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): July 30, 2013

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., 74, rue de Merl, L-2146
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 (the “Company”) and its consolidated subsidiaries for the second quarter ended June 30, 2013, as presented in a press release dated July 30, 2013.
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 8.01	Other Events.	
On July 30, 2013, the Company issued a press release announcing the Board of Directors of the Company has approved a new stock repurchase program under which the Company is authorized to repurchase up to $100 million of its common stock. The stock repurchase program is effective August 5, 2013, through December 15, 2014, and replaces the stock repurchase program announced by the Company in October 2011 and amended in August 2012. The stock repurchase program does not obligate the Company to repurchase a minimum number of shares, and the program may be commenced, suspended, canceled or resumed at any time without prior notice. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of the Company’s common stock and other factors, and subject to contractual restrictions and restrictions under applicable law and regulations. A copy of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
 
Item 9.01.	Financial Statements and Exhibits.	
 
(d)	Exhibits.	
The following exhibits are furnished as part of this report:

Exhibit No.	  	Description	
 	 	
99.1	  	Press release for MagnaChip Semiconductor Corporation dated July 30, 2013, announcing the results for the second quarter ended June 30, 2013.	
 	 	
99.2	  	Press release dated July 30, 2013, in which MagnaChip Semiconductor Corporation announces a new stock repurchase program.	

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: July 30, 2013	 	 	 	By:	 	/s/ Margaret Sakai	
 	 	 	 	 	 	Margaret Sakai
Executive Vice President and Chief Financial Officer	

Exhibit Index

Exhibit No.	  	Description	
 	 	
99.1	  	Press release for MagnaChip Semiconductor Corporation dated July 30, 2013, announcing the results for the second quarter ended June 30, 2013.	
 	 	
99.2	  	Press release dated July 30, 2013, in which MagnaChip Semiconductor Corporation announces a new stock repurchase program.	

Exhibit 99.1
Press Release

 
 
MagnaChip Reports Second Quarter 2013 Financial Results
 
 	•	 	Revenue Grew 4.9% Sequentially, 6.2% Year-Over-Year	
 
 	•	 	Power Solutions Revenue Increased 19.1% Sequentially, 6.7% Year-Over-Year	
 
 	•	 	Gross Margin Improved 100 BPS Sequentially, 200 BPS Year-Over-Year	
 
 	•	 	Achieved GAAP EPS of $0.12 and Adjusted EPS of $0.71 Per Diluted Share	
 
 	•	 	Board Approves New $100 Million Stock Repurchase Program	
SEOUL, South Korea and CUPERTINO, Calif., July 30, 2013 — 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, 2013.
Revenue for the second quarter of 2013 was $215.3 million, a 4.9% increase compared to $205.3 million for the first quarter of 2013 and a 6.2% increase compared to $202.6 million for the second quarter of 2012.
Gross margin was $71.0 million or 33.0%, as a percent of revenue, for the second quarter of 2013. This compares to gross margin of $65.7 million or 32.0% for the first quarter of 2013 and $62.9 million or 31.0% for the second quarter of 2012.
Net income, on a GAAP basis, for the second quarter of 2013 totaled $4.4 million or $0.12 per diluted share. This compares to a net loss of $7.4 million or $0.21 per diluted share for the first quarter of 2013 and a net income of $4.3 million or $0.12 per diluted share for the second quarter of 2012.
“We delivered solid results in the second quarter. Revenue of $215.3 million dollars was up 4.9% sequentially and up 6.2% year-over-year. Gross margin of 33.0% was up 100 basis points compared to last quarter and up 200 basis points compared to Q2 of last year,” said Sang Park, MagnaChip Chairman and CEO. “We’re excited that our effort to focus on fast growing markets with our expanding list of innovative partners has enabled us to deliver ten consecutive quarters of meeting or exceeding our financial guidance, in spite of the recent soft demand from high-end smartphone makers.”
Adjusted net income, a non-GAAP measurement, for the second quarter of 2013 totaled $26.2 million or $0.71 per diluted share compared to $19.7 million or $0.53 per diluted share for the first quarter of 2013 and $17.9 million or $0.48 per diluted share for the second quarter of 2012.
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.

Combined cash balances (cash and cash equivalents plus restricted cash) totaled $192.6 million at the end of the second quarter of 2013, an increase of $9.6 million from the end of the prior quarter. Cash provided from operations totaled approximately $11.0 million for the second quarter of 2013.
Revenue by Segment

In thousands of US dollars	  	Three Months Ended	 	
 	  	June 30, 2013	 	  	March 31, 2013	 	  	June 30, 2012	 	
Semiconductor Manufacturing Services (Foundry)	  	$	109,751	  	  	$	104,138	  	  	$	91,318	  	
Display Solutions	  	 	68,867	  	  	 	70,323	  	  	 	76,784	  	
Power Solutions	  	 	35,959	  	  	 	30,184	  	  	 	33,699	  	
Other	  	 	712	  	  	 	653	  	  	 	833	  	
Total Revenue	  	$	215,289	  	  	$	205,298	  	  	$	202,634	  	
Second Quarter and Recent Company Highlights
 
 	•	 	Completed Private Offering of $225 Million of Senior Notes.	
 
 	•	 	Lowered Cash Interest Expense by 30.3% or $6.5 Million Annually.	
 
 	•	 	Corporate Credit and Debt Rating Upgraded by Moody’s Investors Service.	
 
 	•	 	Tenth Consecutive Quarter of Meeting or Exceeding Financial Guidance.	
Business Outlook
For the third quarter of 2013, MagnaChip expects:
 
 	•	 	Revenue will be in the range of $215 million to $225 million.	
 
 	•	 	Gross margin will be 33.0% to 34.0% as a percent of revenue.	
Conference Call
MagnaChip will hold a conference call at 5 p.m. EDT today to discuss the second quarter 2013 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 18170301 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 18170301.
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 ability to capitalize on improving market dynamics and future operating and financial performance including third quarter 2013 revenue and gross margin. 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’s filings with the SEC, including our Form 10-K filed on February 22, 2013 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,
2013	 	 	March 31,
2013	 	 	June 30,
2012	 	
Net sales	  	$	215,289	  	 	$	205,298	  	 	$	202,634	  	
Cost of sales	  	 	144,241	  	 	 	139,555	  	 	 	139,776	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	71,048	  	 	 	65,743	  	 	 	62,858	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit %	  	 	33.0	% 	 	 	32.0	% 	 	 	31.0	% 	
Selling, general and administrative expenses	  	 	19,709	  	 	 	19,791	  	 	 	20,093	  	
Research and development expenses	  	 	21,131	  	 	 	20,582	  	 	 	19,762	  	
Restructuring and impairment charges	  	 	—  	 	 	 	2,446	 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	30,208	  	 	 	22,924	  	 	 	23,003	  	
Other income (expenses)	  	 	 	 	 	 	 	 	 	 	 	 	
Interest expense, net	  	 	(5,879	) 	 	 	(5,849	) 	 	 	(5,619	) 	
Foreign currency loss, net	  	 	(20,978	) 	 	 	(22,558	) 	 	 	(10,586	) 	
Other	  	 	(230	) 	 	 	(260	) 	 	 	701	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	(27,087	) 	 	 	(28,667	) 	 	 	(15,504	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income taxes	  	 	3,121	  	 	 	(5,743	) 	 	 	7,499	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense (benefit)	  	 	(1,315	) 	 	 	1,662	  	 	 	3,159	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	4,436	  	 	$	(7,405	) 	 	$	4,340	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) per common share :	  	 	 	 	 	 	 	 	 	 	 	 	
- Basic	  	$	0.13	  	 	$	(0.21	) 	 	$	0.12	  	
- Diluted	  	$	0.12	  	 	$	(0.21	) 	 	$	0.12	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of shares—Basic	  	 	35,474,001	  	 	 	35,539,413	  	 	 	36,713,569	  	
Weighted average number of shares—Diluted	  	 	37,125,005	  	 	 	35,539,413	  	 	 	37,566,699	  	

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,
2013	 	 	March 31,
2013	 	 	June 30,
2012	 	
Net income (loss)	  	$	4,436	  	 	$	(7,405	) 	 	$	4,340	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	8,359	  	 	 	8,522	  	 	 	7,923	  	
Interest expense, net	  	 	5,879	  	 	 	5,849	  	 	 	5,619	  	
Income tax expense (benefit)	  	 	(1,315	) 	 	 	1,662	  	 	 	3,159	  	
Restructuring and impairment charges	  	 	—  	  	 	 	2,446	  	 	 	—  	  	
Stock-based compensation expense	  	 	493	  	 	 	420	  	 	 	457	  	
Foreign currency loss, net	  	 	20,978	  	 	 	22,558	  	 	 	10,586	  	
Derivative valuation loss (gain), net	  	 	230	  	 	 	267	  	 	 	(701	) 	
Secondary offering expense	  	 	—  	  	 	 	669	  	 	 	1,216	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	  	$	39,060	  	 	$	34,988	  	 	$	32,599	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	1.05	  	 	$	0.94	  	 	$	0.87	  	
Weighted average number of shares - Diluted	  	 	37,125,005	  	 	 	37,138,414	  	 	 	37,566,699	  	
Net income (loss)	  	$	4,436	  	 	$	(7,405	) 	 	$	4,340	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Restructuring and impairment charges	  	 	—  	  	 	 	2,446	  	 	 	—  	  	
Stock-based compensation expense	  	 	493	  	 	 	420	  	 	 	457	  	
Amortization of intangibles	  	 	1,492	  	 	 	1,749	  	 	 	1,980	  	
Foreign currency loss, net	  	 	20,978	  	 	 	22,558	  	 	 	10,586	  	
Derivative valuation loss (gain), net	  	 	230	  	 	 	267	  	 	 	(701	) 	
Secondary offering expense	  	 	—  	  	 	 	669	  	 	 	1,216	  	
GAAP and cash tax expense difference	  	 	(1,452	) 	 	 	(998	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income	  	$	26,177	  	 	$	19,706	  	 	$	17,878	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	0.71	  	 	$	0.53	  	 	$	0.48	  	
Weighted average number of shares — Diluted	  	 	37,125,005	  	 	 	37,138,414	  	 	 	37,566,699	  	
We define Adjusted EBITDA as net income (loss) adjusted to exclude (i) depreciation and amortization, (ii) interest expense, net, (iii) income tax expense (benefit), (iv) restructuring and impairment charges, (v) stock-based compensation expense, (vi) foreign currency loss, net, (vii) derivative valuation loss (gain), net, and (viii) secondary offering expense.
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) restructuring and impairment charges, (ii) stock-based compensation expense, (iii) amortization of intangibles, (iv) foreign currency loss, net, (v) derivative valuation loss (gain), net, (vi) secondary offering expense, and (vii) GAAP and cash tax expense difference.

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

 	  	June 30,
2013	 	 	December 31,
2012	 	
Assets	  	 	 	 	
Current assets	  	 	 	 	
Cash and cash equivalents	  	$	192,641	  	 	$	182,238	  	
Restricted cash	  	 	6	  	 	 	133	  	
Accounts receivable, net	  	 	165,181	  	 	 	143,331	 	
Inventories, net	  	 	76,342	  	 	 	89,363	 	
Other receivables	  	 	2,459	  	 	 	1,429	 	
Prepaid expenses	  	 	9,366	  	 	 	7,884	  	
Current deferred income tax assets	  	 	25,347	  	 	 	22,768	  	
Other current assets	  	 	3,695	  	 	 	9,680	 	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	475,037	  	 	 	456,826	 	
 	  	 	 	 	 	 	 	 	
Property, plant and equipment, net	  	 	247,242	  	 	 	238,256	 	
Intangible assets, net	  	 	10,068	  	 	 	15,260	 	
Long-term prepaid expenses	  	 	17,962	  	 	 	18,048	  	
Deferred income tax assets	  	 	42,631	  	 	 	46,710	  	
Other non-current assets	  	 	15,422	  	 	 	14,866	 	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	808,362	  	 	$	789,966	 	
 	  	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	  	 	 	 	
Current liabilities	  	 	 	 	
Accounts payable	  	$	76,175	  	 	$	79,236	 	
Other accounts payable	  	 	16,804	  	 	 	15,600	 	
Accrued expenses	  	 	49,918	  	 	 	43,486	 	
Derivative liabilities	  	 	10,247	  	 	 	—  	  	
Other current liabilities	  	 	6,912	  	 	 	9,973	 	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	160,056	  	 	 	148,295	 	
 	  	 	 	 	 	 	 	 	
Long-term borrowings, net	  	 	201,801	  	 	 	201,653	 	
Accrued severance benefits, net	  	 	112,198	  	 	 	112,446	 	
Other non-current liabilities	  	 	17,880	  	 	 	17,263	 	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	491,935	  	 	 	479,657	 	
 	  	 	 	 	 	 	 	 	
Stockholders’ equity	  	 	 	 	
Common stock, $0.01 par value, 150,000,000 shares authorized, 40,021,283 shares issued and 35,681,382 shares outstanding at June 30, 2013 and 39,599,374 shares issued and 35,635,357 shares outstanding at December 31, 2012	  	 	400	  	 	 	396	  	
Additional paid-in capital	  	 	107,375	  	 	 	101,885	 	
Retained earnings	  	 	284,282	  	 	 	287,251	  	
Treasury stock, 4,339,901 shares at June 30, 2013 and 3,964,017 shares at December 31, 2012	  	 	(45,918	) 	 	 	(39,918	) 	
Accumulated other comprehensive loss	  	 	(29,712	) 	 	 	(39,305	) 	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	316,427	  	 	 	310,309	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	808,362	  	 	$	789,966	 	

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

 	  	Three Months
Ended	 	 	Six Months
Ended	 	
 	  	June 30,
2013	 	 	June 30,
2013	 	 	June 30,
2012	 	
Cash flows from operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	4,436	  	 	$	(2,969	) 	 	$	19,603	  	
Adjustments to reconcile net income (loss) to net cash provided by operating activities	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	8,359	  	 	 	16,881	  	 	 	15,397	  	
Provision for severance benefits	  	 	6,457	  	 	 	10,686	  	 	 	10,975	  	
Amortization of debt issuance costs and original issue discount	  	 	285	  	 	 	568	  	 	 	497	  	
Loss on foreign currency translation, net	  	 	26,728	  	 	 	55,008	  	 	 	55	  	
Gain on disposal of property, plant and equipment, net	  	 	(26	) 	 	 	(26	) 	 	 	(190	) 	
Loss on disposal of intangible assets, net	  	 	—  	 	 	 	1	  	 	 	15	  	
Restructuring and impairment charges	  	 	—  	 	 	 	618	  	 	 	—  	 	
Stock-based compensation	  	 	493	  	 	 	913	  	 	 	915	  	
Other	  	 	776	  	 	 	1,411	  	 	 	(348	) 	
Changes in operating assets and liabilities	  	 	 	 	 	 	 	 	 	 	 	 	
Accounts receivable	  	 	(23,077	) 	 	 	(29,486	) 	 	 	(8,296	) 	
Inventories	  	 	4,738	  	 	 	6,760	  	 	 	(11,498	) 	
Other receivables	  	 	1,878	  	 	 	600	  	 	 	(2,580	) 	
Other current assets	  	 	5,411	  	 	 	7,425	  	 	 	8,851	  	
Deferred tax assets	  	 	(3,177	) 	 	 	(995	) 	 	 	1,146	  	
Accounts payable	  	 	(1,437	) 	 	 	853	  	 	 	14,654	  	
Other accounts payable	  	 	(17,256	) 	 	 	(7,522	) 	 	 	9,677	  	
Accrued expenses	  	 	(5,878	) 	 	 	(7,003	) 	 	 	7,890	  	
Other current liabilities	  	 	4,741	  	 	 	(1,097	) 	 	 	6,611	  	
Payment of severance benefits	  	 	(2,312	) 	 	 	(2,939	) 	 	 	(4,816	) 	
Other	  	 	(103	) 	 	 	(1,107	) 	 	 	(1,996	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	11,036	  	 	 	48,580	  	 	 	66,562	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Decrease in restricted cash	  	 	30	  	 	 	122	  	 	 	1,634	  	
Proceeds from disposal of plant, property and equipment	  	 	27	  	 	 	27	  	 	 	891	  	
Purchase of plant, property and equipment	  	 	(6,963	) 	 	 	(39,890	) 	 	 	(46,728	) 	
Payment for intellectual property registration	  	 	(101	) 	 	 	(243	) 	 	 	(565	) 	
Payment for acquisition	  	 	—  	 	 	 	—  	 	 	 	(8,642	) 	
Decrease in short-term financial instruments	  	 	—  	 	 	 	—  	 	 	 	173	  	
Collection of guarantee deposits	  	 	117	  	 	 	117	  	 	 	70	  	
Payment of guarantee deposits	  	 	(198	) 	 	 	(939	) 	 	 	(176	) 	
Other	  	 	3	  	 	 	11	  	 	 	(53	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(7,085	) 	 	 	(40,795	) 	 	 	(53,396	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities	  	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from issuance of common stock	  	 	3,575	  	 	 	4,581	  	 	 	183	  	
Repayment of obligations under capital lease	  	 	—  	 	 	 	—  	 	 	 	(2,968	) 	
Acquisition of treasury stock	  	 	—  	 	 	 	(6,000	) 	 	 	(16,935	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by (used in) financing activities	  	 	3,575	  	 	 	(1,419	) 	 	 	(19,720	) 	
Effect of exchange rates on cash and cash equivalents	  	 	2,128	  	 	 	4,037	  	 	 	207	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents	  	 	9,654	  	 	 	10,403	  	 	 	(6,347	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	  	 	 	 	 	 	 	 	 	 	 	 	
Beginning of the period	  	 	182,987	  	 	 	182,238	  	 	 	162,111	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
End of the period	  	$	192,641	  	 	$	192,641	  	 	$	155,764	  	

Exhibit 99.2
Press Release

 	

MagnaChip Announces New Stock Repurchase Program
SEOUL, South Korea and CUPERTINO, Calif., July 30, 2013 — MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced that its Board of Directors approved a new stock repurchase program that authorizes MagnaChip to repurchase, from time to time, up to $100 million of its common stock in the period from August 5, 2013, through December 15, 2014. Such purchases may be made in the open market, through block trades, in privately negotiated transactions or otherwise. The new repurchase program replaces MagnaChip’s existing repurchase program under which MagnaChip repurchased approximately 4.3 million common shares over six fiscal quarters.
The new stock repurchase program will be funded with MagnaChip’s cash on hand and does not obligate MagnaChip to repurchase a minimum number of shares. The program may be commenced, suspended, canceled or resumed at any time without prior notice. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of MagnaChip’s common stock and other factors, and subject to contractual restrictions and restrictions under applicable law and regulations.
Sang Park, MagnaChip Chairman and CEO, commented, “The adoption of the new stock repurchase program we are announcing today illustrates our confidence in the long-term growth prospects of our company and the strength and flexibility of our business model. The Board of Directors believes that our stock represents an attractive investment for MagnaChip and its investors, and expresses our ongoing commitment to increasing shareholder value.”
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 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 .

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	
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