In the most recent quarter GlobalFoundries managed to grow sales
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In the most recent quarter, GlobalFoundries managed to grow sales by 14% even on the back of lower product shipments

Contract chipmaker GlobalFoundries became a public company not long ago, so study it quarterly reporting not as usual compared to competitors. Nonetheless, this allows us to assess some of the processes taking place in the industry. Even with a 7% decline in product shipments, the company still managed to grow sales 14% to a record $2.1 billion, beating analysts’ expectations.

    Image source: GlobalFoundries

Image source: GlobalFoundries

As management explained at the earnings conference, GlobalFoundries shipped no more than 580,000 300mm-equivalent-size silicon wafers in the fourth quarter of last year, down 7% from the result of the same period in 2021. At the same time, the average selling price increased of a record by 20%, reflecting both an increase in the number of long-term contracts with customers and a shift in demand towards more expensive products. The annual return rose from 21.5% to 30.1%. Operating income rose 231% to $288 million, while net income increased almost 15-fold to $668 million.

At the end of 2022, the number of silicon wafers shipped increased by 4% to 2.47 million pieces and sales increased by 23% to $8.1 billion. Operating profit of $1.17 billion. Net losses in 2021 were 254 million dollars and the company ended last year with a net income of $1.45 billion.

    Image source: GlobalFoundries

Image source: GlobalFoundries

Predictably, GlobalFoundries’ fourth-quarter revenue in the mobile device chips segment declined 7% year over year to $823 million, while personal computer revenue grew just 1% to $115 million is. 27% to $386 million, the automotive segment grew 24% to $115 million and the Internet of Things business grew a whopping 64% to $416 million.

Broadly speaking, the Internet of Things was also among the growth leaders for the year as revenue in that segment rose 68% to $1.483 billion, but the main contributor was the mobile devices segment, which grew revenue by 11% $3.723 billion year-end revenue down 38% to $299 million Incidentally, the server and telecom business grew revenue 43% to $1.423 billion, becoming the third-biggest contributor to revenue for GlobalFoundries overall year 2022.

Management said the contract maker added 10 more customers over the past year for long-term contracts totaling more than $5 billion. There have been downsizing, not to mention other expenses, but Going forward GlobalFoundries hopes to follow market trends and to be able to listen to customers’ requests.

For the current quarter, the company expects earnings of $1.81 billion to $1.85 billion, operating income of $233 million to $282 million and net income of $202 million to $257 million, which is generally in line with the market In line with expectations, the exchange rate for the company’s shares rose by 8.44% to $72 after the release of the financial statements.

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