GlobalFoundries gets half its revenue from mobile device manufacturers

Having reported its third-quarter results the day before, the American company GlobalFoundries admitted a 6% year-on-year decline in total revenue to $1.74 billion, although it grew 7% sequentially. At the same time, the share of GlobalFoundries’ revenue received in the mobile devices segment increased from last year’s 42 to 50%, and revenue itself in this segment increased by 11%.

Image source: GlobalFoundries

In fact, no other market segment served by GlobalFoundries posted year-over-year revenue increases in the third quarter. Mobile revenue not only grew 11% year-over-year to $868 million, it increased 14% sequentially. All of the company’s other businesses saw revenue decline year-on-year, although some grew sequentially.

In the telecommunications and server infrastructure segment, GlobalFoundries generated revenue of $133 million, which is 15% less than the results of the same quarter of the previous year, and 14% less than the results of the previous quarter. The second largest revenue segment is the home and industrial Internet of Things business, which brought in $308 million for the company. This is 25% less than in the third quarter of last year, but 4% more on a sequential basis.

The automotive division brought GlobalFoundries $256 million in revenue, which is 16% less than last year’s result, and sequentially it decreased by 5%. The company’s report also contains a line that is not related to revenue from processing silicon wafers. It generated only $174 million in revenue, reducing it by 16% year-on-year and increasing by 15% sequentially. If we talk about the supply of silicon wafers, in physical terms they decreased by 5% year-on-year to 549,000 units.

The company’s operating profit decreased by 29% to $185 million, net profit decreased proportionally to $178 million. In the current quarter, GlobalFoundries expects revenue from $1.8 to $1.85 billion, the operating profit range is set at $177 to $256 million, net profit – from $161 to $236 million. These values ​​were higher than investors’ expectations, which caused an increase in the GlobalFoundries share price by almost 10% before the start of the main trading session. Growing demand for mobile devices should contribute to a further increase in the company’s revenue in the corresponding line of business.