Q4 Results Summary
- Consolidated revenue from continuing operations (which includes Power Analog Solutions ("PAS") and Power IC ("PIC") businesses) was $40.6 million, approximately at the mid-point of our guidance range of $38.5 to $42.5 million.
- Consolidated gross profit margin from continuing operations was 9.3%, slightly above the mid-point of our guidance range of 8.0% to 10.0%.
- Product revenue from our Communications business grew 24% sequentially and 68% year-over-year.
Q4 Highlights
- Launched 24 new-generation products in the fourth quarter.
2025 Highlights
- Launched 55 new-generation products in 2025, compared with four for the full year 2024.
- Signed a strategic agreement to expand our industrial business based on a jointly developed IGBT technology with Hyundai Mobis.
- Executed multiple operating expense cost reduction programs, including a headcount reduction program, expected to generate more than $2 million in annualized savings beginning in Q4 2025.
- $21.4 million was spent in 2025 for the Gumi fab upgrade, of which $17.0 million was funded through equipment financing loans.
Magnachip Semiconductor Corporation (NYSE:MX) ("Magnachip" or the "Company") today announced financial results for the fourth quarter and full year 2025.
Camillo Martino, Magnachip's CEO said, "Magnachip has a strong foundation in power semiconductors, built on decades of engineering expertise, trusted customer relationships, and a reputation for quality and reliability. Over the past year, we have taken deliberate actions to simplify the business, significantly reduce our cost structure, and sharpen our focus on power, while increasing investment in new-generation products where we can compete and win."
Mr. Martino added, "While near-term market conditions remain challenging, the changes we have made are deliberate and structural. With a more focused strategy, a stronger product pipeline, and disciplined execution, we believe Magnachip is better positioned to improve competitiveness, strengthen margins over time, and drive a more consistent recovery."
Q4 and 2025 Financial Highlights
|
In thousands of U.S. dollars, except share data |
||||||||||||||||||||
|
|
GAAP(1) |
|
||||||||||||||||||
|
|
Q4 2025 |
|
Q3 2025 |
|
Q/Q change |
|
Q4 2024(1) |
|
Y/Y change |
|||||||||||
Consolidated Revenues |
|
40,570 |
|
45,946 |
|
down |
11.7 |
% |
|
51,153 |
|
down |
20.7 |
% |
|||||||
Power Solutions business |
|
40,570 |
|
|
45,946 |
|
|
|
down |
|
11.7 |
% |
|
48,858 |
|
|
|
down |
|
17.0 |
% |
Power Analog Solutions |
|
36,811 |
|
|
41,548 |
|
|
|
down |
|
11.4 |
% |
|
43,455 |
|
|
|
down |
|
15.3 |
% |
Power IC |
|
3,759 |
|
|
4,398 |
|
|
|
down |
|
14.5 |
% |
|
5,403 |
|
|
|
down |
|
30.4 |
% |
Transitional Fab 3 foundry services(2) |
|
— |
|
|
— |
|
|
|
n/a |
|
— |
|
2,295 |
|
|
|
n/a |
|
— |
||
Consolidated Gross Profit Margin |
|
9.3 |
% |
|
18.6 |
% |
|
down |
9.3 |
%pts |
|
21.7 |
% |
|
down |
12.4 |
%pts |
||||
Power Solutions business |
|
9.3 |
% |
|
18.6 |
% |
|
|
down |
|
9.3 |
%pts |
|
23.2 |
% |
|
|
down |
|
13.9 |
%pts |
Power Analog Solutions |
|
6.5 |
% |
|
16.0 |
% |
|
|
down |
|
9.5 |
%pts |
|
20.5 |
% |
|
|
down |
|
14.0 |
%pts |
Power IC |
|
36.7 |
% |
|
43.2 |
% |
|
|
down |
|
6.5 |
%pts |
|
44.9 |
% |
|
|
down |
|
8.2 |
%pts |
Transitional Fab 3 foundry services(2) |
|
— |
|
|
— |
|
|
|
n/a |
|
— |
|
|
-11.0 |
% |
|
|
n/a |
|
— |
|
Operating Loss |
|
(12,446 |
) |
|
(11,538 |
) |
|
|
down |
|
n/a |
|
|
(6,828 |
) |
|
|
down |
|
n/a |
|
Loss from continuing operations |
|
(8,792 |
) |
|
(10,609 |
) |
|
|
up |
|
n/a |
|
|
(7,702 |
) |
|
|
down |
|
n/a |
|
Basic Loss per Common Share |
|
(0.24 |
) |
|
(0.29 |
) |
|
|
up |
|
n/a |
|
|
(0.21 |
) |
|
|
down |
|
n/a |
|
Diluted Loss per Common Share |
|
(0.24 |
) |
|
(0.29 |
) |
|
|
up |
|
n/a |
|
|
(0.21 |
) |
|
|
down |
|
n/a |
|
|
|||||||||||||||||||||
|
|
In thousands of U.S. dollars, except share data |
|
||||||||||||||||||
|
|
Non-GAAP(1)(3) |
|
||||||||||||||||||
|
|
Q4 2025 |
|
Q3 2025 |
|
Q/Q change |
|
Q4 2024(1) |
|
Y/Y change |
|
||||||||||
Adjusted Operating Loss |
|
(11,881 |
) |
|
(7,421 |
) |
|
|
down |
|
n/a |
|
|
(3,459 |
) |
|
|
down |
|
n/a |
|
Adjusted EBITDA |
|
(8,856 |
) |
|
(3,964 |
) |
|
|
down |
|
n/a |
|
|
337 |
|
|
|
down |
|
n/a |
|
Adjusted Income (Loss) |
|
(2,714 |
) |
|
(390 |
) |
|
|
down |
|
n/a |
|
|
5,751 |
|
|
|
down |
|
n/a |
|
Adjusted Income (Loss) per Common Share—Diluted |
|
(0.08 |
) |
|
(0.01 |
) |
|
|
down |
|
n/a |
|
|
0.15 |
|
|
|
down |
|
n/a |
|
|
|
|
|
In thousands of U.S dollars, except share data |
||||||||||||
|
|
|
|
GAAP(1) |
|
|||||||||||
|
|
|
|
2025 |
2024(1) |
|
Y/Y Change |
|||||||||
Consolidated Revenues |
|
|
178,860 |
|
196,425 |
|
|
down |
8.9 |
% |
||||||
Power Solutions business |
|
|
178,860 |
|
185,828 |
|
|
down |
3.7 |
% |
||||||
Power Analog Solutions |
|
|
160,477 |
|
166,804 |
|
|
down |
3.8 |
% |
||||||
Power IC |
|
|
18,383 |
|
19,024 |
|
|
down |
3.4 |
% |
||||||
Transitional Fab 3 foundry services(2) |
|
|
— |
|
|
|
10,597 |
|
|
n/a |
— |
|
||||
Consolidated Gross Profit Margin |
|
|
|
|
17.6 |
% |
|
19.7 |
% |
|
down |
2.1%pts |
||||
Power Solutions business |
|
|
|
|
17.6 |
% |
|
21.5 |
% |
|
down |
3.9%pts |
||||
Power Analog Solutions |
|
|
|
|
14.9 |
% |
|
18.9 |
% |
|
down |
4.0%pts |
||||
Power IC |
|
|
|
|
41.0 |
% |
|
44.4 |
% |
|
down |
3.4%pts |
||||
Transitional Fab 3 foundry services(2) |
|
|
|
|
|
|
-11.5 |
% |
|
n/a |
— |
|
||||
Operating Loss |
|
|
(35,860 |
) |
|
|
(25,973 |
) |
|
down |
n/a |
|
||||
Loss from continuing operations |
|
|
(14,249 |
) |
|
|
(27,310 |
) |
|
up |
n/a |
|
||||
Basic Loss per Common Share |
|
|
(0.39 |
) |
|
|
(0.72 |
) |
|
up |
n/a |
|
||||
Diluted Loss per Common Share |
|
|
(0.39 |
) |
|
|
(0.72 |
) |
|
up |
n/a |
|
||||
|
|
|
|
In thousands of U.S dollars, except share data |
||||||||||||||
|
|
|
|
Non-GAAP(1)(3) |
||||||||||||||
|
|
|
|
2025 |
|
2024(1) |
|
|
Y/Y Change |
|||||||||
Adjusted Operating Loss |
|
|
|
(28,488 |
) |
|
|
(19,087 |
) |
|
down |
n/a |
||||||
Adjusted EBITDA |
|
|
|
(15,567 |
) |
|
(4,241 |
) |
|
down |
n/a |
|||||||
Adjusted Loss |
|
|
|
(7,866 |
) |
|
|
(8,321 |
) |
|
up |
n/a |
||||||
Adjusted Loss per Common Share—Diluted |
|
|
|
(0.22 |
) |
|
(0.22 |
) |
|
up |
n/a |
|||||||
| (1) | GAAP and non-GAAP metrics summarized herein do not include any amounts relating to the Display business, which has been classified as discontinued operations from Q1 2025, and we have reclassified certain prior year amounts to conform to the current year's presentation. |
|
| (2) | Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as "Fab 3" ("Transitional Fab 3 Foundry Services"). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we had wound down these foundry services by the end of 2024. Because these foundry services during the wind-down period had still been provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we continued to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down was completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the Power Solutions business allows investors to better understand the results of our core PAS and Power IC businesses. |
|
| (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 loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release. |
Q1 2026 Financial Guidance
While actual results may vary, Magnachip currently expects the following:
- Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $44.0 to $48.0 million, up 13.4% sequentially and up 2.9% year-over-year at the mid-point. This compares with $40.6 million in Q4 2025 and $44.7 million in Q1 2025.
- Consolidated gross profit margin from continuing operations to be in the range of 14% to 16%, up from 9.3% in Q4 2025 but down from 20.9% in Q1 2025.
Q4 and Full Year 2025 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET today, Wednesday, March 4, 2026, 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-conf.media-server.com/register/BI9d3aea74bb7c44d78d19c946518cef3c
Safe Harbor for Forward-Looking Statements
Information in this press 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 first quarter 2026 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts including between Russia-Ukraine and between Israel, the United States and Iran, sustained military action and conflict in the Red Sea, global macroeconomic conditions resulting from trade and tariff actions instituted between the U.S. and other countries on Magnachip's future operating results and financial performance, and the potential impacts of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; geopolitical conflicts, including between Russia-Ukraine and between Israel, the United States and Iran and sustained military action and conflict in the Red Sea; disruptions or economic impact resulting from the United States government shutdown, including disruptions at U.S. government agencies caused by reduction in staffing, operations, funding shortages or other concerns that may prevent new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation of our customer's businesses may rely; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; the potential impact of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip's products; and other risks detailed from time to time in Magnachip's filings with the SEC, including our Form 10-K filed on March 14, 2025, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.
About Magnachip Semiconductor
Magnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a substantial number of registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||||
(In thousands of U.S. dollars, except share data) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||
Revenues: |
|
|
|
|
|
||||||||||||||
Net sales – Power Solutions business |
$ |
40,570 |
|
$ |
45,946 |
|
$ |
48,858 |
|
$ |
178,860 |
|
$ |
185,828 |
|
||||
Net sales – Transitional Fab 3 foundry services |
|
— |
|
|
— |
|
|
2,295 |
|
|
— |
|
|
10,597 |
|
||||
Total revenues |
|
40,570 |
|
|
45,946 |
|
|
51,153 |
|
|
178,860 |
|
|
196,425 |
|
||||
Cost of sales: |
|
|
|
|
|
||||||||||||||
Cost of sales – Power Solutions business |
|
36,792 |
|
|
37,405 |
|
|
37,530 |
|
|
147,467 |
|
|
145,884 |
|
||||
Cost of sales – Transitional Fab 3 foundry services |
|
— |
|
|
— |
|
|
2,547 |
|
|
— |
|
|
11,814 |
|
||||
Total cost of sales |
|
36,792 |
|
|
37,405 |
|
|
40,077 |
|
|
147,467 |
|
|
157,698 |
|
||||
Gross profit |
|
3,778 |
|
|
8,541 |
|
|
11,076 |
|
|
31,393 |
|
|
38,727 |
|
||||
Gross profit as a percentage of Power Solutions business net sales |
|
9.3 |
% |
|
18.6 |
% |
|
23.2 |
% |
|
17.6 |
% |
|
21.5 |
% |
||||
Gross profit as a percentage of total revenues |
|
9.3 |
% |
|
18.6 |
% |
|
21.7 |
% |
|
17.6 |
% |
|
19.7 |
% |
||||
Operating expenses: |
|
|
|
|
|
||||||||||||||
Selling, general and administrative expenses |
|
8,625 |
|
|
8,312 |
|
|
9,758 |
|
|
35,116 |
|
|
38,099 |
|
||||
Research and development expenses |
|
7,599 |
|
|
7,773 |
|
|
6,557 |
|
|
27,297 |
|
|
25,012 |
|
||||
Early termination and other charges |
|
— |
|
|
3,994 |
|
|
1,589 |
|
|
4,840 |
|
|
1,589 |
|
||||
Total operating expenses |
|
16,224 |
|
|
20,079 |
|
|
17,904 |
|
|
67,253 |
|
|
64,700 |
|
||||
Operating loss |
|
(12,446 |
) |
|
(11,538 |
) |
|
(6,828 |
) |
|
(35,860 |
) |
|
(25,973 |
) |
||||
Interest income |
|
1,246 |
|
|
1,255 |
|
|
2,106 |
|
|
5,363 |
|
|
8,320 |
|
||||
Interest expense |
|
(393 |
) |
|
(469 |
) |
|
(458 |
) |
|
(1,658 |
) |
|
(1,601 |
) |
||||
Foreign currency loss, net |
|
(6,393 |
) |
|
(4,280 |
) |
|
(13,352 |
) |
|
(281 |
) |
|
(16,740 |
) |
||||
Other income, net |
|
14 |
|
|
253 |
|
|
364 |
|
|
298 |
|
|
485 |
|
||||
Loss from continuing operations before income tax benefit, net |
|
(17,972 |
) |
|
(14,779 |
) |
|
(18,168 |
) |
|
(32,138 |
) |
|
(35,509 |
) |
||||
Income tax benefit, net |
|
(9,180 |
) |
|
(4,170 |
) |
|
(10,466 |
) |
|
(17,889 |
) |
|
(8,199 |
) |
||||
Loss from continuing operations |
|
(8,792 |
) |
|
(10,609 |
) |
|
(7,702 |
) |
|
(14,249 |
) |
|
(27,310 |
) |
||||
Income (Loss) from discontinued operations, net of tax |
|
713 |
|
|
(2,481 |
) |
|
(8,575 |
) |
|
(15,475 |
) |
|
(26,998 |
) |
||||
Net loss |
$ |
(8,079 |
) |
$ |
(13,090 |
) |
$ |
(16,277 |
) |
$ |
(29,724 |
) |
$ |
(54,308 |
) |
||||
Basic earnings (loss) per common share— |
|
|
|
|
|
||||||||||||||
Continuing operations |
$ |
(0.24 |
) |
$ |
(0.29 |
) |
$ |
(0.21 |
) |
$ |
(0.39 |
) |
$ |
(0.72 |
) |
||||
Discontinuing operations |
|
0.02 |
|
|
(0.07 |
) |
|
(0.23 |
) |
|
(0.43 |
) |
|
(0.72 |
) |
||||
Total |
$ |
(0.22 |
) |
$ |
(0.36 |
) |
$ |
(0.44 |
) |
$ |
(0.82 |
) |
$ |
(1.44 |
) |
||||
Diluted earnings (loss) per common share— |
|
|
|
|
|
||||||||||||||
Continuing operations |
$ |
(0.24 |
) |
$ |
(0.29 |
) |
$ |
(0.21 |
) |
$ |
(0.39 |
) |
$ |
(0.72 |
) |
||||
Discontinuing operations |
|
0.02 |
|
|
(0.07 |
) |
|
(0.23 |
) |
|
(0.43 |
) |
|
(0.72 |
) |
||||
Total |
$ |
(0.22 |
) |
$ |
(0.36 |
) |
$ |
(0.44 |
) |
$ |
(0.82 |
) |
$ |
(1.44 |
) |
||||
Weighted average number of shares— |
|
|
|
|
|
||||||||||||||
Basic |
|
35,979,697 |
|
|
35,934,406 |
|
|
36,921,300 |
|
|
36,218,138 |
|
|
37,774,280 |
|
||||
Diluted |
|
35,979,697 |
|
|
35,934,406 |
|
|
36,921,300 |
|
|
36,218,138 |
|
|
37,774,280 |
|
||||
| _________________________________________ | ||
| (1) | We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025. |
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||
(In thousands of U.S. dollars, except share data) |
||||||||||
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
||||
|
December 31, 2025 |
December 31, 2024 |
||||||||
Assets |
|
|
|
|
|
|||||
Current assets |
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
103,756 |
|
|
|
$ |
138,610 |
|
|
Accounts receivable, net |
|
|
26,022 |
|
|
|
|
28,402 |
|
|
Inventories, net |
|
|
34,151 |
|
|
|
|
30,535 |
|
|
Other receivables |
|
|
2,882 |
|
|
|
|
4,444 |
|
|
Prepaid expenses |
|
|
5,062 |
|
|
|
|
10,379 |
|
|
Hedge collateral |
|
|
1,200 |
|
|
|
|
2,080 |
|
|
Other current assets |
|
|
3,782 |
|
|
|
|
4,779 |
|
|
Total current assets |
|
|
176,855 |
|
|
|
|
219,229 |
|
|
Property, plant and equipment, net |
|
|
100,204 |
|
|
|
|
81,463 |
|
|
Operating lease right-of-use assets |
|
|
2,070 |
|
|
|
|
3,107 |
|
|
Intangible assets, net |
|
|
454 |
|
|
|
|
507 |
|
|
Long-term prepaid expenses, net |
|
|
584 |
|
|
|
|
165 |
|
|
Deferred income taxes |
|
|
64,248 |
|
|
|
|
52,889 |
|
|
Other non-current assets |
|
|
7,114 |
|
|
|
|
21,956 |
|
|
Total assets |
|
$ |
351,529 |
|
|
|
$ |
379,316 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|||||
Current liabilities |
|
|
|
|
|
|||||
Accounts payable |
|
$ |
20,848 |
|
|
|
$ |
21,642 |
|
|
Other accounts payable |
|
|
11,444 |
|
|
|
|
10,764 |
|
|
Accrued expenses |
|
|
6,929 |
|
|
|
|
8,648 |
|
|
Accrued income taxes |
|
|
81 |
|
|
|
|
56 |
|
|
Operating lease liabilities |
|
|
1,427 |
|
|
|
|
1,393 |
|
|
Other current liabilities |
|
|
2,681 |
|
|
|
|
3,765 |
|
|
Total current liabilities |
|
|
43,410 |
|
|
|
|
46,268 |
|
|
Long-term borrowings |
|
|
44,599 |
|
|
|
|
27,211 |
|
|
Accrued severance benefits, net |
|
|
11,502 |
|
|
|
|
17,094 |
|
|
Non-current operating lease liabilities |
|
|
690 |
|
|
|
|
1,823 |
|
|
Other non-current liabilities |
|
|
3,078 |
|
|
|
|
10,123 |
|
|
Total liabilities |
|
|
103,279 |
|
|
|
|
102,519 |
|
|
Commitments and contingencies |
|
|
|
|
|
|||||
Stockholders' equity |
|
|
|
|
|
|||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 58,027,696 shares issued and 36,219,100 outstanding at December 31, 2025 and 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024 |
|
|
579 |
|
|
|
|
574 |
|
|
Additional paid-in capital |
|
|
281,537 |
|
|
|
|
279,423 |
|
|
Retained earnings |
|
|
214,852 |
|
|
|
|
244,576 |
|
|
Treasury stock, 21,808,596 shares at December 31, 2025 and 20,586,389 shares at December 31, 2024, respectively |
|
|
(229,910 |
) |
|
|
|
(225,883 |
) |
|
Accumulated other comprehensive loss |
|
|
(18,808 |
) |
|
|
|
(21,893 |
) |
|
Total stockholders' equity |
|
|
248,250 |
|
|
|
|
276,797 |
|
|
Total liabilities and stockholders' equity |
|
$ |
351,529 |
|
|
|
$ |
379,316 |
|
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||||||
(In thousands of U.S. dollars) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
Three Months Ended |
Year Ended |
|
|||||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
|
|||||||||||||||
Cash flows from operating activities |
|
|
|
|
|||||||||||||||
Net loss |
$ |
(8,079 |
) |
$ |
(29,724 |
) |
$ |
(54,308 |
) |
|
|||||||||
Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
|
|||||||||||||||
Depreciation and amortization |
|
3,023 |
|
|
12,961 |
|
|
16,161 |
|
|
|||||||||
Provision for severance benefits |
|
771 |
|
|
3,639 |
|
|
8,020 |
|
|
|||||||||
Loss (gain) on foreign currency, net |
|
9,765 |
|
|
(847 |
) |
|
32,851 |
|
|
|||||||||
Provision (reversal) for inventory reserves |
|
952 |
|
|
2,871 |
|
|
(529 |
) |
|
|||||||||
Stock-based compensation |
|
565 |
|
|
2,180 |
|
|
6,214 |
|
|
|||||||||
Impairment charges |
|
— |
|
|
12,424 |
|
|
4,637 |
|
|
|||||||||
Deferred income tax assets |
|
(9,551 |
) |
|
(10,120 |
) |
|
(7,034 |
) |
|
|||||||||
Others, net |
|
105 |
|
|
325 |
|
|
799 |
|
|
|||||||||
Changes in operating assets and liabilities |
|
|
|
|
|||||||||||||||
Accounts receivable, net |
|
4,620 |
|
|
(2,990 |
) |
|
2,719 |
|
|
|||||||||
Inventories |
|
1,328 |
|
|
(5,803 |
) |
|
(1,583 |
) |
|
|||||||||
Other receivables |
|
1,077 |
|
|
(210 |
) |
|
(115 |
) |
|
|||||||||
Prepaid expenses |
|
1,656 |
|
|
6,981 |
|
|
8,877 |
|
|
|||||||||
Other current assets |
|
6,162 |
|
|
2,915 |
|
|
1,753 |
|
|
|||||||||
Accounts payable |
|
3,607 |
|
|
4,248 |
|
|
(1,971 |
) |
|
|||||||||
Other accounts payable |
|
(2,190 |
) |
|
(8,993 |
) |
|
(14,160 |
) |
|
|||||||||
Accrued expenses |
|
(4,587 |
) |
|
(2,662 |
) |
|
(607 |
) |
|
|||||||||
Accrued income taxes |
|
39 |
|
|
23 |
|
|
(1,432 |
) |
|
|||||||||
Other current liabilities |
|
(516 |
) |
|
(839 |
) |
|
(1,161 |
) |
|
|||||||||
Other non-current liabilities |
|
(137 |
) |
|
(185 |
) |
|
(335 |
) |
|
|||||||||
Payment of severance benefits |
|
(2,898 |
) |
|
(13,567 |
) |
|
(2,407 |
) |
|
|||||||||
Others, net |
|
(281 |
) |
|
3,165 |
|
|
(2,522 |
) |
|
|||||||||
Net cash provided by (used in) operating activities |
|
5,431 |
|
|
(24,208 |
) |
|
(6,133 |
) |
|
|||||||||
Cash flows from investing activities |
|
|
|
|
|||||||||||||||
Proceeds from settlement of hedge collateral |
|
1,922 |
|
|
4,159 |
|
|
627 |
|
|
|||||||||
Payment of hedge collateral |
|
(3,159 |
) |
|
(3,159 |
) |
|
(1,706 |
) |
|
|||||||||
Proceeds from disposal of plant, property and equipment |
|
11 |
|
|
565 |
|
|
— |
|
|
|||||||||
Purchase of property, plant and equipment |
|
(10,253 |
) |
|
(29,992 |
) |
|
(11,600 |
) |
|
|||||||||
Payment for intellectual property registration |
|
(25 |
) |
|
(207 |
) |
|
(316 |
) |
|
|||||||||
Collection of guarantee deposits |
|
106 |
|
|
4,380 |
|
|
3,535 |
|
|
|||||||||
Payment of guarantee deposits |
|
— |
|
|
(355 |
) |
|
(2,175 |
) |
|
|||||||||
Collection of short-term financial instruments |
|
— |
|
|
— |
|
|
30,000 |
|
|
|||||||||
Purchase of short-term financial instruments |
|
— |
|
|
— |
|
|
(30,000 |
) |
|
|||||||||
Others, net |
|
— |
|
|
180 |
|
|
(37 |
) |
|
|||||||||
Net cash used in investing activities |
|
(11,398 |
) |
|
(24,429 |
) |
|
(11,672 |
) |
|
|||||||||
Cash flows from financing activities |
|
|
|
|
|||||||||||||||
Proceeds from long-term borrowings |
|
6,405 |
|
|
17,016 |
|
|
30,059 |
|
|
|||||||||
Acquisition of treasury stock |
|
(41 |
) |
|
(4,381 |
) |
|
(12,891 |
) |
|
|||||||||
Repayment of financing related to water treatment facility arrangement |
|
(111 |
) |
|
(452 |
) |
|
(472 |
) |
|
|||||||||
Repayment of principal portion of finance lease liabilities |
|
(40 |
) |
|
(161 |
) |
|
(139 |
) |
|
|||||||||
Net cash provided by financing activities |
|
6,213 |
|
|
12,022 |
|
|
16,557 |
|
|
|||||||||
Effect of exchange rates on cash and cash equivalents |
|
(4,495 |
) |
|
1,761 |
|
|
(18,234 |
) |
|
|||||||||
Net decrease in cash and cash equivalents |
|
(4,249 |
) |
|
(34,854 |
) |
|
(19,482 |
) |
|
|||||||||
Cash and cash equivalents |
|
|
|
|
|||||||||||||||
Beginning of the period |
|
108,005 |
|
|
138,610 |
|
|
158,092 |
|
|
|||||||||
End of the period |
$ |
103,756 |
|
$ |
103,756 |
|
$ |
138,610 |
|
|
|||||||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||||
RECONCILIATION OF OPERATING LOSS FROM CONTINUING OPERATIONS TO ADJUSTED OPERATING LOSS FROM CONTINUING OPERATIONS |
||||||||||||||||||||||||
(In thousands of U.S. dollars) |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
December 31,
|
|||||||||||||
Operating loss |
|
$ |
(12,446 |
) |
|
$ |
(11,538 |
) |
|
$ |
(6,828 |
) |
|
$ |
(35,860 |
) |
|
|
$ |
(25,973 |
) |
|||
Adjustments: |
|
|
|
|
|
|||||||||||||||||||
Equity-based compensation expense |
|
|
565 |
|
|
|
123 |
|
|
1,780 |
|
|
|
2,532 |
|
|
|
|
5,297 |
|
||||
Early termination and other charges |
|
|
— |
|
|
|
3,994 |
|
|
1,589 |
|
|
|
4,840 |
|
|
|
|
1,589 |
|
||||
Adjusted Operating Loss |
|
$ |
(11,881 |
) |
|
$ |
(7,421 |
) |
|
$ |
(3,459 |
) |
|
$ |
(28,488 |
) |
|
$ |
(19,087 |
) |
||||
| ______________________________ | |||
| (1) | We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025. | ||
We present Adjusted Operating Loss from continuing operations as a supplemental measure of our performance. We define Adjusted Operating Loss from continuing operations for the periods indicated as operating loss from continuing operations adjusted to exclude (i) Equity-based compensation expense and (ii) Early termination and other charges. |
|||
For the year ended December 31, 2025, we recorded in our consolidated statement of operations $2,599 thousand of termination related charges in connection with the voluntary resignation program that we executed during the third quarter of 2025. For the same period, we also recorded $1,745 thousand of certain executive separation benefits and $496 thousand of one-time employee incentives. |
|||
For the year ended December 31, 2024, we recorded $1,589 thousand of one-time cumulative financial impact in connection with certain employee benefits. |
|||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||
RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS |
||||||||||||||||||||
(In thousands of U.S. dollars, except share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|
||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
|
||||||||||||||
Loss from continuing operations |
$ |
(8,792 |
) |
$ |
(10,609 |
) |
$ |
(7,702 |
) |
$ |
(14,249 |
) |
$ |
(27,310 |
) |
|
||||
Adjustments: |
|
|
|
|
|
|
||||||||||||||
Interest income |
|
(1,246 |
) |
|
(1,255 |
) |
|
(2,106 |
) |
|
(5,363 |
) |
|
(8,320 |
) |
|
||||
Interest expense |
|
393 |
|
|
469 |
|
|
458 |
|
|
1,658 |
|
|
1,601 |
|
|
||||
Income tax benefit, net |
|
(9,180 |
) |
|
(4,170 |
) |
|
(10,466 |
) |
|
(17,889 |
) |
|
(8,199 |
) |
|
||||
Depreciation and amortization |
|
3,019 |
|
|
3,204 |
|
|
3,451 |
|
|
12,580 |
|
|
14,438 |
|
|
||||
EBITDA – continuing operations |
|
(15,806 |
) |
|
(12,361 |
) |
|
(16,365 |
) |
|
(23,263 |
) |
|
(27,790 |
) |
|
||||
Equity-based compensation expense |
|
565 |
|
|
123 |
|
|
1,780 |
|
|
2,532 |
|
|
5,297 |
|
|
||||
Foreign currency loss, net |
|
6,393 |
|
|
4,280 |
|
|
13,352 |
|
|
281 |
|
|
16,740 |
|
|
||||
Derivative valuation loss (gain), net |
|
(8 |
) |
|
— |
|
|
(19 |
) |
|
43 |
|
|
(77 |
) |
|
||||
Early termination and other charges |
|
— |
|
|
3,994 |
|
|
1,589 |
|
|
4,840 |
|
|
1,589 |
|
|
||||
Adjusted EBITDA – continuing operations |
$ |
(8,856 |
) |
$ |
(3,964 |
) |
$ |
337 |
|
$ |
(15,567 |
) |
$ |
(4,241 |
) |
|
||||
Loss from continuing operations |
$ |
(8,792 |
) |
$ |
(10,609 |
) |
$ |
(7,702 |
) |
$ |
(14,249 |
) |
$ |
(27,310 |
) |
|
||||
Adjustments: |
|
|
|
|
|
|
||||||||||||||
Equity-based compensation expense |
|
565 |
|
|
123 |
|
|
1,780 |
|
|
2,532 |
|
|
5,297 |
|
|
||||
Foreign currency loss, net |
|
6,393 |
|
|
4,280 |
|
|
13,352 |
|
|
281 |
|
|
16,740 |
|
|
||||
Derivative valuation loss (gain), net |
|
(8 |
) |
|
— |
|
|
(19 |
) |
|
43 |
|
|
(77 |
) |
|
||||
Early termination and other charges |
|
— |
|
|
3,994 |
|
|
1,589 |
|
|
4,840 |
|
|
1,589 |
|
|
||||
Income tax effect on non-GAAP adjustments |
|
(872 |
) |
|
1,822 |
|
|
(3,249 |
) |
|
(1,313 |
) |
|
(4,560 |
) |
|
||||
Adjusted Income (Loss) – continuing operations |
$ |
(2,714 |
) |
$ |
(390 |
) |
$ |
5,751 |
|
$ |
(7,866 |
) |
$ |
(8,321 |
) |
|
||||
Adjusted Income (Loss) – continuing operations per common share— |
|
|
|
|
|
|
||||||||||||||
- Basic |
$ |
(0.08 |
) |
$ |
(0.01 |
) |
$ |
0.16 |
|
$ |
(0.22 |
) |
$ |
(0.22 |
) |
|
||||
- Diluted |
$ |
(0.08 |
) |
$ |
(0.01 |
) |
$ |
0.15 |
|
$ |
(0.22 |
) |
$ |
(0.22 |
) |
|
||||
Weighted average number of shares – basic |
|
35,979,697 |
|
|
35,934,406 |
|
|
36,921,300 |
|
|
36,218,138 |
|
|
37,774,280 |
|
|
||||
Weighted average number of shares – diluted |
|
35,979,697 |
|
|
35,934,406 |
|
|
37,738,210 |
|
|
36,218,138 |
|
|
37,774,280 |
|
|
||||
| ______________________________ | |||
| (1) | We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025. | ||
We present Adjusted EBITDA from continuing operations and Adjusted Income (Loss) from continuing operations as supplemental measures of our performance. We define Adjusted EBITDA from continuing operations for the periods indicated as EBITDA – continuing operations (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net, (iii) Derivative valuation loss (gain), net and (iv) Early termination and other charges. EBITDA – continuing operations for the periods indicated is defined as loss from continuing operations before interest income, interest expense, income tax benefit, net and depreciation and amortization. |
|||
We prepare Adjusted Income (Loss) from continuing operations by adjusting loss from continuing operations 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 Income (Loss) from continuing operations is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Income (Loss) from continuing operations for the periods as loss from continuing operations, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net, (iii) Derivative valuation loss (gain), net, (iv) Early termination and other charges, and (v) Income tax effect on non-GAAP adjustments. |
|||
For the year ended December 31, 2025, we recorded in our consolidated statement of operations $2,599 thousand of termination related charges in connection with the voluntary resignation program that we executed during the third quarter of 2025. For the same period, we also recorded $1,745 thousand of certain executive separation benefits and $496 thousand of one-time employee incentives. |
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For the year ended December 31, 2024, we recorded $1,589 thousand of one-time cumulative financial impact in connection with certain employee benefits. |
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Mike Bishop
Bishop IR, LLC
Tel. +1 (415) 891-9633
[email protected]