SEOUL, South Korea and
SAN JOSE, Calif., April 30, 2019 /PRNewswire/ -- MagnaChip
Semiconductor Corporation (NYSE: MX) today announced financial
results for the first quarter of 2019.
Q1 2019 Summary
- Revenue of $157.4 million
exceeded the guidance range of $150-$155 million;
revenue down 5.1% Year-over-Year (YoY)
- Standard Products Group (SPG) revenue of $100.3 million, up 13.5% YoY
-
- Display Standard Products revenue of $58.2 million, up 17.2%; OLED revenue up 41.4%
YoY
- Power Standard Products revenue of $42.0
million, up 8.7% YoY
- Foundry Services Group (FSG) revenue of $57.1 million, down 26.3% YoY due to a previously
disclosed customer inventory correction and a previously announced
decision to be more selective about new business as a result of a
strategic evaluation of the Foundry business and Fab 4
- Total gross profit margin of 14.4% was within the guidance
range of 14-16%; gross margin down 12.5 percentage points YoY due
primarily to a widely anticipated decline in Foundry fab
utilization, and an inventory reserve of $3.3 million related to a legacy display
product
Second Quarter 2019 Business Outlook
For the second
quarter of 2019, MagnaChip anticipates:
- Revenue to be in the range of $173
million to $181 million, up
12.5% at the mid-point of the projected range when compared with
revenue of $157.4 million in the
first quarter of 2019, and down 11.4% year-on-year when compared to
the $199.7 million revenue recorded
in the second quarter of 2018. Revenue guidance for the second
quarter reflects an expectation that standard product revenue will
show double-digit sequential improvement, and Foundry revenue will
be flattish as compared to Q1 2019.
- Gross profit margin to be in the range of 16% to 18%, as
compared to 14.4% in the first quarter of 2019 and 27% in the
second quarter of 2018. Gross margin guidance reflects the
expectation that fab utilization in the Foundry business has
stabilized.
Statement on strategic evaluation of the Foundry business and
Fab 4
Chairman of the Board Nader Tavakoli said, "The Board
and Company-led strategic evaluation of the Foundry business and
Fab 4 that was announced in February is ongoing and supported by
our financial advisor, JP Morgan, and legal advisor, Paul, Weiss.
The Company intends to provide updates about the strategic
evaluation process in a timely manner when meaningful milestones
are achieved. As stated previously, the Board is committed to
improving MagnaChip's profitability and unlocking shareholder
value. As we proceed with the strategic evaluation of the Foundry
business and Fab 4, we will be mindful of the best interests of all
of our stakeholders, including shareholders, customers and
employees."
CEO Comments on Q1 business
"Revenue for both OLED and
Power standard products achieved the highest levels ever recorded
in the first quarter of a year, despite typically weak seasonal
trends and a soft China smartphone
market.
In the display segment, OLED revenue increased over 41% year
over year, and we were awarded six OLED design wins from leading
smartphone makers in China. We
also commenced volume production of OLED DDICs for mid-range
smartphones from a major Korean brand. We added our ninth OLED DDIC
with the launch of the industry's most power-efficient 28-nanometer
OLED DDIC, manufactured with the most advanced process technology
used for DDICs. We also announced an OLED ecosystem initiative with
three companies initially to develop next-generation features to
improve the functionality of OLED platform solutions in a wide
range of products and markets.
In the Power segment, revenue from Premium products increased
nearly 46% from the first quarter a year ago, and accounted for
nearly 55% of Power revenue, as compared with 40% in the first
quarter of 2018. We also continued to make inroads in the
automotive sector, as we commenced shipments of two different
high-voltage power standard products to a customer in that
market.
Our Foundry revenue and fab utilization both experienced a
severe decline in Q1, as was widely anticipated. While the Foundry
business will remain weak in Q2, the business has recently showed
signs of stabilizing."
First Quarter Financial Review
Total
Revenue
Total revenue in the first quarter of 2019 was
$157.4 million, down 5.1% as compared
to reported revenue of $165.8 million
from the first quarter of 2018, and down 12.3% from $179.4 million in the fourth quarter of
2018.
Segment Revenue
Foundry Services Group revenue in the
first quarter was $57.1 million, 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
$100.3 million, up 13.5% YoY and up
4.2% sequentially. The improved results in the Standard Products
Group year-over-year were primarily 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 an increase in demand for premium Power products such as
high-voltage MOSFETS, primarily for TV and industrial applications.
The revenue improvement in the Standard Products Group was offset
in part by a strategic 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 $22.7 million or 14.4 % as a percentage of
revenue as compared with gross profit of $44.6 million or 26.9% in the first quarter of
2018, and $43.9 million or 24.5% in
the fourth quarter of 2018.
Segment Gross Profit Margin
Foundry Services Group
gross profit margin was 6.4% as compared with 26.7% in the first
quarter of 2018 and 23.2% in the fourth quarter of 2018. The
Standard Products Group gross profit margin was 19.0% in the first
quarter of 2019 as compared with 27.2% in the first quarter of 2018
and 25.6% in the fourth quarter of 2018. The sequential and YoY
decline in the Standards Products Group gross profit margin was
attributable in part by an additional inventory reserve of
$3.3 million related to a legacy
display product.
Operating Income, Net Income, Adjusted Net Income,
Adjusted EBITDA
Operating loss, on a GAAP basis, for the
first quarter of 2019 was $18.3
million, as compared with an income of $7.4 million in the first quarter of 2018 and an
income of $7.9 million in the fourth
quarter of 2018.
Net loss, on a GAAP basis, was $34.1
million or $1.00 per basic and
diluted share in the first quarter of 2019, as compared with net
income of $2.8 million or
$0.08 per basic and diluted share in
the first quarter of 2018, and net loss of $2.4 million or $0.07 per basic and diluted share in the fourth
quarter of 2018.
Adjusted Net Loss, a non-GAAP financial measure, totaled
$19.9 million or $0.58 per basic and diluted share in the first
quarter of 2019, as compared with Adjusted Net Income of
$1.4 million or $0.04 per basic and diluted share in the first
quarter of 2018, and Adjusted Net Income of $3.5 million 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 $5.7
million or negative 3.6% of revenue in the first quarter of
2019, as compared with Adjusted EBITDA of $15.5 million or 9.3% of revenue in the first
quarter of 2018, and Adjusted EBITDA of $17.4 million or 9.7% of revenue in the fourth
quarter of 2018.
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 MagnaChip's
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 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.
Cash and cash equivalents totaled $105.8
million in the first quarter of 2019, down from $132.4 million at the end of the fourth quarter
of 2018.
|
|
Three Months
Ended
|
|
|
|
March 31,
2019
|
|
|
March 31,
2018
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
Foundry Services
Group
|
|
$
|
57,075
|
|
|
$
|
77,429
|
|
Standard Products
Group
|
|
|
|
|
|
|
|
|
Display
Solutions
|
|
|
58,230
|
|
|
|
49,696
|
|
Power
Solutions
|
|
|
42,030
|
|
|
|
38,667
|
|
Total Standard
Products Group
|
|
$
|
100,260
|
|
|
$
|
88,363
|
|
All other
|
|
|
45
|
|
|
|
27
|
|
Total net
sales
|
|
$
|
157,380
|
|
|
$
|
165,819
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2019
|
|
|
March 31,
2018
|
|
|
|
Amount
|
|
|
%
of
Net Sales
|
|
|
Amount
|
|
|
%
of
Net Sales
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foundry Services
Group
|
|
$
|
3,637
|
|
|
|
6.4%
|
|
|
$
|
20,664
|
|
|
|
26.7%
|
|
Standard Products
Group
|
|
|
19,020
|
|
|
|
19.0
|
|
|
|
24,039
|
|
|
|
27.2
|
|
All other
|
|
|
45
|
|
|
|
100.0
|
|
|
|
(122)
|
|
|
|
(452)
|
|
Total gross
profit
|
|
$
|
22,702
|
|
|
|
14.4%
|
|
|
$
|
44,581
|
|
|
|
26.9%
|
|
First Quarter 2019 and Recent Company
Highlights
MagnaChip announced:
- A launch of its 28-nanometer OLED Display Driver IC for
smartphone displays, The 28nm process is the most advanced used
today for manufacturing OLED DDICs, achieves a form factor
reduction of 20 percent compared with the previous 40nm process,
has a logic voltage of 1.0V vs. 1.1V in the previous generation,
and also is expected to improve call quality by reducing EMI
(Electromagnetic Interference) levels by 20 percent as compared to
the 40nm DDIC, MagnaChip's product roadmap includes plans to expand
the feature set of OLED DDICs to include Ultra-High Definition
(UHD) capabilities.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-launches-28-nanometer-oled-ddic-smartphone-displays
- A new initiative to partner with companies in the development
of next-generation display features of smartphones and other mobile
or handheld consumer electronic devices. MagnaChip intends to
develop individual strategic partnerships with leading
manufacturers of touch, stylus, fingerprint technologies, and
associated OLED display technologies. Each company will collaborate
with MagnaChip to develop and standardize innovative
human-interface solutions based upon smart touch, stylus and
fingerprint technologies that are suitable for MagnaChip's industry
leading OLED DDICs. The goal in each instance will be to improve
the functionality of OLED displays on end user devices. There also
will be a specified collaboration in shared intellectual property
that will extend into new applications, including the IoT and
automotive sectors.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-announces-initiative-develop-next-generation-display
- A partnership with ELAN Microelectronics Corp. to expand the
capabilities for OLED displays for a wide variety of
next-generation consumer, communication, computing and industrial
products, as well as for automotive displays. The partnership seeks
to build upon the recent growth and market penetration of OLED
displays in areas such as smartphones, mobile devices, tablets and
automotive applications, ranging from navigation and infotainment
screens to brake light and interior lighting systems.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-and-elan-microelectronics-announce-partnership-expand
- A partnership with HiDeep to develop advanced OLED display
capabilities for smartphone makers and other handheld consumer
electronics devices. MagnaChip will cooperate with HiDeep to
develop enhanced HMI solutions optimized for the growing OLED
display market. Specifically, MagnaChip and HiDeep will collaborate
and create useful and cost effective new HMI solutions for flexible
OLED displays for top-tier panel makers and smartphone OEMs. This
collaboration also will extend into a variety of other applications
and end markets.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-and-hideep-inc-announce-partnership-develop-enhanced
- A partnership with Melfas Inc. to develop advanced OLED display
capabilities for the automotive and consumer electronics sectors.
Currently, OLED technology is deployed primarily in televisions and
mobile products such as smartphones and smartwatches, but MagnaChip
and Melfas are working towards developing automotive
display-related solutions in an effort to respond to this
fast-growing market. With their current solutions, the two
companies will initially address opportunities in consumer
electronics and, going forward, will work together to develop
solutions for OLED displays in automotive applications.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-and-melfas-inc-announce-partnership-collaborate-oled
- An offering of second generation 0.13 micron 18V high-voltage
process technology to its foundry customers. The technology, which
is dedicated for designing source drivers for LCD and OLED
televisions, offers fewer steps, allows suitable high-voltage
design rules to shrink chip size, and adds a new device for DAC
block design, as compared to the first-generation process.
http://investors.magnachip.com/news-releases/news-release-details/magnachip-offers-013-micron-18v-high-voltage-gen2-technology
First Quarter 2019 Conference Call
The conference call
will be webcast live today (April 30,
2019) at 5:00 p.m. EDT and
also is available by dialing toll-free at 1-844-536-5472.
International call-in participants can dial 1-614-999-9318. The
conference ID number is 8618428. Participants are encouraged to
initiate their calls at least 10 minutes in advance of the
5:00 p.m. EDT start time to ensure a
timely connection. The webcast and earnings release will be
accessible at www.magnachip.com. A replay of the conference call
will be available the same day and will run for 72 hours. The
replay dial-in numbers are 1-404-537-3406 or toll-free at
1-855-859-2056. The access code is 8618428.
About MagnaChip
Semiconductor Corporation
MagnaChip is a
designer and manufacturer of analog and mixed-signal semiconductor
platform solutions for communications, IoT, consumer,
industrial and automotive applications. The Company's
Standard Products Group and Foundry Services Group provide a broad
range of standard products and manufacturing services to customers
worldwide. MagnaChip, with about 40 years of operating history,
owns a portfolio of approximately 3,000 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.
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
statements about our future operating and financial performance,
including but not limited to second quarter 2019 revenue
and gross profit margin expectations. 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 general economic conditions, the impact of
competitive products and pricing, timely design acceptance by our
customers, timely introduction of new products and technologies,
ability to ramp new products into volume production, industry wide
shifts in supply and demand for semiconductor products, industry
and/or company overcapacity, 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 which can be eliminated, compliance with U.S. and
international trade and export laws and regulations by us and our
distributors, and other risks detailed from time to time in
MagnaChip's filings with the SEC, including our Form
10-K filed on February 22, 2019
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.
CONTACTS:
|
|
In the United
States:
Bruce
Entin
Investor
Relations
Tel.
+1-408-625-1262
Investor.relations@magnachip.com
|
In
Korea:
Chankeun
Park
Director, Public
Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com
|
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands of
US dollars, except share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2019
|
|
December
31,
2018
|
|
March 31,
2018
|
|
Net sales
|
|
$
|
157,380
|
|
$
|
179,394
|
|
$
|
165,819
|
|
Cost of
sales
|
|
|
134,679
|
|
|
135,482
|
|
|
121,238
|
|
Gross
profit
|
|
|
22,701
|
|
|
43,912
|
|
|
44,581
|
|
Gross profit
%
|
|
|
14.4
|
%
|
|
24.5
|
%
|
|
26.9
|
%
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
18,070
|
|
|
17,516
|
|
|
17,622
|
|
Research and
development expenses
|
|
|
20,018
|
|
|
18,536
|
|
|
19,580
|
|
Restructuring and
other charges
|
|
|
2,894
|
|
|
—
|
|
|
—
|
|
Total operating
expenses
|
|
|
40,982
|
|
|
36,052
|
|
|
37,202
|
|
Operating
income (loss)
|
|
|
(18,281)
|
|
|
7,860
|
|
|
7,379
|
|
Interest
expense
|
|
|
(5,637)
|
|
|
(5,743)
|
|
|
(5,463)
|
|
Foreign currency gain
(loss), net
|
|
|
(9,997)
|
|
|
(4,316)
|
|
|
1,318
|
|
Loss on early
extinguishment of long-term borrowings, net
|
|
|
(42)
|
|
|
(206)
|
|
|
—
|
|
Other income,
net
|
|
|
673
|
|
|
555
|
|
|
519
|
|
Income (loss) before
income tax expenses
|
|
|
(33,284)
|
|
|
(1,850)
|
|
|
3,753
|
|
Income tax
expenses
|
|
|
841
|
|
|
530
|
|
|
990
|
|
Net income
(loss)
|
|
$
|
(34,125)
|
|
$
|
(2,380)
|
|
$
|
2,763
|
|
Earnings (loss) per
common share :
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
$
|
(1.00)
|
|
$
|
(0.07)
|
|
$
|
0.08
|
|
- Diluted
|
|
$
|
(1.00)
|
|
$
|
(0.07)
|
|
$
|
0.08
|
|
Weighted average
number of shares—Basic
|
|
|
34,194,878
|
|
|
34,627,292
|
|
|
34,253,111
|
|
Weighted average
number of shares—Diluted
|
|
|
34,194,878
|
|
|
34,627,292
|
|
|
35,154,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET
INCOME
|
(In thousands of
US dollars, except share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2019
|
|
|
December 31,
2018
|
|
|
March 31,
2018
|
|
Net income
(loss)
|
|
$
|
(34,125)
|
|
|
$
|
(2,380)
|
|
|
$
|
2,763
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
5,059
|
|
|
|
5,180
|
|
|
|
5,123
|
|
Income tax
expenses
|
|
|
841
|
|
|
|
530
|
|
|
|
990
|
|
Depreciation and
amortization
|
|
|
8,303
|
|
|
|
8,165
|
|
|
|
7,958
|
|
EBITDA
|
|
|
(19,922)
|
|
|
|
11,495
|
|
|
|
16,834
|
|
Restructuring and
other charges
|
|
|
2,894
|
|
|
|
—
|
|
|
|
—
|
|
Equity-based
compensation expense
|
|
|
669
|
|
|
|
1,320
|
|
|
|
665
|
|
Foreign currency loss
(gain), net
|
|
|
9,997
|
|
|
|
4,315
|
|
|
|
(1,318)
|
|
Derivative valuation
loss, net
|
|
|
56
|
|
|
|
144
|
|
|
|
76
|
|
Restatement related
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
(765)
|
|
Loss on early
extinguishment of long-term borrowings, net
|
|
|
42
|
|
|
|
206
|
|
|
|
—
|
|
Others
|
|
|
585
|
|
|
|
(89)
|
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
(5,679)
|
|
|
$
|
17,391
|
|
|
$
|
15,492
|
|
Net income
(loss)
|
|
$
|
(34,125)
|
|
|
$
|
(2,380)
|
|
|
$
|
2,763
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other charges
|
|
|
2,894
|
|
|
|
—
|
|
|
|
—
|
|
Equity-based
compensation expense
|
|
|
669
|
|
|
|
1,320
|
|
|
|
665
|
|
Foreign currency loss
(gain), net
|
|
|
9,997
|
|
|
|
4,315
|
|
|
|
(1,318)
|
|
Derivative valuation
loss, net
|
|
|
56
|
|
|
|
144
|
|
|
|
76
|
|
Restatement related
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
(765)
|
|
Loss on early
extinguishment of long-term borrowings, net
|
|
|
42
|
|
|
|
206
|
|
|
|
—
|
|
Others
|
|
|
585
|
|
|
|
(89)
|
|
|
|
—
|
|
Adjusted Net Income
(Loss)
|
|
$
|
(19,882)
|
|
|
$
|
3,516
|
|
|
$
|
1,421
|
|
Adjusted Net
Income (Loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
$
|
(0.58)
|
|
|
$
|
0.10
|
|
|
$
|
0.04
|
|
- Diluted
|
|
$
|
(0.58)
|
|
|
$
|
0.10
|
|
|
$
|
0.04
|
|
Weighted average
number of shares – Basic
|
|
|
34,194,878
|
|
|
|
34,627,292
|
|
|
|
34,253,111
|
|
Weighted average
number of shares – Diluted
|
|
|
34,194,878
|
|
|
|
35,128,341
|
|
|
|
35,154,693
|
|
|
We present Adjusted EBITDA and Adjusted Net
Income (Loss) as non-GAAP supplemental measures of our
performance. We define Adjusted EBITDA for the periods indicated as
EBITDA (as defined below), adjusted to exclude
(i) Restructuring and other charges, (ii) Equity-based
compensation expense, (iii) Foreign currency loss (gain), net,
(iv) Derivative valuation loss, net, (v) Restatement related
expenses, (vi) Loss on early extinguishment of long-term
borrowings, net and (vii) Others. EBITDA for the periods
indicated is defined as net income (loss) before interest expense,
net, income tax expenses and depreciation and amortization. We
prepare Adjusted Net Income 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) Restructuring and other charges, (ii) Equity-based
compensation expense, (iii) Foreign currency loss (gain), net,
(iv) Derivative valuation loss, net, (v) Restatement related
expenses, (vi) Loss on early extinguishment of long-term
borrowings, net and (vii) Others.
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands of
US dollars, except share data)
|
(Unaudited)
|
|
|
March 31,
2019
|
|
December 31,
2018
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
105,812
|
|
$
132,438
|
Accounts receivable,
net
|
92,056
|
|
80,003
|
Unbilled accounts
receivable
|
27,885
|
|
38,181
|
Inventories,
net
|
80,794
|
|
71,611
|
Other
receivables
|
8,035
|
|
3,702
|
Prepaid
expenses
|
13,781
|
|
11,133
|
Hedge
collateral
|
3,560
|
|
5,810
|
Other current
assets
|
7,293
|
|
9,867
|
|
|
|
|
Total current
assets
|
339,216
|
|
352,745
|
|
|
|
|
Property, plant and
equipment, net
|
201,738
|
|
202,171
|
Operating lease
right-of-use assets
|
13,046
|
|
—
|
Intangible assets,
net
|
3,900
|
|
3,953
|
Long-term prepaid
expenses
|
13,028
|
|
15,598
|
Other non-current
assets
|
9,038
|
|
8,729
|
|
|
|
|
Total
assets
|
$
579,966
|
|
$
583,196
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
76,031
|
|
$
55,631
|
Other accounts
payable
|
18,884
|
|
15,168
|
Accrued
expenses
|
43,481
|
|
46,250
|
Deferred
revenue
|
6,907
|
|
6,477
|
Other current
liabilities
|
4,531
|
|
9,133
|
|
|
|
|
Total current
liabilities
|
149,834
|
|
132,659
|
|
|
|
|
Long-term borrowings,
net
|
303,016
|
|
303,577
|
Non-current operating
lease liabilities
|
10,975
|
|
—
|
Accrued severance
benefits, net
|
144,502
|
|
146,031
|
Other non-current
liabilities
|
17,950
|
|
18,239
|
|
|
|
|
Total
liabilities
|
626,277
|
|
600,506
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock,
$0.01 par value, 150,000,000 shares authorized,
43,230,535 shares issued and
34,223,502 outstanding at March 31, 2019 and
43,054,458 shares issued and 34,441,232 outstanding
at December 31, 2018
|
433
|
|
431
|
Additional paid-in
capital
|
143,315
|
|
142,600
|
Accumulated
deficit
|
(70,430 )
|
|
(36,305 )
|
Treasury stock,
9,007,033 shares at March 31, 2019 and 8,613,226
shares at December 31, 2018,
respectively
|
(106,511 )
|
|
(103,926 )
|
Accumulated other
comprehensive loss
|
(13,118 )
|
|
(20,110 )
|
|
|
|
|
Total stockholders'
deficit
|
(46,311 )
|
|
(17,310 )
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
579,966
|
|
$
583,196
|
|
|
|
|
|
Under the new leases standard (codified as
Accounting Standards Codification 842, and effective January 1, 2019), operating leases as of
March 31, 2019 are recognized in
operating lease right-of-use assets of $13.0
million, and other current liabilities of $2.1 million for the current portion of operating
lease liabilities and non-current operating lease liabilities of
$11.0 million on our consolidated
balance sheets. Finance lease right-of-use assets of $2.4 million are included in property, plant and
equipment, net and the current and non-current portions of finance
lease liabilities are included in other current liabilities of
$0.2 million and other non-current
liabilities of $2.2 million in our
consolidated balance sheets, respectively.
MAGNACHIP
SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In thousands of
US dollars)
|
(Unaudited)
|
|
|
|
Year
Ended
|
|
|
|
March 31,
2019
|
|
|
March 31,
2018
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
$
|
(34,125)
|
|
|
$
|
2,763
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
8,303
|
|
|
|
7,958
|
|
Provision for
severance benefits
|
|
|
3,117
|
|
|
|
4,512
|
|
Amortization of debt
issuance costs and original issue discount
|
|
|
571
|
|
|
|
532
|
|
Loss (gain) on foreign
currency, net
|
|
|
11,720
|
|
|
|
(1,682)
|
|
Restructuring and
other charges
|
|
|
2,894
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
669
|
|
|
|
1,469
|
|
Loss on early
extinguishment of long-term borrowings, net
|
|
|
42
|
|
|
|
—
|
|
Other
|
|
|
96
|
|
|
|
(337)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(12,844)
|
|
|
|
3,115
|
|
Unbilled accounts
receivable
|
|
|
9,726
|
|
|
|
(639)
|
|
Inventories,
net
|
|
|
(10,585)
|
|
|
|
(13,150)
|
|
Other
receivables
|
|
|
(4,205)
|
|
|
|
(3,746)
|
|
Other current
assets
|
|
|
1,836
|
|
|
|
(1,071)
|
|
Accounts
payable
|
|
|
20,874
|
|
|
|
3,168
|
|
Other accounts
payable
|
|
|
2,725
|
|
|
|
(2,759)
|
|
Accrued
expenses
|
|
|
(5,365)
|
|
|
|
(7,129)
|
|
Deferred
revenue
|
|
|
555
|
|
|
|
4,809
|
|
Other current
liabilities
|
|
|
(6,848)
|
|
|
|
(570)
|
|
Other non-current
liabilities
|
|
|
1,085
|
|
|
|
618
|
|
Payment of severance
benefits
|
|
|
(2,263)
|
|
|
|
(2,247)
|
|
Other
|
|
|
347
|
|
|
|
465
|
|
Net cash used in
operating activities
|
|
|
(11,675)
|
|
|
|
(3,921)
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Proceeds from
settlement of hedge collateral
|
|
|
2,242
|
|
|
|
4,863
|
|
Purchase of plant,
property and equipment
|
|
|
(11,207)
|
|
|
|
(7,329)
|
|
Payment for
intellectual property registration
|
|
|
(232)
|
|
|
|
(409)
|
|
Collection of
guarantee deposits
|
|
|
298
|
|
|
|
14
|
|
Payment of guarantee
deposits
|
|
|
(892)
|
|
|
|
—
|
|
Other
|
|
|
(10)
|
|
|
|
(36)
|
|
Net cash used in
investing activities
|
|
|
(9,801)
|
|
|
|
(2,897)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Repurchase of
long-term borrowings
|
|
|
(1,175)
|
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
48
|
|
|
|
142
|
|
Acquisition of
treasury stock
|
|
|
(2,353)
|
|
|
|
—
|
|
Repayment of financing
related to water treatment facility arrangement
|
|
|
(143)
|
|
|
|
—
|
|
Repayment of principal
portion of lease liabilities
|
|
|
(59)
|
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
|
|
(3,682)
|
|
|
|
142
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash
|
|
|
(1,468)
|
|
|
|
1,237
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
|
(26,626)
|
|
|
|
(5,439)
|
|
Cash,
cash
equivalents and restricted
cash
|
|
|
|
|
|
|
|
|
Beginning of the
period
|
|
|
132,438
|
|
|
|
128,575
|
|
End of the
period
|
|
$
|
105,812
|
|
|
$
|
123,136
|
|
View original
content:http://www.prnewswire.com/news-releases/magnachip-reports-first-quarter-2019-financial-results-300840533.html
SOURCE MagnaChip Semiconductor Corporation