MagnaChip Semiconductor Corporation (MX) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $49.79 million, or $ 1.42 a share in the quarter, against a net profit of $22.85 million, or $0.66 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1.58 million, or $0.04 a share compared with $5.22 million or $0.15 a share, a year ago.
Revenue during the quarter grew 18.39 percent to $180.46 million from $152.43 million in the previous year period. Gross margin for the quarter expanded 592 basis points over the previous year period to 25.54 percent. Operating margin for the quarter period stood at positive 2.90 percent as compared to a negative 5.01 percent for the previous year period.
Operating income for the quarter was $5.23 million, compared with an operating loss of $7.63 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.10 million compared to negative $1.20 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 7.81 percent for the quarter compared to negative 0.79 percent in the last year period.
"The financial results in the fourth quarter of 2016 and the full year continue to reflect the operational progress we've made in our business turnaround," said YJ Kim, chief executive officer of MagnaChip. "Our key priorities in 2017 include a plan to achieve higher gross profit margin, improve overall profitability and invest in initiatives to fuel long-term growth."
For the first-quarter 2017, MagnaChip Semiconductor Corporation projects revenue to be in the range of $157 million to $163 million.
Operating cash flow turns positive
MagnaChip Semiconductor Corporation has generated cash of $7.63 million from operating activities during the year as against cash outgo of $9.98 million in the last year.
The company has spent $15.87 million cash to meet investing activities during the year as against cash outgo of $3.39 million in the last year.
Cash flow from financing activities was $1.73 million for the year, down 49.59 percent or $1.70 million, when compared with the last year.
Cash and cash equivalents stood at $83.36 million as on Dec. 31, 2016, down 8.28 percent or $7.53 million from $90.88 million on Dec. 31, 2015.
Working capital decreases marginally
MagnaChip Semiconductor Corporation has witnessed a decline in the working capital over the last year. It stood at $89.25 million as at Dec. 31, 2016, down 4.77 percent or $4.47 million from $93.72 million on Dec. 31, 2015. Current ratio was at 1.58 as on Dec. 31, 2016, up from 1.56 on Dec. 31, 2015.
Debt remains almost stable
Total debt of MagnaChip Semiconductor Corporation remained almost stable for the quarter at $221.08 million, when compared with the last year period. Long-term debt of MagnaChip Semiconductor Corporation remained almost stable for the quarter at $221.08 million, when compared with the last year period. Total debt was 50.02 percent of total assets as on Dec. 31, 2016, compared with 46.12 percent on Dec. 31, 2015.
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