YJ Kim, Magnachip's chief executive officer commented, "Our year-over-year results continued to be impacted by macro challenges but I am pleased to see sequential improvement in our Power business driven by Industrial and Automotive applications. We also continued our strong pace of design-in and design win activities during the quarter. Looking forward, we expect to see further sequential growth in our Power business in Q3."
YJ Kim continued, "In our Display business, we continue to collaborate closely with our new global panel customer. We are very optimistic about our long-term growth prospects, as our products offer compelling competitive advantages that will enable us to penetrate the rapidly expanding OLED market in Asia. Additionally, we are pleased to announce our Board of Directors' authorization of a new $50 million stock buyback program as part of our commitment to enhance shareholder value."
Q2 2023 Financial Highlights |
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| In thousands of U.S. dollars, except share data |
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| GAAP |
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| Q2 2023 |
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| Q1 2023 |
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| Q/Q change |
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| Q2 2022 |
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| Y/Y change |
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Revenues |
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| Standard Products Business |
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| Display Solutions |
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| 9,657 |
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| 10,841 |
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| down |
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| 10.9 | % |
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| 28,336 |
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| down |
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| 65.9 | % |
| Power Solutions |
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| 41,718 |
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| 40,673 |
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| up |
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| 2.6 | % |
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| 62,952 |
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| down |
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| 33.7 | % |
| Transitional Fab 3 foundry services (1) |
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| 9,604 |
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| 5,491 |
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| up |
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| 74.9 | % |
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| 10,088 |
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| down |
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| 4.8 | % |
| Gross Profit Margin |
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| 22.2 | % |
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| 21.2 | % |
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| up |
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| 1.0 | %pts |
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| 28.6 | % |
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| down |
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| 6.4 | %pts |
| Operating Income (Loss) |
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| (10,656) |
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| (21,818) |
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| up |
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| n/a |
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| 2,002 |
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| down |
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| n/a |
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| Net Income (Loss) |
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| (3,947) |
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| (21,470) |
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| up |
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| n/a |
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| (3,340) |
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| down |
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| n/a |
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| Basic Loss per Common Share |
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| (0.09) |
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| (0.49) |
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| up |
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| n/a |
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| (0.07) |
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| down |
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| n/a |
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| Diluted Loss per Common Share |
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| (0.09) |
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| (0.49) |
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| up |
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| n/a |
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| (0.07) |
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| down |
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| n/a |
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| In thousands of U.S. dollars, except share data |
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| Non-GAAP (2) |
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| Q2 2023 |
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| Q1 2023 |
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| Adjusted Operating Income (Loss) |
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| (7,762) |
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| (12,249) |
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| up |
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| n/a |
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| 4,787 |
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| down |
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| n/a |
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| Adjusted EBITDA |
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| (3,594) |
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| (7,873) |
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| up |
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| n/a |
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| 8,525 |
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| down |
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| n/a |
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| Adjusted Net Income (Loss) |
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| (2,472) |
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| (10,367) |
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| up |
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| n/a |
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| 10,567 |
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| down |
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| n/a |
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| Adjusted Earnings (Loss) per Common Share—Diluted |
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| (0.06) |
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| (0.24) |
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| up |
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| n/a |
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| 0.23 |
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| down |
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| n/a |
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| ___________ | |
| (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) | 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 (loss) 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. |
