MAGNACHIP SEMICONDUCTOR Corp

For the period ended Sep 30, 2024. Filed Nov 7, 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.

Sep 30, 2024 · Filed Nov 7, 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)

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARI

CONSOLIDATED BALANCE SHEETS (Unaudited)

	September 30, 2024	December 31, 2023
(In thousands of U.S. dollars, except share data)
Assets
Current assets
Cash and cash equivalents	$121,095	$158,092
Short-term financial instruments	30,000	—
Accounts receivable, net	28,693	32,641
Inventories, net	36,127	32,733
Other receivables	5,301	4,295
Prepaid expenses	11,614	7,390
Hedge collateral (Note 7)	1,000	1,000
Other current assets (Note 17)	8,208	9,283
Total current assets	242,038	245,434
Property, plant and equipment, net	92,383	100,122
Operating lease right-of-use assets	3,810	4,639
Intangible assets, net	1,353	1,537
Long-term prepaid expenses	615	5,736
Deferred income taxes	46,643	50,836
Other non-current assets	24,513	12,187
Total assets	$411,355	$420,491
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$24,644	$24,443
Other accounts payable	11,768	5,292
Accrued expenses	9,133	10,457
Accrued income taxes	32	1,496
Operating lease liabilities	1,754	1,914
Other current liabilities	3,005	3,286
Total current liabilities	50,336	46,888
Long-term borrowing	30,312	—
Accrued severance benefits, net	17,347	16,020
Non-current operating lease liabilities	2,191	2,897
Other non-current liabilities	11,596	10,088
Total liabilities	111,782	75,893
Commitments and contingencies (Note 17)
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 57,032,206 shares issued and 37,292,044 outstanding at September 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023	569	569
Additional paid-in capital	277,306	273,256
Retained earnings	260,853	298,884
Treasury stock, 19,740,162 shares at September 30, 2024 and 18,118,652 shares at December 31, 2023, respectively	(222,503)	(213,454)
Accumulated other comprehensive loss	(16,652)	(14,657)
Total stockholders’ equity	299,573	344,598
Total liabilities and stockholders’ equity	$411,355	$420,491

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
(In thousands of U.S. dollars, except share data)
Revenues:
Net sales – standard products business	$64,020	$51,619	$160,396	$154,508
Net sales – transitional Fab 3 foundry services	2,440	9,626	8,302	24,721
Total revenues	66,460	61,245	168,698	179,229
Cost of sales:
Cost of sales – standard products business	48,400	36,829	123,401	112,008
Cost of sales – transitional Fab 3 foundry services	2,599	9,935	9,267	27,108
Total cost of sales	50,999	46,764	132,668	139,116
Gross profit	15,461	14,481	36,030	40,113
Operating expenses:
Selling, general and administrative expenses	12,091	12,089	35,089	36,391
Research and development expenses	14,373	11,627	38,227	36,180
Early termination and other charges	—	—	—	9,251
Total operating expenses	26,464	23,716	73,316	81,822
Operating loss	(11,003)	(9,235)	(37,286)	(41,709)
Interest income	2,051	2,382	6,492	7,916
Interest expense	(574)	(189)	(1,366)	(645)
Foreign currency gain (loss), net	5,066	(2,583)	(3,492)	(4,776)
Other income (loss), net	(31)	87	121	55
Loss before income tax expense (benefit)	(4,491)	(9,538)	(35,531)	(39,159)
Income tax expense (benefit)	5,126	(4,373)	2,500	(8,577)
Net loss	$(9,617)	$(5,165)	$(38,031)	$(30,582)
Basic loss per common share—	$(0.26)	$(0.13)	$(1.00)	$(0.73)
Diluted loss per common share—	$(0.26)	$(0.13)	$(1.00)	$(0.73)
Weighted average number of shares—
Basic	37,468,849	40,145,290	38,060,682	41,747,255
Diluted	37,468,849	40,145,290	38,060,682	41,747,255

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
(In thousands of U.S. dollars)
Net loss	$(9,617)	$(5,165)	$(38,031)	$(30,582)
Other comprehensive income (loss)
Foreign currency translation adjustments	2,866	(1,847)	(2,222)	(6,040)
Derivative adjustments
Fair valuation of derivatives	935	(1,013)	(477)	(2,523)
Reclassification adjustment for loss on derivatives included in net loss	118	698	704	2,544
Total other comprehensive income (loss)	3,919	(2,162)	(1,995)	(6,019)
Total comprehensive loss	$(5,698)	$(7,327)	$(40,026)	$(36,601)

The accompanying notes are an integral part of these

consolidated

financial statements.

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 September 30, 2024:
Balance at June 30, 2024	37,799,482	$569	$275,329	$270,470	$(219,949)	$(20,571)	$305,848
Stock-based compensation	—	—	1,977	—	—	—	1,977
Settlement of restricted stock units	16,637	0	(0)	—	—	—	—
Acquisition of treasury stock	(524,075)	—	—	—	(2,554)	—	(2,554)
Other comprehensive income, net	—	—	—	—	—	3,919	3,919
Net loss	—	—	—	(9,617)	—	—	(9,617)
Balance at September 30, 2024	37,292,044	$569	$277,306	$260,853	$(222,503)	$(16,652)	$299,573
Three Months Ended September 30, 2023:
Balance at June 30, 2023	40,133,898	$564	$269,297	$310,089	$(199,248)	$(16,410)	$364,292
Stock-based compensation	—	—	2,171	—	—	—	2,171
Settlement of restricted stock units	205,595	2	(49)	—	—	—	(47)
Acquisition of treasury stock	(671,498)	—	—	—	(5,397)	—	(5,397)
Other comprehensive loss, net	—	—	—	—	—	(2,162)	(2,162)
Net loss	—	—	—	(5,165)	—	—	(5,165)
Balance at September 30, 2023	39,667,995	$566	$271,419	$304,924	$(204,645)	$(18,572)	$353,692

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
Nine Months Ended September 30, 2024:
Balance at December 31, 2023	38,852,742	$569	$273,256	$298,884	$(213,454)	$(14,657)	$344,598
Stock-based compensation	—	—	4,093	—	—	—	4,093
Settlement of restricted stock units	60,812	0	(43)	—	—	—	(43)
Acquisition of treasury stock	(1,621,510)	—	—	—	(9,049)	—	(9,049)
Other comprehensive loss, net	—	—	—	—	—	(1,995)	(1,995)
Net loss	—	—	—	(38,031)	—	—	(38,031)
Balance at September 30, 2024	37,292,044	$569	$277,306	$260,853	$(222,503)	$(16,652)	$299,573
Nine Months Ended September 30, 2023:
Balance at December 31, 2022	43,824,575	$564	$266,058	$335,506	$(161,422)	$(12,553)	$428,153
Stock-based compensation	—	—	5,383	—	—	—	5,383
Exercise of stock options	4,000	0	27	—	—	—	27
Settlement of restricted stock units	218,928	2	(49)	—	—	—	(47)
Acquisition of treasury stock	(4,379,508)	—	—	—	(43,223)	—	(43,223)
Other comprehensive loss, net	—	—	—	—	—	(6,019)	(6,019)
Net loss	—	—	—	(30,582)	—	—	(30,582)
Balance at September 30, 2023	39,667,995	$566	$271,419	$304,924	$(204,645)	$(18,572)	$353,692

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended
	September 30, 2024	September 30, 2023
(In thousands of U.S. dollars)
Cash flows from operating activities
Net loss	$(38,031)	$(30,582)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	12,171	12,583
Provision for severance benefits	4,552	5,358
Loss on foreign currency, net	6,140	14,532
Provision for inventory reserves	(1,615)	3,035
Stock-based compensation	4,093	5,383
Deferred income taxes	3,111	88
Others, net	552	592
Changes in operating assets and liabilities
Accounts receivable, net	3,560	(6,409)
Inventories	(2,365)	3,635
Other receivables	(1,030)	4,993
Prepaid expenses	5,645	5,653
Other current assets	1,155	(7,944)
Accounts payable	619	6,066
Other accounts payable	(10,197)	(6,738)
Accrued expenses	(1,339)	619
Accrued income taxes	(1,459)	(3,014)
Other current liabilities	(240)	(741)
Other non-current liabilities	(345)	(279)
Payment of severance benefits	(1,889)	(6,183)
Others, net	(1,077)	(841)
Net cash used in operating activities	(17,989)	(194)
Cash flows from investing activities
Proceeds from settlement of hedge collateral	627	3,335
Payment of hedge collateral	(612)	(3,154)
Purchase of property, plant and equipment	(4,175)	(2,280)
Payment for intellectual property registration	(263)	(230)
Collection of guarantee deposits	1,153	4,984
Payment of guarantee deposits	(2,090)	(7,276)
Increase in short-term financial instruments	(30,000)	—
Others, net	(37)	—
Net cash used in investing activities	(35,397)	(4,621)
Cash flows from financing activities
Proceeds from long-term borrowing	30,059	—
Proceeds from exercise of stock options	—	27
Acquisition of treasury stock	(9,507)	(43,087)
Repayment of financing related to water treatment facility arrangement	(357)	(371)
Repayment of principal portion of finance lease liabilities	(104)	(69)
Net cash provided by (used in) financing activities	20,091	(43,500)
Effect of exchange rates on cash and cash equivalents	(3,702)	(10,518)
Net decrease in cash and cash equivalents	(36,997)	(58,833)
Cash and cash equivalents
Cash and cash equivalents at beginning of period	158,092	225,477
Cash and cash equivalents at end of period	$121,095	$166,644
Supplemental cash flow information
Cash paid for income taxes	$788	$4,000
Non-cash investing activities
Property, plant and equipment additions in other accounts payable	$2,324	$1,029
Non-cash financing activities
Unsettled common stock repurchases	$—	$494

The accompanying notes are

integral part of these consolidated financial 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.