MALTA, N.Y., Nov. 07, 2023 (GLOBE NEWSWIRE) -- GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the third quarter ended September 30, 2023.
Key Third Quarter Financial Highlights
- Revenue of $1,852 million.
- Gross margin of 28.6% and adjusted gross margin(1) of 29.2%.
- Operating margin of 14.1% and adjusted operating margin(1) of 17.4%.
- Net income of $249 million and adjusted net income(1) of $308 million.
- Adjusted EBITDA(1) of $667 million.
- Cash, cash equivalents and marketable securities of $3.4 billion.
"In the third quarter, GF's dedicated teams across the world delivered financial results at the upper end of the guidance ranges we provided in our August earnings release," said Dr. Thomas Caulfield, president and CEO of GF. "Although the global economic and geopolitical landscape remains uncertain, we are collaborating closely with our customers to support their efforts to reduce inventory levels, while growing long-term partnerships to drive foundry innovation and differentiation across essential end-markets."
Recent Business Highlights
- The U.S. Department of Defense awarded GF a new 10-year contract for a supply of securely manufactured, U.S.-made semiconductors for use across a wide range of critical aerospace and defense applications.
- GF expanded its world-class global operations with official openings at its fabrication plant in Singapore and new operations support facility in Penang, Malaysia, creating a total of 1,300 high-value jobs.
- GF announced its most advanced RF technology, 9SW RFSOI, that will offer significant improvements in performance and integration for 5G and wireless communication applications.
(1)Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted EBITDA and related margins are Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" 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 | |||||||||||||||||||||
| Q3'23 | Q2'23 | Q3'22 | Q3'23 vs Q3'22 | Q3'23 vs Q2'23 | ||||||||||||||||||
| Net revenue | $ | 1,852 | $ | 1,845 | $ | 2,074 | $ | (222 | ) | (11) % | $ | 7 | — % | |||||||||
| Gross profit | 529 | 532 | 610 | $ | (81 | ) | (13) % | $ | (3 | ) | (1) % | |||||||||||
| Gross margin | 28.6 | % | 28.8 | % | 29.4 | % | (80)bps | (20)bps | ||||||||||||||
| Adjusted gross profit (1) | $ | 541 | $ | 546 | $ | 621 | $ | (80 | ) | (13) % | $ | (5 | ) | (1) % | ||||||||
| Adjusted gross margin (1) | 29.2 | % | 29.6 | % | 29.9 | % | (70)bps | (40)bps | ||||||||||||||
| Operating profit | $ | 261 | $ | 275 | $ | 357 | $ | (96 | ) | (27) % | $ | (14 | ) | (5) % | ||||||||
| Operating margin | 14.1 | % | 14.9 | % | 17.2 | % | (310)bps | (80)bps | ||||||||||||||
| Adjusted operating profit (1) | $ | 322 | $ | 338 | $ | 389 | $ | (67 | ) | (17) % | $ | (16 | ) | (5) % | ||||||||
| Adjusted operating margin (1) | 17.4 | % | 18.3 | % | 18.8 | % | (140)bps | (90)bps | ||||||||||||||
| Net income | $ | 249 | $ | 237 | $ | 336 | $ | (87 | ) | (26) % | $ | 12 | 5 % | |||||||||
| Net income margin | 13.4 | % | 12.8 | % | 16.2 | % | (280)bps | +60bps | ||||||||||||||
| Adjusted net income (1)(2) | $ | 308 | $ | 297 | $ | 368 | $ | (60 | ) | (16) % | $ | 11 | 4 % | |||||||||
| Adjusted net income margin (1) | 16.6 | % | 16.1 | % | 17.7 | % | (110)bps | +50bps | ||||||||||||||
| Diluted earnings per share ("EPS") | $ | 0.45 | $ | 0.43 | $ | 0.61 | $ | (0.16 | ) | (26) % | $ | 0.02 | 5 % | |||||||||
| Adjusted diluted earnings per share (1) | $ | 0.55 | $ | 0.53 | $ | 0.67 | $ | (0.12 | ) | (18) % | $ | 0.02 | 4 % | |||||||||
| Adjusted EBITDA (1)(3) | $ | 667 | $ | 668 | $ | 793 | $ | (126 | ) | (16) % | $ | (1 | ) | — % | ||||||||
| Adjusted EBITDA margin (1) | 36.0 | % | 36.2 | % | 38.2 | % | (220)bps | (20)bps | ||||||||||||||
| Cash from operations | $ | 416 | $ | 546 | $ | 679 | $ | (263 | ) | (39) % | $ | (130 | ) | (24) % | ||||||||
| Wafer shipments (300mm equivalent) (in thousands) | 575 | 573 | 637 | (62 | ) | (10) % | 2 | — % | ||||||||||||||
| (1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, and related margins are all Non-IFRS measures. See "Unaudited Reconciliation of IFRS to Non-IFRS" section for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for a discussion of why we believe these Non-IFRS metrics are useful. | ||||||||||||||||||||||
| (2) Beginning in Q4 2022, the Company revised its definition of adjusted net income to include an adjustment for restructuring charges and the associated tax impact. The change was made due to a restructuring undertaken in Q4 2022. The Company believes the revised definition provides management and investors with more useful information to evaluate the operations of our business. Adjusted net income is now defined as net income adjusted for share-based compensation expense, restructuring charges and the associated tax impact. | ||||||||||||||||||||||
| (3) Beginning in Q3 2022, the Company revised its definition of adjusted EBITDA to include an adjustment for finance income. The change was made due to the Company making an investment during Q2 2022 of approximately $1.0 billion in marketable securities. The Company believes the revised definition provides management and investors more useful information to evaluate the operations of our business. Adjusted EBITDA is now defined as net income, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement. | ||||||||||||||||||||||
