Financial Data and Key Metrics Changes - Consolidated revenue from continuing operations for Q2 2025 was $47.6 million, up 8.1% year over year and above the midpoint of guidance [6][18] - Gross profit margin from continuing operations was 20.4%, down 2.1 percentage points from a year ago and slightly down from Q1 2025 [6][19] - Operating loss for Q2 was $7.4 million, compared to an operating loss of $5.7 million in Q2 2024 [21] - Q2 GAAP diluted earnings per share was $0.23, compared to a diluted loss per share of $0.06 in Q2 2024 [22] Business Line Data and Key Metrics Changes - Power Analog Solutions (PAS) revenue was $42.3 million, up 10.7% year over year and 6% quarter over quarter, representing nearly 90% of total revenue [9][18] - Revenue from Power IC was $5.4 million, up 11.1% year over year and 10.2% sequentially [19] - Design wins in Q2 totaled 71, up 61% from 44 design wins in Q2 2024, with 32% of wins for new products [10][11] Market Data and Key Metrics Changes - Communications segment revenue grew nearly 47% year over year, driven by flagship and mass market smartphone models [15] - Automotive segment revenue declined 25% year over year due to slower demand from EV makers [16] - The company expects automotive markets to represent over 10% of revenue by 2028, up from less than 5% in 2024 [11] Company Strategy and Development Direction - The company is executing a strategic pivot to become a pure play power semiconductor company [6] - The goal is to achieve $300 million in revenue and 30% gross margin in three years, with a focus on new generation products [7] - The company is targeting more than 50 new generation products by 2025 to drive higher revenue and margins [8] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macro challenges and pricing pressure in China affecting older generation products [6][17] - The company anticipates a softer second half of the year due to tariff uncertainties and competitive pricing pressures [33] - Management remains committed to maximizing shareholder value and prioritizing a return to profitability [33] Other Important Information - The company has begun to provide limited support for remaining customer obligations related to the discontinued display business, expecting cash inflow of approximately $20 million over two years [25] - The company is targeting annual OpEx savings of $2 million to $3 million through headcount reduction initiatives [29] Q&A Session Summary Question: Impact of pull-ins and tariff on revenue - Management indicated that the pull-ins from customers have already been accounted for in Q2, particularly in the TV-related area [36] Question: Gross margin decline reasons - The decline in gross margin is attributed to pricing pressure and lower utilization rates due to older generation products [38] Question: Strength in communications applications - Growth in communications is driven by design wins in mid-range to flagship AI smartphones and new AI portable phones [42] Question: OpEx reduction and EBITDA breakeven target - Management targets to achieve close to adjusted EBITDA breakeven by Q4 2025, with expected OpEx reduction of $2 million to $3 million annually [46]

Q2 2025 Financial Performance - Revenue from continuing operations was $47.6 million, up 6.5% quarter-over-quarter and up 8.1% year-over-year[5] - Gross profit margin from continuing operations was 20.4%, down 0.5 percentage points quarter-over-quarter and down 2.1 percentage points year-over-year[5] - GAAP diluted earnings per share was $0.23, compared to a loss of $0.14 in Q1 2025 and a loss of $0.06 in Q2 2024[5] - Non-GAAP diluted earnings per share was $0.07, compared to a loss of $0.10 in Q1 2025 and a loss of $0.08 in Q2 2024[5] Business Segment Performance - Power Analog Solutions (PAS) revenue was $42.3 million, representing approximately 90% of Q2 consolidated revenue, up 6.0% quarter-over-quarter and up 7.7% year-over-year[6] - Power IC (PIC) revenue was $5.4 million, representing 11% of Q2 consolidated revenue, up 10.2% quarter-over-quarter and up 11.1% year-over-year[6] Q3 2025 Outlook - Revenue from continuing operations is expected to be in the range of $44 million to $48 million, down 3.5% sequentially and down 13.2% year-over-year at the mid-point[9] - Gross profit margin from continuing operations is expected to be in the range of 18.5% to 20.5%[9] Full Year 2025 Outlook - Consolidated revenue from continuing operations is now expected to be flattish compared to the previous forecast of mid-to-high single digit growth year-over-year, compared with equivalent revenue of $185.8 million in 2024[9] - Consolidated gross profit margin from continuing operations is expected to be between 19% to 20%, compared to the previous forecast of 19.5% to 21.5%, and compared to 21.5% in 2024[9]

Magnachip Semiconductor (NYSE: MX) Q1 2025 Earnings Materials May 12, 2025 1 Forward-Looking Statements Information in this presentation regarding Magnachip's forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future oper ...