magnachip semiconduct (MX) Key Developments
MagnaChip Semiconductor Corporation announced delayed 10-Q filing
May 12 15
On 05/12/2015, MagnaChip Semiconductor Corporation announced that they will be unable to file their next 10-Q by the deadline required by the SEC.
MagnaChip Semiconductor Corporation Announces Executive Changes
May 4 15
MagnaChip Semiconductor Corporation announced that Tae Young Hwang has resigned as the company's Chief Operating Officer and President and from all other officer and director positions with the company and its subsidiaries. Mr. Hwang's resignation was effective as of April 30, 2015. The company also announced that Young-Joon Kim, the company's Interim Chief Executive Officer and General Manager, Display Solutions Division, will assume Mr. Hwang's duties as the company's principal operating officer. In addition, the company announced that Seung-Hoon Lee, the company's Senior Vice President of Manufacturing Operations, will oversee the company's semiconductor manufacturing services operations on a day-to-day basis and will report to Mr. Kim. Mr. Lee, who has 28 years of manufacturing operations experience in the semiconductor industry, is the current head of the company's fabrication facility in Gumi, South Korea, and previously served as the head of the company's fabrication facility in Cheongju, South Korea.
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against MagnaChip Semiconductor Corporation
Apr 21 15
Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of California on behalf of purchasers of MagnaChip Semiconductor Corporation publicly traded securities during the period between February 1, 2012 and February 12, 2015, including purchasers of MagnaChip common stock pursuant and/or traceable to MagnaChip’s February 6, 2013 follow-on public stock offering. The complaint charges MagnaChip and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MagnaChip is a South Korea-based designer and manufacturer of analog and mixed-signal semiconductor products mainly for high-volume consumer, computer and communication applications, which includes smart phones. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business, prospects, operations and financial results, and failed to disclose the inadequacy of its internal controls and procedures over financial reporting. Specifically, the Company failed to disclose that it was improperly recognizing revenues, resulting in its prior financial statements overstating its revenues and earnings in 2011, 2012, and the first nine months of 2013. As a result of defendants’ false statements, MagnaChip securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $23.57 per share on October 21, 2013, and MagnaChip’s controlling shareholder, Avenue Capital Management II, L.P., was able to sell more than 16.1 million MagnaChip shares in secondary stock offerings and on the open market during the Class Period at fraud-inflated prices, receiving $232.675 million in gross proceeds. Following a January 2014 disclosure that it could not timely file its annual financial report for fiscal 2013, on March 11, 2014, MagnaChip announced that it would be restating its 2011, 2012 and 2013 financial results after concluding that it had “incorrectly recognized revenue on certain transactions,” stating it “expected] that the primary impact of the correction of prior revenue recognition errors would be to recognize revenue on certain transactions in the periods in which the distributor ship[ped] the products to the end customer rather than the periods in which the products were shipped to distributors.” Then on February 12, 2015, after the market closed, MagnaChip filed its Annual Report on Form 10-K with the SEC for the fiscal year ended December 31, 2013, restating its financial results for fiscal years 2011, 2012, and the first three quarters of 2013, resulting in a total reversal of earnings by $142 million, wiping out 55% of its reported profits for those periods. The complaint alleges that as a result of this news, MagnaChip’s shares plummeted $7.50 per share to close at $7.52 per share on February 13, 2015, a one-day decline of nearly 50%. Plaintiff seeks to recover damages on behalf of all purchasers of MagnaChip publicly traded securities during the class period.
MagnaChip Semiconductor Corporation Receives Non-Compliance Notice From NYSE
Apr 6 15
MagnaChip Semiconductor Corporation announced that, as expected, on April 1, 2015, the company received a letter from the New York Stock Exchange (NYSE) indicating that the company is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria outlined in Section 802.01E of the NYSE Listed Company Manual as a result of its failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (2014 Form 10-K). As previously disclosed by the company in its Form 12b-25 filed with the Securities and Exchange Commission (SEC) on March 17, 2015, because of the time, effort and resources required to complete the company’s 2013 Annual Report on Form 10-K, as well as the company’s 2014 Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2014, June 30, 2014 and September 30, 2014, each of which was filed with the SEC on February 12, 2015, the company was substantially delayed in initiating its 2014 fiscal year end close and audit. The company is currently in the process of completing the preparation of its financial statements for its fiscal year ended December 31, 2014 and its 2014 Form 10-K, and currently anticipates filing its 2014 Form 10-K in the second quarter of 2015; however, the company cannot provide any assurances at this time that it will be able to meet its expected timing. The NYSE has informed the company that, under the NYSE rules, the company will have six months (until September 30, 2015) to file its 2014 Form 10-K with the SEC. If the company fails to file its 2014 Form 10-K on or before such date, then the NYSE may, in its sole discretion, grant an additional extension of up to six months depending on the specific circumstances. The letter from the NYSE also notes that the NYSE may commence delisting proceedings at any time during the extension period if the circumstances warrant.
MagnaChip Semiconductor Corporation announced delayed annual 10-K filing
Mar 17 15
On 03/17/2015, MagnaChip Semiconductor Corporation announced that they will be unable to file their next 10-K by the deadline required by the SEC.