SEOUL, South Korea and SAN
JOSE, Calif., March 10, 2020
/PRNewswire/ -- MagnaChip Semiconductor Corporation ("MagnaChip" or
the "Company") (NYSE: MX) today updated its financial guidance for
the first quarter ending
March 31, 2020. The Company raised
its anticipated revenue guidance range to $187 million to $197
million as compared to the previous guidance of $180 million to $195
million. The previous guidance range for the first quarter
was previously provided on February 19,
2020 when the Company reported financial results for the
fourth quarter of 2019. The Company is providing this
business update due to the extraordinary business circumstances
caused globally by the COVID-19 coronavirus health crisis and
investor uncertainty about the potential impact of the coronavirus
on the Company's business operations since its last
market update.
CEO YJ Kim Comments on Q1 2020 Guidance
"Due to
stronger-than-expected demand, we now anticipate that revenue in
the first quarter to be in the range of $187
million to $197 million as
compared to the previous revenue guidance range of $180 million to $195
million that we provided on February
19, 2020. Our updated guidance range is based upon the best
available current estimates and excludes any new and unanticipated
potential negative impact from the effects of the coronavirus. We
anticipate gross profit margin to be in the range of
23% to 25%."
As stated previously, the strategic evaluation process
of the Foundry business and Fab 4 continues to make progress,
including having discussions with multiple interested parties
toward a possible sale of the Company's Foundry business and Fab 4,
as well as consideration of accretive business conversions and
other options related to that business.
MagnaChip undertakes no obligation to update information in this
press release based on changes occurring after the date of this
release, and the Company does not intend to routinely provide such
updates in the future and no inference or expectation of such
should be taken from this release. The potential impact of the
COVID-19 coronavirus on second quarter and future fiscal 2020
results cannot be reasonably estimated at this time given the uncertainty regarding the magnitude, duration, and
global reach of the situation. The Company expects to provide
further updates on its first quarter earnings call.
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 more than 40 years of operating history,
owns a portfolio of approximately 2,950 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, outlook and business plans, including but
not limited to first quarter 2020 revenue and gross profit margin
expectations, and the impact of the COVID-19 coronavirus on its
first quarter 2020 and future operating results. 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, including
those caused by or related to the COVID-19 coronavirus outbreak,
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, the risk that the strategic evaluation and the
initiatives related thereto are not successful, public health
issues, including the outbreak of COVID-19 coronavirus, and other
business interruptions that could disrupt supply or delivery of, or
demand for, MagnaChip's products, including without limitation
uncertainties regarding the impacts of the outbreak of the COVID-19
coronavirus that may result in factory closures, reduced
workforces, scarcity of raw materials and goods produced in
infected areas, as well as reduced consumer spending affecting
demand for MagnaChip's products, including as a result of consumers
become ill or limiting or ceasing shopping in order to avoid
exposure, or governments or employers imposing mandatory business
closures, travel restrictions or the like to prevent the spread of
disease, and other risks detailed from time to time in MagnaChip's
filings with the SEC, including our Form 10-K filed on February 21, 2020 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:
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|
|
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In the United
States:
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In
Korea:
|
Bruce
Entin
|
Chankeun
Park
|
Investor
Relations
|
Director, Public
Relations
|
Tel.
+1-408-625-1262
|
Tel.
+82-2-6903-5223
|
Investor.relations@magnachip.com
|
chankeun.park@magnachip.com
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SOURCE MagnaChip Semiconductor Corporation