UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 3, 2016

MagnaChip Semiconductor Corporation
(Exact name of Registrant as specified in its charter)

 
 	 	 	 	 	
Delaware	 	001-34791	 	83-0406195	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	

c/o MagnaChip Semiconductor S.A.
1, Allée Scheffer, L-2520
Luxembourg, Grand Duchy of Luxembourg	 	Not Applicable	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (352) 45-62-62

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02.	Results of Operations and Financial Condition.	
Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for MagnaChip Semiconductor Corporation and its consolidated subsidiaries for the second quarter ended June 30, 2016, as presented in a press release dated August 3, 2016.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
 
Item 9.01.	Financial Statements and Exhibits.	
 
(d)	Exhibits.	
The following exhibit is furnished as part of this report:

Exhibit
No.	  	Description	
 	 	
99.1	  	Press release for MagnaChip Semiconductor Corporation dated August 3, 2016, announcing the results for the second quarter ended June 30, 2016.	

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	 	 	 	MAGNACHIP SEMICONDUCTOR CORPORATION	
 	 	 	 	
Dated: August 3, 2016	 	    	 	By:	 	/s/ Theodore Kim	
 	 	 	 	 	 	Theodore Kim	
 	 	 	 	 	 	Chief Compliance Officer, Executive Vice President, General Counsel and Secretary	

Exhibit Index

Exhibit
No.	  	Description	
 	 	
99.1	  	Press release for MagnaChip Semiconductor Corporation dated August 3, 2016, announcing the results for the second quarter ended June 30, 2016.	

Exhibit 99.1

 	 	Press Release	
 
MagnaChip Reports Second Quarter 2016 Financial Results
— Revenue Exceeds Expectations as Business Turnaround Gains Momentum —
SEOUL, South Korea and SAN JOSE, Calif., August 3, 2016 — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced financial results for the second quarter ended June 30, 2016.
Revenue for the second quarter of 2016 was $167.1 million, an increase of 12.8% compared to $148.1 million for the first quarter of 2016, and up 3.1% compared to $162.0 million for the second quarter of 2015. The double-digit increase in sequential revenue growth was better than expected and reflected healthy demand for the Company’s Display and Power products and Foundry services. The robust growth in revenue in the second quarter also was notable, in part, because it was achieved without the benefit of approximately $9 million in revenue that was recorded in the first quarter from an underutilized 6” fab that was closed at the end of February.
Foundry Services revenue in the second quarter of 2016 was $62.3 million, a sequential increase of 3.9%, and Standard Products Group revenue was $104.6 million, a sequential increase of 18.9% and the highest since 2012. Foundry demand continued its gradual recovery driven by new key global IC customers. AMOLED display driver IC revenue surged 73%, quarter-over-quarter, reflecting continued strong demand, primarily from smartphone makers in China. Display products for UHD televisions also showed gains in the quarter, while Power products held steady.
Gross profit was $36.7 million, or 22.0% as a percent of revenue for the second quarter of 2016. This compared with gross profit of $34.2 million, or 23.1%, for the first quarter of 2016 and $35.3 million, or 21.8%, for the second quarter of 2015. Foundry gross profit was 22.8% and Standard Products Group gross profit was 21.4% in the second quarter of 2016.
Net loss, on a GAAP basis, for the second quarter of 2016 totaled $17.8 million or $0.51 per basic share, as compared to net income of $8.1 million or $0.23 per basic and diluted share for the first quarter of 2016 and a net loss of $30.6 million or $0.90 per basic share for the second quarter of 2015. The net loss in the second quarter of 2016 included a one-time extraordinary charge of approximately $5 million. This amount included a previously announced one-time charge of approximately $4 million related to termination benefits payable under a voluntary resignation program for employees who left the company when an underutilized 6” fab was closed at the end of February. The remainder of the one-time charge pertains to transition costs related to employees who had worked in our 6” fab.
“Our revenue in the second quarter exceeded expectations and was at the highest level since the fourth quarter of 2014,” said YJ Kim, Chief Executive Officer of MagnaChip. “Customer demand was strong, especially for AMOLED display driver ICs, as well as for our specialized foundry services.” Mr. Kim added, “Our results in the second quarter reflect the success of our strategy over the last two years to streamline the organization, expand our customer base, improve product execution, and leverage our strong position as a leading supplier of analog and mixed signal products and services.”
Chief Financial Officer Jonathan Kim said, “We continued to exercise discipline in managing the balance sheet and preserving our cash in the second quarter, and we maintained tight control over spending while still supporting the strong growth in the business.” Mr. Kim added, “As always, we continue to focus on opportunities to improve cash flow and explore ways to reduce spending.”
Adjusted Net Loss, a non-GAAP financial measure, for the second quarter of 2016 totaled $1.9 million or $0.05 per basic share, compared to Adjusted Net Loss of $2.8 million or $0.08 per basic share in the first quarter of 2016, and compared to Adjusted Net Loss of $11.1 million or $0.32 per basic share in the second quarter of 2015.

Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting MagnaChip’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. A reconciliation of GAAP results to non-GAAP results is included in this press release.
Cash and cash equivalents totaled $83.9 million at the end of the second quarter, essentially flat compared with the first quarter when taking into account the one-time effects in the second quarter of a $10 million product pre-payment from a key foundry customer.
The following table sets forth information relating to our operating segments:

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	June 30,
2016	 	  	June 30,
2015	 	  	June 30,
2016	 	  	June 30,
2015	 	
Net Sales	  	 	 	 	  	 	 	 	  	 	 	 	
Foundry Services Group	  	$	62,310	  	  	$	78,962	  	  	$	122,289	  	  	$	153,482	  	
Standard Products Group	  	 	 	 	  	 	 	 	  	 	 	 	
Display Solutions	  	 	74,406	  	  	 	48,918	  	  	 	132,465	  	  	 	105,271	  	
Power Solutions	  	 	30,213	  	  	 	33,995	  	  	 	60,131	  	  	 	67,832	  	
Total Standard Products Group	  	 	104,619	  	  	 	82,913	  	  	 	192,596	  	  	 	173,103	  	
All other	  	 	177	  	  	 	140	  	  	 	326	  	  	 	315	  	
Total net sales	  	$	167,106	  	  	$	162,015	  	  	$	315,211	  	  	$	326,900	  	

 	  	Three Months Ended
June 30, 2016	 	 	Three Months Ended
June 30, 2015	 	
 	  	Amount	 	  	% of
Net Sales	 	 	Amount	 	  	% of
Net Sales	 	
Gross Profit	  	 	 	 	  	 	 	 	 	 	 	 	
Foundry Services Group	  	$	14,187	  	  	 	22.8	% 	 	$	17,183	  	  	 	21.8	% 	
Standard Products Group	  	 	22,385	  	  	 	21.4	  	 	 	17,963	  	  	 	21.7	  	
All other	  	 	177	  	  	 	100.0	  	 	 	140	  	  	 	100.0	  	
Total gross profit	  	$	36,749	  	  	 	22.0	% 	 	$	35,286	  	  	 	21.8	% 	
 	 	 	
 	  	Six Months Ended
June 30, 2016	 	 	Six Months Ended
June 30, 2015	 	
 	  	Amount	 	  	% of
Net Sales	 	 	Amount	 	  	% of
Net Sales	 	
Gross Profit	  	 	 	 	  	 	 	 	 	 	 	 	
Foundry Services Group	  	$	28,480	  	  	 	23.3	% 	 	$	32,560	  	  	 	21.2	% 	
Standard Products Group	  	 	43,145	  	  	 	22.4	  	 	 	37,388	  	  	 	21.6	  	
All other	  	 	(627	) 	  	 	(192.3	) 	 	 	315	  	  	 	100.0	  	
Total gross profit	  	$	70,998	  	  	 	22.5	% 	 	$	70,263	  	  	 	21.5	% 	
Second Quarter and Recent Company Highlights
 
 	•	 	Total AMOLED display driver sales grew 73% in Q2 2016 as compared to Q1 2016	
 
 	•	 	8” foundry revenue grew 22% in Q2 2016 as compared to Q1 2016, driven in large part by new key global fabless customers	
 
 	•	 	Announced the Company’s Annual U.S. Foundry Technology Symposium in Hsinchu, Taiwan on September 27, 2016	
Business Outlook
For the third quarter of 2016, MagnaChip anticipates:
 
 	•	 	Revenue will be in the range of $180 million to $185 million, a sequential increase of 8% to 11%, reflecting continued demand for products and services in the Standard Products Group and the Foundry Services Group.	
 
 	•	 	Gross profit to be in the range of 21% to 24% as a percent of revenue.	

Conference Call
MagnaChip will hold a conference call at 5 p.m. EDT today (August 3, 2016) to discuss the second quarter financial results. The conference call will be webcast live and is also available by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 51291099 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 5 p.m. EDT start time to ensure a timely connection. The webcast and earnings release will be accessible at www.magnachip.com . A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-855-859-2056 or 1-404-537-3406. The access code is 51291099.
About MagnaChip Semiconductor Corporation
MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer, communication, industrial and computing applications. The Company’s Standard Products Group and Foundry Services Group provide a broad range of standard products and manufacturing services to customers worldwide. MagnaChip, with a 30-year operating history, owns a portfolio of more than 3,500 registered and pending patents, and has extensive engineering, design and manufacturing process expertise. For more information, please visit  www.magnachip.com . Information on or accessible through, MagnaChip’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’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 future operating and financial performance, including third quarter 2016 revenue and gross profit expectations. All forward-looking statements included in this release are based upon information available to MagnaChip 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’s filings with the SEC, including our Form 10-K filed on February 22, 2016 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 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:
Bruce Entin
Investor Relations
Tel. +1-408-625-1262
Investor.relations@magnachip.com	  	In Korea:
Chankeun Park
Senior Manager, Public Relations
Tel. +82-2-6903-3195
chankeun.park@magnachip.com	
# # #

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US dollars, except share data)
(Unaudited)

 	  	Three Months Ended	 	
 	  	June 30,
2016	 	 	March 31,
2016	 	 	June 30,
2015	 	
Net sales	  	$	167,106	  	 	$	148,105	  	 	$	162,015	  	
Cost of sales	  	 	130,357	  	 	 	113,856	  	 	 	126,729	  	
Gross profit	  	 	36,749	  	 	 	34,249	  	 	 	35,286	  	
Gross profit %	  	 	22.0	% 	 	 	23.1	% 	 	 	21.8	% 	
Operating expenses	  	 	 	 	 	 	 	 	 	 	 	 	
Selling, general and administrative expenses	  	 	25,948	  	 	 	19,952	  	 	 	28,588	  	
Research and development expenses	  	 	18,178	  	 	 	17,815	  	 	 	21,931	  	
Restructuring gain	  	 	—  	  	 	 	(7,785	) 	 	 	—  	  	
Total operating expenses	  	 	44,126	  	 	 	29,982	  	 	 	50,519	  	
Operating income (loss)	  	 	(7,377	) 	 	 	4,267	  	 	 	(15,233	) 	
Interest expense	  	 	(4,073	) 	 	 	(4,057	) 	 	 	(3,987	) 	
Foreign currency gain (loss), net	  	 	(7,101	) 	 	 	8,195	  	 	 	(12,296	) 	
Other income, net	  	 	1,007	  	 	 	535	  	 	 	288	  	
Income (loss) before income tax expenses (benefits)	  	 	(17,544	) 	 	 	8,940	  	 	 	(31,228	) 	
Income tax expenses (benefits)	  	 	272	  	 	 	815	  	 	 	(602	) 	
Net income (loss)	  	$	(17,816	) 	 	$	8,125	  	 	$	(30,626	) 	
Earnings (loss) per common share :	  	 	 	 	 	 	 	 	 	 	 	 	
- Basic	  	$	(0.51	) 	 	$	0.23	  	 	$	(0.90	) 	
- Diluted	  	$	(0.51	) 	 	$	0.23	  	 	$	(0.90	) 	
Weighted average number of shares - Basic	  	 	34,716,081	  	 	 	34,698,904	  	 	 	34,092,402	  	
Weighted average number of shares - Diluted	  	 	34,716,081	  	 	 	34,918,568	  	 	 	34,092,402	  	

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME
(In thousands of US dollars, except share data)
(Unaudited)

 	  	Three Months Ended	 	
 	  	June 30,
2016	 	 	Mar 31,
2016	 	 	June 30,
2015	 	
Net income (loss)	  	$	(17,816	) 	 	$	8,125	  	 	$	(30,626	) 	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Interest expense, net	  	 	4,001	  	 	 	3,999	  	 	 	3,933	  	
Income tax expenses (benefits)	  	 	272	  	 	 	815	  	 	 	(602	) 	
Depreciation and amortization	  	 	6,228	  	 	 	6,024	  	 	 	6,797	  	
EBITDA	  	$	(7,315	) 	 	$	18,963	  	 	$	(20,498	) 	
Restructuring and other (gain), net	  	 	5,545	  	 	 	(6,832	) 	 	 	—  	  	
Equity-based compensation expense	  	 	968	  	 	 	536	  	 	 	1,792	  	
Foreign currency loss (gain), net	  	 	7,101	  	 	 	(8,195	) 	 	 	12,296	  	
Derivative valuation loss (gain), net	  	 	8	  	 	 	(42	) 	 	 	306	  	
Restatement related expenses	  	 	2,306	  	 	 	3,592	  	 	 	5,168	  	
Adjusted EBITDA	  	$	8,613	  	 	$	8,022	  	 	$	(936	) 	
Net income (loss)	  	$	(17,816	) 	 	$	8,125	  	 	$	(30,626	) 	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Restructuring and other (gain), net	  	 	5,545	  	 	 	(6,832	) 	 	 	—  	  	
Equity-based compensation expense	  	 	968	  	 	 	536	  	 	 	1,792	  	
Foreign currency loss (gain), net	  	 	7,101	  	 	 	(8,195	) 	 	 	12,296	  	
Derivative valuation loss (gain), net	  	 	8	  	 	 	(42	) 	 	 	306	  	
Restatement related expenses	  	 	2,306	  	 	 	3,592	  	 	 	5,168	  	
Adjusted net loss	  	$	(1,888	) 	 	$	(2,816	) 	 	$	(11,064	) 	
Adjusted net loss per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Basic / Diluted	  	$	(0.05	) 	 	$	(0.08	) 	 	$	(0.32	) 	
Weighted average number of shares – Basic / Diluted	  	 	34,716,081	  	 	 	34,698,904	  	 	 	34,092,402	  	
We present Adjusted EBITDA and Adjusted Net Income (loss) as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) restructuring and other (gain), net, (ii) equity-based compensation expense, (iii) foreign currency loss (gain), net, (iv) derivative valuation loss (gain), net and (v) restatement related expenses. EBITDA for the periods indicated is defined as net income (loss) before interest expense, net, income tax expenses (benefits) and depreciation and amortization. We prepare Adjusted Net Income (loss) 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 (loss) is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income (loss) for the periods as net income (loss), adjusted to exclude (i) restructuring and other (gain), net, (ii) equity-based compensation expense, (iii) foreign currency loss (gain), net, (iv) derivative valuation loss (gain), net, and (v) restatement related expenses.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars, except share data)
(Unaudited)

 	  	June 30,
2016	 	 	December 31,
2015	 	
Assets	  	 	 	 	 	 	 	 	
Current assets	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	83,914	  	 	$	90,882	  	
Restricted cash	  	 	29,600	  	 	 	—  	  	
Accounts receivable, net	  	 	54,702	  	 	 	63,498	  	
Inventories, net	  	 	70,439	  	 	 	57,619	  	
Other receivables	  	 	6,025	  	 	 	31,932	  	
Prepaid expenses	  	 	10,241	  	 	 	7,075	  	
Hedge collateral	  	 	—  	  	 	 	6,000	  	
Other current assets	  	 	2,942	  	 	 	3,228	  	
Total current assets	  	 	257,863	  	 	 	260,234	  	
Property, plant and equipment, net	  	 	184,665	  	 	 	191,985	  	
Intangible assets, net	  	 	2,897	  	 	 	2,629	  	
Long-term prepaid expenses	  	 	13,421	  	 	 	12,117	  	
Deferred income tax assets	  	 	245	  	 	 	238	  	
Other non-current assets	  	 	6,570	  	 	 	6,897	  	
Total assets	  	$	465,661	  	 	$	474,100	  	
Liabilities and Stockholders’ Equity	  	 	 	 	 	 	 	 	
Current liabilities	  	 	 	 	 	 	 	 	
Accounts payable	  	$	64,243	  	 	$	55,476	  	
Other accounts payable	  	 	8,836	  	 	 	10,961	  	
Accrued expenses	  	 	80,062	  	 	 	76,721	  	
Deferred revenue	  	 	11,310	  	 	 	10,060	  	
Deposits received	  	 	—  	  	 	 	8,165	  	
Other current liabilities	  	 	4,741	  	 	 	5,128	  	
Total current liabilities	  	 	169,192	  	 	 	166,511	  	
Long-term borrowings, net	  	 	220,722	  	 	 	220,375	  	
Accrued severance benefits, net	  	 	131,841	  	 	 	134,148	  	
Other non-current liabilities	  	 	14,235	  	 	 	15,396	  	
Total liabilities	  	 	535,990	  	 	 	536,430	  	
Stockholders’ equity	  	 	 	 	 	 	 	 	
Common stock, $0.01 par value, 150,000,000 shares authorized, 41,310,519 shares issued and 34,731,754 outstanding at June 30 2016, and 41,147,707 shares issued and 34,568,942 outstanding at December 31, 2015	  	 	412	  	 	 	411	  	
Additional paid-in capital	  	 	126,121	  	 	 	124,618	  	
Accumulated deficit	  	 	(105,901	) 	 	 	(96,210	) 	
Treasury stock, 6,578,765 shares at June 30, 2016 and December 31,2015	  	 	(90,918	) 	 	 	(90,918	) 	
Accumulated other comprehensive loss	  	 	(43	) 	 	 	(231	) 	
Total stockholders’ deficit	  	 	(70,329	) 	 	 	(62,330	) 	
Total liabilities and stockholders’ equity	  	$	465,661	  	 	$	474,100	  	

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars)
(Unaudited)

 	  	Three Months
Ended	 	 	Six Months
Ended	 	
 	  	June 30,
2016	 	 	June 30,
2016	 	 	June 30,
2015	 	
Cash flows from operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	$	(17,816	) 	 	$	(9,691	) 	 	$	(50,655	) 	
Adjustments to reconcile net loss to net cash provided by (used in) operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	6,228	  	 	 	12,252	  	 	 	13,667	  	
Provision for severance benefits	  	 	4,056	  	 	 	9,827	  	 	 	11,877	  	
Amortization of debt issuance costs and original issue discount	  	 	174	  	 	 	347	  	 	 	324	  	
Loss (gain) on foreign currency, net	  	 	7,717	  	 	 	(1,140	) 	 	 	17,146	  	
Restructuring gain	  	 	—  	  	 	 	(7,785	) 	 	 	—  	  	
Stock-based compensation	  	 	968	  	 	 	1,504	  	 	 	1,977	  	
Other	  	 	174	  	 	 	164	  	 	 	1,544	  	
Changes in operating assets and liabilities	  	 	 	 	 	 	 	 	 	 	 	 	
Accounts receivable, net	  	 	789	  	 	 	8,505	  	 	 	3,145	  	
Inventories, net	  	 	0	  	 	 	(11,946	) 	 	 	1,623	  	
Other receivables	  	 	(3,309	) 	 	 	(3,635	) 	 	 	5,523	  	
Other current assets	  	 	3,707	  	 	 	2,123	  	 	 	2,235	  	
Deferred tax assets	  	 	12	  	 	 	37	  	 	 	339	  	
Accounts payable	  	 	2,859	  	 	 	7,779	  	 	 	(12,431	) 	
Other accounts payable	  	 	(1,408	) 	 	 	(5,156	) 	 	 	(5,550	) 	
Accrued expenses	  	 	5,642	  	 	 	1,913	  	 	 	(10,710	) 	
Other current liabilities	  	 	(2,192	) 	 	 	(1,364	) 	 	 	(699	) 	
Deferred revenue	  	 	11,254	  	 	 	1,477	  	 	 	(1,359	) 	
Other non-current liabilities	  	 	(336	) 	 	 	(661	) 	 	 	(1,084	) 	
Payment of severance benefits	  	 	(9,004	) 	 	 	(13,102	) 	 	 	(4,231	) 	
Other	  	 	(23	) 	 	 	(137	) 	 	 	(147	) 	
Net cash provided by (used in) operating activities	  	 	9,492	  	 	 	(8,689	) 	 	 	(27,466	) 	
Cash flows from investing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from settlement of hedge collateral	  	 	1,924	  	 	 	5,917	  	 	 	—  	  	
Payment of hedge collateral	  	 	—  	  	 	 	—  	  	 	 	(6,555	) 	
Purchase of plant, property and equipment	  	 	(1,546	) 	 	 	(5,834	) 	 	 	(1,964	) 	
Payment for intellectual property registration	  	 	(241	) 	 	 	(478	) 	 	 	(263	) 	
Collection of guarantee deposits	  	 	9	  	 	 	383	  	 	 	—  	  	
Payment of guarantee deposits	  	 	3	  	 	 	(11	) 	 	 	(642	) 	
Other	  	 	1	  	 	 	11	  	 	 	237	  	
Net cash provided by (used in) investing activities	  	 	150	  	 	 	(12	) 	 	 	(9,187	) 	
Cash flows from financing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from issuance of common stock	  	 	—  	  	 	 	—  	  	 	 	1,208	  	
Net cash provided by financing activities	  	 	—  	  	 	 	—  	  	 	 	1,208	  	
Effect of exchange rates on cash and cash equivalents	  	 	745	  	 	 	1,733	  	 	 	5,683	  	
Net increase (decrease) in cash and cash equivalents	  	 	10,387	  	 	 	(6,968	) 	 	 	(29,762	) 	
Cash and cash equivalents	  	 	 	 	 	 	 	 	 	 	 	 	
Beginning of the period	  	 	73,527	  	 	 	90,882	  	 	 	102,434	  	
End of the period	  	$	83,914	  	 	$	83,914	  	 	$	72,672