MALTA, N.Y., May 07, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries Inc. (GF) (NASDAQ:GFS) today announced preliminary financial results for the first quarter ended March 31, 2024. Key First Quarter Financial Highlights Revenue of $1.549 billion Gross margin of 25.4% and Non-IFRS gross margin(1) of 26.1% Operating margin of 9.5% and Non-IFRS operating margin(1) of 12.1% Net income of $134 million and Non-IFRS net income(1) of $174 million Non-IFRS EBITDA(1) of $577 million Cash, cash equivalents and marketable securities of $4.2 billion "In the first quarter, GF's dedicated teams across the world delivered financial results that exceeded the high end of the guidance ranges we provided in our February earnings release," said Dr. Thomas Caulfield, president and CEO of GF. "As pockets of the semiconductor industry begin to emerge from the inventory correction, our teams are driving foundry innovation and differentiation for our customers across their essential end-markets. We are delighted with the awards from both the U.S. Department of Commerce and New York State to expand our manufacturing capability in the United States, which will complement our unique global capacity offering." Recent Business Highlights As part of the U.S. CHIPS and Science Act, the U.S. Department of Commerce announced $1.5 billion in planned direct funding for GF's New York and Vermont facilities. The proposed funding will support expansion and technology diversification, enabling secure capacity for automotive, aerospace and defense and other key markets. In addition, New York State announced over $600 million in planned funding under the New York State Green CHIPS and other state benefits for GF's two Malta, New York projects. GF is furthering its commitment to sustainable operations and fighting climate change with the announcement of two new long-term goals to achieve net-zero greenhouse gas emissions and 100% carbon neutral power by 2050. The new 2050 goals are aligned with Paris Agreement goals and build upon GF's Journey to Zero Carbon pledge in 2021. (1) Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS EBITDA and any related margins are all Non-IFRS measures. See "Unaudited Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for a discussion of why we believe these Non-IFRS measures are useful. Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments)                 Year-over-year   Sequential     Q1'24   Q4'23   Q1'23   Q1'24 vs Q1'23   Q1'24 vs Q4'23                           Net revenue   $ 1,549     $ 1,854     $ 1,841     $ (292 ) (16)%   $ (305 ) (16)%                           Gross profit     393       525       515     $ (122 ) (24)%   $ (132 ) (25)% Gross margin     25.4 %     28.3 %     28.0 %     (260)bps     (290)bps                           Non-IFRS gross profit(1)   $ 405     $ 537     $ 525     $ (120 ) (23)%   $ (132 ) (25)% Non-IFRS gross margin(1)     26.1 %     29.0 %     28.5 %     (240)bps     (290)bps                           Operating profit   $ 147     $ 303     $ 290     $ (143 ) (49)%   $ (156 ) (51)% Operating margin     9.5 %     16.3 %     15.8 %     (630)bps     (680)bps                           Non-IFRS operating profit(1)   $ 187     $ 383     $ 326     $ (139 ) (43)%   $ (196 ) (51)% Non-IFRS operating margin(1)     12.1 %     20.7 %     17.7 %     (560)bps     (860)bps                           Net income   $ 134     $ 278     $ 254     $ (120 ) (47)%   $ (144 ) (52)% Net income margin     8.7 %     15.0 %     13.8 %     (510)bps     (630)bps                           Non-IFRS net income(1)   $ 174     $ 356     $ 290     $ (116 ) (40)%   $ (182 ) (51)% Non-IFRS net income margin(1)     11.2 %     19.2 %     15.8 %     (460)bps     (800)bps                           Diluted earnings per share ("EPS")   $ 0.24     $ 0.50     $ 0.46     $ (0.22 ) (48)%   $ (0.26 ) (52)%                           Non-IFRS diluted EPS(1)   $ 0.31     $ 0.64     $ 0.52     $ (0.21 ) (40)%   $ (0.33 ) (52)%                           Non-IFRS EBITDA(1)   $ 577     $ 773     $ 655     $ (78 ) (12)%   $ (196 ) (25)% Non-IFRS EBITDA margin(1)     37.2 %     41.7 %     35.6 %     +160bps     (450)bps                           Cash from operations   $ 488     $ 684     $ 479     $ 9   2 %   $ (196 ) (29)%                           Wafer shipments (300mm equivalent) (in thousands)     463       552       511       (48 ) (9)%     (89 ) (16)%                           (1) Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS diluted EPS, Non-IFRS EBITDA, and any related margins are all Non-IFRS measures. See "Unaudited Reconciliation of IFRS to Non-IFRS" section for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for a discussion of why we believe these Non-IFRS metrics are useful. Summary of Second Quarter 2024 Guidance (unaudited in millions USD, except per share amounts)(1)   IFRS   Share-based compensation   Non-IFRS (2) Net revenue $1,590 - $1,640   —   — Gross profit $367 - $413   $13 - $15   $382 - $426 Gross margin(3) (mid-point) 24.1%       25.0% Operating profit $94 - $168   $45 - $55   $149 - $213 Operating margin(3) (mid-point) 8.1%       11.2% Net income $78 - $146   $45 - $55   $133 - $191 Net income margin(3) (mid-point) 6.9%       10.0% Diluted EPS $0.14 - $0.26       $0.24 - $0.34 (1) The Guidance provided above contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The Guidance includes management's beliefs and assumptions and is based on information currently available. (2) Non-IFRS gross profit, Non-IFRS operating expense, Non-IFRS operating profit, Non-IFRS net income, and Non-IFRS diluted EPS are Non-IFRS metrics and, for purposes of the Guidance only, are defined as gross profit, operating profit, net income, and EPS before share-based compensation, respectively. Non-IFRS operating expense is calculated by subtracting Non-IFRS operating profit from Non-IFRS gross profit. (3) Non-IFRS margins are Non-IFRS metrics and for purposes of the Guidance only, are defined as Non-IFRS gross profit, Non-IFRS operating profit and Non-IFRS net income, each divided by net revenue (using the definitions of Non-IFRS gross profit, Non-IFRS operating profit, and Non-IFRS net income, in footnote (2) above, as appropriate). Unaudited Consolidated Statements of Operations     Three Months Ended (in millions USD, except for per share amounts)   March 31, 2024   March 31, 2023           Net revenue   $ 1,549