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 6, 2015

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, 2015, as presented in a press release dated August 6, 2015.
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 6, 2015, announcing the results for the second quarter ended June 30, 2015.	

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 6, 2015	 	 	 	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 6, 2015, announcing the results for the second quarter ended June 30, 2015.	

Exhibit 99.1

 	  	Press Release	

MagnaChip Reports Second Quarter 2015 Financial Results
 
 	•	 	Reports Revenue of $162.0 Million and Total Gross Profit of 21.8%	
 
 	•	 	Begins Reporting Gross Profit for Semiconductor Manufacturing Services and Standard Products Group	
 
 	•	 	Comprehensive Cost Reduction Plans Initiated	
SEOUL, South Korea and SAN JOSE, Calif., August 6, 2015 — 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, 2015.
Revenue for the second quarter of 2015 was $162.0 million, a 1.7% decline compared to $164.9 million for the first quarter of 2015, and down 5.8% compared to $172.1 million for the second quarter of 2014. Semiconductor Manufacturing Services (Foundry) revenue in the second quarter of 2015 was $79.0 million, Display Solutions revenue was $48.9 million and Power Solutions revenue was $34.0 million.
Gross profit was $35.3 million, or 21.8% as a percent of revenue, for the second quarter of 2015. This compares to gross profit of $35.0 million, or 21.2%, for the first quarter of 2015 and $35.5 million, or 20.6%, for the second quarter of 2014. Gross profit improvement stemmed from improved product mix and cost savings activities. Aside from reporting its total gross profit, beginning with this second quarter, MagnaChip is now also reporting the gross profit for its Foundry business segment, and its new Standard Products Group business segment, which includes the Display Solutions and Power Solutions business lines. In the second quarter of 2015, Foundry gross profit was 21.8% and Standard Products Group gross profit was 21.7%.
Net loss, on a GAAP basis, for the second quarter of 2015 totaled $30.6 million, or $0.90 per diluted share, compared to net loss of $20.0 million, or $0.59 cents per diluted share, for the first quarter of 2015 and net income of $15.0 million, or $0.43 per diluted share, for the second quarter of 2014. Net loss was impacted primarily by lower revenue and gross profit as well as by non-cash foreign currency translation loss.
“Revenue in the second quarter was in line with our guidance and gross profit was higher than expected, but the near-term foundry business remains weak and we continue to face major challenges for the remainder of the year,” said YJ Kim, Chief Executive Officer. “We have identified new foundry opportunities to broaden our customer base and position MagnaChip for longer-term growth, but these engagements typically take several quarters to ramp up.”
In commenting on MagnaChip’s previously announced plan to implement a comprehensive cost reduction program, Chief Financial Officer Jonathan Kim said, “Given the current business outlook, we have already reduced our spending by approximately $20 million in the first half of 2015. We are moving to reduce total normalized spending by over $40 million in 2015 and have launched a comprehensive review to assess the feasibility of further cost reductions in 2016.”

Adjusted net loss, a non-GAAP measurement, for the second quarter of 2015 totaled $11.1 million, or $0.32 per diluted share, compared to an adjusted net loss of $9.6 million, or $0.28 per diluted share, in the first quarter of 2015 and compared to an adjusted net loss of $14.1 million, or $0.41 per diluted share, for the second quarter of 2014.
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’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 following the financial statements.
Cash and cash equivalents totaled $72.7 million at the end of the second quarter of 2015, a decrease of $18.7 million from the end of the prior quarter.
As disclosed in MagnaChip’s 2015 proxy statement, the Board of Directors has established a Strategic Review Committee to assist the Board in reviewing, considering and evaluating strategic alternatives that may be available to MagnaChip. MagnaChip has engaged Barclays to serve as its financial adviser in connection with the strategic review process. No decision has been made to enter into a transaction at this time and Magnachip can offer no assurance that it will enter into any transaction in the future. MagnaChip does not intend to disclose further developments unless and until such time as its Board of Directors has approved a specific course of action, or it otherwise deems further disclosure is appropriate or required.
The following table sets forth information relating to the operating segments:

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	June 30,
2015	 	  	June 30,
2014	 	  	June 30,
2015	 	  	June 30,
2014	 	
Net Sales	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Semiconductor Manufacturing Services	  	$	78,962	  	  	$	90,339	  	  	$	153,482	  	  	$	182,267	  	
Standard Products Group	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Display Solutions	  	 	48,918	  	  	 	45,327	  	  	 	105,271	  	  	 	85,706	  	
Power Solutions	  	 	33,995	  	  	 	36,275	  	  	 	67,832	  	  	 	68,050	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Standard Products Group	  	 	82,913	  	  	 	81,602	  	  	 	173,103	  	  	 	153,756	  	
All other	  	 	140	  	  	 	129	  	  	 	315	  	  	 	211	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total net sales	  	$	162,015	  	  	$	172,070	  	  	$	326,900	  	  	$	336,234	  	

 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	June 30,
2015	 	  	June 30,
2014	 	  	June 30,
2015	 	  	June 30,
2014	 	
Gross Profit	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Semiconductor Manufacturing Services	  	$	17,183	  	  	$	18,601	  	  	$	32,560	  	  	$	40,723	  	
Standard Products Group	  	 	17,963	  	  	 	16,727	  	  	 	37,388	  	  	 	34,801	  	
All other	  	 	140	  	  	 	129	  	  	 	315	  	  	 	210	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total gross profit	  	$	35,286	  	  	$	35,457	  	  	$	70,263	  	  	$	75,734	  	

Second Quarter and Recent Company Events
 
 	•	 	Established a task force to offer diversified products with ultra-low power technology for the fast growing Internet of Things (IoT) market	
 
 	•	 	Introduced a new premium 0.18 micron Bipolar-CMOS-DMOS (BCD) 100V high voltage process featuring operability up to 100V for various applications	
 
 	•	 	Received the Korea Patent Technology “King Sejong” grand prize award for the first half of 2015 granted by the Korean Intellectual Property Office	
 
 	•	 	Initiated the co-development of a 0.18 micron automotive MCU process with several partners	
Business Outlook
For the third quarter of 2015, MagnaChip anticipates:
 
 	•	 	Revenue to be in the range of $145 million to $155 million	
 
 	•	 	Gross profit to be 20% to 22% as a percent of revenue	
Conference Call
MagnaChip will hold a conference call at 5 p.m. EDT today (August 6, 2015) to discuss the second quarter 2015 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 92718867 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 92718867.
About MagnaChip Semiconductor Corporation
Headquartered in South Korea, MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications. MagnaChip believes it has one of the broadest and deepest ranges 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’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 2015 revenue and gross profit and expectations related to future spending and cost reduction initiatives. 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 May 28, 2015 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:
Robert Pursel
Director of Investor Relations
Tel. +1-408-625-1262
robert.pursel@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,
2015	 	 	March 31,
2015	 	 	June 30,
2014	 	
Net sales	  	$	162,015	  	 	$	164,885	  	 	$	172,070	  	
Cost of sales	  	 	126,729	  	 	 	129,908	  	 	 	136,613	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	35,286	  	 	 	34,977	  	 	 	35,457	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit %	  	 	21.8	%	 	 	21.2	%	 	 	20.6	%	
Operating expenses	  	 	 	 	 	 	 	 	 	 	 	 	
Selling, general and administrative expenses	  	 	28,588	  	 	 	25,030	  	 	 	30,746	  	
Research and development expenses	  	 	21,931	  	 	 	22,160	  	 	 	24,059	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	50,519	  	 	 	47,190	  	 	 	54,805	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating loss	  	 	(15,233	)	 	 	(12,213	)	 	 	(19,348	)	
Interest expense, net	  	 	(3,933	)	 	 	(4,063	)	 	 	(4,007	)	
Foreign currency gain (loss), net	  	 	(12,296	)	 	 	(3,176	)	 	 	38,424	  	
Other income, net	  	 	234	  	 	 	556	  	 	 	597	  	
Income (loss) before income taxes	  	 	(31,228	)	 	 	(18,896	)	 	 	15,666	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income tax expenses (benefits)	  	 	(602	)	 	 	1,133	  	 	 	656	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	(30,626	)	 	$	(20,029	)	 	$	15,010	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) per common share :	  	 	 	 	 	 	 	 	 	 	 	 	
- Basic	  	$	(0.90	)	 	$	(0.59	)	 	$	0.44	  	
- Diluted	  	$	(0.90	)	 	$	(0.59	)	 	$	0.43	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of shares—Basic	  	 	34,092,402	  	 	 	34,056,468	  	 	 	34,056,359	  	
Weighted average number of shares—Diluted	  	 	34,092,402	  	 	 	34,056,468	  	 	 	35,177,915	  	

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,
2015	 	 	March 31,
2015	 	 	June 30,
2014	 	
Net income (loss)	  	$	(30,626	)	 	$	(20,029	)	 	$	15,010	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	6,797	  	 	 	6,870	  	 	 	7,754	  	
Interest expense, net	  	 	3,933	  	 	 	4,063	  	 	 	4,007	  	
Income tax expenses (benefits)	  	 	(602	)	 	 	1,133	  	 	 	656	  	
Equity-based compensation expense	  	 	1,792	  	 	 	185	  	 	 	455	  	
Foreign currency loss (gain), net	  	 	12,296	  	 	 	3,176	  	 	 	(38,424	)	
Derivative valuation loss, net	  	 	306	  	 	 	—  	 	 	 	36	  	
Restatement related expenses	  	 	5,168	 	 	 	7,058	  	 	 	8,477	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	  	$	(936	) 	 	$	2,456	  	 	$	(2,029	)	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	(0.03	)	 	$	0.07	  	 	$	(0.06	) 	
Weighted average number of shares– Diluted	  	 	34,092,402	  	 	 	34,056,468	  	 	 	34,056,359	  	
Net income (loss)	  	$	(30,626	)	 	$	(20,029	)	 	$	15,010	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Amortization of intangibles	  	 	—  	 	 	 	—  	 	 	 	371	  	
Equity-based compensation expense	  	 	1,792	  	 	 	185	  	 	 	455	  	
Foreign currency loss (gain), net	  	 	12,296	  	 	 	3,176	  	 	 	(38,424	)	
Derivative valuation loss, net	  	 	306	  	 	 	—  	 	 	 	36	  	
Restatement related expenses	  	 	5,168	 	 	 	7,058	  	 	 	8,477	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net loss	  	$	(11,064	)	 	$	(9,610	)	 	$	(14,075	)	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net loss per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	(0.32	)	 	$	(0.28	)	 	$	(0.41	)	
Weighted average number of shares — Diluted	  	 	34,092,402	  	 	 	34,056,468	  	 	 	34,056,359	  	
We define Adjusted EBITDA as net income (loss), adjusted to exclude (i) depreciation and amortization, (ii) interest expense, net, (iii) income tax expenses (benefits), (iv) equity-based compensation expense, (v) foreign currency loss (gain), net, (vi) derivative valuation loss, net and (vii) restatement related expenses.
We present Adjusted Net Income as a further supplemental measure of our performance. We prepare Adjusted Net Income by adjusting net income 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), adjusted to exclude (i) amortization of intangibles, (ii) equity-based compensation expense, (iii) foreign currency loss (gain), net, (vi) derivative valuation loss, 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,
2015	 	 	December 31,
2014	 	
Assets	  	 	 	 	 	 	 	 	
Current assets	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	72,672	  	 	$	102,434	  	
Accounts receivable, net	  	 	67,780	  	 	 	72,957	  	
Inventories, net	  	 	71,800	  	 	 	75,334	  	
Other receivables	  	 	5,450	  	 	 	10,616	  	
Prepaid expenses	  	 	7,142	  	 	 	7,560	  	
Current deferred income tax assets	  	 	43	  	 	 	237	  	
Hedge collateral	  	 	6,380	  	 	 	—  	  	
Other current assets	  	 	7,383	  	 	 	6,898	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	238,650	  	 	 	276,036	  	
 	  	 	 	 	 	 	 	 	
Property, plant and equipment, net	  	 	208,351	  	 	 	223,766	  	
Intangible assets, net	  	 	2,476	  	 	 	2,451	  	
Long-term prepaid expenses	  	 	9,875	  	 	 	10,916	  	
Deferred income tax assets	  	 	260	  	 	 	415	  	
Other non-current assets	  	 	12,876	  	 	 	14,147	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	472,488	  	 	$	527,731	  	
 	  	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	  	 	 	 	 	 	 	 	
Current liabilities	  	 	 	 	 	 	 	 	
Accounts payable	  	$	57,432	  	 	$	70,767	  	
Other accounts payable	  	 	9,724	  	 	 	10,986	  	
Accrued expenses	  	 	75,556	  	 	 	81,060	  	
Other current liabilities	  	 	5,946	  	 	 	6,460	  	
Total current liabilities	  	 	148,658	  	 	 	169,273	  	
 	  	 	 	 	 	 	 	 	
Long-term borrowings, net	  	 	224,095	  	 	 	224,035	  	
Accrued severance benefits, net	  	 	143,727	  	 	 	139,289	  	
Other non-current liabilities	  	 	10,703	  	 	 	13,636	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	527,183	  	 	 	546,233	  	
 	  	 	 	 	 	 	 	 	
Stockholders’ equity	  	 	 	 	 	 	 	 	
Common stock, $0.01 par value, 150,000,000 shares authorized, 40,840,685 shares issued and 34,261,920 outstanding at June 30, 2015 and 40,635,233 shares issued and 34,056,468 outstanding at December 31, 2014	  	 	408	  	 	 	406	  	
Additional paid-in capital	  	 	121,602	  	 	 	118,419	  	
Accumulated deficit	  	 	(61,998	)	 	 	(11,343	)	
Treasury stock, 6,578,765 shares at June 30, 2015 and December 31, 2014	  	 	(90,918	)	 	 	(90,918	)	
Accumulated other comprehensive loss	  	 	(23,789	)	 	 	(35,066	)	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity (deficit)	  	 	(54,695	)	 	 	(18,502	)	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	472,488	  	 	$	527,731	  	

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

 	  	Three Months
Ended	 	 	Six Months
Ended	 	
 	  	June 30,
2015	 	 	June 30,
2015	 	 	June 30,
2014	 	
Cash flows from operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	$	(30,626	) 	 	$	(50,655	) 	 	$	(6,595	) 	
Adjustments to reconcile net loss to net cash provided by (used in) operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	6,797	  	 	 	13,667	  	 	 	15,022	  	
Provision for severance benefits	  	 	4,617	  	 	 	11,877	  	 	 	9,426	  	
Bad debt expenses (reversal of allowance)	  	 	17	  	 	 	(3	) 	 	 	3,724	  	
Amortization of debt issuance costs and original issue discount	  	 	162	  	 	 	324	  	 	 	301	  	
Loss (gain) on foreign currency, net	  	 	12,967	  	 	 	17,146	  	 	 	(31,969	) 	
Gain on disposal of investments	  	 	—  	 	 	 	—  	 	 	 	(1,524	) 	
Stock-based compensation	  	 	1,792	  	 	 	1,977	  	 	 	1,072	  	
Other	  	 	1,769	  	 	 	1,547	  	 	 	758	  	
Changes in operating assets and liabilities	  	 	 	 	 	 	 	 	 	 	 	 	
Accounts receivable	  	 	3,012	  	 	 	3,145	  	 	 	6,712	  	
Inventories, net	  	 	3,324	  	 	 	1,623	  	 	 	(11,537	) 	
Other receivables	  	 	(617	) 	 	 	5,523	  	 	 	781	  	
Other current assets	  	 	3,888	  	 	 	2,235	  	 	 	4,590	  	
Deferred tax assets	  	 	15	  	 	 	339	  	 	 	391	  	
Accounts payable	  	 	(18,333	) 	 	 	(12,431	) 	 	 	4,556	  	
Other accounts payable	  	 	(669	) 	 	 	(5,550	) 	 	 	(8,560	) 	
Accrued expenses	  	 	(3,084	) 	 	 	(10,710	) 	 	 	20,260	  	
Other current liabilities	  	 	(284	) 	 	 	(2,058	) 	 	 	1,230	  	
Other non-current liabilities	  	 	(864	) 	 	 	(1,084	) 	 	 	292	  	
Payment of severance benefits	  	 	(2,890	) 	 	 	(4,231	) 	 	 	(3,490	) 	
Other	  	 	220	  	 	 	(147	) 	 	 	13	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by (used in) operating activities	  	 	(18,787	) 	 	 	(27,466	) 	 	 	5,453	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Payment of hedge collateral	  	 	(6,555	) 	 	 	(6,555	) 	 	 	—  	 	
Proceeds from disposal of investments	  	 	—  	 	 	 	—  	 	 	 	2,003	  	
Purchase of plant, property and equipment	  	 	(1,407	) 	 	 	(1,964	) 	 	 	(12,058	) 	
Payment for intellectual property registration	  	 	(186	) 	 	 	(263	) 	 	 	(490	) 	
Payment of guarantee deposits	  	 	(231	) 	 	 	(642	) 	 	 	(308	) 	
Other	  	 	222	  	 	 	237	  	 	 	39	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(8,157	) 	 	 	(9,187	) 	 	 	(10,814	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from issuance of common stock	  	 	1,208	  	 	 	1,208	  	 	 	67	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by financing activities	  	 	1,208	  	 	 	1,208	  	 	 	67	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rates on cash and cash equivalents	  	 	7,013	  	 	 	5,683	  	 	 	(7,315	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net decrease in cash and cash equivalents	  	 	(18,723	) 	 	 	(29,762	) 	 	 	(12,609	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	  	 	 	 	 	 	 	 	 	 	 	 	
Beginning of the period	  	 	91,395	  	 	 	102,434	  	 	 	153,606	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
End of the period	  	$	72,672	  	 	$	72,672	  	 	$	140,997