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Renesas Electronics Reports Full Year 2018 Financial Results

Due to Repercussions of Inventory Buildup in FY17 and Impacts from Weakening End Demands, Full Year Sales Decreased Year-on-Year
FY19 to Generate Early Synergies from IDT Integration and Pursue Continued Thorough Cost and Cash Management in Preparation for the Continuing Weak End Demands in FY19

08 Feb 2019

Q4 2018: Non-GAAP(1) semiconductor sales of 183.8 billion yen, down 11.0% year-on-year. Non-GAAP gross margin of 40.9%, down 7.0 points year-on-year and Non-GAAP operating profits (margin) of 21.2 billion yen (11.3%), down 12.9 billion yen (4.9 points) year-on-year.
Full Year 2018: Non-GAAP semiconductor sales of 740.5 billion yen, down 3.3% year-on-year. Non-GAAP gross margin of 44.7%, down 2.1 points year-on-year and Non-GAAP operating profits (margin) of 110.6 billion yen (14.6%), down 17.5 billion yen (1.8 points) year-on-year.
Outlook for Q1 2019 (IFRS basis): Non-GAAP semiconductor sales within the range of 146.0 billion and 154.0 billion yen. Non-GAAP gross margin of 39%, based on the midpoint of forecasted sales.

TOKYO, Japan ― Renesas Electronics Corporation (TSE:6723, “Renesas”), a premier supplier of advanced semiconductor solutions, today reported the financial results for the fourth quarter ended December 31, 2018 (October 1, 2018 to December 31, 2018) and the financial results for the year ended December 31, 2018 (January 1, 2018 to December 31, 2018).

“In our full year 2018 and fourth quarter, our non-GAAP semiconductor sales decreased by 3.3% year-on-year, and the non-GAAP gross margin decreased by 2.1 points on a year-on-year basis. Our fourth quarter non-GAAP semiconductor sales decreased by 11.0% year-on-year, and non-GAAP gross margin decreased by 7.0 points on a year-on-year basis. Impacts from the weak market conditions as well as our continued efforts to restrain our production volume to achieve optimal inventory levels led to these decreases,” said Bunsei Kure, Representative Director, President and CEO, Renesas Electronics Corporation. “For the first quarter ending March 31, 2019, in light of the continued weak market, we expect semiconductor sales to decrease year-on-year and also foresee a drop in gross margin from a year-ago quarter. With uncertainties for sales in the short term, we will thoroughly control cash and improve operational efficiency and reduce costs through selective concentration of R&D. As for our growth strategy, we will update and announce our mid-term plan after the completion of IDT acquisition.”

For full article, please access link via : https://www.renesas.com/sg/en/about/press-center/news/2019/news20190208a.html