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Mar 31
MagnaChip Q1 2025 Earnings Report
MagnaChip reported results for the first quarter 2025
Key Takeaways
Magnachip reported consolidated revenue from continuing operations of $44.7 million for Q1 2025, which was in line with guidance. The company achieved 12.1% year-over-year revenue growth from continuing operations and increased gross margin to 20.9%. The Display business has been classified as discontinued operations from Q1 2025.
Consolidated revenue from continuing operations was $44.7 million, in line with guidance.
Gross profit margin from continuing operations was 20.9%, exceeding the high end of guidance.
Achieved 12.1% year-over-year revenue growth from continuing operations, primarily driven by Power Analog Solutions and Power IC.
The Display business has been classified as discontinued operations from Q1 2025, with expected significant cost savings.
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
For Q2 2025, Magnachip expects consolidated revenue from continuing operations to be between $45 million and $49 million, and gross profit margin from continuing operations to be between 19.5% and 21.5%. For the full-year 2025, the company expects consolidated revenue from continuing operations to grow mid-to-high single digit year-over-year and gross profit margin between 19.5% and 21.5%.
Positive Outlook
- Expected sequential and year-over-year revenue growth in Q2 from continuing operations.
- Full-year 2025 revenue from continuing operations expected to grow mid-to-high single digit year-over-year.
- New generation power products expected to begin production in the second half of 2025.
- Significant cost savings expected from the shutdown of the Display business.
- Strong balance sheet.
Challenges Ahead
- Gross profit margin from continuing operations in Q2 2025 expected to be lower year-over-year.
- Full-year 2025 gross profit margin from continuing operations expected to be lower year-over-year.
- Mindful of geopolitical and macroeconomic uncertainties.
- Foreign currency fluctuations can impact results.
- Manufacturing capacity constraints or supply chain disruptions could impact ability to deliver products or affect component prices.
Revenue & Expenses
Visualization of income flow from segment revenue to net income