Magnachip noted that its full-year revenue of $507.1 million decreased 2.6 per cent YoY due mainly to the exit from the non-automotive LCD business
Magnachip Semiconductor Corporation has announced financial results for the fourth quarter and full-year 2020. The company’s fourth quarter revenue of $142.9 million was up 14.5 per cent sequentially and up 15.9 per cent year-over-year (YoY). It surpassed the midpoint of October guidance by $10.9 million.
“Magnachip’s Q4 results exceeded our expectations, capping off one of the most challenging years for any of us. Our Q4 results demonstrated counter-seasonal strength with a 14.5 per cent sequential revenue growth and GAAP operating income margin of 6.4 per cent, and Non-GAAP adjusted operating income margin of 10.7 per cent driven by a strong ramp-up in 5G as well as effective cost management,” stated YJ Kim, Magnachip’s chief executive officer.
Magnachip noted that its full-year revenue of $507.1 million decreased 2.6 per cent YoY due mainly to the exit from the non-automotive LCD business. Company’s gross profit margin for the fourth quarter was 26.9 per cent, up 400 bps sequentially and up 220 bps YoY. Its Full-year gross profit margin of 25.3 per cent was an increase of 290 bps YoY due mainly to product mix improvement.
“2020 was an exceptional year for Magnachip, despite the challenges presented by the pandemic. We entered MX 3.0, the exciting new chapter of growth, with a sharpened focus as a pure-play standard products company, renewed energy, and a clear mission of empowering our customers,” YJ said.
He added, “Under MX 3.0, we set long-term financial targets that we would like to achieve by 2023. While we recognize the path will not always be a straight line, the exciting opportunities ahead of us only reinforce our confidence in our growth outlook. I am proud of and thankful for our amazing group of dedicated employees who continued to deliver extraordinary results in 2020.”