Non-GAAP gross margin for the fourth quarter of 2018 is expected to be 40.0% (down 4.4 points quarter-on-quarter due to low operation with adjustments in production to control inventories to an optimal level, and down 7.9 points year-on-year mainly due to a sales decline and low operation). For the full year ending December 31, 2018, it is expected to be 44.5% (down 2.3 points from year-ago quarter).
Non-GAAP operating margin is expected to be 7.3% (decrease by 6.1 points quarter-on-quarter, down 8.9 points from year-ago quarter due to the decrease in gross profits). For the cumulative twelve months ending December 31, 2018, operating margin is expected to be 13.6% (down 2.8 points from year-ago quarter).
The forecasts for the fourth quarter of the 2018 are calculated at the rate of 112 yen per USD and 129 yen per Euro.
Capital expenditures are based on the amount of investment decisions made for property, plant and equipment (manufacturing equipment) and intangible assets during the twelve months ending December 31, 2018, and they are expected to be 2.3% of net revenue.
References
Refer to Renesas Electronics’ earnings report “Renesas Electronics Reports Financial Results for the Third Quarter Ended September 30, 2018” for the consolidated balance sheets, the consolidated statements of income and the consolidated statements of cash flows.
Refer to the separate sheet for Japan GAAP – non-GAAP reconciliation.
Forward-Looking Statements
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.
About Renesas Electronics Corporation
Renesas Electronics Corporation ( TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live—securely and safely. A global leader in microcontrollers, analog, power, SoC products and integrated platforms, Renesas provides the expertise, quality, and comprehensive solutions for a broad range of Automotive, Industrial, Home Electronics, Office Automation and Information Communication Technology applications to help shape a limitless future. Learn more at renesas.com.
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