In thousands of U.S dollars, except share data

GAAP

2021

2020

Y/Y Change

Revenues

Standard Products Business

Display Solutions

205,322

299,057

down

31.3

%

Power Solutions

227,777

166,462

up

36.8

%

Transitional Fab 3 foundry services⁽¹⁾

41,131

41,540

down

1.0

%

Gross Profit Margin

32.4

%

25.3

%

up

7.1

%pts 

Operating Income⁽²⁾

83,407

27,016

up

208.7

%

Net Income⁽³⁾

56,708

344,965

down

83.6

%

Basic Earnings per Common Share

1.26

9.80

down

87.1

%

Diluted Earnings per Common Share

1.21

7.54

down

84.0

%

In thousands of U.S dollars, except share data

Non-GAAP ⁽⁴⁾

2020

Y/Y Change

Adjusted Operating Income

56,135

41,584

up

35.0

%

Adjusted EBITDA

70,701

52,919

up

33.6

%

Adjusted Net Income

51,059

28,260

up

80.7

%

Adjusted Earnings per Common Share—Diluted

1.09

0.73

up

49.3

%

(1)

Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, and for a period of up to three years, we will provide transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi ("Transitional Fab 3 Foundry Services"). Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products display solutions and power solutions businesses.

(2)

For the year ended December 31, 2021, operating income of $83.4 million included net gain of $35.5 million that represented $70.2 million income from the recognition of a reverse termination fee, net of professional service fees and expenses of $34.7 million incurred in connection with the contemplated merger transaction.

(3)

For the year ended December 31,2020, net income of $345.0 million included income from discontinued operations, net of tax, of $287.9 million, primarily attributable to the recognition of $287.1 million as gain on sale of the Foundry Services Group business and Fab 4. It also included income tax benefits of $46.2 million, mainly attributable to the recognition of differences between GAAP and cash tax expense of $43.9 million.

(4)

Non-GAAP financial measures are calculated based on the results from continuing operations. 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 income from continuing operations or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.