Q3 2023 Financial Highlights

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

GAAP

Q3 2023

Q2 2023

Q/Q change

Q3 2022

Y/Y change

Revenues

Standard Products Business

   Display Solutions

6,404

9,657

down

33.7

%

6,355

up

0.8

%

   Power Solutions

45,215

41,718

up

8.4

%

56,416

down

19.9

%

Transitional Fab 3 foundry services ⁽¹⁾

9,626

9,604

up

0.2

%

8,428

up

14.2

%

Gross Profit Margin

23.6

%

22.2

%

up

1.4

%pts

24.2

%

down

0.6

%pts

Operating Loss

(9,235)

(10,656)

up

n/a

(10,008)

up

n/a

Net Loss

(5,165)

(3,947)

down

n/a

(17,195)

up

n/a

Basic Loss per Common Share

(0.13)

(0.09)

down

n/a

(0.38)

up

n/a

Diluted Loss per Common Share

(0.13)

(0.09)

down

n/a

(0.38)

up

n/a

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

Non-GAAP ⁽²⁾

Q3 2023

Q2 2023

Q/Q change

Q3 2022

Y/Y change

Adjusted Operating Loss

(7,064)

(7,762)

up

n/a

(6,646)

down

n/a

Adjusted EBITDA

(2,735)

(3,594)

up

n/a

(2,995)

up

n/a

Adjusted Net Income (Loss)

(1,591)

(2,472)

up

n/a

1,097

down

n/a

Adjusted Earnings (Loss) per Common Share—Diluted

(0.04)

(0.06)

up

n/a

0.02

down

n/a

___________

(1)

Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as "Fab 3" ("Transitional Fab 3 Foundry Services"). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we are planning to wind down these foundry services and convert portions of the idle capacity to Power Solutions standard products beginning around the second half of 2024. Because these foundry services during the wind-down period are still provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we will continue to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. 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.