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MagnaChip Reports Fourth Quarter and Full Year 2010 Financial Results

SEOUL, South Korea and CUPERTINO, Calif., Feb. 1, 2011 /PRNewswire via COMTEX/ --

MagnaChip Semiconductor LLC ("MagnaChip Semiconductor") today announced financial results for the quarter and year ended December 31, 2010.

Revenue for the fourth quarter of 2010 was $186.8 million, a 10.8% decrease compared to $209.4 million for the third quarter of 2010, and a 15.1% increase compared to $162.3 million for the combined three-month period ended December 31, 2009. For the full year 2010, revenue was $770.4 million compared to $560.1 million for 2009, a 37.6% increase.

Gross profit was $60.4 million or 32.3%, as a percent of revenue, for the fourth quarter of 2010. This compares to gross profit of $69.3 million or 33.1% for the third quarter of 2010 and $37.1 million or 22.9% for the combined three-month period ended December 31, 2009. For the full year 2010, gross profit was $243.6 million or 31.6% compared to $158.5 million or 28.3% for combined 2009.

"2010 proved to be a strong year for MagnaChip. We are very pleased that our refocused business strategy, strong pipeline of new products and enhanced manufacturing capacity has positioned us well for solid growth," said Sang Park, MagnaChip Semiconductor's Chairman and Chief Executive Officer. "Based on our solid design win momentum and booking activity we are excited about the outlook for 2011 and beyond for our Semiconductor Manufacturing Services, Display and Power Solutions products."

Operating expense was $36.9 million or 19.7% of revenue for the fourth quarter of 2010. This compares to $39.8 million or 19.0% of revenue for the third quarter of 2010 and $40.0 million or 24.6% of revenue for the combined three-month period ended December 31, 2009. For the full year 2010, operating expense was $152.2 million or 19.8% compared to $142.2 million or 25.4% for combined 2009.

Operating income was $23.5 million for the fourth quarter of 2010 or 12.6% of revenue. This compares to operating income of $29.6 million or 14.1% of revenue for the third quarter of 2010 and operating loss of $2.8 million for the combined three-month period ended December 31, 2009. For the full year 2010, operating income was $91.4 million or 11.9% compared to $16.4 million or 2.9% for combined 2009.

Net income, on a GAAP basis, for the fourth quarter of 2010 totaled $12.3 million. This compares to net income of $61.5 million for the third quarter of 2010 and net income of $818.8 million for the combined three-month period ended December 31, 2009. For the full year 2010, net income was $74.1 million compared to $839.1 million for combined 2009. Net income, for the fourth quarter of 2010, was impacted primarily by a relatively constant foreign currency translation in the fourth quarter compared to a foreign currency gain of $41.4 million for the third quarter of 2010 and a foreign currency gain of $16.7 million and net reorganization gain of $809.0 million for the combined three-month period ended December 31, 2009, respectively. The net foreign currency exposure is primarily related to non-cash translation gains or losses for intercompany balances that are denominated in U.S. dollars. The net reorganization gain of $809.0 million in the one-month period ended October 25, 2009 represents the impact of non-cash reorganization income and expense items directly associated with our reorganization proceedings and primarily reflects the discharge of liabilities of $798.0 million.

Adjusted net income, a non-GAAP measurement, for the fourth quarter of 2010 totaled $17.4 million compared to $26.2 million for the third quarter of 2010, and $20.2 million for the combined three-month period ended December 31, 2009. For the full year 2010, adjusted net income was $89.2 million compared to $22.6 million for combined 2009.

Adjusted EBITDA, a non-GAAP measurement, for the fourth quarter of 2010 totaled $39.7 million compared to $45.7 million for the third quarter of 2010, and $32.6 million for the combined three-month period ended December 31, 2009. For the full year 2010, adjusted EBITDA was $157.9 million compared to $98.7 million for combined 2009.

Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a more meaningful understanding of the factors and trends affecting MagnaChip Semiconductor's business and operations. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income or as a better indicator of our operating performance than measures that are presented in accordance with GAAP.

Combined cash balances (cash and cash equivalents plus short-term investments) totaled $172.2 million at the end of the fourth quarter of 2010, an increase of $10.7 million from the end of the prior quarter. Cash provided from operations totaled approximately $24.8 million for the fourth quarter of 2010. This compares to $30.7 million for the third quarter of 2010 and $11.3 million for the combined three-month period ended December 31, 2009.

Revenue by Segment

In thousands of US dollars

Successor

Predecessor


Three Months Ended

Two Months

Ended

One Month

Ended


December 31,

2010

September 30,

2010

December 31,

2009 Combined

December 31,

2009

October 25,

2009

Display Solutions

$ 70,581

$ 77,989

$ 73,543

$ 51,044

$ 22,499

Power Solutions

18,398

17,801

5,943

4,746

1,197

Semiconductor

Manufacturing Services

97,261

113,171

81,967

54,759

27,208

Other

532

487

834

533

301

Total Revenue

$ 186,772

$ 209,448

$ 162,287

$ 111,082

$ 51,205


Revenue by Segment

In thousands of US dollars

Successor

Predecessor


12 Months Ended

Two Months Ended

Ten Months Ended


December 31,

2010

December 31,

2009 Combined

December 31,

2009

October 25,

2009

Display Solutions

$ 305,884

$ 282,938

$ 51,044

$ 231,894

Power Solutions

57,273

12,373

4,746

7,627

Semiconductor

Manufacturing Services

405,197

261,421

54,759

206,662

Other

2,051

3,334

533

2,801

Total Revenue

$ 770,405

$ 560,066

$ 111,082

$ 448,984


Non-GAAP Metrics

Adjusted EBITDA excludes charges related to depreciation and amortization associated with continuing operations, interest expense, income tax expense (benefit), restructuring and impairment charges, other restructuring charges, abandoned IPO expenses, reorganization items, inventory step-up, equity-based compensation expense, foreign currency gain (loss) and derivative valuation gain (loss). Adjusted net income (loss) excludes charges related to restructuring and impairment charges, other restructuring charges, abandoned IPO expenses, reorganization items, inventory step-up, equity-based compensation expense, amortization of intangible assets associated with continuing operations, foreign currency gain (loss) and derivative valuation gain (loss). A reconciliation of GAAP results to non-GAAP results is included following the financial statements below.

About MagnaChip Semiconductor

Headquartered in South Korea, MagnaChip Semiconductor is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications. MagnaChip Semiconductor believes it has one of the broadest and deepest range of analog and mixed-signal semiconductor platforms in the industry, supported by its 30-year operating history, a large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through, MagnaChip Semiconductor's website is not a part of, and is not incorporated into, this release.

Safe Harbor for Forward-Looking Statements

Information in this release regarding MagnaChip Semiconductor's forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include statements about our ability to capitalize on improving market dynamics and future operating and financial performance including fourth quarter 2010 revenues. All forward-looking statements included in this release are based upon information available to MagnaChip Semiconductor as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, compliance with U.S. and international trade and export laws and regulations by us and our distributors, and other risks detailed from time to time in MagnaChip Semiconductor's filings with the SEC, including our Form S-1 filed on February 1, 2011 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. MagnaChip Semiconductor assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

CONTACTS:


In the United States:

Robert Pursel

Director of Investor Relations

Tel. 408-625-1262

robert.pursel@magnachip.com

In Korea:

Chankeun Park

Senior Manager, Public Relations

Tel.+82-3-6903-3195

chankeun.park@magnachip.com





MAGNACHIP SEMICONDUCTOR LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of US dollars, except unit data)

(Unaudited)



Successor


Combined


Successor


Predecessor


Three Months

Ended


Three Months

Ended


TwoMonths

Ended


One Month

Ended


December 31,

2010


September 30,

2010


December 31,

2009


December 31,

2009


October 25,

2009

Net sales

$

186,772


$

209,448


$

162,287


$

111,082


$

51,205

Cost of sales


126,421



140,133



125,160



90,408



34,752
















Gross profit


60,351



69,315



37,127



20,674



16,453

Gross profit %


32.3%



33.1%



22.9%



18.6%



32.1%
















Selling, general and administrative expenses


16,566



16,202



20,017



14,540



5,477

Research and development expenses


19,331



23,119



19,957



14,741



5,216

Restructuring and impairment charges


958



442



--



--



--
















Operating income (loss) from continuing operations


23,496



29,552



(2,847)



(8,607)



5,760
















Other income (expenses)















Interest expense, net


(6,981)



(7,312)



(2,290)



(1,258)



(1,032)

Foreign currency gain (loss), net


(19)



41,400



16,746



9,338



7,408

Reorganization items, net


--



--



809,048



--



809,048

Others


(16)



312



--



--



--


















(7,016)



34,400



823,504



8,080



815,424
















Income (loss) from continuing operations before income taxes


16,480



63,952



820,657



(527)



821,184
















Income tax expenses (benefit)


4,209



2,457



1,802



1,946



(144)
















Income (loss) from continuing operations


12,271



61,495



818,855



(2,473)



821,328
















Income(loss) from discontinued operations, net of taxes


--



--



(69)



510



(579)
















Net income (loss)

$

12,271


$

61,495


$

818,786


$

(1,963)


$

820,749
















Income (loss) from continuing operations attributable to common units

$

12,271


$

61,495


$

818,855


$

(2,473)


$

821,328
















Net income (loss) attributable to common units

$

12,271


$

61,495


$

818,786


$

(1,963)


$

820,749

Earnings (loss) per common unit from continuing operations--Basic and diluted

$

0.04


$

0.20





$

(0.01)


$

15.52
















Earnings (loss) per common unit from discontinued operations--Basic and diluted

$

--


$

--





$

--


$

(0.01)
















Earnings (loss) per common unit--Basic and diluted

$

0.04


$

0.20





$

(0.01)


$

15.51

Weighted average number of units--Basic


303,191,295



302,558,556






300,862,764



52,923,483

Weighted average number of units--Diluted


314,155,724



313,604,679






300,862,764



52,923,483



MAGNACHIP SEMICONDUCTOR LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of US dollars, except unit data)

(Unaudited)



Successor


Combined

Successor


Predecessor


Twelve Months

Ended


Twelve Months

Ended

TwoMonths

Ended


Ten Months

Ended


December 31,

2010


December 31,

2009

December 31,

2009


October 25,

2009

Net sales

$

770,405


$

560,066

$

111,082


$

448,984

Cost of sales


526,847



401,547


90,408



311,139












Gross profit


243,558



158,519


20,674



137,845

Gross profit %


31.6%



28.3%


18.6%



30.7%












Selling, general and administrative expenses


66,640



70,828


14,540



56,288

Research and development expenses


83,524



70,889


14,741



56,148

Restructuring and impairment charges


2,003



439


--



439












Operating income (loss) from continuing operations


91,391



16,363


(8,607)



24,970












Other income (expenses)











Interest expense, net


(22,899)



(32,423)


(1,258)



(31,165)

Foreign currency gain (loss), net


14,724



52,775


9,338



43,437

Reorganization items, net


--



804,573


--



804,573

Others


(706)



--


--



--














(8,881)



824,925


8,080



816,845












Income (loss) from continuing operations before income taxes



82,510



841,288


(527)



841,815












Income tax expenses


8,390



9,241


1,946



7,295












Income (loss) from continuing operations


74,120



832,047


(2,473)



834,520












Income(loss) from discontinued operations, net of taxes


--



7,096


510



6,586












Net income (loss)

$

74,120


$

839,143

$

(1,963)


$

841,106












Dividends accrued on preferred units


--



6,317


--



6,317












Income (loss) from continuing operations attributable to common units

$

74,120


$

825,730

$

(2,473)


$

828,203












Net income (loss) attributable to common units

$

74,120


$

832,826

$

(1,963)


$

834,789

Earnings (loss) per common unit from continuing operations--Basic and diluted

$

0.24




$

(0.01)


$

15.65












Earnings (loss) per common unit from discontinued operations--Basic and diluted

$

--




$

--


$

0.12












Earnings (loss) per common unit--Basic and diluted

$

0.24




$

(0.01)


$

15.77

Weighted average number of units--Basic


302,689,685





300,862,764



52,923,483

Weighted average number of units--Diluted


313,153,939





300,862,764



52,923,483



MAGNACHIP SEMICONDUCTOR LLC AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED NETINCOME (LOSS)

(In thousands of US dollars, except unit data)

(Unaudited)



Successor


Combined

Successor


Predecessor


Three Months

Ended


Three Months

Ended

TwoMonths

Ended


One Month

Ended


December31,

2010


September30,

2010


December 31,

2009

December31,

2009


October 25,

2009

Net income (loss)

$

12,271


$

61,495


$

818,786

$

(1,963)


$

820,749

Less: Income (loss)from discontinued operations, net of taxes



--




--



(69)


510



(579)

Income (loss) from continuing operations


12,271



61,495



818,855


(2,473)



821,328

Adjustments:














Depreciation and amortization associated with continuing operations


14,063




14,347



14,860


11,218



3,642

Interest expense, net


6,981



7,312



2,290


1,258



1,032

Income tax expenses (benefit)


4,209



2,457



1,802


1,946



(144)

Restructuring and impairment charges


958



442



--


--



--

Other restructuring charges


--



--



1,139


--



1,139

Reorganization items, net


--



--



(809,048)


--



(809,048)

Inventory step-up


--



--



17,249


17,249



--

Equity-based compensation expense


1,167



1,320



2,213


2,199



14

Foreign currency (gain) loss, net


19



(41,400)



(16,746)


(9,338)



(7,408)

Derivative valuation (gain) loss, net


16



(312)



--


--



--

Adjusted EBITDA

$

39,684


$

45,661


$

32,614

$

22,059


$

10,555

Adjusted EBITDA per Common Unit:














- Basic and diluted

$

0.13


$

0.15




$

0.07


$

0.20















Net income (loss)

$

12,271


$

61,495


$

818,786

$

(1,963)


$

820,749

Less: Income (loss) from discontinued operations, net of taxes



--




--



(69)


510



(579)

Income (loss) from continuing operations


12,271



61,495



818,855


(2,473)



821,328

Adjustments:














Restructuring and impairment charges


958



442



--


--



--

Other restructuring charges


--



--



1,139


--



1,139

Reorganization items, net


--



--



(809,048)


--



(809,048)

Inventory step-up


--



--



17,249


17,249



--

Equity based compensation expense


1,167



1,320



2,213


2,199



14

Amortization of intangibles associated with continuing operations


2,937




4,681



6,504


5,639



865

Foreign currency (gain) loss, net


19



(41,400)



(16,746)


(9,338)



(7,408)

Derivative valuation (gain) loss, net


16



(312)



--


--



--

Adjusted Net Income

$

17,368


$

26,226


$

20,166

$

13,276


$

6,890

Adjusted Net Income per Common Unit:














- Basic

$

0.06


$

0.09




$

0.04


$

0.13

- Diluted


0.06



0.08





0.04



0.13


MAGNACHIP SEMICONDUCTOR LLC AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED NETINCOME (LOSS)

(In thousands of US dollars, except unit data)

(Unaudited)



Successor


Combined

Successor


Predecessor


Twelve Months

Ended


Twelve Months

Ended

TwoMonths

Ended


Ten Months

Ended


December 31,

2010


December 31,

2009

December 31,

2009


October 25,

2009

Net income (loss)

$

74,120


$

839,143

$

(1,963)


$

841,106

Less: Income (loss)from discontinued operations, net of taxes


--



7,096


510



6,586

Income (loss) from continuing operations


74,120



832,047


(2,473)



834,520

Adjustments:











Depreciation and amortization associated with continuing operations


58,395



48,901


11,218



37,683

Interest expense, net


22,899



32,423


1,258



31,165

Income tax expenses


8,390



9,241


1,946



7,295

Restructuring and impairment charges


2,003



439


--



439

Other restructuring charges


--



13,313


--



13,313

Reorganization items, net


--



(804,573)


--



(804,573)

Inventory step-up


867



17,249


17,249



--

Equity-based compensation expense


5,239



2,432


2,199



233

Foreign currency (gain) loss, net


(14,724)



(52,775)


(9,338)



(43,437)

Derivative valuation (gain) loss, net


711



--


--



--

Adjusted EBITDA

$

157,900


$

98,697

$

22,059


$

76,638

Adjusted EBITDA per Common Unit:











- Basic

$

0.52




$

0.07


$

1.45

- Diluted


0.50





0.07



1.45












Net income (loss)

$

74,120


$

839,143

$

(1,963)


$

841,106

Less: Income (loss) from discontinued operations, net of taxes


--



7,096


510



6,586

Income (loss) from continuing operations


74,120



832,047


(2,473)



834,520

Adjustments:











Restructuring and impairment charges


2,003



439


--



439

Other restructuring charges


--



13,313


--



13,313

Reorganization items, net


--



(804,573)


--



(804,573

Inventory step-up


867



17,249


17,249



--

Equity based compensation expense


5,239



2,432


2,199



233

Amortization of intangibles associated with continuing operations


21,033



14,487


5,639



8,848

Foreign currency (gain) loss, net


(14,724)



(52,775)


(9,338)



(43,437)

Derivative valuation (gain) loss, net


711



--


--



--

Adjusted Net Income

$

89,249


$

22,619

$

13,276


$

9,343

Adjusted Net Income per Common Unit:











- Basic & Diluted

$

0.29




$

0.04


$

0.18












We define Adjusted EBITDA as net income (loss) less income (loss) from discontinued operations, net of taxes, adjusted to exclude (i) depreciation and amortization associated with continuing operations, (ii) interest expense, net, (iii) income tax expenses (benefits), (iv) restructuring and impairment charges, (v) other restructuring charges, (vi) abandoned IPO expenses, (vii) reorganization items, net, (viii) the increase in cost of sales resulting from the fresh-start accounting inventory step-up, (ix) equity-based compensation expense, (x) foreign currency gain (loss), net and (xi) derivative valuation gain (loss), net.

We present Adjusted Net Income as a further supplemental measure of our performance. We prepare Adjusted Net Income by adjusting net income (loss) to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income as net income (loss) less income (loss) from discontinued operations, net of taxes, excluding (i) restructuring and impairment charges, (ii) other restructuring charges, (iii) abandoned IPO expenses, (iv) reorganization items, net, (v) the increase in cost of sales resulting from the fresh-start accounting inventory step-up, (vi) equity-based compensation expense, (vii) amortization of intangibles associated with continuing operations, (viii) foreign currency gain (loss), net and (ix) derivative valuation gain (loss), net.









MAGNACHIP SEMICONDUCTOR LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US dollars, except unit data)

(Unaudited)



Successor



December31,
2010


December31,
2009

Assets







Current assets







Cash and cash equivalents


$

172,172


$

64,925

Accounts receivable, net



119,054



74,233

Inventories, net



68,435



63,407

Other receivables



2,919



3,433

Prepaid expenses



8,207



12,625

Other current assets



18,920



3,433








Total current assets



389,707



222,056








Property, plant and equipment, net



179,012



156,337

Intangible assets, net



27,538



50,158

Long-term prepaid expenses



8,235



10,542

Other non-current assets



21,252



14,238








Total assets


$

625,744


$

453,331








Liabilities and Unitholders' Equity







Current liabilities







Accounts payable


$

58,264


$

59,705

Other accounts payable



14,645



7,190

Accrued expenses



32,635



22,114

Current portion of long-term debt



--



618

Current portion of capital lease obligations



5,557



--

Other current liabilities



5,048



3,937








Total current liabilities



116,149



93,564








Long-term borrowings



246,882



61,132

Long-term obligation under capital lease



3,105



--

Accrued severance benefits, net



87,778



72,409

Other non-current liabilities



8,979



10,536








Total liabilities



462,893



237,641








Commitments and contingencies







Unitholders' equity







Common units, no par value, 375,000,000 units authorized, 307,215,516 and 307,083,996 units issued and outstanding at December 31, 2010 and 2009, respectively



55,453



55,135

Additional paid-in capital



40,516



168,700

Retained earnings (accumulated deficit)



72,157



(1,963)

Accumulated other comprehensive loss



(5,275)



(6,182)








Total unitholders' equity



162,851



215,690








Total liabilities and unitholders' equity


$

625,744


$

453,331
























MAGNACHIP SEMICONDUCTOR LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of US dollars)

(Unaudited)



Successor


Combined

Successor


Predecessor


Year

Ended


Year

Ended

TwoMonths

Ended


Ten Months

Ended


December31,

2010


December 31,

2009

December 31,

2009


October 25,

2009

Cash flows from operating activities











Net income

$

74,120


$

839,143

$

(1,963)


$

841,106

Adjustments to reconcile net income (loss) to net cash provided by operating activities











Depreciation and amortization


58,395



49,473


11,218



38,255

Provision for severance benefits


19,684



10,686


1,851



8,835

Amortization of debt issuance costs and original issue discount


925



836


--



836

Gain on foreign currency translation, net


(17,084)



(54,301)


(10,077)



(44,224)

Loss on disposal of property, plant and equipment, net


39



112


17



95

Loss (gain) on disposal of intangible assets, net


13



(9,225)


5



(9,230)

Restructuring and impairment charges


2,003



(1,120)


--



(1,120)

Unit-based compensation


5,239



2,432


2,199



233

Cash used for reorganization items


1,573



5,339


4,263



1,076

Noncash reorganization items


--



(805,649)


--



(805,649)

Other


4,177



2,055


(667)



2,722

Changes in operating assets and liabilities











Accounts receivable


(41,370)



3,513


16,443



(12,930)

Inventories


(3,172)



5,576


6,739



(1,163)

Other receivables


297



1,786


1,755



31

Deferred tax assets


1,543



1,732


678



1,054

Accounts payable


(5,049



(7,828)


(14,144)



6,316

Other accounts payable


8,483



(23,963)


(12,511)



(11,452)

Accrued expenses


3,992



22,608


(5,687)



28,295

Long term other payable


(2,419)



(370)


(877)



507

Other current assets


2,997



9,088


3,192



5,896

Other current liabilities


962



1,227


1,188



39

Payment of severance benefits


(6,673



(5,709)


(1,389



(4,320)

Other


(710)



(641)


(125)



(516)












Net cash provided by operating activities before reorganization items


107,965



46,800


2,108



44,692












Cash used for reorganization items


(1,573)



(5,339)


(4,263)



(1,076)












Net cash provided by operating activities


106,392



41,461


(2,155)



43,616












Cash flows from investing activities











Proceeds from disposal of plant, property and equipment


10



366


37



329

Proceeds from disposal of intangible assets


--



9,375


--



9,375

Purchase of plant, property and equipment


(43,616)



(8,771)


(1,258)



(7,513)

Payment for intellectual property registration


(553



(436)


(70



(366)

Decrease in restricted cash


--



11,409


--



11,409

Decrease (increase)in short-term financial instruments


329



(329)


(329)



--

Decreasein guarantee deposits


1,198



--


--



--

Other


(1,096)



(73)


23



(96)












Net cash used in investing activities


(43,728)



11,541


(1,597)



13,138












Cash flows from financing activities











Proceeds from issuance ofsenior notes


246,685



--


--



--

Debt issuance costs paid


(8,313)



--


--



--

Issuance of new common units pursuant to the reorganization plan


--



35,280


--



35,280

Repayment of long-term debt


(61,750)





--




Repayment of obligation under capital lease


(3,476)



--


--



--

Repayment of short-term borrowings


--



(33,250)


--



(33,250)

Distribution to unitholders


(130,689)



--


--



--












Net cash provided by financing activities


42,457



2,030


--



2,030

Effect of exchange rates on cash and cash equivalents


2,126



5,856


1,098



4,758













Net increase (decrease) in cash and cash equivalents


107,247



60,888


(2,654)



63,542












Cash and cash equivalents











Beginning of the period


64,925



4,037


67,579



4,037

End of the period

$

172,172


$

64,925

$

64,925


$

67,579

SOURCE MagnaChip Semiconductor LLC