MagnaChip(MX)2024-10-30 20:34Financial Performance - Q3 2024 consolidated revenue was $66.5 million, at the high-end of guidance range of $61.5-66.5 million, representing a 25.0% increase quarter-over-quarter and an 8.5% increase year-over-year[2][5] - Standard product business revenue increased 25.9% sequentially and 24.0% year-over-year, reaching $64.0 million in Q3 2024[2][5] - Total revenues for Q3 2024 were $66,460 thousand, a 9.3% increase compared to $61,245 thousand in Q3 2023[13] - Net sales for the standard products business reached $64,020 thousand in Q3 2024, up 25.5% from $51,619 thousand in Q3 2023[13] - The company expects Q4 2024 consolidated revenue to be in the range of $59.0 to $64.0 million, including approximately $2.0 million from Transitional Foundry Services[7] Profitability and Margins - Q3 2024 consolidated gross profit margin was 23.3%, in-line with the mid-point of guidance range of 22.5-24.5%[2][5] - Gross profit margin for standard products was 24.4% in Q3 2024, compared to 23.1% in Q3 2023[13] - Operating loss for Q3 2024 was $(11,003) thousand, an improvement from $(12,824) thousand in Q3 2023[13] - Net loss for Q3 2024 was $(9,617) thousand, compared to $(12,997) thousand in Q3 2023[13] - The adjusted operating loss for the three months ended September 30, 2024, was $9,026 thousand, compared to an adjusted operating loss of $7,064 thousand for the same period in 2023, indicating a deterioration of 27.7%[16] - The adjusted EBITDA for the three months ended September 30, 2024, was $(4,949) thousand, compared to $(2,735) thousand for the same period in 2023, reflecting a decline of 81.5%[18] Cash and Investments - Cash at the end of Q3 2024 was $121.1 million, with an additional non-redeemable short-term financial investment of $30 million[3] - Cash and cash equivalents decreased to $121,095 thousand as of September 30, 2024, down from $158,092 thousand at December 31, 2023[14] - The net cash used in investing activities for the three months ended September 30, 2024, was $2,269 thousand, a significant decrease from $35,397 thousand for the same period in 2023[15] - The ending cash and cash equivalents as of September 30, 2024, were $121,095 thousand, down from $166,644 thousand as of September 30, 2023, representing a decline of 27.3%[15] Liabilities and Equity - Total liabilities increased to $111,782 thousand as of September 30, 2024, compared to $75,893 thousand at December 31, 2023[14] - Total stockholders' equity decreased to $299,573 thousand as of September 30, 2024, from $344,598 thousand at December 31, 2023[14] Research and Development - Research and development expenses for Q3 2024 were $14,373 thousand, up from $11,627 thousand in Q3 2023[13] Shareholder Actions - The company repurchased approximately 0.5 million shares for an aggregate purchase price of $2.5 million during Q3 2024[3] - The weighted average number of shares for basic and diluted shares was 37,468,849 for the three months ended September 30, 2024, compared to 40,145,290 for the same period in 2023, indicating a reduction of 6.6%[18] Future Expectations - MSS revenue for Q4 2024 is expected to be between $15 million and $17 million, down 2.7% sequentially but up 87% year-over-year[8] - PAS revenue for Q4 2024 is expected to be between $42 million and $45 million, down 8.6% sequentially but up 33.3% year-over-year[8] - The company anticipates full-year 2024 MSS and PAS revenue to grow in double digits year-over-year, compared to $44.4 million and $151.3 million in 2023 respectively[9] Other Financial Metrics - The company recorded $8,449 thousand in termination-related charges for the nine months ended September 30, 2023, due to a voluntary resignation program[17] - The company also recorded $802 thousand in one-time employee incentives during the same period[20] - The company reported a foreign currency loss of $5,066 thousand for the three months ended September 30, 2024, compared to a gain of $3,557 thousand for the same period in 2023[18] - Cash used in operating activities for the three months ended September 30, 2024, was $12,905 thousand, compared to $17,989 thousand for the same period in 2023, showing a decrease of 28.5%[15] - Adjusted Net Loss is defined as net loss adjusted to exclude several non-cash expenses and other items not indicative of core operating performance[19] - The company believes Adjusted Net Loss reflects the impact of its asset base and capital structure on operating performance[19] New Technology - New OLED driver technology was introduced, featuring over 20% reduction in power consumption compared to the previous generation[4]