Financial Results in Focus: MagnaChip Semiconductor Corporation (NYSE: MX)

Raymond Young

I am Raymond Young and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions.

I am the driving force behind Import Tourism with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Technology” category.

Address: 3194 Flynn Street, Garfield Heights, OH 44125, USA
Phone: (+1) 440-829-5759
Email: raymondyoung@importtourism.com
Raymond Young

SEOUL, South Korea and SAN JOSE, Calif., July 2, 2019 – Shares of MagnaChip Semiconductor Corporation (NYSE: MX) gained 0.49% to $10.35. The stock grabbed the investor’s attention and traded 297.617K shares as compared to its average daily volume of 359.21K shares. The stock’s institutional ownership stands at 89.70%.

Magnachip Semiconductor Corp. (MX) reported a first-quarter loss of $34.10M, after reporting a profit in the same period a year earlier.

First Quarter Financial Review

Total Revenue:

Total revenue in the first quarter of 2019 was $157.40M, down 5.1% as contrast to reported revenue of $165.80M from the first quarter of 2018, and down 12.3% from $179.40M in the fourth quarter of 2018.

Segment Revenue:

Foundry Services Group revenue in the first quarter was $57.10M, down 26.3% from the first quarter of 2018, and down 31.3% from the fourth quarter of 2018.

Standard Products Group revenue in the first quarter was $100.30M, up 13.5% YoY and up 4.2% sequentially. The improved results in the Standard Products Group year-over-year were mainly attributable to a sharp increase in revenue from mobile OLED display driver ICs in connection with the introduction of new OLED smartphones from manufacturers in China and Korea, and a boost in demand for premium Power products such as high-voltage MOSFETS, mainly for TV and industrial applications. The revenue improvement in the Standard Products Group was offset in part by a planned reduction in demand of low-margin LCD business.

Total Gross Profit and Gross Profit Margin:

Total gross profit in the first quarter of 2019 was $22.70M or 14.4 % as a percentage of revenue as contrast with gross profit of $44.60M or 26.9% in the first quarter of 2018, and $43.90M or 24.5% in the fourth quarter of 2018.

Operating Income, Net Income, Adjusted Net Income, Adjusted EBITDA:

Operating loss, on a GAAP basis, for the first quarter of 2019 was $18.30M, as contrast with an income of $7.40M in the first quarter of 2018 and an income of $7.90M in the fourth quarter of 2018.

Net loss, on a GAAP basis, was $34.10M or $1.00 per basic and diluted share in the first quarter of 2019, as contrast with net income of $2.80M or $0.08 per basic and diluted share in the first quarter of 2018, and net loss of $2.40M or $0.07 per basic and diluted share in the fourth quarter of 2018.

Adjusted Net Loss, a non-GAAP financial measure, totaled $19.90M or $0.58 per basic and diluted share in the first quarter of 2019, as contrast with Adjusted Net Income of $1.40M or $0.04 per basic and diluted share in the first quarter of 2018, and Adjusted Net Income of $3.50M or $0.10 per basic and diluted share in the fourth quarter of 2018.

Adjusted EBITDA, a non-GAAP financial measure, in the first quarter of 2019 was negative $5.70M or negative 3.6% of revenue in the first quarter of 2019, as contrast with Adjusted EBITDA of $15.50M or 9.3% of revenue in the first quarter of 2018, and Adjusted EBITDA of $17.40M or 9.7% of revenue in the fourth quarter of 2018.

MX has a market value of $352.52M while its EPS was booked as $-1.32 in the last 12 months. The stock has 34.06M shares outstanding. In the profitability analysis, the company has gross profit margin of 23.70% while net profit margin was -5.50%. Beta value of the company was 0.81; beta is used to measure riskiness of the security.

Raymond Young

Raymond Young

I am Raymond Young and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind Import Tourism with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Technology” category. Address: 3194 Flynn Street, Garfield Heights, OH 44125, USA Phone: (+1) 440-829-5759 Email: raymondyoung@importtourism.com