Announces successful design-wins with
Smartphone Chinese OEMs
Financial Highlights
- Q4 revenue of $50.8 million was near the low-end of our
guidance range.
- Q4 gross profit margin was 22.7%, near the low-end of our
guidance range.
- Ended Q4 with no debt and cash of $158.1 million.
- Repurchased approximately $8.2 million of stock during the
quarter.
- Full-year revenue of $230.1 million decreased 31.9% YoY.
- Full-year gross profit margin was 22.4%, down 760 bps YoY.
Operational Highlights
- Secured 1st design-win and began initial shipment in Q4 for
first generation OLED DDIC for after-service market.
- Secured 2nd design-win following quarter close with leading
Chinese smartphone OEM for spring launch.
- Entered into strategic commercial partnership with Chinese
watch solution provider to collaborate on OLED smartwatch display
market.
- Display and Power business separation and entity restructuring
completed effective with the start of 2024; New businesses MSS
(Mixed-Signal Solutions) and PAS (Power-Analog Solutions)*
Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or
the “Company”) today announced financial results for the fourth
quarter and full-year 2023.
YJ Kim, Magnachip’s Chief Executive Officer commented, “As we
reflect on the past year and look ahead, we’re shaping our future
with the transformation of our business. First, we have shifted our
Display business to be laser-focused on the burgeoning OLED market
in China and our efforts there are already showing promising
results. We now have two design-wins and a dedicated team on the
ground to help build on this momentum. Additionally, we are working
to optimize our Gumi Fab to transition from lower-margin
Transitional Foundry Services to higher-margin Power products.
Finally, we’ve restructured our company to streamline operations,
enhance shareholder value and increase transparency for our
investors with the completion of our legal separation of historical
Display and Power businesses into MSS and PAS.”
YJ continued, “Looking ahead, for full year 2024, we currently
expect double-digit revenue growth in both the newly organized MSS
and PAS businesses. We currently expect total consolidated company
revenue for full year 2024 to remain relatively flat to slightly up
due to the phase-out of Transitional Foundry Services. We also
anticipate PAS gross margin to be challenged during the transition
period while we convert the Transitional Foundry Services capacity
to Power capacity, but we are committed to navigating this period
with a clear focus on long-term value creation for shareholders.”
____________ *MSS consists of historical Display and Power IC
business, which is operated by Magnachip Mixed-Signal, Ltd., a
limited liability company incorporated in Korea. PAS business is
operated by Magnachip Semiconductor, Ltd., the existing limited
liability company incorporated in Korea.
Q4 and 2023 Financial Highlights
In thousands of U.S. dollars,
except share data
GAAP
Q4 2023
Q3 2023
Q/Q change
Q4 2022
Y/Y change
Revenues
Standard Products Business
Display Solutions
5,232
6,404
down
18.3
%
7,556
down
30.8
%
Power Solutions
35,950
45,215
down
20.5
%
46,271
down
22.3
%
Transitional Fab 3 foundry services(1)
9,640
9,626
up
0.1
%
7,163
up
34.6
%
Gross Profit Margin
22.7
%
23.6
%
down
0.9
%pts
26.4
%
down
3.7
%pts
Operating Loss
(15,935
)
(9,235
)
down
n/a
(10,117
)
down
n/a
Net Income (Loss)
(6,040
)
(5,165
)
down
n/a
2,971
down
n/a
Basic Earnings (Loss) per Common
Share
(0.16
)
(0.13
)
down
n/a
0.07
down
n/a
Diluted Earnings (Loss) per Common
Share
(0.16
)
(0.13
)
down
n/a
0.07
down
n/a
In thousands of U.S. dollars,
except share data
Non-GAAP(2)
Q4 2023
Q3 2023
Q/Q change
Q4 2022
Y/Y change
Adjusted Operating Loss
(14,095
)
(7,064
)
down
n/a
(8,567
)
down
n/a
Adjusted EBITDA
(9,972
)
(2,735
)
down
n/a
(4,768
)
down
n/a
Adjusted Net Loss
(8,044
)
(1,591
)
down
n/a
(15,848
)
up
n/a
Adjusted Loss per Common
Share—Diluted
(0.21
)
(0.04
)
down
n/a
(0.36
)
up
n/a
In thousands of U.S dollars,
except share data
GAAP
2023
2022
Y/Y Change
Revenues
Standard Products Business
Display Solutions
32,134
71,432
down
55.0
%
Power Solutions
163,556
230,464
down
29.0
%
Transitional Fab 3 foundry services(1)
34,361
35,762
down
3.9
%
Gross Profit Margin
22.4
%
30.0
%
down
7.6
pts
Operating Loss
(57,644
)
(5,244
)
down
n/a
Net Loss
(36,622
)
(8,036
)
down
n/a
Basic Loss per Common Share
(0.89
)
(0.18
)
down
n/a
Diluted Loss per Common Share
(0.89
)
(0.18
)
down
n/a
In thousands of U.S dollars,
except share data
Non-GAAP(2)
2023
2022
Y/Y Change
Adjusted Operating Income
(Loss)
(41,170
)
4,091
down
n/a
Adjusted EBITDA
(24,174
)
19,517
down
n/a
Adjusted Net Income (Loss)
(22,474
)
8,752
down
n/a
Adjusted Earnings (Loss) per Common
Share—Diluted
(0.55
)
0.19
down
n/a
___________
(1)
Following the consummation of the sale of the Foundry Services
Group business and Fab 4 in Q3 2020, we provided transitional
foundry services to the buyer for foundry products manufactured in
our fabrication facility located in Gumi, Korea, known as “Fab 3”
(“Transitional Fab 3 Foundry Services”). The contractual obligation
to provide the Transitional Fab 3 Foundry Services ended August 31,
2023, and we are planning to wind down these foundry services and
convert portions of the idle capacity to PAS products beginning
around the second half of 2024. Because these foundry services
during the wind-down period are still provided to the same buyer by
us using our Fab 3 based on mutually agreed terms and conditions,
we will continue to report our revenue from providing these foundry
services and related cost of sales within the Transitional Fab 3
Foundry Services line in our consolidated statement of operations
until such wind down is completed. 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.
Q1 and 2024 Financial Guidance
Beginning in Q1, the Company will begin reporting results under
its newly organized businesses: MSS (Mixed-Signal Solutions) and
PAS (Power-Analog Solutions). While actual results may vary,
Magnachip currently expects the following:
For Q1 2024:
- Consolidated revenue to be in the range of $46 to $51 million,
including approximately $3 million of Transitional Foundry
Services.
- MSS revenue to be in the range of $8 to $10 million. This
compares with MSS equivalent revenue of $8.6 million in Q4
2023.
- PAS revenue to be in the range of $35 to $38 million. This
compares with PAS equivalent revenue of $32.6 million in Q4
2023.
- Consolidated gross profit margin to be in the range of 17% to
20%.
- MSS gross profit margin to be in the range of 40% to 43%, which
includes the positive impact of expected one-time non-recurring
engineering revenue. This compares with MSS equivalent gross profit
margin of 41.3% in Q4 2023, which also included one-time
non-recurring engineering revenue.
- PAS gross profit margin to be in the range of 15% to 18% due
primarily to the expected decline in Transitional Foundry Services
revenue. This compares with PAS equivalent gross profit margin of
18.0% in Q4 2023.
For the full-year 2024:
- MSS revenue to grow double digits year-over-year as compared
with MSS equivalent revenue of $44.4 million in 2023.
- PAS revenue to grow double digits year-over-year as compared
with PAS equivalent revenue of $151.3 million in 2023.
- Consolidated revenue flat-to-up-slightly year-over-year as
recovery in MSS and PAS is offset by the phase-out of Transitional
Foundry Services.
- Consolidated gross profit margin between 17% to 20% due to idle
capacity expected from the phase-out of Transitional Foundry
Services. This compares with the consolidated gross profit margin
of 22.4% in 2023.
Q4 2023 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m.
PT / 5:00 p.m. ET on Wednesday, February 28, 2024, 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/BI736feb7bc081454c8d811cbbeb6b92dc
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 first quarter and full year 2024 revenue
and gross profit margin expectations, future growth and revenue
opportunities from new and existing products and customers, the
timing and extent of future revenue contributions by our products
and businesses, and the impact of market conditions associated with
inflation and higher interest rates, remaining effects from the
COVID-19 pandemic, geopolitical conflicts between Russia-Ukraine
and between Israel-Hamas, sustained military action and conflict in
the Red Sea, and trade tensions between the U.S. and China, on
Magnachip’s first quarter and full year 2024 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 conflicts
between Russia-Ukraine and between Israel-Hamas, sustained military
action and conflict in the Red Sea, and 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 communication,
Internet of Things (“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.
MAGNACHIP SEMICONDUCTOR
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands of U.S. dollars,
except share data)
(Unaudited)
Three Months Ended
Year Ended
December 31,
2023
September 30,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Revenues:
Net sales – standard products business
$
41,182
$
51,619
$
53,827
$
195,690
$
301,896
Net sales – transitional Fab 3 foundry
services
9,640
9,626
7,163
34,361
35,762
Total revenues
50,822
61,245
60,990
230,051
337,658
Cost of sales:
Cost of sales – standard products
business
31,754
36,829
37,150
143,762
202,347
Cost of sales – transitional Fab 3 foundry
services
7,541
9,935
7,742
34,649
34,047
Total cost of sales
39,295
46,764
44,892
178,411
236,394
Gross profit
11,527
14,481
16,098
51,640
101,264
Gross profit as a percentage of standard
products business net sales
22.9
%
28.7
%
31.0
%
26.5
%
33.0
%
Gross profit as a percentage of total
revenues
22.7
%
23.6
%
26.4
%
22.4
%
30.0
%
Operating expenses:
Selling, general and administrative
expenses
12,079
12,089
12,562
48,470
50,872
Research and development expenses
15,383
11,627
13,653
51,563
52,338
Early termination and other charges,
net
—
—
—
9,251
3,298
Total operating expenses
27,462
23,716
26,215
109,284
106,508
Operating loss
(15,935
)
(9,235
)
(10,117
)
(57,644
)
(5,244
)
Interest income
2,519
2,382
2,420
10,435
5,980
Interest expense
(183
)
(189
)
(269
)
(828
)
(1,157
)
Foreign currency gain (loss), net
5,241
(2,583
)
17,492
465
(3,019
)
Other income (loss), net
(42
)
87
(42
)
13
561
Loss before income tax expense
(benefit)
(8,400
)
(9,538
)
9,484
(47,559
)
(2,879
)
Income tax expense (benefit)
(2,360
)
(4,373
)
6,513
(10,937
)
5,157
Net income (loss)
$
(6,040
)
$
(5,165
)
$
2,971
$
(36,622
)
$
(8,036
)
Basic earnings (loss) per common
share—
$
(0.16
)
$
(0.13
)
$
0.07
$
(0.89
)
$
(0.18
)
Diluted earnings (loss) per common
share—
$
(0.16
)
$
(0.13
)
$
0.07
$
(0.89
)
$
(0.18
)
Weighted average number of shares—
Basic
38,834,451
40,145,290
44,054,275
41,013,069
44,850,791
Diluted
38,834,451
40,145,290
44,731,683
41,013,069
44,850,791
MAGNACHIP SEMICONDUCTOR
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In thousands of U.S. dollars,
except share data)
(Unaudited)
December 31,
2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
158,092
$
225,477
Accounts receivable, net
32,641
35,380
Inventories, net
32,733
39,883
Other receivables
4,295
7,847
Prepaid expenses
7,390
10,560
Hedge collateral
1,000
2,940
Other current assets
9,283
15,766
Total current assets
245,434
337,853
Property, plant and equipment, net
100,122
110,747
Operating lease right-of-use assets
4,639
5,265
Intangible assets, net
1,537
1,930
Long-term prepaid expenses
5,736
10,939
Deferred income taxes
50,836
38,324
Other non-current assets
12,187
11,587
Total assets
$
420,491
$
516,645
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
24,443
$
17,998
Other accounts payable
5,292
9,702
Accrued expenses
10,457
9,688
Accrued income taxes
1,496
3,154
Operating lease liabilities
1,914
1,397
Other current liabilities
3,286
5,306
Total current liabilities
46,888
47,245
Accrued severance benefits, net
16,020
23,121
Non-current operating lease
liabilities
2,897
4,091
Other non-current liabilities
10,088
14,035
Total liabilities
75,893
88,492
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000
shares authorized, 56,971,394 shares issued and 38,852,742
outstanding at December 31, 2023 and 56,432,449 shares issued and
43,824,575 outstanding at December 31, 2022
569
564
Additional paid-in capital
273,256
266,058
Retained earnings
298,884
335,506
Treasury stock, 18,118,652 shares at
December 31, 2023 and 12,607,874 shares at December 31, 2022,
respectively
(213,454
)
(161,422
)
Accumulated other comprehensive loss
(14,657
)
(12,553
)
Total stockholders’ equity
344,598
428,153
Total liabilities and stockholders’
equity
$
420,491
$
516,645
MAGNACHIP SEMICONDUCTOR
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands of U.S.
dollars)
(Unaudited)
Three Months
Ended
Year Ended
December 31,
2023
December 31,
2023
December 31,
2022
Cash flows from operating
activities
Net loss
$
(6,040
)
$
(36,622
)
$
(8,036
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities
Depreciation and amortization
4,101
16,684
15,000
Provision for severance benefits
(25
)
5,333
6,289
Loss (gain) on foreign currency, net
(11,159
)
3,373
19,729
Provision for inventory reserves
850
3,885
9,574
Stock-based compensation
1,840
7,223
6,037
Deferred income taxes
(13,493
)
(13,405
)
278
Other, net
165
757
664
Changes in operating assets and
liabilities
Accounts receivable, net
8,318
1,909
10,276
Inventories
(1,265
)
2,370
(12,626
)
Other receivables
(1,146
)
3,847
18,146
Prepaid expenses
3,155
8,808
8,923
Other current assets
15,992
8,048
(13,073
)
Accounts payable
1,086
7,152
(16,325
)
Other accounts payable
(2,196
)
(8,934
)
(9,410
)
Accrued expenses
(126
)
493
(7,228
)
Accrued income taxes
1,445
(1,569
)
(8,400
)
Deferred revenue
782
85
(1,261
)
Other current liabilities
(65
)
(109
)
(645
)
Other non-current liabilities
41
(238
)
749
Contributions to severance insurance
deposit accounts
(4,278
)
(5,101
)
(7,899
)
Payment of severance benefits
(799
)
(6,982
)
(6,012
)
Other, net
(3
)
(21
)
415
Net cash provided by (used in) operating
activities
(2,820
)
(3,014
)
5,165
Cash flows from investing
activities
Proceeds from settlement of hedge
collateral
2,334
5,669
15,232
Payment of hedge collateral
(600
)
(3,754
)
(15,282
)
Proceeds from disposal of property, plant
and equipment
—
—
550
Purchase of property, plant and
equipment
(4,675
)
(6,955
)
(23,394
)
Payment for intellectual property
registration
(33
)
(263
)
(390
)
Collection of guarantee deposits
—
4,984
737
Payment of guarantee deposits
(62
)
(7,338
)
(2,381
)
Net cash used in investing activities
(3,036
)
(7,657
)
(24,928
)
Cash flows from financing
activities
Proceeds from exercise of stock
options
—
27
1,786
Acquisition of treasury stock
(8,695
)
(51,782
)
(13,960
)
Repayment of financing related to water
treatment facility arrangement
(122
)
(493
)
(500
)
Others
(22
)
(91
)
(70
)
Net cash used in financing activities
(8,839
)
(52,339
)
(12,744
)
Effect of exchange rates on cash and cash
equivalents
6,143
(4,375
)
(21,563
)
Net decrease in cash and cash
equivalents
(8,552
)
(67,385
)
(54,070
)
Cash and cash equivalents
Beginning of the period
166,644
225,477
279,547
End of the period
$
158,092
$
158,092
$
225,477
MAGNACHIP SEMICONDUCTOR
CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING
LOSS TO ADJUSTED OPERATING INCOME (LOSS)
(In thousands of U.S.
dollars)
(Unaudited)
Three Months Ended
Year Ended
December 31, 2023
September 30, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Operating loss
$
(15,935
)
$
(9,235
)
$
(10,117
)
$
(57,644
)
$
(5,244
)
Adjustments:
Equity-based compensation expense
1,840
2,171
1,550
7,223
6,037
Early termination and other charges,
net
—
—
—
9,251
3,298
Adjusted Operating Income (Loss)
$
(14,095
)
$
(7,064
)
$
(8,567
)
$
(41,170
)
$
4,091
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 loss adjusted to
exclude (i) Equity-based compensation expense and (ii) Early
termination and other charges, net.
For the year ended December 31, 2023, Early termination and
other charges includes $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
and $802 thousand of one-time employee incentives.
For the year ended December 31, 2022, Early termination and
other charges, net includes $2,821 thousand of one-time employee
incentives and professional service fees and expenses of $1,014
thousand, incurred in connection with certain strategic
evaluations, both of which were offset in part by a $537 thousand
gain on sale of certain legacy equipment of the closed back-end
line in our fabrication facility in Gumi.
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
Year Ended
December 31,
2023
September 30,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Net Income (Loss)
$
(6,040
)
$
(5,165
)
$
2,971
$
(36,622
)
$
(8,036
)
Adjustments:
Interest income
(2,519
)
(2,382
)
(2,420
)
(10,435
)
(5,980
)
Interest expense
183
189
269
828
1,157
Income tax expense (benefit)
(2,360
)
(4,373
)
6,513
(10,937
)
5,157
Depreciation and amortization
4,101
4,081
3,775
16,684
15,000
EBITDA
(6,635
)
(7,650
)
11,108
(40,482
)
7,298
Equity-based compensation expense
1,840
2,171
1,550
7,223
6,037
Foreign currency loss (gain), net
(5,241
)
2,583
(17,492
)
(465
)
3,019
Derivative valuation loss (gain), net
64
161
66
299
(135
)
Early termination and other charges,
net
—
—
—
9,251
3,298
Adjusted EBITDA
$
(9,972
)
$
(2,735
)
$
(4,768
)
$
(24,174
)
$
19,517
Net Income (Loss)
$
(6,040
)
$
(5,165
)
$
2,971
$
(36,622
)
$
(8,036
)
Adjustments:
Equity-based compensation expense
1,840
2,171
1,550
7,223
6,037
Foreign currency loss (gain), net
(5,241
)
2,583
(17,492
)
(465
)
3,019
Derivative valuation loss (gain), net
64
161
66
299
(135
)
Early termination and other charges,
net
—
—
—
9,251
3,298
Income tax effect on non-GAAP
adjustments
1,333
(1,341
)
(2,943
)
(2,160
)
4,569
Adjusted Net Income (Loss)
$
(8,044
)
$
(1,591
)
$
(15,848
)
$
(22,474
)
$
8,752
Adjusted Net Income (Loss) per common
share—
- Basic
$
(0.21
)
$
(0.04
)
$
(0.36
)
$
(0.55
)
$
0.20
- Diluted
$
(0.21
)
$
(0.04
)
$
(0.36
)
$
(0.55
)
$
0.19
Weighted average number of shares –
basic
38,834,451
40,145,290
44,054,275
41,013,069
44,850,791
Weighted average number of shares –
diluted
38,834,451
40,145,290
44,054,275
41,013,069
45,795,559
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 (gain),
net and (iv) Early termination and other charges, net. 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
(gain), net, (iv) Early termination and other charges, net and (v)
Income tax effect on non-GAAP adjustments.
For the year ended December 31, 2023, Early termination and
other charges includes $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
and $802 thousand of one-time employee incentives.
For the year ended December 31, 2022, Early termination and
other charges, net includes $2,821 thousand of one-time employee
incentives and professional service fees and expenses of $1,014
thousand, incurred in connection with certain strategic
evaluations, both of which were offset in part by a $537 thousand
gain on sale of certain legacy equipment of the closed back-end
line in our fabrication facility in Gumi.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228959831/en/
Steven Pelayo The Blueshirt Group Tel. +1 (360) 808-5154
steven@blueshirtgroup.co
Grafico Azioni Magnachip Semiconductor (NYSE:MX)
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Grafico Azioni Magnachip Semiconductor (NYSE:MX)
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