MALTA, N.Y., Nov. 05, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the third quarter ended September 30, 2024.
Key Third Quarter Financial Highlights
- Revenue of $1.739 billion
- Gross margin of 23.8% and Non-IFRS gross margin(1) of 24.7%
- Operating margin of 10.6% and Non-IFRS operating margin(1) of 13.6%
- Net income of $178 million and Non-IFRS net income(1) of $229 million
- Non-IFRS adjusted EBITDA(1) of $627 million
- Cash, cash equivalents and marketable securities of $4.3 billion
- Year to date net cash provided by operating activities of $1,265 million and Non-IFRS adjusted free cash flow(1) of $779 million
"In the third quarter, the GF team continued to execute next generation opportunities with our customers, by securing key design wins across our growing portfolio of essential chip technologies,” said Dr. Thomas Caulfield, President and CEO of GF. "We delivered consistent financial results at the upper end of the guidance ranges we provided in our August earnings release, and as we continue to navigate the ongoing uncertainties facing our industry, we remain on-track to deliver approximately a threefold increase in our year-over-year Non-IFRS adjusted free cash flow generation by the end of 2024."
Recent Business Highlights
- Building on the longtime relationship between GF and NXP Semiconductors (NXP), the companies announced a new collaboration leveraging GF's 22FDX® process technology platform and global manufacturing footprint to optimize the power, performance and time-to-market of NXP's solutions across a range of automotive, IoT and smart mobile devices. GF's 22FDX chips will be manufactured in Dresden, Germany and Malta, New York, providing NXP geographically diverse supply for their customers.
- Over one thousand customers and partners attended GF’s annual Technology Summit held around the world in Santa Clara, California, Munich, Germany and Shanghai, China, to build deeper relationships and learn how GF's essential chips play a critical role in realizing “AI Everywhere.”
- GF entered into a strategic technology development and licensing agreement with Finwave Semiconductor, Inc (Finwave), a leading innovator in GaN technology. The collaboration will optimize and scale Finwave's cutting-edge GaN-on-Si technology to volume production at GF's 200mm fab in Burlington, Vermont.
(1) Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS adjusted EBITDA, Non-IFRS adjusted free cash flow and any related margins are all Non-IFRS measures. See “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.
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Summary Quarterly Results
(Unaudited, in millions, except per share amounts and wafer shipments) | |||||||||||||||||||||||
| Year-over-year | Sequential | ||||||||||||||||||||||
| Q3'24 | Q2'24 | Q3'23 | Q3'24 vs Q3'23 | Q3'24 vs Q2'24 | |||||||||||||||||||
| Net revenue | $ | 1,739 | $ | 1,632 | $ | 1,852 | $ | (113 | ) | (6) % | $ | 107 | 7 | % | |||||||||
| Gross profit | $ | 414 | $ | 395 | $ | 529 | $ | (115 | ) | (22) % | $ | 19 | 5 | % | |||||||||
| Gross margin | 23.8 | % | 24.2 | % | 28.6 | % | (480)bps | (40)bps | |||||||||||||||
| Non-IFRS gross profit (1) | $ | 429 | $ | 411 | $ | 541 | $ | (112 | ) | (21) % | $ | 18 | 4 | % | |||||||||
| Non-IFRS gross margin (1) | 24.7 | % | 25.2 | % | 29.2 | % | (450)bps | (50)bps | |||||||||||||||
| Operating profit | $ | 185 | $ | 155 | $ | 261 | $ | (76 | ) | (29) % | $ | 30 | 19 | % | |||||||||
| Operating margin | 10.6 | % | 9.5 | % | 14.1 | % | (350)bps | +110bps | |||||||||||||||
| Non-IFRS operating profit (1) | $ | 236 | $ | 212 | $ | 322 | $ | (86 | ) | (27) % | $ | 24 | 11 | % | |||||||||
| Non-IFRS operating margin (1) | 13.6 | % | 13.0 | % | 17.4 | % | (380)bps | +60bps | |||||||||||||||
| Net income | $ | 178 | $ | 155 | $ | 249 | $ | (71 | ) | (29) % | $ | 23 | 15 | % | |||||||||
| Net income margin | 10.2 | % | 9.5 | % | 13.4 | % | (320)bps | +70bps | |||||||||||||||
| Non-IFRS net income (1) | $ | 229 | $ | 211 | $ | 308 | $ | (79 | ) | (26) % | $ | 18 | 9 | % | |||||||||
| Non-IFRS net income margin (1) | 13.2 | % | 12.9 | % | 16.6 | % | (340)bps | +30bps | |||||||||||||||
| Diluted earnings per share ("EPS") | $ | 0.32 | $ | 0.28 | $ | 0.45 | $ | (0.13 | ) | (29) % | $ | 0.04 | 14 | % | |||||||||
| Non-IFRS diluted EPS (1) | $ | 0.41 | $ | 0.38 | $ | 0.55 | $ | (0.14 | ) | (25) % | $ | 0.03 | 8 | % | |||||||||
| Non-IFRS adjusted EBITDA (1) | $ | 627 | $ | 610 | $ | 667 | $ | (40 | ) | (6) % | $ | 17 | 3 | % | |||||||||
| Non-IFRS adjusted EBITDA margin (1) | 36.1 | % | 37.4 | % | 36.0 | % | +10bps | (130)bps | |||||||||||||||
| Cash from operating activities | $ | 375 | $ | 402 | $ | 416 | $ | (41 | ) | (10) % | $ | (27 | ) | (7) % | |||||||||
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Wafer shipments (300mm equivalent)
(in thousands) | 549 | 517 | 575 | (26 | ) | (5) % | 32 | 6 | % | ||||||||||||||
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