- Revenue of $57.0 million
was within our guidance range. YoY, our revenue decreased
45.2% primarily due to continued effects of last year's 28nm wafer
supply shortage that impacted second half 2022 design-wins and the
ongoing inventory correction driven by weak consumer
demand.
- Gross profit margin was 21.2%, at the low end of our
guidance range. The sequential decrease was primarily due to lower
utilization rate of our internal fabrication facility in response
to the industry-wide slowdown and higher fab costs.
- GAAP diluted loss per share was $0.49.
- Non-GAAP diluted loss per share was $0.24.
SEOUL,
South Korea, May 3, 2023
/PRNewswire/ -- Magnachip Semiconductor Corporation (NYSE: MX)
("Magnachip" or the "Company") today announced financial results
for the first quarter 2023.
YJ Kim, Magnachip's chief executive officer commented, "Our Q1
results continued to be affected by last year's OLED wafer
shortages that impacted second half design-wins and the ongoing
smartphone inventory correction in our Display business and weak
consumer demand in our Power business. Despite the challenging
environment, we remained focused on execution during the quarter.
In our Display business, we successfully delivered our second OLED
DDIC project sample ahead of schedule to a large non-Korean panel
customer and remain on track for second half smartphone launches.
We also completed the tape-out for a high-end smartphone project
with a large Korean panel customer, with mass production on
schedule near the end of this year. In our Power business, we
continued our record pace of design-in and -win activities, driven
by momentum in industrial, automotive and computing applications.
Looking ahead, the macro environment remains uncertain. However, we
believe we are bumping along the bottom for the Display business
and we have hit the bottom in Q1 for our Power business."
YJ Kim continued, "Overall, we expect our financial results to
remain soft in the near term, but we believe both Display and
Power are poised for a recovery in the second half of this
year based on our current customer feedback."
Q1 2023 Financial
Highlights
|
|
|
|
In thousands of U.S.
dollars, except share data
|
|
|
|
GAAP
|
|
|
|
|
Q1 2023
|
|
Q4 2022
|
|
Q/Q
change
|
|
Q1 2022
|
|
Y/Y
change
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standard Products
Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Display
Solutions
|
|
10,841
|
|
|
|
7,556
|
|
|
|
up
|
|
|
|
43.5
|
%
|
|
|
29,185
|
|
|
|
down
|
62.9
|
%
|
Power
Solutions
|
|
40,673
|
|
|
|
46,271
|
|
|
|
down
|
|
|
|
12.1
|
%
|
|
|
64,825
|
|
|
|
down
|
37.3
|
%
|
Transitional Fab 3
foundry services(1)
|
|
5,491
|
|
|
|
7,163
|
|
|
|
down
|
|
|
|
23.3
|
%
|
|
|
10,083
|
|
|
|
down
|
45.5
|
%
|
Gross Profit
Margin
|
|
21.2
|
%
|
|
|
26.4
|
%
|
|
|
down
|
|
|
|
5.2
|
%pts
|
|
|
37.5
|
%
|
|
|
down
|
16.3
|
%pts
|
Operating Income
(Loss)
|
|
(21,818
|
|
|
|
(10,117)
|
|
|
|
down
|
|
|
|
n/a
|
|
|
|
12,879
|
|
|
|
down
|
n/a
|
|
Net Income
(Loss)
|
|
(21,470
|
|
|
|
2,971
|
|
|
|
down
|
|
|
|
n/a
|
|
|
|
9,528
|
|
|
|
down
|
n/a
|
|
Basic Earnings
(Loss) per Common Share
|
|
(0.49
|
|
|
|
0.07
|
|
|
|
down
|
|
|
|
n/a
|
|
|
|
0.21
|
|
|
|
down
|
n/a
|
|
Diluted Earnings
(Loss) per Common Share
|
|
(0.49
|
|
|
|
0.07
|
|
|
|
down
|
|
|
|
n/a
|
|
|
|
0.20
|
|
|
|
down
|
n/a
|
|
|
|
|
|
|
In thousands of U.S.
dollars, except share data
|
|
|
Non-GAAP(2)
|
|
|
|
|
Q1
2023
|
|
|
Q4
2022
|
|
Q/Q
change
|
|
Q1
2022
|
|
Y/Y
change
|
|
Adjusted Operating
Income (Loss)
|
|
(12,249
|
|
|
|
|
(8,567)
|
|
|
|
down
|
|
|
|
n/a
|
|
|
|
14,517
|
|
|
|
down
|
|
n/a
|
|
Adjusted
EBITDA
|
|
(7,873
|
|
|
|
|
(4,768)
|
|
|
|
down
|
|
|
|
n/a
|
|
|
|
18,755
|
|
|
|
down
|
n/a
|
|
Adjusted Net Income
(Loss)
|
|
(10,367
|
|
|
|
|
(15,848)
|
|
|
|
up
|
|
|
|
n/a
|
|
|
|
12,936
|
|
|
|
down
|
n/a
|
|
Adjusted Earnings
(Loss) per Common Share—Diluted
|
|
(0.24
|
|
|
|
|
(0.36)
|
|
|
|
up
|
|
|
|
n/a
|
|
|
|
0.28
|
|
|
|
down
|
n/a
|
|
__________________
|
(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.
|
Financial Guidance
While actual results may vary, Magnachip currently expects the
following for Q2 2023:
- Revenue to be in the range of $58
million to $63 million,
including about $8 millions of
Transitional Fab 3 Foundry Services.
- Gross profit margin to be in the range of 21% to 23%.
Based on our current projections, and assuming a steady state
global economy, we are cautiously optimistic that our key financial
metrics have the potential to show sequential improvement in both
the third and fourth quarters of 2023.
Q1 2023 Earnings Conference Call
Magnachip will host a corresponding conference call at
2:00 p.m. PT / 5:00 p.m. ET on Thursday, May 3, 2023, to discuss
its financial results. In advance of the conference call, all
participants must use the following link to complete the online
registration process. Upon registering, each participant will
receive access details for this event including the dial-in
numbers, a PIN number, and an e-mail with detailed instructions to
join the conference call. A live and archived webcast of the
conference call and a copy of earnings release will be accessible
from the 'Investors' section of the Company's website at
www.magnachip.com.
Online
registration: https://register.vevent.com/register/BI51f45e599c544fe9bad00a197e100fca
Safe Harbor for Forward-Looking
Statements
Information in this release regarding Magnachip's forecasts,
business outlook, expectations and beliefs are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties. These
statements include expectations about estimated historical or
future operating results and financial performance, outlook and
business plans, including second quarter 2023, third quarter 2023
and full year 2023 revenue and gross profit margin expectations,
and the impact of market conditions associated with inflation and
higher interest rates, remaining effects from the COVID-19
pandemic, geopolitical conflict between Russia and Ukraine, escalated trade tensions between the
U.S. and China and continuing
supply constraints on Magnachip's second quarter 2023 and future
operating results. All forward-looking statements included in this
release are based upon information available to Magnachip as of the
date of this release, which may change, and we assume no obligation
to update any such forward-looking statements. These statements are
not guarantees of future performance and actual results could
differ materially from our current expectations. Factors that could
cause or contribute to such differences include, among others: the
impact of changes in macroeconomic conditions, including those
caused by or related to inflation, potential recessions or other
deteriorations, economic instability or civil unrest; remaining
effects from the COVID-19 pandemic, the geopolitical conflict
between Russia and Ukraine, and escalated trade tensions between
the U.S. and China; manufacturing
capacity constraints or supply chain disruptions that may impact
our ability to deliver our products or affect the price of
components, which may lead to an increase in our costs and impact
demand for our products from customers who are similarly affected
by such capacity constraints or disruptions; the impact of
competitive products and pricing; timely -acceptance of our designs
by customers; timely introduction of new products and technologies;
our ability to ramp new products into volume production;
industry-wide shifts in supply and demand for semiconductor
products; overcapacity within the industry or at Magnachip;
effective and cost-efficient utilization of manufacturing capacity;
financial stability in foreign markets and the impact of foreign
exchange rates; unanticipated costs and expenses or the inability
to identify expenses that can be eliminated; compliance with U.S.
and international trade and export laws and regulations by us, our
customers and our distributors; change to or ratification of local
or international laws and regulations, including those related to
environment, health and safety; public health issues, including the
remaining effects of the COVID-19 pandemic; other business
interruptions that could disrupt supply or delivery of, or demand
for, Magnachip's products; and other risks detailed from time to
time in Magnachip's filings with the U.S. Securities and Exchange
Commission (the "SEC"), including our Form 10-K filed on
February 22, 2023, and subsequent
registration statements, amendments or other reports that we may
file from time to time with the SEC and/or make available on our
website. Magnachip assumes no obligation and does not intend to
update the forward-looking statements provided, whether as a result
of new information, future events or otherwise.
About Magnachip Semiconductor
Magnachip is a designer and manufacturer of analog and
mixed-signal semiconductor platform solutions for communications,
IoT, consumer, computing, industrial and automotive applications.
The Company provides a broad range of standard products to
customers worldwide. Magnachip, with more than 40 years of
operating history, owns a portfolio of approximately 1,100
registered patents and pending applications, and has extensive
engineering, design, and manufacturing process expertise. For more
information, please visit www.magnachip.com. Information on or
accessible through Magnachip's website is not a part of, and is not
incorporated into, this release.
CONTACT:
Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands of
U.S. dollars, except share data)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
December
31,
|
March
31,
|
|
|
2023
|
|
2022
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales – standard
products business
|
|
$
|
51,514
|
|
|
$
|
53,827
|
|
|
$
|
94,010
|
|
Net sales –
transitional Fab 3 foundry services
|
|
|
5,491
|
|
|
|
7,163
|
|
|
|
10,083
|
|
Total
revenues
|
|
|
57,005
|
|
|
|
60,990
|
|
|
|
104,093
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales –
standard products business
|
|
|
37,312
|
|
|
|
37,150
|
|
|
|
56,080
|
|
Cost of sales –
transitional Fab 3 foundry services
|
|
|
7,599
|
|
|
|
7,742
|
|
|
|
9,017
|
|
Total cost of
sales
|
|
|
44,911
|
|
|
|
44,892
|
|
|
|
65,097
|
|
Gross profit
|
|
|
12,094
|
|
|
|
16,098
|
|
|
|
38,996
|
|
Gross profit as a
percentage of standard products business net sales
|
|
|
27.6
|
%
|
|
|
31.0
|
%
|
|
|
40.3
|
%
|
Gross profit as a
percentage of total revenues
|
|
|
21.2
|
%
|
|
|
26.4
|
%
|
|
|
37.5
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
12,165
|
|
|
|
12,562
|
|
|
|
14,163
|
|
Research and
development expenses
|
|
|
13,298
|
|
|
|
13,653
|
|
|
|
11,954
|
|
Early termination
charges
|
|
|
8,449
|
|
|
|
—
|
|
|
|
—
|
|
Total operating
expenses
|
|
|
33,912
|
|
|
|
26,215
|
|
|
|
26,117
|
|
Operating income
(loss)
|
|
|
(21,818)
|
|
|
|
(10,117)
|
|
|
|
12,879
|
|
Interest
income
|
|
|
2,842)
|
|
|
|
2,420
|
|
|
|
715)
|
|
Interest
expense
|
|
|
(256)
|
|
|
|
(269)
|
|
|
|
(111)
|
|
Foreign currency gain
(loss), net
|
|
|
(3,430)
|
|
|
|
17,492
|
|
|
|
(690)
|
|
Other income
(expense), net
|
|
|
(35)
|
|
|
|
(42)
|
|
|
|
218
|
|
Income (loss) before
income tax expense
|
|
|
(22,697)
|
|
|
|
9,484
|
|
|
|
13,011
|
|
Income tax expense
(benefit)
|
|
|
(1,227)
|
|
|
|
6,513
|
|
|
|
3,483
|
|
Net income
(loss)
|
|
$
|
(21,470)
|
|
|
$
|
2,971
|
|
|
$
|
9,528
|
|
Basic earnings (loss)
per common share—
|
|
$
|
(0.49)
|
|
|
$
|
0.07
|
|
|
$
|
0.21
|
|
Diluted earnings (loss)
per common share—
|
|
$
|
(0.49)
|
|
|
$
|
0.07
|
|
|
$
|
0.20
|
|
Weighted average number
of shares—
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,390,832
|
|
|
|
44,054,275
|
|
|
|
45,603,208
|
|
Diluted
|
|
|
43,390,832
|
|
|
|
44,731,683
|
|
|
|
46,693,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In thousands of
U.S. dollars, except share data)
(Unaudited)
|
|
|
March 31,
2023
|
December 31,
2022
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 212,085
|
|
|
$ 225,477
|
|
Accounts receivable,
net
|
|
32,143
|
|
|
35,380
|
|
Inventories,
net
|
|
36,360
|
|
|
39,883
|
|
Other
receivables
|
|
5,342
|
|
|
7,847
|
|
Prepaid
expenses
|
|
11,238
|
|
|
10,560
|
|
Hedge
collateral
|
|
2,820
|
|
|
2,940
|
|
Other current
assets
|
|
14,927
|
|
|
15,766
|
|
Total current
assets
|
|
314,915
|
|
|
337,853
|
|
Property, plant and
equipment, net
|
|
104,568
|
|
|
110,747
|
|
Operating lease
right-of-use assets
|
|
5,413
|
|
|
5,265
|
|
Intangible assets,
net
|
|
1,784
|
|
|
1,930
|
|
Long-term prepaid
expenses
|
|
9,101
|
|
|
10,939
|
|
Deferred income
taxes
|
|
37,380
|
|
|
38,324
|
|
Other non-current
assets
|
|
14,683
|
|
|
11,587
|
|
Total
assets
|
|
$ 487,844
|
|
|
$
516,645
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$ 19,921
|
|
|
$ 17,998
|
|
Other accounts
payable
|
|
9,216
|
|
|
9,702
|
|
Accrued
expenses
|
|
17,125
|
|
|
9,688
|
|
Accrued income taxes
|
|
146
|
|
|
3,154
|
|
Operating lease
liabilities
|
|
1,622
|
|
|
1,397
|
|
Other current
liabilities
|
|
5,261
|
|
|
5,306
|
|
Total current
liabilities
|
|
53,291
|
|
|
47,245
|
|
Accrued severance
benefits, net
|
|
23,608
|
|
|
23,121
|
|
Non-current operating
lease liabilities
|
|
3,996
|
|
|
4,091
|
|
Other non-current
liabilities
|
|
13,596
|
|
|
14,035
|
|
Total
liabilities
|
|
94,491
|
|
|
88,492
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Common stock, $0.01
par value, 150,000,000 shares authorized, 56,437,182 shares issued
and 42,589,315
outstanding at March 31, 2023 and 56,432,449 shares issued and
43,824,575 outstanding at December 31, 2022
|
|
564
|
|
|
564
|
|
Additional paid-in
capital
|
|
267,187
|
|
|
266,058
|
|
Retained
earnings
|
|
314,036
|
|
|
335,506
|
|
Treasury stock,
13,847,867 shares at March 31, 2023 and 12,607,874 shares at
December 31, 2022, respectively
|
|
(173,441)
|
|
|
(161,422)
|
|
Accumulated other
comprehensive loss
|
|
(14,993)
|
|
|
(12,553)
|
|
Total stockholders'
equity
|
|
393,353
|
|
|
428,153
|
|
Total liabilities and
stockholders' equity
|
|
$
487,844
|
|
|
$
516,645
|
|
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands of
U.S. dollars)
(Unaudited)
|
|
|
Three Months Ended
|
|
March 31,
2023
|
|
March 31,
2022
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
(21,470)
|
|
$
9,528
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
|
Depreciation and
amortization
|
4,357
|
|
3,891
|
Provision for
severance benefits
|
2,330
|
|
1,670
|
Loss on foreign
currency, net
|
9,082
|
|
6,380
|
Provision for
inventory reserves
|
1,138
|
|
145
|
Stock-based
compensation
|
1,120
|
|
1,638
|
Other,
net
|
237
|
|
161
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts receivable,
net
|
2,973
|
|
(1,213 )
|
Inventories
|
1,062
|
|
1,456
|
Other
receivables
|
2,376
|
|
667
|
Other current
assets
|
1,456
|
|
(6,829 )
|
Accounts
payable
|
1,904
|
|
538
|
Other accounts
payable
|
(1,424 )
|
|
(702 )
|
Accrued
expenses
|
7,600
|
|
187
|
Accrued income
taxes
|
(2,923 )
|
|
(2,346 )
|
Other current
liabilities
|
(596 )
|
|
(711 )
|
Other non-current
liabilities
|
(169 )
|
|
(73 )
|
Payment of severance
benefits
|
(871 )
|
|
(1,389 )
|
Other,
net
|
(306 )
|
|
(178)
|
|
|
|
|
Net cash provided by
operating
activities
|
7,876
|
|
12,820
|
Cash flows from
investing activities
|
|
|
|
Proceeds from
settlement of hedge
collateral
|
1,155
|
|
1,829
|
Payment of hedge
collateral
|
(1,093 )
|
|
(2,891 )
|
Purchase of property,
plant and equipment
|
(135 )
|
|
(944 )
|
Payment for
intellectual property
registration
|
(74 )
|
|
(59 )
|
Payment of guarantee
deposits
|
(3,482 )
|
|
(79 )
|
Other,
net
|
19
|
|
2
|
|
|
|
|
Net cash used in
investing
activities
|
(3,610 )
|
|
(2,142 )
|
Cash flows from
financing activities
|
|
|
|
Proceeds from exercise
of stock options
|
9
|
|
1,781
|
Acquisition of
treasury stock
|
(12,264 )
|
|
(830 )
|
Repayment of financing
related to water treatment facility
arrangement
|
(126 )
|
|
(134 )
|
Repayment of principal
portion of finance lease
liabilities
|
(24 )
|
|
(16 )
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
(12,405 )
|
|
801
|
Effect of exchange
rates on cash and cash
equivalents
|
(5,253 )
|
|
(6,105 )
|
|
|
|
|
Net increase (decrease)
in cash and cash
equivalents
|
(13,392 )
|
|
5,374
|
Cash and cash
equivalents
|
|
|
|
Beginning of the
period
|
225,477
|
|
279,547
|
|
|
|
|
End of the
period
|
$ 212,085
|
|
$ 284,921
|
|
|
|
|
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF
OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME
(LOSS)
(In thousands of
U.S. dollars)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2023
|
|
2022
|
|
2022
|
|
Operating income
(loss)
|
|
$
|
(21,818)
|
|
|
$
|
(10,117)
|
|
|
$
|
12,879
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense
|
|
|
1,120
|
|
|
|
1,550
|
|
|
|
1,638
|
|
Early termination
charges
|
|
|
8,449
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted Operating
Income (Loss)
|
|
$
|
(12,249)
|
|
|
$
|
(8,567)
|
|
|
$
|
14,517
|
|
We present Adjusted Operating Income (Loss) as a supplemental
measure of our performance. We define Adjusted Operating Income
(Loss) for the periods indicated as operating income (loss)
adjusted to exclude (i) Equity-based compensation expense and (ii)
Early termination charges.
For the three months ended March 31,
2023, we recorded in our consolidated statement of
operations $8,449 thousand of
termination related charges in connection with the voluntary
resignation program that we offered to certain employees during the
first quarter of 2023.
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED NET INCOME
(LOSS)
(In thousands of
U.S. dollars, except share data)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2023
|
|
2022
|
|
2022
|
|
Net income
(loss)
|
|
$
|
(21,470)
|
|
|
$
|
2,971
|
|
|
$
|
9,528
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
(2,842)
|
|
|
|
(2,420)
|
|
|
|
(715)
|
|
Interest
expense
|
|
|
256
|
|
|
|
269
|
|
|
|
111
|
|
Income tax expense
(benefit)
|
|
|
(1,227)
|
|
|
|
6,513
|
|
|
|
3,483
|
|
Depreciation and
amortization
|
|
|
4,357
|
|
|
|
3,775
|
|
|
|
3,891
|
|
EBITDA
|
|
|
(20,926)
|
|
|
|
11,108
|
|
|
|
16,298
|
|
Equity-based
compensation expense
|
|
|
1,120
|
|
|
|
1,550
|
|
|
|
1,638
|
|
Foreign currency loss
(gain), net
|
|
|
3,430
|
|
|
|
(17,492)
|
|
|
|
690
|
|
Derivative valuation
loss, net
|
|
|
54
|
|
|
|
66
|
|
|
|
129
|
|
Early termination
charges
|
|
|
8,449
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
(7,873)
|
|
|
$
|
(4,768)
|
|
|
$
|
18,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(21,470)
|
|
|
$
|
2,971
|
|
|
$
|
9,528
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense
|
|
|
1,120
|
|
|
|
1,550
|
|
|
|
1,638
|
|
Foreign currency loss
(gain), net
|
|
|
3,430
|
|
|
|
(17,492)
|
|
|
|
690
|
|
Derivative valuation
loss, net
|
|
|
54
|
|
|
|
66
|
|
|
|
129
|
|
Early termination
charges
|
|
|
8,449
|
|
|
|
—
|
|
|
|
—
|
|
Income tax effect
on non-GAAP adjustments
|
|
|
(1,950)
|
|
|
|
(2,943)
|
|
|
|
951
|
|
Adjusted Net Income
(Loss)
|
|
$
|
(10,367)
|
|
|
$
|
(15,848)
|
|
|
$
|
12,936
|
|
Adjusted Net Income
(Loss) per common share—
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
$
|
(0.24)
|
|
|
$
|
(0.36)
|
|
|
$
|
0.28
|
|
- Diluted
|
|
$
|
(0.24)
|
|
|
$
|
(0.36)
|
|
|
$
|
0.28
|
|
Weighted average number
of shares – basic
|
|
|
43,390,832
|
|
|
|
44,054,275
|
|
|
|
45,603,208
|
|
Weighted average number
of shares – diluted
|
|
|
43,390,832
|
|
|
|
44,054,275
|
|
|
|
46,693,294
|
|
We present Adjusted EBITDA and Adjusted Net Income (Loss) as
supplemental measures of our performance. We define Adjusted EBITDA
for the periods indicated as EBITDA (as defined below), adjusted to
exclude (i) Equity-based compensation expense,
(ii) Foreign currency loss (gain), net, (iii) Derivative
valuation loss, net and (iv) Early termination charges. EBITDA for
the periods indicated is defined as net income (loss) before
interest income, interest expense, income tax expense (benefit) and
depreciation and amortization.
We prepare Adjusted Net Income (Loss) by adjusting net
income (loss) to eliminate the impact of a number
of non-cash expenses and other items that may be either
one time or recurring that we do not consider to be indicative of
our core ongoing operating performance. We believe that Adjusted
Net Income (Loss) is particularly useful because it reflects the
impact of our asset base and capital structure on our operating
performance. We define Adjusted Net Income (Loss) for the periods
as net income (loss), adjusted to exclude (i) Equity-based
compensation expense, (ii) Foreign currency loss (gain), net, (iii)
Derivative valuation loss, net, (iv) Early termination charges and
(v) Income tax effect on non-GAAP adjustments.
For the three months ended March 31,
2023, we recorded in our consolidated statement of
operations $8,449 thousand of
termination related charges in connection with the voluntary
resignation program that we offered to certain employees during the
first quarter of 2023.
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SOURCE Magnachip Semiconductor Corporation