September 30, 2021 | December 31, 2020 | |||||||
(In thousands of U.S. dollars, except share data) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 276,301 | $ | 279,940 | ||||
Accounts receivable, net | 52,523 | 64,390 | ||||||
Inventories, net | 38,773 | 39,039 | ||||||
Other receivables | 8,971 | 4,338 | ||||||
Prepaid expenses | 9,666 | 7,332 | ||||||
Hedge collateral (Note 9) | 3,720 | 5,250 | ||||||
Other current assets (Notes 10 and 19) | 1,919 | 9,321 | ||||||
Total current assets | 391,873 | 409,610 | ||||||
Property, plant and equipment, net | 103,352 | 96,383 | ||||||
Operating lease right-of-use | 3,727 | 4,632 | ||||||
Intangible assets, net | 2,405 | 2,727 | ||||||
Long-term prepaid expenses | 9,451 | 4,058 | ||||||
Deferred income taxes | 41,255 | 44,541 | ||||||
Other non-current assets | 10,626 | 9,739 | ||||||
Total assets | $ | 562,689 | $ | 571,690 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 33,386 | $ | 52,164 | ||||
Other accounts payable | 18,671 | 2,531 | ||||||
Accrued expenses (Note 8) | 13,168 | 16,241 | ||||||
Accrued income taxes | 1,955 | 12,398 | ||||||
Operating lease liabilities | 1,757 | 2,210 | ||||||
Current portion of long-term borrowings, net | — | 83,479 | ||||||
Other current liabilities (Note 10) | 7,800 | 4,595 | ||||||
Total current liabilities | 76,737 | 173,618 | ||||||
Accrued severance benefits, net | 37,741 | 40,462 | ||||||
Non-current operating lease liabilities | 1,970 | 2,422 | ||||||
Other non-current liabilities (Note 10) | 12,944 | 9,588 | ||||||
Total liabilities | 129,392 | 226,090 | ||||||
Commitments and contingencies (Note 19) | 0 | 0 | ||||||
Stockholders’ equity | ||||||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 55,676,851 shares issued and 46,464,889 outstanding at September 30, 2021 and 44,943,854 shares issued and 35,783,347 outstanding at December 31, 2020 | 557 | 450 | ||||||
Additional paid-in capital | 256,619 | 163,010 | ||||||
Retained earnings | 289,931 | 286,834 | ||||||
Treasury stock, 9,211,962 shares at September 30, 2021 and 9,160,507 shares at December 31, 2020, respectively | (109,407 | ) | (108,397 | ) | ||||
Accumulated other comprehensive income (loss) | (4,403 | ) | 3,703 | |||||
Total stockholders’ equity | 433,297 | 345,600 | ||||||
Total liabilities and stockholders’ equity | $ | 562,689 | $ | 571,690 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
Net sales – standard products business | $ | 117,415 | $ | 116,262 | $ | 333,589 | $ | 335,953 | ||||||||
Net sales – transitional Fab 3 foundry services | 9,585 | 8,551 | 30,306 | 28,161 | ||||||||||||
Total revenues | 127,000 | 124,813 | 363,895 | 364,114 | ||||||||||||
Cost of sales: | ||||||||||||||||
Cost of sales – standard products business | 71,641 | 87,494 | 221,297 | 245,917 | ||||||||||||
Cost of sales – transitional Fab 3 foundry services | 8,772 | 8,731 | 27,659 | 28,341 | ||||||||||||
�� | ||||||||||||||||
Total cost of sales | 80,413 | 96,225 | 248,956 | 274,258 | ||||||||||||
Gross profit | 46,587 | 28,588 | 114,939 | 89,856 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 12,550 | 12,888 | 39,185 | 37,398 | ||||||||||||
Research and development expenses | 12,270 | 12,477 | 39,015 | 34,094 | ||||||||||||
Other charges | 1,766 | 0 | 17,202 | 554 | ||||||||||||
Total operating expenses | 26,586 | 25,365 | 95,402 | 72,046 | ||||||||||||
Operating income | 20,001 | 3,223 | 19,537 | 17,810 | ||||||||||||
Interest expense | (113 | ) | (5,485 | ) | (1,239 | ) | (16,522 | ) | ||||||||
Foreign currency gain (loss), net | (7,579 | ) | 8,864 | (12,000 | ) | (13,638 | ) | |||||||||
Other income, net | 1,608 | 714 | 2,839 | 2,343 | ||||||||||||
Income (loss) from continuing operations before income tax expense | 13,917 | 7,316 | 9,137 | (10,007 | ) | |||||||||||
Income tax expense (benefit) | 3,149 | (1,145 | ) | 6,040 | 836 | |||||||||||
Income (loss) from continuing operations | 10,768 | 8,461 | 3,097 | (10,843 | ) | |||||||||||
Income from discontinued operations, net of tax | — | 264,501 | — | 289,227 | ||||||||||||
Net income | $ | 10,768 | $ | 272,962 | $ | 3,097 | $ | 278,384 | ||||||||
Basic earnings (loss) per common share— | ||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.24 | $ | 0.07 | $ | (0.31 | ) | |||||||
Discontinued operations | — | 7.50 | 0 | 8.24 | ||||||||||||
Total | $ | 0.23 | $ | 7.74 | $ | 0.07 | $ | 7.93 | ||||||||
Diluted earnings (loss) per common share— | ||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.21 | $ | 0.07 | $ | (0.31 | ) | |||||||
Discontinued operations | — | 5.68 | 0 | 8.24 | ||||||||||||
Total | $ | 0.23 | $ | 5.89 | $ | 0.07 | $ | 7.93 | ||||||||
Weighted average number of shares— | ||||||||||||||||
Basic | 46,449,234 | 35,280,864 | 44,377,250 | 35,089,479 | ||||||||||||
Diluted | 47,808,457 | 46,581,788 | 45,811,792 | 35,089,479 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
(In thousands of U.S. dollars) | ||||||||||||||||
Net income | $ | 10,768 | $ | 272,962 | $ | 3,097 | $ | 278,384 | ||||||||
Other comprehensive income (loss) | ||||||||||||||||
Foreign currency translation adjustments | (860 | ) | (6,517 | ) | (2,809 | ) | 9,191 | |||||||||
Derivative adjustments | ||||||||||||||||
Fair valuation of derivatives | (3,271 | ) | 1,390 | (4,964 | ) | (1,410 | ) | |||||||||
Reclassification adjustment for loss (gain) on derivatives included in net income | 653 | 41 | (333 | ) | 292 | |||||||||||
Total other comprehensive income (loss) | (3,478 | ) | (5,086 | ) | (8,106 | ) | 8,073 | |||||||||
Total comprehensive income (loss) | $ | 7,290 | $ | 267,876 | $ | (5,009 | ) | $ | 286,457 | |||||||
(In thousands of U.S. dollars, except share data) | Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Three Months Ended September 30, 2021: | ||||||||||||||||||||||||||||
Balance at June 30, 2021 | 46,350,945 | $ | 556 | $ | 253,244 | $ | 279,163 | $ | (109,407 | ) | $ | (925 | ) | $ | 422,631 | |||||||||||||
Stock-based compensation | — | — | 2,005 | — | — | — | 2,005 | |||||||||||||||||||||
Exercise of stock options | 112,944 | 1 | 1,370 | — | — | — | 1,371 | |||||||||||||||||||||
Settlement of restricted stock units | 1,000 | 0 | (0 | ) | — | — | — | — | ||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (3,478 | ) | (3,478 | ) | |||||||||||||||||||
Net income | — | — | — | 10,768 | — | — | 10,768 | |||||||||||||||||||||
Balance at September 30, 2021 | 46,464,889 | $ | 557 | $ | 256,619 | $ | 289,931 | $ | (109,407 | ) | $ | (4,403 | ) | $ | 433,297 | |||||||||||||
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 | ||||||||||||||
(In thousands of U.S. dollars, except share data) | Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2021: | ||||||||||||||||||||||||||||
Balance at December 31, 2020 | 35,783,347 | $ | 450 | $ | 163,010 | $ | 286,834 | $ | (108,397 | ) | $ | 3,703 | $ | 345,600 | ||||||||||||||
Stock-based compensation | — | — | 6,056 | — | — | — | 6,056 | |||||||||||||||||||||
Exchange of exchangeable senior note | 10,144,131 | 101 | 83,639 | — | — | — | 83,740 | |||||||||||||||||||||
Exercise of stock options | 289,704 | 3 | 3,917 | — | — | — | 3,920 | |||||||||||||||||||||
Settlement of restricted stock units | 299,162 | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (51,455 | ) | — | — | — | (1,010 | ) | — | (1,010 | ) | ||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (8,106 | ) | (8,106 | ) | |||||||||||||||||||
Net income | — | — | — | 3,097 | — | — | 3,097 | |||||||||||||||||||||
Balance at September 30, 2021 | 46,464,889 | $ | 557 | $ | 256,619 | $ | 289,931 | $ | (109,407 | ) | $ | (4,403 | ) | $ | 433,297 | |||||||||||||
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, 2021 | September 30, 2020 | |||||||
(In thousands of U.S. dollars) | ||||||||
Cash flows from operating activities | ||||||||
Net income | $ | 3,097 | $ | 278,384 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 10,576 | 13,333 | ||||||
Provision for severance benefits | 5,514 | 14,150 | ||||||
Amortization of debt issuance costs and original issue discount | 261 | 1,824 | ||||||
Loss on foreign currency, net | 32,607 | 6,609 | ||||||
Restructuring and other charges | 750 | 490 | ||||||
Provision for inventory reserves | 1,484 | 4,079 | ||||||
Stock-based compensation | 6,056 | 4,754 | ||||||
Gain on sale of discontinued operations | — | (287,117 | ) | |||||
Other, net | 442 | 85 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable, net | 6,696 | (16,583 | ) | |||||
Unbilled accounts receivable, net | — | 14,260 | ||||||
Inventories | (4,561 | ) | 1,390 | |||||
Other receivables | (5,287 | ) | 6,111 | |||||
Other current assets | 7,933 | 9,143 | ||||||
Accounts payable | (16,192 | ) | (5,156 | ) | ||||
Other accounts payable | (3,729 | ) | (8,034 | ) | ||||
Accrued expenses | (2,391 | ) | 1,991 | |||||
Accrued income taxes | (8,308 | ) | 12,546 | |||||
Other current liabilities | 555 | 2,243 | ||||||
Other non-current liabilities | (666 | ) | 2,868 | |||||
Payment of severance benefits | (4,772 | ) | (5,888 | ) | ||||
Other, net | (49 | ) | 59 | |||||
Net cash provided by operating activities | 30,016 | 51,541 | ||||||
Cash flows from investing activities | ||||||||
Proceeds from settlement of hedge collateral | 3,995 | 8,029 | ||||||
Payment of hedge collateral | (2,744 | ) | (7,841 | ) | ||||
Purchase of property, plant and equipment | (13,368 | ) | (16,353 | ) | ||||
Payment for intellectual property registration | (455 | ) | (664 | ) | ||||
Collection of guarantee deposits | 3,192 | 891 | ||||||
Payment of guarantee deposits | (4,960 | ) | (611 | ) | ||||
Proceeds from sale of discontinued operations | — | 350,553 | ||||||
Other, net | (103 | ) | 26 | |||||
Net cash provided by (used in) investing activities | (14,443 | ) | 334,030 | |||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 3,920 | 2,690 | ||||||
Acquisition of treasury stock | (1,653 | ) | (1,021 | ) | ||||
Repayment of financing related to water treatment facility arrangement | (427 | ) | (402 | ) | ||||
Repayment of principal portion of finance lease liabilities | (49 | ) | (165 | ) | ||||
Net cash provided by financing activities | 1,791 | 1,102 | ||||||
Effect of exchange rates on cash and cash equivalents | (21,003 | ) | 3,781 | |||||
Net increase (decrease) in cash and cash equivalents | (3,639 | ) | 390,454 | |||||
Cash and cash equivalents | ||||||||
Beginning of the period | 279,940 | 151,657 | ||||||
End of the period | $ | 276,301 | $ | 542,111 | ||||
Supplemental cash flow information | ||||||||
Cash paid for interest | $ | 2,094 | $ | 19,044 | ||||
Cash paid for income taxes | $ | 12,609 | $ | 2,573 | ||||
Non-cash investing activities | ||||||||
Property, plant and equipment additions in other accounts payable | $ | 11,513 | $ | 3,865 | ||||
Non-cash financing activities | ||||||||
Exchange of exchangeable senior notes into common stock | $ | 83,740 | $ | — |
Three Months Ended | Nine Months Ended | |||||||
September 30, 2020 | ||||||||
(In thousands of U.S. dollars) | ||||||||
Revenues: | ||||||||
Net sales – Foundry Services Group | $ | 72,674 | $ | 254,732 | ||||
Net sales – transitional Fab 3 foundry services | (6,277 | ) | (25,887 | ) | ||||
Total revenues | 66,397 | 228,845 | ||||||
Cost of sales: | ||||||||
Cost of sales – Foundry Services Group | 52,420 | 182,872 | ||||||
Cost of sales – transitional Fab 3 foundry services | (6,277 | ) | (25,887 | ) | ||||
Total cost of sales | 46,143 | 156,985 | ||||||
Gross profit | 20,254 | 71,860 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 4,068 | 14,704 | ||||||
Research and development expenses | 5,166 | 19,484 | ||||||
Restructuring and other charges | 7,870 | 10,574 | ||||||
Total operating expenses | 17,104 | 44,762 | ||||||
Operating income from discontinued operations | 3,150 | 27,098 | ||||||
Foreign currency gain (loss), net | (797 | ) | 1,277 | |||||
Others, net | 18 | 66 | ||||||
Income from discontinued operations before income tax expense | 2,371 | 28,441 | ||||||
Income tax expense | 14,173 | 15,517 | ||||||
Gain on sale of discontinued operations | 287,117 | 287,117 | ||||||
Transaction costs | (10,814 | ) | (10,814 | ) | ||||
Income from discontinued operations, net of tax | 264,501 | 289,227 | ||||||
Nine Months Ended | ||||
September 30, 2020 | ||||
(In thousands of U.S. dollars) | ||||
Significant non-cash operating activities: | ||||
Depreciation and amortization | $ | 5,365 | ||
Provision for severance benefits | 8,209 | |||
Stock-based compensation | 388 | |||
Investing activities: | ||||
Capital expenditures | $ | (5,838 | ) |
September 30, 2021 | December 31, 2020 | |||||||
Finished goods | $ | 6,529 | $ | 6,425 | ||||
Semi-finished goods and work-in-process | 29,895 | 30,968 | ||||||
Raw materials | 7,801 | 6,526 | ||||||
Materials in-transit | 284 | 1,021 | ||||||
Less: inventory reserve | (5,736 | ) | (5,901 | ) | ||||
Inventories, net | $ | 38,773 | $ | 39,039 | ||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||
September 30, 2021 | September 30, 2020 | |||||||||||||||
Beginning balance | $ | (8,101 | ) | $ | (5,901 | ) | $ | (5,307 | ) | $ | (5,947 | ) | ||||
Change in reserve | ||||||||||||||||
Inventory reserve charged to costs of sales | (242 | ) | (5,592 | ) | (3,472 | ) | (6,541 | ) | ||||||||
Sale of previously reserved inventory | 2,099 | 4,076 | 1,578 | 3,231 | ||||||||||||
1,857 | (1,516 | ) | (1,894 | ) | (3,310 | ) | ||||||||||
Write off | 180 | 1,110 | 835 | 1,976 | ||||||||||||
Translation adjustments | 328 | 571 | (139 | ) | 82 | |||||||||||
Reclassified to assets held for sale | — | — | — | 694 | ||||||||||||
Ending balance | $ | (5,736 | ) | $ | (5,736 | ) | $ | (6,505 | ) | $ | (6,505 | ) | ||||
September 30, 2021 | December 31, 2020 | |||||||
Buildings and related structures | $ | 24,159 | �� | $ | 24,882 | |||
Machinery and equipment | 102,280 | 106,244 | ||||||
Finance lease right-of-use | 316 | 344 | ||||||
Others | 29,591 | 31,208 | ||||||
156,346 | 162,678 | |||||||
Less: accumulated depreciation | (92,363 | ) | (90,370 | ) | ||||
Land | 13,905 | 15,167 | ||||||
Construction in progress | 25,464 | 8,908 | ||||||
Property, plant and equipment, net | $ | 103,352 | $ | 96,383 | ||||
September 30, 2021 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Intellectual property assets | $ | 9,176 | $ | (6,771 | ) | $ | 2,405 | |||||
Intangible assets | $ | 9,176 | $ | (6,771 | ) | $ | 2,405 | |||||
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, 2021 | December 31, 2020 | |||||||||
Assets | ||||||||||||
Operating lease | Operating lease right-of-use | $ | 3,727 | $ | 4,632 | |||||||
Finance lease | Property, plant and equipment, net | 142 | 206 | |||||||||
Total lease assets | $ | 3,869 | $ | 4,838 | ||||||||
Liabilities | ||||||||||||
Current | ||||||||||||
Operating | Operating lease liabilities | $ | 1,757 | $ | 2,210 | |||||||
Finance | Other current liabilities | 67 | 68 | |||||||||
Non-current | ||||||||||||
Operating | Non-current operating lease liabilities | 1,970 | 2,422 | |||||||||
Finance | Other non-current liabilities | 90 | 153 | |||||||||
Total lease liabilities | $ | 3,884 | $ | 4,853 | ||||||||
September 30, 2021 | December 31, 2020 | |||||||
Weighted average remaining lease term | ||||||||
Operating leases | 2.7 years | 3.0 years | ||||||
Finance leases | 2.3 years | 3.0 years | ||||||
Weighted average discount rate | ||||||||
Operating leases | 4.61 | % | 5.55 | % | ||||
Finance leases | 7.75 | % | 7.75 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Operating lease cost | $ | 691 | $ | 480 | $ | 2,098 | $ | 1,409 | ||||||||
Finance lease cost | ||||||||||||||||
Amortization of right-of-use | 17 | 16 | 50 | 47 | ||||||||||||
Interest on lease liabilities | 4 | 4 | 11 | 13 | ||||||||||||
Total lease cost | $ | 712 | $ | 500 | $ | 2,159 | $ | 1,469 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Cash lease liabilities | ||||||||||||||||
Operating cash flows from operating leases | $ | 691 | $ | 480 | $ | 2,098 | $ | 1,409 | ||||||||
Operating cash flows from finance leases | 4 | 4 | 11 | 13 | ||||||||||||
Financing cash flows from finance leases | 16 | 15 | 49 | 43 |
Operating Leases | Finance Leases | |||||||
Remainder of 2021 | $ | 674 | $ | 19 | ||||
2022 | 1,518 | 76 | ||||||
2023 | 812 | 76 | ||||||
2024 | 581 | 0 | ||||||
2025 | 396 | 0 | ||||||
Total future lease payments | 3,981 | 171 | ||||||
Less: Imputed interest | (254 | ) | (14 | ) | ||||
Present value of future payments | $ | 3,727 | $ | 157 | ||||
September 30, 2021 | December 31, 2020 | |||||||
Payroll, benefits and related taxes, excluding severance benefits | $ | 9,095 | $ | 10,296 | ||||
Withholding tax attributable to intercompany interest income | 1,789 | 28 | ||||||
Interest on senior notes | — | 1,396 | ||||||
Outside service fees | 1,014 | 755 | ||||||
Restructuring and others | 750 | 2,658 | ||||||
Others | 520 | 1,108 | ||||||
Accrued expenses | $ | 13,168 | $ | 16,241 | ||||
Date of transaction | Total notional amount | Month of settlement | ||||
December 15, 2020 | $ | 15,000 | October 2021 to December 2021 | |||
February 26, 2021 | $ | 9,000 | October 2021 to December 2021 | |||
May 13, 2021 | $ | 39,000 | January 2022 to September 2022 | |||
August 13, 2021 | $ | 48,000 | January 2022 to December 2022 |
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, 2021 | December 31, 2020 | ||||||||
Asset Derivatives: | ||||||||||
Zero cost collars | Other current assets | $ | — | $ | 2,036 | |||||
Liability Derivatives: | ||||||||||
Zero cost collars | Other current liabilities | $ | 3,196 | $ | 195 | |||||
Zero cost collars | Other non-current liabilities | $ | 257 | $ | — |
As of September 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 | $ | 3,453 | $ | 0 | $ | 3,453 | $ | 0 | $ | (2,720 ) | $ | 733 |
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 |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain (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 September 30, | Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Zero cost collars | $ | (3,271) | $ | 1,390 | Net sales | $ | (653 ) | $ | (41 ) | Other income, net | $ | 237 | $ | 50 |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain 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, | ||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Zero cost collars | $ | (4,964) | $ | (1,410) | Net sales | $ | 333 | $ | (292) | Other income, net | $ | 94 | $ | 222 |
Counterparties | September 30, 2021 | December 31, 2020 | ||||||
NFIK | $ | 0 | $ | 3,250 | ||||
DB | 0 | 1,000 | ||||||
SC | 1,000 | 1,000 | ||||||
Total | $ | 1,000 | $ | 5,250 | ||||
Carrying Value September 30, 2021 | Fair Value Measurement September 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) | $ | 3,196 | $ | 3,196 | — | $ | 3,196 | — | ||||||||||||
Derivative liabilities (other non-current liabilities) | $ | 257 | $ | 257 | — | $ | 257 | — |
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 | — |
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 | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||
September 30, 2021 | September 30, 2020 | |||||||||||||||
Beginning balance | $ | 53,105 | $ | 54,452 | $ | 51,785 | $ | 53,344 | ||||||||
Provisions | 2,007 | 5,514 | 2,167 | 5,941 | ||||||||||||
Severance payments | (1,936 | ) | (4,772 | ) | (1,295 | ) | (4,749 | ) | ||||||||
Translation adjustments | (2,441 | ) | (4,459 | ) | 1,204 | (675 | ) | |||||||||
50,735 | 50,735 | 53,861 | 53,861 | |||||||||||||
Less: Cumulative contributions to severance insurance deposit accounts | (12,739 | ) | (12,739 | ) | (1,616 | ) | (1,616 | ) | ||||||||
The National Pension Fund | (55 | ) | (55 | ) | (73 | ) | (73 | ) | ||||||||
Group severance insurance plan | (200 | ) | (200 | ) | (219 | ) | (219 | ) | ||||||||
Accrued severance benefits, net | $ | 37,741 | $ | 37,741 | $ | 51,953 | $ | 51,953 | ||||||||
Severance benefits | ||||
Remainder of 2021 | $ | 0 | ||
2022 | 254 | |||
2023 | 631 | |||
2024 | 903 | |||
2025 | 1,840 | |||
2026 | 2,281 | |||
2027 – 2031 | 18,701 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Revenues | ||||||||||||||||
Standard products business | ||||||||||||||||
Display Solutions | $ | 58,528 | $ | 69,583 | $ | 164,024 | $ | 216,352 | ||||||||
Power Solutions | 58,887 | 46,679 | 169,565 | 119,601 | ||||||||||||
Total standard products business | 117,415 | 116,262 | 333,589 | 335,953 | ||||||||||||
Transitional Fab 3 foundry services | 9,585 | 8,551 | 30,306 | 28,161 | ||||||||||||
Total revenues | $ | 127,000 | $ | 124,813 | $ | 363,895 | $ | 364,114 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Gross Profit | ||||||||||||||||
Standard products business | $ | 45,773 | $ | 28,768 | $ | 112,291 | $ | 90,036 | ||||||||
Transitional Fab 3 foundry services | 814 | (180 | ) | 2,648 | (180 | ) | ||||||||||
Total gross profit | $ | 46,587 | $ | 28,588 | $ | 114,939 | $ | 89,856 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Korea | $ | 29,664 | $ | 28,370 | $ | 86,966 | $ | 81,144 | ||||||||
Asia Pacific (other than Korea) | 84,220 | 84,188 | 237,312 | 245,940 | ||||||||||||
United States | 1,756 | 1,789 | 4,393 | 3,959 | ||||||||||||
Europe | 1,398 | 1,451 | 3,847 | 3,278 | ||||||||||||
Others | 377 | 464 | 1,071 | 1,632 | ||||||||||||
Total | $ | 117,415 | $ | 116,262 | $ | 333,589 | $ | 335,953 | ||||||||
September 30, 2021 | December 31, 2020 | |||||||
Foreign currency translation adjustments | $ | (740) | $ | 2,069 | ||||
Derivative adjustments | (3,663 | ) | 1,634 | |||||
Total | $ | (4,403) | $ | 3,703 | ||||
Three Months Ended September 30, 2021 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 120 | $ | (1,045) | $ | (925) | ||||||
Other comprehensive loss before reclassifications | (860 | ) | (3,271 | ) | (4,131 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | — | 653 | 653 | |||||||||
Net current-period other comprehensive loss | (860 | ) | (2,618 | ) | (3,478 | ) | ||||||
Ending balance | $ | (740) | $ | (3,663) | $ | (4,403) | ||||||
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 | ||||||
Nine Months Ended September 30, 2021 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | 2,069 | $ | 1,634 | $ | 3,703 | ||||||
Other comprehensive loss before reclassifications | (2,809 | ) | (4,964 | ) | (7,773 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | (333 | ) | (333 | ) | |||||||
Net current-period other comprehensive loss | (2,809 | ) | (5,297 | ) | (8,106 | ) | ||||||
Ending balance | $ | (740) | $ | (3,663) | $ | (4,403) | ||||||
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 | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||||||
Basic earnings (loss) per share | ||||||||||||||||
Income (loss) from continuing operations | $ | 10,768 | $ | 8,461 | $ | 3,097 | $ | (10,843) | ||||||||
Income from discontinued operations, net of tax | 0 | 264,501 | 0 | 289,227 | ||||||||||||
Net income | $ | 10,768 | $ | 272,962 | $ | 3,097 | $ | 278,384 | ||||||||
Basic weighted average common stock outstanding | 46,449,234 | 35,280,864 | 44,377,250 | 35,089,479 | ||||||||||||
Basic earnings (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.24 | $ | 0.07 | $ | (0.31) | ||||||||
Discontinued operations | 0 | 7.50 | 0 | 8.24 | ||||||||||||
Total | $ | 0.23 | $ | 7.74 | $ | 0.07 | $ | 7.93 | ||||||||
Diluted earnings (loss) per share | ||||||||||||||||
Income (loss) from continuing operations | $ | 10,768 | $ | 8,461 | $ | 3,097 | $ | (10,843) | ||||||||
Add back: Interest expense on Exchangeable Notes | 0 | 1,429 | 0 | 0 | ||||||||||||
Income (loss) from continuing operations allocated to common stockholders | $ | 10,768 | $ | 9,890 | $ | 3,097 | $ | (10,843) | ||||||||
Income from discontinued operations, net of tax | 0 | 264,501 | 0 | 289,227 | ||||||||||||
Net income allocated to common stockholders | $ | 10,768 | $ | 274,391 | $ | 3,097 | $ | 278,384 | ||||||||
Basic weighted average common stock outstanding | 46,449,234 | 35,280,864 | 44,377,250 | 35,089,479 | ||||||||||||
Net effect of dilutive equity awards | 1,359,223 | 1,156,769 | 1,434,542 | 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 | 47,808,457 | 46,581,788 | 45,811,792 | 35,089,479 | ||||||||||||
Diluted earnings (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.21 | $ | 0.07 | $ | (0.31) | ||||||||
Discontinued operations | 0 | 5.68 | 0 | 8.24 | ||||||||||||
Total | $ | 0.23 | $ | 5.89 | $ | 0.07 | $ | 7.93 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Options | 50,000 | 697,667 | 50,000 | 1,788,202 | ||||||||||||
Restricted Stock Units | 0 | 0 | 0 | 1,248,113 |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Income (loss) from continuing operations | $ | 10.8 | $ | 3.1 | $ | 8.5 | $ | (10.8 | ) | |||||||
Interest expense (income), net | (0.4 | ) | (0.5 | ) | 4.9 | 14.5 | ||||||||||
Income tax expense (benefit) | 3.1 | 6.0 | (1.1 | ) | 0.8 | |||||||||||
Depreciation and amortization | 3.6 | 10.6 | 2.9 | 8.0 | ||||||||||||
EBITDA | $ | 17.1 | $ | 19.2 | $ | 15.0 | $ | 12.5 | ||||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 2.0 | 6.1 | 2.1 | 4.4 | ||||||||||||
Foreign currency loss (gain), net(b) | 7.6 | 12.0 | (8.9 | ) | 13.6 | |||||||||||
Derivative valuation gain, net(c) | (0.2 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | ||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions(d) | (1.1 | ) | (1.1 | ) | 2.3 | 2.3 | ||||||||||
Expenses related to Fab 3 power outage(e) | — | — | 1.2 | 1.2 | ||||||||||||
Other charges, net(f) | 1.0 | 16.5 | — | 0.6 | ||||||||||||
Adjusted EBITDA | $ | 26.4 | $ | 52.6 | $ | 11.7 | $ | 34.3 | ||||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||
(In millions) | ||||||||||||||||
Operating income | $ | 20.0 | $ | 19.5 | $ | 3.2 | $ | 17.8 | ||||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 2.0 | 6.1 | 2.1 | 4.4 | ||||||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions(b) | (1.1 | ) | (1.1 | ) | 2.3 | 2.3 | ||||||||||
Expenses related to Fab 3 power outage(c) | — | — | 1.2 | 1.2 | ||||||||||||
Other charges(d) | 1.8 | 17.2 | — | 0.6 | ||||||||||||
Adjusted Operating Income | $ | 22.7 | $ | 41.7 | $ | 8.8 | $ | 26.2 | ||||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Income (loss) from continuing operations | $ | 10.8 | $ | 3.1 | $ | 8.5 | $ | (10.8 | ) | |||||||
Adjustments: | ||||||||||||||||
Equity-based compensation expense(a) | 2.0 | 6.1 | 2.1 | 4.4 | ||||||||||||
Foreign currency loss (gain), net(b) | 7.6 | 12.0 | (8.9 | ) | 13.6 | |||||||||||
Derivative valuation gain, net(c) | (0.2 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | ||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions(d) | (1.1 | ) | (1.1 | ) | 2.3 | 2.3 | ||||||||||
Expenses related to Fab 3 power outage(e) | — | — | 1.2 | 1.2 | ||||||||||||
Other charges, net(f) | 1.0 | 16.5 | — | 0.6 | ||||||||||||
Income tax effect on non-GAAP adjustments(g) | — | — | — | — | ||||||||||||
Adjusted Net Income | $ | 20.1 | $ | 36.5 | $ | 5.1 | $ | 11.0 | ||||||||
Reported earnings (loss) per share – basic | $ | 0.23 | $ | 0.07 | $ | 0.24 | $ | (0.31 | ) | |||||||
Reported earnings (loss) per share – diluted | $ | 0.23 | $ | 0.07 | $ | 0.21 | $ | (0.31 | ) | |||||||
Weighted average number of shares – basic | 46,449,234 | 44,377,250 | 35,280,864 | 35,089,479 | ||||||||||||
Weighted average number of shares – diluted | 47,808,457 | 45,811,792 | 46,581,788 | 35,089,479 | ||||||||||||
Adjusted earnings per share – basic | $ | 0.43 | $ | 0.82 | $ | 0.15 | $ | 0.31 | ||||||||
Adjusted earnings per share – diluted | $ | 0.42 | $ | 0.78 | $ | 0.14 | $ | 0.30 | ||||||||
Weighted average number of shares – basic | 46,449,234 | 44,377,250 | 35,280,864 | 35,089,479 | ||||||||||||
Weighted average number of shares – diluted | 47,808,457 | 47,718,578 | 46,581,788 | 36,151,622 |
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | $ | 117.4 | 92.5 | % | $ | 116.3 | 93.1 | % | $ | 1.2 | ||||||||||
Net sales – transitional Fab 3 foundry services | 9.6 | 7.5 | 8.6 | 6.9 | 1.0 | |||||||||||||||
Total revenues | 127.0 | 100.0 | 124.8 | 100.0 | 2.2 | |||||||||||||||
Cost of sales | ||||||||||||||||||||
Cost of sales – standard products business | 71.6 | 56.4 | 87.5 | 70.1 | (15.9 | ) | ||||||||||||||
Cost of sales – transitional Fab 3 foundry services | 8.8 | 6.9 | 8.7 | 7.0 | 0.0 | |||||||||||||||
Total cost of sales | 80.4 | 63.3 | 96.2 | 77.1 | (15.8 | ) | ||||||||||||||
Gross profit | 46.6 | 36.7 | 28.6 | 22.9 | 18.0 | |||||||||||||||
Selling, general and administrative expenses | 12.6 | 9.9 | 12.9 | 10.3 | (0.3 | ) | ||||||||||||||
Research and development expenses | 12.3 | 9.7 | 12.5 | 10.0 | (0.2 | ) | ||||||||||||||
Other charges | 1.8 | 1.4 | — | — | 1.8 | |||||||||||||||
Operating income | 20.0 | 15.7 | 3.2 | 2.6 | 16.8 | |||||||||||||||
Interest expense | (0.1 | ) | (0.1 | ) | (5.5 | ) | (4.4 | ) | 5.4 | |||||||||||
Foreign currency gain (loss), net | (7.6 | ) | (6.0 | ) | 8.9 | 7.1 | (16.4 | ) | ||||||||||||
Others, net | 1.6 | 1.3 | 0.7 | 0.6 | 0.9 | |||||||||||||||
(6.1 | ) | (4.8 | ) | 4.1 | 3.3 | (10.2 | ) | |||||||||||||
Income from continuing operations before income tax expense | 13.9 | 11.0 | 7.3 | 5.9 | 6.6 | |||||||||||||||
Income tax expense (benefit) | 3.1 | 2.5 | (1.1 | ) | (0.9 | ) | 4.3 | |||||||||||||
Income from continuing operations | 10.8 | 8.5 | 8.5 | 6.8 | 2.3 | |||||||||||||||
Income from discontinued operations, net of tax | — | — | 264.5 | 211.9 | (264.5 | ) | ||||||||||||||
Net income | $ | 10.8 | 8.5 | $ | 273.0 | 218.7 | $ | (262.2 | ) | |||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | ||||||||||||||||||||
Display Solutions | $ | 58.5 | 46.1 | % | $ | 69.6 | 55.7 | % | $ | (11.1 | ) | |||||||||
Power Solutions | 58.9 | 46.4 | 46.7 | 37.4 | 12.2 | |||||||||||||||
Total standard products business | 117.4 | 92.5 | 116.3 | 93.1 | 1.2 | |||||||||||||||
Net sales – transitional Fab 3 foundry services | 9.6 | 7.5 | 8.6 | 6.9 | 1.0 | |||||||||||||||
Total revenues | $ | 127.0 | 100.0 | % | $ | 124.8 | 100.0 | % | $ | 2.2 | ||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Net sales | Amount | % of Net sales | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Gross Profit | ||||||||||||||||||||
Gross profit – standard products business | $ | 45.8 | 39.0 | % | $ | 28.8 | 24.7 | % | $ | 17.0 | ||||||||||
Gross profit – transitional Fab 3 foundry services | 0.8 | 8.5 | (0.2 | ) | (2.1 | ) | 1.0 | |||||||||||||
Total gross profit | $ | 46.6 | 36.7 | % | $ | 28.6 | 22.9 | % | $ | 18.0 | ||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Net sales – standard products business | Amount | % of Net sales – standard products business | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Korea | $ | 29.7 | 25.3 | % | $ | 28.4 | 24.4 | % | $ | 1.3 | ||||||||||
Asia Pacific (other than Korea) | 84.2 | 71.7 | 84.2 | 72.4 | 0.0 | |||||||||||||||
United States | 1.8 | 1.5 | 1.8 | 1.5 | (0.0 | ) | ||||||||||||||
Europe | 1.4 | 1.2 | 1.5 | 1.2 | (0.1 | ) | ||||||||||||||
Others | 0.4 | 0.3 | 0.5 | 0.4 | (0.1 | ) | ||||||||||||||
$ | 117.4 | 100.0 | % | $ | 116.3 | 100.0 | % | $ | 1.2 | |||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | $ | 333.6 | 91.7 | % | $ | 336.0 | 92.3 | % | $ | (2.4 | ) | |||||||||
Net sales – transitional Fab 3 foundry services | 30.3 | 8.3 | 28.2 | 7.7 | 2.1 | |||||||||||||||
Total revenues | 363.9 | 100.0 | 364.1 | 100.0 | (0.2 | ) | ||||||||||||||
Cost of sales | ||||||||||||||||||||
Cost of sales – standard products business | 221.3 | 60.8 | 245.9 | 67.5 | (24.6 | ) | ||||||||||||||
Cost of sales – transitional Fab 3 foundry services | 27.7 | 7.6 | 28.3 | 7.8 | (0.7 | ) | ||||||||||||||
Total cost of sales | 249.0 | 68.4 | 274.3 | 75.3 | (25.3 | ) | ||||||||||||||
Gross profit | 114.9 | 31.6 | 89.9 | 24.7 | 25.1 | |||||||||||||||
Selling, general and administrative expenses | 39.2 | 10.8 | 37.4 | 10.3 | 1.8 | |||||||||||||||
Research and development expenses | 39.0 | 10.7 | 34.1 | 9.4 | 4.9 | |||||||||||||||
Other charges | 17.2 | 4.7 | 0.6 | 0.2 | 16.6 | |||||||||||||||
Operating income | 19.5 | 5.4 | 17.8 | 4.9 | 1.7 | |||||||||||||||
Interest expense | (1.2 | ) | (0.3 | ) | (16.5 | ) | (4.5 | ) | 15.3 | |||||||||||
Foreign currency loss, net | (12.0 | ) | (3.3 | ) | (13.6 | ) | (3.7 | ) | 1.6 | |||||||||||
Others, net | 2.8 | 0.8 | 2.3 | 0.6 | 0.5 | |||||||||||||||
(10.4 | ) | (2.9 | ) | (27.8 | ) | (7.6 | ) | 17.4 | ||||||||||||
Income (loss) from continuing operations before income tax expense | 9.1 | 2.5 | (10.0 | ) | (2.7 | ) | 19.1 | |||||||||||||
Income tax expense | 6.0 | 1.7 | 0.8 | 0.2 | 5.2 | |||||||||||||||
Income (loss) from continuing operations | 3.1 | 0.9 | (10.8 | ) | (3.0 | ) | 13.9 | |||||||||||||
Income from discontinued operations, net of tax | — | — | 289.2 | 79.4 | (289.2 | ) | ||||||||||||||
Net income | $ | 3.1 | 0.9 | $ | 278.4 | 76.5 | $ | (275.3 | ) | |||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales – standard products business | ||||||||||||||||||||
Display Solutions | $ | 164.0 | 45.1 | % | $ | 216.4 | 59.4 | % | $ | (52.3 | ) | |||||||||
Power Solutions | 169.6 | 46.6 | 119.6 | 32.8 | 50.0 | |||||||||||||||
Total standard products business | 333.6 | 91.7 | 336.0 | 92.3 | (2.4 | ) | ||||||||||||||
Net sales – transitional Fab 3 foundry services | 30.3 | 8.3 | 28.2 | 7.7 | 2.1 | |||||||||||||||
Total revenues | $ | 363.9 | 100.0 | % | $ | 364.1 | 100.0 | % | $ | (0.2 | ) | |||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Net sales | Amount | % of Net sales | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Gross Profit | ||||||||||||||||||||
Gross profit – standard products business | $ | 112.3 | 33.7 | % | $ | 90.0 | 26.8 | % | $ | 22.3 | ||||||||||
Gross profit – transitional Fab 3 foundry services | 2.6 | 8.7 | (0.2 | ) | (0.6 | ) | 2.8 | |||||||||||||
Total gross profit | $ | 114.9 | 31.6 | % | $ | 89.9 | 24.7 | % | $ | 25.1 | ||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change Amount | ||||||||||||||||||
Amount | % of Net sales – standard products business | Amount | % of Net sales – standard products business | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Korea | $ | 87.0 | 26.1 | % | $ | 81.1 | 24.2 | % | $ | 5.8 | ||||||||||
Asia Pacific (other than Korea) | 237.3 | 71.1 | 245.9 | 73.2 | (8.6 | ) | ||||||||||||||
United States | 4.4 | 1.3 | 4.0 | 1.2 | 0.4 | |||||||||||||||
Europe | 3.8 | 1.2 | 3.3 | 1.0 | 0.6 | |||||||||||||||
Others | 1.1 | 0.3 | 1.6 | 0.5 | (0.6 | ) | ||||||||||||||
$ | 333.6 | 100.0 | % | $ | 336.0 | 100.0 | % | $ | (2.4 | ) | ||||||||||
Payments Due by Period | ||||||||||||||||||||||||||||
Total | Remainder of 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Operating leases(1) | $ | 4.0 | $ | 0.7 | $ | 1.5 | $ | 0.8 | $ | 0.6 | $ | 0.4 | $ | — | ||||||||||||||
Finance leases(1) | 0.2 | 0.0 | 0.1 | 0.1 | — | — | — | |||||||||||||||||||||
Water Treatment Services(1)(2) | 25.0 | 1.0 | 3.9 | 3.8 | 3.7 | 3.7 | 8.9 | |||||||||||||||||||||
Others(3) | 16.5 | 3.4 | 7.0 | 5.9 | 0.1 | 0.1 | — |