MALTA, N.Y., Feb. 13, 2024 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (NASDAQ:GFS) today announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2023.
Key Fourth Quarter Financial Highlights
Revenue of $1.854 billion.
Gross margin of 28.3% and adjusted gross margin(1) of 29.0%.
Operating margin of 16.3% and adjusted operating margin(1) of 20.7%.
Net income of $278 million and adjusted net income(1) of $356 million.
Adjusted EBITDA(1) of $773 million.
Cash, cash equivalents and marketable securities of $3.9 billion.
Key Full Year 2023 Financial Highlights
Revenue of $7.4 billion.
Gross margin of 28.4% and adjusted gross margin(1) of 29.1%.
Net income of $1.0 billion and adjusted EBITDA(1) of $2.8 billion
“In the fourth quarter, GF’s dedicated teams across the world delivered financial results that exceeded the mid-point of the guidance ranges we provided in our November earnings release,” said Dr. Thomas Caulfield, president and CEO of GF. “We continue to position GF to drive foundry innovation and differentiation across essential end-markets and we are especially proud of our Automotive end market revenue growth, with over $1 billion of revenue in 2023. It also gives me great pleasure to welcome John Hollister to GF, as our new CFO. I look forward to partnering with John as we focus on our business priorities through 2024 and beyond.”
Recent Business Highlights
GF and Infineon announced a new multi-year agreement on the supply of Infineon’s leading 40nm automotive safety controller as well as power management and connectivity solutions through 2030.
GF was awarded $35 million in federal funding to accelerate the manufacturing of GF’s differentiated gallium nitride (GaN) on silicon semiconductors at its facility in Essex Junction, Vermont. This funding brings GF closer to large-scale production of GaN chips, which are unique in their ability to handle high voltages and temperatures.
For the second year in a row, GF has earned a place on Newsweek’s esteemed list of “America’s Most Responsible Companies,” underscoring the company’s longstanding commitment to ESG and environmentally sustainable manufacturing practices.
(1)Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted EBITDA and any related margins are all Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful.
Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments)
Year-over-year
Sequential
Q4’23
Q3’23
Q4’22
Q4’23 vs Q4’22
Q4’23 vs Q3’23
Net revenue
$
1,854
$
1,852
$
2,101
$
(247
)
(12
)%
$
2
—
%
Gross profit
525
529
622
$
(97
)
(16
)%
$
(4
)
(1
)%
Gross margin
28.3
%
28.6
%
29.6
%
(130)bps
(30)bps
Adjusted gross profit(1)
$
537
$
541
$
633
$
(96
)
(15
)%
$
(4
)
(1
)%
Adjusted gross margin(1)
29.0
%
29.2
%
30.1
%
(110)bps
(20)bps
Operating profit
$
303
$
261
$
288
$
15
5
%
$
42
16
%
Operating margin
16.3
%
14.1
%
13.7
%
+260bps
+220bps
Adjusted operating profit(1)
$
383
$
322
$
425
$
(42
)
(10
)%
$
61
19
%
Adjusted operating margin(1)
20.7
%
17.4
%
20.2
%
+50bps
+330bps
Net income
$
278
$
249
$
668
$
(390
)
(58
)%
$
29
12
%
Net income margin
15.0
%
13.4
%
31.8
%
(1,680)bps
+160bps
Adjusted net income(1)(2)
$
356
$
308
$
800
$
(444
)
(56
)%
$
48
16
%
Adjusted net income margin(1)
19.2
%
16.6
%
38.1
%
(1,890)bps
+260bps
Diluted earnings per share (“EPS”)
$
0.50
$
0.45
$
1.21
$
(0.71
)
(59
)%
$
0.05
11
%
Adjusted diluted EPS(1)
$
0.64
$
0.55
$
1.44
$
(0.80
)
(56
)%
$
0.09
16
%
Adjusted EBITDA(1)
$
773
$
667
$
821
$
(48
)
(6
)%
$
106
16
%
Adjusted EBITDA margin(1)
41.7
%
36.0
%
39.1
%
+260bps
+570bps
Cash from operations
$
684
$
416
$
491
$
193
39
%
$
268
64
%
Wafer shipments (300mm equivalent) (in thousands)
552
575
580
(28
)
(5
)%
(23
)
(4
)%
(1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted EPS, adjusted EBITDA, and any related margins are all Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” section for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS metrics are useful.
(2) Beginning in Q4 2022, the Company revised its definition of adjusted net income to include an adjustment for restructuring charges and the associated tax impact. The change was made due to a restructuring undertaken in Q4 2022. The Company believes the revised definition provides management and investors with more useful information to evaluate the operations of our business. Adjusted net income is now defined as net income adjusted for share-based compensation, restructuring charges and the associated tax impact.
Unaudited Summary Annual Results (in millions USD, except per share amounts and wafer shipments)
Year-over-year
FY2023
FY2022
FY23 vs FY22
Net revenue
$
7,392
$
8,108
$
(716
)
(9
)%
Gross profit
$
2,101
$
2,239
$
(138
)
(6
)%
Gross margin
28.4
%
27.6
%
+80bps
Adjusted gross profit(1)
$
2,149
$
2,303
$
(154
)
(7
)%
Adjusted gross margin(1)
29.1
%
28.4
%
+70bps
Operating profit
$
1,129
$
1,167
$
(38
)
(3
)%
Operating margin
15.3
%
14.4
%
+90bps
Adjusted operating profit(1)
$
1,369
$
1,443
$
(74
)
(5
)%
Adjusted operating margin(1)
18.5
%
17.8
%
+70bps
Net income(2)
$
1,018
$
1,446
$
(428
)
(30
)%
Net income margin
13.8
%
17.8
%
(400)bps
Adjusted net income(1)(2)(3)
$
1,251
$
1,717
$
(466
)
(27
)%
Adjusted net income margin(1)
16.9
%
21.2
%
(430)bps
Diluted EPS
$
1.83
$
2.62
$
(0.79
)
(30
)%
Adjusted diluted EPS(1)
$
2.24
$
3.11
$
(0.87
)
(28
)%
Adjusted EBITDA(1)(4)
$
2,763
$
3,088
$
(325
)
(11
)%
Adjusted EBITDA margin(1)
37.4
%
38.1
%
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