MX - Earnings call transcript Q4 2017 | Magnachip Semiconductor Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Q4 2017 MagnaChip Semiconductor Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Bruce Entin, Director of Investor Relations.

begin. may You

Bruce Entin

today website after joining the Access for XX, discuss financial be we MagnaChip's The and The will the market Thank of call releases other quarter us and is the for can filed webcast that release Relations fourth quarter on the of December the release. the call fiscal results stock fourth completion closed you found company's earnings to website. after year earnings XXXX. Investor year. will the today's archived for on provided in our be replay information telephone be X available shortly press and ended

call today our will then of overview the will of with and provide guidance of YJ for YJ are the Jonathan well Chief MagnaChip's following company's Jonathan provide a recent There a me results. operating QX Chief quarter Executive as financial provide YJ recap, as Kim, today's Officer. remarks. financial be performance. our first question-and-answer session an Officer, the And a Joining brief Financial will discussion Kim, XXXX. begin will

the conference of we expectations. may course forward-looking about MagnaChip's outlook and During statements call, business make this

other in our our all to SEC filings. of found and are statements facts uncertainties that as reflect and risks forward-looking Our and, therefore, historical Safe the beliefs discussion Harbor not as predictions subject and statements today are described in

over website our found YJ release on Kim. be non-GAAP principles alternative at useful. available prepared quarter may GAAP measures During financial the I'll but not The Relations an operating to the measures non-GAAP YJ? to the call, Investor accepted we the intended earnings comparable call illustrate most of MagnaChip's reconciliation measure performance turn directly are measures. discuss will accordance now financial fourth under are with also www.magnachip.com. tab to A in measures of be non-GAAP can in that generally the our accounting

Young-Joon Kim

XXXX QX on good to and Thank you, conference afternoon call. everyone our Bruce,

We million of competitive exited facing business in better entered kept OLED than P&L strategy impacted on an gross increase as our QX November, despite of continue profit in a our XXXX. business we and we Total early QX gross headwinds $XX.X $XX.X a XX.X% conference position sheet multiple stronger or with to a when balance fourth year. increase wafer in the raw our and in or gross identified a was with execute XXXX range. of and in these revenue the the $XXX.X gross margin. achieved slightly and results that margin XX.X% an guidance well-known midpoint in quarter that of prices our headwind above in call China compared in industry-wide of wafer XX.X% the and as On We the QX XXXX margin. softness profit million QX to despite lid both market million smartphone prices gross in came

again gross X% highlighting because are impact the X% estimated left if to unmitigated, case for XXXX. today be about margin We calendar is to worst on

wafer potentially higher to example, intention of later. a already several on this and give this prices, full devices, taken ground of to we We've select We have will one on the later intended the prices no and year. just have color decisive reached make letting to steps our to mitigate the are The customers more you Jonathan provide for power-discrete happen. But impact little are in steps to out help lost taking up we raised pricing also foundry we discuss and options. recover

a XXXX. protracted in believe weathered we we sharp in well we based are XXXX. And visibility, a OLED, As smartphone our current for for upon now slowdown business positioned rebound

the did we results, case. not QX QX, in expected as to compared slight revenue in OLED When reported we that to be a we had QX review. but Let's said turn up-tick out

in $XX.X OLED XX% represented in $XX.X of and in in display fact, million XX.X% down revenue business In the QX million total OLED was XX.X% QX. from QX. QX,

perspective Here on our from and what is happened here. where we go

As in XXXX. market soft we QX by the now, was China all smartphone know

launch In but of to see waited models features latest XXXX of the from smartphone mostly match caused than addition, that models own while China of many into new was late new shift smartphone global a launch drivers brand. delayed smartphone makers early new very the [ph] their a to and expected makers The hoped later OLED our timing into XXXX. in to smartphone using

new drivers the demand result, QX. and using a in smartphone drivers OLED shift our OLED older of models new for in lower-than-expected our timing resulted using was weak, As legacy OLED revenue

XXXX, introduced generation next OLED new market the display drivers the of to a of for feature-rich portfolio During we smartphones. X

apparently OLED global number new are highly Our design we a of for about or smartphones at up leading maker. are QX, grown to and including X new had our packaged latest smartphones chip-on-film to a resolution technology. When X The up product and the our drivers XXX-nanometer drive They market allow of IC lineup. wins OLED QX, The drivers to and XX:X screen layer had aspect ratios By low-cost to complex said XX-nanometer using models. development flexible we liked secured XX low-power design best-in-class. the Korean for that offer using QHD+. XX achieve and wins we X-layer cumulative phone new and end bezel-less XX, ability reported the

are standing so are design success, we not with far still. We pleased our but win

takeaway OLED understanding more revenue in may and our and have compared in soon XXXX and QX plans, hard quarter this marked the we great would us design this for of a we more in won early of of as launch put anticipate drivers achieved, be would of have next-generation If or the revenue as now are which within the already OLED of circumstances, even designs the OLED growth or OLED to million run. than introduced as growth already is by The we the new that in designs QX late QX and is but OLED wins anticipating We win to $XXX we're of XXXX, to range we the bullish about QX fully based because in of sustain XX% be XX stages expect beginning confident as clearly that XXXX potential are XX% Largely exceed increase rate revenue upon of of exceed the best XXXX. compared in for to to on XXXX. XXXX XXXX. year our later first more that XX-nanometer track XXXX development and achieved that to

this have we anticipated growth, fact, a foundry. second support In qualified external OLED to

QX, both and the the in lines, full in and of impressive which highlights for QX quarter performances both Power typical Foundry defying Now Power higher business turned let's revenue pattern, XXXX. and in turn to QX Foundry was as to the financial fourth and seasonal up for Revenue our compared edged over year.

Power the much for level showed with which revenue was XXXX, at by compared share XXXX break both QX, a in level a since year calendar the we in Foundry gross points as highest gross full with and calendar was reached and the the improvement revenue increased over about don't fact, in to highest double-digit Power but When full was XX.X% fab QX Power margin. in margin mix margin its XX Foundry favorable Gross improved looking gains year both In revenue in We high has performance, period. gross XXXX. optimization. out portfolio X margin you business percentage Contributing product a can in year utilization, achieved that gross years. to margin, results

the deeper dive business. on do Foundry Let's a

utilization pipeline in solid the and Foundry a We continue despite base Foundry seasonal track product XX% softness was build QX in the to in our in diversified QX. customer in low Fab range a business. typical business

which a refresh in Foundry this a good indicator than XX% New business regular quarter, for basis. products dynamic is we of the accounted more on of revenue how

New QX. products in similar a prior for revenue of the percentage accounted

technology, process applications, Our and QX. and specialized in power in accounted again, of ideal XX% for management once Foundry BCD IoT which revenue demand is EEPROM, high was for X.XX-micron

from we with top-quality won operations. highly company. ago, X X.X top year, Foundry: customers, a a nicely requires to executing Foundry also expert of semiconductor company, from hired Bottom X years supply years. award business quality direction. we the top X top-quality moving displayed this to been about a X recognized calendar high-efficient note results are we course, prestigious in line, One EEPROM processes in the level in hired a award We impressive a provide business XXXX, specialized as customer have analog Foundry years, IC and will its highest our services best of Tier semiconductor from a growth the Tier XXXX. recently fab compared expert XXXX manufacturing last XX% to BCD and another successfully the contribute we to grew and the anticipate interest technology but and global of right efficiency also more he last the For MagnaChip and

cost manufacturing team and to already and over improve throughput which methods new gross time. line and would of downtime, reduce Our benefit all yields identified has efficiency margin savings

in Power Group, fab, XXXX. for Super offer was by years Junction, fab our higher-value Power, followed XX% on more better Products QX the from the on products accounted optimized products, even vary commodity portfolio that Power the If margin. perspective A products high-margin including include from a and me XX% now, fillers, is revenue and than by corporate mix up starting too had healthier. drag ago, Standard we and portfolio Display. up we the forward QX, with let undifferentiated product business portfolio many killing QX few by nicely carry Now developing by of premium some Premium and margins. Power IGBT ICs nearly [ph] far Fast to many product

X previously, margin percentage Power improve years in profit increased over QX XXXX. profit margin the points over has by QX about As I've business XX to and in continued mentioned

right begin business as is the Power XXXX. Our on track we

drivers the referred of portion our actively business a a are On as our why portfolio as which the business years because Our identified margin the short profit we group of well strategy. non-OLED business internal we Display business price-sensitive display headwind portions In comprised optimization pursuing a high-margin ways, ago, of non-OLED segment. competitive, business. highly as automotive past of OLED fall QX our and is markets similar low what LCD is is resembles sold The objectives. this in few in often of this call, as on business calls business it to we some a Power

mix the we different is business MagnaChip's away story. market product XXXX, overall non-OLED Despite a exceeded revenue affect our QX and new key the our in a for in strategy corporate in the long gross will becoming As Display have business, a are walked reality the with second for growth our for OLED is consistent early which televisions with a quickly driver average is in standard which in the run. OLED range year utilization stages margin challenging OLED we profitability poised wide to recently business annual in and believe technology, a product but adoption fab again of from low-margin, over the improving for facto our We temporarily which de of an OLED a and virtual lineup, example, of be And row. mobile market devices, UHD once MagnaChip devices. XXXX. is

OLED We display foldable that draw an also the smartphones, now, growing inevitably OLED competitions. is into that and largest independent be new This display technology volume. adapted and markets, are shipping will But for foldables eventually in attractive IoT, other market will high-resolution in drivers supplier we believe automotive. including large

are We They panel having be top makers well to our the to market X afterwards positioned neighbours panel command Jonathan. that, that close on I OLED in happen business provide will and and first overwhelming by trends to to share. With it quarter particularly XXXX. our wrap return Jonathan? ties I also guidance to for world's outlook capitalize future of over market will Korea. financial up turn and

Jonathan Kim

track smartphone we XXXX you, to expand and also call. increase those opportunities that On business margins We business. wafers our angles. lower-than-desired everyone as identified for streamline an on prices results the put actions non-OLED the higher to all non-OLED revenue market, on call, welcome YJ, our headwinds headwinds. YJ shortage. as said faced we're the the I and a portion acknowledged before, China to and to Thank and in last Display back in Display improve soft working industry-wide profit to OLED in identified we a we're identified market And conference and our taking the of due business and presence

secure made Here steps adequate our suppliers taken supply to wafer prepayments are from and continue may the effects our to to Number to some one, to pricing to time, we've take of the time support of offset and/or we specific have, costs. business. higher favorable

and mitigate other increased and a Number to we the signed customers balance pricing And $X supply costs. steps agreement, prepayments move is which in increase supply be of for we the Relations anticipated have give remind we're fiscal agreements in has increase fourth website wafers reflect wafer believe, wafers tab. of in the million, approximately YJ the that, margin our QX selected three, that activity common we for supply quarter look compared view to other wafer for on financial to prices. Total efficiency was million to a and pricing. gross potential the to our recorded we deliberate the and our recorded highlights. to based $XXX down team business multi-period XXXX I'd steps our savings one to a methods wafer current chain outcomes Prepayment in to X.X% gross you purchase During is of with release in made taken the our arrangement, address current inventory, take sheet. year manufacturing within under can to number note, attractive many revenue QX $XXX.X fab two, available down at like supply certain opportunistic I'd QX in Investor XXXX already have practice, like X.X% longer stock identified as about was we to $XXX.X the be in continue some suppliers. buffer from in flattish ensure XXXX year, upon acquiring intend assets fiscal Number found adjust million XXXX. of additional with ago. to from out the floor be our this cost margin on XXXX for QX, With as as And that and ramped on business. raw the attractive using the we taking adequate When financial Total headwinds, to revenue term prices, appropriate share four, million, which is was million at our mentioned, our full results we on fiscal results we XXXX. raw a $XXX.X wafer including earnings or up

XX.X% from period for in XX.X% XX% XX revenue ago. of XXXX, $XX.X XX% same or Total with in $XX.X or year of was of largest top compared the accounted in profit down QX revenue Our customers a XXXX. million as gross million in QX

a percentage primarily Services, XXXX $XX.X general $XX.X of year, in result or charges increased XX.X% QX gross a to product X million million the the XX.X% to fab Korean to QX QX $XX.X of Tax primarily and a from revenue For margin The SG&A ago. expenses million in higher XX.X% or headcount optimization XX.X% to audit were by as plan. product for special National and of KNTS. portfolio in completion as due last nearly as taken the compared reduction Selling, relates utilization, tax quarter compared of revenue improved points of for increase year or the mix, in a administrative

As discussed company. the filed penalty X-K tax November had in the our million assessed which by aggregate the accrued XX, $X.X of KNTS already XXXX, was on been $X by million, and

their highlight expense. to you with which fine other million, accruals In connection is certain tax administrative included like adjustment in QX million an that $XX.X of addition, SG&A $X has was KNTS performance-based an item approximately assessed that of compensation in I'd to remind related One audit. XXXX, to

will on normalized quarterly million a at to that continue For on basis. believe to approximately trend million we SG&A our being, the $XX time basis $XX continue a to

expenses of QX subject taxes While net We're the as $X.X of U.S. compared is XXXX. reassessment effects primarily of of on tax of expense million and tax million the multiple certain enacted of result from liabilities to in the XXXX a P&L Korea. you We income or XXXX and income positions benefit or foreign be tax believe as operations in subject compared in million the of $XX.X QX. taxes, net will in recorded the recently immaterial. and that $XX.X $X.X know, a during are our to to we impact in development million difference XX.X% to tax same were as States are the XXXX. we QX of our as million due a law Research examining X.X% transaction The a $X.X revenue in and QX in tax United reversal including jurisdictions, period

new we including fuel in EBITDA, We in the R&D expense non-GAAP to financial Adjusted rise profitable products, to initiatives, will continue a new continue to likely future. as OLED believe in invest XXXX growth in $XX.X XX.X% fiscal X.X% of XXXX. QX million million with revenue or EBITDA measure, XXXX increased or $XX.X $XX.X in year of XX.X% in QX compared $XX.X Adjusted from million was XXXX. as in million that

Cash balance Turning QX of of QX Inventories million $XXX.X compared QX, of XXXX. at $XX the end at about at totaled million at end with sheet. the were of end million the QX as XXXX. the $XXX.X the the cash to XXXX million end at flat million QX and equivalents with of $XX.X and $XX.X end

cash the early discounts accounts financial shipments, of in are in the end the million receivables at in from position like a change the decision FX $XX.X accounts raw strategic with $XX.X is million The the practice possible wafer QX potential we stock effects for that in to significantly at customers XXXX. accounts price $X.X end I'd deliberate previously, payable, end receivable in million buffer mentioned deliberate to our the purchase in of is and advance year. XXXX hikes. $X.X Accounts increase substantial that QX all million the million at expenditures was XXXX of highlight FX item $XX.X wafers $XX.X and million part, exchange end year-over-year increase $XX current. was attributable of as QX receivable As by limit as The in in and offering practice The XXXX. increase in at One in to in of $XX of end strategy to payments. with as this XXXX. compared compared to our from to reflects Accounts million of the QX QX and million timing in and added at were QX ago. a QX deliberately QX year a million a $XX.X raw payable and compared shield of us were Capital QX to QX of

For fiscal XXXX. to $XX.X purchased remainder was $XX investments. to equipment equipment XXXX, The compared capital increase expenditures million were revenue. to an to approximately capital anticipated expect million due was and IT with support as in allocated We currently expenditures our in mainly increase maintenance $XX.X million. be The in XXXX

to moment Now our a Foundry accounting like that standard U.S. take to in mainly requires a Foundry recognized affects of upon GAAP. companies than revenues I'd Group, discuss believe for publicly Services the all revenue be We new XXXX this new standard to our which became traded accounting time under rather mandatory reporting shipment. over

over have Although you to change may revenue do the it believe impact time. will accounting currently new standard, of a we not recognition material timing this

some was closed a that on let respects, overhang. Now the up on books up. were sum items and for transition year me We MagnaChip. cleaned XXXX issues In

through businesses in profitability I'll YJ. to turn savings return. the the growth call the fully committed position leave the from same took optimization, the highest steps we that, with you With a of remain for investing back for to portfolio the YJ? ago, overall message potential rate and also of to MagnaChip. by company relentless I'll year with We cost

Young-Joon Kim

driver is and shaping OLED a growth in impressive sharply you, as rebound on market is Foundry a new Power delayed financial by The to hold overshadowed and XXXX business key for Thank in and our soft XXXX in on smartphone China track that a introductions be different completely of models MagnaChip. smartphone performance were story. Jonathan. kept OLED QX. up

years We many we and than in have our customer more is ago, OLED lineup base twice had more drivers diversified. as X than our now

now a difference high seems depend big running and With the new and upon of manufacturing QX R&D from panel slowest profitability MagnaChip better considerable horizon? as drivers, pilot let's overall is that, guidance. to year, naturally success to Right our challenges are XXXX. to competition? improved To are a we product that. example, up, We quality. high but revenue an panel volumes again every ever but future, smartphones about in of the day, happen OLED like foundation future makers set by companies strategy, about XXXX but in initiatives committed the cost market, marketplace. invest OLED the only for yet XX.X% will on doing and MagnaChip. our solid we there business positioned see remain we only XXXX. growth quarter XXXX, What and There's revenue the clearly X who remain, at OLED panels both. with in turn the to supplier a compared have profitability for the with seasonally to the market be are smartphone once independent It on executed Our and What between QX fuel QX a foreseeable line to in benefit Challenges Last than to now the the market focus the growth in are we declined to there despite rumors low high Typically, makers for in about yields, upturn. to forward-looking in sum also growth.

to ongoing portfolio revenue The compares and $XXX.X for quarter down For first the typical in in million ranges million quarter revenue with This of to of quarter to seasonal to range of due the X.X% result $XXX.X QX compares profit the silicon quarter sequentially increase the to anticipates XX.X% million, XX%. fourth factors at be in and utilization optimization optimization the prices, in in and An of first fourth rate be in of XXXX margin will the and $XXX XXXX. the seasonal portfolio of guidance XX% of midpoint activities. to the of a projected in patterns XXXX. first XXXX, to gross XXXX range the million in $XXX quarter XX.X% wafer due activity lower product fab MagnaChip

turn to Bruce. call will I the back Now Bruce?

Bruce Entin

YJ. Thank you,

this remarks. Gigi, our questions. call So concludes now the for We'd prepared open to like

Operator

And from first Suji is question from Instructions] our Capital. Desilva Roth [Operator

line Your is open. now

Suji Desilva

Hi, on progress YJ. Hi, Jonathan. Congratulations the year. in 'XX

a ahead the spread These market. have the those the programs? 'XX? OLED early delayed, 'XX? of question released situation through Barcelona or programs So on projects MWC of being smartphone been that Are what's in will status launching the out they What's be

Young-Joon Kim

Yes.

thank Suji. So you,

First end design last in that last of about all, and XX more month. year, we disclosed wins had wins of also have we we today

production And So right our now. product into we but many of dozen so the year, that compared more already can that and production, launch quarter. gone OLED than very launches, can't the are of of about that, this last the XX% that for leaves we last And X has shipped so QX than in disclose a confident more why quarter-to-quarter we them we that's year. many to grow be expect we introduced product revenue will

Suji Desilva

And you don't ramping? there. that but smartphone customer ramp? if is I that you've discuss Or know Okay. Korea OLED the Great. When this, will won flagship that then can already

Young-Joon Kim

XXX-nanometer, been that to introduced has referring you're year. If last already

Suji Desilva

introduced. already was that Okay,

pruning us sense are that way some we non-OLED the how or expect the of non-display revenues think what just there to Is you - Okay. you give part flattish that? in the understand about business, portfolio Display Display the sorry, And there? total tracking. to of I'm there? the What's the should Can then

Young-Joon Kim

Yes.

mentioned this we in call, there's the we last earnings non-OLED business quarter. on So emphasizing that and again headwinds are

portfolio, done gross what power So to now like side. improve on of that display are optimization the the do margin Power to we've starting the the just in we

look we are portfolio to trying - well we a as each are product. overall line, taking margin optimize So at the display product display. the each of product as And

started that work. to begin So we have

Suji Desilva

midpoint to an gross you to understand And the you last XXXX? guidance, you plays end Jonathan, wafer And XXXX be on and if margin Is tightness Do to to Okay. you way from throughout persist to I gross expect about then see out? think expect it XX% similar tightness. question the XX.X% And XXXX. potentially? the the year. last versus your the margins Do that how guided

Jonathan Kim

Right.

correct. going see buffer wafer And that going to of that market as the the pricing, I it's mean, market's move, think out with dynamic, but tightness that in market's hard the way about market. specifically think common do beefing a the to way be about the raw the at there's taking we're that So up pinpoint so is it including a we've the knowledge that respect to we With is in talked into we agreements, to the minimize impact, I pretty margin long-term XXXX that the making shortage and looking pretty gross wafers. number entering on steps we've stock. to prepayments the also is

So being XX% margin made being XX%. XX%, also flattish. also guided QX we to commentary it the we around And of to that, potential that see the gross we having all said midpoint XXXX

Suji Desilva

guys. Okay. I'll jump Thanks, back in queue.

Jonathan Kim

you. Thank

Operator

our Atif Citigroup. And Malik next from you. Thank is question from

open. Your is now line

Atif Malik

questions. Hi. Thanks for taking my

U.S., your China and for YJ, exposure Korea OLED rank business? your revenue you First, customer can

Young-Joon Kim

Yes.

geographic customer that So a that - mentioning lot giving haven't except the the happen we business breakdown, been the been now of makers. we've China to smartphone and be

of So XX design end had of so end more we last quarter, XX more customer makers, - than you diversified. we more color, out but it's of smartphone give as to that wins that have

seeing lot all QX. customers the launch in of or will already And QX so from product be seeing be those we into either going a

Atif Malik

could the better broadly mean, about quarter? the U.S. if the companies of it is RF your can filled side, just you're China the of units, hole maker And slow with Korea? design March then And I seeing win smartphone guys still commentary on other the China and March in function that which are a some Great. hole that OLED in a just talk the your little seeing bit smartphones. the different China of seeing we're other you a be quarter. semiconductor health Is that by from

Young-Joon Kim

Yes.

very question. a good asking you're So

type first So know, product last this with if the look mean, on quarter 'XX, our introduced that I new are on all new at type as high-end cetera, that to XX:X with shapes ramp aspect you are coming with and a we revenue the this of we ramp different design midrange bezel-less year, seeing QHD+ wins cost midrange driver with all, based new you our relying you the X more display, to new And low et and market. ranging from ratio. XX trench-type variety designs the the to and ultra and

hearing OLED effect will also is because the slow, to less their say, the And the quarter, we price that But the OLED. is us fourth makers we So smartphone a that are that I in which LCD that's China - products. counting are adoption drop - there's the on smartphone have high market to than end, this pressured quarter. what why new have, we the for of panel in midrange are and they an because don't impacted

on its that's is less and win think is and product is thing display ramp, in a counting the than reflection this better we and OLED I So moving new XX market good think us that also market. seeing the type. are more you brightness, the crispiness the But because mixed the power results much to for I design are

Atif Malik

CES move the to ASPs, as your scale at displays, then you How displays. saw talk displays? just And opportunity? rollable new does bunch Okay. to Can we foldable or about a rollable-type you your this year, that OLED of foldable,

Young-Joon Kim

Yes.

Of product what phone may those not has course, or because has introduction be anticipate prelude the we been there. cannot

complex more solution is that when I is than the advanced will require are could what that general, say think, And phone can content Therefore, in to kind it's more or those we take we provide - IC. ASP in for what ready better AMOLED be driver and ready. typically, general. now However, a of it

Atif Malik

Okay. flat foundry able your And one Jonathan. clarification assuming for of then you last the customers just higher quick you to cost margin flat the margin will that? Are you this that revisit Can that gross to year. gross on some wafer pass being A assumption? be in

Jonathan Kim

devices. pricing we're that meet our power-discrete various we we a having And the in this out and talked have positioned to think can company we topic is to be also options. fact delicate customers, could the to that discussions fact on main about a already prices And talked reached customers' where continue requirements. raised I the and Well, select is we sure here have goal about way our the make that around best foundry different one, we

Atif Malik

Thanks.

Operator

Thank you. And Mertens Needham. our Robert next is question from from

now open. Your is line

Robert Mertens

taking product again, for the nice highest had question. around about in the I sense to I takes just Thanks how you done different group. up in business to a throughout the quarter. I'm revenue you that more year. Foundry part. little view sort my if puts and get and wanted quarter I the a also, and sure get guidance a not seen this for just with of quarter. next And lines wanted if missed just you've sense previous mean, going your Hi. I forward of the the down that

Young-Joon Kim

Yes.

So for the thank you question.

product. by not do the we typically, give So guidance

the guidance where midpoint give quarter, what will the did we quarter. the million is $XXX on revenues So the first this be for range

also than Power OLED expect revenue product color - the QX whether each we it's We line, Other the of to on more XX%. gave quarter, the the have grow that provided or than we Foundry. this not on that, color

foundation in back is key to technology we That have did EEPROM to also the is and every - trend year. Foundry, BCD we hold. growing continued double-digit and XXXX, said Going the growth

and So of to best trend - that doing division. and and we progress are diversify and the is our customers more, that

Robert Mertens

utilizations. just I year? into part lower you guiding is of think trending - before should more could ask for expecting quarter How seasonal I utilizations the were mean, know a quarter the down. this that? if the one the first we are particularly back quarter, think around high I And but the margin throughout about just last, about how being story that I first Great. gross Okay. Or and they overall up? should

Jonathan Kim

margin. guided seasonal When well as So we XX% to there's baked aware, XX% utilization certainly QX, impact a that the and the component utilization gross - of lower utilization in. already been you has as are will for

overall there we is fiscal margin give XXXX, the with take. around for XXXX the commentary year, for margin be to so a or And gross flattish gross said potential

on in later But is to look given And seasonal seasonal, the ahead, that's decline as a there back going pick be up so it utilization. should we year.

are the talked that non-OLED product we going fact The of other within optimization. item the we through process about that portfolio was business, the

So utilization But there we that's believe term, that, profitability. both impacted. going be on will component is longer a company, as well there where the in benefit the to margin gross as

Robert Mertens

Okay. Great. Thanks questions. my for taking

Jonathan Kim

you. Thank

Operator

would Bruce Investor Director time, back closing call to showing the over At I remarks. turn to further this I you. of Entin, Relations, Thank am like no for questions.

Bruce Entin

Gigi. you, Thank

concludes Investor on future Please earnings today. So you call. details joining events our for quarter of MagnaChip's Thank fourth look us this website. for Relations conference our

Operator

for you thank in gentlemen, and the concludes conference. Ladies participation your program. This today's

You may disconnect. now

Magnachip Semiconductor (MX) 6 Feb 182017 Q4 Earnings call transcript