SEOUL, South Korea and
SAN JOSE, Calif., June 11, 2019 /PRNewswire/ -- MagnaChip
Semiconductor Corporation (NYSE: MX) today provided an update to
its previous guidance for the second quarter of 2019.
Revenue in the second quarter of 2019, ending June 30, is now expected to be at least
$194 million, and gross profit margin is expected to be at
least 21%. This updated guidance for the second quarter compares to
the Company's previous guidance of revenue to be in the range of
$173-181 million and gross profit
margin to be in the range of 16-18%. The previous revenue guidance
provided on April 30 in conjunction
with the public release of the financial results for the first
quarter of 2019 reflected an expectation at that time that revenue
from MagnaChip's OLED Display drivers would increase by
approximately 30% and that revenue from the Foundry business would
be flat, both as compared to the first quarter of
2019. However, revenue for both OLED Display drivers and
8" Foundry services is now expected to substantially exceed the
Company's previously anticipated financial results for the second
quarter. Revenue from Power standard products is also expected to
be stronger than previously anticipated.
MagnaChip also stated today that the strategic evaluation of its
Foundry business and Fab 4, the larger of the Company's two 8"
manufacturing facilities, is ongoing. Fab 4 is an analog and
mixed-signal fab that produces approximately 73% of the Company's
total capacity, and is used primarily to meet wafer demand from
Foundry customers that rely on outside suppliers. As
previously announced, the strategic evaluation includes a range of
possible options, including, but not limited to, joint ventures,
strategic partnerships and M&A possibilities.
MagnaChip's updated revenue and gross profit margin guidance for
the second quarter of 2019 is not a comprehensive statement of
financial results, and actual figures may vary. The Company
expects to announce full financial results for the second quarter
on July 30 at 4:05 p.m. ET, and will host an investor conference
call a 5 p.m. ET on the same day.
About MagnaChip Semiconductor Corporation
MagnaChip is
a designer and manufacturer of analog and mixed-signal
semiconductor platform solutions for communications, IoT, consumer,
industrial and automotive applications. The Company's Standard
Products Group and Foundry Services Group provide a broad range of
standard products and manufacturing services to customers
worldwide. MagnaChip, with about 40 years of operating history,
owns a portfolio of approximately 3,000 registered patents and
pending applications, and has extensive engineering, design and
manufacturing process expertise. For more information, please
visit www.magnachip.com. Information on or accessible
through, MagnaChip's website is not a part of, and is not
incorporated into, this release.
Safe Harbor for Forward-Looking Statements
Information
in this release regarding MagnaChip's forecasts, business outlook,
expectations and beliefs are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. These statements
include statements about our future operating and financial
performance, including second quarter 2019 revenue and gross profit
margin expectations. All forward-looking statements included
in this release are based upon information available to MagnaChip
as of the date of this release, which may change, and we assume no
obligation to update any such forward-looking statements.
These statements are not guarantees of future performance and
actual results could differ materially from our current
expectations. Factors that could cause or contribute to such
differences include general economic conditions, the impact of
competitive products and pricing, timely design acceptance by our
customers, timely introduction of new products and technologies,
ability to ramp new products into volume production, industry wide
shifts in supply and demand for semiconductor products, industry
and/or company overcapacity, effective and cost efficient
utilization of manufacturing capacity, financial stability in
foreign markets and the impact of foreign exchange rates,
unanticipated costs and expenses or the inability to identify
expenses which can be eliminated, compliance with U.S. and
international trade and export laws and regulations by us and our
distributors, and other risks detailed from time to time in
MagnaChip's filings with the SEC, including our Form 10-K filed on
February 22, 2019 and subsequent
registration statements, amendments or other reports that we may
file from time to time with the SEC and/or make available on our
website. MagnaChip assumes no obligation and does not intend to
update the forward-looking statements provided, whether as a result
of new information, future events or otherwise.
CONTACTS:
In the United
States:
Bruce
Entin
Investor Relations
Tel. +1-408-625-1262
investor.relations@magnachip.com
In Korea:
Chankeun Park
Director, Public Relations
Tel. +82-2-6903-5223
chankeun.park@magnachip.com
View original
content:http://www.prnewswire.com/news-releases/magnachip-semiconductor-provides-updated-guidance-for-q2-2019-financial-results-300865704.html
SOURCE MagnaChip Semiconductor Corporation