MagnaChip Q2 2020 Earnings Report
Key Takeaways
MagnaChip Semiconductor Corporation announced financial results for the second quarter of 2020, with GAAP earnings per share of $0.34 and non-GAAP diluted earnings per share of $0.13. The company's cash balance reached $192.8 million, the highest since its IPO in March 2011, and net operating cash flow was $36.0 million, marking the fifth consecutive quarter of positive operating cash flow.
GAAP earnings per share of $0.34 from continuing operations.
Non-GAAP diluted earnings per share from continuing operations of $0.13.
Cash of $192.8 million, the highest since IPO in March 2011.
Non-GAAP combined revenue of $204.7 million from total operations exceeded the high-end of the guidance range.
MagnaChip
MagnaChip
Forward Guidance
MagnaChip anticipates revenue from continuing operations to be in the range of $118 million to $124 million and gross profit margin from continuing operations to be in the range of 25% to 27% for Q3 2020.
Positive Outlook
- Revenue from the continuing operations to be in the range of $118 million to $124 million, including $9.5 million to $10 million of the Transitional Fab 3 Foundry Services at cost
- Company nearly fully operational in Fab 3 facility as of the date of this earnings report.
- Expect to close the pending sale of the Foundry business and Fab 4 in Q3.
- Evaluating potential insurance and other claims for the loss and damages due to the power outage.
- Without the estimated power outage impact, gross profit margin from continuing operations would have been in the range of 27% and 29%
Challenges Ahead
- Fab 3 facility in Gumi, South Korea experienced a temporary power outage for approximately 9 hours and 15 minutes on July 20, 2020.
- The accident caused damage to work-in-process wafers with an estimated total cost of up to approximately $2.3 million.
- The COVID-19 global pandemic and escalated trade tension are rapidly evolving situations and reduce forward visibility.
- Actual results may vary.
- Related impact to revenue from continuing operations expected to be negligible.