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MagnaChip sees Q1 revenue $55M-$59M ,consensus $63.63M
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MagnaChip sees Q1 revenue $55M-$59M ,consensus $63.63M

Sees Q1 gross profit margin 21%-23%. The company’s near-term outlook is being challenged by previous OLED wafer allocation constraints that impacted 2nd half 2022 design-in projects and ongoing inventory correction in smartphones and other consumer end markets driven by weakening consumer demand. Q1 is also typically the company’s seasonally slowest quarter following holiday shipments and is impacted by slower activity around the Chinese New Year. In response to the industry-wide slowdown and inventory correction, the Company has reduced production at its Fab 3. As a result, the company expects Q1 gross profit margin will be further impacted by lower utilization as well as higher manufacturing input costs such as electricity and wages. The company currently expects gross profit margin to recover as volume and utilization improves in the 2nd half of 2023.

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