MagnaChip Semiconductor ( (MX) ) has released its Q4 earnings. Here is a breakdown of the information MagnaChip Semiconductor presented to its investors.
MagnaChip Semiconductor Corporation is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions, serving various applications in communication, IoT, consumer, computing, industrial, and automotive sectors.
In its latest earnings report, MagnaChip announced a revenue of $63 million for the fourth quarter of 2024, surpassing the mid-point of their guidance range. The company also revealed a strategic shift to become a pure-play power company, exploring strategic options for its display business.
Key financial highlights include a 24% year-over-year increase in Q4 revenue and a gross profit margin of 25.2%, which was above the high-end of their guidance range. The Standard Products business saw a 13% year-over-year revenue increase, with significant growth in Mixed-Signal Solutions and Power Analog Solutions. The company also repurchased 0.7 million shares for $2.9 million and ended the quarter with $138.6 million in cash.
Looking ahead, MagnaChip aims to achieve a quarterly Adjusted EBITDA breakeven by the end of Q4 2025, with positive adjusted operating income expected in 2026 and positive adjusted free cash flow in 2027. The company is targeting a $300 million annual revenue run-rate with a 30% gross profit margin as part of its 3-3-3 strategy.
Overall, MagnaChip’s transition to a pure-play power company marks a significant strategic shift, with management optimistic about achieving their financial targets and enhancing profitability in the coming years.
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