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): April 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,
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 Corporation and its consolidated subsidiaries for the first quarter ended March 31, 2013, as presented in a press release dated April 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 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 April 30, 2013, announcing the results for the first quarter ended March 31, 2013.	

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: April 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 April 30, 2013, announcing the results for the first quarter ended March 31, 2013.	

Exhibit 99.1

Press Release

MagnaChip Reports First Quarter 2013 Financial Results
 
 	•	 	Revenue Grew 16% Year-Over-Year	
 
 	•	 	Gross Margin Improved 380 Basis Points Year-Over-Year	
 
 	•	 	Foundry Business Revenue Increased 53% Year-Over-Year	
 
 	•	 	Ninth Consecutive Quarter of Achieving Financial Guidance	
SEOUL, South Korea and CUPERTINO, Calif., April 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 first quarter ended March 31, 2013.
Revenue for the first quarter of 2013 was $205.3 million, a 5.9% decrease compared to $218.1 million for the fourth quarter of 2012 and a 16.0% increase compared to $177.0 million for the first quarter of 2012.
Gross margin was $65.7 million or 32.0%, as a percent of revenue, for the first quarter of 2013. This compares to gross margin of $74.3 million or 34.1% for the fourth quarter of 2012 and $49.9 million or 28.2% for the first quarter of 2012.
Net loss, on a GAAP basis, for the first quarter of 2013 totaled $7.4 million or $0.21 per diluted share. This compares to net income of $125.3 million or $3.38 per diluted share for the fourth quarter of 2012 and a net income of $15.3 million or $0.40 per diluted share for the first quarter of 2012. Net loss was impacted primarily by a foreign currency loss of $22.6 million during the quarter which was primarily related to non-cash foreign currency translation for intercompany balances that were denominated in U.S. dollars.
“Our first quarter revenue and margin performance was better than the same quarter last year because of the product mix and customer shift we have been making which has enabled us to be better aligned with growing markets, said Sang Park, MagnaChip Chairman and CEO. “The March quarter is typically a weak quarter due to seasonality and the post-holiday consumer spending slowdown. However, in addition to normal seasonality we also experienced lower than anticipated demand from the smartphone market. Despite these obstacles, we were able to achieve our financial guidance for the ninth consecutive quarter. Looking ahead, challenges still remain and visibility is somewhat limited. However, we remain optimistic that the macro environment is starting to improve and that our business will return to normal seasonal growth beginning in the second quarter.”
Adjusted net income, a non-GAAP measurement, for the first quarter of 2013 totaled $19.7 million or $0.53 per diluted share compared to $28.7 million or $0.77 per diluted share for the fourth quarter of 2012 and $6.5 million or $0.17 per diluted share for the first 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 $183.0 million at the end of the first quarter of 2013, an increase of $0.7 million from the end of the prior quarter. Cash provided from operations totaled approximately $37.5 million for the first quarter of 2013.
Revenue by Segment

In thousands of US dollars	  	Three Months Ended	 	
 	  	March 31, 2013	 	  	December 31,
2012	 	  	March 31, 2012	 	
Semiconductor Manufacturing Services	  	$	104,138	  	  	$	112,654	  	  	$	67,863	  	
Display Solutions	  	 	70,323	  	  	 	72,806	  	  	 	83,225	  	
Power Solutions	  	 	30,184	  	  	 	31,949	  	  	 	25,253	  	
Other	  	 	653	  	  	 	675	  	  	 	661	  	
Total Revenue	  	$	205,298	  	  	$	218,084	  	  	$	177,002	  	
First Quarter and Recent Company Highlights
 
 	•	 	Foundry Revenue Grew 53% Year-Over-Year.	
 
 	•	 	Power Solutions Revenue Increased 20% Year-Over-Year.	
 
 	•	 	Corporate Credit and Debit Rating Upgraded by Standard and Poor’s.	
 
 	•	 	Repurchased 376,000 Shares in Q1 under MagnaChip’s 2011 Stock Repurchase Program.	
Business Outlook
For the second quarter of 2013, MagnaChip expects:
 
 	•	 	Revenue will be in the range of $210 million to $220 million.	
 
 	•	 	Gross margin will be 32.0% to 34.0% as a percent of revenue.	
Conference Call
MagnaChip will hold a conference call at 3 p.m. PDT today to discuss the first 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 31661611 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 3 p.m. PDT 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 31661611.

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 second 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	 	
 	  	March 31,
2013	 	 	December 31,
2012	 	 	March 31,
2012	 	
Net sales	  	$	205,298	  	 	$	218,084	  	 	$	177,002	  	
Cost of sales	  	 	139,555	  	 	 	143,796	  	 	 	127,087	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	65,743	  	 	 	74,288	  	 	 	49,915	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit %	  	 	32.0	% 	 	 	34.1	% 	 	 	28.2	% 	
 	 	 	 	
Selling, general and administrative expenses	  	 	19,791	  	 	 	19,281	  	 	 	18,209	  	
Research and development expenses	  	 	20,582	  	 	 	19,660	  	 	 	19,831	  	
Restructuring and impairment charges	  	 	2,446	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	22,924	  	 	 	35,347	  	 	 	11,875	  	
 	 	 	 	
Other income (expenses)	  	 	 	 	 	 	 	 	 	 	 	 	
Interest expense, net	  	 	(5,849	) 	 	 	(5,655	) 	 	 	(5,580	) 	
Foreign currency gain (loss), net	  	 	(22,558	) 	 	 	33,656	  	 	 	11,109	  	
Other	  	 	(260	) 	 	 	634	  	 	 	89	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	(28,667	) 	 	 	28,635	  	 	 	5,618	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income taxes	  	 	(5,743	) 	 	 	63,982	  	 	 	17,493	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense (benefit)	  	 	1,662	  	 	 	(61,304	) 	 	 	2,230	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	(7,405	) 	 	$	125,286	  	 	$	15,263	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) per common share :	  	 	 	 	 	 	 	 	 	 	 	 	
- Basic	  	$	(0.21	) 	 	$	3.50	  	 	$	0.41	  	
- Diluted	  	$	(0.21	) 	 	$	3.38	  	 	$	0.40	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of shares—Basic	  	 	35,539,413	  	 	 	35,845,367	  	 	 	37,524,127	  	
Weighted average number of shares—Diluted	  	 	35,539,413	  	 	 	37,074,657	  	 	 	38,298,336	  	

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	 	
 	  	March 31,
2013	 	 	December 31,
2012	 	 	March 31,
2012	 	
Net income (loss)	  	$	(7,405	) 	 	$	125,286	  	 	$	15,263	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	8,522	  	 	 	8,550	  	 	 	7,474	  	
Interest expense, net	  	 	5,849	  	 	 	5,655	  	 	 	5,580	  	
Income tax expense (benefit)	  	 	1,662	  	 	 	(61,304	) 	 	 	2,230	  	
Restructuring and impairment charges	  	 	2,446	  	 	 	—  	  	 	 	—  	  	
Stock-based compensation expense	  	 	420	  	 	 	546	  	 	 	458	  	
Foreign currency loss (gain), net	  	 	22,558	  	 	 	(33,656	) 	 	 	(11,109	) 	
Derivative valuation loss (gain), net	  	 	267	  	 	 	(634	) 	 	 	(85	) 	
Secondary offering expense	  	 	669	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	  	$	34,988	  	 	$	44,443	  	 	$	19,811	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	0.94	  	 	$	1.20	  	 	$	0.52	  	
Weighted average number of shares - Diluted	  	 	37,138,414	  	 	 	37,074,657	  	 	 	38,298,336	  	
 	 	 	 	
Net income (loss)	  	$	(7,405	) 	 	$	125,286	  	 	$	15,263	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	
Restructuring and impairment charges	  	 	2,446	  	 	 	—  	  	 	 	—  	  	
Stock-based compensation expense	  	 	420	  	 	 	546	  	 	 	458	  	
Amortization of intangibles	  	 	1,749	  	 	 	1,893	  	 	 	1,993	  	
Foreign currency loss (gain), net	  	 	22,558	  	 	 	(33,656	) 	 	 	(11,109	) 	
Derivative valuation loss (gain), net	  	 	267	  	 	 	(634	) 	 	 	(85	) 	
Secondary offering expense	  	 	669	  	 	 	—  	  	 	 	—  	  	
GAAP and cash tax expense difference	  	 	(998	) 	 	 	(64,749	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income	  	$	19,706	  	 	$	28,686	  	 	$	6,520	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
- Diluted	  	$	0.53	  	 	$	0.77	  	 	$	0.17	  	
Weighted average number of shares - Diluted	  	 	37,138,414	  	 	 	37,074,657	  	 	 	38,298,336	  	
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 (gain), 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 (gain), 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)

 	  	March 31,
2013	 	 	December 31,
2012	 	
Assets	  	 	 	 	 	 	 	 	
Current assets	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	182,987	  	 	$	182,238	  	
Restricted cash	  	 	37	  	 	 	133	  	
Accounts receivable, net	  	 	146,267	  	 	 	143,331	  	
Inventories, net	  	 	83,910	  	 	 	89,363	  	
Other receivables	  	 	3,662	  	 	 	1,429	  	
Prepaid expenses	  	 	10,401	  	 	 	7,884	  	
Current deferred income tax assets	  	 	22,870	  	 	 	22,768	  	
Other current assets	  	 	5,322	  	 	 	9,680	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	455,456	  	 	 	456,826	  	
 	  	 	 	 	 	 	 	 	
Property, plant and equipment, net	  	 	255,144	  	 	 	238,256	  	
Intangible assets, net	  	 	12,169	  	 	 	15,260	  	
Long-term prepaid expenses	  	 	16,101	  	 	 	18,048	  	
Deferred income tax assets	  	 	42,804	  	 	 	46,710	  	
Other non-current assets	  	 	15,359	  	 	 	14,866	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	797,033	  	 	$	789,966	  	
 	  	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	  	 	 	 	 	 	 	 	
Current liabilities	  	 	 	 	 	 	 	 	
Accounts payable	  	$	79,425	  	 	$	79,236	  	
Other accounts payable	  	 	29,975	  	 	 	15,600	  	
Accrued expenses	  	 	49,268	  	 	 	43,486	  	
Derivative liabilities	  	 	4,619	  	 	 	—  	  	
Other current liabilities	  	 	3,136	  	 	 	9,973	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	166,423	  	 	 	148,295	  	
 	  	 	 	 	 	 	 	 	
Long-term borrowings, net	  	 	201,727	  	 	 	201,653	  	
Accrued severance benefits, net	  	 	111,806	  	 	 	112,446	  	
Other non-current liabilities	  	 	13,897	  	 	 	17,263	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	493,853	  	 	 	479,657	  	
 	  	 	 	 	 	 	 	 	
Stockholders’ equity	  	 	 	 	 	 	 	 	
Common stock, $0.01 par value, 150,000,000 shares authorized, 39,747,933 shares issued and 35,408,032 shares outstanding at March 31, 2013 and 39,599,374 shares issued and 35,635,357 shares outstanding at December 31, 2012	  	 	397	  	 	 	396	  	
Additional paid-in capital	  	 	103,310	  	 	 	101,885	  	
Retained earnings	  	 	279,846	  	 	 	287,251	  	
Treasury stock, 4,339,901 shares at March 31, 2013 and 3,964,017 shares at December 31, 2012	  	 	(45,918	) 	 	 	(39,918	) 	
Accumulated other comprehensive loss	  	 	(34,455	) 	 	 	(39,305	) 	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	303,180	  	 	 	310,309	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	797,033	  	 	$	789,966	  	

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

 	  	Three Months Ended	 	
 	  	March 31,
2013	 	 	March 31,
2012	 	
Cash flow from operating activities	  	 	 	 	 	 	 	 	
Net income (loss)	  	$	(7,405	) 	 	$	15,263	  	
Adjustments to reconcile net income to net cash provided by operating activities	  	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	8,522	  	 	 	7,474	  	
Provision for severance benefits	  	 	4,229	  	 	 	4,703	  	
Amortization of debt issuance costs and original issue discount	  	 	283	  	 	 	242	  	
Loss (gain) on foreign currency translation, net	  	 	28,280	  	 	 	(12,824	) 	
Gain on disposal of property, plant and equipment, net	  	 	—  	  	 	 	(269	) 	
Loss on disposal of intangible assets, net	  	 	1	  	 	 	11	  	
Restructuring and impairment charges	  	 	618	  	 	 	—  	  	
Stock-based compensation	  	 	420	  	 	 	458	  	
Other	  	 	635	  	 	 	123	  	
Changes in operating assets and liabilities	  	 	 	 	 	 	 	 	
Accounts receivable	  	 	(6,409	) 	 	 	1,339	  	
Inventories	  	 	2,022	  	 	 	(2,860	) 	
Other receivables	  	 	(1,278	) 	 	 	(4,024	) 	
Other current assets	  	 	2,014	  	 	 	8,536	  	
Deferred tax assets	  	 	2,182	  	 	 	871	  	
Accounts payable	  	 	2,290	  	 	 	12,581	  	
Other accounts payable	  	 	9,734	  	 	 	(298	) 	
Accrued expenses	  	 	(1,125	) 	 	 	9,886	  	
Other current liabilities	  	 	(5,838	) 	 	 	2,225	  	
Payment of severance benefits	  	 	(627	) 	 	 	(2,323	) 	
Other	  	 	(1,004	) 	 	 	(1,261	) 	
 	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	37,544	  	 	 	39,853	  	
 	  	 	 	 	 	 	 	 	
Cash flow from investing activities	  	 	 	 	 	 	 	 	
Decrease in restricted cash	  	 	92	  	 	 	2,995	  	
Proceeds from disposal of plant, property and equipment	  	 	—  	  	 	 	273	  	
Purchase of plant, property and equipment	  	 	(32,927	) 	 	 	(24,758	) 	
Payment for intellectual property registration	  	 	(142	) 	 	 	(190	) 	
Payment for acquisition	  	 	—  	  	 	 	(8,642	) 	
Decrease in short-term financial instruments	  	 	—  	  	 	 	173	  	
Collection of guarantee deposits	  	 	—  	  	 	 	31	  	
Payment of guarantee deposits	  	 	(741	) 	 	 	(178	) 	
Other	  	 	8	  	 	 	(48	) 	
 	  	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(33,710	) 	 	 	(30,344	) 	
 	  	 	 	 	 	 	 	 	
Cash flow from financing activities	  	 	 	 	 	 	 	 	
Proceeds from issuance of common stock	  	 	1,006	  	 	 	108	  	
Repayment of obligations under capital lease	  	 	—  	  	 	 	(1,510	) 	
Acquisition of treasury stock	  	 	(6,000	) 	 	 	(11,935	) 	
 	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(4,994	) 	 	 	(13,337	) 	
 	  	 	 	 	 	 	 	 	
Effect of exchange rates on cash and cash equivalents	  	 	1,909	  	 	 	(1,660	) 	
 	  	 	 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents	  	 	749	  	 	 	(5,488	) 	
 	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	 	 	 	 	 	 	 	
Beginning of the period	  	 	182,238	  	 	 	162,111	  	
 	  	 	 	 	 	 	 	 	
End of the period	  	$	182,987	  	 	$	156,623