Magnachip Semiconductor Corp. Q1 FY2025 earnings call

• Board of Directors approved plan to shut down display business by end of Q2; display business classified as discontinued operations. • Q1 consolidated revenue from continuing operations was $44.7 million, up 12.1% year over year and down 8.5% sequentially. • Released 27 new generation power analog solution products in Q1, with 15 design wins. • Power Analog Solutions business revenue $39.9 million, up 9.1% year over year but down 8.3% quarter over quarter. • Power IC business revenue $4.9 million, up 44.1% year over year but down 10% quarter over quarter. • Plan to launch over 50 new products in 2025 and over 55 in 2026, expected to drive higher revenue and margins.

Power Analog Solutions revenue was $39.9 million, up 9.1% year over year and down 8.3% quarter over quarter, representing nearly 90% of Q1 consolidated revenue from continuing operations. Power IC revenue was $4.9 million, up 44.1% year over year and down 10% quarter over quarter, representing 11% of Q1 consolidated revenue from continuing operations.

• Aim to attain quarterly adjusted EBITDA breakeven from continuing operations by end of 2025. • Q2 2025 consolidated revenue from continuing operations expected to be in range of $45 million to $49 million. • Q2 2025 consolidated gross profit margin from continuing operations expected to be in range of 19.5% to 21.5%. • Full-year 2025 consolidated revenue from continuing operations expected to grow mid to high single digit year over year; consolidated gross profit margin from continuing operations between 19.5% to 21.5%.

• Unpredictable macroeconomic landscape poses challenges. • Monitoring tariff situation closely, though direct shipment to U.S. is less than $2.5 million. • Liquidation of display business has estimated cash cost of $12 million to $15 million, offset by expected cash inflow of $15 million to $20 million over two years.

Q: Suji Desilva asked about tariffs and positioning for manufacturing footprint and markets sold.

A: YJ Kim stated 94% of power revenue comes from Asia, direct shipment to U.S. is less than $2.5 million, and they are closely monitoring the tariff situation.

Q: Nick Doyle asked about tariffs and if consumer/communication strength in Q1 was tariff-related pull forward.

A: YJ Kim said only a small pull in was seen in Power IC for TV applications, less than $100,000, and no significant pull-ins otherwise.