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Mar 31, 2024
MagnaChip Q1 2024 Earnings Report
Magnachip's revenue was within guidance, and standard product business revenue increased sequentially.
Key Takeaways
Magnachip reported Q1 2024 results with consolidated revenue of $49.1 million, within the guidance range. The company saw sequential growth in standard product business revenue and secured new design wins in OLED DDICs and automotive MOSFETs. They also began operations of their new China entity.
Q1 consolidated revenue was $49.1 million, within guidance.
Q1 standard product business revenue increased 10.6% sequentially.
Secured new OLED DDIC designs for smartphone and EV applications.
Power Analog Solutions (PAS) business revenue grew 12% sequentially.
MagnaChip
MagnaChip
MagnaChip Revenue by Segment
Revenue by Segment
Power Solutions Business Revenue
CapyFin.comPower Analog Solutions Revenue
CapyFin.comPower IC Revenue
CapyFin.com Forward Guidance
Magnachip expects sequential revenue growth in Mixed-Signal Solutions (MSS) and PAS to continue in Q2 and reiterates its prior full-year guidance for double digit growth in both MSS and PAS businesses.
Positive Outlook
- Consolidated revenue to be in the range of $49 to $54 million, including approximately $1.5 million of Transitional Foundry Services.
- MSS revenue to be in the range of $9.5 to $11.5 million.
- PAS revenue to be in the range of $38 to $41 million.
- Consolidated gross profit margin to be in the range of 17% to 19%.
- MSS revenue to grow double digits year-over-year as compared with MSS equivalent revenue of $44.4 million in 2023.
Challenges Ahead
- 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%, primarily as a result of the impact of idle capacity expected from the phase-out of Transitional Foundry Services. This compares with the consolidated gross profit margin of 22.4% in 2023.
- MSS gross profit margin to be in the range of 30% to 33%. This compares with MSS equivalent gross profit margin of 44.6% in Q1 2024, which included non-recurring engineering revenue, and 36.4% in Q2 2023.
- PAS gross profit margin to be in the range of 15% to 17%, primarily as a result of the impact of idle capacity from the expected decline in Transitional Foundry Services revenue. This compares with PAS equivalent gross profit margin of 15.4% in Q1 2024 and 23.1% in Q2 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income