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MagnaChip Semiconductor Corporation (MX)

  • Fri, Nov. 6, 4:47 PM
    • The Philadelphia Semi Index (SOXX +2.6%) rallied after Nvidia (NVDA +13.9%) beat estimates and provided strong guidance (gaming GPUs led the way), Skyworks (SWKS +7.1%) offered good calendar Q4 guidance and RF chip peer Qorvo (QRVO +23.2%) posted better-than-feared results and guidance. The Nasdaq rose just 0.4%.
    • Also: Analog/Ethernet chipmaker Microsemi (MSCC +4.9%) beat calendar Q3 revenue estimates and offered solid Q4 guidance: Revenue of $325M-$329M and EPS of $0.70-$0.74 vs. a consensus of $323.5M and $0.72.
    • Big gainers today included specialty foundry/Skyworks supplier TowerJazz (TSEM +6%), smart TV/home automation chipmaker Sigma Designs (SIGM +16.6%), telecom/networking IC provider InPhi (IPHI +6.7%), touch controller/LCD driver supplier Synaptics (SYNA +6.1%), FPGA maker Lattice Semi (LSCC +6.6%), network processor vendor Cavium (CAVM +5.6%), DSP core IP provider CEVA (CEVA +7.2%), and analog/mixed-signal chipmakers MagnaChip (MX +4.6%) and Semtech (SMTC +5.4%).
    • On its earnings call (transcript), Qorvo mentioned Chinese smartphone demand (a recent headwind) is "seeing a bit of a rebound," and that the launch of 5-mode and 6-mode Chinese 4G phones is boosting RF chip content. Qorvo also thinks Chinese base station activity (an issue for many telecom chip/component firms) bottomed in Q3, but cautions a mobile infrastructure recovery is expected to be gradual.
    • Microsemi stated on its call (transcript) broadband gateway chip sales were a Q3 strong point, that telecom infrastructure began to improve, and that defense/aerospace sales are expected to rebound in 2016. Industrial demand remained soft in Q3.
    • MKM's Ian Ing has upgraded Nvidia to Buy, calling shares "expensive and worth it." Ing: "We see a sustainable growth trajectory, given [Nvidia's] positioning to lead in significant paradigm changes favoring more valuable semiconductor solutions: automotive evolving from driver assist to autonomous driving, gaming transitioning to virtual reality and professional or social E-sports, and cloud computing increasingly using GPU accelerators for machine learning."
    • Last week: Chip stocks sell off after NXP, STMicro, others issue soft guidance
    | Fri, Nov. 6, 4:47 PM | 1 Comment
  • Thu, Oct. 29, 6:35 PM
    • Though MagnaChip (NYSE:MX) beat Q3 estimates, it's guiding for Q4 revenue of $143M-$153M, unfavorable at a $148M midpoint to a $151.7M consensus. In addition, GAAP gross margin is expected to drop to 14%-16% from Q3's 22.5% and Q2's 21.8%.
    • Foundry Services revenue fell 28% Y/Y in Q3 to $71.5M, Display Solutions (display drivers and other display-related ICs) fell 18% to $48.3M, and Power Solutions (power management ICs) fell 5% to $34.4M. Chinese sales of display/power products were a strong point.
    • Cost cuts led GAAP operating expenses to drop 16% to $42.6M. CEO Y.J. Kim: "Spending in the first three quarters of 2015 declined by approximately $38 million as compared with the same period last year, and our 2016 spending targets are now under review as part of a comprehensive cost reduction plan launched earlier this year." MagnaChip ended Q3 with $68.5M in cash, and $224.1M in long-term borrowings.
    • Shares have fallen to $5.80 after hours.
    • Q3 results, PR
    | Thu, Oct. 29, 6:35 PM | Comment!
  • Thu, Oct. 29, 4:33 PM
    • MagnaChip Semiconductor (NYSE:MX): Q3 EPS of -$0.30 beats by $0.03.
    • Revenue of $154.4M (-20.5% Y/Y) beats by $4.4M.
    • Press Release
    | Thu, Oct. 29, 4:33 PM | Comment!
  • Thu, Oct. 29, 12:29 PM
    • Down on Monday following Dialog Semi's Q3 report and up yesterday in the wake of Apple's results/guidance, chip stocks are selling off again (SOXX -2.5%) after leading microcontroller vendor NXP (NXPI -18.2%) posted mixed Q3 results and (more importantly) guided for Q4 revenue to be down by a "low to upper-teens" % Q/Q. The Nasdaq is down 0.3%.
    • Also: 1) NXP rival and fellow European chipmaker STMicroelectronics (STM -5.8%) slightly missed Q3 revenue estimates and has guided for Q4 revenue to be down 6% (+/- 3.5%) Q/Q. 2) Network processor vendor Cavium (CAVM -5%) issued light Q4 guidance, while blaming a distribution model change at its biggest data center customer. 3) Microcontroller maker Atmel (ATML -2.4%, set to be acquired by Dialog) missed Q3 revenue estimates and guided for Q4 revenue of $266M-$286M, below a $296.1M consensus.
    • On the bright side, Apple-dependent Cirrus Logic (CRUS -5.7%) beat FQ2 EPS estimates (revenue was in-line) and provided solid FQ3 guidance, and fellow Apple/Samsung supplier InvenSense (INVN +14.3%) beat FQ2 estimates and issued in-line FQ3 guidance. Cirrus is nonetheless selling off; the earnings call (transcript) was generally upbeat, with management talking up FY16/FY17 growth opportunities related to smart codec and boosted amplifier sales.
    • NXP merger partner Freescale (FSL -15.4%) is naturally seeing big losses. Other decliners include RF chipmakers Skyworks (SWKS -3.1%), Avago (AVGO -6%), and Qorvo (QRVO -2.6%), analog/mixed-signal chipmakers Texas Instruments (TXN -3%), ON Semi (ON -5.9%), MagnaChip (MX -6.8%), Fairchild (FCS -4.3%), Maxim (MXIM -3.1%), and IDT (IDTI -5.2%), and smart TV SoC vendor/STMicro rival Sigma Designs (SIGM -3.2%).
    • Like NXP, Cirrus, and InvenSense, Skyworks, Avago, Qorvo, TI, and Fairchild are Apple suppliers. Fairchild and Maxim have recently benefited from M&A reports (I, II).
    • Both NXP and STMicro reported seeing conditions deteriorate as Q3 progressed. NXP added lower-than-expected chip sell-through led to higher channel inventories, and STMicro stated "lower consumer spending in China is impacting the dynamics of the distribution channel in the region and the industry more globally, particularly in automotive." NXP has added 20M shares to its buyback in an attempt to soften the blow.
    | Thu, Oct. 29, 12:29 PM | 8 Comments
  • Thu, Aug. 6, 4:40 PM
    • MagnaChip Semiconductor (NYSE:MX): Q2 EPS of -$0.32 beats by $0.08.
    • Revenue of $162M (-5.9% Y/Y) beats by $1.9M.
    • Press Release
    | Thu, Aug. 6, 4:40 PM | Comment!
  • Thu, Jul. 16, 2:45 PM
    • Chip stocks are missing out on a market rally (SOXX -0.2%) after Intel, TSMC, and Fairchild posted Q2 results. The Nasdaq is up 1.1%, and the S&P 0.7%.
    • Intel (down 0.2%) beat estimates - EPS benefited from a low tax rate - offered above-consensus guidance, cut its 2015 capex budget by $1B, and pushed out the ETA for its first 10nm CPUs to 2H17.
    • TSMC (up 0.8%) beat estimates and offered solid Q3 guidance, but also provided cautious industry commentary, and forecast global chip sales will rise only 3% in 2015. A strong dollar, weak PC sales, and slowing emerging markets smartphone growth have been weighing on industry growth.
    • Fairchild (FCS -10.4%) missed estimates and guided for Q3 revenue of $355M-$375M, below a $383.7M consensus. The analog chipmaker blames the Q2 miss on "some mobile and appliance customers, the wireless telecom sector as well as general market distribution."
    • Chip equipment stocks are especially hard-hit thanks to Intel's capex cut/10nm push-out, but various chip developers are also down. Notable decliners include Fairchild peers ON Semi (ON -2.3%), MagnaChip (MX -2.3%), Pericom (PSEM -3.4%), Silicon Labs (SLAB -2.1%), and Intersil (ISIL -2.4%).
    | Thu, Jul. 16, 2:45 PM | 3 Comments
  • Thu, May 28, 4:55 PM
    • After holding the positions for the last year on an interim basis, YJ Kim has been named MagnaChip's (NYSE:MX) permanent CEO and Jonathan Kim its permanent CFO, the company discloses in its Q1 report.
    • Also disclosed: HK Kim, GM of MagnaChip's Power Solutions (power management chip) business, and Brent Rowe, the company's sales chief, have resigned. The departures follow the recent resignation of COO Tae Young Hwang.
    • YJ Kim: "We continue to face major challenges as a result of strategic missteps in the past, so we have implemented a comprehensive cost and portfolio optimization program to position MagnaChip for growth over the long-term while we also work to improve fab utilization and boost engineering efficiencies." As part of the effort, MagnaChip has combined its Power Solutions and Display Solutions (display IC) ops into a single Standard Products unit.
    • Shares have risen to $6.62 AH.
    • Q1 results, PR
    | Thu, May 28, 4:55 PM | Comment!
  • Thu, May 28, 4:25 PM
    • MagnaChip Semiconductor (NYSE:MX): Q1 EPS of -$0.28
    • Revenue of $164.88M (+0.4% Y/Y)
    • Press Release
    | Thu, May 28, 4:25 PM | 1 Comment
  • Thu, Feb. 12, 5:57 PM
    • "Our results for the first three quarters of 2014 show that we have challenges to overcome," says interim CEO Y.J. Kim in a PR announcing MagnaChip (NYSE:MX) has finished restating its 20111-2013 results and filed 10-Qs for Q1-Q3 of 2014.
    • For the nine months ending Sep. 30, 2014, MagnaChip (MX) had revenue of $530.6M (-5% Y/Y) and a GAAP net loss of $1.57/share. The chipmaker ended the period with $125.2M in cash, and $224M in long-term borrowings.
    • Shares have plunged to $9.00 AH.
    • The 10-Q filings: Q1, Q2, Q3
    | Thu, Feb. 12, 5:57 PM | 2 Comments
  • Nov. 26, 2014, 2:52 PM
    • Chip stocks are outperforming after Analog Devices (ADI +5.2%) beat FQ4 estimates and offered in-line FQ1 guidance. The Philadelphia Semi Index (SOXX +1.9%) has made new highs.
    • Notable gainers include many analog/mixed-signal and telecom IC firms: TXN +3%. LLTC +2.7%. SMTC +3.1%. ISIL +3.3%. SWKS +3.7%. AVGO +2.9%. OVTI +3.2%. FSL +3.1%. EZCH +2.5%. XLNX +2.3%. ALTR +2.1%. MX +4.3%. PMCS +2.7%. BRCM +2%.
    • On its CC (transcript), ADI noted its telecom equipment chip sales are holding up well in spite of weak capex, aided by the fact its dollar content for 4G base stations is "at least 20% to 30% better" than for 3G base stations. The company also mentioned its lead times were stable in FQ4.
    | Nov. 26, 2014, 2:52 PM | 3 Comments
  • Mar. 11, 2014, 4:59 PM
    • MagnaChip's (MX) audit committee has determined the company "incorrectly recognized revenue on certain transactions." Restatements are planned for 2011, 2012, and the first three quarters of 2013. (PR)
    • In addition, MagnaChip is withdrawing its prior Q4 guidance due to the review. The company doesn't expect its restatements will affects its reported cash/debt balances for the covered periods.
    • CFO Margaret Sakai will no longer serve as MagnaChip's principal accounting officer. Jonathan W. Kim, once the CFO of cloud software firm Zero Desktop, is now MagnaChip's chief accounting officer.
    • MagnaChip originally delayed its Q4 report on Jan. 27 to give itself more time to review its numbers.
    | Mar. 11, 2014, 4:59 PM | 2 Comments
  • Mar. 11, 2014, 12:10 AM
  • Mar. 10, 2014, 5:35 PM
  • Feb. 25, 2014, 12:10 AM
  • Feb. 24, 2014, 5:35 PM
  • Feb. 11, 2014, 12:10 AM
Company Description
Magnachip Semiconductor Corp is a Korea-based company that designs and manufactures analog and mixed-signal semiconductor products for consumers, computer and communication applications.
Sector: Technology
Country: Korea