Due to Weakening Market and Channel Inventory Adjustments, First Quarter Revenue Decreased Year-on-Year
Second Quarter Revenue to See Significant Increase from IDT Integration and Seasonality
Renesas to Pursue Continued Thorough Cost and Cash Management in Preparation Against Continuing Weak End Demands
- Q1 2019: Non-GAAP(1) revenue from semiconductors of 146.7 billion yen, down 19.4% year-on-year. Non-GAAP gross margin of 39.3%, down 8.2 points year-on-year and Non-GAAP operating profits (margin) of 7.2 billion yen (4.8%), down 22.9 billion yen (11.4 points) year-on-year.
- Outlook for Q2 2019: Non-GAAP revenue from semiconductors within the range of 181.5 billion and 189.5 billion yen with the IDT integration(2). Non-GAAP gross margin of 43.5%, based on the midpoint of forecasted revenue.
TOKYO — (BUSINESS WIRE) — May 13, 2019 — Renesas Electronics Corporation (TSE:6723, “Renesas”), a premier supplier of advanced semiconductor solutions, today reported the financial results for the first quarter ended March 31, 2019 (January 1, 2019 to March 31, 2019).
“In our first quarter, our non-GAAP revenue from semiconductors decreased by 19.4% year-on-year, and the non-GAAP gross margin decreased by 8.2 points on a year-on-year basis. Impacts from the weak market conditions as well as our continued efforts to achieve optimal inventory levels at our channels led to these decreases,” said Bunsei Kure, Representative Director, President and CEO, Renesas Electronics Corporation. “For the second quarter ending June 30, 2019, although revenue from semiconductors is expected to increase significantly on a sequential basis from to the IDT integration and seasonality, we expect sales to decrease in light of the continued weak markets surrounding industrial applications on a year-on-year basis. We also expect a year-on-year decrease in our Non-GAAP gross margin. With uncertainties for sales in the short term, we will thoroughly control cash and improve operational efficiency and reduce costs through selective concentration of R&D.”
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Quarterly Financial Summary (Billion yen) |
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| Non-GAAP Basis |
Q1 FY2019
(Jan-Mar 2019) |
Q4 FY2018 (3)
(Oct-Dec 2018) |
Q1 FY2018
(Jan-Mar 2018) |
QoQ | YoY | ||||||||||
| Revenue | 150.3 | 187.7 | 185.6 | -20.0% | -19.0% | ||||||||||
| Revenue from Semi. | 146.7 | 183.7 | 182.0 | -20.1% | -19.4% | ||||||||||
| Gross Margin | 39.3% | 40.5% | 47.5% | -1.2pts | -8.2pts | ||||||||||
| Operating Income | 7.2 | 19.4 | 30.1 | -12.3 | -22.9 | ||||||||||
| Operating Margin | 4.8% | 10.4% | 16.2% | -5.6pts | -11.4pts | ||||||||||
| EBITDA (3) | 32.3 | 43.4 | 53.7 | -11.0 | -21.4 | ||||||||||
|
GAAP Basis
(IFRS) |
Q1 FY2019
(Jan-Mar 2019) |
Q4 FY2018
(Oct-Dec 2018) |
Q1 FY2018
(Jan-Mar 2018) |
QoQ | YoY | ||||||||||
| Revenue | 150.3 | 187.7 | 185.6 | -20.0% | -19.0% | ||||||||||
| Revenue from Semi. | 146.7 | 183.7 | 182.0 | -20.1% | -19.4% | ||||||||||
| Gross Margin | 38.1% | 40.5% | 46.7% | -2.4pts | -8.7pts | ||||||||||
| Operating Income | -1.3 | -1.1 | 23.4 | -0.2 | -24.6 | ||||||||||
| Operating Margin | -0.8% | -0.6% | 12.6% | -0.3pt | -13.4pts | ||||||||||
| EBITDA (4) | 28.0 | 27.1 | 51.5 | +0.9 | -23.5 | ||||||||||
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(1) |
Non-GAAP Basis: Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP figures following a certain set of rules. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results, and therefore results are provided in non-GAAP base. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and costs relating to acquisitions, stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable. For a detailed reconciliation of the GAAP / non-GAAP items, please see page 5. |
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(2) |
IDT integration: The acquisition of Integrated Device Technology, Inc. (IDT) was completed as of March 30, 2019 and IDT became a wholly-owned subsidiary of Renesas. |
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(3) |
As of the first quarter ended March 31, 2019, there has been a changed to the Group’s auditor, and therefore quarterly figures of the year ended December 31, 2018, provided under IFRS are not reviewed by the previous auditor. However, for each of the quarterly figures of the year ended December 31, 2018 provided under the generally accepted accounting principal in Japan (J-GAAP) have been reviewed by the Group’s previous auditor. |
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(4) |
EBITDA: Sum of operating income, depreciation and amortization |
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