MALTA, N.Y., May 09, 2023 (GLOBE NEWSWIRE) -- GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the first quarter ended March 31, 2023.
Key First Quarter Financial Highlights
- Revenue of $1,841 million.
- Gross margin of 28.0% and adjusted gross margin(1) of 28.5%.
- Operating margin of 15.8% and adjusted operating margin(1) of 17.7%.
- Net income of $254 million and adjusted net income(1) of $290 million.
- Adjusted EBITDA(1) of $655 million.
- Cash, cash equivalents and marketable securities of $3,232 million.
"In the first quarter, amidst a continued uncertain macroeconomic and cyclical backdrop, GF delivered solid results that are consistent with the guidance we provided in our February earnings release," said Dr. Thomas Caulfield, president and CEO of GF. "Despite a challenging business environment, GF’s gross margins for the quarter have increased year-over-year due to our continued disciplined focus on profitability by our global team who effectively manage costs, while driving a richer mix of business to our customers. As we look to the remainder of 2023, we will continue to support our customers’ needs, by investing in capacity to strengthen our differentiated solutions, increase our focus on growing end markets and drive value for our stakeholders."
Recent Business Highlights
- GF announced a Strategic University Partnership agreement with Georgia Tech. This agreement spans a broad range of research activities, including leadership capabilities in advanced packaging, silicon photonics and workforce development initiatives.
- GF and Amkor Technology, Inc. formed a strategic partnership to establish the first at-scale back-end facility in Europe. GF transferred its 300mm Bump and Sort lines from its Dresden site in Germany to Amkor’s operations in Porto, Portugal.
- The European Commission approved the award of direct grant funding to GF and STMicroelectronics to support the construction and operation of a new 300mm manufacturing facility in Crolles, France. The funds are being made available under the European Chips Act and the project will enable the development of a large-scale manufacturing site in Europe for high performance chips, to address current and future key European markets from automotive to industrial, 5G/6G roll-out, security, defense, and space industries.
(1) Adjusted gross profit, adjusted operating income, adjusted net income, adjusted EBITDA and related margins are Non-IFRS measures. See “Adjusted Financial Measures (Non-IFRS)” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and “Non-IFRS Financial Measures” for a discussion of why we believe these Non-IFRS measures are useful.
Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments)
| Year-over-year | Sequential | |||||||||||||||||||||||
| Q1'23 | Q4'22 | Q1'22 | Q1'23 vs Q1'22 | Q1'23 vs Q4'22 | ||||||||||||||||||||
| Net revenue | $ | 1,841 | $ | 2,101 | $ | 1,940 | $ | (99 | ) | (5 | )% | $ | (260 | ) | (12 | )% | ||||||||
| Gross profit | 515 | 622 | 469 | $ | 46 | 10 | % | $ | (107 | ) | (17 | )% | ||||||||||||
| Gross margin | 28.0 | % | 29.6 | % | 24.2 | % | +380bps | (160)bps | ||||||||||||||||
| Adjusted gross profit (1) | $ | 525 | $ | 633 | $ | 490 | $ | 35 | 7 | % | $ | (108 | ) | (17 | )% | |||||||||
| Adjusted gross margin (1) | 28.5 | % | 30.1 | % | 25.3 | % | +320bps | (160)bps | ||||||||||||||||
| Operating profit | $ | 290 | $ | 288 | $ | 225 | $ | 65 | 29 | % | $ | 2 | 1 | % | ||||||||||
| Operating margin | 15.8 | % | 13.7 | % | 11.6 | % | +420bps | +210bps | ||||||||||||||||
| Adjusted operating profit (1) | $ | 326 | $ | 425 | $ | 279 | $ | 47 | 17 | % | $ | (99 | ) | (23 | )% | |||||||||
| Adjusted operating margin (1) | 17.7 | % | 20.2 | % | 14.4 | % | +330bps | (250)bps | ||||||||||||||||
| Net income (2) | $ | 254 | $ | 668 | $ | 178 | $ | 76 | 43 | % | $ | (414 | ) | (62 | )% | |||||||||
| Net income margin | 13.8 | % | 31.8 | % | 9.2 | % | +460bps | (1,800)bps | ||||||||||||||||
| Adjusted net income (1)(2)(3) | $ | 290 | $ | 800 | $ | 232 | $ | 58 | 25 | % | $ | (510 | ) | (64 | )% | |||||||||
| Adjusted net income margin (1) | 15.8 | % | 38.1 | % | 12.0 | % | +380bps | (2,230)bps | ||||||||||||||||
| Diluted earnings per share ("EPS") | $ | 0.46 | $ | 1.21 | $ | 0.33 | $ | 0.13 | 39 | % | $ | (0.75 | ) | (62 | )% | |||||||||
| Adjusted diluted earnings per share (1) | $ | 0.52 | $ | 1.44 | $ | 0.42 | $ | 0.10 | 24 | % | $ | (0.92 | ) | (64 | )% | |||||||||
| Adjusted EBITDA (1)(4) | $ | 655 | $ | 821 | $ | 698 | $ | (43 | ) | (6 | )% | $ | (166 | ) | (20 | )% | ||||||||
| Adjusted EBITDA margin (1) | 35.6 | % | 39.1 | % | 36.0 | % | (40)bps | (350)bps | ||||||||||||||||
| Cash from operations | $ | 479 | $ | 491 | $ | 845 | $ | (366 | ) | (43 | $ | (12 | ) | (2 | )% | |||||||||
| Wafer shipments (300mm equivalent) (in thousands) | 511 | 580 | 625 | (114 | ) | (18 | )% | (69 | ) | (12 | )% | |||||||||||||
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