MagnaChip Q3 2024 Earnings Report
Key Takeaways
Magnachip reported Q3 2024 consolidated revenue of $66.5 million, at the high-end of the guidance range. The company's Standard Product business revenue increased by 25.9% sequentially. Consolidated gross profit margin was 23.3%, aligning with guidance. The company ended the quarter with $121.1 million in cash and repurchased approximately 0.5 million shares for $2.5 million.
Q3 consolidated revenue reached $66.5 million, hitting the high-end of the projected range.
Standard product business revenue saw a substantial 25.9% sequential increase.
Consolidated gross profit margin was 23.3%, in line with the expected mid-point.
The company concluded Q3 with $121.1 million in cash reserves.
MagnaChip
MagnaChip
Forward Guidance
For Q4 2024, Magnachip anticipates consolidated revenue to be in the range of $59.0 to $64.0 million, including approximately $2.0 million from Transitional Foundry Services. They expect MSS revenue between $15 to $17 million and PAS revenue between $42 to $45 million. The consolidated gross profit margin is projected to be between 21.5% and 23.5%. For the full year 2024, Magnachip expects double-digit revenue growth for both MSS and PAS businesses.
Positive Outlook
- MSS revenue to be in the range of $15 to $17 million, up 87% year-over-year at the mid-point.
- PAS revenue to be in the range of $42 to $45 million, up 33.3% year-over-year at the mid-point.
- MSS revenue expected to grow double digits year-over-year.
- PAS revenue expected to grow double digits year-over-year.
- Consolidated revenue expected to be flattish.
Challenges Ahead
- Consolidated revenue to be in the range of $59.0 to $64.0 million.
- MSS revenue to be in the range of $15 to $17 million, down 2.7% sequentially at the mid-point.
- PAS revenue to be in the range of $42 to $45 million, down 8.6% sequentially at the mid-point.
- Consolidated gross profit margin to be in the range of 21.5% to 23.5%.
- Transitional Foundry Services revenue will be wound down by the end of 2024.