Magnachip Reports Results for Second Quarter 2024

Financial Highlights

  • Q2 consolidated revenue was $53.2 million, above the mid-point of guidance range of $49-54 million.
    • Q2 standard product business revenue was up 11.6% sequentially.
  • Q2 consolidated gross profit margin was 21.8%, above the upper end of guidance range of 17-19%.
    • Q2 standard product business gross profit margin was 23.1%, up nearly two percentage points sequentially.
  • Ended Q2 with cash of $132.5 million; and also have an additional short-term financial investment of $30 million.
  • Repurchased approximately 0.5 million shares for aggregate purchase price of $2.3 million during the quarter.

Operational Highlights

  • Held formal opening ceremony in China for newly formed subsidiary, Magnachip Technology Company, Ltd. (MTC).
  • Secured a purchase commitment for OLED driver targeted for a premium smartphone OEM; mass production and revenue currently expected to begin by year-end.
  • Delivered samples of our next-generation OLED driver to a panel supplier for a leading Chinese smartphone OEM's winter 2024 model, now in the final design validation phase.
  • Taped out a new OLED driver designed with next-generation IP including sub-pixel rendering (SPR), refined color enhancement, color filter, brightness uniformity control and more than 20% reduction in power consumption than previous generation.
  • Sampled our first OLED smartwatch DDIC in Q2 following a Q1 tape-out, demonstrating our expansion into new, adjacent markets.
  • Power IC revenue increased sequentially, driven primarily by demand for LCD TVs and OLED IT monitors.
  • Sequential revenue growth in PAS segment was driven by industrial, communication and consumer applications. Automotive rebounded with new design wins in Japan and China.
  • Launched new 75A/1200V IGBT for a design opportunity in solar applications; expected to begin mass production in the second half of the year.

SEOUL, South Korea — (BUSINESS WIRE) — July 31, 2024 — Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the second quarter 2024.

YJ Kim, Magnachip’s CEO, commented, “Our Q2 revenue was above the mid-point of guidance and gross margin was better than expected. Revenue in our Standard Products Business, which is comprised of our MSS and PAS businesses, increased sequentially by double digits in Q2. We benefited from a recovery in our Power business, increased demand for OLED drivers for China smartphones and European autos, and an upturn in Power IC demand for OLED IT panels and LED TVs.”

YJ Kim added, “Looking ahead, we currently expect Standard Product Business revenue will increase sequentially once again in Q3, driven by leaner distribution channels in Power, as well as seasonality, and an increase in OLED and Power IC businesses.”

Q2 2024 Financial Highlights

 

In thousands of U.S. dollars, except share data

 

GAAP

 

Q2 2024

 

Q1 2024

Q/Q change

Q2 2023

Y/Y change

Consolidated Revenues

53,171

 

49,067

up

8.4

%

60,979

down

12.8

%

Standard Products Business

50,835

 

45,541

 

up

11.6

%

51,375

 

down

1.1

%

Mixed-Signal Solutions

11,595

 

9,006

 

up

28.7

%

12,357

 

down

6.2

%

Power Analog Solutions

39,240

 

36,535

 

up

7.4

%

39,018

 

up

0.6

%

Transitional Fab 3 foundry services (1)

2,336

 

3,526

 

down

33.7

%

9,604

 

down

75.7

%

Consolidated Gross Profit Margin

21.8

%

18.3

%

up

3.5

%pts

22.2

%

down

0.4

%pts

Standard Products Business

23.1

%

21.2

%

up

1.9

%pts

26.3

%

down

3.2

%pts

Mixed-Signal Solutions

34.6

%

44.6

%

down

10.0

%pts

36.4

%

down

1.8

%pts

Power Analog Solutions

19.7

%

15.4

%

up

4.3

%pts

23.1

%

down

3.4

%pts

Operating Loss

(12,824

)

(13,459

)

up

n/a

 

(10,656

)

down

n/a

 

Net Loss

(12,997

)

(15,417

)

up

n/a

 

(3,947

)

down

n/a

 

Basic Loss per Common Share

(0.34

)

(0.40

)

up

n/a

 

(0.09

)

down

n/a

 

Diluted Loss per Common Share

(0.34

)

(0.40

)

up

n/a

 

(0.09

)

down

n/a

 

 

 

In thousands of U.S. dollars, except share data

 

Non-GAAP (2)

 

Q2 2024

 

Q1 2024

Q/Q change

 

Q2 2023

Y/Y change

Adjusted Operating Loss

(11,608

)

(12,559

)

up

n/a

 

(7,762

)

down

n/a

 

Adjusted EBITDA

(7,569

)

(8,441

)

up

n/a

 

(3,594

)

down

n/a

 

Adjusted Net Loss

(8,134

)

(10,884

)

up

n/a

 

(2,472

)

down

n/a

 

Adjusted Loss per Common Share—Diluted

(0.21

)

(0.28

)

up

n/a

 

(0.06

)

down

n/a

 


1 | 2 | 3 | 4 | 5  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise