Dec 31, 2021

MagnaChip Q4 2021 Earnings Report

MagnaChip reported a decrease in revenue due to supply shortages, but delivered higher profitability.

Key Takeaways

MagnaChip's Q4 2021 revenue was $110.3 million, a decrease of 22.8% year-over-year, primarily due to supply shortages. GAAP EPS was $1.12 and non-GAAP EPS was $0.31. Despite revenue challenges, profitability improved due to product mix and pricing.

Q4 revenue was $110.3 million, down 22.8% year-over-year due to supply shortages.

GAAP gross profit margin was 35.0%, up 810 bps year-over-year.

GAAP diluted EPS was $1.12 for the fourth quarter.

Non-GAAP diluted EPS was $0.31 for the fourth quarter.

Total Revenue
$110M
Previous year: $143M
-22.8%
EPS
$0.31
Previous year: $0.4
-22.5%
Gross Profit Margin
35%
Previous year: 26.9%
+30.1%
Adjusted EBITDA
$18.1M
Previous year: $18.6M
-2.4%
Gross Profit
$38.6M
Previous year: $38.5M
+0.4%
Cash and Equivalents
$280M
Previous year: $280M
-0.1%
Free Cash Flow
$38.9M
Previous year: -$63.8M
-160.9%
Total Assets
$584M
Previous year: $572M
+2.1%

MagnaChip

MagnaChip

MagnaChip Revenue by Segment

Forward Guidance

For Q1 2022, MagnaChip anticipates revenue between $102 million and $108 million, including $9 million from Transitional Fab 3 Foundry Services, with a gross profit margin between 34.5% and 36.5%.

Positive Outlook

  • Revenue to be in the range of $102 million to $108 million.
  • Transitional Fab 3 Foundry Services contributing about $9 million.
  • Gross profit margin to be in the range of 34.5% to 36.5%.
  • Q1 2022 is expected to be the bottom.
  • Near-term outlook is still being challenged by persisting supply constraints.

Challenges Ahead

  • Near-term outlook is still being challenged by persisting supply constraints especially for 28nm 12” wafers.
  • Actual results may vary.
  • Next quarter typically presents seasonal softness.
  • The impact of the COVID-19 pandemic.
  • Escalated trade tensions

Revenue & Expenses

Visualization of income flow from segment revenue to net income