MagnaChip(MX) - 2025 Q1 - Quarterly Results

First Quarter 2025 Results Summary Management Commentary 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] - 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] - 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] - Q1 2025 gross margin from continuing operations increased to 20.9%, up from 17.6% in Q1 2024 and exceeding guidance[5] Q1 2025 Highlights 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] - The Power IC (PIC) business revenue increased by 44.1% year-over-year, driven by strength in TV-LED and OLED power ICs[6] - 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] - Repurchased approximately 0.3 million shares for $1.1 million during the quarter, ending with a cash balance of $132.7 million[6] Q1 2025 Financial Performance 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 Q2 2025 Guidance 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 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 Consolidated Statements of Operations 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 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 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 Reconciliation of Operating Loss to Adjusted Operating Loss 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) 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) |