Renesas Electronics Corp. reported a 12.2% year-on-year decline in first-quarter revenue as the Japanese chipmaker continues to face softening demand and inventory adjustments in both automotive and industrial markets.
Revenue fell to 308.8 billion yen ($2 billion) in the quarter ended March 31, the Tokyo-based company said in a statement Thursday. While below year-ago levels, sales improved 5.5% from the previous quarter, suggesting early signs of stabilization after several quarters of deterioration.
The semiconductor manufacturer maintained a non-GAAP gross margin of 56.7%, unchanged from a year earlier, even as operating profit dropped to 83.8 billion yen, representing a 27.1% margin compared with 32.3% in the same period last year.
Automotive segment revenue, which accounts for about half of Renesas’ business, decreased 12.8% year-on-year to 155.3 billion yen. The industrial, infrastructure and IoT segment saw a similar 12.1% decline to 150.8 billion yen.
Looking ahead, Renesas forecast second-quarter revenue of approximately 302 billion yen, representing a 15.8% year-on-year decline but reflecting the typical seasonal patterns.
The company has been working to integrate its Altium acquisition while divesting non-core businesses, including the recent sale of its RF unit to India’s CG Power.
