Revenue for the three months ended March 30, 2008 was $203.1 million, compared to $151.8 million in the first quarter of 2007.
Gross margin was $47.9 million or 23.6% of revenue for the quarter ended March 30, 2008, compared to $14.9 million or 9.8% of revenue for the first quarter of 2007.
Operating expenses for the first quarter of 2008 were $54.7 million or 26.9% of revenue, compared to $57.8 million or 38.1% of revenue for the first quarter of 2007.
Operating loss was $6.8 million during the current quarter, compared to an operating loss of $42.9 million in the prior year quarter.
Net interest expense for the first quarter of 2008 was $15.7 million, compared to $14.4 million in the first quarter of 2007.
Net loss for the three months ended March 30, 2008 was $67.9 million, compared to a net loss of $67.0 million in the first quarter of 2007. The net loss results were negatively impacted by a foreign currency loss of $42.9 million in the first quarter of 2008, compared to a foreign currency loss of $7.4 million in the first quarter of 2007. A substantial portion of this net foreign currency loss resulted from a non-cash translation loss recorded for intercompany borrowings at our Korea subsidiary that are denominated in U.S. dollars.
Sang Park, Chairman and CEO of MagnaChip Semiconductor, commented, "We continued to make progress in 2008 vs. 2007, with an increase in revenues of 33.8% vs. the first quarter of 2007. During the quarter, we began sampling our new line of power management products as part of an overall strategy to leverage our analog and mixed signal technology platform to expand our market opportunities. We expanded our image solutions business to new end markets and increased our account penetration in our display solutions business. In our Semiconductor Manufacturing Services business, we strengthened our specialty technology portfolio and achieved a design win at a recognized leader in the microcontroller market. Our product pipeline is strong, and our design win activity is at an all-time high as we enter into the second quarter."
Robert Krakauer, President and CFO of MagnaChip Semiconductor, said, "We continued to make progress in the first quarter of 2008. Our gross margin and operating profit improved year over year, as we focused on maintaining our cost competitiveness. Though some of our markets are slower than expected, we believe we are well-positioned for continued performance improvement throughout 2008."
Investor Conference Call / Webcast Details
MagnaChip will report full results for the first quarter 2008 on Thursday, April 24, 2008 at 10:00 a.m. in New York (11:00 p.m., Thursday, April 24, 2008 in Seoul). The conference call will be available at www.magnachip.com and by telephone at +1-(877) 407-0784 (domestic) or +1-(201) 689-8560 (International). A replay of the call will be available in two hours after the call through midnight on Thursday, May 1, 2008 in New York (1 p.m. on Friday, May 2, 2008 in Seoul) at www.magnachip.com and by telephone at +1-(201) 612-7415. The account number to access the replay is 3055 and the conference ID number is 279852, respectively.
About MagnaChip Semiconductor
Headquartered in Seoul, South Korea, MagnaChip Semiconductor is a leading, Asia-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications, such as mobile phones, digital televisions, flat panel displays, notebook computers, mobile multimedia devices and digital cameras. The Company has a broad range of analog and mixed-signal semiconductor technology, supported by its 28-year operating history, large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, visit www.magnachip.com.
Certain statements contained in this press release contain forward-looking statements regarding MagnaChip Semiconductor's operations, economic performance and financial condition. Although MagnaChip Semiconductor believes that the expectations reflected in these statements are reasonable, no assurance can be given that such expectations will prove to have been correct as a result of many factors, including those described in our annual report on Form 10-K for the year ended December 31, 2007, which was filed with the Securities and Exchange Commission on March 31, 2008.
CONTACT: In Korea: In the U.S.: Mi-Jeong Han, PR Manager Joseph Villalta at The Ruth Group Tel: 82-2-6903-3195 Tel: +646-536-7003 firstname.lastname@example.org email@example.com MagnaChip Semiconductor Condensed Consolidated Statements of Operations (In thousands of U.S. Dollars, except per unit data) (Unaudited) Three Months Ended March 30, April 1, 2008 2007 Net sales $203,052 $151,783 Cost of sales 155,186 136,860 Gross profit 47,866 14,923 Operating expenses: Selling, general and administrative 19,224 22,729 Research and development 36,347 35,118 Restructuring and impairment charges (875) - Operating loss (6,830) (42,924)