Q2 2024 GlobalFoundries Inc Earnings Call Transcript
Key Points
- Revenue for the second quarter increased sequentially to $1.632 billion, exceeding the midpoint of guidance.
- Non-IFRS gross margin of 25.2% in the quarter, surpassing the midpoint of guidance.
- Non-IFRS diluted earnings per share of $0.38, exceeding the high end of guidance.
- Strong cash flow generation with over $500 million of non-IFRS adjusted free cash flow in the first half of the year.
- Completion of the acquisition of Tagore Technology's gallium nitride power business, enhancing future growth opportunities.
- Year-over-year revenue decreased by 12%, primarily due to lower shipments and utilization levels.
- Utilization levels remained in the low to mid-70s, impacting overall profitability.
- Revenue from the home and industrial IoT markets decreased by 28% year-over-year due to elevated channel inventories.
- Gross margin guidance for the third quarter reflects continued low utilization levels.
- Ongoing inventory corrections in key markets like IoT and communications infrastructure are expected to persist through 2024.
Good day, and thank you for standing by. Welcome to the GlobalFoundries conference call to review second quarter of fiscal year 2024 financial results. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Sam Franklin, VP of Business Finance and Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to GlobalFoundries' second quarter 2024 earnings call. On the call with me today are Dr. Thomas Caulfield, CEO; John Hollister, CFO; and Niels Anderskouv, Chief Business Officer. A short while ago, we released GF's second quarter financial results, which are available on our website at investors.gs.com, along with today's accompanying slide presentation. This call is being recorded and a replay will be made available on our Investor Relations webpage.
During this call, we will present both IFRS and non-IFRS
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