TOKYO, Japan ― Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced the difference between its consolidated financial forecasts, which it disclosed on May 14, 2019, and the actual results, which it disclosed today, for the six months ended June 30, 2019 (the period from January 1, 2019 to June 30, 2019).
1. Difference between consolidated forecasts and actual results for the six months ended June 30, 2019
(January 1, 2019 to June 30, 2019)
In millions of yen
| Non-GAAP Sales Revenue | Non-GAAP Revenue from Semiconductors | Non-GAAP Gross Margin | Non-GAAP Operating Margin | |
|---|---|---|---|---|
| Previous forecasts (As of May 14, 2019) | 335,259 to 343,259 |
328,240 to 336,240 |
41.6% | 7.4% |
| Actual results | 342,884 | 335,707 | 42.4% | 10.1% |
| Increase | -375 to 7,625 |
-533 to 7,467 |
0.8pt | 2.7pts |
| Percent change | -0.1% to 2.3% |
-0.2% to 2.3% |
- | - |
| Reference: Results for the six months ended June 30, 2018 |
388,909 | 381,012 | 46.1% | 16.2% |
Note: Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS based) figures following a certain set of rules. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results, and therefore results are provided in non-GAAP base. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and costs relating to acquisitions, stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable.
2. Background to the difference
Although Non-GAAP sales revenue and Non-GAAP revenue from semiconductors of the consolidated results for the six months ended June 30, 2019 were within the forecast presented on May 14, 2019, Non-GAAP Gross Margin exceeded the previous forecast by 0.8pt and Non-GAAP Operating Margin exceeded the previous forecast by 2.7pts. The reason Non-GAAP Operating Margin largely exceeded previous forecast was mainly due to the effects of controlling costs such as R&D cost and SG&A costs.
Details that explain Renesas' announcement of financial results for the six months ended June 30, 2019 are disclosed in the Renesas press release: "Renesas Electronics Reports Financial Results for the Second Quarter Ended June 30, 2019 (PDF: 493 KB)" issued on August 6, 2019.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live. A global leader in microcontrollers, analog, power, and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, and YouTube.
Forward-Looking Statements
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.
The content in the press release, including, but not limited to, product prices and specifications, is based on the information as of the date indicated on the document, but may be subject to change without prior notice.