GlobalFoundries Clocks 23% Revenue Growth In Q2; Expands Margins

  • GlobalFoundries Inc GFS reported second-quarter FY22 revenue growth of 23% year-on-year to $1.99 billion, beating the consensus of $1.97 billion.
  • EPS of $0.48 beat the consensus of $0.45.
  • The adjusted gross margin expanded by 1,150 bps to 28%.
  • The adjusted operating margin grew by 1,510 bps to 17.6%.
  • The adjusted EBITDA margin increased by 1,050 bps to 39.3%.
  • GFS generated $609 million in operating cash flow and held $3.3 billion in cash and equivalents.
  • CEO Dr. Thomas Caulfield said, "We shipped a record 630 thousand wafers in the quarter, driven by double-digit growth at sites in the US and Europe. Our revenue grew 23% year-over-year, and we delivered record profitability, making significant progress towards our long-term financial model."
  • GFS extended its long-term agreement with Qualcomm Inc QCOM, adding over $4 billion in incremental wafer purchases from GF's Malta, New York facility. 
  • GFS and STMicroelectronics NV STM agreed to create a new, jointly-operated 300mm semiconductor manufacturing facility adjacent to ST's existing 300mm facility in Crolles, France. This new facility, combined with GF's capacity expansion in Dresden, Germany, will triple GF's capacity in Europe through 2028.
  • GlobalFoundries moved its first tool into the company's new facility on its Singapore campus.
  • Price Action: GFS shares closed higher by 11.5% at $59.19 on Monday.
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