Q3 Results Summary
- Consolidated revenue from continuing operations (which includes Power Analog Solutions ("PAS") and Power IC ("PIC") businesses) was $45.9 million, approximately at the mid-point of our guidance range of $44.0 to $48.0 million.
- Consolidated gross profit margin from continuing operations of 18.6% was at the low end of our guidance range of 18.5% to 20.5%.
- Product revenue from our Communications segment grew 34% sequentially and 95% year over year.
Recent Highlights
- Executed multiple operating expense cost reduction programs, including a headcount reduction program, which are expected to generate approximately $2.5 million in annualized savings.
- Implemented a plan to reduce the capital expenditure investments for the Gumi fab upgrade by more than 50% over the next two years, compared to the previously expected range of $65 to $70 million.
- Launched 30 new-generation PAS products in the first nine months of 2025, with plans to launch at least additional 20 new-generation products in fourth quarter 2025.
- Signed a strategic agreement to expand our industrial business based on a jointly developed IGBT technology with Hyundai Mobis.
Magnachip Semiconductor Corporation (NYSE:MX) ("Magnachip" or the "Company") today announced financial results for the third quarter 2025.
Camillo Martino, Magnachip's CEO said, "Our top priority is to stabilize our financial position and establish a solid foundation for business recovery. At the same time, we have restructured our go-to-market organization and we are revitalizing our product portfolio to enhance our competitiveness, particularly in China. In the first three quarters of 2025, we launched 30 new-generation products, compared to only two in the first three quarters of 2024. We currently plan to launch at least another 20 new-generation products in the fourth quarter of 2025, bringing the total for 2025 to at least 50 new-generation products, in comparison to only four in all of 2024."
Mr. Martino added, "We recognize that we are entering a challenging period ahead as we right-size as a pure-play power products company. However, we believe that we are moving in the right direction and are committed to exploring all strategic options to position Magnachip for success."
Q3 2025 Financial Highlights
|
In thousands of U.S. dollars, except share data |
|||||||||||||||||||||
|
|
GAAP(1) |
|
|||||||||||||||||||
|
|
Q3 2025 |
|
|
Q2 2025(1) |
|
|
Q/Q change |
|
|
Q3 2024(1) |
|
Y/Y change |
|
||||||||
Consolidated Revenues |
|
45,946 |
|
|
47,622 |
|
down | 3.5 |
% |
|
55,434 |
|
|
down |
17.1 |
% |
||||||
Power solutions business |
|
45,946 |
|
47,622 |
|
|
down |
|
|
3.5 |
% |
|
52,994 |
|
|
|
down |
|
|
13.3 |
% |
|
Power Analog Solutions |
|
41,548 |
|
|
42,261 |
|
|
down |
|
|
1.7 |
% |
|
47,574 |
|
|
|
down |
|
|
12.7 |
% |
Power IC |
|
4,398 |
|
|
5,361 |
|
|
down |
|
|
18.0 |
% |
|
5,420 |
|
|
|
down |
|
|
18.9 |
% |
Transitional Fab 3 foundry services(2) |
|
— |
|
|
— |
|
|
n/a |
|
|
— |
|
2,440 |
|
|
|
n/a |
|
|
— |
||
Consolidated Gross Profit Margin |
|
18.6 |
% |
|
20.4 |
% |
|
down | 1.8 |
%pts |
|
20.8 |
% |
|
down |
2.2 |
%pts |
|||||
Power solutions business |
|
18.6 |
% |
|
20.4 |
% |
|
down |
|
|
1.8 |
%pts |
|
22.0 |
% |
|
|
down |
|
|
3.4 |
%pts |
Power Analog Solutions |
|
16.0 |
% |
|
18.2 |
% |
|
down |
|
|
2.2 |
%pts |
|
19.4 |
% |
|
|
down |
|
|
3.4 |
%pts |
Power IC |
|
43.2 |
% |
|
37.4 |
% |
|
up |
|
|
5.8 |
%pts |
|
44.6 |
% |
|
|
down |
|
|
1.4 |
%pts |
Transitional Fab 3 foundry services(2) |
|
— |
|
|
— |
|
|
n/a |
|
|
— |
|
|
(6.5 |
)% |
|
|
n/a |
|
|
— |
|
Operating Loss |
|
(11,538 |
) |
|
(6,598 |
) |
|
down |
|
|
n/a |
|
|
(4,487 |
) |
|
|
down |
|
|
n/a |
|
Income (Loss) from continuing operations |
|
(10,609 |
) |
|
9,203 |
|
|
down |
|
|
n/a |
|
|
(3,921 |
) |
|
|
down |
|
|
n/a |
|
Basic Earnings (Loss) per Common Share |
|
(0.29 |
) |
|
0.26 |
|
|
down |
|
|
n/a |
|
|
(0.11 |
) |
|
|
down |
|
|
n/a |
|
Diluted Earnings (Loss) per Common Share |
|
(0.29 |
) |
|
0.25 |
|
|
down |
|
|
n/a |
|
|
(0.11 |
) |
|
|
down |
|
|
n/a |
|
|
|
In thousands of U.S. dollars, except share data |
|
|||||||||||||||||||
|
|
Non-GAAP(1)(3) |
|
|||||||||||||||||||
|
|
Q3 2025 |
|
|
Q2 2025(1) |
|
|
Q/Q change |
|
|
Q3 2024(1) |
|
Y/Y change |
|
||||||||
Adjusted Operating Loss |
|
(7,421 |
) |
|
(4,776 |
) |
|
down |
|
|
n/a |
|
|
(2,851 |
) |
|
|
down |
|
|
n/a |
|
Adjusted EBITDA |
|
(3,964 |
) |
|
(1,542 |
) |
|
down |
|
|
n/a |
|
|
779 |
|
|
|
down |
|
|
n/a |
|
Adjusted Loss |
|
(390 |
) |
|
(1,978 |
) |
|
up |
|
|
n/a |
|
|
(7,623 |
) |
|
|
up |
|
|
n/a |
|
Adjusted Loss per Common Share—Diluted |
|
(0.01 |
) |
|
(0.05 |
) |
|
up |
|
|
n/a |
|
|
(0.20 |
) |
|
|
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. |
Q4 and Full-year 2025 Financial Guidance
While actual results may vary, Magnachip currently expects the following:
For Q4 2025:
- Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $38.5 to $42.5 million, down 11.9% sequentially and down 17.1% year-over-year at the mid-point on an equivalent basis due in part to a one-time $2.5 million incentive program we expect to execute in Q4 to reduce higher levels of inventory in the channel. This compares with equivalent revenue of $45.9 million in Q3 2025 and $48.9 million in Q4 2024.
- Consolidated gross profit margin from continuing operations to be in the range of 8% to 10% due to the above-described one-time incentive as well as a lower fab utilization rate. We expect this incentive program to be a 600 basis point negative impact. This compares with equivalent gross profit margin of 18.6% in Q3 2025 and 23.2% in Q4 2024.
For the full-year 2025:
- Consolidated revenue from continuing operations is expected to be down by 3.8% year-over-year at the mid-point of Q4 revenue guidance on an equivalent basis. The equivalent revenue in 2024 was $185.8 million.
- Consolidated gross profit margin from continuing operations is expected to be between 17% to 18% and the above-described one-time incentive in Q4 is expected to have an about 100 basis point negative impact in the full-year consolidated gross profit margin. The equivalent gross profit margin was 21.5% in 2024.
Q3 2025 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Monday, November 3, 2025, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors' section of the Company's website at www.magnachip.com.
Online registration: https://register-conf.media-server.com/register/BI60394e1855934e79b00744c413a48403
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 fourth quarter and full year 2025 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-Hamas 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-Hamas 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 portfolio of approximately 1,000 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip's website is not a part of, and is not incorporated into, this release.
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,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Revenues: |
|
|
|
|
|
|||||||||||||||
Net sales – Power solutions business |
$ |
45,946 |
|
$ |
47,622 |
|
$ |
52,994 |
|
$ |
138,290 |
|
$ |
136,970 |
|
|||||
Net sales – Transitional Fab 3 foundry services |
|
— |
|
|
— |
|
|
2,440 |
|
|
— |
|
|
8,302 |
|
|||||
Total revenues |
|
45,946 |
|
|
47,622 |
|
|
55,434 |
|
|
138,290 |
|
|
145,272 |
|
|||||
Cost of sales: |
|
|
|
|
|
|||||||||||||||
Cost of sales – Power solutions business |
|
37,405 |
|
|
37,910 |
|
|
41,329 |
|
|
110,675 |
|
|
108,354 |
|
|||||
Cost of sales – Transitional Fab 3 foundry services |
|
— |
|
|
— |
|
|
2,599 |
|
|
— |
|
|
9,267 |
|
|||||
Total cost of sales |
|
37,405 |
|
|
37,910 |
|
|
43,928 |
|
|
110,675 |
|
|
117,621 |
|
|||||
Gross profit |
|
8,541 |
|
|
9,712 |
|
|
11,506 |
|
|
27,615 |
|
|
27,651 |
|
|||||
Gross profit as a percentage of Power solutions business net sales |
|
18.6 |
% |
|
20.4 |
% |
|
22.0 |
% |
|
20.0 |
% |
|
20.9 |
% |
|||||
Gross profit as a percentage of total revenues |
|
18.6 |
% |
|
20.4 |
% |
|
20.8 |
% |
|
20.0 |
% |
|
19.0 |
% |
|||||
Operating expenses: |
|
|
|
|
|
|||||||||||||||
Selling, general and administrative expenses |
|
8,312 |
|
|
8,976 |
|
|
9,521 |
|
|
26,491 |
|
|
28,341 |
|
|||||
Research and development expenses |
|
7,773 |
|
|
6,488 |
|
|
6,472 |
|
|
19,698 |
|
|
18,455 |
|
|||||
Early termination and other charges |
|
3,994 |
|
|
846 |
|
|
— |
|
|
4,840 |
|
|
— |
|
|||||
Total operating expenses |
|
20,079 |
|
|
16,310 |
|
|
15,993 |
|
|
51,029 |
|
|
46,796 |
|
|||||
Operating loss |
|
(11,538 |
) |
|
(6,598 |
) |
|
(4,487 |
) |
|
(23,414 |
) |
|
(19,145 |
) |
|||||
Interest income |
|
1,255 |
|
|
1,322 |
|
|
1,939 |
|
|
4,117 |
|
|
6,214 |
|
|||||
Interest expense |
|
(469 |
) |
|
(373 |
) |
|
(472 |
) |
|
(1,265 |
) |
|
(1,143 |
) |
|||||
Foreign currency gain (loss), net |
|
(4,280 |
) |
|
10,797 |
|
|
5,247 |
|
|
6,112 |
|
|
(3,388 |
) |
|||||
Other income (loss), net |
|
253 |
|
|
(83 |
) |
|
(31 |
) |
|
284 |
|
|
121 |
|
|||||
Income (Loss) from continuing operations before income tax expense (benefit), net |
|
(14,779 |
) |
|
5,065 |
|
|
2,196 |
|
|
(14,166 |
) |
|
(17,341 |
) |
|||||
Income tax expense (benefit), net |
|
(4,170 |
) |
|
(4,138 |
) |
|
6,117 |
|
|
(8,709 |
) |
|
2,267 |
|
|||||
Income (Loss) from continuing operations |
|
(10,609 |
) |
|
9,203 |
|
|
(3,921 |
) |
|
(5,457 |
) |
|
(19,608 |
) |
|||||
Loss from discontinued operations, net of tax |
|
(2,481 |
) |
|
(8,880 |
) |
|
(5,696 |
) |
|
(16,188 |
) |
|
(18,423 |
) |
|||||
Net income (loss) |
$ |
(13,090 |
) |
$ |
323 |
|
$ |
(9,617 |
) |
$ |
(21,645 |
) |
$ |
(38,031 |
) |
|||||
Basic earnings (loss) per common share— |
|
|
|
|
|
|||||||||||||||
Continuing operations |
$ |
(0.29 |
) |
$ |
0.26 |
|
$ |
(0.11 |
) |
$ |
(0.15 |
) |
$ |
(0.52 |
) |
|||||
Discontinuing operations |
|
(0.07 |
) |
|
(0.25 |
) |
|
(0.15 |
) |
|
(0.45 |
) |
|
(0.48 |
) |
|||||
Total |
$ |
(0.36 |
) |
$ |
0.01 |
|
$ |
(0.26 |
) |
$ |
(0.60 |
) |
$ |
(1.00 |
) |
|||||
Diluted earnings (loss) per common share— |
|
|
|
|
|
|||||||||||||||
Continuing operations |
$ |
(0.29 |
) |
$ |
0.25 |
|
$ |
(0.11 |
) |
$ |
(0.15 |
) |
$ |
(0.52 |
) |
|||||
Discontinuing operations |
|
(0.07 |
) |
|
(0.24 |
) |
|
(0.15 |
) |
|
(0.45 |
) |
|
(0.48 |
) |
|||||
Total |
$ |
(0.36 |
) |
$ |
0.01 |
|
$ |
(0.26 |
) |
$ |
(0.60 |
) |
$ |
(1.00 |
) |
|||||
Weighted average number of shares— |
|
|
|
|
|
|||||||||||||||
Basic |
|
35,934,406 |
|
|
36,083,703 |
|
|
37,468,849 |
|
|
36,298,491 |
|
|
38,060,682 |
|
|||||
Diluted |
|
35,934,406 |
|
|
36,768,647 |
|
|
37,468,849 |
|
|
36,298,491 |
|
|
38,060,682 |
|
|||||
| _______________ | ||
| (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) |
||||||||
|
|
|
|
|
||||
|
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
|
$ |
108,005 |
|
|
$ |
138,610 |
|
Accounts receivable, net |
|
|
31,431 |
|
|
|
28,402 |
|
Inventories, net |
|
|
37,375 |
|
|
|
30,535 |
|
Other receivables |
|
|
4,155 |
|
|
|
4,444 |
|
Prepaid expenses |
|
|
6,022 |
|
|
|
10,379 |
|
Hedge collateral |
|
|
— |
|
|
|
2,080 |
|
Other current assets |
|
|
10,375 |
|
|
|
4,779 |
|
Total current assets |
|
|
197,363 |
|
|
|
219,229 |
|
Property, plant and equipment, net |
|
|
94,918 |
|
|
|
81,463 |
|
Operating lease right-of-use assets |
|
|
2,423 |
|
|
|
3,107 |
|
Intangible assets, net |
|
|
498 |
|
|
|
507 |
|
Long-term prepaid expenses, net |
|
|
590 |
|
|
|
165 |
|
Deferred income taxes |
|
|
55,573 |
|
|
|
52,889 |
|
Other non-current assets |
|
|
8,241 |
|
|
|
21,956 |
|
Total assets |
|
$ |
359,606 |
|
|
$ |
379,316 |
|
Liabilities and Stockholders' Equity |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
|
$ |
17,546 |
|
|
$ |
21,642 |
|
Other accounts payable |
|
|
12,334 |
|
|
|
10,764 |
|
Accrued expenses |
|
|
12,019 |
|
|
|
8,648 |
|
Accrued income taxes |
|
|
44 |
|
|
|
56 |
|
Operating lease liabilities |
|
|
1,428 |
|
|
|
1,393 |
|
Other current liabilities |
|
|
2,308 |
|
|
|
3,765 |
|
Total current liabilities |
|
|
45,679 |
|
|
|
46,268 |
|
Long-term borrowings |
|
|
38,935 |
|
|
|
27,211 |
|
Accrued severance benefits, net |
|
|
14,213 |
|
|
|
17,094 |
|
Non-current operating lease liabilities |
|
|
1,018 |
|
|
|
1,823 |
|
Other non-current liabilities |
|
|
4,412 |
|
|
|
10,123 |
|
Total liabilities |
|
|
104,257 |
|
|
|
102,519 |
|
Commitments and contingencies |
|
|
|
|||||
Stockholders' equity |
|
|
|
|||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,674,256 shares issued and 35,948,422 outstanding at September 30, 2025 and 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024 |
|
|
576 |
|
|
|
574 |
|
Additional paid-in capital |
|
|
280,975 |
|
|
|
279,423 |
|
Retained earnings |
|
|
222,931 |
|
|
|
244,576 |
|
Treasury stock, 21,725,834 shares at September 30, 2025 and 20,586,389 shares at December 31, 2024, respectively |
|
|
(229,700 |
) |
|
|
(225,883 |
) |
Accumulated other comprehensive loss |
|
|
(19,433 |
) |
|
|
(21,893 |
) |
Total stockholders' equity |
|
|
255,349 |
|
|
|
276,797 |
|
Total liabilities and stockholders' equity |
|
$ |
359,606 |
|
|
$ |
379,316 |
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited) |
||||||||||||
Three Months
|
Nine Months
|
|||||||||||
|
September 30,
|
September 30,
|
September 30,
|
|||||||||
Cash flows from operating activities |
|
|
|
|||||||||
Net loss |
$ |
(13,090 |
) |
$ |
(21,645 |
) |
$ |
(38,031 |
) |
|||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|||||||||
Depreciation and amortization |
|
3,277 |
|
|
9,938 |
|
|
12,171 |
|
|||
Provision for severance benefits |
|
693 |
|
|
2,868 |
|
|
4,552 |
|
|||
Loss (gain) on foreign currency, net |
|
7,473 |
|
|
(10,612 |
) |
|
6,140 |
|
|||
Provision (reversal) for inventory reserves |
|
1,074 |
|
|
1,919 |
|
|
(1,615 |
) |
|||
Stock-based compensation |
|
123 |
|
|
1,615 |
|
|
4,093 |
|
|||
Impairment charges |
|
5,062 |
|
|
12,424 |
|
|
— |
|
|||
Deferred income tax assets |
|
80 |
|
|
(569 |
) |
|
3,111 |
|
|||
Other, net |
|
(256 |
) |
|
220 |
|
|
552 |
|
|||
Changes in operating assets and liabilities |
|
|
|
|||||||||
Accounts receivable, net |
|
(3,010 |
) |
|
(7,610 |
) |
|
3,560 |
|
|||
Inventories |
|
(2,152 |
) |
|
(7,131 |
) |
|
(2,365 |
) |
|||
Other receivables |
|
4,548 |
|
|
(1,287 |
) |
|
(1,030 |
) |
|||
Prepaid expenses |
|
704 |
|
|
5,325 |
|
|
5,645 |
|
|||
Other current assets |
|
(3,922 |
) |
|
(3,247 |
) |
|
1,155 |
|
|||
Accounts payable |
|
(1,918 |
) |
|
641 |
|
|
619 |
|
|||
Other accounts payable |
|
(1,831 |
) |
|
(6,803 |
) |
|
(10,197 |
) |
|||
Accrued expenses |
|
3,947 |
|
|
1,925 |
|
|
(1,339 |
) |
|||
Accrued income taxes |
|
(38 |
) |
|
(16 |
) |
|
(1,459 |
) |
|||
Other current liabilities |
|
223 |
|
|
(323 |
) |
|
(240 |
) |
|||
Other non-current liabilities |
|
(56 |
) |
|
(48 |
) |
|
(345 |
) |
|||
Payment of severance benefits |
|
(826 |
) |
|
(10,669 |
) |
|
(1,889 |
) |
|||
Others, net |
|
57 |
|
|
3,446 |
|
|
(1,077 |
) |
|||
Net cash provided by (used in) operating activities |
|
162 |
|
|
(29,639 |
) |
|
(17,989 |
) |
|||
Cash flows from investing activities |
|
|
|
|||||||||
Proceeds from settlement of hedge collateral |
|
— |
|
|
2,237 |
|
|
627 |
|
|||
Payment of hedge collateral |
|
— |
|
|
— |
|
|
(612 |
) |
|||
Proceeds from disposal of plant, property and equipment |
|
554 |
|
|
554 |
|
|
— |
|
|||
Purchase of property, plant and equipment |
|
(7,656 |
) |
|
(19,739 |
) |
|
(4,175 |
) |
|||
Payment for intellectual property registration |
|
(97 |
) |
|
(182 |
) |
|
(263 |
) |
|||
Collection of guarantee deposits |
|
1,938 |
|
|
4,274 |
|
|
1,153 |
|
|||
Payment of guarantee deposits |
|
(58 |
) |
|
(355 |
) |
|
(2,090 |
) |
|||
Purchase of short-term financial instruments |
|
— |
|
|
— |
|
|
(30,000 |
) |
|||
Others, net |
|
— |
|
|
180 |
|
|
(37 |
) |
|||
Net cash used in investing activities |
|
(5,319 |
) |
|
(13,031 |
) |
|
(35,397 |
) |
|||
Cash flows from financing activities |
|
|
|
|||||||||
Proceeds from long-term borrowings |
|
3,647 |
|
|
10,611 |
|
|
30,059 |
|
|||
Acquisition of treasury stock |
|
(320 |
) |
|
(4,340 |
) |
|
(9,507 |
) |
|||
Repayment of financing related to water treatment facility arrangement |
|
(116 |
) |
|
(341 |
) |
|
(357 |
) |
|||
Repayment of principal portion of finance lease liabilities |
|
(41 |
) |
|
(121 |
) |
|
(104 |
) |
|||
Net cash provided by financing activities |
|
3,170 |
|
|
5,809 |
|
|
20,091 |
|
|||
Effect of exchange rates on cash and cash equivalents |
|
(3,334 |
) |
|
6,256 |
|
|
(3,702 |
) |
|||
Net decrease in cash and cash equivalents |
|
(5,321 |
) |
|
(30,605 |
) |
|
(36,997 |
) |
|||
Cash and cash equivalents |
|
|
|
|||||||||
Beginning of the period |
|
113,326 |
|
|
138,610 |
|
|
158,092 |
|
|||
End of the period |
$ |
108,005 |
|
$ |
108,005 |
|
$ |
121,095 |
|
|||
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 |
Nine Months Ended |
||||||||||||||||||
|
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Operating loss |
$ |
(11,538 |
) |
$ |
(6,598 |
) |
$ |
(4,487 |
) |
$ |
(23,414 |
) |
$ |
(19,145 |
) |
|||||
Adjustments: |
|
|||||||||||||||||||
Equity-based compensation expense |
|
123 |
|
|
976 |
|
|
1,636 |
|
|
1,967 |
|
|
3,517 |
|
|||||
Early termination and other charges |
|
3,994 |
|
|
846 |
|
|
— |
|
|
4,840 |
|
|
— |
|
|||||
Adjusted Operating Loss |
$ |
(7,421 |
) |
$ |
(4,776 |
) |
$ |
(2,851 |
) |
$ |
(16,607 |
) |
$ |
(15,628 |
) |
|||||
| _______________ | ||
| (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 three months ended September 30, 2025, we recorded in our consolidated statement of operations $2,599 thousand in expenses of termination related charges in connection with the voluntary resignation program executed during the third quarter of 2025. For that same period, we also recorded $1,395 thousand in expenses of certain executive separation benefits.
For the three months ended June 30, 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefits.
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED LOSS FROM CONTINUING OPERATIONS (In thousands of U.S. dollars, except share data) (Unaudited) |
||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Income (Loss) from continuing operations |
$ |
(10,609 |
) |
$ |
9,203 |
|
$ |
(3,921 |
) |
$ |
(5,457 |
) |
$ |
(19,608 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Interest income |
|
(1,255 |
) |
|
(1,322 |
) |
|
(1,939 |
) |
|
(4,117 |
) |
|
(6,214 |
) |
|||||
Interest expense |
|
469 |
|
|
373 |
|
|
472 |
|
|
1,265 |
|
|
1,143 |
|
|||||
Income tax expense (benefit), net |
|
(4,170 |
) |
|
(4,138 |
) |
|
6,117 |
|
|
(8,709 |
) |
|
2,267 |
|
|||||
Depreciation and amortization |
|
3,204 |
|
|
3,237 |
|
|
3,609 |
|
|
9,561 |
|
|
10,987 |
|
|||||
EBITDA – continuing operations |
|
(12,361 |
) |
|
7,353 |
|
|
4,338 |
|
|
(7,457 |
) |
|
(11,425 |
) |
|||||
Equity-based compensation expense |
|
123 |
|
|
976 |
|
|
1,636 |
|
|
1,967 |
|
|
3,517 |
|
|||||
Foreign currency loss (gain), net |
|
4,280 |
|
|
(10,797 |
) |
|
(5,247 |
) |
|
(6,112 |
) |
|
3,388 |
|
|||||
Derivative valuation loss (gain), net |
|
— |
|
|
80 |
|
|
52 |
|
|
51 |
|
|
(58 |
) |
|||||
Early termination and other charges |
|
3,994 |
|
|
846 |
|
|
— |
|
|
4,840 |
|
|
— |
|
|||||
Adjusted EBITDA – continuing operations |
$ |
(3,964 |
) |
$ |
(1,542 |
) |
$ |
779 |
|
$ |
(6,711 |
) |
$ |
(4,578 |
) |
|||||
Income (Loss) from continuing operations |
$ |
(10,609 |
) |
$ |
9,203 |
|
$ |
(3,921 |
) |
$ |
(5,457 |
) |
$ |
(19,608 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Equity-based compensation expense |
|
123 |
|
|
976 |
|
|
1,636 |
|
|
1,967 |
|
|
3,517 |
|
|||||
Foreign currency loss (gain), net |
|
4,280 |
|
|
(10,797 |
) |
|
(5,247 |
) |
|
(6,112 |
) |
|
3,388 |
|
|||||
Derivative valuation loss (gain), net |
|
— |
|
|
80 |
|
|
52 |
|
|
51 |
|
|
(58 |
) |
|||||
Early termination and other charges |
|
3,994 |
|
|
846 |
|
|
— |
|
|
4,840 |
|
|
— |
|
|||||
Income tax effect on non-GAAP adjustments |
|
1,822 |
|
|
(2,286 |
) |
|
(143 |
) |
|
(441 |
) |
|
(1,311 |
) |
|||||
Adjusted Loss – continuing operations |
$ |
(390 |
) |
$ |
(1,978 |
) |
$ |
(7,623 |
) |
$ |
(5,152 |
) |
$ |
(14,072 |
) |
|||||
Adjusted Loss – continuing operations per common share— |
|
|
|
|
|
|||||||||||||||
- Basic |
$ |
(0.01 |
) |
$ |
(0.05 |
) |
$ |
(0.20 |
) |
$ |
(0.14 |
) |
$ |
(0.37 |
) |
|||||
- Diluted |
$ |
(0.01 |
) |
$ |
(0.05 |
) |
$ |
(0.20 |
) |
$ |
(0.14 |
) |
$ |
(0.37 |
) |
|||||
Weighted average number of shares – basic |
|
35,934,406 |
|
|
36,083,703 |
|
|
37,468,849 |
|
|
36,298,491 |
|
|
38,060,682 |
|
|||||
Weighted average number of shares – diluted |
|
35,934,406 |
|
|
36,083,703 |
|
|
37,468,849 |
|
|
36,298,491 |
|
|
38,060,682 |
|
|||||
| _______________ | ||
| (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 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 (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Other charges. EBITDA – continuing operations for the periods indicated is defined as income (loss) from continuing operations before interest income, interest expense, income tax expense (benefit), net and depreciation and amortization.
We prepare Adjusted Loss from continuing operations by adjusting income (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 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 Loss from continuing operations 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) Early termination and other charges, and (v) Income tax effect on non-GAAP adjustments.
For the three months ended September 30, 2025, we recorded in our consolidated statement of operations $2,599 thousand in expenses of termination related charges in connection with the voluntary resignation program executed during the third quarter of 2025. For that same period, we also recorded $1,395 thousand in expenses of certain executive separation benefits.
For the three months ended June 30, 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefits.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251103434550/en/
Mike Bishop
Bishop IR, LLC
Tel. +1 (415) 891-9633
[email protected]