Non-GAAP R&D expenses in the full year were 125.9 billion yen, compared to 105.3 billion yen year-on-year. Full year R&D ratio to net sales was 16.1%.
Non-GAAP SG&A expenses in the full year were 111.3 billion yen, compared to 95.4 billion yen year-on-year. Full year SG&A ratio to net sales was 14.2%.
With regard to OPEX (Operating expenses such as R&D and SG&A), while R&D investments were made to attain future growth, we continued to control SG&A discipline.
Non-GAAP operating income was 128.1 billion yen, equivalent to 16.4% of operating margin in the full year. On a year-on-year basis, non-GAAP operating income improved by 78.0 billion yen equivalent to 12.2% of operating margin mainly due to sales increases and continued OPEX discipline.
Non-GAAP net income attributable to shareholders of parent company in the full year was 123.9 billion yen. Non-GAAP net income per share for the full year was 74.3 yen.
Net cash provided by operating activities in the full year was 164.2 billion yen and net cash used in investing activities was 432.6 billion yen, mainly due to expenditures in the amount of 311.4 billion yen. These resulted in negative free cash flows of 268.4 billion yen.
Capital expenditures for property, plant, equipment (manufacturing equipment) and intangible assets, were 78.5 billion yen in the full year. These expenditures for the acquisition of Intersil are based on the amount of investment decisions made and does not refer to the cash outlays in the cash flow statement.
Outlook for First Quarter 2018
In the first quarter of the 2018, Renesas expects semiconductor sales of 178.7 billion yen, up 3.5% year-on-year. Non-GAAP gross margin is expected to decrease by 4.1 points quarter-on-quarter, mainly due to a decrease in sales, and 1.6 points down from year-ago quarter to 43.9%, mainly due to an increase in depreciation cost and non-GAAP operating margin is expected to decrease by 4.9 points quarter-on-quarter, down 5.1 points from year-ago quarter to 11.3%. The forecasts for the first quarter of the 2018 are calculated at the rate of 107 yen per USD and 132 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 first quarter, and are expected to be 10.4% of net revenue.
References
Refer to Renesas Electronics’ earnings report “Renesas Electronics Reports Financial Results for the Year Ended December 31, 2017” for the consolidated balance sheets, the consolidated statements of income and the consolidated statements of cash flows.
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 and SoC products, 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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