Magnachip Semiconductor Corporation (NYSE:MX) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET

Company Participants

Yujia Zhai – The Blueshirt Group

YJ Kim – Chief Executive Officer

Shinyoung Park – Chief Financial Officer

Conference Call Participants

Martin Yang – Oppenheimer

Nick Doyle – Needham

Operator

Good day and welcome to Magnachip's Fourth Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Instructions will be given at that time. As a reminder this call is being recorded.

I would now like to turn the call over to Yujia Zhai, IR representative for Magnachip. You may begin.

Yujia Zhai

Good afternoon everyone. Thank you for joining us to discuss Magnachip's financial results for the fourth quarter ended December 31, 2022. The fourth quarter earnings release that was just issued today after the stock market closed can be found on the Company's Investor Relations website. The webcast replay of today’s call will be archived on our website shortly afterwards. Joining me today are YJ Kim, Magnachip’s Chief Executive Officer; and Shinyoung Park, our Chief Financial Officer. YJ will discuss the Company’s recent operating performance and business overview, and Shinyoung will review financial results for the quarter and provide guidance for the first quarter of 2023. There will be a Q&A session following the prepared remarks.

During the course of this conference call, we may make forward-looking statements about Magnachip’s business outlook and expectations. Our forward-looking statements, and all other statements that are not historical facts, reflect our beliefs and predictions as of today and therefore are subject to risks and uncertainties as described in the Safe Harbor statement found in our SEC filings. During the call we also will discuss non-GAAP financial measures. The non-GAAP measures are not prepared in accordance with generally accepted accounting principles but are intended to illustrate an alternative measure of Magnachip’s operating performance that may be useful. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in our fourth quarter earnings release available on our website under the Investors Relations section at www.magnachip.com.

I now will turn the call over to YJ Kim. YJ?

YJ Kim

Hello everyone, thank you for joining us today and welcome to Magnachip’s Q4 2022 earnings call. I will begin today’s call with a summary of our Q4 results as well as our performance for the full year 2022. After that, I will provide a detailed update on each of our business segments before turning the call over to Shinyoung to go over our financials in more detail and provide guidance for Q1 2023. Starting with Q4 results. Revenue was $61 million, near the high-end of our guidance range. Nevertheless, Q4 revenue was lower by 44.7% year-over-year and 14.3% sequentially. Gross profit margin was 26.4%, within our guidance range.