GlobalFoundries Reports Second Quarter 2023 Financial Results
| | |
Three Months Ended |
|
(in millions USD) | |
June 30, 2023 | |
March 31, 2023 | |
June 30, 2022 |
| | | | | | | |
|
Gross profit | |
$ |
532 | | |
$ |
515 | | |
$ |
538 | |
| Gross profit margin | | | 28.8 | % | | | 28.0 | % | | | 27.0 | % |
| Share-based compensation | | $ | 14 | | | $ | 10 | | | $ | 21 | |
|
Adjusted gross profit
(1) | |
$ |
546 | | |
$ |
525 | | |
$ |
559 | |
| Adjusted gross margin(1) | | | 29.6 | % | | | 28.5 | % | | | 28.0 | % |
| | | | | | | |
|
Selling, general and administrative expense | |
$ |
132 | | |
$ |
111 | | |
$ |
121 | |
| Share-based compensation | | $ | 24 | | | $ | 17 | | |
$ |
24 | |
|
Adjusted selling, general and administrative expense
(1) | |
$ |
108 | | |
$ |
94 | | |
$ |
97 | |
| | | | | | | |
|
Research and development expense | |
$ |
106 | | |
$ |
109 | | |
$ |
120 | |
| Share-based compensation | | $ | 6 | | | $ | 4 | | | $ | 8 | |
|
Adjusted research and development expense
(1) | |
$ |
100 | | |
$ |
105 | | |
$ |
112 | |
| | | | | | | |
|
Operating profit | |
$ |
275 | | |
$ |
290 | | |
$ |
297 | |
| Operating profit margin | | | 14.9 | % | | | 15.8 | % | | | 14.9 | % |
| Share-based compensation | | $ | 44 | | | $ | 31 | | | $ | 53 | |
| Restructuring charges | | $ | 19 | | | $ | 5 | | | | — | |
|
Adjusted operating profit
(1) | |
$ |
338 | | |
$ |
326 | | |
$ |
350 | |
| Adjusted operating profit margin (1) | | | 18.3 | % | | | 17.7 | % | | | 17.6 | % |
| | | | | | | |
|
Net income | |
$ |
237 | | |
$ |
254 | | |
$ |
264 | |
| Net income margin | | | 12.8 | % | | | 13.8 | % | | | 13.2 | % |
| Share-based compensation | | $ | 44 | | | $ | 31 | | | $ | 53 | |
| Restructuring charges | | $ | 19 | | | $ | 5 | | | | — | |
| Income tax effect (2) | | $ | (3 | ) | | $ | — | | | $ | — | |
|
Adjusted net income
(1)
(3) | |
$ |
297 | | |
$ |
290 | | |
$ |
317 | |
| Adjusted net income margin (1) | | | 16.1 | % | | | 15.8 | % | | | 15.9 | % |
| | | | | | | |
|
Diluted earnings per share | |
$ |
0.43 | | |
$ |
0.46 | | |
$ |
0.48 | |
| Share-based compensation | | $ | 0.08 | | | $ | 0.05 | | | $ | 0.10 | |
| Restructuring charges | | $ | 0.03 | | | $ | 0.01 | | | | — | |
| Income tax effect | | $ | (0.01 | ) | | $ | — | | | | — | |
|
Adjusted diluted earnings per share
(1) | |
$ |
0.53 | | |
$ |
0.52 | | |
$ |
0.58 | |
| | | | | | | |
|
Net cash provided by (used in) operating activities | |
$ |
546 | | | | | |
| Less: Purchase of property, plant and equipment and intangible assets | | $ | 400 | | | | | |
|
Free cash
flow
(1) | |
$ |
146 | | | | | |
| | | | | | | |
| (1) Adjusted gross profit, adjusted selling, general and administrative expense, adjusted research and development expense, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, free cash flow and any related margins are all Non-IFRS measures. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. |
| |
| (2) Relates to restructuring charges. |
| |
| (3) Reflects change to adjusted net income definition discussed in more detail elsewhere in this release. |
| |
