Magnachip Reports Q1 Earnings Beat; Suspends Earnings Call, Guidance Pending Wise Road Capital's Merger

Magnachip Semiconductor Corp MX reported first-quarter FY21 revenue growth of 2.1% year-on-year to $123 million, beating the analyst consensus of $121.7 million.
Display Solutions revenue rose 24.1% Y/Y to $58.9 million, Power Solutions revenue rose 63% Y/Y to $54 million, and Transitional Fab 3 Foundry Services revenue rose 3.9% Y/Y to $10.1 million.
The gross margin expanded 370 basis points to 27.9%, with the adjusted operating income rising 36.9% Y/Y to $10 million.
Adjusted net income rose 755.9% Y/Y to $9.3 million, and adjusted EPS of $0.22 beat the analyst consensus of $0.14.
Adjusted EBITDA rose 36.5% Y/Y to $13.5 million.
The company held $290.2 million in cash and equivalents and generated $21.2 million in operating cash flow.
Magnachip’s revenue came in above the midpoint of the company’s Q1 revenue guidance range, driven by strong growth in the Power solutions business, gross profit margin exceeded the high-end of its expectations due to the improved product mix and higher utilization, CEO YJ Kim said.
Guidance: Magnachip suspended the quarterly earnings conference call and guidance due to the pending merger with an investment vehicle formed by an affiliate of Wise Road Capital LTD under a March 25 agreement.
Price action: MX shares are down 0.95% at $23.98 on the last check Monday.

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