- Magnachip Semiconductor (MX, Financial) reports a 12.1% year-over-year increase in revenue for Q1 2025 from continuing operations.
- The company repurchased 0.3 million shares worth $1.1 million, ending Q1 with $132.7 million in cash.
- Magnachip completed the shutdown of its Display business, now categorized as discontinued operations.
Magnachip Semiconductor Corporation (MX) disclosed its financial results for the first quarter of 2025, highlighting a consolidated revenue of $44.7 million from continuing operations, including Power Analog Solutions (PAS) and Power IC (PIC) businesses. This figure aligns with the midpoint of their guidance range of $42.0 to $47.0 million and represents a 12.1% increase year-over-year, excluding Transitional Foundry Services.
Despite a 12.6% quarterly drop in revenues compared to Q4 2024, the company's gross profit margin from continuing operations stood at 20.9%, exceeding their guidance range's high end. The Power IC business notably drove year-over-year growth with a 44.1% increase, supported by demand for TV-LED and OLED power ICs. Additionally, PAS revenues surged by 64% year-over-year within the communications market.
The company announced the completion of its Display business shutdown, already classified as discontinued operations from Q1 2025, and anticipates realizing cost savings from a 30% to 35% reduction in annualized operating expenses. During the quarter, Magnachip also repurchased approximately 0.3 million shares for an aggregate purchase price of $1.1 million, maintaining robust financial health with $132.7 million in cash.
Looking ahead, Magnachip forecasts Q2 2025 revenue from continuing operations to range between $45 million and $49 million, suggesting a 5.2% sequential and 6.6% year-over-year increase at the mid-point. CEO YJ Kim emphasized their strategy to launch over 40 new-generation PAS products in 2025, underlining their commitment to innovation and higher gross margins.
The company remains alert to macroeconomic uncertainties but is projecting continuous growth, driven by strong design-wins and product innovations in their core business lines.
