News
MagnaChip Semiconductor Reports Fourth Quarter Results
MagnaChip Semiconductor today announced results for the fourth quarter ended December 31, 2007.
Revenue for the three months ended December 31, 2007 was $246.5 million, compared to $162.3 million in the fourth quarter of 2006.
Gross margin was $63.5 million or 25.8% of revenue for the quarter ended December 31, 2007, compared to $18.0 million or 11.1% of revenue for the fourth quarter of 2006.
Operating expenses for the fourth quarter of 2007 were $58.9 million or 23.9% of revenue, compared to $57.0 million or 35.1% of revenue for the fourth quarter of 2006.
Operating income was $4.7 million during the current quarter, compared to an operating loss of $39.0 million in the prior year quarter.
Net interest expense for the fourth quarter of 2007 was $15.6 million, compared to $14.1 million in the fourth quarter of 2006.
Net loss for the three months ended December 31, 2007 was $29.5 million, compared to a net loss of $45.6 million in the fourth quarter of 2006.
Sang Park, Chairman and CEO of MagnaChip Semiconductor, commented, “We are pleased with how the fourth quarter developed. Revenue came in above prior guidance, which called for an increase of approximately 20% vs. the third quarter, and we returned to an operating profit. We designated 2007 to be the year of MagnaChip’s recovery and believe that our strong performance this quarter demonstrates we have achieved this objective. Importantly, these results are based on new design wins and account development, as well as improved operational execution. Further, there are a number of strategic initiatives that we expect to contribute to our future growth. As recently announced, we have begun marketing a new line of power management products as part of an overall strategy to leverage our analog and mixed signal technology platform to expand our market opportunities.
We continue to strengthen our market position through technical leadership in display driver ICs for AMOLED displays and our portfolio of technologies, such as Smart Mobile Luminance Control, that manage the power consumption of displays. We believe our AMOLED and power management products and technologies are timely due to the increasing market requirements for ‘green,’ energy-efficient products and applications. Overall, we are optimistic that initiatives such as these, coupled with our continued focus on performance and execution excellence across our three existing business lines, will drive our business going forward.”
Robert Krakauer, President and CFO of MagnaChip Semiconductor, said, “Our design wins this year translated into significant momentum in our revenue recovery, with revenue growth of 62% from the first quarter of 2007 to the fourth quarter of 2007. We met our expectation of doubling gross margin in the fourth quarter of 2007 versus the third quarter of 2007, even though our operational improvements were partially offset by both a significantly higher valuation and balance of inventory at the start of the fourth quarter versus the end of the fourth quarter. While we expect a seasonally slow first quarter of 2008 versus the fourth quarter of 2007, we believe our design wins continue to position us well. We remain focused on maintaining our cost competitiveness while strengthening our intellectual property and broadening our product lineup.”
Investor Conference Call / Webcast Details
MagnaChip will report full results for the fourth quarter 2007 on Friday, January 25, 2008 at 9:30 a.m. in New York (11:30 p.m., Friday, January 25, 2008 in Seoul). The conference call will be available at www.magnachip.com and by telephone at +1-(201) 689-8560. A replay of the call will be available in two hours after the call through midnight on Friday, February 1, 2008 in New York (2 p.m. on Friday, February 1, 2008 in Seoul) at www.magnachip.com and by telephone at +1-(201) 612-7415. The account number to access the replay is 3055 and the conference ID number is 268781, respectively.
About MagnaChip Semiconductor
Headquartered in Seoul, South Korea, MagnaChip Semiconductor is a leading, Asia-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications, such as mobile phones, digital televisions, flat panel displays, notebook computers, mobile multimedia devices and digital cameras. The Company has a broad range of analog and mixed-signal semiconductor technology, supported by its 28-year operating history, large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, visit www.magnachip.com.