LX Semicon (108320) Q3 2024 earnings summary

Executive summary

• 3Q24 revenue reached KRW 4,199 hundred million, up 1.7% from 2Q24 but down 13.4% year-over-year.

• Gross profit for 3Q24 was KRW 1,393 hundred million, with a gross margin of 33.2%.

• Operating profit in 3Q24 was KRW 343 hundred million, with an operating margin of 8.2%.

• Net profit for 3Q24 was KRW 254 hundred million, a significant decrease from 3Q23.

Financial highlights

• Gross margin declined to 33.2% in 3Q24 from 33.3% in 2Q24 and 32.5% in 3Q23.

• Operating margin dropped to 8.2% in 3Q24 from 10.1% in 2Q24 and 13.1% in 3Q23.

• EBITDA for 3Q24 was KRW 429 hundred million, with an EBITDA margin of 10.2%.

• SG&A as a percentage of revenue was 25.0% in 3Q24, up from 22.4% in 2Q24.

• Cash and cash equivalents stood at KRW 4,354 hundred million at the end of 3Q24.

Segment performance

• TV segment contributed 31% of sales in 3Q24, up from 29% in 2Q24.

• IT segment accounted for 30% of sales, up from 24% in 2Q24.

• Mobile segment share decreased to 33% in 3Q24 from 41% in 2Q24.

• Large DDI products made up 55% of product mix in 3Q24, up from 48% in 2Q24.