SEOUL, South Korea and
SAN JOSE, Calif., Jan.13, 2020
/PRNewswire/ -- MagnaChip Semiconductor Corporation (NYSE: MX)
today provided an update to its previous guidance for the fourth
quarter of 2019.
Revenue in the fourth quarter of 2019, ended December 31, is now expected to be in the range
of $198-200 million, and gross profit
margin is expected to be in the range of 26-27%, based on unaudited
preliminary financial estimates. This updated guidance for
the fourth quarter compares to the Company's previous guidance of
revenue to be in the range of $181-191 million and gross profit margin to be in
the range of 24-26%.
The previous revenue guidance provided on October 23, 2019, in conjunction with the public
release of the financial results for the third quarter of 2019,
reflected an expectation at that time that revenue in the fourth
quarter would reflect normal seasonal softness in the OLED, Power
and Foundry businesses. While seasonal softness was a factor
for all three businesses, OLED revenue was significantly better
than had been expected. The Power standard products business
was seasonally softer than had been expected, and Foundry revenue
was seasonally soft, but better than had been expected.
The previous gross profit margin guidance for the fourth
quarter, provided on October 23,
2019, reflected an expectation at that time that fab
utilization would decline, reflecting normal seasonal softness.
However, increased fab loading along with a richer OLED
product mix contributed to better-than-expected gross profit margin
results in the fourth quarter, as compared to previous
estimates.
MagnaChip also reiterated today that the strategic evaluation of
its Foundry business and Fab 4, the larger of the Company's
two 8" manufacturing facilities, is ongoing. As was
previously announced on October 23,
2019, the Company continues to make substantial
progress on the strategic evaluation process, including discussions
with multiple interested parties toward a possible sale of the
business, as well as consideration of accretive business
conversions, joint ventures and partnerships.
MagnaChip's updated revenue and gross profit margin guidance for
the fourth 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 fourth quarter
in February.
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 fourth 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
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SOURCE MagnaChip Semiconductor Corporation