Loading...
•
Jun 30, 2024
MagnaChip Q2 2024 Earnings Report
Second quarter results exceeded expectations, with revenue above the midpoint of guidance and gross margin surpassing the upper end of guidance.
Key Takeaways
Magnachip reported Q2 2024 financial results with consolidated revenue of $53.2 million and a gross profit margin of 21.8%. The Standard Products Business saw an 11.6% sequential increase in revenue and a gross profit margin of 23.1%. The company ended the quarter with $132.5 million in cash and repurchased approximately 0.5 million shares for $2.3 million.
Q2 consolidated revenue was $53.2 million, exceeding the mid-point of the guidance range.
Standard product business revenue increased by 11.6% sequentially.
Consolidated gross profit margin was 21.8%, surpassing the upper end of the guidance range.
Ended Q2 with cash of $132.5 million and repurchased 0.5 million shares for $2.3 million.
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 Q3 for its Standard Product Business, driven by leaner distribution channels in Power, seasonality, and increased demand in OLED and Power IC businesses.
Positive Outlook
- Consolidated revenue to be in the range of $61.5 to $66.5 million, including approximately $1.5 million of Transitional Foundry Services.
- MSS revenue to be in the range of $14.5 to $16.5 million, up 33.7% sequentially and 46.2% year-over-year at the mid-point.
- PAS revenue to be in the range of $45.5 to $48.5 million, up 19.8% sequentially and 14.6% year-over-year at the mid-point.
- Consolidated gross profit margin to be in the range of 22.5% to 24.5%.
- MSS gross profit margin to be in the range of 36.5% to 39.5%.
Challenges Ahead
- PAS gross profit margin to be in the range of 18.5% to 20.5%.
- Transitional Foundry Services revenue will decline in 2024, as expected.
- Consolidated revenue flattish-to-slightly down, compared to prior expectation of flat-to-up-slightly year-over-year.
- Consolidated gross profit margin between 19% to 22%, above our prior expectation of 17% to 20%.
- This compares with the consolidated gross profit margin of 22.4% in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income