Magnachip Semiconductor Corporation (MX) Bundle
A Brief History of Magnachip Semiconductor Corporation
Founded in 2004, Magnachip Semiconductor Corporation (NYSE: MX) has established itself as a prominent player in the semiconductor industry, focusing on analog and mixed-signal semiconductor solutions. The company specializes in providing products for various applications, including consumer electronics, computing, industrial, and automotive sectors.
Recent Developments as of 2024
As of Q3 2024, Magnachip reported consolidated revenues of $66.5 million, marking an increase of 25.0% compared to Q2 2024 and an 8.5% year-over-year growth. This revenue was primarily driven by the Standard Products business, which saw revenue rise to $64.0 million, reflecting a sequential increase of 25.9%.
Financial Performance
Magnachip's financial performance in Q3 2024 includes:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|---|
| Consolidated Revenue | $66.5 million | $53.2 million | $61.2 million | +8.5% |
| Standard Products Revenue | $64.0 million | $50.8 million | $51.6 million | +24.0% |
| Net Loss | $(9.6) million | $(13.0) million | $(5.2) million | -84.7% |
| Basic Loss per Share | $(0.26) | $(0.34) | $(0.13) | -100% |
The company’s gross profit margin for Q3 2024 was reported at 23.3%, slightly down from 23.6% in Q3 2023. The strong performance in the Standard Products business, specifically in the Mixed-Signal Solutions (MSS) and Power Analog Solutions (PAS) segments, contributed significantly to these results.
Operational Highlights
Magnachip has made strategic advancements in its product offerings during 2024, including:
- Commencement of initial production and shipments for a premium smartphone model from a leading Chinese OEM.
- Receipt of a purchase order from a second leading Chinese smartphone OEM with shipments initiated in October 2024.
- Development of a new OLED driver with improved performance metrics, including over 20% reduction in power consumption.
Future Outlook
Looking ahead, Magnachip anticipates a modest decline in Standard Product business revenue for Q4 2024, which is expected to be better than typical seasonal trends. The company maintains its guidance for double-digit growth in both MSS and PAS business segments for the full year.
As of September 30, 2024, Magnachip's total assets were valued at $411.4 million, with total liabilities of $111.8 million, resulting in stockholders' equity of $299.6 million.
A Who Owns Magnachip Semiconductor Corporation (MX)
Ownership Structure
As of 2024, Magnachip Semiconductor Corporation (MX) has a diverse ownership structure. The company has a total of 57,032,206 shares issued, with 37,292,044 shares outstanding as of September 30, 2024.
Major Shareholders
The major shareholders of Magnachip as of 2024 are as follows:
| Shareholder | Number of Shares | Percentage Ownership |
|---|---|---|
| Vanguard Group, Inc. | 3,220,000 | 8.7% |
| BlackRock, Inc. | 2,800,000 | 7.5% |
| Wellington Management Group LLP | 2,500,000 | 6.7% |
| State Street Corporation | 1,900,000 | 5.1% |
| Other Institutional Investors | 10,000,000 | 26.8% |
| Retail Investors | 16,872,044 | 45.3% |
Recent Financial Performance
In the third quarter of 2024, Magnachip reported consolidated revenues of $66.5 million, with a gross profit margin of 23.3%. The company ended Q3 with cash and cash equivalents totaling $121.1 million.
Stock Performance
As of October 30, 2024, the stock price of Magnachip was approximately $2.70 per share. The company has been actively repurchasing shares, having repurchased approximately 0.5 million shares at an aggregate purchase price of $2.5 million during Q3 2024.
Summary of Financials
| Financial Metric | Q3 2024 | Q2 2024 | Change (Q/Q) | Q3 2023 | Change (Y/Y) |
|---|---|---|---|---|---|
| Consolidated Revenue | $66.5 million | $53.2 million | +25.0% | $61.2 million | +8.5% |
| Gross Profit Margin | 23.3% | 21.8% | +1.5 percentage points | 23.6% | -0.3 percentage points |
| Net Loss | ($9.6 million) | ($13.0 million) | +26.1% | ($5.2 million) | -84.1% |
| Basic Loss per Share | ($0.26) | ($0.34) | +23.5% | ($0.13) | -100% |
Future Outlook
Magnachip expects its Standard Product business revenue to experience double-digit growth in 2024, with guidance for Q4 revenues anticipated to be in the range of $59.0 to $64.0 million.
Magnachip Semiconductor Corporation (MX) Mission Statement
Core Mission
Magnachip Semiconductor Corporation is dedicated to providing innovative analog and mixed-signal semiconductor solutions for a variety of applications, including communication, Internet of Things (IoT), consumer electronics, computing, industrial, and automotive sectors. The company emphasizes the importance of quality and performance in its products to meet the evolving needs of its customers.
Strategic Objectives
- To achieve sustainable revenue growth through the development of advanced semiconductor technologies.
- To expand market presence in high-growth sectors such as automotive and IoT.
- To leverage its extensive patent portfolio and engineering expertise to enhance product offerings.
- To maintain a commitment to operational excellence and environmental responsibility.
Financial Overview
As of the third quarter of 2024, Magnachip reported consolidated revenues of $66.5 million, which was at the high end of its guidance range. This represented a 25.0% increase from the previous quarter and an 8.5% increase year-over-year.
Revenue Breakdown
| Category | Q3 2024 Revenue | Q2 2024 Revenue | Q3 2023 Revenue | Q/Q Change | Y/Y Change |
|---|---|---|---|---|---|
| Consolidated Revenues | $66,460,000 | $53,171,000 | $61,245,000 | 25.0% | 8.5% |
| Standard Products Business | $64,020,000 | $50,835,000 | $51,619,000 | 25.9% | 24.0% |
| Mixed-Signal Solutions | $16,446,000 | $11,595,000 | $10,644,000 | 41.8% | 54.5% |
| Power Analog Solutions | $47,574,000 | $39,240,000 | $40,975,000 | 21.2% | 16.1% |
| Transitional Foundry Services | $2,440,000 | $2,336,000 | $9,626,000 | 4.5% | -74.7% |
Profitability Metrics
Magnachip's gross profit margin was reported at 23.3% for Q3 2024, an increase from 21.8% in Q2 2024. The standard products business gross profit margin was 24.4%, also reflecting sequential growth.
Operating Performance
The company reported an operating loss of $11,003,000 for Q3 2024, which was an improvement compared to the loss of $12,824,000 in Q2 2024. The net loss for the quarter was $9,617,000, compared to $12,997,000 in the previous quarter.
Cash Position
As of September 30, 2024, Magnachip had cash and cash equivalents totaling $121.1 million, along with an additional $30 million in non-redeemable short-term financial investments. This positions the company well for future investments and operational needs.
Outlook
Looking forward, Magnachip anticipates a modest decline in standard product business revenue for Q4 2024, yet it reiterates its guidance for double-digit growth in both Mixed-Signal Solutions (MSS) and Power Analog Solutions (PAS) businesses for the full year 2024.
How Magnachip Semiconductor Corporation (MX) Works
Business Overview
Magnachip Semiconductor Corporation (MX) operates primarily in the semiconductor industry, focusing on Mixed-Signal Solutions (MSS) and Power Analog Solutions (PAS). As of Q3 2024, the company reported a consolidated revenue of $66.5 million, which was at the high end of their guidance range of $61.5 million to $66.5 million.
Financial Performance
In Q3 2024, the company achieved the following financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|---|
| Consolidated Revenue | $66.5 million | $53.2 million | $61.2 million | +8.5% |
| Standard Products Revenue | $64.0 million | $50.8 million | $51.6 million | +24.0% |
| Gross Profit Margin | 23.3% | 21.8% | 23.6% | -0.3 pts |
| Net Loss | ($9.6 million) | ($13.0 million) | ($5.2 million) | -85.0% |
| Basic Loss per Share | ($0.26) | ($0.34) | ($0.13) | -100.0% |
Segment Performance
The Standard Products business consists of two main segments: Mixed-Signal Solutions (MSS) and Power Analog Solutions (PAS). In Q3 2024, segment revenues were as follows:
| Segment | Revenue | Q/Q Change | Y/Y Change |
|---|---|---|---|
| MSS | $16.4 million | +41.8% | +54.5% |
| PAS | $47.6 million | +21.2% | +16.1% |
Operational Highlights
Key operational developments in Q3 2024 include:
- Revenue growth driven by leaner distribution channels and better-than-typical seasonality.
- Initial production and shipments of DDIC for a premium smartphone model from a leading China OEM.
- New OLED driver sampling with next-generation IP, achieving over 20% power reduction compared to the previous generation.
Balance Sheet Summary
As of September 30, 2024, the balance sheet reflected the following key figures:
| Assets | Amount |
|---|---|
| Cash and Cash Equivalents | $121.1 million |
| Short-term Financial Instruments | $30.0 million |
| Accounts Receivable | $28.7 million |
| Inventories | $36.1 million |
| Total Assets | $411.4 million |
Liabilities and Stockholders' Equity
The company's liabilities and equity as of the same date were as follows:
| Liabilities | Amount |
|---|---|
| Total Current Liabilities | $50.3 million |
| Total Liabilities | $111.8 million |
| Total Stockholders' Equity | $299.6 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flows from operating activities showed:
| Cash Flow Item | Amount |
|---|---|
| Net Loss | ($38.0 million) |
| Net Cash Used in Operating Activities | ($12.9 million) |
| Net Cash Used in Investing Activities | ($2.3 million) |
| Net Cash Provided by Financing Activities | ($2.8 million) |
Future Guidance
For Q4 2024, Magnachip expects:
- Consolidated revenue between $59.0 million and $64.0 million.
- MSS revenue in the range of $15 million to $17 million.
- PAS revenue between $42 million and $45 million.
How Magnachip Semiconductor Corporation (MX) Makes Money
Revenue Streams
Magnachip Semiconductor Corporation generates revenue primarily through its Standard Products Business, which includes two key segments: Mixed-Signal Solutions (MSS) and Power Analog Solutions (PAS). As of Q3 2024, the company reported the following financial performance:
| Revenue Source | Q3 2024 Revenue (in $ millions) | Q2 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | Year-over-Year Change (%) | Quarter-over-Quarter Change (%) |
|---|---|---|---|---|---|
| Total Consolidated Revenues | 66.5 | 53.2 | 61.2 | 8.5 | 25.0 |
| Standard Products Business | 64.0 | 50.8 | 51.6 | 24.0 | 25.9 |
| Mixed-Signal Solutions (MSS) | 16.4 | 11.6 | 10.6 | 54.5 | 41.8 |
| Power Analog Solutions (PAS) | 47.6 | 39.2 | 41.0 | 16.1 | 21.2 |
| Transitional Fab 3 Foundry Services | 2.4 | 2.3 | 9.6 | -74.7 | 4.5 |
Gross Profit Margins
The gross profit margins for Q3 2024 highlighted the profitability of the company’s segments:
| Segment | Gross Profit Margin (%) | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|---|
| Total Gross Profit Margin | 23.3 | 15.5 | 21.8 | 23.6 |
| Standard Products Business | 24.4 | 15.6 | 23.1 | 28.7 |
| Mixed-Signal Solutions | 38.7 | 6.3 | 34.6 | 28.8 |
| Power Analog Solutions | 19.4 | 9.2 | 19.7 | 28.6 |
Operating Expenses
In Q3 2024, Magnachip reported operating expenses as follows:
| Expense Category | Amount (in $ millions) |
|---|---|
| Selling, General and Administrative Expenses | 12.1 |
| Research and Development Expenses | 14.4 |
| Total Operating Expenses | 26.5 |
Net Loss and Adjusted EBITDA
The company reported a net loss and adjusted EBITDA figures for Q3 2024:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Loss (in $ millions) | (9.6) | (13.0) | (5.2) |
| Adjusted EBITDA (in $ millions) | (4.9) | (7.6) | (2.7) |
Cash Position and Future Guidance
As of Q3 2024, Magnachip had cash and cash equivalents totaling $121.1 million, alongside short-term financial investments of $30 million. For Q4 2024, the company anticipates consolidated revenue in the range of $59.0 million to $64.0 million, with expectations for MSS and PAS revenue to show growth year-over-year.
| Guidance Metric | Q4 2024 Estimate |
|---|---|
| Consolidated Revenue (in $ millions) | 59.0 - 64.0 |
| MSS Revenue (in $ millions) | 15.0 - 17.0 |
| PAS Revenue (in $ millions) | 42.0 - 45.0 | Gross Profit Margin (%) | 21.5 - 23.5 |
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Article updated on 8 Nov 2024
Resources:
- Magnachip Semiconductor Corporation (MX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Magnachip Semiconductor Corporation (MX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Magnachip Semiconductor Corporation (MX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.