Magnachip Semiconductor Corporation announced financial results for the third quarter 2023.
- Revenue of $61.2 million was in-line with guidance.
- Gross profit margin of 23.6% increased 140 basis points from Q2, mainly driven by higher fab utilization.
- GAAP diluted loss per share was $0.13.
- Non-GAAP diluted loss per share was $0.04.
- Completed $5.4 million of stock buybacks during Q3.
- Ended Q3 with a solid balance sheet with $166.6 million cash and no debt.
- The internal separation of Display and Power businesses is expected to be completed and be effective on January 1st, 2024.
YJ Kim, Magnachip’s Chief Executive Officer commented, “Our Q3 results were in-line with our guidance. In our Display business, we have completed the qualification of two DDI chips at our new tier 1 panel maker and are going through the qualification process with two smartphone makers. We are now working on additional Driver ICs that cover broader segments of the smartphone market to include mass market smartphones in addition to the premium models.
Despite near-term market challenges, our outlook for long-term growth remains positive. Our confidence is driven by our strong belief that our display products offer distinct competitive advantages that position us well for success in the rapidly growing OLED market in Asia.”
YJ continued, “In our Power business, our product portfolio is getting stronger as we continue to focus on rolling out next-generation power products to maintain our momentum of design-in/wins. Looking ahead, amid heightened global geopolitical and macroeconomic uncertainty, we expect demand to remain soft, driven by normal Q4 seasonality and inventory correction in industrial end markets.”
Original – Magnachip Semiconductor