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CVD Equipment Corporation announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.
Manny Lakios, President and CEO of CVD Equipment Corporation, commented, “CVD’s fourth quarter 2024 revenue was $7.4 million, representing an 80.3% increase from the prior year quarter. Our backlog at December 31, 2024 was $19.4 million, meaningfully higher than our 2023 year-end backlog of $18.4 million.“
“During 2024 we continue to see an ongoing recovery of our aerospace and defense market. As previously announced, in early November we received a $3.5 million follow on order for our CVI 3500™ system from an existing aerospace customer.”
“The silicon carbide market has remained challenging due to overcapacity and the global decline in wafer prices,” continued Mr. Lakios. “The customer for our first PVT200™ system, which shipped in the second half of 2024, is continuing to evaluate the performance of our system for possible additional orders. We continue to support our installed base of PVT150™ systems and pursue additional PVT150™ and PVT200™ orders.”
Mr. Lakios added, “While the fourth quarter represents the second consecutive quarter of positive net income, we expect our order and revenue levels to continue to fluctuate given the nature of the emerging growth markets we serve. In addition, the current geopolitical environment, including the possible imposition of tariffs that may affect our supply chain and costs of components and materials, presents us with new challenges in fiscal 2025 and beyond. We are staying the course on our strategic efforts to build critical customer relationships, while carefully managing our expenses in order to achieve our goal of long-term profitability and positive cash flow, while simultaneously focusing on growth and return on investment.”
Fourth Quarter 2024 Financial Performance
- Revenue of $7.4 million, up $4.1 million or 80.3% year over year due to higher system revenue by our CVD Equipment segment and an increase in gas delivery system revenue by our SDC segment.
- During the quarter, we recognized an additional $0.3 million non-cash charge to reduce our PVT150™ inventory to net realizable value based on changes in the market for equipment for 150 mm SiC wafers.
- Our gross profit margin percentage improved due to changes in contract mix but was offset by the inventory charge. The prior year quarter was impacted by significant cost overruns on one contract.
- Operating income of $35,000 as compared to an operating loss of $2.5 million in the prior year fourth quarter.
- Net income of $132,000 or $0.02 basic and diluted share, compared to a net loss of $2.3 million or $0.33 per basic and diluted share during the prior year fourth quarter.
- Cash and cash equivalents of $12.6 million as of December 31, 2024, as compared to $14.0 million as of December 31, 2023.
Full Year 2024 Financial Performance
- Revenue of $26.9 million, up $2.8 million or 11.5% year over year primarily due to increases in revenues from aerospace contracts in progress and our SDC segment. Revenue for 2024 includes $0.8 million of final sales by our MesoScribe segment which closed its operations in 2024 as previously disclosed.
- Our gross profit margin percentage was 23.6% in 2024 as compared to 21.0% in the prior year due to higher revenues as well as improved margins on CVD contracts in process.
- During the fiscal year, we recognized a $1.3 million non-cash charge to reduce our PVT150™ inventory to net realizable value.
- Our gross profit margin percentage improved due to changes in contract mix but was offset by the inventory charge.
- The Company recognized total gains on the sales of equipment of $0.7 million, principally by our MesoScribe subsidiary.
- Operating loss of $2.4 million.
- Net loss of $1.9 million or $0.28 basic and diluted share, compared to a net loss of $4.2 million or $0.62 per basic and diluted share in the prior year.
Fourth Quarter 2024 Operational Performance
- Orders for the fourth quarter were $7.1 million driven by continued demand from the aerospace sector in our CVD Equipment segment and for gas delivery equipment in our SDC segment.
- One of the orders received in the fourth quarter was for a $3.5 million system order in the aerospace sector that will be delivered over the next 12 months.
Full Year 2024 Operational Performance
- Booking of new orders from customers was $28.1 million for the fiscal year, representing an increase of approximately 8.9% compared to 2023 bookings of $25.8 million. The increase in bookings of $2.3 million was related to an increase in aerospace and industrial orders.
- Backlog as of December 31, 2024, of $19.4 million, an increase from $1.0 million from the prior year end.
- Continued investments in both research and development and sales and marketing, focused on our three key strategic markets – aerospace & defense, microelectronics / power electronics and EV battery materials / energy storage.
Original – CVD Equipment
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Magnachip Semiconductor Corporation announced financial results for the fourth quarter and full-year 2024.
Q4 Results Summary
- Consolidated revenue of $63 million was above the mid-point of our guidance range of $59.0 to $64.0 million.
- Standard Product business revenue was down 5.1% sequentially due primarily to seasonality.
- Consolidated gross profit margin of 25.2% was above the high-end our guidance range of 21.5% to 23.5%.
- Standard Product business gross profit margin was 26.6%, up 2.2 percentage points sequentially.
- Repurchased approximately 0.7 million shares for aggregate purchase price of $2.9 million during the quarter and ended Q4 with cash of $138.6 million.
2024 Highlights
- Excluding Transitional Foundry Services, Standard Products business revenue increased 13% year-over-year, with MSS up 22.5% and PAS up 10.2%. Both of these business line growth rates were in line with original guidance for double-digit growth provided at the beginning of 2024.
- PAS revenue growth was strongest in Communication, Computing and Consumer in calendar 2024. Automotive and Industrial declined only slightly, relatively outperforming the broader markets.
- Power IC revenue increased more than 50% year-over-year.
YJ Kim, Magnachip’s CEO, said, “Our Q4 revenue of $63 million was up 24% year-over-year, and gross profit margin of 25.2% was up 2.5 percentage points as compared to a year ago. For the year, Standard Products business revenue increased 13% year-over-year, in line with our guidance for double-digit growth that we provided at the beginning of 2024.”
YJ Kim added, “Our revenue and gross margin results represented a step in the right direction, but our utmost short-term goal is a return to profitability. To achieve this goal, Magnachip announced today its transition to become a pure-play Power company, and we also announced that we are exploring all strategic options for the Display business, which will be classified as discontinued operations when the Company reports Q1 results in May.”
YJ Kim commented, “By focusing on the Power business, Magnachip currently expects to achieve a quarterly Adjusted EBITDA breakeven by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income in 2026, and positive adjusted free cash flow in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a $300 million annual revenue run-rate with a 30% gross profit margin target. We call this our 3-3-3 strategy.”
Original – Magnachip Semiconductor
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According to the preliminary figures for the 2024 financial year available, the Management Board of centrotherm international AG, Blaubeuren, expects that the earnings forecast of a positive consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) for 2024 in the low double-digit million euro range has been exceeded and that consolidated EBITDA is expected to be around EUR 39 million.
The higher than expected number of customer acceptances by the end of 2024, which led to a corresponding revenue increase, as well as an improvement in the centrotherm Group’s operating margin, contributed significantly to this positive earnings development.
In terms of further guidance for the 2024 financial year, total Group operating performance of around EUR 290 million will reach the upper end of the EUR 200 million to EUR 300 million range. Incoming orders are expected to be over EUR 164 million and are thus in line with the adjusted forecast of EUR 150 million to EUR 180 million issued at the beginning of November 2024.
The consolidated financial statements for the 2024 financial year have not yet been prepared by the Management Board or audited by the auditor. The publication of the annual report is scheduled for April 30, 2025.
Original – centrotherm international
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Despite challenging conditions, Siltronic AG demonstrated resilience in the 2024 financial year. Accordingly, the company achieved sales of EUR 1,412.8 million (2023: EUR 1,513.8 million) and an EBITDA of EUR 363.8 million (2023: EUR 433.9 million), confirming the figures published at the beginning of February. In an environment of continued weak demand, a solid EBITDA margin of 25.8 percent (2023: 28.7 percent) was achieved.
“Siltronic closed the 2024 financial year at the upper end of expectations and acted consistently in a difficult market environment,” says Dr. Michael Heckmeier, CEO of Siltronic AG. “Despite growing end markets, particularly through Artificial Intelligence, 2025 will also be characterized by the reduction of still elevated inventory levels at chip manufacturers and their customers. At the same time, we are continuously working on our costs to strengthen our competitiveness. With our new capacities and innovative strength, we are perfectly positioned for the upcoming recovery.”
Group sales decreased by 6.7 percent in the financial year 2024 – the guidance was in the high single-digit percentage range – to EUR 1,412.8 million. This was due to slightly negative price and product mix effects and a lower wafer area sold. The price decline was most pronounced for older product types with diameters up to 200 mm.
Cost of sales decreased by EUR 4.2 million year-over-year to EUR 1,137.4 million. This decrease was mainly due to the lower wafer area sold. Cost of sales decreased at a lower percentage than sales, primarily due to higher depreciation related to capital expenditures and lower fixed cost dilution. On the other hand, the cost for raw materials and supplies slightly decreased in line with the relative volume decline compared to the previous year. Overall, the gross margin decreased from 24.6 percent to 19.5 percent.
In order to mitigate risks from FX developments, Siltronic implemented currency hedging measures, which resulted in a net expense from exchange rate effects of EUR 0.3 million in 2024, compared to a gain of EUR 16.5 million in 2023.
In the reporting year, Siltronic achieved an EBITDA of EUR 363.8 million (2023: EUR 433.9 million). The EBITDA margin of 25.8 percent (2023: 28.7 percent) remained resilient despite the prolonged weak demand – the guidance was between 24 and 26 percent. The main reasons for the year-over-year decline in EBITDA margin are the lower sales level and a deteriorated result from FX effects. With the increase in depreciation due to the continued high capex activity by EUR 36.0 million, the operating result (EBIT) fell significantly to EUR 125.2 million, compared to EUR 231.3 million in the previous year.
The financial result decreased significantly to EUR -24.9 million (2023: EUR -0.5 million). This is partly due to a lower net result from financial investments, and partly due to loans to support the financing of capex, which led to a noticeable increase in interest expenses on loans.
In the past financial year, income taxes amounted to EUR 33.1 million (2023: EUR 29.5 million). The Group’s tax rate for the reporting year was 33 percent (2023: 13 percent). The higher tax rate is due to deferred tax effects. This resulted in a net profit of EUR 67.2 million (2023: EUR 201.3 million), of which EUR 63.0 million (2023: EUR 184.4 million) was attributable to the shareholders of Siltronic AG. Earnings per share reached EUR 2.10 compared to EUR 6.15 in the previous year.
In the past financial year, payments for capex including intangible assets significantly decreased to EUR 667.5 million, compared to EUR 1,112.1 million in the previous year. As expected, both the free cash flow (2024: EUR -323.0 million) and the net cash flow (2024: EUR -297.0 million) improved considerably year-over-year. However, the still elevated capex level once again resulted in both remaining clearly negative.
As of December 31, 2024, total assets, with significantly increased property, plant and equipment, reached EUR 5,084.4 million (previous year: EUR 4,504.9 million). The equity ratio remained at a healthy level of 43.6 percent (2023: 46.6 percent). The high capex at the end of 2023, some of which was not due for payment until 2024 led to payments for capex (EUR 667.5 million) significantly exceeding the balance sheet additions for the reporting year (EUR 523.4 million). The majority of balance sheet additions was allocated to the construction of the new 300 mm fab in Singapore. As a result, net financial debt increased by EUR 377.8 million to EUR 733.5 million (December 31, 2023: EUR 355.7 million).
For 2025, the Executive Board expects the end markets to grow again. After an increase of six percent in the previous year, a seven percent growth is forecast for 2025, with Artificial Intelligence applications being a key driver. However, this is mostly not expected to lead to an improvement in Siltronic’s sales performance due to the slowly decreasing inventory levels at chip manufacturers and their customers. Accordingly, the Executive Board expects sales to be in the same region as last year, assuming unchanged FX rates (EUR/USD: 1.08). H1 2025 is currently expected to be below H2 2024 by a high single-digit percentage range. The recent development of the Euro against the US dollar may help to mitigate this effect. The sales guidance takes into account the discontinuation of production of polished and epitaxial wafers up to 150 mm diameter in Burghausen as of July 31, 2025.
The EBITDA margin is expected to be in the range of 22 to 27 percent. The ramp costs for the new fab will be partially offset by savings in energy and other areas.
Depreciation and amortization will increase to EUR 380 to 440 million in 2025 due to the high capex in recent years. This increase is mainly due to the planned start of depreciation of major parts of the new Singapore fab in mid-2025.
Mainly due to the higher depreciation, the Executive Board expects EBIT in 2025 to be significantly lower than in the previous year.
As previously announced, capex will be further reduced and is expected to be in the range of EUR 350 to 400 million. As a result, the company expects a noticeable improvement in net cash flow, which will, however, remain significantly negative.
Original – Siltronic
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Ideal Power Inc. published results for its fourth quarter and full year ended December 31, 2024.
“We’re thrilled with our first design win representing significant validation of B-TRAN® as an enabling technology for SSCBs and a catalyst for our anticipated revenue ramp starting in the second half of 2025. Based on the customer’s projections, the opportunity from this customer’s first B-TRAN®-based product alone could translate to revenue of several hundred thousand dollars in its first year of sales, with the opportunity to exceed a million dollars in revenue in the second year of sales. After the successful roll-out of this first product, we expect this OEM to expand its offerings to include a suite of B-TRAN®-enabled SSCBs with a wide range of ratings presenting a substantial opportunity for revenue growth,” stated Dan Brdar, President and Chief Executive Officer of Ideal Power.
Brdar continued, “We are leveraging this design win for SSCBs to potentially secure additional design wins with other large SSCB customers in the coming months to drive long-term value creation for our shareholders. Solid-state switchgear, which includes SSCBs, is at least a $1.0 billion market opportunity for us and is expected to drive our sales ramp followed by a $1.4 billion opportunity in the energy and power market. In the fourth quarter, we secured a multi-unit order for our SymCool® IQ intelligent power module. This product targets the energy and power market, a market that includes renewable energy, energy storage and EV charging.”
Key Fourth Quarter and Recent Operational Highlights
Execution to our B-TRAN® commercial roadmap continues, including:
- Secured first design win for solid-state circuit breakers (SSCB) with one of the largest circuit protection equipment manufacturers in Asia serving industrial and utility markets. The program is ahead of schedule with product design, prototype builds, testing, and delivery of the SSCBs targeted for completion in late March or early April to be followed by commercial sales later in the year.
- Secured order for our SymCool® IQ intelligent power module from a customer that specializes in the development and manufacture of circuit protection and power conversion solutions. This customer is interested in SymCool® IQ modules for several end markets including renewable energy, energy storage, electric vehicle (EV) charging, and data centers.
- Conducted a comprehensive program review in Detroit with Stellantis’ U.S. and European production and engineering teams along with other major suppliers contributing to Stellantis’ new EV platform. Based on the successful program review and positive feedback from Stellantis, we expect to not only continue advancing the drivetrain inverter program but also add a new high priority program for EV contactors.
- Secured orders from a third Global Tier 1 automotive supplier for numerous discrete B-TRAN® devices, a SymCool® power module, a SSCB evaluation board and a driver. This customer is interested in using B-TRAN® for solid-state EV contactor applications.
- Initiated third-party automotive qualification and reliability testing of B-TRAN® devices. This testing requires well over a thousand packaged B-TRAN® devices from multiple wafer runs. Test results continue to be positive with no die failures to date. Successful completion of B-TRAN® automotive qualification and reliability testing is expected later this year.
- B-TRAN® Patent Estate: Currently at 94 issued B-TRAN® patents with 45 of those issued outside of the United States and 53 pending B-TRAN® patents. Current geographic coverage includes North America, China, Taiwan, Japan, South Korea, India, and Europe.
Fourth Quarter and Full Year 2024 Financial Results
- Cash used in operating and investing activities in the fourth quarter of 2024 was $2.6 million compared to $2.1 million in the fourth quarter of 2023. Cash used in operating and investing activities in the full year 2024 was $9.2 million compared to $7.7 million in the full year 2023.
- Cash and cash equivalents totaled $15.8 million at December 31, 2024.
- No long-term debt was outstanding at December 31, 2024.
- Commercial revenue was $5,408 in the fourth quarter of 2024 and $86,032 in the full year 2024.
- Operating expenses in the fourth quarter of 2024 were $2.8 million compared to $2.5 million in the fourth quarter of 2023 driven primarily by higher research and development spending.
- Operating expenses in the full year 2024 were $11.1 million compared to $10.4 million in the full year 2023 driven primarily by higher research and development and sales and marketing spending.
- Net loss in the fourth quarter of 2024 was $2.6 million compared to $2.4 million in the fourth quarter of 2023. Net loss in the full year 2024 was $10.4 million compared to $10.0 million in the full year 2023.
2025 Milestones
For 2025, the Company has set the following milestones:
- Secure next phase of development program with Stellantis
- Complete deliverables in 1H 2025 related to first design win
- Capture additional design wins / custom development agreements
- Start initial sales ramp in second half of year
- Increase current rating of products
- Complete third-party automotive qualification testing
Original – Ideal Power
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Navitas Semiconductor announced unaudited financial results for the fourth quarter and full year ended December 31, 2024.
“I am proud of our team’s efforts to deliver growth in 2024, despite significant headwinds with an industry-wide slow-down in some major markets,” said Gene Sheridan, CEO and co-founder. “We achieved record GaN revenues from mobile, consumer and appliance sectors, while both GaN and SiC started shipping into data centers in the second half of 2024. We closed the year with an extraordinary $450 million of customer design-wins, which gives us increased confidence to resume a healthier growth rate in late ‘25 and beyond and continue to grow significantly faster than the overall power semiconductor market.”
4Q24 Financial Highlights
- Revenue: Total revenue was $18.0 million in the fourth quarter of 2024, compared to $26.1 million in the fourth quarter of 2023 and compared to $21.7 million in the third quarter of 2024.
- Loss from Operations: GAAP loss from operations for the quarter was $39.0 million, compared to a loss of $26.8 million for the fourth quarter of 2023 and a loss of $29.0 million for the third quarter of 2024. On a non-GAAP basis, loss from operations for the quarter was $12.7 million compared to a loss of $9.7 million for the fourth quarter of 2023 and a loss of $12.7 million in the third quarter of 2024.
- Cash: Cash and cash equivalents were $86.7 million as of December 31, 2024.
FY 2024 Financial Highlights
- Revenue: Total revenue grew to $83.3 million in 2024, a 5% increase from $79.5 million in 2023.
- Loss from Operations: GAAP loss from operations for the year was $130.7 million, compared to a loss of $118.1 million for 2023. On a non-GAAP basis, loss from operations for the year was $49.7 million compared to a loss of $40.3 million for 2023.
Market, Customer and Technology Highlights:
- Customer pipeline: increased 92% from $1.25 billion in December 2023, to $2.4 billion in December 2024.
- Data Center: AI driving fastest-growing end-market within customer pipeline, now valued at $165 million, up more than 100% vs. 2023; Navitas-designed 2.7 kW to 8.5 kW system platforms fueling 40 customer wins in 2024 with GaN and SiC AC-DC power supplies; now expanding into 48 V DC-DC converters with new 80-120 V GaN technology.
- EV: Over 40 customer wins in 2024 from US, Europe, Korea and China regions primarily with SiC in onboard and roadside chargers; first GaN EV win announced for 2026 production – extending driving range and reducing charging costs vs. traditional silicon on-board chargers.
- Mobile: Over 180 customer wins in 2024; continue to supply 10 of top 10 smartphone / notebook OEMs with Navitas GaN ICs; GaN reaches 10% adoption globally vs. silicon in mobile chargers and expands reach into Middle East, Africa, Latin America and India.
- Solar/Appliance/Industrial: On-track for GaN solar micro-inverter launch this summer expected to improve solar energy efficiencies, weight, size and cost; over 170 customer wins across solar, appliance and industrial.
Technology Announcement (March 12th live-stream event):
- Navitas will unveil a breakthrough in power conversion that will create a paradigm shift across multiple, major end markets. This includes both semiconductor and system-level innovations, and is expected to drive major improvements in energy efficiency and power density, further accelerating GaN and SiC adoption vs. legacy silicon devices. For more details, refer to: https://navitassemi.com/navitas-to-unveil-a-new-paradigm-in-power/.
Business Outlook
- First quarter 2025 net revenues are expected to be $13.0 to $15.0 million. Non-GAAP gross margin for the first quarter is expected to be 38% plus or minus 50 basis points, and non-GAAP operating expenses are expected to be approximately $18.0 million in the first quarter of 2025.
Original – Navitas Semiconductor
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Analog Devices, Inc. announced financial results for its fiscal first quarter 2025, which ended February 1, 2025.
- Revenue of more than $2.4 billion, with sequential growth in Industrial, Automotive, and Communications, and double-digit year-over-year growth in Consumer
- Operating cash flow of $3.8 billion and free cash flow of $3.2 billion on a trailing twelve-month basis
- Raised quarterly dividend 8% to $0.99, marking twenty-one consecutive years of increases
- Increased share repurchase authorization by $10.0 billion, bringing total remaining authorization to approximately $11.5 billion
“ADI delivered first quarter revenue, profitability, and earnings per share above the midpoint of our outlook, despite the challenging macro and geopolitical backdrop,” said Vincent Roche, CEO and Chair. “Our recovery is being propelled by improving cyclical dynamics and numerous new wins across our franchise converting to revenue. We remain firmly committed to delivering ever higher levels of value for customers through differentiated innovation and customer experience, coupled with an agile and resilient supply chain.”
“Bookings continued to show gradual improvement during the first quarter with strength in Industrial and Automotive positioning us to grow sequentially and year-over-year in our second fiscal quarter. We remain confident that fiscal 2025 represents a return to growth for ADI,” said Richard Puccio, CFO.
Performance for the First Quarter of Fiscal 2025 (PDF)
Outlook for the Second Quarter of Fiscal Year 2025
For the second quarter of fiscal 2025, Analog Devices is forecasting revenue of $2.50 billion, +/- $100 million. At the midpoint of this revenue outlook, reported operating margin of is expected to be approximately 24.2%, +/-160 bps, and adjusted operating margin of approximately 40.5%, +/-100 bps. Reported EPS is planned to be $0.97, +/-$0.10, and adjusted EPS to be $1.68, +/-$0.10.
The second quarter fiscal 2025 outlook is based on current expectations and actual results may differ materially as a result of, among other things, the important factors discussed at the end of this release. The statements about the second quarter fiscal 2025 outlook supersede all prior statements regarding our business outlook set forth in prior ADI news releases, and ADI disclaims any obligation to update these forward-looking statements.
The adjusted results and adjusted anticipated results above are financial measures presented on a non-GAAP basis. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided in the financial tables included in this release. See also the “Non-GAAP Financial Information” section for additional information.
Dividend Payment
The ADI Board of Directors has declared a quarterly cash dividend of $0.99 per outstanding share of common stock. The dividend will be paid on March 17, 2025 to all shareholders of record at the close of business on March 4, 2025.
Original – Analog Devices
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Veeco Instruments Inc. announced financial results for its fourth quarter and fiscal year ended December 31, 2024. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.
Fourth Quarter 2024 Highlights:
- Revenue of $182.1 million, compared with $173.9 million in the same period last year
- GAAP net income of $15.0 million, or $0.26 per diluted share, compared with $21.6 million, or $0.37 per diluted share in the same period last year
- Non-GAAP net income of $24.2 million, or $0.41 per diluted share, compared with $29.8 million, or $0.51 per diluted share in the same period last year
Fiscal Year 2024 Highlights:
- Revenue of $717.3 million, compared with $666.4 million in the same period last year
- GAAP net income of $73.7 million, or $1.23 per diluted share, compared with GAAP net loss of $30.4 million or $0.56 loss per diluted share in the same period last year
- Non-GAAP net income of $104.3 million, or $1.74 per diluted share, compared with $98.3 million, or $1.69 per diluted share in the same period last year
“Veeco had a successful year in 2024, highlighted by our Semiconductor business outperforming WFE growth for the 4th consecutive year,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “We achieved several strategic milestones, grew the top-line and delivered solid profitability, all while continuing to allocate capital toward our largest growth opportunities. Looking ahead, our solutions in Laser Annealing, Ion Beam Deposition, and Advanced Packaging are well-positioned to take advantage of growth in leading edge investment in the coming years.”
The following guidance is provided for Veeco’s first quarter 2025:
- Revenue is expected in the range of $155 million to $175 million
- GAAP diluted earnings per share are expected in the range of $0.11 to $0.22
- Non-GAAP diluted earnings per share are expected in the range of $0.26 to $0.36
Original – Veeco Instruments
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In its FY2024 third-quarter consolidated business results, Toshiba Corporation reported a significant turnaround, achieving an operating income of ¥114.3 billion, the highest for the first three quarters since FY2018, when the memory business was excluded from its portfolio. This marks a substantial improvement from the previous year, driven by increased net sales and effective management reforms.
Financial Performance Overview
For the first nine months of FY2024, Toshiba’s net sales experienced a year-over-year (YoY) increase. Despite a sluggish recovery in the semiconductor market leading to decreased sales in that segment, other areas such as Hard Disk Drives (HDDs) and Power Generation Systems performed well. The Building Solutions segment also saw improved operating income due to profitability-focused reforms. These positive outcomes contributed to the overall increase in operating income across all segments.
A notable factor in this financial upturn was the reduction in provisions by ¥50.9 billion YoY, achieved through enhanced risk analysis and management efforts. Net income reached ¥184.8 billion, a significant rise of ¥291.8 billion YoY, bolstered by increased equity earnings from affiliates, particularly due to Kioxia Holdings Corporation’s improved performance.
Segment-Specific Insights
- Semiconductors and Storage: The semiconductor segment faced challenges with decreased sales attributed to a slow market recovery. However, the HDD sector experienced higher sales, contributing positively to the company’s operating income.
- Energy Systems & Solutions: This segment saw an increase in orders, particularly for large-scale projects, leading to a higher order backlog. The positive trend indicates robust demand and a strong market position in energy solutions.
- Infrastructure Systems & Solutions: The segment reported increased orders and a growing order backlog, reflecting successful acquisition of large-scale projects and a solid market presence.
- Building Solutions: Focused reforms aimed at enhancing profitability led to improved operating income in this segment, particularly in the elevator business in Japan.
Strategic Initiatives and Management Reforms
Toshiba’s financial resurgence can be attributed to several strategic initiatives and management reforms:
- Enhanced Risk Management: The company implemented a comprehensive risk analysis framework, resulting in a significant reduction in provisions and contributing to improved financial stability.
- Cost Optimization: Efforts to reduce fixed costs and conduct regular sales price reviews have been instrumental in enhancing profitability across various business segments.
- Focus on Core Competencies: By concentrating resources on high-performing sectors such as energy systems and infrastructure solutions, Toshiba has strengthened its market position and financial performance.
Looking ahead, Toshiba aims to build on its current momentum by continuing to implement management reforms and strategic initiatives. The company is poised to capitalize on growth opportunities in its core business areas while maintaining a strong focus on risk management and operational efficiency.
Toshiba Corporation’s third-quarter results for FY2024 reflect a robust financial recovery, driven by strategic reforms, effective risk management, and a focus on core business strengths. The company’s proactive approach positions it well for sustained growth and profitability in the coming years.
Original – Toshiba
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GlobalFoundries Inc. (GF) announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2024.
Key Fourth Quarter Financial Highlights
- Revenue of $1.830 billion
- Gross margin of 24.5% and Non-IFRS gross margin of 25.4%
- Operating margin of (38.3)% and Non-IFRS operating margin of 15.6%
- Net loss of $729 million and Non-IFRS net income of $256 million
- Diluted loss per share of $1.32 and Non-IFRS diluted earnings per share of $0.46
- Non-IFRS adjusted EBITDA of $661 million
- Ending cash, cash equivalents and marketable securities of $4.2 billion
- Net cash provided by operating activities of $457 million and Non-IFRS adjusted free cash flow of $328 million
Key Full Year 2024 Financial Highlights
- Revenue of $6.750 billion
- Gross margin of 24.5% and Non-IFRS gross margin of 25.3%
- Net loss of $262 million and Non-IFRS net income $870 million
- Diluted loss per share of $0.48 and Non-IFRS diluted earnings per share of $1.56
- Non-IFRS adjusted EBITDA of $2.475 billion
- Year to date net cash provided by operating activities of $1.722 billion and Non-IFRS adjusted free cash flow of $1.107 billion
“In the fourth quarter, the GF team delivered solid financial results that exceeded the Non-IFRS midpoint of the guidance ranges we provided in our November earnings release,” said Dr. Thomas Caulfield, President and CEO of GF. “2024 presented a unique set of challenges for our industry, but thanks to our focus on operational excellence, we generated over $1 billion of Non-IFRS adjusted free cash flow. As we look to 2025, we are encouraged by our strong design win momentum across our end markets and product portfolio as we position GF for a growth year.”
In the fourth quarter 2024, GF recorded a $935 million impairment charge on the long-lived assets relating to legacy investments in production capacity at its facility in Malta, New York. GF undertook this action pursuant to the diversification of its long-term manufacturing technology platform roadmap in Malta, which is consistent with the Company’s previously communicated technology transfer strategy needed to meet expected long-term customer demand. Since such impairment is not expected to be a recurring event, the Company believes this additional adjustment to Non-IFRS metrics better enables management and investors to make more meaningful comparisons of fourth quarter 2024 results against prior periods.
Recent Business Highlights
- GF announced a first-of-its-kind center for advanced packaging and test capabilities, to be developed at its Malta, New York facility. Supported by grants from New York State and the U.S. Department of Commerce, GF’s Advanced Packaging and Photonics Center will help meet the growing demand for U.S.-made essential chips used in AI, automotive, aerospace and defense, and communications applications.
- IDEMIA and GF announced a partnership to deliver next-generation smart card technology with improved data retention, low read latency and enhanced power efficiency – saving customers cost and time. This multi-year collaboration will be 100% manufactured and tested in Europe on GF’s 28ESF3 platform, ensuring trusted providence.
- Lightmatter announced that it will use GF’s Fotonix™ fabrication platform to develop the industry’s most robust and scalable AI interconnect solution. By integrating electronics and photonics into a single CMOS wafer, GF’s unique solution will enable the speed and efficiency needed for future AI data centers.
Original – GlobalFoundries
