- Completed sale of the Foundry Services Group business and Fab 4 on September 1, 2020
SEOUL, South Korea, Oct. 29, 2020 — (PRNewswire) — MagnaChip Semiconductor Corporation (NYSE: MX) ("MagnaChip" or the "Company") today announced financial results for the third quarter of 2020.
"Q3 represented a pivotal chapter of MagnaChip as we successfully closed the sale of the Foundry business and Fab 4 that ultimately resulted in MagnaChip becoming a pure-play Products company with a very healthy balance sheet. Across the company, we are making well-planned moves to realign our resources, sharpen our R&D focus on key priority areas, and improve our operational efficiency," said YJ Kim, MagnaChip's chief executive officer. "During the third quarter, we also delivered solid performance with a 5% sequential revenue growth and a healthy bottom line despite the market disruptions caused by pandemic and geopolitical tension."
"More importantly, the upswing in demand which began in July has continued into the fourth quarter thus far. We are encouraged by the robust growth opportunities ahead of us, which creates a stronger foundation for profitable growth. We continue to push the envelope on enhancing our competitive position through continuous technology advancement, addressable market expansion and strategic customer engagements."
Q3 2020 Financial Highlights
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In thousands of US dollars, except share data | |||||||||
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| GAAP | ||||||||
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| Q3 2020 | Q2 2020 | Q/Q change | Q3 2019 | Y/Y change | ||||
Revenues |
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| Standard Products Business |
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| Display Solutions | 69,583 | 69,176 |
| up | 0.6% | 90,550 | down | 23.2% | |
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| Power Solutions | 46,679 | 39,779 |
| up | 17.3% | 48,723 | down | 4.2% | |
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| Transitional Fab 3 foundry services(1) | 8,551 | 9,873 |
| down | 13.4% | 9,894 | down | 13.6% | |
Gross Profit Margin | 22.9% | 27.0% |
| down | 4.1% pts | 23.6% | down | 0/7% pts | ||
Operating Income | 3,223 | 8,622 |
| down | 62.6% | 14,336 | up | 77.5% | ||
| Income (loss) from continuing operations | 8,461 | 11,774 |
| down | 28.1% | (14,244) | up | 159.4% | ||
| Diluted earnings (loss) per common share—( Continuing operations) | 0.21 | 0.28 |
| down | 25.0% | (0.41) | up | 151.2% | ||
| Net Income (Loss) (2) | 272,962 | 29,171 |
| up | 835.7% | (1,607) | up | 17,085.8% | ||
| Basic Earnings (Loss) per Common Share | 7.74 | 0.84 |
| up | 821.4% | (0.05) | up | 15,580.0% | ||
| Diluted Earnings (Loss) per Common Share | 5.89 | 0.65 |
| up | 806.2% | (0.05) | up | 11,880.0% | ||
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| Non-GAAP (3) | ||||||||
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| Q3 2020 | Q2 2020 | Q/Q change | Q3 2019 | Y/Y change | ||||
| Adjusted Operating Income | 8,823 | 10,125 |
| down | 12.9% | 14,766 | down | 40.2% | ||
| Adjusted EBITDA | 11,731 | 12,711 |
| down | 7.7% | 17,404 | down | 32.6% | ||
| Adjusted Net Income | 5,147 | 4,753 |
| up | 8.3% | 8,204 | down | 37.3% | ||
| Adjusted Earnings per Common Share—Diluted | 0.14 | 0.13 |
| up | 7.7% | 0.21 | down | 33.3% | ||
