Magnachip Semiconductor Reports 8.5% Revenue Growth in Q3 2024, Despite Increased Net Losses

Magnachip Semiconductor Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting both revenue growth in certain segments and increased net losses compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues reached $66.5 million, an increase of $5.2 million (8.5%) from $61.2 million in the same period of 2023. The standard products business contributed $64.0 million, reflecting a significant increase of $12.4 million (24.0%) from $51.6 million in Q3 2023. This growth was driven by the Mixed-Signal Solutions segment, which saw net sales rise to $16.4 million from $10.6 million, and the Power Analog Solutions segment, which increased to $47.6 million from $41.0 million.

Despite the revenue growth, the company reported a net loss of $9.6 million for Q3 2024, compared to a net loss of $5.2 million in Q3 2023. The increase in net loss was attributed to a $9.5 million decrease in income tax benefit and a $1.8 million increase in operating loss, partially offset by a $7.6 million improvement in net foreign currency loss. The operating loss for the quarter was $11.0 million, up from $9.2 million in the prior year.

For the nine months ended September 30, 2024, total revenues decreased to $168.7 million, down $10.5 million (5.9%) from $179.2 million in the same period of 2023. However, net sales from the standard products business increased to $160.4 million, a rise of $5.9 million (3.8%). The Mixed-Signal Solutions segment reported net sales of $37.0 million, while the Power Analog Solutions segment increased to $123.3 million. The company experienced a net loss of $38.0 million for the nine months, compared to a net loss of $30.6 million in the same period of 2023.

The company’s cash and cash equivalents decreased to $121.1 million as of September 30, 2024, down from $158.1 million at the end of 2023. Total liabilities increased significantly to $111.8 million from $75.9 million, while total stockholders’ equity fell to $299.6 million from $344.6 million.

Strategically, Magnachip has undergone a reorganization of its business lines into Mixed-Signal Solutions and Power Analog Solutions to better align product strategies. The company also executed a Standard Credit Agreement with Korea Development Bank for a working capital term loan of approximately $29.8 million, which is expected to support its operations moving forward.

Overall, while Magnachip has seen growth in certain product lines, it continues to face challenges reflected in its increased net losses and changes in its financial position.