MagnaChip Semiconductor Corporation (NYSE:MX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 05:00 pm ET

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MagnaChip Semiconductor Corporation (NYSE:MX) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q2 2020 MagnaChip Semiconductor Corporation Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ms. So-Yeon Jeong, Head of IR. Please go ahead.

Executive
So-Yeon Jeong

Thank you. Hello, everyone, and thank you for joining us to discuss MagnaChip's financial results for the second quarter ended June 30, 2020. The second quarter earnings release that was filed today after the stock market closed can be found on the Company's Investor Relations website. A telephone replay of today's call will be available shortly after the completion of the call, and the webcast will be archived on our website for one year. Access information is provided in the earnings press release.

Joining me today are YJ Kim, MagnaChip's Chief Executive Officer; and Young Woo, our Chief Financial Officer. YJ will discuss the Company's recent operating performance and business overview, and Young will review financial results for the quarter and provide guidance for the third quarter. There will be a Q&A session following the prepared remarks.

During the course of this conference call, we may make forward-looking statements about MagnaChip's business outlook and expectations. Our forward-looking statements and all other statements that are historical facts reflect our beliefs and predictions as of today and, therefore, are subject to risks and uncertainties as described in the safe harbor discussion found in -- on our SEC filings.

During the call, we also will discuss non-GAAP financial measures. The non-GAAP measures are not prepared in accordance with generally accepted accounting principles but are intended to illustrate an alternative measure of MagnaChip's operating performance that may be useful. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in our second quarter earnings release available on our website under the Investor Relations at www.magnachip.com.

Now I'll turn the call over to YJ Kim. YJ?

Executive
Young-Joon Kim

Thank you. Hello, everyone. Thank you for joining our call today. First of all, I'd like to welcome both So-Yeon Jeong, our Head of IR; and Dr. Young Woo, our CFO, to their first earnings call at MagnaChip. Both will play important roles as MagnaChip opens a new chapter as a pure-play standard products company.

I also want to acknowledge changes in our Board of Directors. Semiconductor veteran Mr. Camillo Martino was named Chairman in June and Ms. Liz Chung of Microsoft Korea joined our newly expanded Board in July.

During the second quarter, our team executed well and delivered excellent results in keeping with our commitment to safety of our employees and continuity of services to our customers. We demonstrated our ability to be resilient to the impact of the COVID-19. We continue to take further steps to mitigate potential risks related to the health and safety of our employees and to the supply chain management.

Key non-GAAP financial metrics exceeded our expectations. Revenue for the combined business came in above the high end of the guidance range