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Dec 31, 2024
MagnaChip Q4 2024 Earnings Report
Magnachip reported revenue growth and improved gross margins but continued to face operating losses.
Key Takeaways
Magnachip's Q4 2024 revenue reached $63 million, up 24% year-over-year, with a consolidated gross profit margin of 25.2%. The Standard Products business accounted for $60.7 million of revenue, despite a sequential decline. The company reported an operating loss of $15.7 million and a net loss of $16.3 million. Adjusted EBITDA improved but remained negative at $2.6 million. Magnachip announced its transition to a pure-play power company and is exploring strategic options for its display business.
Q4 revenue was $63 million, up 24% year-over-year.
Gross profit margin improved to 25.2%, up 2.5 percentage points.
Operating loss was $15.7 million, with a net loss of $16.3 million.
Magnachip announced plans to become a pure-play power company.
Forward Guidance
Magnachip expects Q1 2025 revenue between $42M and $47M, reflecting seasonality and the transition away from its display business. The company targets positive adjusted EBITDA by Q4 2025 and aims for $300M in annual revenue with a 30% gross profit margin within three years.
Positive Outlook
- Q1 revenue expected to grow 11.5% year-over-year at the mid-point.
- Gross profit margin guidance between 18.5% and 20.5%.
- Company targets adjusted EBITDA breakeven by Q4 2025.
- Power IC revenue increased over 50% year-over-year in 2024.
- Shift to a pure-play power company with a focused strategy.
Challenges Ahead
- Seasonal decline expected to impact Q1 revenue.
- Operating losses continue to be a challenge.
- Impact of winding down foundry services on fab utilization.
- Competitive pressures in semiconductor industry remain high.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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