Renesas Electronics Corp. posted better-than-expected sales in the first quarter of 2018 and higher net profit mainly due to production increase and cost-containment efforts, but said it will not pay a dividend for the first half.
Net sales rose to ¥185.9 billion in the quarter from ¥177.2 billion in the year-ago period on a Japan GAAP basis. Net income attributable to the shareholders of the parent company rose to ¥23.34 billion from ¥17.16 billion over the period.
Operating income declined to ¥20.6 billion from ¥22.12 billion.
The company, which manufactures semiconductor products, had projected net sales of ¥182.0 billion, net profit of ¥16 billion and operating income of ¥10.0 billion for the first quarter.
EPS totaled ¥14 in the first quarter, compared to ¥10.30 same quarter last year, versus an S&P Capital IQ consensus estimate of ¥8.67 per share for the first quarter, with five analysts reporting.
Non-GAAP EBITDA was ¥53.5 billion in the first quarter, up from ¥46.2 billion in the previous year. On a Japan GAAP basis, EBITDA totaled ¥52.3 billion, compared to ¥42.7 billion a year ago.
Net sales rose to ¥185.9 billion in the quarter from ¥177.6 billion in the year-ago period on a non-GAAP basis. Semiconductor sales rose 5.5% to ¥182.0 billion in the quarter from ¥172.6 billion in the prior year in non-GAAP terms, with a 32.3% sales growth in broad-based semiconductors.
Renesas Electronics posted non-GAAP operating income of ¥31.4 billion in the quarter, up from ¥29.1 billion in the previous year.
The semiconductor company expects net sales of ¥382.0 billion for the six months ending June 30 and operating income of ¥35.0 billion. Net income is expected to be ¥34.0 billion.
The group said it will not pay a dividend for the six months ending June 30 to divert its retained earnings for "strategic investment opportunities" that will enable the group to respond to environmental changes. In the long run, the group aims to realize "stable and sustained" growth in profits to allow dividends to be reinstated.
As of May 10, US$1 was equivalent to ¥109.58.