Benzinga | May 10, 2021 09:48AM EDT

Magnachip Reports Q1 Earnings Beat; Suspends Earnings Call, Guidance Pending Wise Road Capital's Merger

* Magnachip Semiconductor Corp (NYSE: MX) reported first-quarter FY21 revenue growth of 2.1% year-on-year to $123 million, beating the analyst consensus of $121.7 million.

* Display Solutions revenue rose 24.1% Y/Y to $58.9 million, Power Solutions revenue rose 63% Y/Y to $54 million, and Transitional Fab 3 Foundry Services revenue rose 3.9% Y/Y to $10.1 million.

* The gross margin expanded 370 basis points to 27.9%, with the adjusted operating income rising 36.9% Y/Y to $10 million.

* Adjusted net income rose 755.9% Y/Y to $9.3 million, and adjusted EPS of $0.22 beat the analyst consensus of $0.14.

* Adjusted EBITDA rose 36.5% Y/Y to $13.5 million.

* The company held $290.2 million in cash and equivalents and generated $21.2 million in operating cash flow.

* Magnachip's revenue came in above the midpoint of the company's Q1 revenue guidance range, driven by strong growth in the Power solutions business, gross profit margin exceeded the high-end of its expectations due to the improved product mix and higher utilization, CEO YJ Kim said.

* Guidance: Magnachip suspended the quarterly earnings conference call and guidance due to the pending merger with an investment vehicle formed by an affiliate of Wise Road Capital LTD under a March 25 agreement.

* Price action: MX shares are down 0.95% at $23.98 on the last check Monday.