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Sep 30, 2022
MagnaChip Q3 2022 Earnings Report
Q3 2022 results were announced with revenue within guidance, but gross profit margin fell below expectations due to a charge related to scrapped wafers.
Key Takeaways
Magnachip reported Q3 2022 revenue of $71.2 million, which was within their guidance range. However, the gross profit margin was below the low end of the guidance range due to a $3.3 million charge for scrapping wafers. GAAP diluted loss per share was $0.38, while non-GAAP diluted earnings per share was $0.02.
Revenue of $71.2 million was within guidance range.
Gross profit margin was 24.2%, below the low end of guidance due to a $3.3 million charge.
GAAP diluted loss per share was $0.38.
Non-GAAP diluted earnings per share was $0.02.
MagnaChip
MagnaChip
Forward Guidance
The company expects challenges in Q4 2022 due to OLED wafer allocation constraints, elevated smartphone channel inventories, a pushout of mass production ramp of new OLED customer, and weakening demand. Revenue is expected to be in the range of $57 million to $62 million, including about $7 million of Transitional Fab 3 Foundry Services. Gross profit margin is expected to be in the range of 26% to 28%.
Challenges Ahead
- OLED wafer allocation constraints impacted design-in projects
- Elevated smartphone channel inventories
- Pushout of the initial mass production ramp of our new OLED customer
- Weakening demand in consumer end markets on growing recession fears
- Cost increases, including labor, due to inflationary pressures