Gross profit totaled $846 million, representing a year-over-year increase of 3.5%. Gross margin of 37.9% decreased 150 basis points year-over-year, mainly impacted by price pressure and unsaturation charges, including COVID-19 workforce related restrictions. First quarter gross margin was 10 basis points lower than the mid-point of the Company’s guidance.
Operating income increased 9.4% to $231 million, compared to $211 million in the year-ago quarter. The Company’s operating margin increased 20 basis points on a year-over-year basis to 10.4% of net revenues, compared to 10.2% in the 2019 first quarter.
By product group, compared with the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue decreased in both Automotive and Power Discrete.
- Operating profit decreased by 76.4% to $23 million. Operating margin was 3.0% compared to 10.6%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Imaging and Analog and was substantially flat in MEMS.
- Operating profit increased by 313.1% to $177 million. Operating margin was 20.8% compared to 7.8%.
Microcontrollers and Digital ICs Group (MDG):
- Revenue increased in Microcontrollers and decreased in Digital ICs.
- Operating profit decreased by 13.5% to $71 million. Operating margin was 11.5% compared to 13.4%.
Net income and diluted earnings per share increased to $192 million and $0.21, respectively, compared to $178 million and $0.20, respectively, in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q1 2020 | Q4 2019 | Q1 2019 | Q1 2020 | Q1 2019 | TTM Change |
| Net cash from operating activities | 399 | 775 | 341 | 1,927 | 1,730 | 11.4% |
| Free cash flow (non-U.S. GAAP) | 113 | 461 | (67) | 677 | 370 | 83.0% |
Capital expenditure payments, net of proceeds from sales, were $266 million in the first quarter. In the year-ago quarter, capital expenditures, net, were $322 million.
