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Microchip Technology Incorporated reported results for the three months ended June 30, 2024.
Net sales for the first quarter of fiscal 2025 were $1.241 billion, down 45.8% from net sales of $2.289 billion in the prior year’s first fiscal quarter.
GAAP net income for the first quarter of fiscal 2025 was $129.3 million, or $0.24 per diluted share, down from GAAP net income of $666.4 million, or $1.21 per diluted share, in the prior year’s first fiscal quarter. For the first quarters of fiscal 2025 and fiscal 2024, GAAP net income was adversely impacted by amortization of acquired intangible assets associated with our previous acquisitions.
Non-GAAP net income for the first quarter of fiscal 2025 was $289.9 million, or $0.53 per diluted share, down from nonGAAP net income of $905.3 million, or $1.64 per diluted share, in the prior year’s first fiscal quarter. For the first quarters of fiscal 2025 and fiscal 2024, our non-GAAP results exclude the effect of share-based compensation, other manufacturing adjustments, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our Microsemi acquisition), professional services associated with certain legal matters, and losses on the settlement of debt.
For the first quarters of fiscal 2025 and fiscal 2024, our nonGAAP income tax expense is presented based on projected cash taxes for the applicable fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act. A reconciliation of our non-GAAP and GAAP results is included in this press release.
Microchip announced that its Board of Directors declared a record quarterly cash dividend on its common stock of 45.4 cents per share, up 10.7% from the year ago quarter. The quarterly dividend is payable on September 5, 2024 to stockholders of record on August 22, 2024.
“We delivered June 2024 quarterly results in line with our guidance as we continued to navigate a challenging macro environment in combination with our customers focusing on reducing their inventory positions based on short lead times for our products,” said Ganesh Moorthy, President and Chief Executive Officer. “Our strategic cost management actions have helped maintain financial resilience and operational efficiency in the face of a 6.4% sequential revenue decline this quarter.”
Mr. Moorthy added, “While the ‘green shoots’ we observed last quarter have continued, they have not developed as robustly as anticipated. The macro environment particularly for industrial and automotive markets, especially in Europe and the Americas, continues to be weaker than expected, resulting in an extended period over which the inventory correction is playing out. Despite customers’ short-term focus on reducing inventory, we believe that our expanded portfolio, now spanning 8 to 64-bit processors including FPGAs as well as our analog portfolio, positions us well for sustainable, abovemarket growth across a diverse set of applications.”
Eric Bjornholt, Microchip’s Chief Financial Officer, said, “Despite market challenges, we have maintained our financial health through proactive cost and balance sheet management. While inventory levels exceeded our target range, which is reflective of broader challenging market conditions, we are confident that this inventory positions us well to service customers with short lead times. We believe that our inventory level along with our investment in capacity will allow us to cost-effectively respond when business conditions improve. Our strategy is designed to balance near-term challenges with long-term growth opportunities.”
Mr. Moorthy concluded, “Despite the green shoots we observed last quarter developing slower than expected, we do see additional positive business signals, like an uptick in our Data Center business. While in-quarter orders remain crucial for meeting guidance, as is typical in this high-turns environment, uncertain market conditions add complexity to forecasting. As a result, we anticipate September quarter net sales between $1.12 billion and $1.18 billion. We are navigating these unusual market conditions with a balance of prudence and readiness to be well-positioned to capitalize on upside opportunities. Despite near-term inventory and macro challenges, our design-in pipeline and momentum remains strong across markets, driven by our customers’ innovation focus. This design momentum, amplified by our focus on Total System Solutions and key Megatrends, is our engine for long-term growth.”
Original – Microchip Technology
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Axcelis Technologies, Inc. announced financial results for the second quarter ended June 30, 2024. The Company reported second quarter revenue of $256.5 million, compared to $252.4 million for the first quarter of 2024. Gross margin for the quarter was 43.8%, compared to 46.0% in the first quarter. Operating profit for the quarter was $52.8 million, compared to $56.5 million for the first quarter. Net income for the quarter was $50.9 million, or $1.55 per diluted share, compared to $51.6 million, or $1.57 per diluted share in the first quarter.
President and CEO Russell Low commented, “Axcelis delivered strong financial results in the second quarter, exceeding our expectations. This was driven by better-than-expected conversion of evaluation units into revenue as well as continued robust demand in our Power segment – particularly silicon carbide, which continues to be a key growth driver for Axcelis. We are well positioned to execute on our long-term strategy. As we look to the second half of the year, we expect revenue to be slightly better than the first half with momentum expected to build into 2025.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are very pleased with our second quarter results. Revenue, operating margin and earnings per share exceeded our guidance for the period, and we delivered another quarter of healthy cash flow. Our product positioning and our disciplined cost structure provide a solid foundation on which to grow revenue and profitability as our markets recover.”
Business Outlook
For the third quarter ending September 30, 2024, Axcelis expects revenues of approximately $255 million, and earnings per diluted share of approximately $1.43.Original – Axcelis Technologies
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Magnachip Semiconductor Corporation announced financial results for the second quarter 2024.
YJ Kim, Magnachip’s CEO, commented, “Our Q2 revenue was above the mid-point of guidance and gross margin was better than expected. Revenue in our Standard Products Business, which is comprised of our MSS and PAS businesses, increased sequentially by double digits in Q2. We benefited from a recovery in our Power business, increased demand for OLED drivers for China smartphones and European autos, and an upturn in Power IC demand for OLED IT panels and LED TVs.”
YJ Kim added, “Looking ahead, we currently expect Standard Product Business revenue will increase sequentially once again in Q3, driven by leaner distribution channels in Power, as well as seasonality, and an increase in OLED and Power IC businesses.”
Financial Highlights
- Q2 consolidated revenue was $53.2 million, above the mid-point of guidance range of $49-54 million.
- Q2 standard product business revenue was up 11.6% sequentially.
- Q2 consolidated gross profit margin was 21.8%, above the upper end of guidance range of 17-19%.
- Q2 standard product business gross profit margin was 23.1%, up nearly two percentage points sequentially.
- Ended Q2 with cash of $132.5 million; and also have an additional short-term financial investment of $30 million.
- Repurchased approximately 0.5 million shares for aggregate purchase price of $2.3 million during the quarter.
Operational Highlights
- Held formal opening ceremony in China for newly formed subsidiary, Magnachip Technology Company, Ltd. (MTC).
- Secured a purchase commitment for OLED driver targeted for a premium smartphone OEM; mass production and revenue currently expected to begin by year-end.
- Delivered samples of our next-generation OLED driver to a panel supplier for a leading Chinese smartphone OEM’s winter 2024 model, now in the final design validation phase.
- Taped out a new OLED driver designed with next-generation IP including sub-pixel rendering (SPR), refined color enhancement, color filter, brightness uniformity control and more than 20% reduction in power consumption than previous generation.
- Sampled our first OLED smartwatch DDIC in Q2 following a Q1 tape-out, demonstrating our expansion into new, adjacent markets.
- Power IC revenue increased sequentially, driven primarily by demand for LCD TVs and OLED IT monitors.
- Sequential revenue growth in PAS segment was driven by industrial, communication and consumer applications. Automotive rebounded with new design wins in Japan and China.
- Launched new 75A/1200V IGBT for a design opportunity in solar applications; expected to begin mass production in the second half of the year.
Original – Magnachip Semiconductor
- Q2 consolidated revenue was $53.2 million, above the mid-point of guidance range of $49-54 million.
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Amkor Technology, Inc. announced financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Net sales $1.46 billion
- Gross profit $212 million, operating income $82 million
- Net income $67 million, earnings per diluted share $0.27
- EBITDA $247 million
“Amkor delivered second quarter results in line with expectations. Revenue of $1.46 billion was up 7% sequentially, driven by Advanced packaging supporting premium tier smartphones and AI solutions utilizing 2.5D technology,” said Giel Rutten, Amkor’s president and chief executive officer. “Strength in the Communications and Computing end markets was partially offset by soft demand and ongoing inventory corrections in the Automotive & Industrial and Consumer end markets.”
At June 30, 2024, total cash and short-term investments was $1.5 billion, and total debt was $1.1 billion.
The company paid a quarterly dividend of $0.07875 per share on June 24, 2024. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors.
Business Outlook
The following information presents Amkor’s guidance for the third quarter 2024 (unless otherwise noted):
- Net sales of $1.785 billion to $1.885 billion
- Gross margin of 14.0% to 16.0%
- Net income of $105 million to $140 million, or $0.42 to $0.56 per diluted share
- Full year 2024 capital expenditures of approximately $750 million
Original – Amkor Technology
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DENSO announced global financial results for its first quarter, ending June 30, 2024, for its 2025 fiscal year, ending March 31, 2025:
- Consolidated revenue totaled 1,753.8 billion yen (US$10.9 billion), a 2.4 percent increase from the previous year.
- Consolidated operating profit totaled 120.6 billion yen (US$0.7billion), a 27.7 percent increase from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 94.5billion yen (US$0.6billion), a 10.5 percent increase from the previous year.
“Revenue in the first quarter increased compared to the previous year, due in part to slowing depreciation of the yen, though suspensions of operations by Japanese customers and lower vehicle production volumes due to poor vehicle sales in Asia did affect overall performance. Operating profit in the first quarter increased compared to the previous year due to foreign exchange gains and improvement efforts though lower production volumes.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION.
“In this fiscal year, we forecast 7,330.0 billion yen (US$45.5 billion) in revenue and 692.0 billion yen (US$4.3 billion) in operating profit. In the first quarter, due to the idling of Japanese customers and lower vehicle production volumes in Asia, both sales revenue and operating profit decreased compared to the announced forecast at the beginning of the year. And from the second quarter onward, the impact of suspended operations by customers in Japan is expected to be reduced, but poor vehicle sales, especially in Asia, are expected to continue. On the other hand, the yen is also expected to continue to depreciate. As we navigate these uncertainties, we commit to execute our plan from the second quarter onward announced at the beginning of the year. Based on the above, our forecast of revenue and operating profit reflects only the downside of the first quarter and revise full-year financial forecast downward.”
- In Japan, revenue increased to 984.6illion yen (US$6.1 billion), up 0.4% from the previous year, and operating profit was 45.1 billion yen (US$280.0 million), up 81.6% from the previous year.
- In North America, revenue increased to 500.1 billion yen (US$3.1 billion), up 17.7% from the previous year, and operating profit was 23.3 billion yen (US$144.6 million) up 270.2% from the previous year.
- In Europe, revenue increased to 199.8 billion yen (US$1.2 billion), up 0.7% from the previous year, and operating profit was 5.0 billion yen (US$31.0 million), down 33.0% from the previous year.
- In Asia, revenue increased to 461.4 billion yen (US$2.9 billion), down 0.6% from the previous year and operating profit was 35.8 billion yen (US$222.0 million), down 11.7% from the previous year.
- In other areas, revenue increased to 29.0 billion yen (US$0.2 billion), up 1.8% from the previous year, and operating profit was 5.9 billion yen (US$36.9 million), up 19.5% from the previous year.
Original – DENSO
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Littelfuse, Inc. reported financial results for the second quarter ended June 29, 2024:
- Net sales of $558 million were down 9% versus the prior year period, and down 8% organically
- GAAP diluted EPS was $1.82 and adjusted diluted EPS was $1.97
- Cash flow from operations was $69 million and free cash flow was $50 million
- The company’s Board of Directors approved an 8% increase in the quarterly cash dividend from $0.65 to $0.70; this equates to an annualized dividend of $2.80 per share
- On June 26, the company released its 2023 Sustainability Report on littelfuse.com/about-us/sustainability
“We are pleased to have exceeded the high end of our second quarter sales and adjusted EPS guidance ranges, driven by solid execution from our global teams and supported by our resilient business model and diverse technology positioning.” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Looking ahead, we remain confident in an expected return to growth during 2024, likely in the fourth quarter. We see some pockets of normalized channel inventory and improving end demand but also ongoing signs of cautiousness from customers. We remain well positioned to execute our proven long-term growth strategy and deliver top tier stakeholder value.”
Original – Littelfuse
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Mitsubishi Electric Corporation announced its consolidated financial results for the first quarter, ended June 30, 2024, of the current fiscal year ending March 31, 2025 (fiscal 2025).
- Q1 FY25: Revenue ¥1,286.4 bn (+¥66.1 bn YoY), Operating Profit ¥58.6 bn (-¥2.3 bn YoY)
- Revenue achieved a new record high due primarily to an increase in the infrastructure segment and the impact of the weaker yen.
- Operating profit remained at the same level YoY due to the impact of a decrease in volume in the factory automation systems business and the impact of rising material and other procurement costs.
- FY25 forecast: Revenue ¥5,390.0 bn (+¥90.0 bn compared to the previous forecast), Operating Profit ¥400.0 bn (unchanged from the previous announcement)
- The revenue forecast has been revised upward partly due to a reconsideration of foreign exchange rates, while incorporating the impact of the delay in market recovery for factory automation systems.
- The company will steadily implement initiatives to achieve earnings targets, including improvements in product prices to reflect the impact of rising procurement costs.
Semiconductor & Device Segment
Revenue (YoY), Billions of yen Operating profit (YoY),
Billions of yenOperating profit margin (YoY), Billions of yen 74.5(+6.3) 11.5(+4.8) 15.5%(+5.7pt) - The market saw robust demand for power modules used in railway & power transmission applications.
- Orders decreased YoY due primarily to a decrease in power modules. Revenue increased YoY due mainly to the impact of the weaker yen as well as an increase in power modules used in automotive applications and other factors.
- Operating profit increased YoY due mainly to increased revenue.
Original – Mitsubishi Electric
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Qorvo® announced financial results for the Company’s fiscal 2025 first quarter ended June 29, 2024.
Strategic Highlights
- Grew quarterly revenue 36% year-over-year and exceeded mid-point of revenue guidance by $37 million
- Transitioned Beijing and Dezhou operations to Luxshare and integrated Anokiwave into Qorvo
On a GAAP basis, revenue for Qorvo’s fiscal 2025 first quarter was $887 million, gross margin was 37.5%, operating income was $4.6 million, and diluted earnings per share was $0.00. On a non-GAAP basis, gross margin was 40.9%, operating income was $98.1 million, and diluted earnings per share was $0.87.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, “During the June quarter, we fully integrated Anokiwave into Qorvo, adding silicon beam-forming ICs and IF-RF conversion products. We are investing in technology leadership to broaden our market exposure and drive growth, and we are executing on cost and productivity initiatives to structurally enhance our gross margin.”
Financial Commentary and Outlook
Grant Brown, chief financial officer of Qorvo, said, “Qorvo exceeded the mid-point of June quarterly guidance for revenue, gross margin and EPS. For the September quarter, we expect sequential increases in revenue, gross margin and EPS. We are leveraging internal factories which are critical differentiators for each of our operating segments, while outsourcing to our robust foundry and OSAT partner network where we benefit from their scale and R&D investments.”
Qorvo’s current outlook for the September 2024 quarter is:
- Quarterly revenue of approximately $1.025 billion, plus or minus $25 million
- Non-GAAP gross margin between 46% and 47%
- Non-GAAP diluted earnings per share between $1.75 and $1.95
Original – Qorvo®
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onsemi announced results for the second quarter of 2024 with the following highlights:
- Revenue of $1,735.2 million
- GAAP gross margin and non-GAAP gross margin of 45.2% and 45.3%, respectively
- GAAP operating margin and non-GAAP operating margin of 22.4% and 27.5%, respectively
- GAAP diluted earnings per share and non-GAAP diluted earnings per share of $0.78 and $0.96, respectively
- Returned ~$650 million of free cash flow over last twelve months to shareholders through stock repurchases
“We remain dedicated to driving growth through market share gains, doubling down on investments in strategic markets, and expanding the breadth of our portfolio of industry-leading products with analog and mixed-signal solutions,” said Hassane El-Khoury, president and CEO, onsemi. “As reflected by our recent supply agreement with Volkswagen Group, we also continue to strengthen our silicon carbide leadership position in automotive as we ramp production with leading global OEMs in Europe, North America and China.”
Original – onsemi
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As expected, Siltronic AG’s business performance in Q2 2024 was again characterized by weak demand in the wafer market, which resulted from continued increased inventories in the chip industry. Due to the lower wafer area sold, half-year sales of EUR 694.8 million were significantly lower than in the same period of the previous year (H1 2023: EUR 808.2 million). However, at EUR 351.3 million, sales in Q2 2024 slightly exceeded the previous quarter (Q1 2024: EUR 343.5 million) by 2.3 percent.
“Q2 was in line with expectations. On a positive note, the end markets, partially driven by Artificial Intelligence, will grow this year. However, this is not yet reflected in our order situation due to still elevated inventory levels. We are pleased that we were able to slightly increase our sales in Q2 compared to the previous quarter and continued to achieve a solid EBITDA margin of 25.8 percent,” comments Dr. Michael Heckmeier, CEO of Siltronic, on the development.
Business development in H1 2024 influenced by weak demand, sales prices almost stable
In Q2 2024, Siltronic generated sales of EUR 351.3 million, up 2.3 percent on the previous quarter (Q1 2024: EUR 343.5 million) due to the increase in wafer area sold. Sales prices were almost unchanged quarter-on-quarter. Sales of EUR 694.8 million were generated in H1 2024 (H1 2023: EUR 808.2 million). The decline is primarily due to the lower sales volume. Price and currency effects had no significant impact in the half-year comparison.
On the cost side, the increase in wafer area sold and higher depreciation due to investments had a particularly noticeable impact on the quarter-on-quarter comparison. As expected, a small loss from currency hedging transactions was recognized in the other operating result in Q2.
As a result, EBITDA in Q2 2024 remained almost unchanged compared to the previous quarter at EUR 90.6 million (Q1 2024: EUR 90.8 million) despite a slight increase in sales. At 25.8 percent, the EBITDA margin remained at a solid level (Q1 2024: 26.4 percent). In a half-year comparison, EBITDA fell to EUR 181.4 million (H1 2023: EUR 243.8 million), mainly due to lower demand, and reached a margin of 26.1 percent (H1 2023: 30.2 percent).
The decline in costs due to the lower sales volume was mitigated by a lower fixed cost dilution, and a lower currency hedging result was also noticeable in the half-year comparison. In addition, H1 2024 saw an increase in depreciation and amortization.
Net profit for the period fell from EUR 27.7 million in Q1 2024 to EUR 22.4 million in Q2 and from EUR 133.9 million in H1 2023 to EUR 50.1 million in H1 2024. In addition to the effects described above, a lower financial result due to investments contributed to the reduction. Earnings per share amounted to EUR 0.73 in Q2 2024 and EUR 1.59 in H1 2024.
Net assets and financial position still affected by high investments
With an equity ratio of 46.5 percent as of June 30, 2024, Siltronic continues to have a good balance sheet quality (December 31, 2023: 46.6 percent). Cash and cash equivalents and short-term financial investments fell by EUR 129.5 million to EUR 327.4 million in H1 2024.
This was due to net payments for investments of EUR 411.2 million with a focus on the new 300 mm fab in Singapore and the dividend payment of EUR 36.0 million to Siltronic AG’s shareholders. In the same period, these payments were opposed by cash inflows of EUR 171.4 million from operating activities and cash inflows of EUR 150.0 million from a loan that was partially drawn.
Due to the high level of investments, the net cash flow fell to EUR -252.8 million and was negative, as expected. Accordingly, net financial debt increased by a total of EUR 283.5 million to EUR 639.2 million compared to December 31, 2023.
Guidance for 2024
The Executive Board of Siltronic AG has specified its guidance published at the end of April and now expects Group sales to decline by a high single-digit percentage compared to the previous year. With a view to the financial year 2024, this is primarily due to lower volumes as well as each slightly negative exchange rate- (EUR/USD 1.10), price- and product mix effects.
The EBITDA margin is expected to be at the upper end of the previously communicated range of 23 to 25 percent. However, the EBITDA margin in H2 will not reach the level of H1. Profitability in H2 will be impacted by both slightly negative price and product mix effects as well as ramp costs for the new Singapore fab, which will start to impact earnings in Q4.
In addition, one production line is scheduled for maintenance in Q4, which will be bridged by inventory reductions and will also have a negative impact on the margin. Capex is expected to be in the range of EUR 500 million to EUR 530 million, with depreciation and amortization below EUR 300 million.
Original – Siltronic
