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South Korea's Magnachip Q3 gross margin falls on FX movements

By Reuters News


Overview

  • South Korea-based power semiconductor maker's Q3 net sales declined 4.3% yr/yr, within guidance range

  • Gross margin of 14.0%, below guidance, mainly due to FX movements

  • Company announced $5 mln strategic equity investment from Navitas Semiconductor


Outlook

  • Magnachip sees Q4 consolidated revenue between $41.0 mln to $45.0 mln

  • Company expects Q4 gross profit margin of 10% to 12%


Result Drivers

  • FOREIGN EXCHANGE - Co said gross margin was primarily hurt by unfavorable foreign exchange movements

  • SUBSTATION UPGRADE COSTS - Co incurred costs related to an electrical substation upgrade at its Gumi fabrication facility

  • NEW PRODUCT LAUNCHES - Co launched 15 new sixth-generation E6 Super-Junction MOSFETs targeting consumer and industrial applications


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Loss

$12.54 mln

Q3 Adjusted EBITDA

-$3.50 mln

Q3 Gross Margin

14.00%

Q3 Adjusted Operating Loss

$8.59 mln

Q3 Operating Income

-$12.88 mln


Reuters Recommended Reads

  • Nov 3 - Navitas Semiconductor Q3 revenue beats estimates on rising demand from AI data centers and grid infrastructure

  • Nov 2 - Advanced Energy Q3 revenue beats on record semiconductor and data center computing sales

  • Nov 4 - GlobalFoundries Q3 revenue slightly beats, adjusted profit exceeds estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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