Magnachip Semiconductor (NYSE: MX) swings to Q2 2026 loss as revenue falls
Rhea-AI Filing Summary
Magnachip Semiconductor reported Q2 2026 net sales of $44.7 million, within guidance but down 3.3% sequentially and 6.1% year-over-year. Power Analog Solutions contributed $40.6 million and Power IC $4.1 million, both declining versus prior periods. Gross profit margin from continuing operations improved sequentially to 19.3%, above the high end of guidance, though slightly below 20.4% a year earlier.
The company posted an operating loss of (9,976) thousand and a loss from continuing operations of (7,601) thousand, compared with income of 9,203 thousand a year ago, leading to a basic loss per share from continuing operations of $(0.21). Net loss was (4,815) thousand, while Adjusted EBITDA from continuing operations was a loss of (4,219) thousand. Cash and cash equivalents were $87,936 thousand and total assets $324,851 thousand as of June 30, 2026.
For Q3 2026, Magnachip guides revenue from continuing operations to $41.5–$45.5 million and gross margin to 17–19%, citing packaging constraints, softer volumes in some consumer applications, and unfavorable product mix. Recent developments include appointing Chae Lee as CEO, launching 6th-generation 600V SJ MOSFETs, and forming a SiC technology partnership with Navitas Semiconductor.
Positive
- Gross margin beat and sequential improvement: Q2 2026 gross profit margin from continuing operations was 19.3%, above the high end of guidance (17.0%–19.0%) and up 3.7 percentage points sequentially.
- Strategic technology initiatives: The company launched 6th-generation 600V SJ MOSFETs and formed a SiC technology licensing partnership with Navitas Semiconductor, supporting its power semiconductor roadmap.
Negative
- Sharp deterioration in profitability: Income from continuing operations swung from a 9,203 thousand profit in Q2 2025 to a (7,601) thousand loss in Q2 2026, with operating loss widening to (9,976) thousand.
Filing Explained
As of June 30, 2026, issued and outstanding shares were higher than at year-end, while $25,949 thousand of borrowings were current.
As a Form 8-K, this filing reports a specified material event; its Item 2.02 disclosure furnishes Magnachip’s completed second-quarter results and the accompanying release. The release also records common-stock issuance and a changed borrowing presentation, so existing holders’ percentage ownership is reduced absent offsetting changes while some borrowings are classified as current.
The company presents adjusted operating loss, adjusted EBITDA, and adjusted loss as supplemental non-GAAP measures, and states that they are not substitutes for GAAP results. The
At
Borrowings were shown as
8-K Event Classification
Key Figures
Key Terms
Power Analog Solutions technical
Adjusted EBITDA financial
discontinued operations financial
SiC technology technical
treasury stock financial
Derivative valuation loss (gain), net financial
Earnings Snapshot
For Q3 2026, consolidated revenue from continuing operations is expected at $41.5–$45.5 million and gross profit margin at 17%–19%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
(Exact name of Registrant as specified in its charter)
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(Commission File Number) |
(IRS Employer Identification No.) |
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Not Applicable |
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(Address of Principal Executive Offices) |
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Registrant’s telephone number, including area code: +
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and Financial Condition.
Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for Magnachip Semiconductor Corporation and its consolidated subsidiaries for the second quarter ended June 30, 2026, as presented in a press release dated July 29, 2026.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is furnished as part of this report:
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Exhibit No.
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Description
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99.1 |
Press release for Magnachip Semiconductor Corporation dated July 29, 2026, announcing the results for the second quarter ended June 30, 2026. |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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MAGNACHIP SEMICONDUCTOR CORPORATION |
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Dated: July 29, 2026 |
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By: |
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/s/ Shinyoung Park
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Shinyoung Park |
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Chief Financial Officer |
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Exhibit 99.1
Magnachip Reports Results for Second Quarter 2026
Q2 Results Summary
Recent Highlights
SEOUL, South Korea, July 29, 2026 – Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the second quarter 2026.
Chae Lee, Magnachip’s CEO said, “Our second quarter results underscore both the challenges and the opportunity ahead. Our strategic relationship with Navitas marks an important milestone toward our plan to rebuild Magnachip. As I have met with our employees and customers over the past month, I have become increasingly confident in the strength of Magnachip's technology, engineering talent and manufacturing capabilities. Building on the strategic transformation already underway, we are focused on developing more differentiated power semiconductor solutions, improving our execution, and positioning Magnachip to compete through advanced innovation. While this transformation will take time, I believe it will strengthen our competitive position and create greater long-term shareholder value."
Q2 2026 Financial Highlights |
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In thousands of U.S. dollars, except share data |
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GAAP |
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Q2 2026 |
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Q1 2026 |
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Q/Q change |
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Q2 2025 |
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Y/Y change |
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Net Sales |
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44,704 |
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46,208 |
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down |
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3.3 |
% |
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47,622 |
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down |
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6.1 |
% |
Power Analog Solutions |
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40,574 |
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41,647 |
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down |
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2.6 |
% |
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42,261 |
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down |
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4.0 |
% |
Power IC |
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4,130 |
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4,561 |
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down |
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9.4 |
% |
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5,361 |
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down |
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23.0 |
% |
Gross Profit Margin |
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19.3 |
% |
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15.6 |
% |
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up |
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3.7 |
%pts |
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20.4 |
% |
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down |
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1.1 |
%pts |
Power Analog Solutions |
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17.2 |
% |
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12.8 |
% |
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up |
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4.4 |
%pts |
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18.2 |
% |
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down |
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1.0 |
%pts |
Power IC |
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40.9 |
% |
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40.4 |
% |
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up |
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0.5 |
%pts |
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37.4 |
% |
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up |
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3.5 |
%pts |
Operating Loss |
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(9,976 |
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(7,170 |
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down |
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39.1 |
% |
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(6,598 |
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down |
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51.2 |
% |
Income (Loss) from continuing operations |
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(7,601 |
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(4,697 |
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down |
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61.8 |
% |
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9,203 |
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down |
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182.6 |
% |
Basic Earnings (Loss) per Common Share |
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(0.21 |
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(0.13 |
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down |
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61.5 |
% |
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0.26 |
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down |
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180.8 |
% |
Diluted Earnings (Loss) per Common Share |
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(0.21 |
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(0.13 |
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down |
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61.5 |
% |
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0.25 |
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down |
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184.0 |
% |
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In thousands of U.S. dollars, except share data |
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Non-GAAP(1) |
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Q2 2026 |
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Q1 2026 |
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Q/Q change |
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Q2 2025 |
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Y/Y change |
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Adjusted Operating Loss |
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(6,976 |
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(6,527 |
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down |
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6.9 |
% |
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(4,776 |
) |
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down |
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46.1 |
% |
Adjusted EBITDA |
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(4,219 |
) |
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(3,640 |
) |
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down |
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15.9 |
% |
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(1,542 |
) |
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down |
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173.6 |
% |
Adjusted Loss |
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(4,901 |
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(4,073 |
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down |
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20.3 |
% |
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(1,978 |
) |
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down |
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147.8 |
% |
Adjusted Loss per Common Share—Diluted |
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(0.13 |
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(0.11 |
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down |
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18.2 |
% |
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(0.05 |
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down |
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160.0 |
% |
Q3 2026 Financial Guidance
While actual results may vary, Magnachip currently expects the following:
Commenting on the third quarter guidance, Shinyoung Park, Chief Financial Officer, said, “We continue to see healthy demand for our Low Voltage BatteryFET product line for mobile products. Nevertheless, we expect third-quarter revenue to decline sequentially due to three near-term factors: packaging constraints in our supply chain that are limiting our ability to fully satisfy demand, lower-than-expected customer volumes in certain consumer applications, and an unfavorable product mix resulting from continued pricing pressure on our legacy products.”
Q2 2026 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, July 29, 2026, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.
Online registration: https://register-conf.media-server.com/register/BIb70b5b5cb65045238d2757182fd0d278
Safe Harbor for Forward-Looking Statements
Information in this press release 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. These statements include expectations regarding our financial performance and business outlook, including third quarter 2026 revenue and gross profit margin, future growth and revenue opportunities, strategic relationships, product development and commercialization, and other future events. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: changes in macroeconomic conditions, trade policies, geopolitical conditions and market conditions; manufacturing capacity constraints, supply chain disruptions and changes in customer demand; the impact of competitive products and pricing; our ability to establish, maintain and expand strategic relationships with customers and business partners, and to realize the anticipated benefits of those relationships; customer acceptance of our products and technologies; our ability to develop, introduce and ramp new products into volume production; changes in semiconductor industry supply and demand, including overcapacity and manufacturing utilization; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses; changes in, or compliance with, applicable trade, export and other laws and regulations; public health issues; other business interruptions; and other risks described in Magnachip's filings with the SEC, including our Annual Report on Form 10-K filed on March 16, 2026. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.
About Magnachip Semiconductor
Magnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a substantial number of registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.
CONTACT:
Mike Bishop
Bishop IR, LLC
Tel. +1 (415) 891-9633
mike@bishopir.com
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share data)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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June 30, |
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Net sales |
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44,704 |
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46,208 |
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47,622 |
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90,912 |
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92,344 |
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Cost of sales |
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36,056 |
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39,014 |
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37,910 |
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75,070 |
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73,270 |
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Gross profit |
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8,648 |
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7,194 |
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9,712 |
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15,842 |
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19,074 |
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Gross profit as a percentage of net sales |
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19.3 |
% |
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15.6 |
% |
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20.4 |
% |
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17.4 |
% |
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20.7 |
% |
Operating expenses: |
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Selling, general and administrative expenses |
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8,747 |
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7,666 |
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8,976 |
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16,413 |
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18,179 |
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Research and development expenses |
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7,896 |
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6,698 |
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6,488 |
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14,594 |
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11,925 |
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Other charges |
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1,981 |
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— |
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|
846 |
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1,981 |
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|
846 |
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Total operating expenses |
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18,624 |
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14,364 |
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|
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16,310 |
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|
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32,988 |
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30,950 |
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Operating loss |
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(9,976 |
) |
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(7,170 |
) |
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(6,598 |
) |
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(17,146 |
) |
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(11,876 |
) |
Interest income |
|
949 |
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1,063 |
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|
|
1,322 |
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|
|
2,012 |
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|
|
2,862 |
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Interest expense |
|
(320 |
) |
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(373 |
) |
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(373 |
) |
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(693 |
) |
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(796 |
) |
Foreign currency gain (loss), net |
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(526 |
) |
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(115 |
) |
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10,797 |
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(641 |
) |
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|
10,392 |
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Other income (loss), net |
|
286 |
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|
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(10 |
) |
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(83 |
) |
|
|
276 |
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|
|
31 |
|
Income (Loss) from continuing operations before |
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(9,587 |
) |
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(6,605 |
) |
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|
5,065 |
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(16,192 |
) |
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|
613 |
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Income tax benefit, net |
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(1,986 |
) |
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(1,908 |
) |
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(4,138 |
) |
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(3,894 |
) |
|
|
(4,539 |
) |
Income (Loss) from continuing operations |
|
(7,601 |
) |
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(4,697 |
) |
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9,203 |
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(12,298 |
) |
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|
5,152 |
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Income (Loss) from discontinued operations, net of tax |
|
2,786 |
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50 |
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(8,880 |
) |
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|
2,836 |
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|
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(13,707 |
) |
Net income (loss) |
$ |
(4,815 |
) |
|
$ |
(4,647 |
) |
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$ |
323 |
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|
$ |
(9,462 |
) |
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$ |
(8,555 |
) |
Basic earnings (loss) per common share— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.21 |
) |
|
$ |
(0.13 |
) |
|
$ |
0.26 |
|
|
$ |
(0.34 |
) |
|
|
$0.14 |
|
Discontinuing operations |
|
0.08 |
|
|
|
0.00 |
|
|
|
(0.25 |
) |
|
|
0.08 |
|
|
|
(0.37 |
) |
Total |
$ |
(0.13 |
) |
|
$ |
(0.13 |
) |
|
$ |
0.01 |
|
|
$ |
(0.26 |
) |
|
$ |
(0.23 |
) |
Diluted earnings (loss) per common share— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.21 |
) |
|
$ |
(0.13 |
) |
|
$ |
0.25 |
|
|
$ |
(0.34 |
) |
|
$ |
0.14 |
|
Discontinuing operations |
|
0.08 |
|
|
|
0.00 |
|
|
|
(0.24 |
) |
|
|
0.08 |
|
|
|
(0.37 |
) |
Total |
$ |
(0.13 |
) |
|
$ |
(0.13 |
) |
|
$ |
0.01 |
|
|
$ |
(0.26 |
) |
|
$ |
(0.23 |
) |
Weighted average number of shares— |
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Basic |
|
36,454,812 |
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|
|
36,407,581 |
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|
|
36,083,703 |
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|
|
36,431,327 |
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|
|
36,483,551 |
|
Diluted |
|
36,454,812 |
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|
|
36,407,581 |
|
|
|
36,768,647 |
|
|
|
36,431,327 |
|
|
|
37,209,622 |
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share data)
(Unaudited)
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|
June 30, 2026 |
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December 31, 2025 |
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Assets |
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|
|
|
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Current assets |
|
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|
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Cash and cash equivalents |
|
$ |
87,936 |
|
|
$ |
103,756 |
|
Accounts receivable, net |
|
|
23,788 |
|
|
|
26,022 |
|
Inventories, net |
|
|
34,136 |
|
|
|
34,151 |
|
Other receivables |
|
|
4,096 |
|
|
|
2,882 |
|
Prepaid expenses |
|
|
4,346 |
|
|
|
5,062 |
|
Hedge collateral |
|
|
4,540 |
|
|
|
1,200 |
|
Other current assets |
|
|
5,631 |
|
|
|
3,782 |
|
Total current assets |
|
|
164,473 |
|
|
|
176,855 |
|
Property, plant and equipment, net |
|
|
92,243 |
|
|
|
100,204 |
|
Operating lease right-of-use assets |
|
|
1,423 |
|
|
|
2,070 |
|
Intangible assets, net |
|
|
395 |
|
|
|
454 |
|
Long-term prepaid expenses |
|
|
498 |
|
|
|
584 |
|
Deferred income taxes |
|
|
60,217 |
|
|
|
64,248 |
|
Other non-current assets |
|
|
5,602 |
|
|
|
7,114 |
|
Total assets |
|
$ |
324,851 |
|
|
$ |
351,529 |
|
Liabilities and Stockholders’ Equity |
|
|
|
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|
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|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
21,127 |
|
|
$ |
20,848 |
|
Other accounts payable |
|
|
5,690 |
|
|
|
11,444 |
|
Accrued expenses |
|
|
7,696 |
|
|
|
6,929 |
|
Accrued income taxes |
|
|
38 |
|
|
|
81 |
|
Operating lease liabilities |
|
|
1,144 |
|
|
|
1,427 |
|
Current portion of long-term borrowings |
|
|
25,949 |
|
|
|
— |
|
Other current liabilities |
|
|
6,044 |
|
|
|
2,681 |
|
Total current liabilities |
|
|
67,688 |
|
|
|
43,410 |
|
Long-term borrowings |
|
|
15,566 |
|
|
|
44,599 |
|
Accrued severance benefits, net |
|
|
11,908 |
|
|
|
11,502 |
|
Non-current operating lease liabilities |
|
|
324 |
|
|
|
690 |
|
Other non-current liabilities |
|
|
2,833 |
|
|
|
3,078 |
|
Total liabilities |
|
|
98,319 |
|
|
|
103,279 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 150,000,000 shares authorized, 58,318,707 shares issued and 36,510,111 |
|
|
581 |
|
|
|
579 |
|
Additional paid-in capital |
|
|
283,263 |
|
|
|
281,537 |
|
Retained earnings |
|
|
205,390 |
|
|
|
214,852 |
|
Treasury stock, 21,808,596 shares at June 30, 2026 and 21,808,596 shares at December 31, 2025, respectively |
|
|
(229,910 |
) |
|
|
(229,910 |
) |
Accumulated other comprehensive loss |
|
|
(32,792 |
) |
|
|
(18,808 |
) |
Total stockholders’ equity |
|
|
226,532 |
|
|
|
248,250 |
|
Total liabilities and stockholders’ equity |
|
$ |
324,851 |
|
|
$ |
351,529 |
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(Unaudited)
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
||||
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
June 30, |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,815 |
) |
|
$ |
(9,462 |
) |
|
$ |
(8,555 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,755 |
|
|
|
5,637 |
|
|
|
6,661 |
|
Provision for severance benefits |
|
|
1,126 |
|
|
|
2,338 |
|
|
|
2,175 |
|
Loss (gain) on foreign currency, net |
|
|
1,616 |
|
|
|
5,878 |
|
|
|
(18,085 |
) |
Provision (reversal) for inventory reserves |
|
|
(903) |
|
|
|
(1,224 |
) |
|
|
845 |
|
Stock-based compensation |
|
|
1,019 |
|
|
|
1,662 |
|
|
|
1,492 |
|
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
7,362 |
|
Deferred income tax assets |
|
|
— |
|
|
|
8 |
|
|
|
(649 |
) |
Others, net |
|
|
54 |
|
|
|
128 |
|
|
|
476 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(593 |
) |
|
|
1,018 |
|
|
|
(4,600 |
) |
Inventories |
|
|
(1,029 |
) |
|
|
(1,220 |
) |
|
|
(4,979 |
) |
Other receivables |
|
|
301 |
|
|
|
(1,246 |
) |
|
|
(5,835 |
) |
Prepaid expenses |
|
|
1,532 |
|
|
|
1,380 |
|
|
|
4,621 |
|
Other current assets |
|
|
(1,157 |
) |
|
|
(2,882 |
) |
|
|
675 |
|
Accounts payable |
|
|
10 |
|
|
|
581 |
|
|
|
2,559 |
|
Other accounts payable |
|
|
(5,436 |
) |
|
|
(5,690 |
) |
|
|
(4,972 |
) |
Accrued expenses |
|
|
2,355 |
|
|
|
1,287 |
|
|
|
(2,022 |
) |
Accrued income taxes |
|
|
(8 |
) |
|
|
(41 |
) |
|
|
22 |
|
Other current liabilities |
|
|
(433 |
) |
|
|
160 |
|
|
|
(546 |
) |
Other non-current liabilities |
|
|
347 |
|
|
|
400 |
|
|
|
8 |
|
Payment of severance benefits |
|
|
(461 |
) |
|
|
(689 |
) |
|
|
(9,843 |
) |
Others, net |
|
|
(782 |
) |
|
|
(969 |
) |
|
|
3,389 |
|
Net cash used in operating activities |
|
|
(4,502 |
) |
|
|
(2,946 |
) |
|
|
(29,801 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from settlement of hedge collateral |
|
|
4,334 |
|
|
|
4,334 |
|
|
|
2,237 |
|
Payment of hedge collateral |
|
|
(4,043 |
) |
|
|
(7,828 |
) |
|
|
— |
|
Purchase of property, plant and equipment |
|
|
(1,329 |
) |
|
|
(5,244 |
) |
|
|
(12,083 |
) |
Payment for intellectual property registration |
|
|
(43 |
) |
|
|
(67 |
) |
|
|
(85 |
) |
Collection of guarantee deposits |
|
|
135 |
|
|
|
2,026 |
|
|
|
2,336 |
|
Payment of guarantee deposits |
|
|
— |
|
|
|
(158) |
|
|
|
(297 |
) |
Others, net |
|
|
— |
|
|
|
49 |
|
|
|
180 |
|
Net cash used in investing activities |
|
|
(946) |
|
|
|
(6,888 |
) |
|
|
(7,712 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term borrowings |
|
|
— |
|
|
|
— |
|
|
|
6,964 |
|
Proceeds from issuance of common stock |
|
|
66 |
|
|
|
66 |
|
|
|
— |
|
Acquisition of treasury stock |
|
|
(25) |
|
|
|
(201 |
) |
|
|
(4,020 |
) |
Repayment of financing related to water treatment facility arrangement |
|
|
(107 |
) |
|
|
(217 |
) |
|
|
(225 |
) |
Repayment of principal portion of finance lease liabilities |
|
|
(32 |
) |
|
|
(66) |
|
|
|
(80 |
) |
Net cash provided by (used in) financing activities |
|
|
(98 |
) |
|
|
(418 |
) |
|
|
2,639 |
|
Effect of exchange rates on cash and cash equivalents |
|
|
(1,072 |
) |
|
|
(5,568 |
) |
|
|
9,590 |
|
Net decrease in cash and cash equivalents |
|
|
(6,618 |
) |
|
|
(15,820 |
) |
|
|
(25,284 |
) |
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of the period |
|
|
94,554 |
|
|
|
103,756 |
|
|
|
138,610 |
|
End of the period |
|
$ |
87,936 |
|
|
$ |
87,936 |
|
|
$ |
113,326 |
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING LOSS FROM CONTINUING OPERATIONS TO ADJUSTED OPERATING LOSS FROM CONTINUING OPERATIONS
(In thousands of U.S. dollars)
(Unaudited)
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
Operating loss– continuing operations |
|
$ |
(9,976 |
) |
|
$ |
(7,170 |
) |
|
$ |
(6,598 |
) |
|
$ |
(17,146 |
) |
|
$ |
(11,876 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense |
|
|
1,019 |
|
|
|
643 |
|
|
|
976 |
|
|
|
1,662 |
|
|
|
1,844 |
|
Other charges |
|
|
1,981 |
|
|
|
— |
|
|
|
846 |
|
|
|
1,981 |
|
|
|
846 |
|
Adjusted Operating Loss– continuing operations |
|
$ |
(6,976 |
) |
|
$ |
(6,527 |
) |
|
$ |
(4,776 |
) |
|
$ |
(13,503 |
) |
|
$ |
(9,186 |
) |
We present Adjusted Operating Loss from continuing operations as a supplemental measure of our performance. We define Adjusted Operating Loss from continuing operations for the periods indicated as operating loss from continuing operations adjusted to exclude (i) Equity-based compensation expense and (ii) Other charges.
For the three and six months ended June 30, 2026, we recorded $1,981 thousand of other charges, consisting of a $1,095 thousand customer goodwill payment related to a certain product, and $886 thousand of one-time employee incentives. For the same period in 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefit related accruals.
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED LOSS FROM CONTINUING OPERATIONS
(In thousands of U.S. dollars, except share data)
(Unaudited)
|
|
Three Months Ended |
|
|
Six Months Ended |
|||||||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||||
Income (Loss) from continuing operations |
|
$ |
(7,601 |
) |
|
$ |
(4,697 |
) |
|
$ |
9,203 |
|
|
$ |
(12,298 |
) |
|
$ |
5,152 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(949) |
|
|
|
(1,063 |
) |
|
|
(1,322 |
) |
|
|
(2,012 |
) |
|
|
(2,862 |
) |
Interest expense |
|
|
320 |
|
|
|
373 |
|
|
|
373 |
|
|
|
693 |
|
|
|
796 |
|
Income tax benefit, net |
|
|
(1,986 |
) |
|
|
(1,908 |
) |
|
|
(4,138 |
) |
|
|
(3,894 |
) |
|
|
(4,539 |
) |
Depreciation and amortization |
|
|
2,750 |
|
|
|
2,877 |
|
|
|
3,237 |
|
|
|
5,627 |
|
|
|
6,357 |
|
EBITDA – continuing operations |
|
|
(7,466 |
) |
|
|
(4,418 |
) |
|
|
7,353 |
|
|
|
(11,884 |
) |
|
|
4,904 |
|
Equity-based compensation expense |
|
|
1,019 |
|
|
|
643 |
|
|
|
976 |
|
|
|
1,662 |
|
|
|
1,844 |
|
Foreign currency loss (gain), net |
|
|
526 |
|
|
|
115 |
|
|
|
(10,797 |
) |
|
|
641 |
|
|
|
(10,392 |
) |
Derivative valuation loss (gain), net |
|
|
(279 |
) |
|
|
20 |
|
|
|
80 |
|
|
|
(259 |
) |
|
|
51 |
|
Other charges |
|
|
1,981 |
|
|
|
— |
|
|
|
846 |
|
|
|
1,981 |
|
|
|
846 |
|
Adjusted EBITDA – continuing operations |
|
$ |
(4,219 |
) |
|
$ |
(3,640 |
) |
|
$ |
(1,542 |
) |
|
$ |
(7,859 |
) |
|
$ |
(2,747 |
) |
Income (Loss) from continuing operations |
|
$ |
(7,601 |
) |
|
$ |
(4,697 |
) |
|
$ |
9,203 |
|
|
$ |
(12,298 |
) |
|
$ |
5,152 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense |
|
|
1,019 |
|
|
|
643 |
|
|
|
976 |
|
|
|
1,662 |
|
|
|
1,844 |
|
Foreign currency loss (gain), net |
|
|
526 |
|
|
|
115 |
|
|
|
(10,797 |
) |
|
|
641 |
|
|
|
(10,392 |
) |
Derivative valuation loss (gain), net |
|
|
(279 |
) |
|
|
20 |
|
|
|
80 |
|
|
|
(259 |
) |
|
|
51 |
|
Other charges |
|
|
1,981 |
|
|
|
— |
|
|
|
846 |
|
|
|
1,981 |
|
|
|
846 |
|
Income tax effect on non-GAAP adjustments |
|
|
(547 |
) |
|
|
(154 |
) |
|
|
(2,286 |
) |
|
|
(701 |
) |
|
|
(2,263 |
) |
Adjusted Loss – continuing operations |
|
$ |
(4,901 |
) |
|
$ |
(4,073 |
) |
|
$ |
(1,978 |
) |
|
$ |
(8,974 |
) |
|
$ |
(4,762 |
) |
Adjusted Loss – continuing operations per common share— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic |
|
$ |
(0.13 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.13 |
) |
- Diluted |
|
$ |
(0.13 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.13 |
) |
Weighted average number of shares – basic |
|
|
36,454,812 |
|
|
|
36,407,581 |
|
|
|
36,083,703 |
|
|
|
36,431,327 |
|
|
|
36,483,551 |
|
Weighted average number of shares – diluted |
|
|
36,454,812 |
|
|
|
36,407,581 |
|
|
|
36,083,703 |
|
|
|
36,431,327 |
|
|
|
36,483,551 |
|
We present Adjusted EBITDA from continuing operations and Adjusted Loss from continuing operations as supplemental measures of our performance. We define Adjusted EBITDA from continuing operations for the periods indicated as EBITDA – continuing operations (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Other charges. EBITDA – continuing operations for the periods indicated is defined as income (loss) from continuing operations before interest income, interest expense, income tax benefit, net and depreciation and amortization.
We prepare Adjusted Loss from continuing operations by adjusting income (loss) from continuing operations to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Loss from continuing operations is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Loss from continuing operations for the periods as net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Other charges and (v) Income tax effect on non-GAAP adjustments.
For the three and six months ended June 30, 2026, we recorded $1,981 thousand of other charges, consisting of a $1,095 thousand customer goodwill payment related to a certain product, and $886 thousand of one-time employee incentives. For the same period in 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefit related accruals.