☒ | 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 | ||
Preferred Stock Purchase Rights | 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. | 26 | |||||||
Item 3. | 44 | |||||||
Item 4. | 45 | |||||||
46 | ||||||||
Item 1. | 46 | |||||||
Item 1A. | 46 | |||||||
Item 2. | 46 | |||||||
Item 6. | 47 | |||||||
Item 1. | Interim Consolidated Financial Statements (Unaudited) |
March 31, 2021 | December 31, 2020 | |||||||
(In thousands of US dollars, except share data) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 290,194 | $ | 279,940 | ||||
Accounts receivable, net | 52,250 | 64,390 | ||||||
Inventories, net | 29,964 | 39,039 | ||||||
Other receivables | 5,649 | 4,338 | ||||||
Prepaid expenses | 9,136 | 7,332 | ||||||
Hedge collateral | 5,250 | 5,250 | ||||||
Other current assets (Notes 10 and 18) | 2,435 | 9,321 | ||||||
Total current assets | 394,878 | 409,610 | ||||||
Property, plant and equipment, net | 91,014 | 96,383 | ||||||
Operating lease right-of-use | 4,592 | 4,632 | ||||||
Intangible assets, net | 2,602 | 2,727 | ||||||
Long-term prepaid expenses | 5,993 | 4,058 | ||||||
Deferred income taxes | 42,906 | 44,541 | ||||||
Other non-current assets | 9,422 | 9,739 | ||||||
Total assets | $ | 551,407 | $ | 571,690 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 43,357 | $ | 52,164 | ||||
Other accounts payable | 8,261 | 2,531 | ||||||
Accrued expenses | 17,867 | 16,241 | ||||||
Accrued income taxes | 1,224 | 12,398 | ||||||
Operating lease liabilities | 2,352 | 2,210 | ||||||
Current portion of long-term borrowings, net | — | 83,479 | ||||||
Other current liabilities (Note 10) | 6,558 | 4,595 | ||||||
Total current liabilities | 79,619 | 173,618 | ||||||
Accrued severance benefits, net | 39,070 | 40,462 | ||||||
Non-current operating lease liabilities | 2,240 | 2,422 | ||||||
Other non-current liabilities | 10,131 | 9,588 | ||||||
Total liabilities | 131,060 | 226,090 | ||||||
Commitments and contingencies (Note 18) | ||||||||
Stockholders’ equity | ||||||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 55,469,375 shares issued and 46,257,413 outstanding at March 31, 2021 and 44,943,854 shares issued and 35,783,347 outstanding at December 31, 2020 | 555 | 450 | ||||||
Additional paid-in capital | 250,829 | 163,010 | ||||||
Retained earnings | 279,361 | 286,834 | ||||||
Treasury stock, 9,211,962 shares at March 31, 2021 and 9,160,507 shares at December 31, 2020, respectively | (109,407 | ) | (108,397 | ) | ||||
Accumulated other comprehensive income (loss) | (991 | ) | 3,703 | |||||
Total stockholders’ equity | 420,347 | 345,600 | ||||||
Total liabilities and stockholders’ equity | $ | 551,407 | $ | 571,690 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(In thousands of U.S. dollars, except share data) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 284,921 | $ | 279,547 | ||||
Accounts receivable, net | 51,208 | 50,954 | ||||||
Inventories, net | 36,947 | 39,370 | ||||||
Other receivables (Notes 1 6 and 18 ) | 26,121 | 25,895 | ||||||
Prepaid expenses | 9,124 | 7,675 | ||||||
Hedge collateral (Note 7) | 4,060 | 3,060 | ||||||
Other current assets (Note 1 7 ) | 9,262 | 2,619 | ||||||
Total current assets | 421,643 | 409,120 | ||||||
Property, plant and equipment, net | 102,675 | 107,882 | ||||||
Operating lease right-of-use | 3,719 | 4,275 | ||||||
Intangible assets, net | 2,203 | 2,377 | ||||||
Long-term prepaid expenses | 6,771 | 8,243 | ||||||
Deferred income taxes | 40,246 | 41,095 | ||||||
Other non-current assets | 10,608 | 10,662 | ||||||
Total assets | $ | 587,865 | $ | 583,654 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 37,566 | $ | 37,593 | ||||
Other accounts payable | 7,707 | 6,289 | ||||||
Accrued expenses (Note 6) | 20,573 | 20,071 | ||||||
Accrued income taxes | 9,361 | 11,823 | ||||||
Operating lease liabilities | 2,223 | 2,323 | ||||||
Other current liabilities | 6,989 | 7,382 | ||||||
Total current liabilities | 84,419 | 85,481 | ||||||
Accrued severance benefits, net | 32,572 | 33,064 | ||||||
Non-current operating lease liabilities | 1,496 | 1,952 | ||||||
Other non-current liabilities | 8,216 | 10,395 | ||||||
Total liabilities | 126,703 | 130,892 | ||||||
Commitments and contingencies (Note 1 7 ) | 0 | 0 | ||||||
Stockholders’ equity | ||||||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 56,225,441 shares issued and44,894,385 outstanding at March 31, 2022 and 55,905,320 shares issued and 45,659,304 outstanding at December 31, 2021 | 562 | 559 | ||||||
Additional paid-in capital | 261,830 | 241,197 | ||||||
Retained earnings | 353,070 | 343,542 | ||||||
Treasury stock, 11,331,056 shares at March 31, 2022 and 10,246,016 shares at December 31, 2021, respectively | (148,523 | ) | (130,306 | ) | ||||
Accumulated other comprehensive loss | (5,777 | ) | (2,230 | ) | ||||
Total stockholders’ equity | 461,162 | 452,762 | ||||||
Total liabilities and stockholders’ equity | $ | 587,865 | $ | 583,654 | ||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
(In thousands of US dollars, except share data) | ||||||||
Revenues: | ||||||||
Net sales – standard products business | $ | 112,906 | $ | 110,736 | ||||
Net sales – transitional Fab 3 foundry services | 10,113 | 9,737 | ||||||
Total revenues | 123,019 | 120,473 | ||||||
Cost of sales: | ||||||||
Cost of sales – standard products business | 79,247 | 81,606 | ||||||
Cost of sales – transitional Fab 3 foundry services | 9,390 | 9,737 | ||||||
Total cost of sales | 88,637 | 91,343 | ||||||
Gross profit | 34,382 | 29,130 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 12,634 | 12,102 | ||||||
Research and development expenses | 13,423 | 10,509 | ||||||
Other charges | 10,416 | 554 | ||||||
Total operating expenses | 36,473 | 23,165 | ||||||
Operating income (loss) | (2,091 | ) | 5,965 | |||||
Interest expense | (1,041 | ) | (5,607 | ) | ||||
Foreign currency loss, net | (4,671 | ) | (30,971 | ) | ||||
Other income, net | 620 | 838 | ||||||
Loss from continuing operations before income tax expense | (7,183 | ) | (29,775 | ) | ||||
Income tax expense | 290 | 1,303 | ||||||
Loss from continuing operations | (7,473 | ) | (31,078 | ) | ||||
Income from discontinued operations, net of tax | 0 | 7,329 | ||||||
Net loss | $ | (7,473 | ) | $ | (23,749 | ) | ||
Basic and diluted loss per common share— | ||||||||
Continuing operations | $ | (0.19 | ) | $ | (0.89 | ) | ||
Discontinued operations | 0 | 0.21 | ||||||
Total | $ | (0.19 | ) | $ | (0.68 | ) | ||
Weighted average number of shares – basic and diluted | 40,292,838 | 34,893,157 | ||||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
(In thousands of US dollars) | ||||||||
Net loss | $ | (7,473 | ) | $ | (23,749 | ) | ||
Other comprehensive income (loss) | ||||||||
Foreign currency translation adjustments | (2,058 | ) | 22,251 | |||||
Derivative adjustments | ||||||||
Fair valuation of derivatives | (2,125 | ) | (5,004 | ) | ||||
Reclassification adjustment for loss (gain) on derivatives included in net loss | (511 | ) | 58 | |||||
Total other comprehensive income (loss) | (4,694 | ) | 17,305 | |||||
Total comprehensive loss | $ | (12,167 | ) | $ | (6,444 | ) | ||
Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||
Common Stock | Retained Earnings (Deficit) | Treasury Stock | Total | |||||||||||||||||||||||||
(In thousands of US dollars, except share data) | Shares | Amount | ||||||||||||||||||||||||||
Three Months Ended March 31, 2021: | ||||||||||||||||||||||||||||
Balance at December 31, 2020 | 35,783,347 | $ | 450 | $ | 163,010 | $ | 286,834 | $ | (108,397 | ) | $ | 3,703 | $ | 345,600 | ||||||||||||||
Stock-based compensation | — | — | 1,646 | — | — | — | 1,646 | |||||||||||||||||||||
Exchange of exchangeable senior notes | 10,144,131 | 101 | 83,639 | — | — | — | 83,740 | |||||||||||||||||||||
Exercise of stock options | 175,760 | 2 | 2,536 | — | — | — | 2,538 | |||||||||||||||||||||
Settlement of restricted stock units | 205,630 | 2 | (2 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (51,455 | ) | — | — | — | (1,010 | ) | — | (1,010 | ) | ||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (4,694 | ) | (4,694 | ) | |||||||||||||||||||
Net loss | — | — | — | (7,473 | ) | — | — | (7,473 | ) | |||||||||||||||||||
Balance at March 31, 2021 | 46,257,413 | $ | 555 | $ | 250,829 | $ | 279,361 | $ | (109,407 | ) | $ | (991 | ) | $ | 420,347 | |||||||||||||
Three Months Ended March 31, 2020: | ||||||||||||||||||||||||||||
Balance at December 31, 2019 | 34,800,312 | $ | 439 | $ | 152,404 | $ | (58,131 | ) | $ | (107,033 | ) | $ | (2,660 | ) | $ | (14,981 | ) | |||||||||||
Stock-based compensation | — | — | 885 | — | — | — | 885 | |||||||||||||||||||||
Settlement of restricted stock units | 308,364 | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (53,994 | ) | — | — | — | (616 | ) | — | (616 | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 17,305 | 17,305 | |||||||||||||||||||||
Net loss | — | — | — | (23,749 | ) | — | — | (23,749 | ) | |||||||||||||||||||
Balance at March 31, 2020 | 35,054,682 | $ | 442 | $ | 153,286 | $ | (81,880 | ) | $ | (107,649 | ) | $ | 14,645 | $ | (21,156 | ) | ||||||||||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
(In thousands of U.S. dollars, except share data) | ||||||||
Revenues: | ||||||||
Net sales – standard products business | $ | 94,010 | $ | 112,906 | ||||
Net sales – transitional Fab 3 foundry services | 10,083 | 10,113 | ||||||
Total revenues | 104,093 | 123,019 | ||||||
Cost of sales: | ||||||||
Cost of sales – standard products business | 56,080 | 79,247 | ||||||
Cost of sales – transitional Fab 3 foundry services | 9,017 | 9,390 | ||||||
Total cost of sales | 65,097 | 88,637 | ||||||
Gross profit | 38,996 | 34,382 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 14,163 | 12,634 | ||||||
Research and development expenses | 11,954 | 13,423 | ||||||
Merger-related costs | — | 9,831 | ||||||
Other charges | — | 585 | ||||||
Total operating expenses | 26,117 | 36,473 | ||||||
Operating income (loss) | 12,879 | (2,091 | ) | |||||
Interest expense | (111 | ) | (1,041 | ) | ||||
Foreign currency loss, net | (690 | ) | (4,671 | ) | ||||
Other income, net | 933 | 620 | ||||||
Income (loss) before income tax expense | 13,011 | (7,183 | ) | |||||
Income tax expense | 3,483 | 290 | ||||||
Net income (loss) | $ | 9,528 | $ | (7,473 | ) | |||
Basic earnings (loss) per common share— | $ | 0.21 | $ | (0.19 | ) | |||
Diluted earnings (loss) per common share— | $ | 0.20 | $ | (0.19 | ) | |||
Weighted average number of shares— | ||||||||
Basic | 45,603,208 | 40,292,838 | ||||||
Diluted | 46,693,294 | 40,292,838 |
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
(In thousands of US dollars) | ||||||||
Net income (loss) | $ | 9,528 | $ | (7,473 | ) | |||
Other comprehensive loss | ||||||||
Foreign currency translation adjustments | (3,045 | ) | (2,058 | ) | ||||
Derivative adjustments | ||||||||
Fair valuation of derivatives | (1,264 | ) | (2,125 | ) | ||||
Reclassification adjustment for loss (gain) on derivatives included in net income (loss) | 762 | (511 | ) | |||||
Total other comprehensive loss | (3,547 | ) | (4,694 | ) | ||||
Total comprehensive income (loss) | $ | 5,981 | $ | (12,167 | ) | |||
Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||
Common Stock | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||||
(In thousands of U.S. dollars, except share data) | Shares | Amount | ||||||||||||||||||||||||||
Three Months Ended March 31, 2022: | ||||||||||||||||||||||||||||
Balance at December 31, 2021 | 45,659,304 | $ | 559 | $ | 241,197 | $ | 343,542 | $ | (130,306 | ) | $ | (2,230 | ) | $ | 452,762 | |||||||||||||
Stock-based compensation | — | — | 1,638 | — | — | — | 1,638 | |||||||||||||||||||||
Exercise of stock options | 151,326 | 1 | 1,780 | — | — | — | 1,781 | |||||||||||||||||||||
Settlement of restricted stock units | 168,795 | 2 | (2 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (53,464 | ) | — | 0 | — | (1,000 | ) | — | (1,000 | ) | ||||||||||||||||||
Accelerated stock repurchase | (1,031,576 | ) | — | 17,217 | — | (17,217 | ) | — | — | |||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (3,547 | ) | (3,547 | ) | |||||||||||||||||||
Net income | — | — | — | 9,528 | — | — | 9,528 | |||||||||||||||||||||
Balance at March 31, 2022 | 44,894,385 | $ | 562 | $ | 261,830 | $ | 353,070 | $ | (148,523 | ) | $ | (5,777 | ) | $ | 461,162 | |||||||||||||
Three Months Ended March 31, 2021: | ||||||||||||||||||||||||||||
Balance at December 31, 2020 | 35,783,347 | $ | 450 | $ | 163,010 | $ | 286,834 | $ | (108,397 | ) | $ | 3,703 | $ | 345,600 | ||||||||||||||
Stock-based compensation | — | — | 1,646 | — | — | — | 1,646 | |||||||||||||||||||||
Exchange of exchangeable senior notes | 10,144,131 | 101 | 83,639 | — | — | — | 83,740 | |||||||||||||||||||||
Exercise of stock options | 175,760 | 2 | 2,536 | — | — | — | 2,538 | |||||||||||||||||||||
Settlement of restricted stock units | 205,630 | 2 | (2 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (51,455 | ) | — | — | — | (1,010 | ) | — | (1,010 | ) | ||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (4,694 | ) | (4,694 | ) | |||||||||||||||||||
Net loss | — | — | — | (7,473 | ) | — | — | (7,473 | ) | |||||||||||||||||||
Balance at March 31, 2021 | 46,257,413 | $ | 555 | $ | 250,829 | $ | 279,361 | $ | (109,407 | ) | $ | (991 | ) | $ | 420,347 | |||||||||||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
(In thousands of US dollars) | ||||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (7,473 | ) | $ | (23,749 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
Depreciation and amortization | 3,448 | 7,935 | ||||||
Provision for severance benefits | 1,771 | 5,071 | ||||||
Amortization of debt issuance costs and original issue discount | 261 | 598 | ||||||
Loss on foreign currency, net | 14,873 | 38,480 | ||||||
Restructuring and other charges | 9,504 | 2,138 | ||||||
Provision for inventory reserves | 1,504 | 570 | ||||||
Stock-based compensation | 1,646 | 885 | ||||||
Deferred income tax assets | 30 | 23 | ||||||
Others, net | 124 | 107 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable, net | 9,794 | (10,430 | ) | |||||
Unbilled accounts receivable, net | — | 6,937 | ||||||
Inventories | 6,071 | (4,863 | ) | |||||
Other receivables | (1,438 | ) | 1,982 | |||||
Other current assets | 5,427 | 909 | ||||||
Accounts payable | (7,701 | ) | 1,988 | |||||
Other accounts payable | (2,009 | ) | (1,817 | ) | ||||
Accrued expenses | (3,532 | ) | (6,611 | ) | ||||
Accrued income taxes | (10,700 | ) | (274 | ) | ||||
Other current liabilities | 1,087 | 1,336 | ||||||
Other non-current liabilities | 18 | 1,808 | ||||||
Payment of severance benefits | (1,493 | ) | (2,080 | ) | ||||
Others, net | 12 | 125 | ||||||
Net cash provided by operating activities | 21,224 | 21,068 | ||||||
Cash flows from investing activities | ||||||||
Proceeds from settlement of hedge collateral | — | 4,239 | ||||||
Payment of hedge collateral | — | (7,841 | ) | |||||
Purchase of property, plant and equipment | (1,082 | ) | (3,351 | ) | ||||
Payment for intellectual property registration | (171 | ) | (229 | ) | ||||
Payment of guarantee deposits | (76 | ) | — | |||||
Other s , net | (35 | ) | 55 | |||||
Net cash used in investing activities | (1,364 | ) | (7,127 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 2,538 | — | ||||||
Acquisition of treasury stock | (1,540 | ) | (1,021 | ) | ||||
Repayment of financing related to water treatment facility arrangement | (144 | ) | (135 | ) | ||||
Repayment of principal portion of finance lease liabilities | (16 | ) | (60 | ) | ||||
Net cash provided by (used in) financing activities | 838 | (1,216 | ) | |||||
Effect of exchange rates on cash and cash equivalents | (10,444 | ) | (7,089 | ) | ||||
Net increase in cash and cash equivalents | 10,254 | 5,636 | ||||||
Cash and cash equivalents | ||||||||
Beginning of the period | 279,940 | 151,657 | ||||||
End of the period | $ | 290,194 | $ | 157,293 | ||||
Supplemental cash flow information | ||||||||
Cash paid for interest | $ | 2,094 | $ | 9,522 | ||||
Cash paid for income taxes | $ | 9,633 | $ | 1,534 | ||||
Non-cash investing activities | ||||||||
Property, plant and equipment additions in other accounts payable | $ | 622 | $ | 687 | ||||
Non-cash financing activities | ||||||||
Exchange of exchangeable senior notes into common stock | $ | 83,740 | $ | — | ||||
Acquisition of treasury stock to satisfy the tax withholding obligations in connection with equity-based compensation | $ | (114 | ) | $ | — |
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
(In thousands of U.S. dollars) | ||||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 9,528 | $ | (7,473 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||
Depreciation and amortization | 3,891 | 3,448 | ||||||
Provision for severance benefits | 1,670 | 1,771 | ||||||
Amortization of debt issuance costs and original issue discount | — | 261 | ||||||
Loss on foreign currency, net | 6,380 | 14,873 | ||||||
Provision for inventory reserves | 145 | 1,504 | ||||||
Stock-based compensation | 1,638 | 1,646 | ||||||
Other, net | 161 | 154 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable, net | (1,213 | ) | 9,794 | |||||
Inventories | 1,456 | 6,071 | ||||||
Other receivables | 667 | (1,438 | ) | |||||
Other current assets | (6,829 | ) | 5,427 | |||||
Accounts payable | 538 | (7,701 | ) | |||||
Other accounts payable | (702 | ) | 1,570 | |||||
Accrued expenses | 187 | 2,393 | ||||||
Accrued income taxes | (2,346 | ) | (10,700 | ) | ||||
Other current liabilities | (711 | ) | 1,087 | |||||
Other non-current liabilities | (73 | ) | 18 | |||||
Payment of severance benefits | (1,389 | ) | (1,493 | ) | ||||
Other, net | (178 | ) | 12 | |||||
Net cash provided by operating activities | 12,820 | 21,224 | ||||||
Cash flows from investing activities | ||||||||
Proceeds from settlement of hedge collateral | 1,829 | — | ||||||
Payment of hedge collateral | (2,891 | ) | — | |||||
Purchase of property, plant and equipment | (944 | ) | (1,082 | ) | ||||
Payment for intellectual property registration | (59 | ) | (171 | ) | ||||
Other, net | (77 | ) | (111 | ) | ||||
Net cash used in investing activities | (2,142 | ) | (1,364 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 1,781 | 2,538 | ||||||
Acquisition of treasury stock | (830 | ) | (1,540 | ) | ||||
Repayment of financing related to water treatment facility arrangement | (134 | ) | (144 | ) | ||||
Repayment of principal portion of finance lease liabilities | (16 | ) | (16 | ) | ||||
Net cash used in financing activities | 801 | 838 | ||||||
Effect of exchange rates on cash and cash equivalents | (6,105 | ) | (10,444 | ) | ||||
Net increase in cash and cash equivalents | 5,374 | 10,254 | ||||||
Cash and cash equivalents at beginning of period | 279,547 | 279,940 | ||||||
Cash and cash equivalents at end of period | $ | 284,921 | $ | 290,194 | ||||
Supplemental cash flow information | ||||||||
Cash paid for interest | $ | — | $ | 2,094 | ||||
Cash paid for income taxes | $ | 5,421 | $ | 9,633 | ||||
Non-cash investing activities | ||||||||
Property, plant and equipment additions in other accounts payable | $ | 524 | $ | 622 | ||||
Non-cash financing activities | ||||||||
Exchange of exchangeable senior notes into common stock | $ | — | $ | 83,740 | ||||
Acquisition of treasury stock to satisfy the tax withholding obligations in connection with equity-based compensation | $ | (996 | ) | $ | (114 | ) |
Three Months Ended | ||||
March 31, 2020 | ||||
(In thousands of US dollars) | ||||
Revenues: | ||||
Net sales – Foundry Services Group | $ | 86,279 | ||
Net sales – transitional Fab 3 foundry services | (9,737 | ) | ||
Total revenues | 76,542 | |||
Cost of sales: | ||||
Cost of sales – Foundry Services Group | 65,583 | |||
Cost of sales – transitional Fab 3 foundry services | (9,737 | ) | ||
Total cost of sales | 55,846 | |||
Gross profit | 20,696 | |||
Operating expenses: | ||||
Selling, general and administrative expenses | 5,644 | |||
Research and development expenses | 7,403 | |||
Restructuring and other charges | 2,115 | |||
Total operating expenses | 15,162 | |||
Operating income from discontinued operations | 5,534 | |||
Foreign currency gain, net | 2,097 | |||
Other income | 107 | |||
Income from discontinued operations before income tax expense | 7,738 | |||
Income tax expense | 409 | |||
Income from discontinued operations, net of tax | $ | 7,329 | ||
Three Months Ended | ||||
March 31, 2020 | ||||
(In thousands of US dollars) | ||||
Significant non-cash operating activities: | ||||
Depreciation and amortization | $ | 5,365 | ||
Provision for severance benefits | 3,052 | |||
Stock-based compensation | 123 | |||
Investing activities: | ||||
Capital expenditures | $ | (1,479 | ) |
March 31, 2021 | December 31, 2020 | |||||||
Finished goods | $ | 4,660 | $ | 6,425 | ||||
Semi-finished goods and work-in-process | 24,449 | 30,968 | ||||||
Raw materials | 6,400 | 6,526 | ||||||
Materials in-transit | 736 | 1,021 | ||||||
Less: inventory reserve | (6,281 | ) | (5,901 | ) | ||||
Inventories, net | $ | 29,964 | $ | 39,039 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Finished goods | $ | 5,591 | $ | 9,594 | ||||
Semi-finished goods and work-in-process | 25,119 | 25,968 | ||||||
Raw materials | 9,839 | 9,443 | ||||||
Materials in-transit | 1,953 | 95 | ||||||
Less: inventory reserve | (5,555 | ) | (5,730 | ) | ||||
Inventories, net | $ | 36,947 | $ | 39,370 | ||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Beginning balance | $ | (5,901 | ) | $ | (5,947 | ) | ||
Change in reserve | ||||||||
Inventory reserve charged to costs of sales | (2,164 | ) | (1,275 | ) | ||||
Sale of previously reserved inventory | 634 | 906 | ||||||
(1,530 | ) | (369 | ) | |||||
Write off | 902 | 499 | ||||||
Translation adjustments | 248 | 316 | ||||||
Reclassified to assets held for sale | — | 694 | ||||||
Ending balance | $ | (6,281 | ) | $ | (4,807 | ) | ||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Beginning balance | $ | (5,730 | ) | $ | (5,901 | ) | ||
Change in reserve | ||||||||
Inventory reserve charged to costs of sales | (1,607 | ) | (2,164 | ) | ||||
Sale of previously reserved inventory | 1,452 | 634 | ||||||
(155 | ) | (1,530 | ) | |||||
Write off | 211 | 902 | ||||||
Translation adjustments | 119 | 248 | ||||||
Ending balance | $ | (5,555 | ) | $ | (6,281 | ) | ||
March 31, 2021 | December 31, 2020 | |||||||
Buildings and related structures | $ | 24,110 | $ | 24,882 | ||||
Machinery and equipment | 102,365 | 106,244 | ||||||
Finance lease right-of-use | 330 | 344 | ||||||
Others | 39,600 | 40,116 | ||||||
166,405 | 171,586 | |||||||
Less: accumulated depreciation | (89,948 | ) | (90,370 | ) | ||||
Land | 14,557 | 15,167 | ||||||
Property, plant and equipment, net | $ | 91,014 | $ | 96,383 | ||||
March 31, 2021 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Intellectual property assets | $ | 9,288 | $ | (6,686 | ) | $ | 2,602 | |||||
Intangible assets | $ | 9,288 | $ | (6,686 | ) | $ | 2,602 | |||||
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 | |||||
March 31, 2022 | December 31, 2021 | |||||||
Buildings and related structures | $ | 24,003 | $ | 24,273 | ||||
Machinery and equipment | 103,386 | 105,300 | ||||||
Finance lease right-of-use | 309 | 316 | ||||||
Others | 32,682 | 32,396 | ||||||
160,380 | 162,285 | |||||||
Less: accumulated depreciation | (95,839 | ) | (94,119 | ) | ||||
Land | 13,608 | 13,898 | ||||||
Construction in progress | 24,526 | 25,818 | ||||||
Property, plant and equipment, net | $ | 102,675 | $ | 107,882 | ||||
March 31, 2022 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Intellectual property assets | $ | 9,180 | $ | (6,977 | ) | $ | 2,203 | |||||
Intangible assets | $ | 9,180 | $ | (6,977 | ) | $ | 2,203 | |||||
December 31, 2021 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Intellectual property assets | $ | 9,312 | $ | (6,935 | ) | $ | 2,377 | |||||
Intangible assets | $ | 9,312 | $ | (6,935 | ) | $ | 2,377 | |||||
Leases | Classification | March 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||||
Operating lease | Operating lease right-of-use assets | $ | 4,592 | $ | 4,632 | |||||
Finance lease | Property, plant and equipment, net | 181 | 206 | |||||||
Total lease assets | $ | 4,773 | $ | 4,838 | ||||||
Liabilities | ||||||||||
Current | ||||||||||
Operating | Operating lease liabilities | $ | 2,352 | $ | 2,210 | |||||
Finance | Other current liabilities | 67 | 68 | |||||||
Non-current | ||||||||||
Operating | Non-current operating lease liabilities | 2,240 | 2,422 | |||||||
Finance | Other non-current liabilities | 130 | 153 | |||||||
Total lease liabilities | $ | 4,789 | $ | 4,853 | ||||||
Leases | Classification | March 31, 2022 | December 31, 2021 | |||||||
Assets | ||||||||||
Operating lease | Operating lease right-of-use assets | $ | 3,719 | $ | 4,275 | |||||
Finance lease | Property, plant and equipment, net | 108 | 126 | |||||||
Total lease assets | $ | 3,827 | $ | 4,401 | ||||||
Liabilities | ||||||||||
Current | ||||||||||
Operating | Operating lease liabilities | $ | 2,223 | $ | 2,323 | |||||
Finance | Other current liabilities | 67 | 68 | |||||||
Non-current | ||||||||||
Operating | Non-current operating lease liabilities | 1,496 | 1,952 | |||||||
Finance | Other non-current liabilities | 54 | 73 | |||||||
Total lease liabilities | $ | 3,840 | $ | 4,416 | ||||||
March 31, 2021 | December 31, 2020 | |||||||
Weighted average remaining lease term | ||||||||
Operating leases | 2.9 years | 3.0 years | ||||||
Finance leases | 2.8 years | 3.0 years | ||||||
Weighted average discount rate | ||||||||
Operating leases | 5.15 | % | 5.55 | % | ||||
Finance leases | 7.75 | % | 7.75 | % |
March 31, 2022 | December 31, 2021 | |||||||
Weighted average remaining lease term | ||||||||
Operating leases | 2.3 years | 2.4 years | ||||||
Finance leases | 1.8 years | 2.0 years | ||||||
Weighted average discount rate | ||||||||
Operating leases | 4.12 | % | 4.20 | % | ||||
Finance leases | 7.75 | % | 7.75 | % |
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Operating lease cost | $ | 680 | $ | 468 | ||||
Finance lease cost | ||||||||
Amortization of right-of-use | 17 | 16 | ||||||
Interest on lease liabilities | 4 | 5 | ||||||
Total lease cost | $ | 701 | $ | 489 | ||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Operating lease cost | $ | 569 | $ | 680 | ||||
Finance lease cost | ||||||||
Amortization of right-of-use | 16 | 17 | ||||||
Interest on lease liabilities | 2 | 4 | ||||||
Total lease cost | $ | 587 | $ | 701 | ||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 680 | $ | 468 | ||||
Operating cash flows from finance leases | 4 | 5 | ||||||
Financing cash flows from finance leases | 16 | 14 |
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 569 | $ | 680 | ||||
Operating cash flows from finance leases | 2 | 4 | ||||||
Financing cash flows from finance leases | 16 | 16 |
Operating Leases | Finance Leases | |||||||
Remainder of 2021 | $ | 1,979 | $ | 60 | ||||
2022 | 1,349 | 79 | ||||||
2023 | 663 | 79 | ||||||
2024 | 540 | 0 | ||||||
2025 | 407 | 0 | ||||||
Total future lease payments | 4,938 | 218 | ||||||
Less: Imputed interest | (346 | ) | (21 | ) | ||||
Present value of future payments | $ | 4,592 | $ | 197 | ||||
Operating Leases | Finance Leases | |||||||
Remainder of 2022 | $ | 1,837 | $ | 56 | ||||
2023 | 1,079 | 74 | ||||||
2024 | 607 | 0 | ||||||
2025 | 393 | 0 | ||||||
Total future lease payments | 3,916 | 130 | ||||||
Less: Imputed interest | (197 | ) | (9 | ) | ||||
Present value of future payments | $ | 3,719 | $ | 121 | ||||
March 31, 2021 | December 31, 2020 | |||||||
Payroll, benefits and related taxes, excluding severance benefits | $ | 9,380 | $ | 10,296 | ||||
Withholding tax attributable to intercompany interest income | 512 | 28 | ||||||
Interest on senior notes | — | 1,396 | ||||||
Outside service fees | 1,461 | 755 | ||||||
Restructuring and others | 5,925 | 2,658 | ||||||
Others | 589 | 1,108 | ||||||
Accrued expenses | $ | 17,867 | $ | 16,241 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Payroll, benefits and related taxes, excluding severance benefits | $ | 8,854 | $ | 9,548 | ||||
Withholding tax attributable to intercompany interest income | 2,405 | 1,950 | ||||||
Outside service fees | 1,829 | 1,088 | ||||||
Merger-related costs | 6,325 | 7,035 | ||||||
Others | 1,160 | 450 | ||||||
Accrued expenses | $ | 20,573 | $ | 20,071 | ||||
Date of transaction | Total | Month of settlement | ||||
July 13, 2020 | $ | 15,000 | April 2021 to June 2021 | |||
December 15, 2020 | $ | 30,000 | July 2021 to December 2021 | |||
December 18, 2020 | $ | 9,000 | April 2021 to June 2021 | |||
February 26, 2021 | $ | 18,000 | July 2021 to December 2021 |
Date of transaction | Total notional amount | Month of settlement | ||||
May 13, 2021 | $ | 24,000 | April 2022 to September 2022 | |||
August 13, 2021 | $ | 39,000 | April 2022 to December 2022 | |||
January 04, 2022 | $ | 39,000 | October 2022 to June 2023 | |||
March 07, 2022 | $ | 24,000 | July 2023 to December 2023 |
Date of transaction | Total | Month of settlement | ||||
July 13, 2020 | $ | 30,000 | January 2021 to | |||
December 15, 2020 | $ | 30,000 | July 2021 to December 2021 | |||
December 18, 2020 | $ | 18,000 | March 2021 to June 2021 |
Date of transaction | Total notional amount | Month of settlement | ||||
May 13, 2021 | $ | 39,000 | January 2022 to September 2022 | |||
August 13, 2021 | $ | 48,000 | January 2022 to December 2022 |
Derivatives designated as hedging instruments: | March 31, 2021 | December 31, 2020 | ||||||||||
Asset Derivatives: | ||||||||||||
Zero cost collars | Other current assets | $ | 393 | $ | 2,036 | |||||||
Liability Derivatives: | ||||||||||||
Zero cost collars | Other current liabilities | $ | 1,243 | $ | 195 |
Derivatives designated as hedging instruments: | March 31, 2022 | December 31, 2021 | ||||||||
Asset Derivatives: | ||||||||||
Zero cost collars | Other non-current assets | $ | 94 | $ | 0 | |||||
Liability Derivatives: | ||||||||||
Zero cost collars | Other current liabilities | $ | 2,421 | $ | 2,020 | |||||
Zero cost collars | Other non-current liabilities | $ | 149 | $ | 0 |
As of March 31, 2021 | 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 | $ | 393 | $ | 0 | $ | 393 | $ | 0 | $ | 0 | $ | 393 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 1,243 | $ | 0 | $ | 1,243 | $ | 0 | $ | 0 | $ | 1,243 |
As of March 31, 2022 | 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 | $ | 94 | $ | 0 | $ | 94 | $ | 0 | $ | 0 | $ | 94 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 2,570 | $ | 0 | $ | 2,570 | $ | 0 | $ | (3,060) | $ | (490) |
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, 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 | $ | 2,020 | $ | 0 | $ | 2,020 | $ | 0 | $ | (2,060) | $ | (40) |
Derivatives in ASC 815 Cash Flow Hedging Relationships | 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 | |||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Zero cost collars | $ | (2,125 | ) | $ | (5,004 | ) | Net sales | $ | 511 | $ | (58 | ) | Other income, net | $ | (86 | ) | $ | 117 | ||||||||||||||
$ | (2,125 | ) | $ | (5,004 | ) | $ | 511 | $ | (58 | ) | $ | (86 | ) | $ | 117 | |||||||||||||||||
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Loss Recognized in AOCI on Derivatives | Location/Amount of Gain (Loss) Reclassified from AOCI Into Statement of Operations | Location/Amount of Loss Recognized in Statement of Operations on Derivatives | |||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||
Zero cost collars | $ | (1,264 | ) | $ | (2,125 | ) | Net sales | $ | (762 | ) | $ | 511 | Other income, net | $ | (129 | ) | $ | (86) | ||||||||||||||
$ | (1,264 | ) | $ | (2,125 | ) | $ | (762 | ) | $ | 511 | $ | (129 | ) | $ | (86) | |||||||||||||||||
Counterparties | March 31, 2021 | December 31, 2020 | ||||||
NFIK | $ | 3,250 | $ | 3,250 | ||||
DB | 1,000 | 1,000 | ||||||
SC | 1,000 | 1,000 | ||||||
Total | $ | 5,250 | $ | 5,250 | ||||
Counterparties | March 31, 2022 | December 31, 2021 | ||||||
SC | $ | 1,000 | $ | 1,000 | ||||
Total | $ | 1,000 | $ | 1,000 | ||||
Carrying Value March 31, 2021 | Fair Value Measurement March 31, 2021 | 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) | $ | 393 | $ | 393 | — | $ | 393 | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (other current liabilities) | $ | 1,243 | $ | 1,243 | — | $ | 1,243 | — |
Carrying Value March 31, 2022 | Fair Value Measurement March 31, 2022 | 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 non-current assets) | $ | 94 | $ | 94 | — | $ | 94 | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (other current liabilities) | $ | 2,421 | $ | 2,421 | — | $ | 2,421 | — | ||||||||||||
Derivative liabilities (other non-current liabilities) | $ | 149 | $ | 149 | — | $ | 149 | — |
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) | $ | 2,036 | $ | 2,036 | — | $ | 2,036 | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (other current liabilities) | $ | 195 | $ | 195 | — | $ | 195 | — |
Carrying Value December 31, 2021 | Fair Value Measurement December 31, 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) | $ | 2,020 | $ | 2,020 | — | $ | 2,020 | — |
December 31, 2020 | ||||||||
Carrying Value | Fair Value | |||||||
(In thousands of U.S. dollars) | ||||||||
Borrowings: | ||||||||
5.0% Exchangeable Senior Notes due March 2021 (Level 2) | $ | 83,479 | $ | 145,466 |
December 31, | ||||
2020 | ||||
5.0% Exchangeable Senior Notes due March 2021 | $ | 83,740 | ||
Less: unamortized discount and debt issuance costs | (261 | ) | ||
Total borrowings, net | 83,479 | |||
Less: current portion of long-term borrowings, net | 83,479 | |||
Long-term borrowings, net | $ | 0 | ||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Beginning balance | $ | 54,452 | $ | 53,344 | ||||
Provisions | 1,771 | 2,019 | ||||||
Severance payments | (1,493 | ) | (1,952 | ) | ||||
Translation adjustments | (2,177 | ) | (2,801 | ) | ||||
52,553 | 50,610 | |||||||
Less: Cumulative contributions to severance insurance deposit accounts | (13,212 | ) | (1,557 | ) | ||||
The National Pension Fund | (61 | ) | (75 | ) | ||||
Group severance insurance plan | (210 | ) | (213 | ) | ||||
Accrued severance benefits, net | $ | 39,070 | $ | 48,765 | ||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Beginning balance | $ | 51,567 | $ | 54,452 | ||||
Provisions | 1,670 | 1,771 | ||||||
Severance payments | (1,389 | ) | (1,493 | ) | ||||
Translation adjustments | (1,077 | ) | (2,177 | ) | ||||
50,771 | 52,553 | |||||||
Less: Cumulative contributions to severance insurance deposit accounts | (17,954 | ) | (13,212 | ) | ||||
The National Pension Fund | (50 | ) | (61 | ) | ||||
Group severance insurance plan | (195 | ) | (210 | ) | ||||
Accrued severance benefits, net | $ | 32,572 | $ | 39,070 | ||||
Severance benefit | Severance benefit | |||||||
Remainder of 2021 | $ | 79 | ||||||
2022 | 261 | |||||||
Remainder of 2022 | $ | 253 | ||||||
2023 | 653 | 631 | ||||||
2024 | 935 | 923 | ||||||
2025 | 2,062 | 1,505 | ||||||
2026 | 2,364 | 2,183 | ||||||
2027 – 2031 | 19,921 | |||||||
2027 | 1,746 | |||||||
2028 – 2032 | 20,679 |
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Revenues | ||||||||
Standard products business | ||||||||
Display Solutions | $ | 58,895 | $ | 77,593 | ||||
Power Solutions | 54,011 | 33,143 | ||||||
Total standard products business | $ | 112,906 | $ | 110,736 | ||||
Transitional Fab 3 foundry services | 10,113 | 9,737 | ||||||
Total revenues | $ | 123,019 | $ | 120,473 | ||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Revenues | ||||||||
Standard products business | ||||||||
Display Solutions | $ | 29,185 | $ | 58,895 | ||||
Power Solutions | 64,825 | 54,011 | ||||||
Total standard products business | $ | 94,010 | $ | 112,906 | ||||
Transitional Fab 3 foundry services | 10,083 | 10,113 | ||||||
Total revenues | $ | 104,093 | $ | 123,019 | ||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Gross Profit | ||||||||
Standard products business | $ | 33,659 | $ | 29,130 | ||||
Transitional Fab 3 foundry services | 723 | — | ||||||
Total gross profit | $ | 34,382 | $ | 29,130 | ||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Gross Profit | ||||||||
Standard products business | $ | 37,930 | $ | 33,659 | ||||
Transitional Fab 3 foundry services | 1,066 | 723 | ||||||
Total gross profit | $ | 38,996 | $ | 34,382 | ||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Korea | $ | 26,434 | $ | 30,817 | ||||
Asia Pacific (other than Korea) | 83,740 | 77,542 | ||||||
United States | 1,274 | 709 | ||||||
Europe | 1,243 | 971 | ||||||
Others | 215 | 697 | ||||||
Total | $ | 112,906 | $ | 110,736 | ||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Korea | $ | 31,030 | $ | 26,434 | ||||
Asia Pacific (other than Korea) | 58,260 | 83,740 | ||||||
United States | 2,864 | 1,274 | ||||||
Europe | 1,856 | 1,243 | ||||||
Others | 0 | 215 | ||||||
Total | $ | 94,010 | $ | 112,906 | ||||
March 31, 2021 | December 31, 2020 | |||||||
Foreign currency translation adjustments | $ | 11 | $ | 2,069 | ||||
Derivative adjustments | (1,002 | ) | 1,634 | |||||
Total | $ | (991 | ) | $ | 3,703 | |||
Three Months Ended March 31, 2021 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 2,069 | $ | 1,634 | $ | 3,703 | ||||||
Other comprehensive loss before reclassifications | (2,058 | ) | (2,125 | ) | (4,183 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | (511 | ) | (511 | ) | |||||||
Net current-period other comprehensive loss | (2,058 | ) | (2,636 | ) | (4,694 | ) | ||||||
Ending balance | $ | 11 | $ | (1,002 | ) | $ | (991 | ) |
Three Months Ended March 31, 2020 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (4,205 | ) | $ | 1,545 | $ | (2,660 | ) | ||||
Other comprehensive income (loss) before reclassifications | 22,251 | (5,004 | ) | 17,247 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 58 | 58 | |||||||||
Net current-period other comprehensive income (loss) | 22,251 | (4,946 | ) | 17,305 | ||||||||
Ending balance | $ | 18,046 | $ | (3,401 | ) | $ | 14,645 | |||||
March 31, 2022 | December 31, 2021 | |||||||
Foreign currency translation adjustments | $ | (3,815 | ) | $ | (770 | ) | ||
Derivative adjustments | (1,962 | ) | (1,460 | ) | ||||
Total | $ | (5,777 | ) | $ | (2,230 | ) | ||
Three Months Ended March 31, 2022 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (770 | ) | $ | (1,460 | ) | $ | (2,230 | ) | |||
Other comprehensive loss before reclassifications | (3,045 | ) | (1,264 | ) | (4,309 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | — | 762 | 762 | |||||||||
Net current-period other comprehensive loss | (3,045 | ) | (502 | ) | (3,547 | ) | ||||||
Ending balance | $ | (3,815 | ) | $ | (1,962 | ) | $ | (5,777 | ) | |||
Three Months Ended March 31, 2021 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 2,069 | $ | 1,634 | $ | 3,703 | ||||||
Other comprehensive loss before reclassifications | (2,058 | ) | (2,125 | ) | (4,183 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | (511 | ) | (511 | ) | |||||||
Net current-period other comprehensive loss | (2,058 | ) | (2,636 | ) | (4,694 | ) | ||||||
Ending balance | $ | 11 | $ | (1,002 | ) | $ | (991 | ) | ||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
(In thousands of US dollars, except share data) | ||||||||
Basic and diluted loss per share | ||||||||
Loss from continuing operations | $ | (7,473 | ) | $ | (31,078 | ) | ||
Income from discontinued operations, net of tax | 0 | 7,329 | ||||||
Net loss | $ | (7,473 | ) | $ | (23,749 | ) | ||
Weighted average number of shares – basic and diluted | 40,292,838 | 34,893,157 | ||||||
Basic and diluted loss per common share | ||||||||
Continuing operations | $ | (0.19 | ) | $ | (0.89 | ) | ||
Discontinued operations | 0 | 0.21 | ||||||
Total | $ | (0.19 | ) | $ | (0.68 | ) | ||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
(In thousands of U.S. dollars, except share data) | ||||||||
Basic Earnings (Loss) per Share | ||||||||
Net income (loss) | $ | 9,528 | $ | (7,473 | ) | |||
Basic weighted average common stock outstanding | 45,603,208 | 40,292,838 | ||||||
Basic earnings (loss) per share | $ | 0.21 | $ | (0.19 | ) | |||
Diluted Earnings (Loss) per Share | ||||||||
Net income (loss) | $ | 9,528 | $ | (7,473 | ) | |||
Basic weighted average common stock outstanding | 45,603,208 | 40,292,838 | ||||||
Net effect of dilutive equity awards | 1,090,086 | 0 | ||||||
Diluted weighted average common stock outstanding | 46,693,294 | 40,292,838 | ||||||
Diluted earnings (loss) per share | $ | 0.20 | $ | (0.19 | ) |
Three Months Ended | Three Months Ended | |||||||||||||||
March 31, 2021 | March 31, 2020 | March 31, 2022 | March 31, 2021 | |||||||||||||
Options | 1,471,421 | 2,163,845 | 130,000 | 1,471,421 | ||||||||||||
Restricted Stock Units | 1,109,572 | 729,939 | 0 | 1,109,572 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
(In millions) | (Dollars in millions) | |||||||||||||||
Loss from continuing operations | $ | (7.5 | ) | $ | (31.1 | ) | ||||||||||
Interest expense, net | 0.4 | 4.9 | ||||||||||||||
Net Income (loss) | $ | 9.5 | $ | (7.5 | ) | |||||||||||
Interest expense (income), net | (0.6 | ) | 0.4 | |||||||||||||
Income tax expense | 0.3 | 1.3 | 3.5 | 0.3 | ||||||||||||
Depreciation and amortization | 3.4 | 2.6 | 3.9 | 3.4 | ||||||||||||
EBITDA | 3.3 | (22.3 | ) | 16.3 | (3.3 | ) | ||||||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 1.6 | 0.8 | 1.6 | 1.6 | ||||||||||||
Foreign currency loss, net(b) | 4.7 | 31.0 | 0.7 | 4.7 | ||||||||||||
Derivative valuation loss (gain), net(c) | 0.1 | (0.1 | ) | |||||||||||||
Other charges(d) | 10.4 | 0.6 | ||||||||||||||
Derivative valuation loss, net(c) | 0.1 | 0.1 | ||||||||||||||
Merger-related costs(d) | — | 9.8 | ||||||||||||||
Other charges(e) | — | 0.6 | ||||||||||||||
Adjusted EBITDA | $ | 13.5 | $ | 9.9 | $ | 18.8 | $ | 13.5 | ||||||||
(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 obligations and foreign currency denominated receivables and payables, as well as the cash impact of foreign currency transaction gains or losses on collection of such receivables and payment of such payables. Although we expect to incur foreign currency translation gains or losses in the future, we believe that analysts and investors will find it helpful to review our operating performance without the effects of these primarilynon-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) | For the three months ended March 31, 2021, this adjustment eliminates non-recurring professional service fees and expenses incurred in connection with |
(e) | For the three months ended March 31, 2021, this adjustment eliminates $0.6 million non-recurring professional service fees and expenses incurred in connection with the regulatory requests. As this adjustment meaningfully impacted our operating results and are not expected to represent an ongoing operating expense or income to us, we believe our operating performance results are more usefully compared if this adjustment is excluded. |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
(In millions) | (Dollars in millions) | |||||||||||||||
Operating income (loss) | $ | (2.1 | ) | $ | 6.0 | $ | 12.9 | $ | (2.1 | ) | ||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 1.6 | 0.8 | 1.6 | 1.6 | ||||||||||||
Other charges(b) | 10.4 | 0.6 | ||||||||||||||
Merger-related costs(b) | — | 9.8 | ||||||||||||||
Other charges(c) | — | 0.6 | ||||||||||||||
Adjusted Operating Income | $ | 10.0 | $ | 7.3 | $ | 14.5 | $ | 10.0 | ||||||||
(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) | For the three months ended March 31, 2021, this adjustment eliminates non-recurring professional service fees and expenses incurred in connection with |
(c) | For the three months ended March 31, 2021, this adjustment eliminates $0.6 million non-recurring professional service fees and expenses incurred in connection with the regulatory requests. As this adjustment meaningfully impacted our operating results and are not expected to represent an ongoing operating expense or income to us, we believe our operating performance results are more usefully compared if this adjustment is excluded. |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
(In millions, except per share data) | (Dollars in millions, except per share data) | |||||||||||||||
Loss from continuing operations | $ | (7.5 | ) | $ | (31.1 | ) | ||||||||||
Net Income (Loss) | $ | 9.5 | $ | (7.5 | ) | |||||||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 1.6 | 0.8 | 1.6 | 1.6 | ||||||||||||
Foreign currency loss, net(b) | 4.7 | 31.0 | 0.7 | 4.7 | ||||||||||||
Derivative valuation loss (gain), net(c) | 0.1 | (0.1 | ) | |||||||||||||
Other charges(d) | 10.4 | 0.6 | ||||||||||||||
Income tax effect on non-GAAP adjustments(e) | — | — | ||||||||||||||
Derivative valuation loss, net(c) | 0.1 | 0.1 | ||||||||||||||
Merger-related costs(d) | — | 9.8 | ||||||||||||||
Other charges(e) | — | 0.6 | ||||||||||||||
Income tax effect on non-GAAP adjustments(f) | 1.0 | — | ||||||||||||||
Adjusted Net Income | $ | 9.3 | $ | 1.1 | $ | 12.9 | $ | 9.3 | ||||||||
Reported loss per share—basic | $ | (0.19 | ) | $ | (0.89 | ) | ||||||||||
Reported loss per share—diluted | $ | (0.19 | ) | $ | (0.89 | ) | ||||||||||
Reported earnings (loss) per share—basic | $ | 0.21 | $ | (0.19 | ) | |||||||||||
Reported earnings (loss) per share—diluted | $ | 0.20 | $ | (0.19 | ) | |||||||||||
Weighted average number of shares—basic | 40,292,838 | 34,893,157 | 45,603,208 | 40,292,838 | ||||||||||||
Weighted average number of shares—diluted | 40,292,838 | 34,893,157 | 46,693,294 | 40,292,838 | ||||||||||||
Adjusted earnings per share—basic | $ | 0.23 | $ | 0.03 | $ | 0.28 | $ | 0.23 | ||||||||
Adjusted earnings per share—diluted | $ | 0.22 | $ | 0.03 | $ | 0.28 | $ | 0.22 | ||||||||
Weighted average number of shares—basic | 40,292,838 | 34,893,157 | 45,603,208 | 40,292,838 | ||||||||||||
Weighted average number of shares—diluted | 47,470,416 | 35,883,200 | 46,693,294 | 47,470,416 |
(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 obligations and foreign currency denominated receivables and payables, as well as the cash impact of foreign currency transaction gains or losses on collection of such receivables and payment of such payables. Although we expect to incur foreign currency translation gains or losses in the future, we believe that analysts and investors will find it helpful to review our operating performance without the effects of these primarilynon-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) | For the three months ended March 31, 2021, this adjustment eliminates non-recurring professional service fees and expenses incurred in connection with |
(e) | For the three months ended March 31, 2021, this adjustment eliminates $0.6 million non-recurring professional service fees and |
(f) | For the three months ended March 31, 2022, this adjustment eliminates the income tax effect on non-GAAP adjustments of $1.0 million related to non-GAAP adjustments. |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | |||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | $ | 112.9 | 91.8 | % | $ | 110.7 | 91.9 | % | $ | 2.2 | ||||||||||
Net sales – transitional Fab 3 foundry services | 10.1 | 8.2 | 9.7 | 8.1 | 0.4 | |||||||||||||||
Total revenues | 123.0 | 100.0 | 120.5 | 100.0 | 2.5 | |||||||||||||||
Cost of sales | ||||||||||||||||||||
Cost of sales – standard products business | 79.2 | 64.4 | 81.6 | 67.7 | (2.4 | ) | ||||||||||||||
Cost of sales – transitional Fab 3 foundry services | 9.4 | 7.6 | 9.7 | 8.1 | (0.3 | ) | ||||||||||||||
Total cost of sales | 88.6 | 72.1 | 91.3 | 75.8 | (2.7 | ) | ||||||||||||||
Gross profit | 34.4 | 27.9 | 29.1 | 24.2 | 5.3 | |||||||||||||||
Selling, general and administrative expenses | 12.6 | 10.3 | 12.1 | 10.0 | 0.5 | |||||||||||||||
Research and development expenses | 13.4 | 10.9 | 10.5 | 8.7 | 2.9 | |||||||||||||||
Other charges | 10.4 | 8.5 | 0.6 | 0.5 | 9.9 | |||||||||||||||
Operating income (loss) | (2.1 | ) | (1.7 | ) | 6.0 | 5.0 | (8.1 | ) | ||||||||||||
Interest expense | (1.0 | ) | (0.8 | ) | (5.6 | ) | (4.7 | ) | 4.6 | |||||||||||
Foreign currency loss, net | (4.7 | ) | (3.8 | ) | (31.0 | ) | (25.7 | ) | 26.3 | |||||||||||
Others, net | 0.6 | 0.5 | 0.8 | 0.7 | (0.2 | ) | ||||||||||||||
(5.1 | ) | (4.1 | ) | (35.7 | ) | (29.7 | ) | 30.6 | ||||||||||||
Loss from continuing operations before income tax expense | (7.2 | ) | (5.8 | ) | (29.8 | ) | (24.7 | ) | 22.6 | |||||||||||
Income tax expense | 0.3 | 0.2 | 1.3 | 1.1 | (1.0 | ) | ||||||||||||||
Loss from continuing operations | (7.5 | ) | (6.1 | ) | (31.1 | ) | (25.8 | ) | 23.6 | |||||||||||
Income from discontinued operations, net of tax | — | — | 7.3 | 6.1 | (7.3 | ) | ||||||||||||||
Net loss | $ | (7.5 | ) | (6.1 | ) | $ | (23.7 | ) | (19.7 | ) | $ | 16.3 | ||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Change Amount | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | $ | 94.0 | 90.3 | % | $ | 112.9 | 91.8 | % | $ | (18.9 | ) | |||||||||
Net sales – transitional Fab 3 foundry services | 10.1 | 9.7 | 10.1 | 8.2 | (0.0 | ) | ||||||||||||||
Total revenues | 104.1 | 100.0 | 123.0 | 100.0 | (18.9 | ) | ||||||||||||||
Cost of sales | ||||||||||||||||||||
Cost of sales – standard products business | 56.1 | 53.9 | 79.2 | 64.4 | (23.2 | ) | ||||||||||||||
Cost of sales – transitional Fab 3 foundry services | 9.0 | 8.7 | 9.4 | 7.6 | (0.4 | ) | ||||||||||||||
Total cost of sales | 65.1 | 62.5 | 88.6 | 72.1 | (23.5 | ) | ||||||||||||||
Gross profit | 39.0 | 37.5 | 34.4 | 27.9 | 4.6 | |||||||||||||||
Selling, general and administrative expenses | 14.2 | 13.6 | 12.6 | 10.3 | 1.5 | |||||||||||||||
Research and development expenses | 12.0 | 11.5 | 13.4 | 10.9 | (1.5 | ) | ||||||||||||||
Merger-related costs | — | — | 9.8 | 8.0 | (9.8 | ) | ||||||||||||||
Other charges | — | — | 0.6 | 0.5 | (0.6 | ) | ||||||||||||||
Operating income (loss) | 12.9 | 12.4 | (2.1 | ) | (1.7 | ) | 15.0 | |||||||||||||
Interest expense | (0.1 | ) | (0.1 | ) | (1.0 | ) | (0.8 | ) | 0.9 | |||||||||||
Foreign currency loss, net | (0.7 | ) | (0.7 | ) | (4.7 | ) | (3.8 | ) | 4.0 | |||||||||||
Others, net | 0.9 | 0.9 | 0.6 | 0.5 | 0.3 | |||||||||||||||
0.1 | 0.1 | (5.1 | ) | (4.1 | ) | 5.2 | ||||||||||||||
Income (loss) before income tax expense | 13.0 | 12.5 | (7.2 | ) | (5.8 | ) | 20.2 | |||||||||||||
Income tax expense | 3.5 | 3.3 | 0.3 | 0.2 | 3.2 | |||||||||||||||
Net income (loss) | $ | 9.5 | 9.2 | $ | (7.5 | ) | (6.1 | ) | $ | 17.0 | ||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Change Amount | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | ||||||||||||||||||||
Display Solutions | $ | 29.2 | 28.0 | % | $ | 58.9 | 47.9 | % | $ | (29.7 | ) | |||||||||
Power Solutions | 64.8 | 62.3 | 54.0 | 43.9 | 10.8 | |||||||||||||||
Total standard products business | 94.0 | 90.3 | 112.9 | 91.8 | (18.9 | ) | ||||||||||||||
Net sales – transitional Fab 3 foundry services | 10.1 | 9.7 | 10.1 | 8.2 | (0.0 | ) | ||||||||||||||
Total revenues | $ | 104.1 | 100.0 | % | $ | 123.0 | 100.0 | % | $ | (18.9 | ) | |||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||
Amount | % of Net Sales | Amount | % of Net Sales | Change Amount | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Gross Profit | ||||||||||||||||||||
Gross profit – standard products business | $ | 37.9 | 40.3 | % | $ | 33.7 | 29.8 | % | $ | 4.3 | ||||||||||
Gross profit – transitional Fab 3 foundry services | 1.1 | 10.6 | 0.7 | 7.1 | 0.3 | |||||||||||||||
Total gross profit | $ | 39.0 | 37.5 | % | $ | 34.4 | 27.9 | % | $ | 4.6 | ||||||||||
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | |||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | ||||||||||||||||||||
Display Solutions | $ | 58.9 | 47.9 | % | $ | 77.6 | 64.4 | % | $ | (18.7 | ) | |||||||||
Power Solutions | 54.0 | 43.9 | 33.1 | 27.5 | 20.9 | |||||||||||||||
Total standard products business | 112.9 | 91.8 | 110.7 | 91.9 | 2.2 | |||||||||||||||
Net sales – transitional Fab 3 foundry services | 10.1 | 8.2 | 9.7 | 8.1 | 0.4 | |||||||||||||||
Total revenues | $ | 123.0 | 100.0 | % | $ | 120.5 | 100.0 | % | $ | 2.5 | ||||||||||
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | |||||||||||||||||||
Amount | % of Net sales | Amount | % of Net sales | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Gross Profit | ||||||||||||||||||||
Gross profit – standard products business | $ | 33.7 | 29.8 | % | $ | 29.1 | 26.3 | % | $ | 4.5 | ||||||||||
Gross profit – transitional Fab 3 foundry services | 0.7 | 7.1 | — | — | 0.7 | |||||||||||||||
Total gross profit | $ | 34.4 | 27.9 | % | $ | 29.1 | 24.2 | % | $ | 5.3 | ||||||||||
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||
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) | (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||
Korea | $ | 26.4 | 23.4 | % | $ | 30.8 | 27.8 | % | $ | (4.4 | ) | $ | 31.0 | 33.0 | % | $ | 26.4 | 23.4 | % | $ | 4.6 | |||||||||||||||||||
Asia Pacific (other than Korea) | 83.7 | 74.2 | 77.5 | 70.0 | 6.2 | 58.3 | 62.0 | 83.7 | 74.2 | (25.5 | ) | |||||||||||||||||||||||||||||
United States | 1.3 | 1.1 | 0.7 | 0.6 | 0.6 | 2.9 | 3.0 | 1.3 | 1.1 | 1.6 | ||||||||||||||||||||||||||||||
Europe | 1.2 | 1.1 | 1.0 | 0.9 | 0.3 | 1.9 | 2.0 | 1.2 | 1.1 | 0.6 | ||||||||||||||||||||||||||||||
Others | 0.2 | 0.2 | 0.7 | 0.6 | (0.5 | ) | — | — | 0.2 | 0.2 | (0.2 | ) | ||||||||||||||||||||||||||||
$ | 112.9 | 100.0 | % | $ | 110.7 | 100.0 | % | $ | 2.2 | $ | 94.0 | 100.0 | % | $ | 112.9 | 100.0 | % | $ | (18.9 | ) | ||||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||||||||||
Total | Remainder of 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Operating leases(1) | $ | 4.9 | $ | 2.0 | $ | 1.3 | $ | 0.7 | $ | 0.5 | $ | 0.4 | $ | — | ||||||||||||||
Finance leases(1) | 0.2 | 0.1 | 0.1 | 0.1 | — | — | — | |||||||||||||||||||||
Water Treatment Services(1)(2) | 28.2 | 3.1 | 4.1 | 4.0 | 3.9 | 3.8 | 9.3 | |||||||||||||||||||||
Others(3) | 11.0 | 3.3 | 4.5 | 3.1 | 0.1 | 0.1 | — |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Approximate dollar value of Shares that may yet be Purchased under the Plans or Programs (in thousands)(1) | ||||||||||||
January 2022 | — | — | — | — | ||||||||||||
February 2022 | — | — | — | — | ||||||||||||
March 2022 | 1,031,576 | $ | 16.69 | 1,031,576 | $ | 37,500 | ||||||||||
Total | 1,031,576 | $ | 37,500 | |||||||||||||
(1) | On December 21, 2021, the Company’s Board of Directors authorized the Company to repurchase up to $75 million of the Company’s common stock. As an immediate step towards implementing the approved stock repurchase program, the Company entered into an ASR Agreement on December 21, 2021 with JPM to repurchase an aggregate of $37.5 million of the Company’s common stock. Pursuant to the terms of the ASR Agreement dated December 21, 2021, we paid to JPM $37.5 million in cash and received an initial delivery of 994,695 shares of our common stock in the open market. In March 2022, the previously announced repurchase of $37.5 million of our common stock was completed pursuant to the ASR Agreement, and as a result, we additionally received 1,031,576 shares of our common stock. |
Item 6. | Exhibits. |
# | Filed herewith |
† | Furnished herewith |
MAGNACHIP SEMICONDUCTOR CORPORATION (Registrant) | ||||||
Dated: May | By: | /s/ Young-Joon Kim | ||||
Young-Joon Kim | ||||||
Chief Executive Officer (Principal Executive Officer) | ||||||
Dated: May | By: | /s/ Shin Young | ||||
Shin Young | ||||||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |