MagnaChip Q3 2020 Earnings Report
Key Takeaways
MagnaChip reported a successful third quarter, highlighted by the completion of the Foundry business sale and a 5% sequential revenue growth. The company's net income was $273.0 million, including income from discontinued operations. The company also paid $227.4 million to fully redeem 6.625% 2021 Senior Notes.
Completed the sale of the Foundry Services Group business and Fab 4 on September 1, 2020.
Cash balance as of September 30, 2020 was $542.1 million including approximately $350.6 million cash proceeds.
Revenue of $124.8 million, including $8.6 million revenue from transitional foundry service, increased 5% sequentially.
Net income of $273.0 million, including a $287.1 million gain on sale of the Foundry Services Group business and Fab 4.
MagnaChip
MagnaChip
MagnaChip Revenue by Segment
Forward Guidance
MagnaChip anticipates for Q4 2020 revenue to be in the range of $128 million to $136 million, including $10 million to $11 million of the Transitional Fab 3 Foundry Services, and gross profit margin to be in the range of 25% to 27%.
Positive Outlook
- Revenue to be in the range of $128 million to $136 million, which represents approximately 3% to 9% sequential growth.
- Transitional Fab 3 Foundry Services revenue of $10 million to $11 million is expected.
- Gross profit margin to be in the range of 25% to 27%.
Challenges Ahead
- The COVID-19 global pandemic is still evolving and continues to reduce forward visibility.
- Actual results may vary.
Revenue & Expenses
Visualization of income flow from segment revenue to net income