CONTACTS:

In the United States:

Bruce Entin

Investor Relations

Tel. +1-408-625-1262

Investor.relations@magnachip.com 

In Korea:

Chankeun Park

Director, Public Relations

Tel. +82-2-6903-5223

chankeun.park@magnachip.com

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of US dollars, except share data)

(Unaudited)

Three Months Ended

June 30,

2019

March 31,

2019

June 30,

2018

Net sales

$

205,145

$

157,380

$

199,685

Cost of sales

161,305

134,679

145,831

Gross profit

43,840

22,701

53,854

Gross profit %

21.4

%

14.4

%

27.0

%

Operating expenses

Selling, general and administrative expenses

16,975

18,070

18,935

Research and development expenses

18,989

20,018

21,005

Restructuring and other charges

1,130

2,894

—

Total operating expenses

37,094

40,982

39,940

Operating income (loss)

6,746

(18,281)

13,914

Interest expense

(5,679)

(5,637)

(5,489)

Foreign currency loss, net

(10,431)

(9,997)

(27,449)

Loss on early extinguishment of long-term borrowings, net

—

(42)

—

Other income (expense), net

656

673

(960)

Loss before income tax expense

(8,708)

(33,284)

(19,984)

Income tax expense

812

841

1,521

Net loss

$

(9,520)

$

(34,125)

$

(21,505)

Loss per common share :

- Basic / Diluted

$

(0.28)

$

(1.00)

$

(0.62)

Weighted average number of shares—Basic / Diluted

34,245,127

34,194,878

34,420,654