MagnaChip Q4 2023 Earnings Report
Key Takeaways
MagnaChip reported Q4 revenue of $50.8 million and a gross profit margin of 22.7%. The company ended the quarter with $158.1 million in cash and no debt. They secured first design-win and began initial shipment in Q4 for first generation OLED DDIC for after-service market and completed the separation of its Display and Power businesses into MSS and PAS.
Q4 revenue was $50.8 million.
Q4 gross profit margin was 22.7%.
Ended Q4 with cash of $158.1 million and no debt.
Display and Power business separation was completed.
MagnaChip
MagnaChip
MagnaChip Revenue by Segment
Forward Guidance
For Q1 2024, Magnachip anticipates consolidated revenue between $46 to $51 million. For the full year 2024, the company expects double-digit revenue growth in both MSS and PAS businesses, with consolidated revenue remaining relatively flat to slightly up.
Positive Outlook
- MSS revenue to grow double digits year-over-year.
- PAS revenue to grow double digits year-over-year.
- Consolidated revenue flat-to-up-slightly year-over-year as recovery in MSS and PAS is offset by the phase-out of Transitional Foundry Services.
- MSS revenue to be in the range of $8 to $10 million.
- PAS revenue to be in the range of $35 to $38 million.
Challenges Ahead
- Consolidated revenue to be in the range of $46 to $51 million, including approximately $3 million of Transitional Foundry Services.
- Consolidated gross profit margin between 17% to 20% due to idle capacity expected from the phase-out of Transitional Foundry Services.
- Consolidated gross profit margin to be in the range of 17% to 20%.
- PAS gross profit margin to be in the range of 15% to 18% due primarily to the expected decline in Transitional Foundry Services revenue.
- Transitional Foundry Services are being phased out
Revenue & Expenses
Visualization of income flow from segment revenue to net income