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Magnachip Semiconductor Corporation announced that YJ Kim has agreed to step down as CEO and as a member of the Board of Directors, effective immediately. Camillo Martino, Chairman of the Board of Directors, has also been appointed Interim Chief Executive Officer, effective immediately.
Magnachip’s Interim CEO and Chairman Camillo Martino said, “YJ Kim became CEO during a turbulent period in the Company’s history, and has led the firm for the past decade. However, Magnachip now faces several strategic, operational and financial challenges as it transitions to become a pure play power semiconductor company, and this requires new leadership. On behalf of the Board of Directors, I thank YJ for his service and wish him well in his future endeavors.”
Mr. Martino commented, “I am fully committed as Interim CEO and will spend most of my time in South Korea to accelerate our transition to a pure-play power company, while also focusing intensely on achieving sustainable profitability and maximizing shareholder value. Among the first actions being taken in our plan is cutting capital expenditures by more than 50% over the next two-plus years as we prioritize capital allocation. As part of our capital allocation plans, it is important that we invest in our Gumi fab to support the growth of our new-generation power products that are critical to our financial recovery. New-generation products are expected to increase our market competitiveness and result in higher average selling prices and gross profit margins. Capital expenditures, which recently had been forecast to range between $65-70 million through 2027, now are forecast to be in the range of $30-35 million, but the total net cash outlay by Magnachip currently is expected to range between $12-13 million, with the remainder covered by our bank equipment loan facility.
“In addition, we will continue to review all other available cost reduction initiatives to align our spending consistent with our goal to achieve Adjusted EBITDA1 breakeven as soon as possible. One of the right-sizing initiatives being undertaken is headcount reduction, primarily through shared corporate functions. We are currently targeting to achieve annual savings of $2-3 million in operating expenses, with a payback period of 1.5 years.”
In concluding comment, Mr. Martino said, “As part of Magnachip’s capital allocation process, the Board will review all strategic alternatives including, but not limited to, a potential sale of the Company. The Board and management share the frustration of shareholders regarding the performance of the Company, and we are determined to optimize capital returns to shareholders. I will work closely with our management team to execute our strategic and financial plans and our new-generation power product roadmap.”
YJ Kim said, “I wish to thank Magnachip’s employees for their dedication to the Company, and the Board of Directors for its support. It’s been an honor to lead Magnachip over the past 10 years.”
Original – Magnachip Semiconductor
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CVD Equipment Corporation announced its financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Financial Performance
- Revenue of $5.1 million, a decrease of 19.4% from the prior year quarter. Year to date revenue of $13.4 million was 19.2% higher than the prior year period.
- Gross margin declined to 21.0% as compared to 24.3% in the prior year quarter.
- Net loss of $1.1 million or $0.15 per basic and diluted share, compared to a net loss of $0.8 million or $0.11 per basic and diluted share during the prior year second quarter.
- Cash and cash equivalents of $7.0 million as of June 30, 2025, as compared to $12.6 million as of December 31, 2024. Accounts receivable increased by $3.6 million during the second quarter as we achieved certain contract milestones; we expect to collect these receivables in the third quarter.
Second Quarter 2025 Operational Performance
- Orders for the second quarter were $4.5 million primarily driven by demand in our SDC segment for gas delivery equipment. Orders for the first six months of 2025 were $7.3 million as compared to $16.9 million for the first six months of 2024.
- SDC segment continued to experience strong demand for its gas delivery systems and its backlog increased significantly during the quarter. Revenue was lower as compared to the prior year second quarter and the first quarter of 2025 due to the timing of orders received.
- Backlog as of June 30, 2025 of $13.2 million, a decrease from $13.8 million as of March 31, 2025.
- During 2025, we improved our operating efficiency and continue to evaluate opportunities to further reduce our operating costs.
Manny Lakios, President and CEO of CVD Equipment Corporation, commented, “Our bookings and revenue during the second quarter reflected several factors, including the uncertainties related to proposed tariffs, reduced US government funding for universities as well as a lag in the adoption of our products and the dynamic nature of the emerging growth markets we serve. We are actively monitoring the evolving customer demand, geopolitical landscape and potential tariff impacts and planning accordingly. We are tightly managing our operating expenses and headcount.
“We believe CVD Equipment Corporation is well positioned to provide solutions across our key target markets — aerospace and defense, industrial applications including silicon carbide (SiC) on graphite, SiC high-power electronics, and electric vehicle (EV) battery materials.
“In aerospace and defense, our key product offerings include chemical vapor infiltration (CVI) systems used in the production of ceramic matrix composites (CMCs) for commercial jet engines, and silicon bond coat systems for coating CMC components. For industrial customers, our systems include SiC coating reactor systems and potential uses for the nuclear energy market. Related to the SiC high-power power electronics, our core products include PVT150™ and PVT200™ SiC crystal growth systems. In the EV battery materials market, we are pursuing new opportunities for our PowderCoat™ systems, which can be used in the production of advanced anode materials.
“In early July 2025, we shipped the first CVD4000™ SiC coating reactor system to an industrial customer. These systems will be used to apply a protective silicon carbide coating on graphite OEM components. The resources allocated to our new product launch of the CVD4000™ partially attributed to the reduced revenue from other contracts in progress.
“We remain committed to our long-term strategy—growing our presence across key markets while maintaining disciplined expense management to support our goal of achieving sustained profitability and positive cash flow.”
Original – CVD Equipment Corporation
