ended December 31, 2010.

Revenue for the fourth quarter of 2010 was $186.8 million, a 10.8% decrease compared to $209.4 million for the third quarter of 2010, and a 15.1% increase compared to $162.3 million for the combined three-month period ended December 31, 2009. For the full year 2010, revenue was $770.4 million compared to $560.1 million for 2009, a 37.6% increase.

Gross profit was $60.4 million or 32.3%, as a percent of revenue, for the fourth quarter of 2010. This compares to gross profit of $69.3 million or 33.1% for the third quarter of 2010 and $37.1 million or 22.9% for the combined three-month period ended December 31, 2009. For the full year 2010, gross profit was $243.6 million or 31.6% compared to $158.5 million or 28.3% for combined 2009.

“2010 proved to be a strong year for MagnaChip. We are very pleased that our refocused business strategy, strong pipeline of new products and enhanced manufacturing capacity has positioned us well for solid growth,” said Sang Park, MagnaChip Semiconductor’s Chairman and Chief Executive Officer. “Based on our solid design win momentum and booking activity we are excited about the outlook for 2011 and beyond for our Semiconductor Manufacturing Services, Display and Power Solutions products.”

Operating expense was $36.9 million or 19.7% of revenue for the fourth quarter of 2010. This compares to $39.8 million or 19.0% of revenue for the third quarter of 2010 and $40.0 million or 24.6% of revenue for the combined three-month period ended December 31, 2009. For the full year 2010, operating expense was $152.2 million or 19.8% compared to $142.2 million or 25.4% for combined 2009.

Operating income was $23.5 million for the fourth quarter of 2010 or 12.6% of revenue. This compares to operating income of $29.6 million or 14.1% of revenue for the third quarter of 2010 and operating loss of $2.8 million for the combined three-month period ended December 31, 2009. For the full year 2010, operating income was $91.4 million or 11.9% compared to $16.4 million or 2.9% for combined 2009.

Net income, on a GAAP basis, for the fourth quarter of 2010 totaled $12.3 million. This compares to net income of $61.5 million for the third quarter of 2010 and net income of $818.8 million for the combined three-month period ended December 31, 2009. For the full year 2010, net income was $74.1 million compared to $839.1 million for combined 2009. Net income, for the fourth quarter of 2010, was impacted primarily by a relatively constant foreign currency translation in the fourth quarter compared to a foreign currency gain of $41.4 million for the third quarter of 2010 and a foreign currency gain of $16.7 million and net reorganization gain of $809.0 million for the combined three-month period ended December 31, 2009, respectively. The net foreign currency exposure is primarily related to non-cash translation gains or losses for intercompany balances that are denominated in U.S. dollars. The net reorganization gain of $809.0 million in the one-month period ended October 25, 2009 represents the impact of non-cash reorganization income and expense items directly associated with our reorganization proceedings and primarily reflects the discharge of liabilities of $798.0 million.

Adjusted net income, a non-GAAP measurement, for the fourth quarter of 2010 totaled $17.4 million compared to $26.2 million for the third quarter of 2010, and $20.2 million for the combined three-month period ended December 31, 2009. For the full year 2010, adjusted net income was $89.2 million compared to $22.6 million for combined 2009.

Adjusted EBITDA, a non-GAAP measurement, for the fourth quarter of 2010 totaled $39.7 million compared to $45.7 million for the third quarter of 2010, and $32.6 million for the combined three-month period ended December 31, 2009. For the full year 2010, adjusted EBITDA was $157.9 million compared to $98.7 million for combined 2009.

Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a more meaningful understanding of the factors and trends affecting MagnaChip Semiconductor’s business and operations. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income or as a better indicator of our operating performance than measures that are presented in accordance with GAAP.

Combined cash balances (cash and cash equivalents plus short-term investments) totaled $172.2 million at the end of the fourth quarter of 2010, an increase of $10.7 million from the end of the prior quarter. Cash provided from operations totaled approximately $24.8 million for the fourth quarter of 2010. This compares to $30.7 million for the third quarter of 2010 and $11.3 million for the combined three-month period ended December 31, 2009.

Revenue by Segment

In thousands of US dollars

Revenue by Segment

In thousands of US dollars

Non-GAAP Metrics

Adjusted EBITDA excludes charges related to depreciation and amortization associated with continuing operations, interest expense, income tax expense (benefit), restructuring and impairment charges, other restructuring charges, abandoned IPO expenses, reorganization items, inventory step-up, equity-based compensation expense, foreign currency gain (loss) and derivative valuation gain (loss). Adjusted net income (loss) excludes charges related to restructuring and impairment charges, other restructuring charges, abandoned IPO expenses, reorganization items, inventory step-up, equity-based compensation expense, amortization of intangible assets associated with continuing operations, foreign currency gain (loss) and derivative valuation gain (loss). A reconciliation of GAAP results to non-GAAP results is included following the financial statements below.

About MagnaChip Semiconductor

Headquartered in South Korea, MagnaChip Semiconductor is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications. MagnaChip Semiconductor believes it has one of the broadest and deepest range of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, a large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through, MagnaChip Semiconductor’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 Semiconductor’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about our ability to capitalize on improving market dynamics and future operating and financial performance including fourth quarter 2010 revenues. All forward-looking statements included in this release are based upon information available to MagnaChip Semiconductor as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip Semiconductor’s filings with the SEC, including our Form S-1 filed on February 1, 2011 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. MagnaChip Semiconductor 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.