Magnachip Semiconductor Corporation (MX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $29.87 million, or $ 0.85 a share in the quarter, against a net loss of $57.07 million, or $1.65 a share in the last year period. On the other hand, adjusted net loss for the quarter narrowed to $1.34 million, or $0.04 a share from a loss of $10.37 million or $0.30 a share, a year ago.
Revenue during the quarter grew 24.56 percent to $192.30 million from $154.38 million in the previous year period. Gross margin for the quarter contracted 212 basis points over the previous year period to 20.35 percent. Operating margin for the quarter period stood at positive 0.32 percent as compared to a negative 5.09 percent for the previous year period.
Operating income for the quarter was $0.62 million, compared with an operating loss of $7.86 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.96 million compared with $1.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 434 basis points in the quarter to 5.18 percent from 0.84 percent in the last year period.
In commenting on the third quarter, chief financial officer Jonathan Kim said, "We continued to execute on our strategy to increase fab utilization in order to reduce unit costs and prudently manage cash flows." Mr. Kim added, "We now are implementing a comprehensive plan to improve gross profit margin."
For the fourth-quarter, Magnachip Semiconductor Corporation projects revenue to be in the range of $174 million to $180 million.
Operating cash flow remains negativeMagnachip Semiconductor Corporation has spent $13.93 million cash to meet operating activities during the nine month period as against cash outgo of $48.44 million in the last year period. The company has spent $7.79 million cash to meet investing activities during the nine month period as against cash outgo of $9.81 million in the last year period.
Cash flow from financing activities was $1.50 million for the nine month period, down 56.26 percent or $1.93 million, when compared with the last year period.
Cash and cash equivalents stood at $75.43 million as on Sep. 30, 2016, up 10.10 percent or $6.92 million from $68.51 million on Sep. 30, 2015.
Working capital increases
Magnachip Semiconductor Corporation has recorded an increase in the working capital over the last year. It stood at $92.08 million as at Sep. 30, 2016, up 14.66 percent or $11.77 million from $80.31 million on Sep. 30, 2015. Current ratio was at 1.60 as on Sep. 30, 2016, down from 1.60 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 16 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 35 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went down to 40 days for the quarter from 48 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 $220.90 million as on Sep. 30, 2016, down 1.44 percent or $3.22 million from $224.12 million on Sep. 30, 2015. Magnachip Semiconductor Corp has recorded a decline in long-term debt over the last one year. It stood at $220.90 million as on Sep. 30, 2016, down 1.44 percent or $3.22 million from $224.12 million on Sep. 30, 2015. Total debt was 47.67 percent of total assets as on Sep. 30, 2016, compared with 52.07 percent on Sep. 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: editor@irisindia.net
