Magnachip Semiconductor Corporation (MX) saw its loss narrow to $17.82 million, or $0.51 a share for the quarter ended Jun. 30, 2016. In the previous year period, the company reported a loss of $30.63 million, or $0.90 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.89 million, or $0.05 a share from a loss of $11.06 million or $0.32 a share, a year ago.
Revenue during the quarter grew 3.14 percent to $167.11 million from $162.02 million in the previous year period. Gross margin for the quarter expanded 21 basis points over the previous year period to 21.99 percent. Operating margin for the quarter stood at negative 4.41 percent as compared to a negative 9.40 percent for the previous year period.
Operating loss for the quarter was $7.38 million, compared with an operating loss of $15.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.61 million compared to negative $0.94 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 5.15 percent for the quarter compared to negative 0.58 percent in the last year period.
"Our revenue in the second quarter exceeded expectations and was at the highest level since the fourth quarter of 2014," said YJ Kim, chief executive officer of MagnaChip. "Customer demand was strong, especially for AMOLED display driver ICs, as well as for our specialized foundry services." Mr. Kim added, "Our results in the second quarter reflect the success of our strategy over the last two years to streamline the organization, expand our customer base, improve product execution, and leverage our strong position as a leading supplier of analog and mixed signal products and services."
For the third-quarter, Magnachip Semiconductor Corp forecasts revenue to be in the range of $180 million to $185 million.
Operating cash flow remains negativeMagnachip Semiconductor Corporation has spent $8.69 million cash to meet operating activities during the first half as against cash outgo of $27.47 million in the last year period. The company has spent $0.01 million cash to meet investing activities during the first six months as against cash outgo of $9.19 million in the last year period.
Cash and cash equivalents stood at $83.91 million as on Jun. 30, 2016, up 15.47 percent or $11.24 million from $72.67 million on Jun. 30, 2015.
Working capital decreases marginally
Magnachip Semiconductor Corporation has witnessed a decline in the working capital over the last year. It stood at $88.67 million as at Jun. 30, 2016, down 1.47 percent or $1.32 million from $89.99 million on Jun. 30, 2015. Current ratio was at 1.52 as on Jun. 30, 2016, down from 1.61 on Jun. 30, 2015.
Cash conversion cycle (CCC) has decreased to 33 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 32 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went down to 49 days for the quarter from 54 for the same period last year.
Debt comes down marginallyMagnachip Semiconductor Corporation has recorded a decline in total debt over the last one year. It stood at $220.72 million as on Jun. 30, 2016, down 1.51 percent or $3.37 million from $224.10 million on Jun. 30, 2015. Magnachip Semiconductor Corp has recorded a decline in long-term debt over the last one year. It stood at $220.72 million as on Jun. 30, 2016, down 1.51 percent or $3.37 million from $224.10 million on Jun. 30, 2015. Total debt was 47.40 percent of total assets as on Jun. 30, 2016, compared with 47.43 percent on Jun. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]