GLOBALFOUNDRIES (GFS) FY Conference May 13, 2025 11:30 AM ET Speaker0 All right. Good morning and welcome to JPMorgan's fifty third Annual Technology Media and Communications Conference. Again, my name is Harlan Sur. I'm the semiconductor and semiconductor capital equipment analyst for the firm. Very pleased to have John Hollister, Chief Financial Officer at GlobalFoundries. For those of you that don't know, GlobalFoundries, third or fourth largest semiconductor foundry in the world, leader in specialty and ...

Core Insights - NXP Semiconductors reported first-quarter revenue of $2.84 billion, aligning with guidance, but down 9% year-on-year, indicating challenges in the current market environment [1][4][6] - CEO Kurt Sievers announced his retirement at the end of 2025, with Rafael Sotomayor appointed as his successor, ensuring a smooth transition [2][3] - The company is focusing on managing controllable factors to maintain profitability amid external uncertainties, including tariffs [1][4] Financial Performance - Revenue for Q1 2025 was $2.84 billion, a decrease of 9% compared to both Q4 2024 and Q1 2024 [4][6] - GAAP gross margin was reported at 55.0%, while non-GAAP gross margin was 56.1% [4][6] - GAAP diluted net income per share was $1.92, down 22% year-on-year, while non-GAAP diluted net income per share was $2.64, down 19% year-on-year [4][6] Cash Flow and Capital Return - Cash flow from operations was $565 million, with net capital expenditures of $138 million, resulting in non-GAAP free cash flow of $427 million [4][6] - The company returned $561 million to shareholders, representing 131% of non-GAAP free cash flow, through share buybacks and dividends [4][6] Strategic Developments - NXP announced the acquisition of Kinara Inc. for $307 million to enhance its capabilities in energy-efficient neural processing units [5] - A €1 billion loan from the European Investment Bank was secured to support R&D investments across its semiconductor solutions portfolio [4][5] - The company expanded its partnership with Honeywell to accelerate aviation product development, leveraging NXP's technology for improved operational efficiency [4][5] Market Segmentation - Revenue breakdown for Q1 2025 included $1.67 billion from Automotive, $508 million from Industrial & IoT, $338 million from Mobile, and $315 million from Communications Infrastructure & Other [7][6] - Year-on-year declines were noted across all segments, with Automotive down 7%, Industrial & IoT down 11%, Mobile down 3%, and Communications Infrastructure down 21% [7][6] Guidance - For Q2 2025, NXP expects total revenue between $2.80 billion and $3.00 billion, reflecting a year-on-year decline of 4% to 10% [10]