The following is a summary of the Renesas Electronics Corporation (RNECF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Renesas reported Q1 2024 revenues of 351.8 billion yen, a decrease of 2.8% from the previous quarter, and a gross margin of 56.7%.

• The operating profit reached 113.5 billion yen, resulting in an operating profit margin of 32.3%.

• The company's attributable profit was 105.9 billion yen.

Business Progress:

• Renesas has restructured its approach from a product-based to a customer and application-focused one, primarily targeting automotive and industrial sectors.

• The acquisition of Altium is on schedule.

• Growth is expected in the automotive sector due to AI enhancements and the DDR5 transition while data center and infrastructure segments are already showing strong growth.

• The company is increasing inventory investment in anticipation of rising automotive sales.

• Despite a 6% market share decline in the MCU automotive sector, plans are underway to recover the loss over the next few years.

• Investments are channelled towards the transition to 40 nano technology to meet market demands.

• Renesas plans to strengthen its power segment in line with computing capabilities, rather than solely aiming for profit from power.

• With China contributing significantly to local design, despite some sourcing changes, the company aims to maintain its advantage in MCUs while responding to the shifting trends in the auto industry.

More details: RENESAS ELECTRONICS CORP IR

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