Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced the consolidated financial forecasts for the nine months ending September 30, 2019.
The Group reports its consolidated forecasts on a quarterly basis (cumulative quarters) as a range because of the difficulty of forecasting full-year results with high accuracy due to the short-term volatility of the semiconductor market.
Additionally, in order to provide useful information that will help to better understand the Group’s constant business results, figures such as sales, semiconductor sales and gross margin are presented in the non-GAAP format, which excludes or adjusts the non-recurring items related to acquisitions and other adjustments including non-recurring expenses or income from the figures based on GAAP (IFRS based) following a certain set of rules. The gross margin and operating margin forecasts are given assuming the midpoint in the net sales forecast.
1. Consolidated forecasts for the nine months ending September 30, 2019
(January 1, 2019 to September 30, 2019)
In millions of yen
| Non-GAAP Sales Revenue | Non-GAAP Revenue from Semiconductors | Non-GAAP Gross Margin | Non-GAAP Operating Margin | |
|---|---|---|---|---|
| Original forecasts | — | — | — | — |
| Forecasts as of August 6, 2019 | 526,884 to 534,884 |
516,407 to 524,407 |
43.3% | 12.4% |
| Increase (decrease) | — | — | — | — |
| Percent change | — | — | — | — |
| Reference: Corresponding period of the previous year (January 1, 2018 to September 30, 2018) | 568,767 | 556,582 | 45.4% | 14.9% |
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. In addition, as of the first quarter ended March 31, 2019, there has been a change in the Group’s auditor, and therefore, quarterly figures of the year ended December 31, 2018, provided under IFRS are not reviewed by the previous auditors. However, for each of the quarterly figures of the year ended December 31, 2018 provided under the generally accepted accounting principal in Japan (J-GAAP) have been reviewed by the Group’s previous auditor.
The figures of the consolidated forecasts for the nine months ending September 30, 2019 above are sum of the results of the six-month period ended June 30, 2019 and the forecasts of the three months ending September 30, 2019.
The consolidated forecasts for the nine months ending September 30, 2019 are calculated at the rate of 110 yen per USD and 124 yen per Euro.
The statements with respect to the financial outlook of the Group are forward-looking statements involving risks and uncertainties. The Company cautions you in advance that actual results may vary materially from such forward-looking statements due to several important factors.
Refer to Renesas Electronics’ earnings report “Renesas Electronics Reports Financial Results for the Second Quarter Ended June 30, 2019 (PDF: 493 KB)” issued on August 6, 2019 for more details.
SOURCE: Renesas
