MagnaChip(US:MX)2025-07-31 20:21Revenue Performance - Consolidated revenue from continuing operations increased 8.1% year-over-year to $47.6 million, exceeding the guidance range of $45.0 to $49.0 million[5] - Power Analog Solutions (PAS) revenue from communication applications grew 46.7% year-over-year, representing 20% of PAS revenue, while computing applications revenue increased 45.1% year-over-year, accounting for 8% of PAS revenue[5] - Total revenues for Q2 2025 reached $47,622 thousand, an increase of 6.4% compared to $44,722 thousand in Q1 2025 and a 2.5% increase from $46,400 thousand in Q2 2024[15] - For Q3 2025, consolidated revenue is expected to be in the range of $44 to $48 million, down 3.5% sequentially and down 13.2% year-over-year at the mid-point[7] Profitability Metrics - Consolidated gross profit margin from continuing operations was 20.4%, within the guidance range of 19.5% to 21.5%[5] - Consolidated gross profit margin for Q3 2025 is projected to be between 18.5% to 20.5%, compared to 20.4% in Q2 2025[7] - Gross profit for Q2 2025 was $9,712 thousand, representing a gross profit margin of 20.4%, slightly down from 20.9% in Q1 2025 and up from 18.0% in Q2 2024[15] - The company reported an operating loss of $7.4 million in Q2 2025, compared to a loss of $5.7 million in Q2 2024[6] - Adjusted operating loss from continuing operations for Q2 2025 was $(5,616) thousand, compared to $(5,420) thousand in Q1 2025[21] Earnings and Losses - Basic earnings per share improved to $0.24 in Q2 2025, up from a loss of $0.06 in Q2 2024[6] - Net income for Q2 2025 was $323 thousand, a significant improvement from a net loss of $(8,878) thousand in Q1 2025 and $(28,414) thousand in Q2 2024[19] - The company reported a foreign currency gain of $10,810 thousand in Q2 2025, contrasting with a loss of $(405) thousand in Q1 2025[15] - Adjusted Income (Loss) from continuing operations for the three months ended June 30, 2025, was $(2,708) thousand, compared to $(3,815) thousand in the previous quarter[24] - The company’s Adjusted Income (Loss) from continuing operations for the six months ended June 30, 2025, was $(6,523) thousand, compared to $(7,276) thousand in the same period of the previous year[24] Expenses and Costs - Research and development expenses increased to $6,983 thousand in Q2 2025, up from $5,936 thousand in Q1 2025 and $5,774 thousand in Q2 2024[15] - Depreciation and amortization expenses for the three months ended June 30, 2025, were $3,387 thousand, slightly down from $3,262 thousand in the previous quarter[24] - Interest income for the three months ended June 30, 2025, was $(1,324) thousand, compared to $(1,545) thousand in the previous quarter[24] Cash and Assets - Cash and cash equivalents decreased to $113,326 thousand as of June 30, 2025, down from $138,610 thousand at the end of 2024[17] - Total current assets decreased to $199,454 thousand as of June 30, 2025, compared to $219,229 thousand at December 31, 2024[17] - Total liabilities decreased to $100,369 thousand as of June 30, 2025, down from $102,519 thousand at the end of 2024[17] Future Outlook - The company anticipates a softer second half of 2025, forecasting revenue from continuing operations to be flattish compared to previous expectations of mid-to-high single-digit growth[4] - The company remains committed to its 3-3-3 strategy of achieving $300 million in revenue with a 30% gross margin, although timing is dependent on macroeconomic factors[4] - The company launched 28 new-generation PAS products in the first half of 2025, contributing to a total of 71 design-wins in Q2, up 61% from the previous year[5]