MagnaChip(US:MX)2025-11-03 21:30Financial Performance - Consolidated revenue from continuing operations for Q3 2025 was $45.9 million, down 3.5% quarter-over-quarter and down 17.1% year-over-year[6]. - Operating loss for Q3 2025 was $11.5 million, compared to a loss of $6.6 million in Q2 2025 and a loss of $4.5 million in Q3 2024[6]. - Total revenues for the three months ended September 30, 2025, were $45,946 thousand, a decrease of 3.5% from $47,622 thousand in the previous quarter and a decrease of 17.5% from $55,434 thousand in the same quarter of 2024[15]. - Gross profit for the three months ended September 30, 2025, was $8,541 thousand, representing a gross profit margin of 18.6% compared to 20.4% in the previous quarter and 22.0% in the same quarter of 2024[15]. - Net loss for the three months ended September 30, 2025, was $(13,090) thousand, compared to a net income of $323 thousand in the previous quarter and a net loss of $(9,617) thousand in the same quarter of 2024[15]. - The company reported a basic loss per share of $(0.36) for the three months ended September 30, 2025, compared to a gain of $0.01 in the previous quarter and a loss of $(0.26) in the same quarter of 2024[15]. - The adjusted operating loss for the same period was $7,421 thousand, an increase from $4,776 thousand in the prior quarter[22]. - For the nine months ended September 30, 2025, the adjusted operating loss was $16,607 thousand, slightly higher than $15,628 thousand for the same period in 2024[22]. Revenue Expectations - The company expects Q4 2025 revenue to be in the range of $38.5 to $42.5 million, down 11.9% sequentially and down 17.1% year-over-year at the mid-point[11]. - Consolidated gross profit margin for Q4 2025 is expected to be between 8% to 10%, impacted by a one-time $2.5 million incentive program[11]. Product Development - Product revenue from the Communications segment grew 34% sequentially and 95% year-over-year[5]. - The company launched 30 new-generation products in the first three quarters of 2025, with plans to launch at least 20 more in Q4 2025, totaling at least 50 for the year[4]. Cost Management - The company executed multiple operating expense cost reduction programs expected to generate approximately $2.5 million in annualized savings[5]. - Capital expenditure investments for the Gumi fab upgrade are planned to be reduced by more than 50% over the next two years, compared to the previously expected range of $65 to $70 million[5]. Cash and Assets - Cash and cash equivalents decreased to $108,005 thousand as of September 30, 2025, from $138,610 thousand at the end of 2024[17]. - Total current assets decreased to $197,363 thousand as of September 30, 2025, from $219,229 thousand at the end of 2024[17]. - Total liabilities increased to $104,257 thousand as of September 30, 2025, compared to $102,519 thousand at the end of 2024[17]. Research and Development - Research and development expenses for the three months ended September 30, 2025, were $7,773 thousand, an increase from $6,488 thousand in the previous quarter and $6,472 thousand in the same quarter of 2024[15]. Foreign Currency Impact - The company experienced a foreign currency loss of $(4,280) thousand for the three months ended September 30, 2025, compared to a gain of $10,797 thousand in the previous quarter[15]. Termination Charges - The company recorded $2,599 thousand in termination-related charges during the third quarter of 2025 due to a voluntary resignation program[30]. - The company incurred $4,840 thousand in early termination and other charges for the nine months ended September 30, 2025[27]. - The company recorded $1,395 thousand in expenses related to certain executive separation benefits during the third quarter of 2025[30].