Magnachip Semiconductor Corporation reported a total revenue of $231.7 million for the fiscal year ending December 31, 2024, reflecting a slight increase of $1.7 million, or 0.7%, compared to $230.1 million in 2023. The growth was primarily driven by a 13% rise in net sales from the standard products business, which reached $221.1 million, up from $195.7 million in the previous year. This increase was attributed to higher demand for Power IC products, particularly in the television and automotive sectors, although it was partially offset by a decline in sales of mobile OLED display driver ICs due to slower design wins and reduced demand for legacy products.
The company's operating loss narrowed to $53.0 million in 2024 from $57.6 million in 2023, aided by a decrease in early termination charges and selling, general, and administrative expenses. However, the company recorded $6.7 million in impairment charges related to its Display business, which contributed to the overall loss. The net loss for the year was $54.3 million, compared to a net loss of $36.6 million in the prior year, largely due to a significant increase in foreign currency losses and a decrease in income tax benefits.
Strategically, Magnachip is transitioning to a pure-play Power company, with plans to explore options for its Display business, which is expected to be classified as discontinued operations by mid-2025. This reorganization aims to enhance profitability and shareholder value by focusing on the Power Analog Solutions and Mixed-Signal Solutions business lines. The company has also initiated a stock repurchase program, authorizing up to $50 million in buybacks, with approximately $11.8 million spent in 2024.
Operationally, Magnachip's workforce consisted of 881 employees as of December 31, 2024, with a significant portion engaged in research and development. The company reported sales to 176 customers, with its top ten customers accounting for 74.1% of net sales, highlighting a reliance on a limited customer base. Geographically, net sales in Korea increased significantly, while sales in the Asia Pacific region also saw growth, although sales in the United States and Europe declined.
Looking ahead, Magnachip anticipates continued challenges in the semiconductor market, including macroeconomic factors such as inflation and geopolitical tensions. The company plans to invest approximately $26-28 million in capital expenditures for 2025, focusing on enhancing its fabrication facility in Gumi, Korea, to support its strategic shift and improve product offerings.
About MAGNACHIP SEMICONDUCTOR Corp
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