[First Quarter 2025 Results Summary](index=1&type=section&id=First%20Quarter%202025%20Results%20Summary) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights consistent year-over-year growth and a strategic plan to achieve $300 million annual revenue and 30% gross margin - The company is implementing a "3-3-3 strategy" targeting **$300 million in annual revenue**, a **30% gross margin**, and a three-year execution timeline to drive structural improvements and profitability[5](index=5&type=chunk) - In Q1, **27 new-generation PAS products** were released, with plans to launch over **40 in 2025** and approximately **55 more in 2026**, targeting Industrial, Automotive, Consumer, and Communication markets[5](index=5&type=chunk) - The shutdown of the Display business is projected to reduce annualized operating expenses by **30% to 35%**, supporting a shift towards a more efficient and profitable business model[5](index=5&type=chunk) - Q1 2025 gross margin from continuing operations increased to **20.9%**, up from **17.6% in Q1 2024** and exceeding guidance[5](index=5&type=chunk) [Q1 2025 Highlights](index=1&type=section&id=Q1%202025%20Highlights) Q1 2025 continuing operations revenue reached **$44.7 million**, up **12.1% year-over-year**, driven by strong PAS and Power IC growth and 50 design-wins Q1 2025 Performance vs. Guidance and Prior Year | Metric | Q1 2025 Actual | Q1 2025 Guidance | YoY Change (Continuing Ops) | | :--- | :--- | :--- | :--- | | **Revenue (Continuing Ops)** | $44.7M | $42.0M - $47.0M | +12.1% | | **Gross Margin (Continuing Ops)** | 20.9% | 18.5% - 20.5% | +3.3 ppts | - The Power Analog Solutions (PAS) revenue from the Communication market grew **64% year-over-year**[6](index=6&type=chunk) - The Power IC (PIC) business revenue increased by **44.1% year-over-year**, driven by strength in TV-LED and OLED power ICs[6](index=6&type=chunk) - Secured **50 design-wins** in Q1, a **13.6% increase** from 44 wins in Q1 2024, including new generation Super Junction and low-voltage MOSFET products[6](index=6&type=chunk) - Repurchased approximately **0.3 million shares for $1.1 million** during the quarter, ending with a cash balance of **$132.7 million**[6](index=6&type=chunk) [Q1 2025 Financial Performance](index=2&type=section&id=Q1%202025%20Financial%20Performance) Q1 2025 core Power solutions revenue reached **$44.7 million**, up **12.1% year-over-year**, resulting in a GAAP operating loss of **$6.3 million** Q1 2025 Financial Results (GAAP) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Consolidated Revenues** | $44.7M | $51.2M | $43.4M | | *Power solutions business* | *$44.7M* | *$48.9M* | *$39.9M* | | **Consolidated Gross Profit Margin** | 20.9% | 21.7% | 14.6% | | *Power solutions business* | *20.9%* | *23.2%* | *17.6%* | | **Operating Loss** | ($6.3M) | ($7.8M) | ($9.4M) | | **Loss from continuing operations** | ($5.1M) | ($8.7M) | ($14.3M) | | **Diluted Loss per Share (Continuing)** | ($0.14) | ($0.24) | ($0.37) | Q1 2025 Financial Results (Non-GAAP) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Adjusted Operating Loss** | ($5.4M) | ($4.5M) | ($8.6M) | | **Adjusted EBITDA** | ($2.1M) | ($0.5M) | ($4.8M) | | **Adjusted Loss (Continuing Ops)** | ($3.8M) | $4.6M (Income) | ($9.8M) | | **Adjusted EPS (Diluted)** | ($0.10) | $0.12 | ($0.26) | [Financial Guidance](index=2&type=section&id=Financial%20Guidance) [Q2 2025 Guidance](index=2&type=section&id=Q2%202025%20Guidance) Magnachip projects Q2 2025 continuing operations revenue between **$45 million and $49 million**, with a consolidated gross profit margin of **19.5% to 21.5%** Q2 2025 Guidance | Metric | Q2 2025 Guidance Range | Mid-point vs. Q1 2025 ($44.7M) | Mid-point vs. Q2 2024 ($44.1M) | | :--- | :--- | :--- | :--- | | **Revenue (Continuing Ops)** | $45M - $49M | +5.2% | +6.6% | | **Gross Profit Margin** | 19.5% - 21.5% | N/A | N/A | [Full-Year 2025 Guidance](index=3&type=section&id=Full-Year%202025%20Guidance) The company reiterates full-year 2025 guidance for mid-to-high single-digit revenue growth and a gross profit margin of **19.5% to 21.5%** Full-Year 2025 Guidance | Metric | Full-Year 2025 Guidance | | :--- | :--- | | **Revenue Growth (YoY)** | Mid-to-high single digit % (vs. $185.8M in 2024) | | **Gross Profit Margin** | 19.5% - 21.5% (vs. 21.5% in 2024) | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues were **$44.7 million** from Power solutions, resulting in a **$6.3 million** operating loss and a total net loss of **$8.9 million** Q1 2025 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total revenues** | $44,722 | $43,438 | | **Gross profit** | $9,362 | $6,359 | | **Operating loss** | $(6,288) | $(9,391) | | **Loss from continuing operations** | $(5,082) | $(14,284) | | **Loss from discontinued operations, net of tax** | $(3,796) | $(1,133) | | **Net loss** | $(8,878) | $(15,417) | | **Diluted loss per Share (Total)** | $(0.24) | $(0.40) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$373.9 million**, with **$132.7 million** in cash and **$104.7 million** in total liabilities Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $132,654 | $138,610 | | **Total current assets** | $215,474 | $219,229 | | **Total assets** | $373,867 | $379,316 | | **Total current liabilities** | $47,787 | $46,268 | | **Total liabilities** | $104,666 | $102,519 | | **Total stockholders' equity** | $269,201 | $276,797 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash outflow was **$6.0 million**, with **$4.7 million** used in operating activities, ending the period with **$132.7 million** in cash Cash Flow Summary for Three Months Ended March 31 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(4,669) | $(3,972) | | **Net cash used in investing activities** | $(389) | $(1,468) | | **Net cash provided by (used in) financing activities** | $(1,455) | $25,244 | | **Net (decrease) increase in cash** | $(5,956) | $13,510 | | **Cash at end of period** | $132,654 | $171,602 | [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Reconciliation of Operating Loss to Adjusted Operating Loss](index=8&type=section&id=Reconciliation%20of%20Operating%20Loss%20to%20Adjusted%20Operating%20Loss) Q1 2025 GAAP operating loss of **$6.3 million** was reconciled to a non-GAAP Adjusted Operating Loss of **$5.4 million**, primarily by excluding equity-based compensation Reconciliation of Operating Loss to Adjusted Operating Loss (in thousands) | Line Item | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Operating loss– continuing operations (GAAP)** | $(6,288) | $(7,837) | $(9,391) | | Equity-based compensation expense | $868 | $1,780 | $828 | | Other charges | $— | $1,589 | $— | | **Adjusted Operating Loss– continuing operations (Non-GAAP)** | $(5,420) | $(4,468) | $(8,563) | [Reconciliation to Adjusted EBITDA and Adjusted Income (Loss)](index=9&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA%20and%20Adjusted%20Income%20(Loss)) Q1 2025 GAAP loss from continuing operations of **$5.1 million** was adjusted to a non-GAAP Adjusted EBITDA of **-$2.1 million** and an Adjusted Loss of **$3.8 million** Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Loss from continuing operations (GAAP)** | $(5,082) | $(8,732) | $(14,284) | | Adjustments (Interest, Tax, D&A, etc.) | $1,765 | $(8,349) | $3,690 | | **EBITDA – continuing operations** | $(3,317) | $(17,081) | $(10,594) | | Further Adjustments (Stock Comp, FX, etc.) | $1,244 | $16,615 | $5,791 | | **Adjusted EBITDA – continuing operations (Non-GAAP)** | $(2,073) | $(466) | $(4,803) | Reconciliation to Adjusted Income (Loss) (in thousands) | Line Item | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Loss from continuing operations (GAAP)** | $(5,082) | $(8,732) | $(14,284) | | Adjustments (Stock Comp, FX, Tax Effect, etc.) | $1,267 | $13,366 | $4,448 | | **Adjusted Income (Loss) – continuing operations (Non-GAAP)** | $(3,815) | $4,634 | $(9,836) |

Core Points - Methanex Corporation held its Annual General Meeting on May 1, 2025, in Vancouver, British Columbia, with a total of 55,396,544 common shares voted, representing 82.2% of all outstanding shares [1][2] Voting Results - All items of business were approved by shareholders, including the election of all director nominees with high approval rates, such as Doug Arnell receiving 99.75% of votes for [2] - The re-appointment of KPMG LLP as auditor was approved with 73.04% of votes for, while 26.96% of votes were withheld [3] - An advisory vote on executive compensation was accepted with 80.76% of votes for, indicating strong shareholder support for the company's compensation approach [3] Company Overview - Methanex is the world's largest producer and supplier of methanol, publicly traded on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [3]

Group 1 - Methanex Corporation has successfully restarted its 1.8 million tonne methanol plant, Geismar 3 (G3), in Geismar, Louisiana, after an unplanned outage in late February [1] - Methanex is the world's largest supplier of methanol and is publicly traded on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [2] - The company is based in Vancouver, British Columbia, and provides information about its operations on its official website [2]

VANCOUVER, British Columbia, April 30, 2025 (GLOBE NEWSWIRE) -- Except where otherwise noted, all currency amounts are stated in United States dollars. Financial and Production Highlights Net income attributable to Methanex shareholders of $111 million and Adjusted EBITDA of $248 million in the first quarter. Our average realized price in the first quarter was $404 per tonne compared to $370 per tonne in the fourth quarter of 2024.Production in the first quarter was 1,619,000 tonnes compared to 1,868,000 to ...

Industry Overview - The analog/mixed signal semiconductor market is expected to continue growing in 2025, following a strong performance in 2024, despite macro and geopolitical uncertainties [1] - The World Semiconductor Trade Statistics (WSTS) projects double-digit growth in semiconductors this year, with a 12.3% increase in integrated circuit (IC) growth, driven by various segments [2] - The semiconductor industry is cyclical, with players often serving multiple markets to offset individual seasonality [6] Growth Drivers - The automotive market is experiencing growth due to electrification and increased electronics usage in vehicles, although uncertainty remains due to China's dominant role [4] - AI is a significant growth driver, with AI chips expected to grow 33% this year, and 47% of total AI chip revenue coming from the PC market [11] - The industrial end market faces challenges due to macroeconomic factors, but long-term growth prospects remain strong due to new technology adoption [3][12] Company Insights - **Magnachip Semiconductor Corp. (MX)** focuses on power IC and discrete businesses, with plans to launch next-gen power products that will enhance revenue opportunities in automotive and industrial sectors [29][30] - The company aims to achieve a $300 million annual revenue run-rate with a 30% gross margin in three years, with expectations of improved financial performance in 2026 [32] - **Semtech Corp. (SMTC)** is positioned in attractive markets with a focus on portfolio optimization, R&D investment, and margin expansion, expecting revenue and earnings growth in the coming years [37][39] Market Performance - The semiconductor industry has lost 24.7% of its value over the past year, underperforming compared to the broader sector and S&P 500 [22] - The industry currently trades at a forward P/E ratio of 21.83X, which is at its 52-week low but still a premium compared to the S&P 500 [25] Future Outlook - The semiconductor market is projected to see strong growth in 2025, with Gartner estimating a revenue growth of 12.6%, driven by high bandwidth memory [7] - Despite current challenges, the industry's positioning in the top 50% of Zacks-ranked industries indicates strong near-term prospects [18][19]

Core Viewpoint - Magnachip Semiconductor Corp. has unanimously approved a plan to shut down its display business by the end of Q2 2025, focusing instead on becoming a pure power discrete and power IC company to maximize shareholder value [1][3]. Group 1: Business Strategy - The decision to close the display business follows months of discussions with potential buyers, which ultimately did not result in a transaction that aligned with the company's best interests [1][2]. - The closure will involve liquidating Magnachip Mixed-Signal Ltd (MMS), the wholly-owned subsidiary responsible for the display operations, while retaining the power IC business [2]. - The company aims to achieve breakeven adjusted EBITDA for its ongoing operations by the end of this year, with a long-term goal of reaching $300 million in annual revenue and a 30% gross margin by 2026 [3]. Group 2: Financial Projections - Magnachip expects revenue from its power discrete and power IC business to reach $185 million in 2024, representing a 13% increase from 2023, with mid-to-high single-digit growth anticipated for 2025 [3]. - The actions taken during the liquidation process are projected to reduce annual operating expenses (excluding stock-based compensation) by 30% to 35% compared to 2024 [3].

Magnachip (MX) has been on a downward spiral lately with significant selling pressure. After declining 17.8% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ov ...

Financial Performance - For the year ended December 31, 2024, the company generated total revenues of $231.7 million, with a net loss of $54.4 million and an operating loss of $53.0 million[22]. - For the year ended December 31, 2024, the company recorded revenues of $2.1 million from U.S. customers and $219.0 million from foreign countries, with 43.7% from Greater China and 39.3% from Korea[65]. - The company recorded revenues of $192.9 million from foreign customers in 2023, with 41.4% from Greater China and 34.6% from Korea[65]. Business Segments - The Display IC and Power IC businesses represented 23.4% and 19.3% of total revenues for the fiscal years ended December 31, 2024 and 2023, respectively[32]. - The Power discrete business accounted for 72.0% and 65.8% of total revenues for the fiscal years ended December 31, 2024 and 2023, respectively[33]. - The company plans to exit the Display business by the end of the second quarter of 2025, exploring strategic options such as sale, merger, or joint venture[24]. Strategic Focus - The company aims to become a pure-play Power company to drive revenue growth and improve profitability[23]. - The company aims to strengthen its position in the semiconductor industry by focusing on a broad portfolio of analog and mixed-signal semiconductor products targeting high-growth markets[41]. - The company plans to expand its global customer base, particularly in high-growth regions such as China, Hong Kong, and Taiwan, while introducing new products to address a broader customer base[41]. Product Development and Innovation - Approximately 370 distinct products were sold in the year ended December 31, 2024, with a substantial portion of revenues derived from a concentrated number of customers[20]. - The company has a portfolio of approximately 1,000 registered patents and pending applications, enhancing its competitive position in the semiconductor market[18]. - The company has approximately 836 registered patents and 166 pending applications as of December 31, 2024, with 304 registered patents being novel[66]. - The company has developed power management solutions that enhance system stability and improve energy efficiency, resulting in cost savings and environmental benefits for customers[41]. - The company’s power management solutions include MOSFETs and IGBTs for various applications, enhancing system stability and energy efficiency[59]. - The company’s IGBTs range from 650V to 1200V and are used in automotive and high-power industrial applications[61]. Customer and Market Dynamics - The company’s ten largest customers accounted for 74.1% of net sales from standard products in 2024, up from 69.2% in 2023[65]. - The company derived 32% of net sales from its standard products business through direct sales in 2024, down from 34% in 2023[64]. - The sales and marketing strategy focuses on growing relationships with leading consumer electronics OEMs while expanding into industrial and automotive markets[62]. Operational Efficiency - The company executed an intercompany business transfer agreement to consolidate its Power IC and Power discrete businesses under a single entity, effective January 1, 2025[28]. - The company focuses on maintaining low capital expenditures while enhancing manufacturing capabilities through strategic investments in new equipment[41]. - The company emphasizes execution excellence through management initiatives aimed at improving product development and customer service[41]. Workforce and Management - The company employs 881 individuals, with 220 in research and development, including 87 with advanced degrees[73]. - The CEO has been in position since May 2015 and has extensive experience in the semiconductor industry, including previous roles at major firms[92]. - The Chief Financial Officer joined the company in January 2022 and has a background in accounting and advisory services at Deloitte[95]. - The company has long- and mid-term retention programs to attract and retain high-performing talent[83]. - The company emphasizes employee wellness with benefits such as annual medical checkups and educational assistance programs[84]. Compliance and Risk Management - The company has implemented an Occupational Health and Safety Management System and an Environmental Management System, certified to ISO 45001 and ISO 14001 standards[85]. - The company is subject to the Korean Emissions Trading Scheme (K-ETS) and must meet its allocated emissions target, which could impact operational costs[87]. - The company has faced challenges with sourcing specialized raw materials due to regulations on "conflict minerals," which could affect availability and pricing[90]. - The company is actively qualifying additional suppliers for raw materials to mitigate supply chain risks[90]. - The company has appointed a Chief Safety Officer to ensure compliance with the Serious Accident Punishment Act (SAPA) effective January 2022[86]. - The company has a dedicated Environmental Health & Safety team to ensure compliance with local and international regulations[86].

Financial Data and Key Metrics Changes - Q4 revenue was $63 million, up 24% year-over-year and down 5.1% sequentially, exceeding the midpoint of guidance [20][34] - Consolidated Q4 gross profit margin was 25.2%, up 2.5 percentage points year-over-year and up 1.9 percentage points sequentially, exceeding guidance [21][36] - Net loss in Q4 was $16.3 million compared to a net loss of $9.6 million in Q3 and a net loss of $6 million in Q4 last year [40][43] Business Line Data and Key Metrics Changes - Revenue from the standard products business was $60.7 million, up 47.5% year-over-year and down 5.1% sequentially [22] - PAS revenue was $43.5 million, up 33.2% year-over-year and down 8.7% quarter-over-quarter, primarily driven by high-end mobility and battery management systems [24][35] - MSS revenue was $17.3 million, up 102% year-over-year and up 5.1% sequentially, primarily due to strength in automotive [32][35] Market Data and Key Metrics Changes - The communication market represented 15% of PAS revenue in 2024 and increased more than 50% year-over-year, driven by design wins in AI-enabled smartphones [28] - Automotive market revenue was less than 5% of PAS revenue in 2024, but outperformed the broader automotive market, declining less than 5% [29] - The consumer market accounted for 35% of PAS revenue in 2024, achieving high single-digit growth driven by trends in home appliances [27] Company Strategy and Development Direction - The company announced a new strategy to become a pure play power company, focusing on Power discrete and Power IC businesses [8][9] - The display business is being explored for strategic options, with a goal to classify it as discontinued operations starting Q1 2025 [11][48] - The three-three-three strategy aims for a $300 million annual revenue run rate with a 30% gross margin target within three years [13][57] Management Comments on Operating Environment and Future Outlook - Management emphasized the importance of achieving profitability as the highest priority for shareholders [10][56] - The company expects to achieve quarterly adjusted EBITDA breakeven by the end of Q4 2025, followed by positive adjusted operating income in 2026 [12][60] - The market opportunity in power semiconductors is viewed as significantly larger than the OLED DDIC market, with a proven track record in power [56] Other Important Information - The company plans to invest $65 million to $70 million over the next three years to upgrade production equipment at the Gumi facility [18][49] - Q4 CapEx was $7.4 million, with total CapEx for 2024 at $11.6 million, primarily for PAS segments and Gumi fab [47][50] - The company repurchased approximately 0.7 million shares for an aggregate purchase price of $2.9 million under its stock buyback program [44] Q&A Session Summary Question: What end markets will drive growth in 2025? - Management indicated that growth will be evenly distributed across consumer, communication, and computing, with new products aiding penetration into AI and industrial markets [65] Question: What are the drivers of gross margin improvement? - Management noted that the gross margin outlook for 2025 is expected to be lower due to the wind down of traditional foundry services and the timing of new product launches [66][68] Question: How will cash be utilized moving forward? - The company plans to invest in upgrading the Gumi facility and will manage cash balances carefully, including potential funding through a credit line [70][72] Question: What is the impact of the Gumi fab headwind on gross margins? - Management explained that the underutilization from the phase-out of transitional foundry services will impact gross margins in 2025, particularly in the first half [76][80] Question: How will the company approach high-value markets? - The strategy involves leveraging new generation products with better performance and lower costs to penetrate high-value applications in AI and industrial markets [86][87] Question: What are the strategic alternatives for the display business? - Management is exploring all options for the display business, including potential sales or partnerships, while ensuring customer satisfaction during the transition [90][92]

Magnachip Semiconductor (MX) Q4 2024 Earnings Call March 12, 2025 08:30 AM ET Company Participants Steven Pelayo - Managing DirectorYoung-Joon Kim - CEO, Board of Director & Member of the Risk CommitteeShin Young Park - CFO & Chief Accounting OfficerNick Doyle - Vice President Conference Call Participants Suji Desilva - MD & Senior Research AnalystMartin Yang - Senior Analyst Operator Good day and thank you for standing by. Welcome to the MagnaChip Semiconductor Corporation Fourth Quarter twenty twenty four ...