TOKYO — (BUSINESS WIRE) — February 7, 2019 — Renesas Electronics Corporation (“the Group”, TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced the consolidated financial forecasts for the three months ending March 31, 2019.
The Group reports its consolidated forecasts on a quarterly basis (cumulative quarters) because of the difficulty of forecasting full-year results with high accuracy due to the short-term volatility of the semiconductor market.
To increase the international comparability of financial information in the capital market as the Group expands its business globally, the Group has decided at the Meeting of the Board of Directors held on November 28, 2018 that it will voluntarily adopt the International Financial Reporting Standards (“IFRS”) to its consolidated financial statements starting from the annual securities report for the fiscal year ending December 31, 2018.
Further, starting from the consolidated forecasts for the three months ending March 31, 2019, the Group will present its financial forecasts as a range. 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 will be presented in the non-GAAP format, which excludes or adjusts the non-recurring items related to acquisitions and other adjustments removed as non-recurring expenses or income. It should be noted that the gross margin and operating margin forecasts are given assuming the midpoint in the net sales forecast.
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1. Consolidated forecasts for the three months ending March 31, 2019 |
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(January 1, 2019 to March 31, 2019) |
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Non-GAAP
Net Sales |
Non-GAAP
Semiconductor Sales |
Non-GAAP
Gross Margin |
Non-GAAP
Operating Margin |
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Forecasts as of
February 8, 2019 |
(Million yen)
149,500 – 157,500 |
(Million yen)
146,000
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(%)
39.0 |
(%)
4.5 |
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| (*1) | The consolidated forecasts for the three months ending March 31, 2019, are calculated based on IFRS, on the decision that the Group will voluntarily adopt IFRS as of the annual securities report for the fiscal year ended December 31, 2018. As the Japanese GAAP was used to calculate the results, comparisons for the three months ended March 31, 2018 are not provided. | |
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Non-GAAP figures are calculated by adjusting or removing non-recurring items and other adjustments from GAAP figures. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results, and therefore forecasts are provided in non-GAAP base. This adjustment and exclusion include the depreciation 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.
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