MAGNACHIP SEMICONDUCTOR Corp

For the period ended Mar 31, 2024. Filed May 10, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 10, 2024

MX$2.53+1.2%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. Interim Consolidated Financial Statements (Unaudited)

CONSOLIDATED BALANCE SHEETS (Unaudited)

	March 31, 2024	December 31, 2023
(In thousands of U.S. dollars, except share data)
Assets
Current assets
Cash and cash equivalents	$171,602	$158,092
Accounts receivable, net	30,288	32,641
Inventories, net	31,479	32,733
Other receivables	5,041	4,295
Prepaid expenses	10,255	7,390
Hedge collateral (Note 6)	1,000	1,000
Other current assets (Note 16)	8,550	9,283
Total current assets	258,215	245,434
Property, plant and equipment, net	92,868	100,122
Operating lease right-of-use assets	4,538	4,639
Intangible assets, net	1,391	1,537
Long-term prepaid expenses	9,297	5,736
Deferred income taxes	47,669	50,836
Other non-current assets	12,186	12,187
Total assets	$426,164	$420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$24,619	$24,443
Other accounts payable	5,650	5,292
Accrued expenses (Note 5)	7,951	10,457
Accrued income taxes	1,622	1,496
Operating lease liabilities	1,884	1,914
Other current liabilities	3,158	3,286
Total current liabilities	44,884	46,888
Long-term borrowing	29,700	—
Accrued severance benefits, net	15,503	16,020
Non-current operating lease liabilities	2,808	2,897
Other non-current liabilities	11,384	10,088
Total liabilities	104,279	75,893
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,008,573 shares issued and 38,263,642 outstanding at March 31, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023	569	569
Additional paid-in capital	274,156	273,256
Retained earnings	283,467	298,884
Treasury stock, 18,744,931 shares at March 31, 2024 and 18,118,652 shares at December 31, 2023, respectively	(217,607)	(213,454)
Accumulated other comprehensive loss	(18,700)	(14,657)
Total stockholders’ equity	321,885	344,598
Total liabilities and stockholders’ equity	$426,164	$420,491

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIAR

IES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended
	March 31, 2024	March 31, 2023
(In thousands of U.S. dollars, except share data)
Revenues:
Net sales – standard products business	$45,541	$51,514
Net sales – transitional Fab 3 foundry services	3,526	5,491
Total revenues	49,067	57,005
Cost of sales:
Cost of sales – standard products business	35,888	37,312
Cost of sales – transitional Fab 3 foundry services	4,211	7,599
Total cost of sales	40,099	44,911
Gross profit	8,968	12,094
Operating expenses:
Selling, general and administrative expenses	11,264	12,165
Research and development expenses	11,163	13,298
Early termination charges	—	8,449
Total operating expenses	22,427	33,912
Operating loss	(13,459)	(21,818)
Interest income	2,213	2,842
Interest expense	(238)	(256)
Foreign currency loss, net	(5,001)	(3,430)
Other income (expense), net	44	(35)
Loss before income tax expense	(16,441)	(22,697)
Income tax benefit	(1,024)	(1,227)
Net loss	$(15,417)	$(21,470)
Basic loss per common share—	$(0.40)	$(0.49)
Diluted loss per common share—	$(0.40)	$(0.49)
Weighted average number of shares—
Basic	38,544,781	43,390,832
Diluted	38,544,781	43,390,832

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

	Three Months Ended
	March 31, 2024	March 31, 2023
(In thousands of U.S. dollars)
Net loss	$(15,417)	$(21,470)
Other comprehensive loss
Foreign currency translation adjustments	(3,497)	(1,908)
Derivative adjustments
Fair valuation of derivatives	(605)	(1,135)
Reclassification adjustment for loss on derivatives included in net loss	59	603
Total other comprehensive loss	(4,043)	(2,440)
Total comprehensive loss	$(19,460)	$(23,910)

MAGNACHIP SEMICONDUCTOR CORPORATION AND

SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Additional Paid-In Capital · Accumulated Other Comprehensive Loss
Common Stock · Retained Earnings · Treasury Stock · Total
(In thousands of U.S. dollars, except share data) · Shares · Amount
Three Months Ended March 31, 2024:
Balance at December 31, 2023	38,852,742	$569	$273,256	$298,884	$(213,454)	$(14,657)	$344,598
Stock-based compensation	—	—	900	—	—	—	900
Settlement of restricted stock units	37,179	0	(0)	—	—	—	—
Acquisition of treasury stock	(626,279)	—	—	—	(4,153)	—	(4,153)
Other comprehensive loss, net	—	—	—	—	—	(4,043)	(4,043)
Net loss	—	—	—	(15,417)	—	—	(15,417)
Balance at March 31, 2024	38,263,642	$569	$274,156	$283,467	$(217,607)	$(18,700)	$321,885
Three Months Ended March 31, 2023:
Balance at December 31, 2022	43,824,575	$564	$266,058	$335,506	$(161,422)	$(12,553)	$428,153
Stock-based compensation	—	—	1,120	—	—	—	1,120
Exercise of stock options	1,400	0	9	—	—	—	9
Settlement of restricted stock units	3,333	0	(0)	—	—	—	—
Acquisition of treasury stock	(1,239,993)	—	—	—	(12,019)	—	(12,019)
Other comprehensive loss, net	—	—	—	—	—	(2,440)	(2,440)
Net loss	—	—	—	(21,470)	—	—	(21,470)
Balance at March 31, 2023	42,589,315	$564	$267,187	$314,036	$(173,441)	$(14,993)	$393,353

statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended
	March 31, 2024	March 31, 2023
(In thousands of U.S. dollars)
Cash flows from operating activities
Net loss	$(15,417)	$(21,470)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	4,099	4,357
Provision for severance benefits	1,405	2,330
Loss on foreign currency, net	10,226	9,082
Provision for inventory reserves	(947)	1,138
Stock-based compensation	900	1,120
Deferred income taxes	1,313	(4)
Other, net	263	241
Changes in operating assets and liabilities
Accounts receivable, net	1,401	2,973
Inventories	801	1,062
Other receivables	(385)	2,376
Prepaid expenses	905	860
Other current assets	331	596
Accounts payable	563	1,904
Other accounts payable	(5,256)	(1,424)
Accrued expenses	(2,045)	7,600
Accrued income taxes	167	(2,923)
Other current liabilities	(387)	(596)
Other non-current liabilities	(624)	(169)
Payment of severance benefits	(884)	(871)
Other, net	(401)	(306)
Net cash provided by (used in) operating activities	(3,972)	7,876
Cash flows from investing activities
Proceeds from settlement of hedge collateral	—	1,155
Payment of hedge collateral	—	(1,093)
Purchase of property, plant and equipment	(668)	(135)
Payment for intellectual property registration	(60)	(74)
Collection guarantee deposits	1,133	19
Payment of guarantee deposits	(1,874)	(3,482)
Other, net	1	—
Net cash used in investing activities	(1,468)	(3,610)
Cash flows from financing activities
Proceeds from long-term borrowing	30,059	—
Proceeds from exercise of stock options	—	9
Acquisition of treasury stock	(4,659)	(12,264)
Repayment of financing related to water treatment facility arrangement	(121)	(126)
Repayment of principal portion of finance lease liabilities	(35)	(24)
Net cash provided by (used in) financing activities	25,244	(12,405)
Effect of exchange rates on cash and cash equivalents	(6,294)	(5,253)
Net increase (decrease) in cash and cash equivalents	13,510	(13,392)
Cash and cash equivalents at beginning of period	158,092	225,477
Cash and cash equivalents at end of period	$171,602	$212,085
Supplemental cash flow information
Cash paid for income taxes	$270	$2,644
Non-cash investing activities
Property, plant and equipment additions in other accounts payable	$285	$629
Non-cash financing activities
Unsettled common stock repurchases	$—	$401

statements.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.