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• Total Revenue: $63 million, up 24% year over year, down 5.1% sequentially.

• Gross Profit Margin: 25.2%, up 2.5 percentage points year over year, up 1.9 percentage points sequentially.

• Standard Products Revenue: $60.7 million, up 47.5% year over year, down 5.1% sequentially.

• Power Solutions (PAS) Revenue: $43.5 million, up 33.2% year over year, down 8.7% sequentially.

• MSS Revenue: $17.3 million, up 102% year over year, up 5.1% sequentially.

• Operating Loss: $15.7 million, compared to $11 million in Q3 and $15.9 million in Q4 2023.

• Adjusted Operating Loss: $7 million, compared to $9 million in Q3 and $14.1 million in Q4 last year.

• Net Loss: $16.3 million, compared to $9.6 million in Q3 and $6 million in Q4 last year.

• Adjusted EBITDA: Negative $2.6 million, compared to negative $4.9 million in Q3 and negative $10 million in Q4 last year.

• Cash Position: $138.6 million at the end of Q4.

• CapEx: $7.4 million in Q4; $11.6 million for the full year 2024.

• Q1 2025 Revenue Guidance: $42 million to $47 million, down 8.9% sequentially, up 11.5% year over year at the midpoint.

• Q1 2025 Gross Profit Margin Guidance: 18.5% to 20.5%.

• Full Year 2025 Revenue Growth Expectation: Mid- to high single-digit year over year.

• Full Year 2025 Gross Profit Margin Expectation: 19.5% to 21.5%.

• Warning! GuruFocus has detected 3 Warning Signs with MX.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MagnaChip Semiconductor Corp (NYSE:MX) announced a strategic shift to become a pure-play power company, focusing on power discrete and power IC businesses to drive profitability.

• The company plans to launch over 40 new generation power products in 2025, with 27 new products launching in Q4 2025, which are expected to drive higher revenue per wafer and improve gross margins.

• Q4 2024 revenue was $63 million, up 24% year over year, and the gross profit margin exceeded guidance, indicating strong financial performance.

• The company has a robust plan to invest $65 million to $70 million over the next three years to upgrade production equipment at their Gumi Fab, aiming for top-line growth and bottom-line improvement.

• MagnaChip Semiconductor Corp (NYSE:MX) has set clear financial targets with their 3-3-3 strategy, aiming for $300 million annual revenue with a 30% gross margin within three years.

Negative Points

• The company is exploring strategic options for its display business, which will be classified as discontinued operations, indicating potential challenges in this segment.

• Q4 2024 saw an operating loss of $15.7 million, and the company recorded a net loss of $16.3 million, reflecting ongoing financial challenges.

• The wind down of Transitional Foundry Services is impacting fab utilization, contributing to a lower gross profit margin outlook for 2025.

• MagnaChip Semiconductor Corp (NYSE:MX) faces underutilization issues at its Gumi Fab due to the phaseout of Transitional Foundry Services, affecting profitability.

• The company anticipates a sequential decline in Q1 2025 revenue due to seasonality and the wind down of Transitional Foundry Services, indicating short-term revenue challenges.