Magnachip Semiconductor Corp (MX) 2025 Q3 法說會逐字稿

Hello, and thank you for standing by. Welcome to Magnachip Semiconductor Corporation third-quarter 2025 earnings conference call. (Operator Instructions)

您好，感謝您的耐心等待。歡迎參加 Magnachip Semiconductor Corporation 2025 年第三季財報電話會議。（操作說明）

I would now like to hand the conference over to Mike Bishop. You may begin.

現在我將把會議交給麥克畢曉普。你可以開始了。

Thank you. Hello, everyone, and thank you for joining us to discuss Magnachip's financial results for the third quarter ending September 30, 2025. The third-quarter earnings release was issued today after the close of market and can be found on the company's Investor Relations website. The webcast and replay of today's call will be archived on our website shortly afterwards. Joining me on today's call are Camillo Martino, Magnachip's Chief Executive Officer; and Shin Young Park, our Chief Financial Officer.

謝謝。大家好，感謝各位參加本次會議，共同探討 Magnachip 截至 2025 年 9 月 30 日的第三季財務表現。第三季財報已於今日收盤後發布，可在公司投資人關係網站上查閱。今天電話會議的網路直播和回放將在稍後存檔於我們的網站上。今天與我一起參加電話會議的有 Magnachip 執行長 Camillo Martino 和財務長 Shin Young Park。

Camillo will discuss the company's recent operating performance and business overview, and Shin Young will review financial results for the quarter and provide guidance for the fourth quarter. There will be a Q&A session following the prepared remarks.

Camillo 將討論公司最近的經營業績和業務概況，Shin Young 將回顧本季的財務表現並提供第四季度的指導。在發言結束後將進行問答環節。

During the course of the conference call, we may make forward-looking statements about Magnachip's business outlook and expectations. Our forward-looking statements and all other statements that are not historical facts reflect our beliefs and predictions as of today, and therefore are subject to risks and uncertainties as described in the Safe Harbor statement found in our SEC filings. Such statements are based upon information available to the company as of the date hereof and are subject to change for future developments. Except as otherwise required by law, the company does not undertake any obligation to update these statements.

在電話會議期間，我們可能會對 Magnachip 的業務前景和預期做出前瞻性陳述。我們的前瞻性聲明以及所有其他非歷史事實的聲明反映了我們截至今日的信念和預測，因此存在風險和不確定性，詳情請參閱我們在提交給美國證券交易委員會的文件中“安全港”聲明。上述聲明均基於本公司截至本聲明發布之日所掌握的信息，並可能因未來發展而有所變更。除法律另有規定外，本公司不承擔更新這些聲明的任何義務。

During the call, we'll also discuss non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles, but are intended as supplemental measures of Magnachip's operating performance that may be useful to investors. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in our third-quarter earnings release in the Investor Relations section of our website.

電話會議期間，我們也將討論非GAAP財務指標。這些非GAAP指標並非依照公認會計原則編制，而是作為Magnachip營運績效的補充指標，可能對投資人有用。您可以在我們網站投資者關係部分的第三季財報中找到非GAAP財務指標與最直接可比較的GAAP指標的調節表。

With that, I'll now turn the call over to Camillo Martino. Camillo?

接下來，我將把電話交給卡米洛·馬蒂諾。卡米洛？

Thank you, Mike, and good afternoon, everyone. It has been approximately 2.5 months since I was appointed Interim CEO. Magnachip is a company with a rich history of innovation, a reputation for high reliability and quality, and strong customer relationships. With that said, for the past couple of years, I believe we have failed to execute on our promises. I know our shareholders are frustrated and naturally upset. We are moving quickly to improve financial fundamentals and deliver long-term shareholder value.

謝謝你，麥克，大家下午好。我被任命為臨時執行長至今已經大約2.5個月了。Magnachip 是一家擁有悠久創新歷史、以高可靠性和高品質著稱、並與客戶保持良好關係的公司。話雖如此，我認為在過去的幾年裡，我們未能履行我們的承諾。我知道我們的股東們感到沮喪和憤怒，這很正常。我們正在迅速改善財務基本面，並為股東創造長期價值。

There are five very critical objectives for both Shin Young and myself. Number one, to reposition our product portfolio to be significantly more competitive; number two, to rightsize our OpEx structure for a pure-play power business; number three, conserve cash; number four, increase our transparency with our shareholders; and number five, explore strategic alternatives.

對申英和我來說，有五個非常重要的目標。第一，重新定位我們的產品組合，使其更具競爭力；第二，調整我們的營運支出結構，使其更適合純粹的電力業務；第三，節約現金；第四，提高我們對股東的透明度；第五，探索策略選擇。

Consistent with our communications back in August, our Board continues to review all strategic alternatives. At the same time, I see tremendous potential here, especially with the lineup of a new generation of products either recently launched or to be launched soon and with a very strong product roadmap ahead. I believe we can execute our product strategy to deliver on that potential.

正如我們在八月所溝通的那樣，董事會將繼續審查所有戰略方案。同時，我看到了這裡的巨大潛力，特別是考慮到最近推出或即將推出的新一代產品陣容，以及非常強大的未來產品路線圖。我相信我們能夠執行我們的產品策略，從而發揮出這種潛力。

After joining the management team, we undertook a complete bottoms-up analysis of the company to highlight ways to correct course and put us on a path to recovery. We identified some significant changes in the near term and medium term that will require precise product planning and execution. I would like to present on this call our findings so far and outline the initial steps in our plan to address our issues and also our opportunities for the short term.

加入管理團隊後，我們對公司進行了全面的自下而上的分析，以找出糾正方向和使公司走上復甦之路的方法。我們發現近期和中期內會出現一些重大變化，需要精確的產品規劃和執行。我想在這次電話會議上介紹我們迄今為止的研究成果，並概述我們解決當前問題的初步規劃步驟，以及我們在短期內面臨的機會。

My goal today and going forward is to be transparent about where we stand and where we are headed, the challenges we will likely face along the way and our plans to address them. Let me first share our high-level results of Q3.

我今天以及未來的目標是，坦誠地說明我們所處的現狀和未來的方向，我們在過程中可能面臨的挑戰以及我們應對這些挑戰的計劃。首先讓我分享一下我們第三季的整體成果。

Q3 revenue came in at $49.9 (sic - see slide 3, "$45.9 million") at about the midpoint of our guidance range. And gross profit margin was 18.6%, which was at the low end of the guidance range. These results reflect three realities. One, the pricing pressure on our legacy products is especially intense in China, some business we actually had to walk away from. Number two, lower fab utilization as a result of this pricing pressure and also due to the higher level of months of inventory at the end of Q3, especially in China.

第三季營收為 4,990 萬美元（原文如此 - 參見投影片 3，「4590 萬美元」），大約在我們預期範圍的中點。毛利率為 18.6%，處於預期範圍的下限。這些結果反映了三個現實。第一，我們傳統產品在中國的價格壓力尤其巨大，我們甚至必須放棄一些業務。第二，由於價格壓力以及第三季末庫存月數較高（尤其是在中國），晶圓廠利用率降低。

On the positive side, we did see significant strength in the Communications segment with revenue increasing 34% sequentially quarter on quarter and 95% year over year.

從積極的方面來看，通訊業務板塊表現強勁，營收季增 34%，年增 95%。

Regarding fab utilization. While we anticipate fab utilization rates will decline again in Q4, we believe that the Q4 fab utilization rate is likely to hit the low point of around the mid-50s to manage -- the mid-50 percentile to manage higher levels of inventory in the channel, and we expect to execute a $2.5 million incentive program to try and address it.

關於晶圓廠利用率。雖然我們預計第四季度晶圓廠利用率將再次下降，但我們認為第四季度晶圓廠利用率可能會降至 50% 左右的低點，以便應對渠道中較高的庫存水平，我們預計將執行一項 250 萬美元的激勵計劃來嘗試解決這個問題。

In the meantime, we cannot afford idle capacity. And so we are pursuing every opportunity to aggressively load the fab with existing products to sustain operating leverage and stabilize, and then improve gross profit margin until our new generation products contribute more meaningfully. After Q4, we expect utilization to begin to recover, and we believe the new-generation products will improve this metric in the future.

同時，我們不能承受產能閒置的後果。因此，我們正在抓住一切機會，積極地將現有產品投入生產，以維持營運槓桿並保持穩定，然後提高毛利率，直到我們的新一代產品做出更有意義的貢獻。第四季之後，我們預計利用率將開始恢復，我們相信新一代產品未來將改善此指標。

These financial and operating results and the results of our analysis led us to create five objectives that I stated earlier, and I would like to elaborate on each one of these now. Our first objective is to reposition our product portfolio to be significantly more competitive. Magnachip's results clearly show the headwinds we are facing. Our competitive product position in China's industrial markets and the global consumer TV sector has significantly worsened over the past year. Intense price competition, coupled with an aging product portfolio, have taken their toll.

這些財務和營運結果以及我們的分析結果促使我們制定了先前提到的五個目標，現在我想詳細說明每一個目標。我們的首要目標是重新定位我們的產品組合，使其更具競爭力。Magnachip 的測試結果清楚地顯示了我們所面臨的逆境。過去一年，我們在中國工業市場和全球消費電視領域的競爭地位顯著惡化。激烈的價格競爭，加上產品組合老化，已經造成了不利影響。

Despite that, the engineering foundation here at Magnachip is solid, and we are taking decisive actions to stabilize our competitive position that we can then build upon. Namely, we are fast tracking new-generation product development to improve our competitiveness and achieve revenue growth, margin expansion, and a return to improved rates of fab utilization. Areas of focus for these new-generation products are our low- and medium-voltage MXT MOSFET products, our Super-junction MOSFETs products, and also our IGBT products. We are well underway with this initiative.

儘管如此，Magnachip 的工程基礎依然穩固，我們正在採取果斷措施來鞏固我們的競爭地位，並在此基礎上繼續發展。具體而言，我們正在加快新一代產品的開發，以提高我們的競爭力，實現營收成長、利潤率擴大，並恢復到更高的晶圓廠利用率。這些新世代產品的重點領域包括我們的低壓和中壓 MXT MOSFET 產品、我們的超結 MOSFET 產品以及我們的 IGBT 產品。這項計劃正在順利推進。

During the first nine months of 2025, we have released 30 new-generation products compared with only two new-generation products in the same time period for 2024. In Q4 2025, we currently expect to launch at least another 20 new-generation products, giving us a total of at least 50 new-generation products in 2025 as compared to only four new-generation products in all of 2024. Generally speaking, we consider a new-generation product is one in which we achieve a greater-than-30% improvement in performance per unit area.

2025 年頭九個月，我們發表了 30 款新一代產品，而 2024 年同期僅發表了兩款新世代產品。預計到 2025 年第四季度，我們將推出至少 20 款新一代產品，使 2025 年新一代產品總數達到至少 50 款，而 2024 年全年僅推出 4 款新一代產品。一般來說，我們認為新一代產品是指單位面積性能提升超過 30% 的產品。

The challenge is the revenue ramp time for these new-generation products to impact our financial results. New-generation products will take multiple quarters or more to meaningfully contribute to the income statement, depending on the market segment. However, we are already seeing the initial results in Q3 as 2% of the total revenue came from new-generation products. We expect that number to be approximately 10% in Q4 and 2026.

挑戰在於這些新一代產品需要多長時間才能產生收入成長，進而對我們的財務表現產生影響。根據市場區隔的不同，新一代產品需要幾個季度甚至更長時間才能對損益表做出實質貢獻。不過，我們已經在第三季看到了初步成果，2% 的總收入來自新一代產品。我們預計到第四季和 2026 年，這一數字將約為 10%。

We are also very excited about our IGBT announcement today. We have signed a strategic licensing agreement with Hyundai Mobis regarding the use of IGBT technology, which stands for Insulated Gate Bipolar Transistor technology. We have been developing this together for many years now. We believe this agreement will enable us to expand our IGBT footprint beyond automotive markets into industrial, AI, and renewable markets. Industry analysts forecast the IGBT market, which will reach nearly $17 billion by 2029, up from $11 billion in 2024.

今天，我們對IGBT的發布也感到非常興奮。我們與現代摩比斯簽署了關於使用IGBT技術的戰略許可協議，IGBT是絕緣柵雙極電晶體技術的縮寫。我們多年來一直在共同開發這個項目。我們相信，這項協議將使我們能夠將IGBT的業務範圍從汽車市場擴展到工業、人工智慧和再生能源市場。產業分析師預測，IGBT市場規模將從2024年的110億美元成長到2029年的近170億美元。

Hyundai Mobis is a global auto parts provider focused on delivering differentiated mobility solutions that combine software and hardware together. And it is also associated with Hyundai Motor company, the world's third largest automotive manufacturing company. This partnership is still in its early stages, but we expect to see qualification results in 2026 and currently expect initial revenue to start in 2027.

現代摩比斯是一家全球汽車零件供應商，專注於提供將軟體和硬體結合的差異化移動出行解決方案。它也與世界第三大汽車製造公司現代汽車公司有關。這項合作仍處於早期階段，但我們預計將在 2026 年看到資格認證結果，目前預計初始收入將於 2027 年開始。

Moving to the second objective to rightsize our OpEx structure for a pure-play power business. We have initiated multiple OpEx cost reduction programs, including workforce streamlining that will generate approximately $2.5 million of annualized OpEx savings. We will see the early impact of these actions in Q4 2025. With the current shutdown of the display business and the execution of this workforce reduction program, our overall headcount is expected to be reduced by more than 20% when comparing the end of 2025 versus the end of 2024.

第二個目標是調整我們的營運支出結構，以適應純粹的電力業務。我們已啟動多項營運成本削減計劃，包括精簡員工隊伍，預計每年可節省約 250 萬美元的營運成本。我們將在 2025 年第四季看到這些措施的初步影響。由於顯示器業務目前處於停擺狀態，並且正在執行這項裁員計劃，預計到 2025 年底，我們的員工總數將比 2024 年底減少 20% 以上。

And for our non-factory employees, we expect the headcount reduction to be nearly 40% when comparing at the end of 2025 versus at the end of 2024. These initiatives that I just referenced are foundational to our third objective.

對於我們的非工廠員工，我們預計到 2025 年底，員工人數將比 2024 年底減少近 40%。我剛才提到的這些措施是我們實現第三個目標的基礎。

The third objective is conserving cash. We have reduced our CapEx investments to both conserve cash and lay the groundwork for our recovery. As we have already announced, among the first actions being taken in our plan is cutting capital expenditures for our Gumi fab upgrade by more than 50% over the next two years as we prioritize capital allocation.

第三個目標是節省資金。我們減少了資本支出投資，不僅是為了節省現金，也是為了為經濟復甦奠定基礎。正如我們已經宣布的那樣，我們計劃採取的首要行動之一是，在未來兩年內將龜尾工廠升級的資本支出削減 50% 以上，以優先考慮資本配置。

Our deliberate investment in CapEx for our Gumi fab was made to support the growth of our new-generation power products that are critical to our financial recovery. I can say now that with these actions we have implemented, I believe we are moving in the right direction.

我們特意加大對 Gumi 工廠的資本支出投資，是為了支持我們新一代電力產品的成長，這些產品對我們的財務復甦至關重要。現在我可以肯定地說，透過我們採取的這些措施，我相信我們正朝著正確的方向前進。

Now let me comment briefly on our fourth and fifth objectives involving being transparent and exploring strategic options. Let me assure you that I am personally committed to being transparent with our investors. Finally, the Board and management team are fully aligned as we explore all strategic options available to us.

現在，讓我簡要談談我們的第四個和第五個目標，即保持透明和探索策略選擇。我向您保證，我個人致力於對我們的投資者保持透明。最後，董事會和管理團隊完全一致，我們將探索所有可行的策略選擇。

Moving to my final thoughts here. During my years in the semiconductor industry, I've held executive roles in several chip companies, including as CEO of a publicly held semiconductor company. I have also lived and worked in Asia for many years as a senior executive for a global chip company. And so I'm very familiar with what it takes to compete here.

最後，我想分享一下我的想法。在半導體產業的這些年裡，我曾在多家晶片公司擔任高階主管職務，包括擔任一家上市半導體公司的執行長。我也曾在亞洲生活和工作多年，擔任一家全球晶片公司的高階主管。因此，我非常清楚在這裡競爭需要付出什麼。

With that said, I will be blunt. Turning Magnachip around will take time and require an all hands-on deck approach with intense focus from our management team. The next few quarters will remain challenging as our legacy products decline and our new-generation products begin to ramp.

話雖如此，我還是直言不諱吧。扭轉 Magnachip 的頹勢需要時間，需要管理團隊全員參與，並集中精力。接下來的幾季仍將充滿挑戰，因為我們的傳統產品銷售量會下降，而我們的新一代產品將開始量產。

But we also have several reasons for optimism. For example, I really believe we have a strong engineering team, led by an intelligent CTO who's driving our entire product roadmap, a growing customer base, and, in addition, a clear product roadmap that targets higher-margin power segments. We are planning to have more definitive details on our go-forward operating strategy during our Q4 call early next year.

但我們也有幾個理由保持樂觀。例如，我真的相信我們擁有一支強大的工程團隊，由一位睿智的首席技術官領導，他正在推動我們整個產品路線圖；我們擁有不斷增長的客戶群；此外，我們還有一個清晰的產品路線圖，目標是利潤更高的電力領域。我們計劃在明年初的第四季財報電話會議上公佈未來營運策略的更具體細節。

With that said, I will hand the call over to Shin Young for more detail on the financial results and guidance and then come back for final remarks. Shin Young?

接下來，我將把電話交給申英，讓他詳細介紹財務表現和展望，之後我再回來做最後的總結發言。申英？

Thank you, Camillo, and welcome, everyone, on the call. Let's start with key financial metrics for Q3.

謝謝卡米洛，歡迎各位參加本次電話會議。我們先來看第三季的關鍵財務指標。

Total Q3 consolidated revenue from continuing operations, which includes Power Analog Solutions and Power IC, was $45.9 million, which was about the midpoint of our guidance range of $44 million to $48 million. This was down 13.3% year over year and down 3.5% sequentially on an apples-to-apples basis. This compared with equivalent revenue of $53 million in Q3 2024 and $47.6 million in Q2 2025.

第三季持續經營業務（包括 Power Analog Solutions 和 Power IC）的總合併收入為 4,590 萬美元，這大約是我們先前預測的 4,400 萬美元至 4,800 萬美元範圍的中點。與去年同期相比下降了 13.3%，與去年同期相比下降了 3.5%。相較之下，2024 年第三季的同期營收為 5,300 萬美元，2025 年第二季的同期營收為 4,760 萬美元。

Revenue from Power Analog Solutions was $41.5 million. This was down 12.7% year over year and down 1.7% sequentially, primarily due to the competitive pricing pressure on our older-generation products, which was especially intense in China. Revenue from Power IC was $4.4 million. This was down 18.9% year over year and down 18% sequentially. The sequential decline was due mainly to pull-ins by customers in Q2 from the second half of the year.

Power Analog Solutions 的營收為 4,150 萬美元。與去年同期相比下降了 12.7%，與去年同期相比下降了 1.7%，主要原因是老一代產品面臨激烈的價格競爭壓力，尤其是在中國市場。電源積體電路的收入為 440 萬美元。與去年同期相比下降了18.9%，與去年同期相比下降了18%。第二季季減主要是因為下半年客戶回流所致。

In Q3, consolidated gross profit margin from continuing operations was 18.6%, which was at the low end of the guidance range of 18.5% to 20.5%, down from 22% year over year and down from 20.4% sequentially on an apples-to-apples basis. The year-over-year decline was primarily attributable to an unfavorable product mix, driven mainly by ASP erosion, particularly in China, and filling our fab with lower-margin products and a lower utilization rate. The sequential decline was mainly attributable to a lower utilization rate.

第三季度，持續經營業務的合併毛利率為 18.6%，處於 18.5% 至 20.5% 的預期範圍的下限，年減 22%，環比下降 20.4%（以可比口徑計算）。年比下降的主要原因是產品組合不利，主要原因是平均售價下降，尤其是在中國，以及工廠充斥著利潤率較低的產品和較低的利用率。連續下降的主要原因是利用率降低。

The Company's Display business has been classified as discontinued operations from Q1 2025. And from Q3 2025, we've additionally classified certain expenses incurred outside of Korea as discontinued operations. All of the following figures reflect results from continuing operations and the prior periods were reclassed to be on an apples-to-apples basis.

公司顯示器業務已從 2025 年第一季起被列為終止經營業務。此外，從 2025 年第三季起，我們將韓國以外發生的某些費用歸類為終止經營業務。以下所有數據均反映持續經營的業績，前期數據已重新分類，以確保數據可比較性。

Q3 SG&A was $8.3 million as compared to equivalent SG&A of $9.5 million in Q3 2024 and $9 million in Q2 2025. Stock compensation charges included in SG&A were negative $28,000 in Q3 as compared to $1.4 million in Q3 2024 and $0.8 million in Q2 2025. In Q3, $0.7 million was reversed as a result of the prior CEO separation and the related stock forfeiture.

第三季銷售、一般及行政費用為 830 萬美元，而 2024 年第三季同期銷售、一般及行政費用為 950 萬美元，2025 年第二季同期為 900 萬美元。第三季計入銷售、一般及行政費用中的股票補償支出為負 28,000 美元，而 2024 年第三季為 140 萬美元，2025 年第二季為 80 萬美元。第三季度，由於前執行長離職和相關的股票沒收，衝回了 70 萬美元。

Q3 R&D was $7.8 million as compared to equivalent R&D of $6.5 million in Q3 2024 and $6.5 million in Q2 2025. R&D in Q3 increased due to the acceleration of new product development. We expect at least 20 new-generation product introductions in Q4.

第三季研發投入為 780 萬美元，而 2024 年第三季及 2025 年第二季的研發投入均為 650 萬美元。第三季研發投入增加，主要原因是新產品開發加速進行。我們預計第四季至少會有 20 款新一代產品推出。

In Q3, we recorded onetime charges of $4 million, of which $2.6 million represented the package cost for the employees we let go under the voluntary resignation program that we completed at the end of Q3, and the remainder primarily related to the separation payment and certain cash benefits disclosed in our prior CEO separation agreement.

第三季度，我們記錄了 400 萬美元的一次性費用，其中 260 萬美元是我們根據在第三季度末完成的自願離職計劃解僱的員工的補償金，其餘部分主要與我們之前首席執行官離職協議中披露的離職補償金和某些現金福利有關。

Before I go into the details of our non-GAAP results, please note that our GAAP financial results are available in our Form 8-K filing with our third-quarter earnings release. Our non-GAAP results are as follows: Q3 adjusted operating loss was $7.4 million compared to an equivalent adjusted operating loss of $2.9 million in Q3 2024 and an adjusted operating loss of $4.8 million in Q2 2025.

在詳細介紹我們的非GAAP財務業績之前，請注意，我們的GAAP財務業績已在隨第三季度收益報告一起提交的8-K表格中公佈。我們的非GAAP業績如下：第三季調整後營業虧損為740萬美元，而2024年第三季調整後營業虧損為290萬美元，2025年第二季調整後營業虧損為480萬美元。

Q3 adjusted EBITDA was negative $4 million. This compares to an equivalent adjusted EBITDA of $0.8 million in Q3 2024 and negative $1.5 million in Q2 2025. Adjusted operating loss and adjusted EBITDA deteriorated year over year and sequentially, mostly due to the lower gross profit amount and higher R&D expense as explained above.

第三季調整後 EBITDA 為負 400 萬美元。相較之下，2024 年第三季的調整後 EBITDA 為 0.8 百萬美元，2025 年第二季的調整後 EBITDA 為負 1.5 百萬美元。調整後的營業虧損和經調整後的 EBITDA 年比和季比惡化，主要原因是毛利下降和研發費用上升，如上所述。

Our non-GAAP diluted loss per share was $0.01. This compared with equivalent non-GAAP diluted loss per share of $0.20 in Q3 2024 and non-GAAP diluted loss per share of $0.05 in Q2 2025. This is due in part to the recognition of income tax benefit of $4.2 million in Q3 and $4.1 million in Q2 2025, whereas the recognition of income tax expense of $6.1 million in Q3 last year.

我們的非GAAP稀釋後每股虧損為0.01美元。相較之下，2024年第三季的非GAAP稀釋後每股虧損為0.20美元，2025年第二季的非GAAP稀釋後每股虧損為0.05美元。這部分是由於在 2025 年第三季確認了 420 萬美元的所得稅收益，在 2025 年第二季確認了 410 萬美元的所得稅收益，而去年第三季確認了 610 萬美元的所得稅支出。

Our weighted average non-GAAP diluted shares outstanding for the quarter were 35.9 million shares and 37.5 million shares in Q3 2024 and 36.1 million shares in Q2 2025. Before we talk about some balance sheet items, let me provide some comments regarding the company's discontinued Display business. The sale of the end-of-life Display product resulted in cash inflow of a little over $3 million in Q3, and we booked the onetime charges of $5.2 million due mainly to certain additional expenses incurred outside of Korea, of which about 40% was a non-cash item, and we are in the process of reviewing and negotiating the remainder to reduce the cash outlay.

本季加權平均非GAAP稀釋後流通股數為3,590萬股，2024年第三季為3,750萬股，2025年第二季為3,610萬股。在討論一些資產負債表項目之前，我想就公司已終止的顯示器業務發表一些評論。第三季度，出售已停產的顯示器產品帶來了略高於 300 萬美元的現金流入，同時，由於在韓國以外地區產生的某些額外費用，我們計入了 520 萬美元的一次性支出，其中約 40% 為非現金項目，我們正在審查和協商剩餘部分，以減少現金支出。

Moving to the balance sheet. We ended Q3 with cash of $108 million as compared to $113.3 million at the end of Q2 2025. The main cash outflow in Q3 was $4 million of net cash CapEx after subtracting $3.6 million, which was the Q3 funded portion by the previously announced equipment loan. At the end of Q3, our long-term borrowings amounted to $38.9 million, which included the $10.4 million of the equipment loan.

接下來查看資產負債表。第三季末，我們的現金餘額為 1.08 億美元，而 2025 年第二季末為 1.133 億美元。第三季的主要現金流出是 400 萬美元的淨現金資本支出，扣除 360 萬美元後，這 360 萬美元是先前宣布的設備貸款為第三季提供資金的部分。第三季末，我們的長期借款總額為 3,890 萬美元，其中包括 1,040 萬美元的設備貸款。

As noted in August, when Camillo joined the management team, to conserve cash, we've reduced upgrade CapEx for Gumi fab to be in the range of $30 million to $35 million by over 50% from the previously forecast range of $65 million to $70 million through 2027. Of the $30 million to $35 million range, we invested approximately $14 million in the first three quarters of 2025 and expect to spend approximately $6 million in Q4 2025. We view this investment as a requirement to support the development of the new generation of power products.

正如 8 月 Camillo 加入管理團隊時所指出的那樣，為了節省現金，我們將 Gumi 工廠的升級資本支出從之前預測的 6500 萬美元到 7000 萬美元減少到 3000 萬美元到 3500 萬美元，降幅超過 50%，這一預測將持續到 2027 年。在 3,000 萬至 3,500 萬美元的預算範圍內，我們在 2025 年前三個季度投資了約 1,400 萬美元，預計在 2025 年第四季將投資約 600 萬美元。我們認為這項投資是支持新一代電力產品開發的必要條件。

For the full-year 2025, we expect approximately 85% to 90% of the $20 million upgrade CapEx to be funded by the equipment loan, to which an interest rate of less than 3% per annum will apply. Because the available amount of equipment loan ties to the total CapEx amount, which we reduced it by over 50%. The previously disclosed $26.5 million is now expected to be around $20 million. Including the maintenance CapEx, for the full-year 2025, we expect the total CapEx to be in the range of $29 million to $30 million and the related net cash impact to be in the range of $11.5 million to $12.5 million, which netted the funded portion by the equipment loan.

預計 2025 年全年 2,000 萬美元升級資本支出中約 85% 至 90% 將透過設備貸款籌集，年利率低於 3%。由於可用設備貸款金額與資本支出總額掛鉤，而我們已將資本支出總額減少了50%以上，因此先前揭露的2,650萬美元預計現在約為2,000萬美元。包括維護資本支出在內，我們預計 2025 年全年資本支出總額將在 2,900 萬美元至 3,000 萬美元之間，相關的淨現金影響將在 1,150 萬美元至 1,250 萬美元之間，扣除了設備貸款的資金部分。

Additionally, in connection with the voluntary resignation program that we completed by the end of Q3, we paid in October the onetime package cost of $2.5 million that I mentioned earlier and $1.5 million of statutory severance, which was net of the deposits that made outside of the company's accounts for the Korean labor law.

此外，關於我們在第三季末完成的自願離職計劃，我們在 10 月份支付了我之前提到的 250 萬美元一次性補償金和 150 萬美元法定遣散費，這筆款項已扣除根據韓國勞動法在公司帳戶外繳納的款項。

With the execution of this headcount reduction, we reduced an additional 5% of our total headcount after the shutdown of the Display business. With this additional 5% reduction, we target to achieve annual OpEx savings of approximately $2.5 million beginning in Q4 2025 with a payback period of about 1.5 years. With the cash outflows in Q4, mainly from CapEx and the payment timing of voluntary resignation program-related amounts as described above, we currently expect our cash balance at the end of 2025 to be in the level of mid-$90 million.

隨著此次裁員的實施，在顯示器業務關閉後，我們的員工總數又減少了 5%。透過這額外的 5% 的削減，我們的目標是從 2025 年第四季開始，每年節省約 250 萬美元的營運支出，投資回收期約為 1.5 年。由於第四季現金流出，主要來自資本支出以及如上所述的自願離職計劃相關款項的支付時間，我們目前預計到 2025 年底，我們的現金餘額將達到 9000 萬美元左右。

Now moving to our fourth quarter and full-year 2025 guidance. While actual results may vary, for Q4 2025, Magnachip currently expects consolidated revenue from continuing operations, which includes Power Analog Solutions and Power IC businesses, to be in the range of $38.5 million to $42.5 million, down 11.9% sequentially and down 17.1% year over year at the midpoint on an equivalent basis due in part to a onetime $2.5 million incentive program we expect to execute in Q4 to reduce higher levels of inventory in the channel. This compares with equivalent revenue of $45.9 million in Q3 2025 and $48.9 million in Q4 2024.

現在進入我們2025年第四季和全年業績展望。儘管實際結果可能會有所不同，但 Magnachip 目前預計 2025 年第四季度持續經營業務的合併收入（包括功率模擬解決方案和功率 IC 業務）將在 3850 萬美元至 4250 萬美元之間，按等效基準計算，環比下降 11.9%，同比下降 17.1%（取一次性值），第 2050 部分是由於我們將在第四部分中執行一次性價值萬美元的激勵計劃，以降低渠道中較高的庫存水準。相較之下，2025 年第三季的同期營收為 4,590 萬美元，2024 年第四季的同期營收為 4,890 萬美元。

Consolidated gross profit margin from continuing operations to be in the range of 8% to 10% due to the above described onetime incentive as well as a lower fab utilization rate. We expect this incentive program to be a 600-basis-point negative impact. This compares with equivalent gross profit margin of 18.6% in Q3 2025 and 23.2% in Q4 2024. For the full-year 2025, consolidated revenue from continuing operations is expected to be down by 3.8% year over year at the midpoint of Q4 revenue guidance on an equivalent basis. The equivalent revenue in 2024 was $185.8 million.

由於上述一次性激勵措施以及晶圓廠利用率較低，持續經營業務的合併毛利率將在 8% 至 10% 之間。我們預計這項激勵計畫將產生 600 個基點的負面影響。相較之下，2025 年第三季的毛利率為 18.6%，2024 年第四季的毛利率為 23.2%。預計 2025 年全年持續經營業務的合併收入將年減 3.8%（以第四季營收預期中位數計算）。2024 年的等效收入為 1.858 億美元。

Consolidated gross profit margin from continuing operations is expected to be between 17% to 18% and the above-described onetime incentive program in Q4 is expected to have an about 100-basis-point negative impact in the full-year consolidated gross profit margin. The equivalent gross profit margin was 21.5% in 2024.

預計持續經營業務的合併毛利率將在 17% 至 18% 之間，而上述第四季的一次性激勵計畫預計將對全年合併毛利率產生約 100 個基點的負面影響。2024 年的等效毛利率為 21.5%。

As I approach my fourth year as CFO, I must acknowledge this year's financial results have been disappointing. As Camillo noted earlier, we must regain investors' confidence, and therefore, my focus as CFO will continue to be on heightened financial discipline and cash preservation.

在我擔任財務長的第四年，我必須承認，今年的財務表現令人失望。正如卡米洛之前指出的那樣，我們必須重獲投資者的信心，因此，作為首席財務官，我將繼續專注於加強財務紀律和現金儲備。

While there is clearly more work to do, I feel good about a number of actions we and the Board recently executed, which are expected to result in a reduction of annual OpEx by about 35% year over year and a reduction in headcount by more than 20% when comparing end of 2025 versus end of 2024. With these actions, we'll be better positioned to enter 2026.

雖然顯然還有更多工作要做，但我對我們和董事會最近執行的一些行動感到滿意，預計這些行動將使年度營運支出同比減少約 35%，並且與 2024 年底相比，2025 年底的員工人數將減少 20% 以上。透過這些措施，我們將更能迎接2026年的到來。

Thank you. And now I'll turn the call over to Camillo for his final remarks. Camillo?

謝謝。現在我將把電話交給卡米洛，請他作最後總結發言。卡米洛？

Thank you, Shin Young. This quarter really reflects the realities of our transition into a pure-play power products company. Our Q4 guidance is much lower than what we would have liked to see because of the onetime incentive program. As a result, I felt it was necessary to provide you a little bit of color on Q1 as well, which is very abnormal and not something we would typically do. But I would say that we expect in Q1 2026 the top-line revenue to sequentially grow by double digits.

謝謝你，申英。本季真實反映了我們向純粹的電力產品公司轉型過程中的實際情況。由於一次性激勵計畫的影響，我們第四季的業績預期遠低於預期。因此，我覺得有必要也向你們介紹 Q1，這很不尋常，也不是我們平常會做的事情。但我認為，我們預計 2026 年第一季營收將實現兩位數的環比成長。

We acknowledge our failure to deliver on prior promises, and we certainly share the disappointment and frustration of our shareholders. Our priorities are very clear, including to explore strategic alternatives. The actions we have taken to reduce CapEx and OpEx and to revitalize our power product portfolio are repositioning Magnachip for long-term recovery and success. I want to thank our employees for their continued hard work and dedication and our investors and partners for their patience and support as we move through this important phase.

我們承認未能兌現先前的承諾，當然也理解股東們的失望和沮喪。我們的優先事項非常明確，其中包括探索策略替代方案。我們採取的減少資本支出和營運支出以及重振電源產品組合的措施，正在使 Magnachip 重新定位，以實現長期復甦和成功。我要感謝我們的員工一直以來的辛勤工作和奉獻精神，也要感謝我們的投資者和合作夥伴在我們邁向這一重要階段時所給予的耐心和支持。

I will now turn the call over to the operator to open the call for questions. Operator?

現在我將把電話轉交給接線員，由她來回答問題。操作員？

(Operator Instructions) Suji Desilva, ROTH Capital.

（操作說明）Suji Desilva，ROTH Capital。

So appreciate all the updates here. So the incentives that you're doing, the impact, should we understand that that will be an impact that happens through the December quarter and is cleared? I appreciate the 1Q guidance of up double digits. So should we think of that as being a one-quarter event, Camillo, in terms of the effort there?

非常感謝大家提供的所有更新資訊。所以，你們正在實施的激勵措施及其影響，我們是否應該理解，這種影響將在 12 月季度內顯現並得到確認？我讚賞第一季兩位數成長的預期。所以，卡米洛，從那方面來看，我們是否應該把那看作是四分之一的事件呢？

Well, we expect, as we mentioned, to have the impact this quarter, that financial $2.5 million impact this quarter. And we hope that our strategy, at least, is that the inventory that we talked about in the channel will come down over time. But this is really a program to really encourage the sales channel to move the existing inventory. That is what is intended for.

正如我們之前提到的，我們預計本季將產生 250 萬美元的財務影響。我們希望，至少從我們目前的策略來看，通路中提到的庫存會隨著時間的推移而減少。但這實際上是一個旨在鼓勵銷售管道清理現有庫存的計劃。這正是它的用途。

Maybe Shin Young has any additional financial comments.

申英或許還有其他關於財務上的評論。

Yeah. We are trying to give our [financial guide] to be price competitive. So we are booking this onetime thing as the expense, onetime expense, meaning the reduction in revenue in Q4. That's why it has an impact on the gross margin. But as Camillo explained, I mean, just make them as price competitive, we are hoping they're going to move their old kind of inventory.

是的。我們努力使我們的[財務指南]具有價格競爭力。因此，我們將這筆一次性支出記為費用，即第四季度收入的減少。這就是它對毛利率產生影響的原因。但正如卡米洛解釋的那樣，我的意思是，只要價格具有競爭力，我們希望他們能夠清理掉以前的庫存。

Okay. Appreciate the color there. And then just thinking about the gross margin impact there. If we take the 4Q guidance of 9 and then we add back the 600 bps, should we think of that as a trough level looking into '26 for gross margin? Or maybe you could give us some sense of the puts and takes, maybe utilization along with that to think about the trends there.

好的。欣賞那裡的色彩。然後想想這對毛利率的影響。如果我們採用 4 季度 9 的預期，然後加上 600 個基點，我們是否應該將其視為 2026 年毛利率的谷底？或者，您能否為我們介紹一下買賣情況，以及利用率，以便我們思考這方面的趨勢？

Right. So Camillo kind of during his prepared remarks that Q4 is likely to be the lowest point of our gross utilization rate being mid-50 percentage points. So there's a time lag between when you produce the product and when you recognize revenue, and that's kind of impacting your gross margin. So I mean, it's probably a little early to give out the entire 2026 guidance, but kind of this lower gross margin utilization rate is kind of impacting the current quarter and also the next quarter in Q1 a little bit. I mean, setting aside the onetime incentive program.

正確的。卡米洛在事先準備好的發言中表示，第四季可能是我們總利用率的最低點，約為 50 個百分點左右。因此，從產品生產到確認收入之間存在時間滯後，這會對毛利率產生一定影響。所以我的意思是，現在給出 2026 年的完整業績指引可能還為時過早，但這種較低的毛利率利用率確實對本季度以及下一季（第一季）產生了一定的影響。我的意思是，先不談那項一次性的激勵計畫。

So we'll have to see until the new-generation product can meaningfully contribute. But we said about 10% of our revenue like when we -- in Q4 2026, what that means is, actually, we still have quite a bit and the largest chunk of the old generation product, which we are going to continue to feel some pricing pressure. So we think we're going to see as the new-generation product composition is kind of increasing and our margin were going to be improving gradually with that pace. But until then, I think we are continuing to see the pricing pressure on our older-generation products.

所以，我們只能拭目以待，直到新一代產品能做出有意義的貢獻。但我們說過，大約 10% 的收入，例如在 2026 年第四季度，這意味著，實際上，我們仍然有相當一部分，而且大部分是老一代產品，我們將繼續感受到一些價格壓力。因此，我們認為隨著新一代產品佔比的增加，我們的利潤率也會隨之逐步提高。但在此之前，我認為我們仍將繼續看到老一代產品面臨價格壓力。

And just to add to that, it's fair to say that, look, 2026 is obviously going to be a challenging gross margin period of time for us because this pricing pressure doesn't go away at the end of the calendar year. It is there right now, and our new products that we're planning is what we use to compete against that, but that will take time. So clearly, 2026 will be a challenging gross margin story for us as well.

此外，可以肯定地說，2026 年對我們來說顯然是一個毛利率面臨挑戰的時期，因為這種價格壓力不會在年底消失。現在它就在那裡，我們正在計劃推出的新產品是為了與它競爭，但這需要時間。顯然，2026 年對我們來說也將是毛利率面臨挑戰的一年。

Okay. Appreciate all that color. Maybe you can talk Camillo about the Hyundai Mobis agreement and just the genesis of it, kind of how it came about, and if we should think about there being more agreements like that to target more product end markets beyond industrial IGBTs.

好的。欣賞這繽紛的色彩。或許你可以和卡米洛談談現代摩比斯協議及其由來，以及我們是否應該考慮達成更多類似的協議，以瞄準工業IGBT以外的更多產品終端市場。

Yeah. I've got to be a little bit careful as to what I say just from a confidentiality point of view. But Hyundai Mobis, as I mentioned, is part of Hyundai Corporation. We have been working on this development for a number of years already. And this specific licensing agreement or this specific agreement is really giving us the use to license this technology for our own purposes. And obviously, Hyundai has their own strategy with this part as well.

是的。出於保密考慮，我說話要稍微謹慎一點。但正如我之前提到的，現代摩比斯是現代集團的一部分。我們已經為此研發工作多年了。而這份特定的授權協議，或說這份特定的協議，實際上賦予了我們授權使用這項技術用於我們自身用途的權利。顯然，現代汽車在這方面也有自己的策略。

And I'm not going to comment on what their plans are to announce it or in what capacity. But it's a very close relationship between us, and we expect to focus our strategy on this licensing technology to the industrial markets in particular is what we said.

我不會評論他們計劃如何宣布此事，或以何種身份宣布。但我們之間的關係非常密切，我們預計我們的策略重點將放在向工業市場推廣這項技術授權上，正如我們所說。

And so we look forward for revenue starting to contribute from this licensing deal sometime in 2027. As we get closer to that timeframe, we'll give more details and more color to our shareholders. But we're very encouraged. I mean, we're very excited. I think that was the only time I used the word excited in the entire script. I am very excited about this relationship.

因此，我們期待這項授權協議能在 2027 年某個時候開始產生收入。隨著時間臨近，我們將向股東提供更多細節和更多資訊。但我們深受鼓舞。我的意思是，我們非常興奮。我想那是我在整個劇本中唯一一次使用「興奮」這個詞。我對這段感情感到非常興奮。

It's always a balance. And then puts and takes. And then lastly, just I'll pass it on. The communication strength you saw there, I presume some of that's consumer smartphone. I'm wondering the sustainability of the wins and the strength you're seeing there. Thanks.

這始終是一種平衡。然後就是投入和取出。最後，我再把它轉告出去。我猜你看到的這種通訊強度，一部分來自消費級智慧型手機。我想知道這些勝利能否持續，以及你們所看到的這種實力。謝謝。

So that is a very good relationship we have with our key customers here in Korea. We've been working with them for a long time. The technology is very, very competitive, as we mentioned, and that's why we see an increase. There was a couple of years ago, we lost our competitive way, and now we've regained it with new products.

所以，我們與韓國的主要客戶建立了非常好的關係。我們與他們合作已久。正如我們之前提到的，這項技術競爭非常激烈，這就是我們看到成長的原因。幾年前，我們失去了競爭力，但現在我們憑藉新產品重新獲得了競爭力。

So that actually is a perfect example of what happens when you have a competitive product, right? You have a competitive product, you can go out there and play the game to win, and we did that well. And so now we need to do that with our entire or other product portfolio that we talked about. And so the 50 new-generation products that we've launched or planning to launch this year is very, very critical for our future financial recovery. But that's not the end. As you can imagine, we plan to launch a whole bunch more next year. And in our Q4 call early next year, we'll provide more details on what is our new-generation product plan for 2026.

所以，這其實就是擁有競爭產品時會發生什麼事的完美例子，對吧？你擁有具有競爭力的產品，你可以出去贏得比賽，而我們在這方面做得很好。所以現在我們需要對我們之前討論過的整個產品組合或其他產品組合進行這樣的處理。因此，我們今年已經推出或計劃推出的 50 款新一代產品對我們未來的財務復甦至關重要。但這並非故事的結局。正如你所想，我們計劃在明年推出更多產品。在明年年初的第四季度電話會議上，我們將提供更多關於我們 2026 年新一代產品計劃的細節。

Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Mike for closing remarks.

女士們先生們，隊列中不再顯示任何問題。現在我想把電話交還給麥克，請他做總結發言。

Thank you. I would like to thank everyone for participating on our call today. We appreciate your continued support of Magnachip. This concludes our third-quarter 2025 conference call.

謝謝。感謝各位今天參加我們的電話會議。感謝您一直以來對Magnachip的支持。本次2025年第三季電話會議到此結束。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線了。