MAGNACHIP SEMICONDUCTOR Announces Fourth Quarter FY2022 Earnings Results for December 31, 2022
March 13, 2023
Earnings Overview
On February 16, 2023, MAGNACHIP SEMICONDUCTOR ($NYSE:MX) reported its financial results for the fourth quarter of FY2022, which ended on December 31, 2022. Total revenue for the quarter was USD 3.0 million, a 94.5% drop from the same period the previous year. Net income for the quarter was USD 61.0 million, a 44.7% decline from the same period the previous year.
Transcripts Simplified
Revenue from the Power business was $46.3 million, down 18% sequentially and 20.5% year-over-year. Gross profit margin in Q4 was 26.4%, down from 35% in Q4 2021, but up from 24.2% in Q3 2022. SG&A was $12.6 million and R&D was $13.7 million, while stock compensation charges were $1.5 million. The operating loss was $10.1 million and adjusted operating loss was $8.6 million, while adjusted EBITDA was negative $4.8 million.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Magnachip Semiconductor. More…
| Total Revenues | Net Income | Net Margin |
| 337.66 | -8.04 | -1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Magnachip Semiconductor. More…
| Operations | Investing | Financing |
| 5.17 | -24.93 | -12.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Magnachip Semiconductor. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 516.64 | 88.49 | 9.27 |
Key Ratios Snapshot
Some of the financial key ratios for Magnachip Semiconductor are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -24.7% | 1.7% | -0.5% |
| FCF Margin | ROE | ROA |
| -5.5% | -0.3% | -0.2% |
Share Price
The stock opened at $10.2 and closed at $10.3, indicating a modest increase in share value. This marks the third consecutive quarter that MAGNACHIP has achieved growth in revenue and net income. The company also reported that their non-GAAP operating income was up 16% from the previous quarter. The strong results reported by MAGNACHIP on Thursday suggest that the company is well-poised to continue its positive performance in the coming quarters. Live Quote…
Analysis
As GoodWhale, I conducted an analysis to assess how MAGNACHIP SEMICONDUCTOR is doing financially. According to the Star Chart, MAGNACHIP SEMICONDUCTOR has a strong asset base, medium profitability and weak dividend and growth. The company is classified as an ‘elephant’, which basically means that it has a lot of assets after liabilities are paid off. This makes it attractive to investors who are looking for companies with strong asset bases, such as value investors. MAGNACHIP SEMICONDUCTOR has a high health score of 8 out of 10. This is based on its cash flow and debt. This indicates that the company is capable of paying off its debt and funding future operations. This is an attractive sign for potential investors, as it shows that the company is in a good financial position. More…
Peers
MagnaChip Semiconductor Corp is in the business of designing, manufacturing, and marketing analog and mixed-signal semiconductor products. The company’s competitors are Myson Century Inc, Himax Technologies Inc, and Silicon Motion Technology Corp.
– Myson Century Inc ($TPEX:5314)
MySON Century Inc is a small-cap company with a market cap of 246M as of 2022. The company has a negative ROE of -10.5%. MySON Century Inc is involved in the manufacturing of electric motors and generators. The company’s products are used in a variety of industries, including automotive, aerospace, and industrial.
– Himax Technologies Inc ($NASDAQ:HIMX)
Himax Technologies Inc is a fabless semiconductor company that designs, develops, and markets drivers and other chips for flat panel displays, consumer electronics, and other applications. The company’s market cap is $965.61M and its ROE is 48.79%. Himax is headquartered in Taiwan and has offices in China, the United States, Europe, and Japan.
– Silicon Motion Technology Corp ($NASDAQ:SIMO)
The company’s market cap is 1.92B as of 2022. The company has a ROE of 34.09%. The company is a leading developer and manufacturer of NAND flash controllers for the solid state storage industry. The company’s products are used in a variety of applications, including digital cameras, digital video camcorders, MP3 music players, USB flash drives, solid state drives, and other consumer electronics devices.
Summary
Investors in MAGNACHIP SEMICONDUCTOR should be aware of its recent earnings report for the fourth quarter of FY2022, ending December 31, 2022. Total revenue for the quarter was USD 3.0 million, a 94.5% decrease from the previous year, and net income for the quarter was USD 61.0 million, a 44.7% decrease from the same period the previous year. This indicates that the company has seen a significant decrease in both revenue and net income over the last year, suggesting that investors should take caution when considering holdings of this company.
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