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): October 28, 2010

MAGNACHIP SEMICONDUCTOR LLC
(Exact name of Registrant as specified in its charter)

 
 	 	 	 	 	
Delaware	 	333-168516-09	 	26-1815025	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	

c/o MagnaChip Semiconductor S.A., 74, rue de Merl,
B.P. 709, L-2017 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 LLC and its consolidated subsidiaries for the third quarter ended September 30, 2010, as presented in a press release dated October 28, 2010.
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 exhibits are furnished as part of this report:

Exhibit No.	  	Description	
99.1	  	Press release for MagnaChip Semiconductor LLC dated October 28, 2010,
announcing the results for the third quarter ended September 30, 2010.	

 
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 LLC	
 	 	 	
Dated: October 28, 2010	 	By:	 	      /s/ Margaret Sakai	
 	 	 	 	Margaret Sakai	
 	 	 	 	Chief Financial Officer	

 
Exhibit Index

Exhibit No.	  	Description	
99.1	  	Press release for MagnaChip Semiconductor LLC dated October 28, 2010,
announcing the results for the third quarter ended September 30, 2010.	

Exhibit 99.1

 
MagnaChip Reports Solid Third Quarter 2010
Financial Results
SEOUL, South Korea and CUPERTINO, Calif., October 28, 2010 — MagnaChip Semiconductor LLC (“MagnaChip Semiconductor”) today announced financial results for the quarter ended September 30, 2010.
Revenue for the third quarter of 2010 was $209.4 million, a 7.6% increase compared to $194.7 million for the second quarter of 2010, and a 33.7% increase compared to $156.6 million for the third quarter ended September 27, 2009.
Gross profit was $69.3 million or 33.1%, as a percent of revenue, for the third quarter of 2010. This compares to gross profit of $64.5 million or 33.1% for the second quarter of 2010 and $52.2 million or 33.3% for the year-ago quarter.
“We again delivered solid financial results with sequential revenue growth of nearly 8% this quarter driven by our Manufacturing Services and Power Solutions segments,” said Sang Park, MagnaChip Semiconductor’s Chairman and Chief Executive Officer. “While recent industry announcements indicate some uncertainty regarding the state of the global semiconductor market recovery, MagnaChip continues to be well-positioned for profitable growth with a strong product portfolio and pipeline of new products during this short-term inventory correction.”
Operating expense was $39.8 million or 19.0% of revenue for the third quarter of 2010. This compares to $36.8 million or 18.9% of revenue for the second quarter of 2010 and $34.9 million or 22.3% of revenue for the third quarter of 2009.
Operating income was $29.6 million for the third quarter of 2010 or 14.1% of revenue. This compares to operating income of $27.8 million or 14.3% of revenue for the second quarter of 2010 and $17.3 million or 11.0% of revenue for the third quarter of 2009.
Net income, on a GAAP basis, for the third quarter of 2010 totaled $61.5 million or $0.20 per diluted common unit. This compares to net loss of $30.7 million or $0.10 per diluted common unit for the second quarter of 2010 and net income of $62.4 million or $1.18 per diluted common unit for the third quarter of 2009. Net income, for the third
 
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quarter of 2010, was impacted primarily by a foreign currency gain of $41.4 million compared to a foreign currency loss of $48.3 million for the second quarter of 2010 and a foreign currency gain of $45.4 million for third quarter of 2009, respectively. The net foreign currency exposure is primarily related to non-cash translation gains or losses for intercompany borrowings at our Korean subsidiary that are denominated in U.S. dollars.
Adjusted net income, a non-GAAP measurement, for the third quarter of 2010 totaled $26.2 million compared to $25.7 million for the second quarter of 2010, and $20.4 million for the third quarter of 2009.
Adjusted EBITDA, a non-GAAP measurement, for the third quarter of 2010 totaled $45.7 million compared to $43.8 million for the second quarter of 2010, and $34.5 million for the third quarter of 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 $161.4 million at the end of the third quarter of 2010, an increase of $20.1 million from the end of the prior quarter. Cash provided from operations totaled approximately $30.7 million for the third quarter of 2010. This compares to $36.0 million for the second quarter of 2010 and $4.6 million for the third quarter of 2009.
Revenue by Segment
In thousands of US dollars

 	  	Three Months Ended
 	 	
 	  	Successor
 	 	  	Predecessor
 	 	
 	  	3Q 10
 	 	  	2Q 10
 	 	  	3Q 09
 	 	
Semiconductor Manufacturing Services	  	$	113,171	  	  	$	101,564	  	  	$	76,354	  	
Display Solutions	  	 	77,989	  	  	 	80,584	  	  	 	75,588	  	
Power Solutions	  	 	17,801	  	  	 	12,040	  	  	 	3,812	  	
Other	  	 	487	  	  	 	512	  	  	 	873	  	
Total Revenue	  	$	209,448	  	  	$	194,700	  	  	$	156,627	  	
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 activities, other restructuring charges, reorganization items, inventory step-up, equity-based compensation, foreign currency loss (gain) and derivative valuation loss (gain). Adjusted net income (loss) excludes charges related to restructuring and impairment, other restructuring charges, reorganization items, inventory step-up equity-based compensation, amortization of intangible assets associated with continuing operations, foreign currency loss (gain) and derivative valuation loss (gain). A reconciliation of GAAP results to non-GAAP results is included following the financial statements below.
 
Page 2

 
Conference Call
MagnaChip Semiconductor will host a teleconference at 11 a.m. PDT today to discuss the third quarter 2010 financial results. The conference call will be webcast live and can also be monitored by dialing 1-866-776-2061 in the U.S. or 1-706-679-0298 for all other locations. The conference ID number is 17066059 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 11 a.m. PDT start time to ensure a timely connection. The webcast can be accessed at www.magnachip.com and will be archived for one year.
A replay of the conference call will be available the same day and will run for 72 hours. The replay access numbers are 1-800-642-1687 and 1-706-645-9291. The access code is 17066059.
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 10-Q filed on September 3, 2010, 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.
 
Page 3

 
 	 	 	
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	
# # #
 
Page 4

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

 	  	Three Months Ended	 	
 	  	Successor	 	 	Predecessor	 	
 	  	September 30,
2010	 	 	June  30,
2010	 	 	September 27,
2009	 	
Net sales	  	$	209,448	  	 	$	194,700	  	 	$	156,627	  	
Cost of sales	  	 	140,133	  	 	 	130,166	  	 	 	104,465	  	

Gross profit	  	 	69,315	  	 	 	64,534	  	 	 	52,162	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit %	  	 	33.1	% 	 	 	33.1	% 	 	 	33.3	% 	
 	 	 	 	
Selling, general and administrative expenses	  	 	16,202	  	 	 	15,964	  	 	 	17,175	  	
Research and development expenses	  	 	23,119	  	 	 	20,543	  	 	 	17,704	  	
Restructuring and impairment charges	  	 	442	  	 	 	267	  	 	 	—  	  	

Operating income from continuing operations	  	 	29,552	  	 	 	27,760	  	 	 	17,283	  	

Other income (expenses)	  	 	 	 	 	 	 	 	 	 	 	 	
Interest expense, net	  	 	(7,312	) 	 	 	(6,557	) 	 	 	(2,642	) 	
Foreign currency gain (loss), net	  	 	41,400	  	 	 	(48,273	) 	 	 	45,449	  	
Reorganization items, net	  	 	—  	  	 	 	—  	  	 	 	(4,135	) 	
Others	  	 	312	  	 	 	(950	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	34,400	  	 	 	(55,780	) 	 	 	38,672	  	

Income (loss) from continuing operations before income taxes	  	 	63,952	  	 	 	(28,020	) 	 	 	55,955	  	

Income tax expenses	  	 	2,457	  	 	 	2,727	  	 	 	2,434	  	

Income (loss) from continuing operations	  	 	61,495	  	 	 	(30,747	) 	 	 	53,521	  	

Income from discontinued operations, net of taxes	  	 	—  	  	 	 	—  	  	 	 	8,916	  	

Net income (loss)	  	$	61,495	  	 	$	(30,747	) 	 	$	62,437	  	

Income (loss) from continuing operations attributable to common units	  	$	61,495	  	 	$	(30,747	) 	 	$	53,521	  	

Net income (loss) attributable to common units	  	$	61,495	  	 	$	(30,747	) 	 	$	62,437	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) per common unit from continuing operations—Basic and diluted	  	$	0.20	  	 	$	(0.10	) 	 	$	1.01	  	

Earnings (loss) per common unit from discontinued operations—Basic and diluted	  	$	—  	  	 	$	—  	  	 	$	0.17	  	

Earnings (loss) per common unit—Basic and diluted	  	$	0.20	  	 	$	(0.10	) 	 	$	1.18	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of units—Basic	  	 	302,558,556	  	 	 	302,558,556	  	 	 	52,923,483	  	
Weighted average number of units—Diluted	  	 	313,604,679	  	 	 	302,558,556	  	 	 	52,923,483	  	
 
Page 5

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

 	  	Three Months Ended	 	
 	  	Successor	 	 	  	  	 	  	Predecessor	 	
 	  	September 30,
2010	 	 	June 30,
2010	 	 	  	  	 	  	September 27,
2009	 	
Net income (loss)	  	$	61,495	  	 	$	(30,747	) 	 	 	  	 	  	$	62,437	  	
Less: Income from discontinued operations, net of taxes	  	 	—  	  	 	 	—  	  	 	 	  	 	  	 	8,916	  	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Income (loss) from continuing operations	  	 	61,495	  	 	 	(30,747	) 	 	 	  	 	  	 	53,521	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Depreciation and amortization associated with continuing operations	  	 	14,347	  	 	 	14,508	  	 	 	  	 	  	 	11,887	  	
Interest expense, net	  	 	7,312	  	 	 	6,557	  	 	 	  	 	  	 	2,642	  	
Income tax expenses	  	 	2,457	  	 	 	2,727	  	 	 	  	 	  	 	2,434	  	
Restructuring and impairment charges	  	 	442	  	 	 	267	  	 	 	  	 	  	 	—  	  	
Other restructuring charges	  	 	—  	  	 	 	—  	  	 	 	  	 	  	 	5,306	  	
Reorganization items, net	  	 	—  	  	 	 	—  	  	 	 	  	 	  	 	4,135	  	
Equity-based compensation expense	  	 	1,320	  	 	 	1,279	  	 	 	  	 	  	 	51	  	
Foreign currency (gain) loss, net	  	 	(41,400	) 	 	 	48,273	  	 	 	  	 	  	 	(45,449	) 	
Derivative valuation (gain) loss, net	  	 	(312	) 	 	 	950	  	 	 	  	 	  	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Adjusted EBITDA	  	$	45,661	  	 	$	43,814	  	 	 	  	 	  	$	34,527	  	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Adjusted EBITDA per Common Unit:	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
- Basic and diluted	  	 	0.15	  	 	 	0.14	  	 	 	  	 	  	 	0.65	  	
 	 	 	 	 	 	
Net income (loss)	  	$	61,495	  	 	$	(30,747	) 	 	 	  	 	  	$	62,437	  	
Less: Income from discontinued operations, net of taxes	  	 	—  	  	 	 	—  	  	 	 	  	 	  	 	8,916	  	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Income (loss) from continuing operations	  	 	61,495	  	 	$	(30,747	) 	 	 	  	 	  	 	53,521	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Restructuring and impairment charges	  	 	442	  	 	 	267	  	 	 	  	 	  	 	—  	  	
Other restructuring charges	  	 	—  	  	 	 	—  	  	 	 	  	 	  	 	5,306	  	
Reorganization items, net	  	 	—  	  	 	 	—  	  	 	 	  	 	  	 	4,135	  	
Equity based compensation expense	  	 	1,320	  	 	 	1,279	  	 	 	  	 	  	 	51	  	
Amortization of intangibles associated with continuing operations	  	 	4,681	  	 	 	5,718	  	 	 	  	 	  	 	2,817	  	
Foreign currency (gain) loss, net	  	 	(41,400 	) 	 	 	48,273	  	 	 	  	 	  	 	(45,449	) 	
Derivative valuation (gain) loss, net	  	 	(312	) 	 	 	950	  	 	 	  	 	  	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Adjusted Net Income	  	$	26,226	  	 	$	25,740	  	 	 	  	 	  	$	20,381	  	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
Adjusted Net Income per Common Unit:	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	
- Basic	  	$	0.09	  	 	$	0.09	  	 	 	  	 	  	$	0.39	  	
- Diluted	  	 	0.08	  	 	 	0.08	  	 	 	  	 	  	 	0.39	  	
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 expense, (iv) restructuring and impairment charges, (v) other restructuring charges, (vi) abandoned IPO expenses, (vii) subcontractor claim settlement, (viii) reorganization items, net, (ix) the increase in cost of sales resulting from the fresh-start accounting inventory step-up, (x) equity-based compensation expense, (xi) foreign currency gain (loss), net, and (xii) derivative valuation loss(gain), 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.
 
Page 6

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

 	  	Successor	 	
 	  	September 30,
2010	 	 	December 31,
2009	 	
Assets	  	 	 	 	 	 	 	 	
Current assets	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	161,429	  	 	$	64,925	  	
Accounts receivable, net	  	 	136,945	  	 	 	74,233	  	
Inventories, net	  	 	65,029	  	 	 	63,407	  	
Other receivables	  	 	4,476	  	 	 	3,433	  	
Prepaid expenses	  	 	10,375	  	 	 	12,625	  	
Other current assets	  	 	17,327	  	 	 	3,433	  	

Total current assets	  	 	395,581	  	 	 	222,056	  	

Property, plant and equipment, net	  	 	175,393	  	 	 	156,337	  	
Intangible assets, net	  	 	31,500	  	 	 	50,158	  	
Long-term prepaid expenses	  	 	9,685	  	 	 	10,542	  	
Other non-current assets	  	 	22,135	  	 	 	14,238	  	

Total assets	  	$	634,294	  	 	$	453,331	  	

Liabilities and Unitholders’ Equity	  	 	 	 	 	 	 	 	
Current liabilities	  	 	 	 	 	 	 	 	
Accounts payable	  	$	71,958	  	 	$	59,705	  	
Other accounts payable	  	 	12,987	  	 	 	7,190	  	
Accrued expenses	  	 	48,012	  	 	 	22,114	  	
Current portion of long-term debt	  	 	—  	  	 	 	618	  	
Obligation under capital lease	  	 	5,222	  	 	 	—  	  	
Other current liabilities	  	 	5,235	  	 	 	3,937	  	

Total current liabilities	  	 	143,414	  	 	 	93,564	  	
 	 	 	
Long-term borrowings	  	 	246,814	  	 	 	61,132	  	
Obligation under capital lease	  	 	4,270	  	 	 	—  	  	
Accrued severance benefits, net	  	 	84,943	  	 	 	72,409	  	
Other non-current liabilities	  	 	7,748	  	 	 	10,536	  	

Total liabilities	  	 	487,189	  	 	 	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 September 30, 2010 and December
31, 2009, respectively	  	 	55,453	  	 	 	55,135	  	
Additional paid-in capital	  	 	39,887	  	 	 	168,700	  	
Retained earnings (accumulated deficit)	  	 	59,886	  	 	 	(1,963	) 	
Accumulated other comprehensive loss	  	 	(8,121	) 	 	 	(6,182	) 	

Total unitholders’ equity	  	 	147,105	  	 	 	215,690	  	

Total liabilities and unitholders’ equity	  	$	634,294	  	 	$	453,331	  	

Page 7

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

 	  	Nine Months Ended	 	
 	  	Successor	 	 	  	  	 	  	Predecessor	 	
 	  	September 30,
2010	 	 	  	  	 	  	September 27,
2009	 	
Cash flows from operating activities	  	 	 	 	 	 	  	 	  	 	 	 	
Net income	  	$	61,849	  	 	 	  	 	  	$	20,357	  	
Adjustments to reconcile net income (loss) to net cash provided by operating activities	  	 	 	 	 	 	  	 	  	 	 	 	
Depreciation and amortization	  	 	44,332	  	 	 	  	 	  	 	34,608	  	
Provision for severance benefits	  	 	15,123	  	 	 	  	 	  	 	7,831	  	
Amortization of debt issuance costs	  	 	687	  	 	 	  	 	  	 	756	  	
Gain on foreign currency translation, net	  	 	(16,704	) 	 	 	  	 	  	 	(36,182	) 	
Loss (gain) on disposal of property, plant and equipment, net	  	 	(7	) 	 	 	  	 	  	 	84	  	
Loss (gain) on disposal of intangible assets, net	  	 	9	  	 	 	  	 	  	 	(9,139	) 	
Restructuring and impairment charges	  	 	1,045	  	 	 	  	 	  	 	—  	  	
Unit-based compensation	  	 	4,072	  	 	 	  	 	  	 	219	  	
Cash used for reorganization items	  	 	1,573	  	 	 	  	 	  	 	2	 	
Noncash reorganization items	  	 	—  	  	 	 	  	 	  	 	4,473	  	
Other	  	 	951	  	 	 	  	 	  	 	1,997	  	
Changes in operating assets and liabilities	  	 	 	 	 	 	  	 	  	 	 	 	
Accounts receivable	  	 	(61,771	) 	 	 	  	 	  	 	(17,961	) 	
Inventories	  	 	193	  	 	 	  	 	  	 	(1,878	) 	
Other receivables	  	 	(1,229	) 	 	 	  	 	  	 	(455	) 	
Deferred tax assets	  	 	1,133	  	 	 	  	 	  	 	1,874	  	
Accounts payable	  	 	10,400	  	 	 	  	 	  	 	6,686	  	
Other accounts payable	  	 	6,332	  	 	 	  	 	  	 	(11,534	) 	
Accrued expenses	  	 	22,094	  	 	 	  	 	  	 	27,550	  	
Long term other payable	  	 	(1,606	) 	 	 	  	 	  	 	454	  	
Other current assets	  	 	(221	) 	 	 	  	 	  	 	4,873	  	
Other current liabilities	  	 	516	  	 	 	  	 	  	 	60	  	
Payment of severance benefits	  	 	(4,707	) 	 	 	  	 	  	 	(4,085	) 	
Other	  	 	(864	) 	 	 	  	 	  	 	(476	) 	
 	  	 	 	 	 	 	  	 	  	 	 	 	
Net cash provided by operating activities before reorganization items	  	 	83,200	  	 	 	  	 	  	 	30,114	  	
 	  	 	 	 	 	 	  	 	  	 	 	 	
Cash used for reorganization items	  	 	(1,573	) 	 	 	  	 	  	 	(2	) 	
 	  	 	 	 	 	 	  	 	  	 	 	 	
Net cash provided by operating activities	  	 	81,627	  	 	 	  	 	  	 	30,112	  	

Cash flows from investing activities	  	 	 	 	 	 	  	 	  	 	 	 	
Proceeds from disposal of plant, property and equipment	  	 	10	  	 	 	  	 	  	 	299	  	
Proceeds from disposal of intangible assets	  	 	—  	  	 	 	  	 	  	 	9,283	  	
Purchase of plant, property and equipment	  	 	(29,739	) 	 	 	  	 	  	 	(7,270	) 	
Payment for intellectual property registration	  	 	(437	) 	 	 	  	 	  	 	(317	) 	
Increase in restricted cash	  	 	—  	  	 	 	  	 	  	 	(34,067	) 	
Decrease (increase) in short-term financial instruments	  	 	329	  	 	 	  	 	  	 	(326	) 	
Decrease in guarantee deposits	  	 	1,011	  	 	 	  	 	  	 	632	  	
Other	  	 	(807	) 	 	 	  	 	  	 	(25	) 	
 	  	 	 	 	 	 	  	 	  	 	 	 	
Net cash used in investing activities	  	 	(29,633	) 	 	 	  	 	  	 	(31,791	) 	

Cash flows from financing activities	  	 	 	 	 	 	  	 	  	 	 	 	
Proceeds from issuance of senior notes	  	 	246,685	  	 	 	  	 	  	 	—  	  	
Debt issuance costs paid	  	 	(8,313	) 	 	 	  	 	  	 	 	 	
Repayment of long-term debt	  	 	(61,750	) 	 	 	  	 	  	 	—  	  	
Repayment of obligation under capital lease	  	 	(1,812	) 	 	 	  	 	  	 	 	 	
Distribution to unitholders	  	 	(130,697	) 	 	 	  	 	  	 	—  	  	
 	  	 	 	 	 	 	  	 	  	 	 	 	
Net cash provided by financing activities	  	 	44,113	  	 	 	  	 	  	 	—  	  	
Effect of exchange rates on cash and cash equivalents	  	 	397	  	 	 	  	 	  	 	3,047	  	
 	  	 	 	 	 	 	  	 	  	 	 	 	
Net increase in cash and cash equivalents	  	 	96,504	  	 	 	  	 	  	 	1,368	  	

Cash and cash equivalents	  	 	 	 	 	 	  	 	  	 	 	 	
Beginning of the period	  	 	64,925	  	 	 	  	 	  	 	4,037	  	
 	  	 	 	 	 	 	  	 	  	 	 	 	
End of the period	  	$	161,429	  	 	 	  	 	  	$	5,405	  	

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