MALTA, N.Y., Jan. 08, 2025 (GLOBE NEWSWIRE) -- GlobalFoundries (NASDAQ:GFS) today announced that it will host a conference call on Tuesday, February 11, 2025, at 8:30 a.m. ET following the release of the company's fourth quarter and full-year 2024 financial results. Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, February 11, 2025, at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here. The compa ...

ESSEX JUNCTION, Vt., Dec. 04, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) has received an additional $9.5 million in federal funding from the U.S. government to advance the manufacturing of GF’s essential gallium nitride (GaN) on silicon semiconductors at its facility in Essex Junction, Vermont. The funding moves GF closer to large-scale production of GaN chips. With the ability to handle high voltages and temperatures, GaN chip technology is essential for enabling higher performance and gre ...

The beaten-down semiconductor company's earnings were better than the market feared.Shares of semiconductor foundry Globalfoundries (GFS 12.52%) rallied 12.1% on Wednesday, as of 1:32 p.m. ET.The company, a leading manufacturer of specialty semiconductors that are often made using less-advanced "trailing edge" nodes, reported its third-quarter results Tuesday evening. While Globalfoundries' overall revenue declined, it was ahead of expectations, and management's guidance was also better than expected, perha ...

GlobalFoundries 1 Third Quarter 2024 Financial Results (unaudited) November 5, 2024 Disclaimer This presentation and the accompanying oral presentation include "forward-looking statements," that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $1.739 billion, representing a 7% sequential growth and a 6% year-over-year decline [10][35] - Non-IFRS gross margin was 24.7%, exceeding the mid-point of the guidance range [17] - Non-IFRS diluted earnings per share were $0.41, surpassing the high end of the guidance range [17] - Year-to-date non-IFRS adjusted free cash flow was $779 million, with expectations of approximately 3x growth compared to 2023 [19] - Q4 2024 revenue guidance is between $1.8 billion and $1.85 billion, with gross profit expected to be between $432 million and $481 million [50] Business Line Performance - Smart mobile devices accounted for 50% of Q3 revenue, with a 14% sequential increase and an 11% year-over-year increase [37] - Home and industrial IoT markets represented 18% of Q3 revenue, with a 4% sequential increase but a 25% year-over-year decline [39] - Automotive segment accounted for 15% of Q3 revenue, with a 5% sequential decline and a 16% year-over-year decline, but expected to grow high-single-digits for 2024 [41] - Communications infrastructure and data center segment represented 7% of Q3 revenue, with a 14% sequential decline and a 15% year-over-year decline [42] Market Performance - Automotive remains a key growth driver, with high-single-digit revenue growth expected for 2024 despite short-term demand dynamics [23][41] - Smart mobile devices returned to year-over-year revenue growth in Q3, with demand expected to normalize in 2024 [25][38] - IoT end market saw a 4% sequential revenue growth but is down on a full-year basis due to elevated inventory levels [28] - Communications infrastructure and data center segment is expected to see growth opportunities in power, connectivity, and optical networking [43] Strategic Direction and Industry Competition - The company is focused on diversifying its product portfolio and customer base, with 90% of year-to-date design wins being sole-source opportunities [12][13] - A key design win with NXP on the 22FDX platform highlights the company's focus on power and performance solutions [14] - The company is expanding its global manufacturing footprint, particularly in Malta, New York, to support customer demand across the U.S., Europe, and Asia [15][16] - Silicon photonics and power management are identified as key growth areas, with partnerships in optical networking and power solutions [31][32] Management Commentary on Operating Environment and Future Outlook - The company expects sequential growth throughout 2024, with Q1 being the low point for revenue [10] - Management is optimistic about long-term growth opportunities, particularly in automotive and smart mobile devices, despite near-term demand challenges [23][25] - The company is well-positioned to capitalize on industry recovery, with a focus on improving factory utilization and cost recovery initiatives [64][65] Other Important Information - The company shipped approximately 549,300 millimeter equivalent wafers in Q3, up 6% sequentially but down 5% year-over-year [36] - Non-wafer revenue, including reticles and non-recurring engineering, accounted for 10% of total revenue in Q3 [36] - The company has a $1 billion revolving credit facility, which remains undrawn [49] Q&A Session Summary Question: How does the company reconcile its strong performance with the weakness of its customers? [56] - The company attributes its performance to the breadth of its end markets, particularly smart mobile devices and automotive, which are growing despite industry challenges [57][58] - For 2025, the company expects growth, with Q1 2025 projected to show year-over-year growth, albeit with high seasonal cyclicality [60][61] Question: What are the gross margin trends and expectations for 2025? [62] - Gross margin benefits from underutilization charges are expected to decrease, but overall margins are expected to improve with industry recovery and higher utilization [64][65] Question: What are the pricing trends and expectations for 2025? [67] - The company expects pricing to remain stable, with opportunities for better pricing in 2025 due to inflation and the shift away from long-term agreements [69][70] Question: What are the demand trends in the smart mobile segment? [71] - The company is seeing growth in China, particularly in 5G low and mid-tier phones, with design wins on 8SW, 9SW SOI, and RF GaN platforms [73][74] Question: What is the impact of customer underutilization payments on gross margin? [75] - The impact of underutilization payments is expected to decrease, with minimal effect on gross margin in the first half of 2025 [76][77] Question: How does the company balance geographic diversification with local production trends in China? [78] - The company sees strong demand from Chinese fabless companies for global supply, with a strategy to support both local and global needs [80][81][82] Question: What are the key design wins and their expected contributions? [85] - The company is focused on converting design wins into revenue, with a strong pipeline in automotive, IoT, and smart mobile devices [85][86] Question: What are the capital allocation plans given the strong cash flow? [107] - The company is considering various capital allocation strategies, including share repurchases, dividends, and reducing leverage, while also exploring accretive M&A opportunities [109][110][112] Question: What is the outlook for silicon photonics and compound semiconductors? [115] - Silicon photonics and SiGe are expected to be significant revenue drivers, particularly in high-performance analog applications [116][117] Question: What is the nature of the partnership with NXP and the role of LTAs? [122] - The partnership with NXP is strategic, with LTAs providing certainty in volume, pricing, and duration, particularly in long-tail markets like automotive [122][123][125] Question: How does the company reconcile its Q4 guidance with weak smartphone trends? [128] - The company expects IoT and infrastructure declines to offset growth in other segments, with strong performance in RF and design wins supporting smart mobile devices [129][130] Question: What are the gross margin expectations excluding prepayment impacts? [131] - Gross margin is expected to improve with higher factory utilization and cost recovery initiatives, supported by a favorable business mix [131]

GlobalFoundries Inc. (GFS) reported $1.74 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 6.1%. EPS of $0.41 for the same period compares to $0.55 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.73 billion, representing a surprise of +0.78%. The company delivered an EPS surprise of +24.24%, with the consensus EPS estimate being $0.33.While investors closely watch year-over-year changes in headline numbers -- revenue and earning ...

GlobalFoundries Inc. (GFS) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.24%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.38, delivering a surprise of 31.03%.Over the last four quarters, the comp ...

GlobalFoundries Inc. TABLE OF CONTENTS Unaudited Financial Statements Page Interim Condensed Consolidated Statements of Financial Position 2 Interim Condensed Consolidated Statements of Operations 3 Interim Condensed Consolidated Statements of Comprehensive Income (Loss) 4 Interim Condensed Consolidated Statements of Changes in Equity 5 Interim Condensed Consolidated Statements of Cash Flows 6 Notes to Interim Condensed Consolidated Financial Statements 7-19 - 1 - GlobalFoundries Inc. INTERIM CONDENSED CONS ...

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 billionGross 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 millionNon-IFRS adjusted EBITDA(1) of $627 millionCash, cash equivalents and ma ...

In our previous coverage of GlobalFoundries Inc. (NASDAQ: GFS ), we highlighted the company's expansion plans which are expected to boost supply growth by 20% in 2023. However, we also noted that weak demand in the smartphone and PC markets, which Khaveen Investments is a Macroquantamental Hedge Fund managing a portfolio of globally diversified investments. With a vested interest in hundreds of investments spanning diverse asset classes, countries, sectors, and industries, we wield a multifaceted investment ...