MagnaChip(MX) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue was $63 million, representing a 24% increase year-over-year and a 5.1% decrease sequentially [3]. - For Q1 2025, the company expects consolidated revenue from continuing operations to be in the range of$ 42 to $47 million, down 8.9% sequentially but up 11.5% year-over-year [11]. - Total revenues for Q4 2024 were$ 63,039,000, a decrease of 5.5% from $66,460,000 in Q3 2024 and an increase of 24.0% from$ 50,822,000 in Q4 2023 [16]. - The company reported a net loss of $16.3 million in Q4 2024, compared to a net loss of$ 6 million in Q4 2023 [6]. - For the year ended December 31, 2024, the company reported a net loss of $54,308 thousand, compared to a net loss of$ 36,622 thousand for the year ended December 31, 2023, representing an increase in loss of 48.2% [20]. Profitability Metrics - Gross profit margin for Q4 2024 was 25.2%, up 2.5 percentage points from the previous year and above the guidance range [5]. - Adjusted EBITDA for Q4 2024 was a loss of $2.6 million, an improvement from a loss of$ 4.9 million in Q3 2024 [6]. - Gross profit for Q4 2024 was $15,885,000, representing a gross profit margin of 25.2%, compared to 23.3% in Q3 2024 and 22.7% in Q4 2023 [16]. - The company’s Adjusted EBITDA for the year ended December 31, 2024, was$ (23,594) thousand, compared to $(24,174) thousand for the year ended December 31, 2023, indicating a slight improvement [26]. Business Segments - Standard Products business revenue increased by 13% year-over-year, aligning with the company's guidance for double-digit growth [3]. - Power IC revenue increased by more than 50% year-over-year, indicating strong demand in that segment [5]. - The company is transitioning to become a pure-play Power company, with the Display business classified as discontinued operations starting Q1 2025 [3]. Expenses and Losses - Operating loss for Q4 2024 was$ (15,745,000), compared to $(11,003,000) in Q3 2024 and$ (15,935,000) in Q4 2023 [16]. - Research and development expenses for Q4 2024 were $12,967,000, down from$ 14,373,000 in Q3 2024 and $15,383,000 in Q4 2023 [16]. - The company recorded$ 4,637 thousand in impairment losses primarily related to tangible assets associated with its Display business for the year ended December 31, 2024 [23]. - The company incurred $8,449 thousand in termination-related charges during the first quarter of 2023 due to a voluntary resignation program [24]. - The company recorded$ 2,017 thousand of one-time cumulative financial impact related to certain employee benefits for the year ended December 31, 2024 [28]. Cash Flow and Assets - Cash and cash equivalents decreased to $138,610,000 in Q4 2024 from$ 158,092,000 in Q4 2023 [18]. - Total assets decreased to $379,316,000 in Q4 2024 from$ 420,491,000 in Q4 2023 [18]. - Total liabilities increased to $102,519,000 in Q4 2024 from$ 75,893,000 in Q4 2023 [18]. - Net cash provided by operating activities for the three months ended December 31, 2024, was $11,856 thousand, a significant improvement from a net cash used of$ 6,133 thousand for the year ended December 31, 2023 [20]. - Cash and cash equivalents at the end of the period on December 31, 2024, were $138,610 thousand, down from$ 158,092 thousand at the end of the previous year [20]. Foreign Currency Impact - The company reported a foreign currency loss of $(13,407,000) in Q4 2024, compared to a gain of$ 5,066,000 in Q3 2024 [16]. - The company experienced a foreign currency loss of $16,899 thousand for the year ended December 31, 2024, compared to a gain of$ 465 thousand for the year ended December 31, 2023 [26]. Equity and Stockholder Information - Magnachip's total stockholders' equity decreased to $276,797,000 in Q4 2024 from$ 344,598,000 in Q4 2023 [18].