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MAGNACHIP SEMICONDUCTOR Corp

For the period ended Jun 30, 2024. Filed Aug 8, 2024.

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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.

Jun 30, 2024 · Filed Aug 8, 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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Item 1. Interim Consolidated Financial Statements (Unaudited)

CONSOLIDATED BALANCE SHEETS (Unaudited)

June 30,2024December 31,2023
(In thousands of U.S. dollars, except share data)
Assets
Current assets
Cash and cash equivalents$132,467$158,092
Short-term financial instruments30,000—
Accounts receivable, net31,17532,641
Inventories, net34,78332,733
Other receivables3,9774,295
Prepaid expenses8,5487,390
Hedge collateral (Note 6)1,6001,000
Other current assets (Note 16)11,6539,283
Total current assets254,203245,434
Property, plant and equipment, net88,330100,122
Operating lease right-of-use assets4,1814,639
Intangible assets, net1,3201,537
Long-term prepaid expenses8,0855,736
Deferred income taxes44,57850,836
Other non-current assets11,99812,187
Total assets$412,695$420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$25,575$24,443
Other accounts payable8,3835,292
Accrued expenses9,19910,457
Accrued income taxes1,4221,496
Operating lease liabilities1,8051,914
Other current liabilities4,1683,286
Total current liabilities50,55246,888
Long-term borrowing28,794—
Accrued severance benefits, net15,75916,020
Non-current operating lease liabilities2,5142,897
Other non-current liabilities9,22810,088
Total liabilities106,84775,893
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,015,569 shares issued and 37,799,482 outstanding at June 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023569569
Additional paid-in capital275,329273,256
Retained earnings270,470298,884
Treasury stock, 19,216,087 shares at June 30, 2024 and 18,118,652 shares at December 31, 2023, respectively(219,949)(213,454)
Accumulated other comprehensive loss(20,571)(14,657)
Total stockholders’ equity305,848344,598
Total liabilities and stockholders’ equity$412,695$420,491

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months EndedSix Months Ended
June 30,2024June 30,2023June 30,2024June 30,2023
(In thousands of U.S. dollars, except share data)
Revenues:
Net sales – standard products business$50,835$51,375$96,376$102,889
Net sales – transitional Fab 3 foundry services2,3369,6045,86215,095
Total revenues53,17160,979102,238117,984
Cost of sales:
Cost of sales – standard products business39,11337,86775,00175,179
Cost of sales – transitional Fab 3 foundry services2,4579,5746,66817,173
Total cost of sales41,57047,44181,66992,352
Gross profit11,60113,53820,56925,632
Operating expenses:
Selling, general and administrative expenses11,73412,13722,99824,302
Research and development expenses12,69111,25523,85424,553
Early termination and other charges—802—9,251
Total operating expenses24,42524,19446,85258,106
Operating loss(12,824)(10,656)(26,283)(32,474)
Interest income2,2282,6924,4415,534
Interest expense(554)(200)(792)(456)
Foreign currency gain (loss), net(3,557)1,237(8,558)(2,193)
Other income (loss), net1083152(32)
Loss before income tax benefit(14,599)(6,924)(31,040)(29,621)
Income tax benefit(1,602)(2,977)(2,626)(4,204)
Net loss$(12,997)$(3,947)$(28,414)$(25,417)
Basic loss per common share—$(0.34)$(0.09)$(0.74)$(0.60)
Diluted loss per common share—$(0.34)$(0.09)$(0.74)$(0.60)
Weighted average number of shares—
Basic38,174,92041,741,31038,359,85142,561,514
Diluted38,174,92041,741,31038,359,85142,561,514

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

Three Months EndedSix Months Ended
June 30,2024June 30,2023June 30,2024June 30,2023
(In thousands of U.S. dollars)
Net loss$(12,997)$(3,947)$(28,414)$(25,417)
Other comprehensive loss
Foreign currency translation adjustments(1,591)(2,285)(5,088)(4,193)
Derivative adjustments
Fair valuation of derivatives(807)(375)(1,412)(1,510)
Reclassification adjustment for loss on derivatives included in net loss5271,2435861,846
Total other comprehensive loss(1,871)(1,417)(5,914)(3,857)
Total comprehensive loss$(14,868)$(5,364)$(34,328)$(29,274)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

Common Stock · AdditionalPaid-InCapital · RetainedEarnings · TreasuryStock · AccumulatedOtherComprehensiveLoss · Total
(In thousands of U.S. dollars, except share data) · Shares · Amount
Three Months Ended June 30, 2024:
Balance at March 31, 202438,263,642$569$274,156$283,467$(217,607)$(18,700)$321,885
Stock-based compensation——1,216———1,216
Settlement of restricted stock units6,9960(43)———(43)
Acquisition of treasury stock(471,156)———(2,342)—(2,342)
Other comprehensive loss, net—————(1,871)(1,871)
Net loss———(12,997)——(12,997)
Balance at June 30, 202437,799,482$569$275,329$270,470$(219,949)$(20,571)$305,848
Three Months Ended June 30, 2023:
Balance at March 31, 202342,589,315$564$267,187$314,036$(173,441)$(14,993)$393,353
Stock-based compensation——2,092———2,092
Exercise of stock options2,600018———18
Settlement of restricted stock units10,0000(0)————
Acquisition of treasury stock(2,468,017)———(25,807)—(25,807)
Other comprehensive loss, net—————(1,417)(1,417)
Net loss———(3,947)——(3,947)
Balance at June 30, 202340,133,898$564$269,297$310,089$(199,248)$(16,410)$364,292
Common Stock · AdditionalPaid-InCapital · RetainedEarnings · TreasuryStock · AccumulatedOtherComprehensiveLoss · Total
(In thousands of U.S. dollars, except share data) · Shares · Amount
Six Months Ended June 30, 2024:
Balance at December 31, 202338,852,742$569$273,256$298,884$(213,454)$(14,657)$344,598
Stock-based compensation——2,116———2,116
Settlement of restricted stock units44,1750(43)———(43)
Acquisition of treasury stock(1,097,435)———(6,495)—(6,495)
Other comprehensive loss, net—————(5,914)(5,914)
Net loss———(28,414)——(28,414)
Balance at June 30, 202437,799,482$569$275,329$270,470$(219,949)$(20,571)$305,848
Six Months Ended June 30, 2023:
Balance at December 31, 202243,824,575$564$266,058$335,506$(161,422)$(12,553)$428,153
Stock-based compensation——3,212———3,212
Exercise of stock options4,000027———27
Settlement of restricted stock units13,3330(0)————
Acquisition of treasury stock(3,708,010)———(37,826)—(37,826)
Other comprehensive loss, net—————(3,857)(3,857)
Net loss———(25,417)——(25,417)
Balance at June 30, 202340,133,898$564$269,297$310,089$(199,248)$(16,410)$364,292

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended
June 30,2024June 30,2023
(In thousands of U.S. dollars)
Cash flows from operating activities
Net loss$(28,414)$(25,417)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization8,1158,502
Provision for severance benefits2,9704,091
Loss on foreign currency, net16,8489,117
Provision for inventory reserves(1,024)1,121
Stock-based compensation2,1163,212
Deferred income taxes3,15827
Other, net426423
Changes in operating assets and liabilities
Accounts receivable, net(235)(342)
Inventories(3,449)4,911
Other receivables6014,407
Other current assets896395
Accounts payable1,9442,880
Other accounts payable(6,676)(6,488)
Accrued expenses(427)1,104
Accrued income taxes(17)(2,972)
Other current liabilities453(471)
Other non-current liabilities(246)(214)
Payment of severance benefits(1,362)(5,728)
Other, net(761)(487)
Net cash used in operating activities(5,084)(1,929)
Cash flows from investing activities
Proceeds from settlement of hedge collateral—3,335
Payment of hedge collateral(612)(2,586)
Purchase of property, plant and equipment(1,566)(1,518)
Payment for intellectual property registration(178)(163)
Collection of guarantee deposits1,1381,445
Payment of guarantee deposits(1,910)(6,907)
Increase in short-term financial instruments(30,000)—
Other, net0—
Net cash used in investing activities(33,128)(6,394)
Cash flows from financing activities
Proceeds from long-term borrowing30,059—
Proceeds from exercise of stock options—27
Acquisition of treasury stock(6,859)(36,840)
Repayment of financing related to water treatment facility arrangement(238)(248)
Repayment of principal portion of finance lease liabilities(69)(46)
Net cash provided by (used in) financing activities22,893(37,107)
Effect of exchange rates on cash and cash equivalents(10,306)(7,093)
Net decrease in cash and cash equivalents(25,625)(52,523)
Cash and cash equivalents
Cash and cash equivalents at beginning of period158,092225,477
Cash and cash equivalents at end of period$132,467$172,954
Supplemental cash flow information
Cash paid (refunded) for income taxes$(716)$3,599
Non-cash investing activities
Property, plant and equipment additions in other accounts payable$1,467$477
Non-cash financing activities
Unsettled common stock repurchases$119$1,379
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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.