Globalfoundries Inc (NASDAQ:GFS) stock fell 7.15% (As on May 11, 11:22:45 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the first quarter of FY 22. The company delivered adjusted gross margin of 25.3%, adjusted operating margin of 14.4%, adjusted net income of $232 million and record adjusted EBITDA margin of 36.0%. At the end of the quarter, Cash and cash equivalents were of $3.26 billion.
GFS in the first quarter of FY 22 has reported the adjusted earnings per share of 42 cents, beating the analysts’ estimates for the adjusted earnings per share of 24 cents. The company had reported the adjusted revenue growth of 37 percent to $1.94 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $1.9 billion.
For the second quarter, the company is expecting adjusted earnings to be in the range of 43 to 48 cents per share on revenue $1.96 billion to $1.99 billion. Wall Street was anticipating adjusted second-quarter earnings of just 27 cents per share on lower sales of $1.93 billion.
Meanwhile, GF announced GF Fotoni, its next-generation silicon photonics platform. GF is collaborating with industry leaders including Broadcom, Cisco Systems, Inc, Marvell and NVIDIA, along with breakthrough photonic leaders including Ayar Labs, Lightmatter, PsiQuantum, Ranovus and Xanadu, to deliver innovative, unique, feature-rich solutions to solve some of the biggest challenges facing data centers today. GF announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”), for Onsemi’s proposed acquisition of GF’s East Fishkill, NY site and fabrication facilities announced in 2019. The expiration of the HSR waiting period satisfies all of the necessary regulatory requirements and the transaction is on track to close at the end of 2022 as planned.
In addition, GF announced the appointment of Bobby Yerramilli-Rao as an independent director of the company’s board of directors. Dr. Yerramilli-Rao is currently chief strategy officer and corporate vice president at Microsoft, where he is responsible for developing and driving growth-oriented strategies.
On the other hand, the company has won a contract from the U.S. Department of Defense (DoD) to supply U.S.-made semiconductors for national security systems. The agreement will provide the DoD with a secure supply of semiconductors manufactured on GF’s 45 nm silicon-on-insulator (SOI) platform. Under the agreement, the semiconductors will be transferred to GF’s Fab 8 from GF’s Fab 10 in East Fishkill, New York.