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Sep 30, 2020
MagnaChip Q3 2020 Earnings Report
MagnaChip's Q3 2020 results were announced, featuring the completion of the Foundry Services Group business sale, revenue growth, and a healthy cash balance.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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