☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 83-0406195 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | MX | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page No. | |||||||||
3 | |||||||||
Item 1. | 3 | ||||||||
3 | |||||||||
4 | |||||||||
5 | |||||||||
6 | |||||||||
7 | |||||||||
8 | |||||||||
Item 2. | |||||||||
Item 3. | 52 | ||||||||
Item 4. | |||||||||
54 | |||||||||
Item | 54 | ||||||||
Item 1A. | 54 | ||||||||
Item 6. | 56 | ||||||||
57 | |||||||||
Item 1. | Interim Consolidated Financial Statements (Unaudited) |
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
(In thousands of U.S. dollars,except share data) | (In thousands of U.S. dollars, except share data) | |||||||||||||||
Assets | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | $ | 542,111 | $ | 151,657 | $ | 271,880 | $ | 279,940 | ||||||||
Accounts receivable, net | 57,772 | 47,447 | 56,730 | 64,390 | ||||||||||||
Inventories, net | 33,631 | 41,404 | 41,369 | 39,039 | ||||||||||||
Other receivables | 4,551 | 10,200 | 9,173 | 4,338 | ||||||||||||
Prepaid expenses | 8,265 | 9,003 | 6,836 | 7,332 | ||||||||||||
Hedge collateral (Note 9) | 9,650 | 9,820 | 4,830 | 5,250 | ||||||||||||
Other current assets (Notes 10 and 18) | 8,338 | 10,013 | ||||||||||||||
Current assets held for sale (Note 2) | — | 99,821 | ||||||||||||||
Other current assets (Notes 10 and 19) | 5,117 | 9,321 | ||||||||||||||
Total current assets | 664,318 | 379,365 | 395,935 | 409,610 | ||||||||||||
Property, plant and equipment, net | 77,489 | 73,068 | 94,721 | 96,383 | ||||||||||||
Operating lease right-of-use | 2,032 | 1,876 | 4,520 | 4,632 | ||||||||||||
Intangible assets, net | 2,877 | 2,769 | 2,541 | 2,727 | ||||||||||||
Long-term prepaid expenses | 2,138 | 5,757 | 5,626 | 4,058 | ||||||||||||
Deferred income taxes | 43,069 | 44,541 | ||||||||||||||
Other non-current assets | 8,598 | 9,059 | 11,141 | 9,739 | ||||||||||||
Non-current assets held for sale (Note 2) | — | 123,434 | ||||||||||||||
Total assets | $ | 757,452 | $ | 595,328 | $ | 557,553 | $ | 571,690 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable | $ | 40,497 | $ | 40,376 | $ | 52,040 | $ | 52,164 | ||||||||
Other accounts payable | 7,639 | 6,410 | 9,119 | 2,531 | ||||||||||||
Accrued expenses (Note 8) | 41,630 | 44,799 | 13,020 | 16,241 | ||||||||||||
Accrued income taxes | 14,038 | 1,569 | 1,679 | 12,398 | ||||||||||||
Operating lease liabilities | 1,390 | 1,625 | 2,181 | 2,210 | ||||||||||||
Current portion of long-term borrowings, net | 306,567 | — | — | 83,479 | ||||||||||||
Other current liabilities (Note 10) | 7,652 | 2,014 | 5,001 | 4,595 | ||||||||||||
Current liabilities held for sale (Note 2) | — | 37,040 | ||||||||||||||
Total current liabilities | 419,413 | 133,833 | 83,040 | 173,618 | ||||||||||||
Long-term borrowings, net | — | 304,743 | ||||||||||||||
Accrued severance benefits, net | 51,953 | 51,181 | 39,520 | 40,462 | ||||||||||||
Non-current operating lease liabilities | 2,338 | 2,422 | ||||||||||||||
Other non-current liabilities | 7,782 | 9,671 | 10,024 | 9,588 | ||||||||||||
Non-current liabilities held for sale (Note 2) | — | 110,881 | ||||||||||||||
Total liabilities | 479,148 | 610,309 | 134,922 | 226,090 | ||||||||||||
Commitments and contingencies (Note 18) | ||||||||||||||||
Commitments and contingencies (Note 19) | 0 | 0 | ||||||||||||||
Stockholders’ equity | ||||||||||||||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 44,595,393 shares issued and 35,489,720 outstanding at September 30, 2020 and 43,851,991 shares issued and 34,800,312 outstanding at December 31, 2019 | 447 | 439 | ||||||||||||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 55,562,907 shares issued and 46,350,945 outstanding at June 30, 2021 and 44,943,854 shares issued and 35,783,347 outstanding at December 31, 2020 | 556 | 450 | ||||||||||||||
Additional paid-in capital | 159,840 | 152,404 | 253,244 | 163,010 | ||||||||||||
Retained earnings (deficit) | 220,253 | (58,131 | ) | |||||||||||||
Treasury stock, 9,105,673 shares at September 30, 2020 and 9,051,679 shares at December 31, 2019, respectively | (107,649 | ) | (107,033 | ) | ||||||||||||
Retained earnings | 279,163 | 286,834 | ||||||||||||||
Treasury stock, 9,211,962 shares at June 30, 2021 and 9,160,507 shares at December 31, 2020, respectively | (109,407 | ) | (108,397 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | 5,413 | (2,660 | ) | (925 | ) | 3,703 | ||||||||||
Total stockholders’ equity (deficit) | 278,304 | (14,981 | ) | |||||||||||||
Total stockholders’ equity | 422,631 | 345,600 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 757,452 | $ | 595,328 | $ | 557,553 | $ | 571,690 | ||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
(In thousands of U.S. dollars, except share data) | (In thousands of U.S. dollars, except share data) | |||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Net sales – standard products business | $ | 116,262 | $ | 139,273 | $ | 335,953 | $ | 371,543 | $ | 103,268 | $ | 108,955 | $ | 216,174 | $ | 219,691 | ||||||||||||||||
Net sales – transitional Fab 3 foundry services | 8,551 | 9,894 | 28,161 | 25,776 | 10,608 | 9,873 | 20,721 | 19,610 | ||||||||||||||||||||||||
Total revenues | 124,813 | 149,167 | 364,114 | 397,319 | 113,876 | 118,828 | 236,895 | 239,301 | ||||||||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||||||||
Cost of sales – standard products business | 87,494 | 104,018 | 245,917 | 285,643 | 70,409 | 76,817 | 149,656 | 158,423 | ||||||||||||||||||||||||
Cost of sales – transitional Fab 3 foundry services | 8,731 | 9,894 | 28,341 | 25,776 | 9,497 | 9,873 | 18,887 | 19,610 | ||||||||||||||||||||||||
Total cost of sales | 96,225 | 113,912 | 274,258 | 311,419 | 79,906 | 86,690 | 168,543 | 178,033 | ||||||||||||||||||||||||
Gross profit | 28,588 | 35,255 | 89,856 | 85,900 | 33,970 | 32,138 | 68,352 | 61,268 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 12,888 | 10,686 | 37,398 | 33,817 | 14,001 | 12,408 | 26,635 | 24,510 | ||||||||||||||||||||||||
Research and development expenses | 12,477 | 10,233 | 34,094 | 34,049 | 13,322 | 11,108 | 26,745 | 21,617 | ||||||||||||||||||||||||
Other charges | — | — | 554 | — | 5,020 | — | 15,436 | 554 | ||||||||||||||||||||||||
Total operating expenses | 25,365 | 20,919 | 72,046 | 67,866 | 32,343 | 23,516 | 68,816 | 46,681 | ||||||||||||||||||||||||
Operating income | 3,223 | 14,336 | 17,810 | 18,034 | ||||||||||||||||||||||||||||
Operating income ( loss) | 1,627 | 8,622 | (464 | ) | 14,587 | |||||||||||||||||||||||||||
Interest expense | (5,485 | ) | (5,539 | ) | (16,522 | ) | (16,615 | ) | (85 | ) | (5,430 | ) | (1,126 | ) | (11,037 | ) | ||||||||||||||||
Foreign currency gain (loss), net | 8,864 | (21,985 | ) | (13,638 | ) | (44,166 | ) | 250 | 8,469 | (4,421 | ) | (22,502 | ) | |||||||||||||||||||
Loss on early extinguishment of long-term borrowings, net | — | — | — | (42 | ) | |||||||||||||||||||||||||||
Other income, net | 714 | 678 | 2,343 | 1,816 | 611 | 791 | 1,231 | 1,629 | ||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense | 7,316 | (12,510 | ) | (10,007 | ) | (40,973 | ) | 2,403 | 12,452 | (4,780 | ) | (17,323 | ) | |||||||||||||||||||
Income tax expense (benefit) | (1,145 | ) | 1,734 | 836 | 3,316 | |||||||||||||||||||||||||||
Income tax expense | 2,601 | 678 | 2,891 | 1,981 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations | 8,461 | (14,244 | ) | (10,843 | ) | (44,289 | ) | (198 | ) | 11,774 | (7,671 | ) | (19,304 | ) | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 264,501 | 12,637 | 289,227 | (963 | ) | |||||||||||||||||||||||||||
Income from discontinued operations, net of tax | — | 17,397 | — | 24,726 | ||||||||||||||||||||||||||||
Net income (loss) | $ | 272,962 | $ | (1,607 | ) | $ | 278,384 | $ | (45,252 | ) | $ | (198 | ) | $ | 29,171 | $ | (7,671 | ) | $ | 5,422 | ||||||||||||
Basic earnings (loss) per common share— | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.24 | $ | (0.41 | ) | $ | (0.31 | ) | $ | (1.29 | ) | $ | (0.00 | ) | $ | 0.34 | $ | (0.18 | ) | $ | (0.55 | ) | ||||||||||
Discontinued operations | 7.50 | 0.36 | 8.24 | (0.03 | ) | — | 0.50 | — | 0.71 | |||||||||||||||||||||||
Total | $ | 7.74 | $ | (0.05 | ) | $ | 7.93 | $ | (1.32 | ) | $ | (0.00 | ) | $ | 0.84 | $ | (0.18 | ) | $ | 0.16 | ||||||||||||
Diluted earnings (loss) per common share— | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.21 | $ | (0.41 | ) | $ | (0.31 | ) | $ | (1.29 | ) | $ | (0.00 | ) | $ | 0.28 | $ | (0.18 | ) | $ | (0.55 | ) | ||||||||||
Discontinued operations | 5.68 | 0.36 | 8.24 | (0.03 | ) | — | 0.37 | — | 0.71 | |||||||||||||||||||||||
Total | $ | 5.89 | $ | (0.05 | ) | $ | 7.93 | $ | (1.32 | ) | $ | (0.00 | ) | $ | 0.65 | $ | (0.18 | ) | $ | 0.16 | ||||||||||||
Weighted average number of shares— | ||||||||||||||||||||||||||||||||
Basic | 35,280,864 | 34,357,745 | 35,089,479 | 34,266,513 | 46,322,027 | 35,092,312 | 43,324,088 | 34,992,734 | ||||||||||||||||||||||||
Diluted | 46,581,788 | 34,357,745 | 35,089,479 | 34,266,513 | 46,322,027 | 46,474,237 | 43,324,088 | 34,992,734 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | (In thousands of U.S. dollars) | |||||||||||||||||||||||||||||||
Net income (loss) | $ | 272,962 | $ | (1,607 | ) | $ | 278,384 | $ | (45,252 | ) | $ | (198 | ) | $ | 29,171 | $ | (7,671 | ) | $ | 5,422 | ||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (6,517 | ) | 15,931 | 9,191 | 30,915 | 109 | (6,543 | ) | (1,949 | ) | 15,708 | |||||||||||||||||||||
Derivative adjustments | ||||||||||||||||||||||||||||||||
Fair valuation of derivatives | 1,390 | (2,803 | ) | (1,410 | ) | (5,703 | ) | 432 | 2,204 | (1,693 | ) | (2,800 | ) | |||||||||||||||||||
Reclassification adjustment for loss on derivatives included in net income (loss) | 41 | 1,600 | 292 | 3,553 | ||||||||||||||||||||||||||||
Reclassification adjustment for loss (gain) on derivatives included in net income (loss) | (475 | ) | 193 | (986 | ) | 251 | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | (5,086 | ) | 14,728 | 8,073 | 28,765 | 66 | (4,146 | ) | (4,628 | ) | 13,159 | |||||||||||||||||||||
Total comprehensive income (loss) | $ | 267,876 | $ | 13,121 | $ | 286,457 | $ | (16,487 | ) | $ | (132 | ) | $ | 25,025 | $ | (12,299 | ) | $ | 18,581 | |||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||
(In thousands of U.S. dollars, except share data) | Shares | Amount | ||||||||||||||||||||||||||
Three Months Ended June 30, 2021: | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | 46,257,413 | $ | 555 | $ | 250,829 | $ | 279,361 | $ | (109,407 | ) | $ | (991 | ) | $ | 420,347 | |||||||||||||
Stock-based compensation | — | — | 2,405 | — | — | — | 2,405 | |||||||||||||||||||||
Exercise of stock options | 1,000 | 0 | 11 | — | — | — | 11 | |||||||||||||||||||||
Settlement of restricted stock units | 92,532 | 1 | (1 | ) | — | — | — | — | ||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 66 | 66 | |||||||||||||||||||||
Net loss | — | — | — | (198 | ) | — | — | (198 | ) | |||||||||||||||||||
Balance at June 30, 2021 | 46,350,945 | $ | 556 | $ | 253,244 | $ | 279,163 | $ | (109,407 | ) | $ | (925 | ) | $ | 422,631 | |||||||||||||
Three Months Ended June 30, 2020: | ||||||||||||||||||||||||||||
Balance at March 31, 2020 | 35,054,682 | $ | 442 | $ | 153,286 | $ | (81,880 | ) | $ | (107,649 | ) | $ | 14,645 | $ | (21,156 | ) | ||||||||||||
Stock-based compensation | — | — | 1,643 | — | — | — | 1,643 | |||||||||||||||||||||
Exercise of stock options | 88,351 | 1 | 662 | — | — | — | 663 | |||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (4,146 | ) | (4,146 | ) | |||||||||||||||||||
Net income | — | — | — | 29,171 | — | — | 29,171 | |||||||||||||||||||||
Balance at June 30, 2020 | 35,143,033 | $ | 443 | $ | 155,591 | $ | (52,709 | ) | $ | (107,649 | ) | $ | 10,499 | $ | 6,175 | |||||||||||||
Common Stock | Additional Paid-In | Retained Earnings | Treasury | Accumulated Other Comprehensive | ||||||||||||||||||||||||
(In thousands of U.S. dollars, except share data) | Shares | Amount | Capital | (Deficit) | Stock | Income (Loss) | Total | |||||||||||||||||||||
Three Months Ended September 30, 2020: | ||||||||||||||||||||||||||||
Balance at June 30, 2020 | 35,143,033 | $ | 443 | $ | 155,591 | $ | (52,709 | ) | $ | (107,649 | ) | $ | 10,499 | $ | 6,175 | |||||||||||||
Stock-based compensation | — | — | 2,226 | — | — | — | 2,226 | |||||||||||||||||||||
Exercise of stock options | 287,292 | 3 | 2,024 | — | — | — | 2,027 | |||||||||||||||||||||
Settlement of restricted stock units | 59,395 | 1 | (1 | ) | — | — | — | — | ||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (5,086 | ) | (5,086 | ) | |||||||||||||||||||
Net income | — | — | — | 272,962 | — | — | 272,962 | |||||||||||||||||||||
Balance at September 30, 2020 | 35,489,720 | $ | 447 | $ | 159,840 | $ | 220,253 | $ | (107,649 | ) | $ | 5,413 | $ | 278,304 | ||||||||||||||
Three Months Ended September 30, 2019: | ||||||||||||||||||||||||||||
Balance at June 30, 2019 | 34,240,181 | $ | 433 | $ | 144,188 | $ | (79,950 | ) | $ | (106,514 | ) | $ | (6,073 | ) | $ | (47,916 | ) | |||||||||||
Stock-based compensation | — | — | 479 | — | — | — | 479 | |||||||||||||||||||||
Exercise of stock options | 129,409 | 1 | 888 | — | — | — | 889 | |||||||||||||||||||||
Settlement of restricted stock units | 1,099 | 0 | (0 | ) | — | — | — | — | ||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 14,728 | 14,728 | |||||||||||||||||||||
Net loss | — | — | — | (1,607 | ) | — | — | (1,607 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 34,370,689 | $ | 434 | $ | 145,555 | $ | (81,557 | ) | $ | (106,514 | ) | $ | 8,655 | $ | (33,427 | ) | ||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||
(In thousands of U.S. dollars, except share data) | Shares | Amount | ||||||||||||||||||||||||||
Six Months Ended June 30, 2021: | ||||||||||||||||||||||||||||
Balance at December 31, 2020 | 35,783,347 | $ | 450 | $ | 163,010 | $ | 286,834 | $ | (108,397 | ) | $ | 3,703 | $ | 345,600 | ||||||||||||||
Stock-based compensation | — | — | 4,051 | — | — | — | 4,051 | |||||||||||||||||||||
Exchange of exchangeable senior notes | 10,144,131 | 101 | 83,639 | 83,740 | ||||||||||||||||||||||||
Exercise of stock options | 176,760 | 2 | 2,547 | — | — | — | 2,549 | |||||||||||||||||||||
Settlement of restricted stock units | 298,162 | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (51,455 | ) | — | — | — | (1,010 | ) | — | (1,010 | ) | ||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (4,628 | ) | (4,628 | ) | |||||||||||||||||||
Net loss | — | — | — | (7,671 | ) | — | — | (7,671 | ) | |||||||||||||||||||
Balance at June 30, 2021 | 46,350,945 | $ | 556 | $ | 253,244 | $ | 279,163 | $ | (109,407 | ) | $ | (925 | ) | $ | 422,631 | |||||||||||||
Six Months Ended June 30, 2020: | ||||||||||||||||||||||||||||
Balance at December 31, 2019 | 34,800,312 | $ | 439 | $ | 152,404 | $ | (58,131 | ) | $ | (107,033 | ) | $ | (2,660 | ) | $ | (14,981 | ) | |||||||||||
Stock-based compensation | — | — | 2,528 | — | — | — | 2,528 | |||||||||||||||||||||
Exercise of stock options | 88,351 | 1 | 662 | — | — | — | 663 | |||||||||||||||||||||
Settlement of restricted stock units | 308,364 | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (53,994 | ) | — | — | — | (616 | ) | — | (616 | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 13,159 | 13,159 | |||||||||||||||||||||
Net income | — | — | — | 5,422 | — | — | 5,422 | |||||||||||||||||||||
Balance at June 30, 2020 | 35,143,033 | $ | 443 | $ | 155,591 | $ | (52,709 | ) | $ | (107,649 | ) | $ | 10,499 | $ | 6,175 | |||||||||||||
Common Stock | Additional Paid-In | Retained Earnings | Treasury | Accumulated Other Comprehensive | Total | |||||||||||||||||||||||
(In thousands of U.S. dollars, except share data) | Shares | Amount | Capital | (Deficit) | Stock | Income (Loss) | ||||||||||||||||||||||
Nine Months Ended September 30, 2020: | ||||||||||||||||||||||||||||
Balance at December 31, 2019 | 34,800,312 | $ | 439 | $ | 152,404 | $ | (58,131 | ) | $ | (107,033 | ) | $ | (2,660 | ) | $ | (14,981 | ) | |||||||||||
Stock-based compensation | — | — | 4,754 | — | — | — | 4,754 | |||||||||||||||||||||
Exercise of stock options | 375,643 | 4 | 2,686 | — | — | — | 2,690 | |||||||||||||||||||||
Settlement of restricted stock units | 367,759 | 4 | (4 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (53,994 | ) | — | — | — | (616 | ) | — | (616 | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 8,073 | 8,073 | |||||||||||||||||||||
Net income | — | — | — | 278,384 | — | — | 278,384 | |||||||||||||||||||||
Balance at September 30, 2020 | 35,489,720 | $ | 447 | $ | 159,840 | $ | 220,253 | $ | (107,649 | ) | $ | 5,413 | $ | 278,304 | ||||||||||||||
Nine Months Ended September 30, 2019: | ||||||||||||||||||||||||||||
Balance at December 31, 2018 | 34,441,232 | $ | 431 | $ | 142,600 | $ | (36,305 | ) | $ | (103,926 | ) | $ | (20,110 | ) | $ | (17,310 | ) | |||||||||||
Stock-based compensation | — | — | 1,920 | — | — | — | 1,920 | |||||||||||||||||||||
Exercise of stock options | 153,967 | 1 | 1,037 | — | — | — | 1,038 | |||||||||||||||||||||
Settlement of restricted stock units | 169,592 | 2 | (2 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (394,102 | ) | — | — | — | (2,588 | ) | — | (2,588 | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 28,765 | 28,765 | |||||||||||||||||||||
Net loss | — | — | — | (45,252 | ) | — | — | (45,252 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 34,370,689 | $ | 434 | $ | 145,555 | $ | (81,557 | ) | $ | (106,514 | ) | $ | 8,655 | $ | (33,427 | ) | ||||||||||||
Nine Months Ended | Six Months Ended | |||||||||||||||
September 30, 2020 | September 30, 2019 | June 30, 2021 | June 30, 2020 | |||||||||||||
(In thousands of U.S. dollars) | (In thousands of U.S. dollars) | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income (loss) | $ | 278,384 | $ | (45,252 | ) | $ | (7,671 | ) | $ | 5,422 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||||||||||
Depreciation and amortization | 13,333 | 24,661 | 6,998 | 10,479 | ||||||||||||
Provision for severance benefits | 14,150 | 10,491 | 3,507 | 10,179 | ||||||||||||
Amortization of debt issuance costs and original issue discount | 1,824 | 1,712 | 261 | 1,205 | ||||||||||||
Loss on foreign currency, net | 6,609 | 50,512 | 13,353 | 26,397 | ||||||||||||
Restructuring and other charges | 490 | 470 | 3,295 | 141 | ||||||||||||
Provision for inventory reserves | 4,079 | 9,255 | 3,346 | 2,033 | ||||||||||||
Stock-based compensation | 4,754 | 1,920 | 4,051 | 2,528 | ||||||||||||
Loss on early extinguishment of long-term borrowings, net | — | 42 | ||||||||||||||
Gain on sale of discontinued operations | (287,117 | ) | — | |||||||||||||
Others, net | 85 | 61 | ||||||||||||||
Other, net | 266 | (111 | ) | |||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable, net | (16,583 | ) | (32,812 | ) | 5,098 | (438 | ) | |||||||||
Unbilled accounts receivable, net | 14,260 | 14,208 | — | 10,933 | ||||||||||||
Inventories | 1,390 | (15,576 | ) | (7,170 | ) | (14,060 | ) | |||||||||
Other receivables | 6,111 | (4,814 | ) | (4,841 | ) | 67 | ||||||||||
Other current assets | 9,143 | 6,356 | 8,623 | 4,747 | ||||||||||||
Accounts payable | (5,156 | ) | 27,585 | 1,040 | 4,947 | |||||||||||
Other accounts payable | (8,034 | ) | (10,074 | ) | (2,287 | ) | (5,898 | ) | ||||||||
Accrued expenses | 1,991 | 3,831 | (3,980 | ) | 161 | |||||||||||
Accrued income taxes | 12,546 | (583 | ) | (10,249 | ) | 349 | ||||||||||
Other current liabilities | 2,243 | (5,766 | ) | (102 | ) | 871 | ||||||||||
Other non-current liabilities | 2,868 | 808 | (274 | ) | 1,238 | |||||||||||
Payment of severance benefits | (5,888 | ) | (6,195 | ) | (2,836 | ) | (4,272 | ) | ||||||||
Others, net | 59 | (821 | ) | |||||||||||||
Other, net | (62 | ) | 147 | |||||||||||||
Net cash provided by operating activities | 51,541 | 30,019 | 10,366 | 57,065 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Proceeds from settlement of hedge collateral | 8,029 | 12,625 | 972 | 5,855 | ||||||||||||
Payment of hedge collateral | (7,841 | ) | (17,024 | ) | (585 | ) | (7,841 | ) | ||||||||
Purchase of property, plant and equipment | (16,353 | ) | (16,693 | ) | (4,866 | ) | (8,842 | ) | ||||||||
Payment for intellectual property registration | (664 | ) | (907 | ) | (288 | ) | (473 | ) | ||||||||
Collection of guarantee deposits | 891 | 539 | 307 | 47 | ||||||||||||
Payment of guarantee deposits | (611 | ) | (1,330 | ) | (4,960 | ) | (571 | ) | ||||||||
Proceeds from sale of discontinued operations | 350,553 | — | ||||||||||||||
Others, net | 26 | 225 | ||||||||||||||
Other, net | (130 | ) | 21 | |||||||||||||
Net cash provided by (used in) investing activities | 334,030 | (22,565 | ) | |||||||||||||
Net cash used in investing activities | (9,550 | ) | (11,804 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||
Repurchase of long-term borrowings | — | (1,175 | ) | |||||||||||||
Proceeds from exercise of stock options | 2,690 | 1,038 | 2,549 | 663 | ||||||||||||
Acquisition of treasury stock | (1,021 | ) | (2,588 | ) | (1,653 | ) | (1,021 | ) | ||||||||
Repayment of financing related to water treatment facility arrangement | (402 | ) | (415 | ) | (288 | ) | (267 | ) | ||||||||
Repayment of principal portion of finance lease liabilities | (165 | ) | (174 | ) | (33 | ) | (119 | ) | ||||||||
Net cash provided by (used in) financing activities | 1,102 | (3,314 | ) | 575 | (744 | ) | ||||||||||
Effect of exchange rates on cash and cash equivalents | 3,781 | (5,237 | ) | (9,451 | ) | (3,350 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 390,454 | (1,097 | ) | (8,060 | ) | 41,167 | ||||||||||
Cash and cash equivalents | ||||||||||||||||
Beginning of the period | 151,657 | 132,438 | 279,940 | 151,657 | ||||||||||||
End of the period | $ | 542,111 | $ | 131,341 | $ | 271,880 | $ | 192,824 | ||||||||
Supplemental cash flow information | ||||||||||||||||
Cash paid for interest | $ | 19,044 | $ | 19,071 | $ | 2,094 | $ | 9,522 | ||||||||
Cash paid for income taxes | $ | 2,573 | $ | 1,904 | $ | 11,227 | $ | 1,889 | ||||||||
Non-cash investing activities | ||||||||||||||||
Property, plant and equipment additions in other accounts payable | $ | 3,865 | $ | 496 | $ | 3,632 | $ | 602 | ||||||||
Non-cash financing activities | ||||||||||||||||
Exchange of exchangeable senior notes into common stock | $ | 83,740 | $ | — |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | June 30, 2020 | June 30, 2020 | |||||||||||||||||||
(In thousands of U.S. dollars, except share data) | (In thousands of U.S. dollars) | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Net sales – Foundry Services Group | $ | 72,674 | $ | 90,404 | $ | 254,732 | $ | 220,659 | $ | 95,779 | $ | 182,058 | ||||||||||||
Net sales – transitional Fab 3 foundry services | (6,277 | ) | (9,894 | ) | (25,887 | ) | (25,776 | ) | (9,873 | ) | (19,610 | ) | ||||||||||||
Total revenues | 66,397 | 80,510 | 228,845 | 194,883 | 85,906 | 162,448 | ||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||
Cost of sales – Foundry Services Group | 52,420 | 64,793 | 182,872 | 179,152 | 64,869 | 130,452 | ||||||||||||||||||
Cost of sales – transitional Fab 3 foundry services | (6,277 | ) | (9,894 | ) | (25,887 | ) | (25,776 | ) | (9,873 | ) | (19,610 | ) | ||||||||||||
Total cost of sales | 46,143 | 54,899 | 156,985 | 153,376 | 54,996 | 110,842 | ||||||||||||||||||
Gross profit | 20,254 | 25,611 | 71,860 | 41,507 | 30,910 | 51,606 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, general and administrative expenses | 4,068 | 6,126 | 14,704 | 18,040 | 4,992 | 10,636 | ||||||||||||||||||
Research and development expenses | 5,166 | 7,135 | 19,484 | 22,326 | 6,915 | 14,318 | ||||||||||||||||||
Restructuring and other charges | 7,870 | 763 | 10,574 | 4,787 | 589 | 2,704 | ||||||||||||||||||
Total operating expenses | 17,104 | 14,024 | 44,762 | 45,153 | 12,496 | 27,658 | ||||||||||||||||||
Operating income (loss) from discontinued operations | 3,150 | 11,587 | 27,098 | (3,646 | ) | |||||||||||||||||||
Operating income from discontinued operations | 18,414 | 23,948 | ||||||||||||||||||||||
Foreign currency gain (loss), net | (797 | ) | 780 | 1,277 | 2,533 | (23 | ) | 2,074 | ||||||||||||||||
Others, net | 18 | (10 | ) | 66 | (59 | ) | (59 | ) | 48 | |||||||||||||||
Income (loss) from discontinued operations before income tax expense | 2,371 | 12,357 | 28,441 | (1,172 | ) | |||||||||||||||||||
Income tax expense (benefit) | 14,173 | (280 | ) | 15,517 | (209 | ) | ||||||||||||||||||
Gain on sale of discontinued operations | 287,117 | — | 287,117 | — | ||||||||||||||||||||
Income from discontinued operations before income tax expense | 18,332 | 26,070 | ||||||||||||||||||||||
Income tax expense | 935 | 1,344 | ||||||||||||||||||||||
Transaction costs | (10,814 | ) | — | (10,814 | ) | — | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 264,501 | 12,637 | 289,227 | (963 | ) | |||||||||||||||||||
Income from discontinued operations, net of tax | $ | 17,397 | $ | 24,726 | ||||||||||||||||||||
December 31, 2019 | ||||
(In thousands of U.S. dollars) | ||||
Assets | ||||
Current assets | ||||
Accounts receivable, net | $ | 48,194 | ||
Unbilled accounts receivable | 16,463 | |||
Inventories, net | 31,863 | |||
Other current assets | 3,301 | |||
Total current assets held for sal e | $ | 99,821 | ||
Property, plant and equipment, net | 109,506 | |||
Intangible assets, net | 1,245 | |||
Other non-current assets | 12,683 | |||
Total assets held for sale | $ | 223,255 | ||
Liabilities | ||||
Current liabilities | ||||
Accounts payable | $ | 20,503 | ||
Other current liabilities | 16,537 | |||
Total current liabilities held for sale | $ | 37,040 | ||
Accrued severance benefits, net | 95,547 | |||
Other non-current liabilities | 15,334 | |||
Total liabilities held for sale | $ | 147,921 | ||
Nine Months Ended | ||||||||
September 30, 2020 | September 30, 2019 | |||||||
(In thousands of U.S. dollars) | ||||||||
Significant non-cash operating activities: | ||||||||
Depreciation and amortization | $ | 5,365 | $ | 16,958 | ||||
Provision for severance benefits | 8,209 | 5,997 | ||||||
Stock-based compensation | 388 | 259 | ||||||
Investing activities: | ||||||||
Capital expenditures | $ | (5,838 | ) | $ | (9,174 | ) |
Six Months Ended | ||||
June 30, 2020 | ||||
(In thousands of U.S. dollars) | ||||
Significant non-cash operating activities: | ||||
Depreciation and amortization | $ | 5,365 | ||
Provision for severance benefits | 6,405 | |||
Stock-based compensation | 263 | |||
Investing activities: | ||||
Capital expenditures | $ | (4,415 | ) |
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
Finished goods | $ | 5,030 | $ | 10,087 | $ | 7,829 | $ | 6,425 | ||||||||
Semi-finished goods and work-in-process | 28,919 | 28,815 | 32,524 | 30,968 | ||||||||||||
Raw materials | 5,743 | 8,449 | 8,524 | 6,526 | ||||||||||||
Materials in-transit | 444 | — | 593 | 1,021 | ||||||||||||
Less: inventory reserve | (6,505 | ) | (5,947 | ) | (8,101 | ) | (5,901 | ) | ||||||||
Inventories, net | $ | 33,631 | $ | 41,404 | $ | 41,369 | $ | 39,039 | ||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||
Beginning balance | $ | (5,307 | ) | $ | (5,947 | ) | $ | (11,782 | ) | $ | (4,845 | ) | $ | (6,281 | ) | $ | (5,901 | ) | $ | (4,807 | ) | $ | (5,947 | ) | ||||||||
Change in reserve | ||||||||||||||||||||||||||||||||
Inventory reserve charged to costs of sales | (3,472 | ) | (6,541 | ) | (1,298 | ) | (10,745 | ) | (3,186 | ) | (5,350 | ) | (1,794 | ) | (3,069 | ) | ||||||||||||||||
Sale of previously reserved inventory | 1,578 | 3,231 | 914 | 1,880 | 1,343 | 1,977 | 747 | 1,653 | ||||||||||||||||||||||||
(1,894 | ) | (3,310 | ) | (384 | ) | (8,865 | ) | (1,843 | ) | (3,373 | ) | (1,047 | ) | (1,416 | ) | |||||||||||||||||
Write off | 835 | 1,976 | 377 | 1,593 | 28 | 930 | 642 | 1,141 | ||||||||||||||||||||||||
Translation adjustments | (139 | ) | 82 | 461 | 789 | (5 | ) | 243 | (95 | ) | 221 | |||||||||||||||||||||
Reclassified to assets held for sale | 0 | 694 | — | — | — | — | — | 694 | ||||||||||||||||||||||||
Ending balance | $ | (6,505 | ) | $ | (6,505 | ) | $ | (11,328 | ) | $ | (11,328 | ) | $ | (8,101 | ) | $ | (8,101 | ) | $ | (5,307 | ) | $ | (5,307 | ) | ||||||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
Buildings and related structures | $ | 22,580 | $ | 22,502 | $ | 24,184 | $ | 24,882 | ||||||||
Machinery and equipment | 90,136 | 89,453 | 104,875 | 106,244 | ||||||||||||
Finance lease right-of-use | 319 | 323 | 331 | 344 | ||||||||||||
Others | 31,802 | 22,242 | 44,277 | 40,116 | ||||||||||||
144,837 | 134,520 | 173,667 | 171,586 | |||||||||||||
Less: accumulated depreciation | (81,409 | ) | (75,704 | ) | (93,549 | ) | (90,370 | ) | ||||||||
Land | 14,061 | 14,252 | 14,603 | 15,167 | ||||||||||||
Property, plant and equipment, net | $ | 77,489 | $ | 73,068 | $ | 94,721 | $ | 96,383 | ||||||||
September 30, 2020 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Technology | $ | 6,487 | $ | (6,487 | ) | $ | — | |||||
Customer relationships | 10,044 | (10,044 | ) | — | ||||||||
Intellectual property assets | 8,760 | (5,883 | ) | 2,877 | ||||||||
Intangible assets, net | $ | 25,291 | $ | (22,414 | ) | $ | 2,877 | |||||
June 30, 2021 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Intellectual property assets | $ | 9,425 | $ | (6,884 | ) | $ | 2,541 | |||||
Intangible assets | $ | 9,425 | $ | (6,884 | ) | $ | 2,541 | |||||
December 31, 2019 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Technology | $ | 6,575 | $ | (6,575 | ) | $ | — | |||||
Customer relationships | 10,180 | (10,180 | ) | — | ||||||||
Intellectual property assets | 8,637 | (5,868 | ) | 2,769 | ||||||||
Intangible assets, net | $ | 25,392 | $ | (22,623 | ) | $ | 2,769 | |||||
December 31, 2020 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Intellectual property assets | $ | 9,486 | $ | (6,759 | ) | $ | 2,727 | |||||
Intangible assets | $ | 9,486 | $ | (6,759 | ) | $ | 2,727 | |||||
Leases | Classification | September 30, 2020 | December 31, 2019 | Classification | June 30, 2021 | December 31, 2020 | ||||||||||||||||
Assets | ||||||||||||||||||||||
Operating lease | Operating lease right-of-use assets | $ | 2,032 | $ | 1,876 | Operating lease right-of-use assets | $ | 4,520 | $ | 4,632 | ||||||||||||
Finance lease | Property, plant and equipment, net | 207 | 258 | Property, plant and equipment, net | 165 | 206 | ||||||||||||||||
Total lease assets | $ | 2,239 | $ | 2,134 | $ | 4,685 | $ | 4,838 | ||||||||||||||
Liabilities | ||||||||||||||||||||||
Current | ||||||||||||||||||||||
Operating | Operating lease liabilities | $ | 1,390 | $ | 1,625 | Operating lease liabilities | $ | 2,181 | $ | 2,210 | ||||||||||||
Finance | Other current liabilities | 62 | 60 | Other current liabilities | 69 | 68 | ||||||||||||||||
Non-current | ||||||||||||||||||||||
Operating | Other non-current liabilities | 642 | 251 | Non-current operating lease liabilities | 2,338 | 2,422 | ||||||||||||||||
Finance | Other non-current liabilities | 158 | 208 | Other non-current liabilities | 112 | 153 | ||||||||||||||||
Total lease liabilities | $ | 2,252 | $ | 2,144 | $ | 4,700 | $ | 4,853 | ||||||||||||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
Weighted average remaining lease term | ||||||||||||||||
Operating leases | 1.4 years | 1.1 years | 2.9 years | 3.0 years | ||||||||||||
Finance leases | 3.3 years | 4.0 years | 2.5 years | 3.0 years | ||||||||||||
Weighted average discount rate | ||||||||||||||||
Operating leases | 6.82 | % | 7.19 | % | 4.71 | % | 5.55 | % | ||||||||
Finance leases | 7.75 | % | 7.75 | % | 7.75 | % | 7.75 | % |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
Operating lease cost | $ | 480 | $ | 483 | $ | 1,409 | $ | 1,509 | $ | 727 | $ | 461 | $ | 1,407 | $ | 929 | ||||||||||||||||
Finance lease cost | ||||||||||||||||||||||||||||||||
Amortization of right-of-use | 16 | 15 | 47 | 48 | 16 | 15 | 33 | 31 | ||||||||||||||||||||||||
Interest on lease liabilities | 4 | 5 | 13 | 17 | 3 | 4 | 7 | 9 | ||||||||||||||||||||||||
Total lease cost | $ | 500 | $ | 503 | $ | 1,469 | $ | 1,574 | $ | 746 | $ | 480 | $ | 1,447 | $ | 969 | ||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||||||||||||||
Operating cash flows from operating leases | $ | 480 | $ | 483 | $ | 1,409 | $ | 1,509 | $ | 727 | $ | 461 | $ | 1,407 | $ | 929 | ||||||||||||||||
Operating cash flows from finance leases | 4 | 5 | 13 | 17 | 3 | 4 | 7 | 9 | ||||||||||||||||||||||||
Financing cash flows from finance leases | 15 | 13 | 43 | 41 | 17 | 14 | 33 | 28 |
Operating Leases | Finance Leases | Operating Leases | Finance Leases | |||||||||||||
2020 | $ | 358 | $ | 19 | ||||||||||||
2021 | 1,459 | 77 | ||||||||||||||
Remainder of 2021 | $ | 1,409 | $ | 40 | ||||||||||||
2022 | 308 | 77 | 1,574 | 79 | ||||||||||||
2023 | 16 | 77 | 837 | 80 | ||||||||||||
Thereafter | — | — | ||||||||||||||
2024 | 601 | 0 | ||||||||||||||
2025 | 414 | 0 | ||||||||||||||
Total future lease payments | 2,141 | 250 | 4,835 | 199 | ||||||||||||
Less: Imputed interest | (109 | ) | (30 | ) | (316 | ) | (18 | ) | ||||||||
Present value of future payments | $ | 2,032 | $ | 220 | $ | 4,519 | $ | 181 | ||||||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
Payroll, benefits and related taxes, excluding severance benefits | $ | 9,743 | $ | 8,493 | $ | 8,259 | $ | 10,296 | ||||||||
Withholding tax attributable to intercompany interest income | 25,206 | 23,371 | 1,144 | 28 | ||||||||||||
Interest on senior notes | 3,444 | 8,205 | — | 1,396 | ||||||||||||
Outside service fees | 685 | 1,996 | 1,179 | 755 | ||||||||||||
Restructuring and others | 1,611 | 2,658 | ||||||||||||||
Others | 2,552 | 2,734 | 827 | 1,108 | ||||||||||||
Accrued expenses | $ | 41,630 | $ | 44,799 | $ | 13,020 | $ | 16,241 | ||||||||
Date of transaction | Total notional amount | Month of settlement | ||||
December 15, 2020 | $ | 30,000 | July 2021 to December 2021 | |||
February 26, 2021 | $ | 18,000 | July 2021 to December 2021 | |||
May 13, 2021 | $ | 39,000 | January 2022 to September 2022 |
Date of transaction | Type of derivative | Total notional amount | Month of settlement | |||||||
December 4, 2019 | Zero cost collar | $ | 15,000 | October 2020 to | ||||||
January 31, 2020 | Zero cost collar | $ | 15,000 | October 2020 to December 2020 | ||||||
February 3, 2020 | Zero cost collar | $ | 9,000 | October 2020 to December 2020 | ||||||
February 21, 2020 | Zero cost collar | $ | 15,000 | October 2020 to December 2020 | ||||||
July 13, 2020 | Zero cost collar | $ | 30,000 | January 2021 to June 2021 |
Date of transaction | Type of derivative | Total notional amount | Month of settlement | |||||||||
August 13, 2019 | Zero cost collar | $ | 60,000 | January 2020 to | ||||||||
September 27, 2019 | Zero cost collar | $ | 42,000 | January 2020 to June 2020 | ||||||||
December 4, 2019 | Zero cost collar | $ | 30,000 | July 2020 to |
Date of transaction | Total notional amount | Month of settlement | ||||
July 13, 2020 | $ | 30,000 | January 2021 to June 2021 | |||
December 15, 2020 | $ | 30,000 | July 2021 to December 2021 | |||
December 18, 2020 | $ | 18,000 | March 2021 to June 2021 |
Derivatives designated as hedging instruments: | September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | ||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||
Zero cost collars | Other current assets | $ | 262 | $ | 1,456 | Other current assets | $ | — | $ | 2,036 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||
Zero cost collars | Other current liabilities | $ | 33 | $ | — | Other current liabilities | $ | 846 | $ | 195 | ||||||||||||
Zero cost collars | Other non-current liabilities | $ | 66 | $ | — |
As of June 30, 2021 | Gross amounts of recognized liabilities | Gross amounts offset in the balance sheets | Net amounts of liabilities presented in the balance sheets | Gross amounts not offset in the balance sheets | Net amount | |||||||||||||||||||
Financial instruments | Cash collateral pledged | |||||||||||||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 912 | $ | 0 | $ | 912 | $ | 0 | $ | (580) | $ | 332 |
As of September 30, 2020 | Gross amounts of recognized assets/liabilities | Gross amounts offset in the balance sheets | Net amounts of assets/liabilities presented in the balance sheets | Gross amounts not offset in the balance sheets | Net amount | |||||||||||||||||||
Financial instruments | Cash collateral pledged | |||||||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 262 | $ | 0 | $ | 262 | $ | 0 | $ | 0 | $ | 262 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 33 | $ | 0 | $ | 33 | $ | 0 | $ | 0 | $ | 33 |
As of December 31, 2020 | Gross amounts of recognized assets/liabilities | Gross amounts offset in the balance sheets | Net amounts of assets/liabilities presented in the balance sheets | Gross amounts not offset in the balance sheets | Net amount | |||||||||||||||||||
Financial instruments | Cash collateral pledged | |||||||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 2,036 | $ | 0 | $ | 2,036 | $ | 0 | $ | 0 | $ | 2,036 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 195 | $ | 0 | $ | 195 | $ | 0 | $ | 0 | $ | 195 |
As of December 31, 2019 | Gross amounts of recognized assets | Gross amounts offset in the balance sheets | Net amounts of assets presented in the balance sheets | Gross amounts not offset in the balance sheets | Net amount | |||||||||||||||||||
Financial instruments | Cash collateral pledged | |||||||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 1,456 | $ | — | $ | 1,456 | $ | — | $ | 1,070 | $ | 2,526 |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivatives | Location/Amount of Loss Reclassified from AOCI Into Statement of Operations | Location/Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives | Amount of Income Recognized in AOCI on Derivatives | Location/Amount of Gain (Loss) Reclassified from AOCI Into Statement of Operations | Location/Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Zero cost collars | $ | 1,390 | $ | (2,803 | )�� | Net sales | $ | (41 | ) | $ | (1,600 | ) | Other income, net | $ | 50 | $ | (33 | ) | $ | 432 | $ | 2,204 | Net sales | $ | 475 | $ | (193 | ) | Other income, net | $ | (58 | ) | $ | 55 | ||||||||||||||||||||||||||||||
$ | 432 | $ | 2,204 | $ | 475 | $ | (193 | ) | $ | (58 | ) | $ | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Loss Recognized in AOCI on Derivatives | Location/Amount of Loss Reclassified from AOCI Into Statement of Operations | Location/Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives | Amount of Loss Recognized in AOCI on Derivatives | Location/Amount of Gain (Loss) Reclassified from AOCI Into Statement of Operations | Location/Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Zero cost collars | $ | (1,410 | ) | $ | (3,905 | ) | Net sales | $ | (292 | ) | $ | (1,803 | ) | Other income, net | $ | 222 | $ | (44 | ) | $ | (1,693 | ) | $ | (2,800 | ) | Net sales | $ | 986 | $ | (251 | ) | Other income, net | $ | (144 | ) | $ | 172 | |||||||||||||||||||||||||||
Forwards | $ | — | $ | (1,798 | ) | Net sales | $ | — | $ | (1,750 | ) | Other income, net | $ | — | $ | (125 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
$ | (1,410 | ) | $ | (5,703 | ) | $ | (292 | ) | $ | (3,553 | ) | $ | 222 | $ | (169 | ) | $ | (1,693 | ) | $ | (2,800 | ) | $ | 986 | $ | (251 | ) | $ | (144 | ) | $ | 172 | ||||||||||||||||||||||||||||||||
Counterparties | June 30, 2021 | December 31, 2020 | ||||||
NFIK | $ | 3,250 | $ | 3,250 | ||||
DB | 0 | 1,000 | ||||||
SC | 1,000 | 1,000 | ||||||
Total | $ | 4,250 | $ | 5,250 | ||||
Carrying Value June 30, 2021 | Fair Value Measurement June 30, 2021 | Quoted Prices in Active Markets for Identical Liability (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (other current liabilities) | $ | 846 | $ | 846 | — | $ | 846 | — | ||||||||||||
Derivative liabilities (other non-current liabilities) | $ | 66 | $ | 66 | — | $ | 66 | — |
Carrying Value September 30, 2020 | Fair Value Measurement September 30, 2020 | Quoted Prices in Active Markets for Identical Asset / Liability (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Assets: | ||||||||||||||||||||
Derivative assets (other current assets) | $ | 262 | $ | 262 | — | $ | 262 | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (other current liabilities) | $ | 33 | $ | 33 | — | $ | 33 | — |
Carrying Value December 31, 2019 | Fair Value Measurement December 31, 2019 | Quoted Prices in Active Markets for Identical Asset (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Value December 31, 2020 | Fair Value Measurement December 31, 2020 | Quoted Prices in Active Markets for Identical Asset / Liability (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Derivative assets (other current assets) | $ | 1,456 | $ | 1,456 | — | $ | 1,456 | — | $ | 2,036 | $ | 2,036 | — | $ | 2,036 | — | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (other current liabilities) | $ | 195 | $ | 195 | — | $ | 195 | — |
September 30, 2020 | December 31, 2019 | December 31, 2020 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
(In thousands of U.S. dollars) | (In thousands of U.S. dollars ) | |||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||
5.0% Exchangeable Senior Notes due March 2021 (Level 2) | $ | 83,088 | $ | 126,643 | $ | 81,959 | $ | 116,078 | $ | 83,479 | $ | 145,466 | ||||||||||||
6.625% Senior Notes due July 2021 (Level 2) | $ | 223,479 | $ | 224,250 | $ | 222,784 | $ | 224,250 |
December 31, | ||||||||||||
September 30, 2020 | December 31, 2019 | 2020 | ||||||||||
5.0% Exchangeable Senior Notes due March 2021 | $ | 83,740 | $ | 83,740 | $ | 83,740 | ||||||
6.625% Senior Notes due July 2021 | 224,250 | 224,250 | ||||||||||
Less: unamortized discount and debt issuance costs | (1,423 | ) | (3,247 | ) | (261 | ) | ||||||
Total borrowings, net | 306,567 | 304,743 | 83,479 | |||||||||
Less: current portion of long-term borrowings, net | 306,567 | — | 83,479 | |||||||||
Long-term borrowings, net | $ | 0 | $ | 304,743 | $ | 0 | ||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||
Beginning balance | $ | 51,785 | $ | 53,344 | $ | 53,202 | $ | 55,691 | $ | 52,553 | $ | 54,452 | $ | 50,610 | $ | 53,344 | ||||||||||||||||
Provisions | 2,167 | 5,941 | 1,851 | 4,494 | 1,736 | 3,507 | 1,755 | 3,774 | ||||||||||||||||||||||||
Severance payments | (1,295 | ) | (4,749 | ) | (1,017 | ) | (4,312 | ) | (1,343 | ) | (2,836 | ) | (1,502 | ) | (3,454 | ) | ||||||||||||||||
Translation adjustments | 1,204 | (675 | ) | (2,180 | ) | (4,017 | ) | 159 | (2,018 | ) | 922 | (1,879 | ) | |||||||||||||||||||
53,861 | 53,861 | 51,856 | 51,856 | 53,105 | 53,105 | 51,785 | 51,785 | |||||||||||||||||||||||||
Less: Cumulative contributions to severance insurance deposit accounts | (1,616 | ) | (1,616 | ) | (1,357 | ) | (1,357 | ) | (13,316 | ) | (13,316 | ) | (1,570 | ) | (1,570 | ) | ||||||||||||||||
The National Pension Fund | (73 | ) | (73 | ) | (80 | ) | (80 | ) | (59 | ) | (59 | ) | (73 | ) | (73 | ) | ||||||||||||||||
Group severance insurance plan | (219 | ) | (219 | ) | (227 | ) | (227 | ) | (210 | ) | (210 | ) | (215 | ) | (215 | ) | ||||||||||||||||
Accrued severance benefits, net | $ | 51,953 | $ | 51,953 | $ | 50,192 | $ | 50,192 | $ | 39,520 | $ | 39,520 | $ | 49,927 | $ | 49,927 | ||||||||||||||||
Severance benefit | Severance benefit | |||||||
Remainder of 2020 | $ | 387 | ||||||
2021 | 386 | |||||||
Remainder of 2021 | $ | 78 | ||||||
2022 | 743 | 258 | ||||||
2023 | 605 | 651 | ||||||
2024 | 1,074 | 932 | ||||||
2025 | 2,157 | 2,051 | ||||||
2026 – 2030 | 19,644 | |||||||
2026 | 2,356 | |||||||
2027 – 2031 | 19,643 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Revenues | ||||||||||||||||
Standard products business | ||||||||||||||||
Display Solutions | $ | 46,601 | $ | 69,176 | $ | 105,496 | $ | 146,769 | ||||||||
Power Solutions | 56,667 | 39,779 | 110,678 | 72,922 | ||||||||||||
Total standard products business | 103,268 | 108,955 | 216,174 | 219,691 | ||||||||||||
Transitional Fab 3 foundry services | 10,608 | 9,873 | 20,721 | 19,610 | ||||||||||||
Total revenues | $ | 113,876 | $ | 118,828 | $ | 236,895 | $ | 239,301 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
Revenues | ||||||||||||||||
Standard products business | ||||||||||||||||
Display Solutions | $ | 69,583 | $ | 90,550 | $ | 216,352 | $ | 233,041 | ||||||||
Power Solutions | 46,679 | 48,723 | 119,601 | 138,502 | ||||||||||||
Total standard products business | 116,262 | 139,273 | 335,953 | 371,543 | ||||||||||||
Transitional Fab 3 foundry services | 8,551 | 9,894 | 28,161 | 25,776 | ||||||||||||
Total revenues | $ | 124,813 | $ | 149,167 | $ | 364,114 | $ | 397,319 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
Gross Profit | ||||||||||||||||
Standard products business | $ | 28,768 | $ | 35,255 | $ | 90,036 | $ | 85,900 | ||||||||
Transitional Fab 3 foundry services | (180 | ) | — | (180 | ) | — | ||||||||||
Total gross profit | $ | 28,588 | $ | 35,255 | $ | 89,856 | $ | 85,900 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Gross Profit | ||||||||||||||||
Standard products business | $ | 32,859 | $ | 32,138 | $ | 66,518 | $ | 61,268 | ||||||||
Transitional Fab 3 foundry services | 1,111 | — | 1,834 | — | ||||||||||||
Total gross profit | $ | 33,970 | $ | 32,138 | $ | 68,352 | $ | 61,268 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
Korea | $ | 28,370 | $ | 36,114 | $ | 81,144 | $ | 107,319 | ||||||||
Asia Pacific (other than Korea) | 84,188 | 100,872 | 245,940 | 258,276 | ||||||||||||
United States | 1,789 | 482 | 3,959 | 1,600 | ||||||||||||
Europe | 1,451 | 1,501 | 3,278 | 3,515 | ||||||||||||
Others | 464 | 304 | 1,632 | 833 | ||||||||||||
Total | $ | 116,262 | $ | 139,273 | $ | 335,953 | $ | 371,543 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Korea | $ | 30,868 | $ | 21,957 | $ | 57,302 | $ | 52,774 | ||||||||
Asia Pacific (other than Korea) | 69,352 | 84,210 | 153,092 | 161,752 | ||||||||||||
United States | 1,363 | 1,461 | 2,637 | 2,170 | ||||||||||||
Europe | 1,206 | 856 | 2,449 | 1,827 | ||||||||||||
Others | 479 | 471 | 694 | 1,168 | ||||||||||||
Total | $ | 103,268 | $ | 108,955 | $ | 216,174 | $ | 219,691 | ||||||||
16. Accumulated Other Comprehensive Income (Loss) |
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
Foreign currency translation adjustments | $ | 4,986 | $ | (4,205 | ) | $ | 120 | $ | 2,069 | |||||||
Derivative adjustments | 427 | 1,545 | (1,045 | ) | 1,634 | |||||||||||
Total | $ | 5,413 | $ | (2,660 | ) | $ | (925 | ) | $ | 3,703 | ||||||
Three Months Ended September 30, 2020 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 11,503 | $ | (1,004 | ) | $ | 10,499 | |||||
Other comprehensive income (loss) before reclassifications | (6,517 | ) | 1,390 | (5,127 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 41 | 41 | |||||||||
Net current-period other comprehensive income (loss) | (6,517 | ) | 1,431 | (5,086 | ) | |||||||
Ending balance | $ | 4,986 | $ | 427 | $ | 5,413 | ||||||
Three Months Ended June 30, 2021 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 11 | $ | (1,002 | ) | $ | (991 | ) | ||||
Other comprehensive income before reclassifications | 109 | 432 | 541 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | (475 | ) | (475 | ) | |||||||
Net current-period other comprehensive income (loss) | 109 | (43 | ) | 66 | ||||||||
Ending balance | $ | 120 | $ | (1,045 | ) | $ | (925 | ) | ||||
Three Months Ended September 30, 2019 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (5,077 | ) | $ | (996 | ) | $ | (6,073 | ) | |||
Other comprehensive income (loss) before reclassifications | 15,931 | (2,803 | ) | 13,128 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1,600 | 1,600 | |||||||||
Net current-period other comprehensive income (loss) | 15,931 | (1,203 | ) | 14,728 | ||||||||
Ending balance | $ | 10,854 | $ | (2,199 | ) | $ | 8,655 | |||||
Three Months Ended June 30, 2020 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 18,046 | $ | (3,401 | ) | $ | 14,645 | |||||
Other comprehensive income (loss) before reclassifications | (6,543 | ) | 2,204 | (4,339 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 193 | 193 | |||||||||
Net current-period other comprehensive income (loss) | (6,543 | ) | 2,397 | (4,146 | ) | |||||||
Ending balance | $ | 11,503 | $ | (1,004 | ) | $ | 10,499 | |||||
Nine Months Ended September 30, 2020 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (4,205 | ) | $ | 1,545 | $ | (2,660 | ) | ||||
Other comprehensive income (loss) before reclassifications | 9,191 | (1,410 | ) | 7,781 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 292 | 292 | |||||||||
Net current-period other comprehensive income (loss) | 9,191 | (1,118 | ) | 8,073 | ||||||||
Ending balance | $ | 4,986 | $ | 427 | $ | 5,413 | ||||||
Six Months Ended June 30, 2021 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 2,069 | $ | 1,634 | $ | 3,703 | ||||||
Other comprehensive loss before reclassifications | (1,949 | ) | (1,693 | ) | (3,642 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | (986 | ) | (986 | ) | |||||||
Net current-period other comprehensive loss | (1,949 | ) | (2,679 | ) | (4,628 | ) | ||||||
Ending balance | $ | 120 | $ | (1,045 | ) | $ | (925 | ) | ||||
Nine Months Ended September 30, 2019 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (20,061 | ) | $ | (49 | ) | $ | (20,110 | ) | |||
Other comprehensive income (loss) before reclassifications | 30,915 | (5,703 | ) | 25,212 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 3,553 | 3,553 | |||||||||
Net current-period other comprehensive income (loss) | 30,915 | (2,150 | ) | 28,765 | ||||||||
Ending balance | $ | 10,854 | $ | (2,199 | ) | $ | 8,655 | |||||
Six Months Ended June 30, 2020 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (4,205 | ) | $ | 1,545 | $ | (2,660 | ) | ||||
Other comprehensive income (loss) before reclassifications | 15,708 | (2,800 | ) | 12,908 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 251 | 251 | |||||||||
Net current-period other comprehensive income (loss) | 15,708 | (2,549 | ) | 13,159 | ||||||||
Ending balance | $ | 11,503 | $ | (1,004 | ) | $ | 10,499 | |||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||||||
Basic earnings (loss) per share | ||||||||||||||||
Income (loss) from continuing operations | $ | 8,461 | $ | (14,244 | ) | $ | (10,843 | ) | $ | (44,289 | ) | |||||
Income (loss) from discontinued operations, net of tax | 264,501 | 12,637 | 289,227 | (963 | ) | |||||||||||
Net income (loss) | $ | 272,962 | (1,607 | ) | $ | 278,384 | $ | (45,252 | ) | |||||||
Basic weighted average common stock outstanding | 35,280,864 | 34,357,745 | 35,089,479 | 34,266,513 | ||||||||||||
Basic earnings (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.24 | $ | (0.41 | ) | $ | (0.31 | ) | $ | (1.29 | ) | |||||
Discontinued operations | 7.50 | 0.36 | 8.24 | (0.03 | ) | |||||||||||
Total | $ | 7.74 | $ | (0.05 | ) | $ | 7.93 | $ | (1.32 | ) | ||||||
Diluted earnings (loss) per share | ||||||||||||||||
Income (loss) from continuing operations | $ | 8,461 | $ | (14,244 | ) | $ | (10,843 | ) | $ | (44,289 | ) | |||||
Add back: Interest expense on Exchangeable Notes | 1,429 | — | — | — | ||||||||||||
Income (loss) from continuing operations allocated to common stockholders | $ | 9,890 | $ | (14,244 | ) | $ | (10,843 | ) | $ | (44,289 | ) | |||||
Income (loss) from discontinued operations, net of tax | 264,501 | 12,637 | 289,227 | (963 | ) | |||||||||||
Net income (loss) allocated to common stockholders | $ | 274,391 | $ | (1,607 | ) | $ | 278,384 | $ | (45,252 | ) | ||||||
Basic weighted average common stock outstanding | 35,280,864 | 34,357,745 | 35,089,479 | 34,266,513 | ||||||||||||
Net effect of dilutive equity awards | 1,156,769 | — | — | — | ||||||||||||
Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock | 10,144,155 | — | — | — | ||||||||||||
Diluted weighted average common stock outstanding | 46,581,788 | 34,357,745 | 35,089,479 | 34,266,513 | ||||||||||||
Diluted earnings (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.21 | $ | (0.41 | ) | $ | (0.31 | ) | $ | (1.29 | ) | |||||
Discontinued operations | 5.68 | 0.36 | 8.24 | (0.03 | ) | |||||||||||
Total | $ | 5.89 | $ | (0.05 | ) | $ | 7.93 | $ | (1.32 | ) | ||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||||||
Basic earnings (loss) per share | ||||||||||||||||
Income (loss) from continuing operations | $ | (198 | ) | $ | 11,774 | $ | (7,671 | ) | $ | (19,304 | ) | |||||
Income from discontinued operations, net of tax | 0 | 17,397 | 0 | 24,726 | ||||||||||||
Net income (loss) | $ | (198 | ) | $ | 29,171 | $ | (7,671 | ) | $ | 5,422 | ||||||
Basic weighted average common stock outstanding | 46,322,027 | 35,092,312 | 43,324,088 | 34,992,734 | ||||||||||||
Basic earnings (loss) per common share | ||||||||||||||||
Continuing operations | $ | (0.00 | ) | $ | 0.34 | $ | (0.18 | ) | $ | (0.55 | ) | |||||
Discontinued operations | 0 | 0.50 | 0 | 0.71 | ||||||||||||
Total | $ | (0.00 | ) | $ | 0.84 | $ | (0.18 | ) | $ | 0.16 | ||||||
Diluted earnings (loss) per share | ||||||||||||||||
Income (loss) from continuing operations | $ | (198 | ) | $ | 11,774 | $ | (7,671 | ) | $ | (19,304 | ) | |||||
Add back: Interest expense on Exchangeable Notes | 0 | 1,425 | 0 | 0 | ||||||||||||
Income (loss) from continuing operations allocated to common stockholders | $ | (198 | ) | $ | 13,199 | $ | (7,671 | ) | $ | (19,304 | ) | |||||
Income from discontinued operations, net of tax | 0 | 17,397 | 0 | 24,726 | ||||||||||||
Net income (loss) allocated to common stockholders | $ | (198 | ) | $ | 30,596 | $ | (7,671 | ) | $ | 5,422 | ||||||
Basic weighted average common stock outstanding | 46,322,027 | 35,092,312 | 43,324,088 | 34,992,734 | ||||||||||||
Net effect of dilutive equity awards | 0 | 1,237,770 | 0 | 0 | ||||||||||||
Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock | 0 | 10,144,155 | 0 | 0 | ||||||||||||
Diluted weighted average common stock outstanding | 46,322,027 | 46,474,237 | 43,324,088 | 34,992,734 | ||||||||||||
Continuing operations | $ | (0.00 | ) | $ | 0.28 | $ | (0.18 | ) | $ | (0.55 | ) | |||||
Discontinued operations | 0 | 0.37 | 0 | 0.71 | ||||||||||||
Total | $ | (0.00 | ) | $ | 0.65 | $ | (0.18 | ) | $ | 0.16 | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
Options | 697,667 | 2,479,423 | 1,788,202 | 2,479,423 | ||||||||||||
Restricted Stock Units | — | 592,967 | 1,248,113 | 592,967 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Options | 1,470,421 | 699,167 | 1,470,421 | 2,075,494 | ||||||||||||
Restricted Stock Units | 1,012,197 | 0 | 1,012,197 | 1,238,639 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | |||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 8.5 | $ | (10.8 | ) | $ | (14.2 | ) | $ | (44.3 | ) | $ | (0.2 | ) | $ | (7.7 | ) | $ | 11.8 | $ | (19.3 | ) | ||||||||||
Interest expense, net | 4.9 | 14.5 | 4.9 | 14.8 | ||||||||||||||||||||||||||||
Interest expense (income), net | (0.5 | ) | (0.1 | ) | 4.7 | 9.7 | ||||||||||||||||||||||||||
Income tax expenses | (1.1 | ) | 0.8 | 1.7 | 3.3 | 2.6 | 2.9 | 0.7 | 2.0 | |||||||||||||||||||||||
Depreciation and amortization | 2.9 | 8.0 | 2.6 | 7.7 | 3.5 | 7.0 | 2.5 | 5.1 | ||||||||||||||||||||||||
EBITDA | $ | 15.0 | $ | 12.5 | $ | (5.0 | ) | $ | (18.5 | ) | $ | 5.5 | $ | 2.1 | $ | 19.7 | $ | (2.5 | ) | |||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Equity-based compensation expense(a) | 2.1 | 4.4 | 0.4 | 1.7 | 2.4 | 4.1 | 1.5 | 2.3 | ||||||||||||||||||||||||
Foreign currency loss (gain), net(b) | (8.9 | ) | 13.6 | 22.0 | 44.2 | (0.2 | ) | 4.4 | (8.5 | ) | 22.5 | |||||||||||||||||||||
Derivative valuation loss (gain), net(c) | (0.1 | ) | (0.2 | ) | 0.0 | 0.2 | 0.1 | 0.1 | (0.1 | ) | (0.2 | ) | ||||||||||||||||||||
Loss on early extinguishment of long-term borrowings, net(d) | — | — | — | 0.0 | ||||||||||||||||||||||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions (e) | 2.3 | 2.3 | — | — | ||||||||||||||||||||||||||||
Expenses related to Fab 3 power outage(f) | 1.2 | 1.2 | — | — | ||||||||||||||||||||||||||||
Others(g) | — | 0.6 | — | 0.6 | ||||||||||||||||||||||||||||
Other charges(d) | 5.0 | 15.4 | — | 0.6 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 11.7 | $ | 34.3 | $ | 17.4 | $ | 28.1 | $ | 12.7 | $ | 26.2 | $ | 12.7 | $ | 22.6 | ||||||||||||||||
(a) | This adjustment eliminates the impact of non-cash equity-based compensation expenses. Although we expect to incurnon-cash equity-based compensation expenses in the future, these expenses do not generally require cash settlement, and, therefore, are not used by us to assess the profitability of our operations. We believe that analysts and investors will find it helpful to review our operating performance without the effects of thesenon-cash expenses as supplemental information. |
(b) | This adjustment mainly eliminates the impact of non-cash foreign currency translation associated with intercompany debt obligationsnon-cash gains or losses, which we cannot control. Additionally, we believe the isolation of this adjustment provides investors with enhanced comparability to prior and future periods of our operating performance results. |
(c) | This adjustment eliminates the impact of gain or loss recognized in income on derivatives, which represents derivatives value changes excluded from the risk being hedged. We enter into derivative transactions to mitigate foreign exchange risks. As our derivative transactions are limited to a certain portion of our expected cash flows denominated in U.S. dollars, and we do not enter into derivative transactions for trading or speculative purposes, we do not believe that these charges or gains are indicative of our core operating performance. |
(d) | non-recurring professional service fees and expenses incurred in |
regulatory requests. For the non-recurring professional service fees and expenses incurred in connection with certain treasury and finance |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Operating income | $ | 3.2 | $ | 17.8 | $ | 14.3 | $ | 18.0 | ||||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 2.1 | 4.4 | 0.4 | 1.7 | ||||||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions (b) | 2.3 | 2.3 | �� | — | — | |||||||||||
Expenses related to Fab 3 power outage(c) | 1.2 | 1.2 | — | — | ||||||||||||
Others(d) | — | 0.6 | — | 0.6 | ||||||||||||
Adjusted Operating Income | $ | 8.8 | $ | 26.2 | $ | 14.8 | $ | 20.3 | ||||||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | |||||||||||||
(In millions) | ||||||||||||||||
Operating income (loss) | $ | 1.6 | $ | (0.5 | ) | $ | 8.6 | $ | 14.6 | |||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 2.4 | 4.1 | 1.5 | 2.3 | ||||||||||||
Others charges(b) | 5.0 | 15.4 | — | 0.6 | ||||||||||||
Adjusted Operating Income | $ | 9.1 | $ | 19.0 | $ | 10.1 | $ | 17.4 | ||||||||
(a) | This adjustment eliminates the impact of non-cash equity-based compensation expenses. Although we expect to incurnon-cash equity-based compensation expenses in the future, these expenses do not generally require cash settlement, and, therefore, are not used by us to assess the profitability of our operations. We believe that analysts and investors will find it helpful to review our operating performance without the effects of thesenon-cash expenses as supplemental information. |
(b) | non-recurring professional service fees and |
regulatory requests. For the non-recurring professional service fees and expenses incurred in connection with certain treasury and finance |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | |||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 8.5 | $ | (10.8 | ) | $ | (14.2 | ) | $ | (44.3 | ) | $ | (0.2 | ) | $ | (7.7 | ) | $ | 11.8 | $ | (19.3 | ) | ||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Equity-based compensation expense(a) | 2.1 | 4.4 | 0.4 | 1.7 | 2.4 | 4.1 | 1.5 | 2.3 | ||||||||||||||||||||||||
Foreign currency loss (gain), net(b) | (8.9 | ) | 13.6 | 22.0 | 44.2 | (0.2 | ) | 4.4 | (8.5 | ) | 22.5 | |||||||||||||||||||||
Derivative valuation loss (gain), net(c) | (0.1 | ) | (0.2 | ) | 0.0 | 0.2 | 0.1 | 0.1 | (0.1 | ) | (0.2 | ) | ||||||||||||||||||||
Loss on early extinguishment of long-term borrowings, net(d) | — | — | — | 0.0 | ||||||||||||||||||||||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions (e) | 2.3 | 2.3 | — | — | ||||||||||||||||||||||||||||
Expenses related to Fab 3 power outage(f) | 1.2 | 1.2 | — | — | ||||||||||||||||||||||||||||
Others(g) | — | 0.6 | — | 0.6 | ||||||||||||||||||||||||||||
Other charges(d) | 5.0 | 15.4 | — | 0.6 | ||||||||||||||||||||||||||||
Income tax effect on non-GAAP adjustments(e) | — | — | — | — | ||||||||||||||||||||||||||||
Adjusted Net Income | $ | 5.1 | $ | 11.0 | $ | 8.2 | $ | 2.3 | $ | 7.0 | $ | 16.4 | $ | 4.8 | $ | 5.8 | ||||||||||||||||
Reported earnings (loss) per share – basic | $ | 0.24 | $ | (0.31 | ) | $ | (0.41 | ) | $ | (1.29 | ) | $ | (0.00 | ) | $ | (0.18 | ) | $ | 0.34 | $ | (0.55 | ) | ||||||||||
Reported earnings (loss) per share – diluted | $ | 0.21 | $ | (0.31 | ) | $ | (0.41 | ) | $ | (1.29 | ) | $ | (0.00 | ) | $ | (0.18 | ) | $ | 0.28 | $ | (0.55 | ) | ||||||||||
Weighted average number of shares – basic | 35,280,864 | 35,089,479 | 34,357,745 | 34,266,513 | 46,322,027 | 43,324,088 | 35,092,312 | 34,992,734 | ||||||||||||||||||||||||
Weighted average number of shares – diluted | 46,581,788 | 35,089,479 | 34,357,745 | 34,266,513 | 46,322,027 | 43,324,088 | 46,474,237 | 34,992,734 | ||||||||||||||||||||||||
Adjusted earnings per share – basic | $ | 0.15 | $ | 0.31 | $ | 0.24 | $ | 0.07 | $ | 0.15 | $ | 0.38 | $ | 0.14 | $ | 0.17 | ||||||||||||||||
Adjusted earnings per share – diluted | $ | 0.14 | $ | 0.30 | $ | 0.21 | $ | 0.07 | $ | 0.15 | $ | 0.36 | $ | 0.13 | $ | 0.16 | ||||||||||||||||
Weighted average number of shares – basic | 35,280,864 | 35,089,479 | 34,357,745 | 34,266,513 | 46,322,027 | 43,324,088 | 35,092,312 | 34,992,734 | ||||||||||||||||||||||||
Weighted average number of shares – diluted | 46,581,788 | 36,151,622 | 45,516,245 | 34,955,722 | 47,846,217 | 47,685,875 | 36,330,083 | 36,248,039 |
(a) | This adjustment eliminates the impact of non-cash equity-based compensation expenses. Although we expect to incurnon-cash equity-based compensation expenses in the future, these expenses do not generally require cash settlement, and, therefore, are not used by us to assess the profitability of our operations. We believe that analysts and investors will find it helpful to review our operating performance without the effects of thesenon-cash expenses as supplemental information. |
(b) | This adjustment mainly eliminates the impact of non-cash foreign currency translation associated with intercompany debt obligationsnon-cash gains or losses, which we cannot control. Additionally, we believe the isolation of this adjustment provides investors with enhanced comparability to prior and future periods of our operating performance results. |
(c) | This adjustment eliminates the impact of gain or loss recognized in income on derivatives, which represents derivatives value changes excluded from the risk being hedged. We enter into derivative transactions to mitigate foreign exchange risks. As our derivative transactions are limited to a certain portion of our expected cash flows denominated in U.S. dollars, and we do not enter into derivative transactions for trading or speculative purposes, we do not believe that these charges or gains are indicative of our core operating performance. |
(d) | non-recurring professional service fees and expenses incurred in |
regulatory requests. For the non-recurring professional service fees and expenses incurred in connection with certain treasury and finance |
(e) | For the three and six months ended |
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Net sales – standard products business | $ | 116.3 | 93.1 | % | $ | 139.3 | 93.4 | % | $ | (23.0 | ) | $ | 103.3 | 90.7 | % | $ | 109.0 | 91.7 | % | $ | (5.7 | ) | ||||||||||||||||||
Net sales – transitional Fab 3 foundry services | 8.6 | 6.9 | 9.9 | 6.6 | (1.3 | ) | 10.6 | 9.3 | 9.9 | 8.3 | 0.7 | |||||||||||||||||||||||||||||
Total revenues | 124.8 | 100.0 | 149.2 | 100.0 | (24.4 | ) | 113.9 | 100.0 | 118.8 | 100.0 | (5.0 | ) | ||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Cost of sales – standard products business | 87.5 | 70.1 | 104.0 | 69.7 | (16.5 | ) | 70.4 | 61.8 | 76.8 | 64.6 | (6.4 | ) | ||||||||||||||||||||||||||||
Cost of sales – transitional Fab 3 foundry services | 8.7 | 7.0 | 9.9 | 6.6 | (1.2 | ) | 9.5 | 8.3 | 9.9 | 8.3 | (0.4 | ) | ||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||
Total cost of sales | 96.2 | 77.1 | 113.9 | 76.4 | (17.7 | ) | 79.9 | 70.2 | 86.7 | 73.0 | (6.8 | ) | ||||||||||||||||||||||||||||
Gross profit | 28.6 | 22.9 | 35.3 | 23.6 | (6.7 | ) | 34.0 | 29.8 | 32.1 | 27.0 | 1.8 | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 12.9 | 10.3 | 10.7 | 7.2 | 2.2 | 14.0 | 12.3 | 12.4 | 10.4 | 1.6 | ||||||||||||||||||||||||||||||
Research and development expenses | 12.5 | 10.0 | 10.2 | 6.9 | 2.2 | 13.3 | 11.7 | 11.1 | 9.3 | 2.2 | ||||||||||||||||||||||||||||||
Other charges | 5.0 | 4.4 | — | — | 5.0 | |||||||||||||||||||||||||||||||||||
Operating income | 3.2 | 2.6 | 14.3 | 9.6 | (11.1 | ) | 1.6 | 1.4 | 8.6 | 7.3 | (7.0 | ) | ||||||||||||||||||||||||||||
Interest expense | (5.5 | ) | (4.4 | ) | (5.5 | ) | (3.7 | ) | 0.1 | (0.1 | ) | (0.1 | ) | (5.4 | ) | (4.6 | ) | 5.3 | ||||||||||||||||||||||
Foreign currency gain (loss), net | 8.9 | 7.1 | (22.0 | ) | (14.7 | ) | 30.8 | |||||||||||||||||||||||||||||||||
Foreign currency gain, net | 0.3 | 0.2 | 8.5 | 7.1 | (8.2 | ) | ||||||||||||||||||||||||||||||||||
Others, net | 0.7 | 0.6 | 0.7 | 0.5 | 0.0 | 0.6 | 0.5 | 0.8 | 0.7 | (0.2 | ) | |||||||||||||||||||||||||||||
4.1 | 3.3 | (26.8 | ) | (18.0 | ) | 30.9 | 0.8 | 0.7 | 3.8 | 3.2 | (3.1 | ) | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense | 7.3 | 5.9 | (12.5 | ) | (8.4 | ) | 19.8 | |||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (1.1 | ) | (0.9 | ) | 1.7 | 1.2 | (2.9 | ) | ||||||||||||||||||||||||||||||||
Income from continuing operations before income tax expense | 2.4 | 2.1 | 12.5 | 10.5 | (10.0 | ) | ||||||||||||||||||||||||||||||||||
Income tax expense | 2.6 | 2.3 | 0.7 | 0.6 | 1.9 | |||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | 8.5 | 6.8 | (14.2 | ) | (9.5 | ) | 22.7 | (0.2 | ) | (0.2 | ) | 11.8 | 9.9 | (12.0 | ) | |||||||||||||||||||||||||
Income from discontinued operations, net of tax | 264.5 | 211.9 | 12.6 | 8.5 | 251.9 | — | — | 17.4 | 14.6 | (17.4 | ) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 273.0 | 218.7 | $ | (1.6 | ) | (1.1 | ) | $ | 274.6 | $ | (0.2 | ) | (0.2 | ) | $ | 29.2 | 24.5 | $ | (29.4 | ) | |||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Change Amount | Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Net sales – standard products business | ||||||||||||||||||||||||||||||||||||||||
Display Solutions | $ | 69.6 | 55.7 | % | $ | 90.6 | 60.7 | % | $ | (21.0 | ) | $ | 46.6 | 40.9 | % | $ | 69.2 | 58.2 | % | $ | (22.6 | ) | ||||||||||||||||||
Power Solutions | 46.7 | 37.4 | 48.7 | 32.7 | (2.0 | ) | 56.7 | 49.8 | 39.8 | 33.5 | 16.9 | |||||||||||||||||||||||||||||
Total standard products business | 116.3 | 93.1 | 139.3 | 93.4 | (23.0 | ) | 103.3 | 90.7 | 109.0 | 91.7 | (5.7 | ) | ||||||||||||||||||||||||||||
Net sales – transitional Fab 3 foundry services | 8.6 | 6.9 | 9.9 | 6.6 | (1.3 | ) | 10.6 | 9.3 | 9.9 | 8.3 | 0.7 | |||||||||||||||||||||||||||||
Total revenues | $ | 124.8 | 100.0 | % | $ | 149.2 | 100.0 | % | $ | (24.4 | ) | $ | 113.9 | 100.0 | % | $ | 118.8 | 100.0 | % | $ | (5.0 | ) | ||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Net sales | Amount | % of Net sales | Change Amount | Amount | % of Net sales | Amount | % of Net sales | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Gross Profit | ||||||||||||||||||||||||||||||||||||||||
Gross profit – standard products business | $ | 28.8 | 24.7 | % | $ | 35.3 | 25.3 | % | $ | (6.5 | ) | $ | 32.9 | 31.8 | % | $ | 32.1 | 29.5 | % | $ | 0.7 | |||||||||||||||||||
Gross profit – transitional Fab 3 foundry services | (0.2 | ) | (2.1 | ) | — | — | (0.2 | ) | 1.1 | 10.5 | — | — | 1.1 | |||||||||||||||||||||||||||
Total gross profit | $ | 28.6 | 22.9 | % | $ | 35.3 | 23.6 | % | $ | (6.7 | ) | $ | 34.0 | 29.8 | % | $ | 32.1 | 27.0 | % | $ | 1.8 | |||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Net Sales – standard products business | Amount | % of Net Sales – standard products business | Change Amount | Amount | % of Net sales – standard products business | Amount | % of Net sales – standard products business | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Korea | $ | 28.4 | 24.4 | % | $ | 36.1 | 25.9 | % | $ | (7.7 | ) | $ | 30.9 | 29.9 | % | $ | 22.0 | 20.2 | % | $ | 8.9 | |||||||||||||||||||
Asia Pacific (other than Korea) | 84.2 | 72.4 | 100.9 | 72.4 | (16.7 | ) | 69.4 | 67.2 | 84.2 | 77.3 | (14.9 | ) | ||||||||||||||||||||||||||||
United States | 1.8 | 1.5 | 0.5 | 0.3 | 1.3 | 1.4 | 1.3 | 1.5 | 1.3 | (0.1 | ) | |||||||||||||||||||||||||||||
Europe | 1.5 | 1.2 | 1.5 | 1.1 | (0.1 | ) | 1.2 | 1.2 | 0.9 | 0.8 | 0.4 | |||||||||||||||||||||||||||||
Others | 0.5 | 0.4 | 0.3 | 0.2 | 0.2 | 0.5 | 0.5 | 0.5 | 0.4 | 0.0 | ||||||||||||||||||||||||||||||
$ | 116.3 | 100.0 | % | $ | 139.3 | 100.0 | % | $ | (23.0 | ) | $ | 103.3 | 100.0 | % | $ | 109.0 | 100.0 | % | $ | (5.7 | ) | |||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Net sales – standard products business | $ | 336.0 | 92.3 | % | $ | 371.5 | 93.5 | % | $ | (35.6 | ) | $ | 216.2 | 91.3 | % | $ | 219.7 | 91.8 | % | $ | (3.5 | ) | ||||||||||||||||||
Net sales – transitional Fab 3 foundry services | 28.2 | 7.7 | 25.8 | 6.5 | 2.4 | 20.7 | 8.7 | 19.6 | 8.2 | 1.1 | ||||||||||||||||||||||||||||||
Total revenues | 364.1 | 100.0 | 397.3 | 100.0 | (33.2 | ) | 236.9 | 100.0 | 239.3 | 100.0 | (2.4 | ) | ||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Cost of sales – standard products business | 245.9 | 67.5 | 285.6 | 71.9 | (39.7 | ) | 149.7 | 63.2 | 158.4 | 66.2 | (8.8 | ) | ||||||||||||||||||||||||||||
Cost of sales – transitional Fab 3 foundry services | 28.3 | 7.8 | 25.8 | 6.5 | 2.6 | 18.9 | 8.0 | 19.6 | 8.2 | (0.7 | ) | |||||||||||||||||||||||||||||
Total cost of sales | 274.3 | 75.3 | 311.4 | 78.4 | (37.2 | ) | 168.5 | 71.1 | 178.0 | 74.4 | (9.5 | ) | ||||||||||||||||||||||||||||
Gross profit | 89.9 | 24.7 | 85.9 | 21.6 | 4.0 | 68.4 | 28.9 | 61.3 | 25.6 | 7.1 | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 37.4 | 10.3 | 33.8 | 8.5 | 3.6 | 26.6 | 11.2 | 24.5 | 10.2 | 2.1 | ||||||||||||||||||||||||||||||
Research and development expenses | 34.1 | 9.4 | 34.0 | 8.6 | 0.0 | 26.7 | 11.3 | 21.6 | 9.0 | 5.1 | ||||||||||||||||||||||||||||||
Other charges | 0.6 | 0.2 | — | — | 0.6 | 15.4 | 6.5 | 0.6 | 0.2 | 14.9 | ||||||||||||||||||||||||||||||
Operating income | 17.8 | 4.9 | 18.0 | 4.5 | (0.2 | ) | ||||||||||||||||||||||||||||||||||
Operating income (loss) | (0.5 | ) | (0.2 | ) | 14.6 | 6.1 | (15.1 | ) | ||||||||||||||||||||||||||||||||
Interest expense | (16.5 | ) | (4.5 | ) | (16.6 | ) | (4.2 | ) | 0.1 | (1.1 | ) | (0.5 | ) | (11.0 | ) | (4.6 | ) | 9.9 | ||||||||||||||||||||||
Foreign currency loss, net | (13.6 | ) | (3.7 | ) | (44.2 | ) | (11.1 | ) | 30.5 | (4.4 | ) | (1.9 | ) | (22.5 | ) | (9.4 | ) | 18.1 | ||||||||||||||||||||||
Loss on early extinguishment of long-term borrowings, net | — | — | (0.0 | ) | (0.0 | ) | 0.0 | |||||||||||||||||||||||||||||||||
Others, net | 2.3 | 0.6 | 1.8 | 0.5 | 0.5 | 1.2 | 0.5 | 1.6 | 0.7 | (0.4 | ) | |||||||||||||||||||||||||||||
(27.8 | ) | (7.6 | ) | (59.0 | ) | (14.9 | ) | 31.2 | (4.3 | ) | (1.8 | ) | (31.9 | ) | (13.3 | ) | 27.6 | |||||||||||||||||||||||
Loss from continuing operations before income tax expense | (10.0 | ) | (2.7 | ) | (41.0 | ) | (10.3 | ) | 31.0 | (4.8 | ) | (2.0 | ) | (17.3 | ) | (7.2 | ) | 12.5 | ||||||||||||||||||||||
Income tax expense | 0.8 | 0.2 | 3.3 | 0.8 | (2.5 | ) | 2.9 | 1.2 | 2.0 | 0.8 | 0.9 | |||||||||||||||||||||||||||||
Loss from continuing operations | (10.8 | ) | (3.0 | ) | (44.3 | ) | (11.1 | ) | 33.4 | (7.7 | ) | (3.2 | ) | (19.3 | ) | (8.1 | ) | 11.6 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 289.2 | 79.4 | (1.0 | ) | (0.2 | ) | 290.2 | |||||||||||||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | 24.7 | 10.3 | (24.7 | ) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 278.4 | 76.5 | $ | (45.3 | ) | (11.4 | ) | $ | 323.6 | $ | (7.7 | ) | (3.2 | ) | $ | 5.4 | 2.3 | $ | (13.1 | ) | |||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Change Amount | Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Net sales – standard products business | ||||||||||||||||||||||||||||||||||||||||
Display Solutions | $ | 216.4 | 59.4 | % | $ | 233.0 | 58.7 | % | $ | (16.7 | ) | $ | 105.5 | 44.5 | % | $ | 146.8 | 61.3 | % | $ | (41.3 | ) | ||||||||||||||||||
Power Solutions | 119.6 | 32.8 | 138.5 | 34.9 | (18.9 | ) | 110.7 | 46.7 | 72.9 | 30.5 | 37.8 | |||||||||||||||||||||||||||||
Total standard products business | 336.0 | 92.3 | 371.5 | 93.5 | (35.6 | ) | 216.2 | 91.3 | 219.7 | 91.8 | (3.5 | ) | ||||||||||||||||||||||||||||
Net sales – transitional Fab 3 foundry services | 28.2 | 7.7 | 25.8 | 6.5 | 2.4 | 20.7 | 8.7 | 19.6 | 8.2 | 1.1 | ||||||||||||||||||||||||||||||
Total revenues | $ | 364.1 | 100.0 | % | $ | 397.3 | 100.0 | % | $ | (33.2 | ) | $ | 236.9 | 100.0 | % | $ | 239.3 | 100.0 | % | $ | (2.4 | ) | ||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Net sales | Amount | % of Net sales | Change Amount | Amount | % of Net sales | Amount | % of Net sales | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Gross Profit | ||||||||||||||||||||||||||||||||||||||||
Gross profit – standard products business | $ | 90.0 | 26.8 | % | $ | 85.9 | 23.1 | % | $ | 4.1 | $ | 66.5 | 30.8 | % | $ | 61.3 | 27.9 | % | $ | 5.3 | ||||||||||||||||||||
Gross profit – transitional Fab 3 foundry services | (0.2 | ) | (0.6 | ) | — | — | (0.2 | ) | 1.8 | 8.9 | — | — | 1.8 | |||||||||||||||||||||||||||
Total gross profit | $ | 89.9 | 24.7 | % | $ | 85.9 | 21.6 | % | $ | 4.0 | $ | 68.4 | 28.9 | % | $ | 61.3 | 25.6 | % | $ | 7.1 | ||||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Amount | % of Net Sales – standard products business | Amount | % of Net Sales – standard products business | Change Amount | Amount | % of Net sales – standard products business | Amount | % of Net sales – standard products business | Change Amount | |||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Korea | $ | 81.1 | 24.2 | % | $ | 107.3 | 28.9 | % | $ | (26.2 | ) | $ | 57.3 | 26.5 | % | $ | 52.8 | 24.0 | % | $ | 4.5 | |||||||||||||||||||
Asia Pacific (other than Korea) | 245.9 | 73.2 | 258.3 | 69.5 | (12.3 | ) | 153.1 | 70.8 | 161.8 | 73.6 | (8.7 | ) | ||||||||||||||||||||||||||||
United States | 4.0 | 1.2 | 1.6 | 0.4 | 2.4 | 2.6 | 1.2 | 2.2 | 1.0 | 0.5 | ||||||||||||||||||||||||||||||
Europe | 3.3 | 1.0 | 3.5 | .0.9 | (0.2 | ) | 2.4 | 1.1 | 1.8 | 0.8 | 0.6 | |||||||||||||||||||||||||||||
Others | 1.6 | 0.5 | 0.8 | 0.2 | 0.8 | 0.7 | 0.3 | 1.2 | 0.5 | (0.5 | ) | |||||||||||||||||||||||||||||
$ | 336.0 | 100.0 | % | $ | 371.5 | 100.0 | % | $ | (35.6 | ) | $ | 216.2 | 100.0 | % | $ | 219.7 | 100.0 | % | $ | (3.5 | ) | |||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||||||||||
Total | Remainder of 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Exchangeable Notes(1) | $ | 85.8 | $ | — | $ | 85.8 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Senior Notes(2) | 227.4 | 227.4 | — | — | — | — | — | |||||||||||||||||||||
Operating leases(3) | 2.2 | 0.4 | 1.5 | 0.3 | 0.0 | — | — | |||||||||||||||||||||
Finance leases(3) | 0.2 | 0.0 | 0.1 | 0.1 | 0.1 | — | — | |||||||||||||||||||||
Water Treatment Services(3)(4) | 29.2 | 1.0 | 4.0 | 3.9 | 3.9 | 3.7 | 12.7 | |||||||||||||||||||||
Others(5) | 13.0 | 4.5 | 5.2 | 1.4 | 0.8 | 0.6 | 0.4 |
Payments Due by Period | ||||||||||||||||||||||||||||
Total | Remainder of 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Operating leases(1) | $ | 4.8 | $ | 1.4 | $ | 1.6 | $ | 0.8 | $ | 0.6 | $ | 0.4 | $ | — | ||||||||||||||
Finance leases(1) | 0.2 | 0.0 | 0.1 | 0.1 | — | — | — | |||||||||||||||||||||
Water Treatment Services(1)(2) | 27.2 | 2.1 | 4.1 | 4.0 | 3.9 | 3.8 | 9.3 | |||||||||||||||||||||
Others(3) | 9.1 | 1.9 | 4.1 | 3.0 | 0.1 | 0.1 | — |
(1) |
Assumes constant currency exchange rate for Korean won to U.S. dollars of |
Includes future payments for water treatment services for our fabrication facility in Gumi, Korea based on the contractual terms. |
Includes license agreements |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 6. | Exhibits. |
# | Filed herewith |
† | Furnished herewith |
MAGNACHIP SEMICONDUCTOR CORPORATION (Registrant) | ||||||
Dated: | By: | /s/ Young-Joon Kim | ||||
Young-Joon Kim | ||||||
Chief Executive Officer (Principal Executive Officer) | ||||||
Dated: | By: | /s/ Young Soo Woo | ||||
Young Soo Woo | ||||||
Chief Financial Officer (Principal Financial Officer) |