MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS)
(In thousands of U.S. dollars)
(Unaudited)

Three Months Ended

Year Ended

December 31,
2022

September 30,
2022

December 31,
2021

December 31,
2022

December 31,
2021

Operating income (loss)

$

(10,117)

$

(10,008)

$

63,870

$

(5,244)

$

83,407

Adjustments:

Equity-based compensation expense

1,550

861

1,648

6,037

7,704

Inventory reserve related to Huawei impact of downstream trade restrictions

—

—

(379)

—

(1,460)

Merger-related income, net

—

—

(49,369)

—

(35,527)

Other charges, net

—

2,501

(1,349)

3,298

2,011

Adjusted Operating Income (Loss)

$

(8,567)

$

(6,646)

$

14,421

$

4,091

$

56,135