MagnaChip Semiconductor Corporation (NYSE:MX) rose Wednesday after the company raised its second-quarter sales guidance above analyst estimates. The company also raised its second-quarter gross profit margin guidance from 16-18% to at least 21%.
The company, headquartered in Seoul and in San Jose, came out Tuesday with news that Revenue in the quarter ending June 30 is now expected to be at least $194 million, and gross profit margin is expected to be at least 21%.
This updated guidance for the second quarter compares to the Company's previous guidance of revenue to be in the range of $173-181 million and gross profit margin to be in the range of 16-18%.
The previous revenue guidance provided on April 30 in conjunction with the public release of the financial results for the first quarter of 2019 reflected an expectation at that time that revenue from MagnaChip's OLED Display drivers would increase by approximately 30% and that revenue from the Foundry business would be flat, both as compared to the first quarter of 2019.
However, revenue for both OLED Display drivers and 8" Foundry services is now expected to substantially exceed the Company's previously anticipated financial results for the second quarter. Revenue from Power standard products is also expected to be stronger than previously anticipated.
MagnaChip, according to the company’s website, is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications.
Shares climbed $1.41, or 16%, to $10.23 early Wednesday.
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