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  Title	Magnachip Reports Results for Fourth Quarter and Full-Year 2024
  ID	7654140
  External ID	105500238
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  Published Date	March 12, 2025, 5:55 a.m.
  Summary	Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now Magnachip Reports Results for Fourth Quarter and Full-Year 2024 Business Wire Wed, Mar 12, 2025, 4:55 AM 16 min read
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  Content ID	4959386
  Key	cf7c29ae-b91c-41e6-89d7-a17504d07954
  Content	Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now Magnachip Reports Results for Fourth Quarter and Full-Year 2024 Business Wire Wed, Mar 12, 2025, 4:55 AM 16 min read In This Article: MX -5.45% - Announces Transition to Become Pure-Play Power Company; Explores All Strategic Options for Display Business - Q4 Results Summary Consolidated revenue of $63 million was above the mid-point of our guidance range of $59.0 to $64.0 million. Standard Product business revenue was down 5.1% sequentially due primarily to seasonality. Consolidated gross profit margin of 25.2% was above the high-end our guidance range of 21.5% to 23.5%. Standard Product business gross profit margin was 26.6%, up 2.2 percentage points sequentially. Repurchased approximately 0.7 million shares for aggregate purchase price of $2.9 million during the quarter and ended Q4 with cash of $138.6 million. 2024 Highlights Excluding Transitional Foundry Services, Standard Products business revenue increased 13% year-over-year, with MSS up 22.5% and PAS up 10.2%. Both of these business line growth rates were in line with original guidance for double-digit growth provided at the beginning of 2024. PAS revenue growth was strongest in Communication, Computing and Consumer in calendar 2024. Automotive and Industrial declined only slightly, relatively outperforming the broader markets. Power IC revenue increased more than 50% year-over-year. SEOUL, South Korea, March 12, 2025 --( BUSINESS WIRE )--Magnachip Semiconductor Corporation (NYSE: MX) ("Magnachip" or the "Company") today announced financial results for the fourth quarter and full-year 2024. YJ Kim, Magnachip’s CEO, said, "Our Q4 revenue of $63 million was up 24% year-over-year, and gross profit margin of 25.2% was up 2.5 percentage points as compared to a year ago. For the year, Standard Products business revenue increased 13% year-over-year, in line with our guidance for double-digit growth that we provided at the beginning of 2024." YJ Kim added, "Our revenue and gross margin results represented a step in the right direction, but our utmost short-term goal is a return to profitability. To achieve this goal, Magnachip announced today its transition to become a pure-play Power company, and we also announced that we are exploring all strategic options for the Display business, which will be classified as discontinued operations when the Company reports Q1 results in May." YJ Kim commented, "By focusing on the Power business, Magnachip currently expects to achieve a quarterly Adjusted EBITDA * breakeven by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income * in 2026, and positive adjusted free cash flow * in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a $300 million annual revenue run-rate with a 30% gross profit margin target. We call this our 3-3-3 strategy." Story Continues * Non-GAAP measure. Please see footnote (2) under the table below, as well as the reconciliation tables of historical GAAP results to non-GAAP results included at the end of this press release. Q4 and 2024 Financial Highlights In thousands of U.S. dollars, except share data GAAP Q4 2024 Q3 2024 Q/Q change Q4 2023 Y/Y change Consolidated Revenues 63,039 66,460 down 5.1 % 50,822 up 24.0 % Standard Products Business 60,744 64,020 down 5.1 % 41,182 up 47.5 % Mixed-Signal Solutions 17,289 16,446 up 5.1 % 8,558 up 102.0 % Power Analog Solutions 43,455 47,574 down 8.7 % 32,624 up 33.2 % Transitional Fab 3 foundry services (1) 2,295 2,440 down 5.9 % 9,640 down 76.2 % Consolidated Gross Profit Margin 25.2 % 23.3 % up 1.9 %pts 22.7% up 2.5 %pts Standard Products Business 26.6 % 24.4 % up 2.2 %pts 22.9% up 3.7 %pts Mixed-Signal Solutions 41.8 % 38.7 % up 3.1 %pts 41.3% up 0.5 %pts Power Analog Solutions 20.5 % 19.4 % up 1.1 %pts 18.1% up 2.4 %pts Operating Loss (15,745 ) (11,003 ) down n/a (15,935) up n/a Net Loss (16,277 ) (9,617 ) down n/a (6,040) down n/a Basic Loss per Common Share (0.44 ) (0.26 ) down n/a (0.16) down n/a Diluted Loss per Common Share (0.44 ) (0.26 ) down n/a (0.16) down n/a In thousands of U.S. dollars, except share data Non-GAAP (2) Q4 2024 Q3 2024 Q/Q change Q4 2023 Y/Y change Adjusted Operating Loss (6,970 ) (9,026 ) up n/a (14,095) up n/a Adjusted EBITDA (2,635 ) (4,949 ) up n/a (9,972) up n/a Adjusted Net Income (Loss) 2,637 (12,797 ) up n/a (8,044) up n/a Adjusted Earnings (Loss) per Common Share—Diluted 0.07 (0.34 ) up n/a (0.21) up n/a In thousands of U.S dollars, except share data GAAP 2024 2023 Y/Y Change Consolidated Revenues 231,737 230,051 up 0.7% Standard Products Business 221,140 195,690 up 13.0% Mixed-Signal Solutions 54,336 44,366 up 22.5% Power Analog Solutions 166,804 151,324 up 10.2% Transitional Fab 3 foundry services (1) 10,597 34,361 down 69.2% Consolidated Gross Profit Margin 22.4% 22.4% down 0.0%pts Standard Products Business 24.0% 26.5% down 2.5%pts Mixed-Signal Solutions 39.8% 33.7% up 6.1%pts Power Analog Solutions 18.9% 24.4% down 5.5%pts Operating Loss (53,031) (57,644) up n/a Net Loss (54,308) (36,622) down n/a Basic Loss per Common Share (1.44) (0.89) down n/a Diluted Loss per Common Share (1.44) (0.89) down n/a In thousands of U.S dollars, except share data Non-GAAP (2) 2024 2023 Y/Y Change Adjusted Operating Loss (40,163) (41,170) up n/a Adjusted EBITDA (23,594) (24,174) up n/a Adjusted Net Loss (29,178) (22,474) down n/a Adjusted Loss per Common Share—Diluted (0.77) (0.55) down n/a ______________________ (1) Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as "Fab 3" ("Transitional Fab 3 Foundry Services"). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we have wound down these foundry services and begun to convert portions of the idle capacity to PAS products during the second half of 2024. Because these foundry services during the wind-down period have still been provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we continued to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down is completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products MSS and PAS businesses. (2) Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release. We define adjusted free cash flow as net cash provided by operating activities, adjusted for net foreign currency transaction gain or loss, less capital expenditures. Q1 and Full-year 2025 Financial Guidance Beginning Q1 2025, the Company will become a pure-play Power company, with the display business classified as discontinued operations and reported separately from continuing operations, which will include PAS and Power IC business lines. While actual results may vary, Magnachip currently expects the following: For Q1 2025: Consolidated revenue from continuing operations (which includes Power discrete and Power IC businesses, and excludes our former Display business) to be in the range of $42 to $47 million, down 8.9% sequentially due primarily to seasonality, but up 11.5% year-over-year at the mid-point. This compares with equivalent revenue of $48.9 million in Q4 2024 and $39.9 million in Q1 2024. Consolidated gross profit margin from continuing operations to be in the range of 18.5% to 20.5%, due to the seasonal sequential decline in revenue and the wind down of Transitional Foundry Services impacting fab utilization. This compares with equivalent gross profit margin of 23.2% in Q4 2024 and 17.6% in Q1 2024. For the full-year 2025, which will set the stage to become a pure-play Power company, we currently expect: Consolidated revenue from continuing operations to grow mid-to-high single digit year-over-year as compared with equivalent revenue of $185.8 million in 2024. Consolidated gross profit margin from continuing operations between 19.5% to 21.5%, reflecting the fact that we have completed the wind down of Transitional Foundry Services and new generation power products will just begin production in the second half 2025. The equivalent gross profit margin was 21.5% in 2024. Q4 2024 Earnings Conference Call Magnachip will host a corresponding conference call at 8:30 a.m. ET on Wednesday, March 12, 2025, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com . Online registration: https://register.vevent.com/register/BIa6cd0a845f2f49d6b9ae30f6b3ef47d2 Sell-Side Analyst Briefing and Webcast Following the conference call, Magnachip will hold an in-person briefing for sell-side analysts in New York City at 10:15 a.m. ET on Wednesday, March 12, 2025. The session will be led by Chief Executive Officer YJ Kim, with Chief Financial Officer Shinyoung Park and other members of management also in attendance. The in person briefing is open to all sell-side analysts and will be webcast live. For further details, please contact steven@blueshirtgroup.co . To join the Analyst Briefing webcast, all participants must use the following link to complete the online registration process in advance. Upon registering, each participant will receive access details, including the dial-in numbers, a PIN number, and an email with detailed instructions to join the call. Online registration : https://register.vevent.com/register/BIa603d2c4ff554592b500a20e6e1500d7 Safe Harbor for Forward-Looking Statements Information in this presentation regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter and full year 2025 revenue and gross profit margin expectations and longer term annualized revenue and gross profit margin targets, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China on Magnachip’s first quarter and full year 2025 revenue and future operating results, and the timing and extent of future revenue contributions by our products and businesses, are based upon information available to Magnachip as of the date of this presentation and the accompanying press release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S., China and other countries, including the impact of tariff actions; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the "SEC"), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise. About Magnachip Semiconductor Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things ("IoT"), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a portfolio of approximately 1,000 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com . Information on or accessible through Magnachip's website is not a part of, and is not incorporated into, this release. MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data) (Unaudited) Three Months Ended Year Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Revenues: Net sales – standard products business $ 60,744 $ 64,020 $ 41,182 $ 221,140 $ 195,690 Net sales – transitional Fab 3 foundry services 2,295 2,440 9,640 10,597 34,361 Total revenues 63,039 66,460 50,822 231,737 230,051 Cost of sales: Cost of sales – standard products business 44,607 48,400 31,754 168,008 143,762 Cost of sales – transitional Fab 3 foundry services 2,547 2,599 7,541 11,814 34,649 Total cost of sales 47,154 50,999 39,295 179,822 178,411 Gross profit 15,885 15,461 11,527 51,915 51,640 Gross profit as a percentage of standard products business net sales 26.6 % 24.4 % 22.9 % 24.0 % 26.5 % Gross profit as a percentage of total revenues 25.2 % 23.3 % 22.7 % 22.4 % 22.4 % Operating expenses: Selling, general and administrative expenses 12,009 12,091 12,079 47,098 48,470 Research and development expenses 12,967 14,373 15,383 51,194 51,563 Impairment and other charges 6,654 — — 6,654 802 Early termination charges — — — — 8,449 Total operating expenses 31,630 26,464 27,462 104,946 109,284 Operating loss (15,745 ) (11,003 ) (15,935 ) (53,031 ) (57,644 ) Interest income 2,279 2,051 2,519 8,771 10,435 Interest expense (603 ) (574 ) (183 ) (1,969 ) (828 ) Foreign currency gain (loss), net (13,407 ) 5,066 5,241 (16,899 ) 465 Other income (loss), net 364 (31 ) (42 ) 485 13 Loss before income tax expense (benefit) (27,112 ) (4,491 ) (8,400 ) (62,643 ) (47,559 ) Income tax expense (benefit), net (10,835 ) 5,126 (2,360 ) (8,335 ) (10,937 ) Net loss $ (16,277 ) $ (9,617 ) $ (6,040 ) $ (54,308 ) $ (36,622 ) Basic loss per common share— $ (0.44 ) $ (0.26 ) $ (0.16 ) $ (1.44 ) $ (0.89 ) Diluted loss per common share— $ (0.44 ) $ (0.26 ) $ (0.16 ) $ (1.44 ) $ (0.89 ) Weighted average number of shares— Basic 36,921,300 37,468,849 38,834,451 37,774,280 41,013,069 Diluted 36,921,300 37,468,849 38,834,451 37,774,280 41,013,069 MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) (Unaudited) December 31, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 138,610 $ 158,092 Accounts receivable, net 28,402 32,641 Inventories, net 30,535 32,733 Other receivables 4,444 4,295 Prepaid expenses 10,379 7,390 Hedge collateral 2,080 1,000 Other current assets 4,779 9,283 Total current assets 219,229 245,434 Property, plant and equipment, net 81,463 100,122 Operating lease right-of-use assets 3,107 4,639 Intangible assets, net 507 1,537 Long-term prepaid expenses 165 5,736 Deferred income taxes 52,889 50,836 Other non-current assets 21,956 12,187 Total assets $ 379,316 $ 420,491 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 21,642 $ 24,443 Other accounts payable 10,764 5,292 Accrued expenses 8,648 10,457 Accrued income taxes 56 1,496 Operating lease liabilities 1,393 1,914 Other current liabilities 3,765 3,286 Total current liabilities 46,268 46,888 Long-term borrowing 27,211 — Accrued severance benefits, net 17,094 16,020 Non-current operating lease liabilities 1,823 2,897 Other non-current liabilities 10,123 10,088 Total liabilities 102,519 75,893 Commitments and contingencies Stockholders’ equity Common stock, $0.01 par value, 150,000,000 shares authorized, 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023 574 569 Additional paid-in capital 279,423 273,256 Retained earnings 244,576 298,884 Treasury stock, 20,586,389 shares at December 31, 2024 and 18,118,652 shares at December 31, 2023, respectively (225,883 ) (213,454 ) Accumulated other comprehensive loss (21,893 ) (14,657 ) Total stockholders’ equity 276,797 344,598 Total liabilities and stockholders’ equity $ 379,316 $ 420,491 MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited) Three Months Ended Year Ended December 31, 2024 December 31, 2024 December 31, 2023 Cash flows from operating activities Net loss $ (16,277 ) $ (54,308 ) $ (36,622 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization 3,990 16,161 16,684 Provision for severance benefits 3,468 8,020 5,333 Loss on foreign currency, net 26,711 32,851 3,373 Provision (reversal) for inventory reserves 1,086 (529 ) 3,885 Stock-based compensation 2,121 6,214 7,223 Impairment charges 4,637 4,637 — Deferred income tax assets (10,145 ) (7,034 ) (13,405 ) Other, net 247 799 757 Changes in operating assets and liabilities Accounts receivable, net (841 ) 2,719 1,909 Inventories 782 (1,583 ) 2,370 Other receivables 915 (115 ) 3,847 Prepaid expenses 3,232 8,877 8,808 Other current assets 598 1,753 8,048 Accounts payable (2,590 ) (1,971 ) 7,152 Other accounts payable (3,963 ) (14,160 ) (8,934 ) Accrued expenses 732 (607 ) 493 Accrued income taxes 27 (1,432 ) (1,569 ) Other current liabilities (921 ) (1,161 ) (24 ) Other non-current liabilities 10 (335 ) (238 ) Payment of severance benefits (518 ) (2,407 ) (6,982 ) Others, net (1,445 ) (2,522 ) (5,122 ) Net cash provided by (used in) operating activities 11,856 (6,133 ) (3,014 ) Cash flows from investing activities Proceeds from settlement of hedge collateral — 627 5,669 Payment of hedge collateral (1,094 ) (1,706 ) (3,754 ) Purchase of property, plant and equipment (7,425 ) (11,600 ) (6,955 ) Payment for intellectual property registration (53 ) (316 ) (263 ) Collection of guarantee deposits 2,382 3,535 4,984 Payment of guarantee deposits (85 ) (2,175 ) (7,338 ) Collection of short-term financial instruments 30,000 30,000 — Purchase of short-term financial instruments — (30,000 ) — Others, net — (37 ) — Net cash provided by (used in) investing activities 23,725 (11,672 ) (7,657 ) Cash flows from financing activities Proceeds from long-term borrowing — 30,059 — Proceeds from exercise of stock options — — 27 Acquisition of treasury stock (3,384 ) (12,891 ) (51,782 ) Repayment of financing related to water treatment facility arrangement (115 ) (472 ) (493 ) Repayment of principal portion of finance lease liabilities (35 ) (139 ) (91 ) Net cash provided by (used in) financing activities (3,534 ) 16,557 (52,339 ) Effect of exchange rates on cash and cash equivalents (14,532 ) (18,234 ) (4,375 ) Net increase (decrease) in cash and cash equivalents 17,515 (19,482 ) (67,385 ) Cash and cash equivalents Beginning of the period 121,095 158,092 225,477 End of the period $ 138,610 $ 138,610 $ 158,092 MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS (In thousands of U.S. dollars) (Unaudited) Three Months Ended Year Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Operating loss $ (15,745 ) $ (11,003 ) $ (15,935 ) $ (53,031 ) $ (57,644 ) Adjustments: Equity-based compensation expense 2,121 1,977 1,840 6,214 7,223 Impairment and other charges 6,654 — — 6,654 802 Early termination charges — — — — 8,449 Adjusted Operating Loss $ (6,970 ) $ (9,026 ) $ (14,095 ) $ (40,163 ) $ (41,170 ) We present Adjusted Operating Loss as a supplemental measure of our performance. We define Adjusted Operating Loss for the periods indicated as operating loss adjusted to exclude (i) Equity-based compensation expense, (ii) Impairment and other charges and (iii) Early termination charges. For the year ended December 31, 2024, we recorded in our consolidated statement of operations $4,637 thousand of impairment loss primarily related to the tangible assets associated with our Display business. During the same period, we also recorded $2,017 thousand of one-time cumulative financial impact in connection with certain employee benefits. For the year ended December 31, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives. MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) (In thousands of U.S. dollars, except share data) (Unaudited) Three Months Ended Year Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net loss $ (16,277 ) $ (9,617 ) $ (6,040 ) $ (54,308 ) $ (36,622 ) Adjustments: Interest income (2,279 ) (2,051 ) (2,519 ) (8,771 ) (10,435 ) Interest expense 603 574 183 1,969 828 Income tax expense (benefit), net (10,835 ) 5,126 (2,360 ) (8,335 ) (10,937 ) Depreciation and amortization 3,990 4,056 4,101 16,161 16,684 EBITDA (24,798 ) (1,912 ) (6,635 ) (53,284 ) (40,482 ) Equity-based compensation expense 2,121 1,977 1,840 6,214 7,223 Foreign currency loss (gain), net 13,407 (5,066 ) (5,241 ) 16,899 (465 ) Derivative valuation loss (gain), net (19 ) 52 64 (77 ) 299 Impairment and other charges 6,654 — — 6,654 802 Early termination charges — — — — 8,449 Adjusted EBITDA $ (2,635 ) $ (4,949 ) $ (9,972 ) $ (23,594 ) $ (24,174 ) Net loss $ (16,277 ) $ (9,617 ) $ (6,040 ) $ (54,308 ) $ (36,622 ) Adjustments: Equity-based compensation expense 2,121 1,977 1,840 6,214 7,223 Foreign currency loss (gain), net 13,407 (5,066 ) (5,241 ) 16,899 (465 ) Derivative valuation loss (gain), net (19 ) 52 64 (77 ) 299 Impairment and other charges 6,654 — — 6,654 802 Early termination charges — — — — 8,449 Income tax effect on non-GAAP adjustments (3,249 ) (143 ) 1,333 (4,560 ) (2,160 ) Adjusted Net Income (Loss) $ 2,637 $ (12,797 ) $ (8,044 ) $ (29,178 ) $ (22,474 ) Adjusted Net Income (Loss) per common share— - Basic $ 0.07 $ (0.34 ) $ (0.21 ) $ (0.77 ) $ (0.55 ) - Diluted $ 0.07 $ (0.34 ) $ (0.21 ) $ (0.77 ) $ (0.55 ) Weighted average number of shares – basic 36,921,300 37,468,849 38,834,451 37,774,280 41,013,069 Weighted average number of shares – diluted 37,738,210 37,468,849 38,834,451 37,774,280 41,013,069 We present Adjusted EBITDA and Adjusted Net Income (Loss) as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Impairment and other charges and (v) Early termination charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit), net and depreciation and amortization. We prepare Adjusted Net Income (Loss) by adjusting net loss to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income (Loss) is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income (Loss) for the periods as net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Impairment and other charges, (v) Early termination charges and (vi) Income tax effect on non-GAAP adjustments. For the year ended December 31, 2024, we recorded in our consolidated statement of operations $4,637 thousand of impairment loss primarily related to the tangible assets associated with our Display business. During the same period, we also recorded $2,017 thousand of one-time cumulative financial impact in connection with certain employee benefits. For the year ended December 31, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives. View source version on businesswire.com: https://www.businesswire.com/news/home/20250312544285/en/ Contacts Steven C. Pelayo, CFA The Blueshirt Group Tel. +1 (360) 808-5154 steven@blueshirtgroup.co View Comments Terms and Privacy Policy Privacy Dashboard More Info Recommended Stories
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