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Renesas Electronics Reports First Quarter 2019 Financial Results



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Due to Weakening Market and Channel Inventory Adjustments, First
Quarter Revenue Decreased Year-on-Year

Second Quarter Revenue to See Significant Increase from IDT
Integration and Seasonality

Renesas to Pursue Continued Thorough Cost and Cash Management in
Preparation Against Continuing Weak End Demands

  • Q1 2019: Non-GAAP(1) revenue from semiconductors of 146.7
    billion yen, down 19.4% year-on-year. Non-GAAP gross margin of 39.3%,
    down 8.2 points year-on-year and Non-GAAP operating profits (margin)
    of 7.2 billion yen (4.8%), down 22.9 billion yen (11.4 points)
  • Outlook for Q2 2019: Non-GAAP revenue from semiconductors within the
    range of 181.5 billion and 189.5 billion yen with the IDT integration(2).
    Non-GAAP gross margin of 43.5%, based on the midpoint of forecasted

TOKYO–(BUSINESS WIRE)–lt;a href=”” target=”_blank”gt;#earningslt;/agt;–Renesas Electronics Corporation (TSE:6723, “Renesas”), a premier
supplier of advanced semiconductor solutions, today reported the
financial results for the first quarter ended March 31, 2019 (January 1,
2019 to March 31, 2019).

“In our first quarter, our non-GAAP revenue from semiconductors
decreased by 19.4% year-on-year, and the non-GAAP gross margin decreased
by 8.2 points on a year-on-year basis. Impacts from the weak market
conditions as well as our continued efforts to achieve optimal inventory
levels at our channels led to these decreases,” said Bunsei Kure,
Representative Director, President and CEO, Renesas Electronics
Corporation. “For the second quarter ending June 30, 2019, although
revenue from semiconductors is expected to increase significantly on a
sequential basis from to the IDT integration and seasonality, we expect
sales to decrease in light of the continued weak markets surrounding
industrial applications on a year-on-year basis. We also expect a
year-on-year decrease in our Non-GAAP gross margin. With uncertainties
for sales in the short term, we will thoroughly control cash and improve
operational efficiency and reduce costs through selective concentration
of R&D.”


Quarterly Financial Summary (Billion yen)

Non-GAAP Basis     Q1 FY2019

(Jan-Mar 2019)

    Q4 FY2018(3)

(Oct-Dec 2018)

    Q1 FY2018

(Jan-Mar 2018)

    QoQ     YoY
Revenue     150.3     187.7     185.6     -20.0%     -19.0%
Revenue from Semi.     146.7     183.7     182.0     -20.1%     -19.4%
Gross Margin     39.3%     40.5%     47.5%     -1.2pts     -8.2pts
Operating Income     7.2     19.4     30.1     -12.3     -22.9
Operating Margin     4.8%     10.4%     16.2%     -5.6pts     -11.4pts
EBITDA(3)     32.3     43.4     53.7     -11.0     -21.4
GAAP Basis


    Q1 FY2019

(Jan-Mar 2019)

    Q4 FY2018

(Oct-Dec 2018)

    Q1 FY2018

(Jan-Mar 2018)

    QoQ     YoY
Revenue     150.3     187.7     185.6     -20.0%     -19.0%
Revenue from Semi.     146.7     183.7     182.0     -20.1%     -19.4%
Gross Margin     38.1%     40.5%     46.7%     -2.4pts     -8.7pts
Operating Income     -1.3     -1.1     23.4     -0.2     -24.6
Operating Margin     -0.8%     -0.6%     12.6%     -0.3pt     -13.4pts
EBITDA(4)     28.0     27.1     51.5     +0.9     -23.5



Non-GAAP Basis: Non-GAAP figures are calculated by removing
or adjusting non-recurring items and other adjustments from GAAP
figures following a certain set of rules. The Group believes
non-GAAP measures provide useful information in understanding and
evaluating the Group’s constant business results, and therefore
results are provided in non-GAAP base. This adjustment and
exclusion include the amortization of intangible assets recognized
from acquisitions, other PPA (purchase price allocation)
adjustments and costs relating to acquisitions, stock-based
compensation, as well as other non-recurring expenses and income
the Group believes to be applicable. For a detailed reconciliation
of the GAAP / non-GAAP items, please see page 5.


IDT integration: The acquisition of Integrated Device
Technology, Inc. (IDT) was completed as of March 30, 2019 and IDT
became a wholly-owned subsidiary of Renesas.


As of the first quarter ended March 31, 2019, there has been
a changed to the Group’s auditor, and therefore quarterly figures
of the year ended December 31, 2018, provided under IFRS are not
reviewed by the previous auditor. However, for each of the
quarterly figures of the year ended December 31, 2018 provided
under the generally accepted accounting principal in Japan
(J-GAAP) have been reviewed by the Group’s previous auditor.


EBITDA: Sum of operating income, depreciation and amortization


Quarterly Revenue from Semiconductors by Application (Billion yen)

Following the completion of the Intersil acquisition in February 2017,
Renesas integrated Intersil into its operations and reformed its
business organization into three business units. To align with this
change, Renesas redefined its semiconductor sales breakdown to:
“Automotive,” “Industrial” and “Broad-based,” the three application
categories that constitute the main business of the Group, and “Other
semiconductors,” that constitute the businesses that do not belong to
the above three application categories.


Non-GAAP Basis
Revenue from

(Billion yen)

    Q1 FY2019

(Jan-Mar 2019)

    Q4 FY2018

(Oct-Dec 2018)

    Q1 FY2018

(Jan-Mar 2018)

    QoQ     YoY
Automotive (6)     83.4     104.5     92.4     -20.2%     -9.7%
Industrial (7)     31.8     43.1     50.9     -26.2%     -37.5%
Broad-Based (8)     30.1     35.1     38.1     -14.3%     -21.0%
Other Semiconductors     1.4     1.0     0.6     36.4%     121.3%
Total     146.7     183.7     182.0     -20.1%     -19.4%



Revenue from Semiconductors by application: From the fiscal
year ended December 31, 2018, the company partially changed the
sales categories, consisting of “Automotive”, “Industrial” and
“Broad-based” by transferring part of sales from “Industrial” to
“Broad-based” among other changes, to accurately represent the
business content. Accordingly, the figures of the fiscal year
ended December 31, 2017 have been retroactively amended to reflect
the new categories of the fiscal year ended December 31, 2018.


Automotive: Renesas mainly supplies microcontrollers (MCUs),
system-on-chip (SoCs), analog semiconductors and power
semiconductor devices for the “Automotive control” and “Automotive
information” categories.


Industrial: Renesas mainly supplies MCUs and SoCs for “Smart
factory,” “Smart home” and “Smart infrastructure” categories.


Broad-based: Renesas mainly supplies “General-purpose MCUs”
and “General-purpose analog semiconductor devices” to a wide
variety of end market solutions.


Summary of First Quarter 2019 Results (Non-GAAP

First quarter consolidated revenue was 150.3 billion yen, down 20.0%
quarter-on-quarter and down 19.0% year-on-year. First quarter revenue
from semiconductors was 146.7 billion yen, down 20.1% from the previous
quarter and down 19.4% from the previous year. Automotive revenue
decreased by 20.2% quarter-on-quarter and decreased by 9.7%
year-on-year, mainly due to a decrease in vehicle production mainly in
China and adjustments in channel inventory. Industrial revenue decreased
by 26.2% quarter-on-quarter and decreased by 37.5% year-on-year, mainly
owing to decreases in demand for both factory automation (FA) equipment
and air conditioners for China. Broad-based revenue decreased by 14.3%
quarter-on-quarter and by 21.0% year-on-year.

Non-GAAP gross margin in the first quarter was 39.3%, decreased by 1.2
points quarter-on-quarter and decreased by 8.2 points on a year-on-year

Non-GAAP R&D (9) expenses in the first quarter were 27.8
billion yen, compared to 30.5 billion yen and 32.4 billion yen in the
sequential and year-ago quarter. First quarter R&D ratio to revenue was

Non-GAAP SG&A (10) and Other expenses in the first
quarter were 24.1 billion yen, compared to 26.0 billion yen and 25.7
billion yen in the sequential and year-ago quarter. First quarter SG&A
and Other ratio to revenue was 16.0%.

While Renesas focuses its OPEX (operating expenses such as R&D and SG&A
costs) on R&D expenses for future growth, the Group is continuing its
control of disciplinary SG&A, and aims to sustain long-term financial
targets at around 30% which is the sum of the ratios of R&D- and

Non-GAAP operating income was 7.2 billion yen, equivalent to 4.8% of
operating margin in the first quarter, showing a decrease of 12.3
billion yen from the 19.4 billion yen on a sequential basis. Non-GAAP
operating margin decreased by 5.6 points from 10.4% in the previous
quarter. On a year-on-year basis, non-GAAP operating income decreased by
22.9 billion yen (11.4 points) from 30.1 billion yen (16.2%) due to a
decrease in sales revenue and production control leading to a decrease
in gross profit, despite of controlling SG&A.

Non-GAAP net income in the first quarter was 6.6 billion yen, and
Non-GAAP basic earnings per share was 4.0 yen.

Inventories at the end of the first quarter was 129.8 billion yen, a
14.4 billion yen increase from the 115.4 billion yen in the previous
quarter. However, following the acquisition of IDT as of March 30, 2019,
IDT’s inventory of 20.4 billion yen has been added. In addition, 13.0
billion yen out of 20.4 billion yen for IDT’s inventory is the amount
increased by the market valuation based on the PPA (Purchase Price
Allocation) effects following the acquisition. Excluding IDT inventory,
inventories at the end of the first quarter reduced by 6.0 billion yen

Net cash provided by operating activities in the first quarter was 20.0
billion yen and net cash used in investing activities was 702.1 billion
yen. These resulted in negative free cash flows of 682.1 billion yen.
Also, IDT acquisition related payments were 685.8 billion yen and the
free cash flows excluding the impact from the acquisition was a positive
of 3.8 billion yen.

Capital expenditures for property, plant, equipment (manufacturing
equipment) and intangible assets, were 1.9 billion yen in the first
quarter. These expenditures are based on the amount of investment
decisions made and does not refer to the cash outlays in the cash flow

Equity ratio was 34.3% as of March 31, 2019, against 56.7% as of
December 31, 2018. Debt/equity ratio (gross) was 1.53 as of March 31,



R&D: Research & Development


SG&A: Selling, General and Administrative expenses


Outlook for Second Quarter 2019

In the second quarter of 2019, Renesas expects revenue from
semiconductors within the range of 181.5 billion yen and 189.5 billion
yen (an increase of 23.7% to 29.1% sequentially, and a decrease of 4.8%
to 8.8% year-on-year). For the first half of 2019, revenue from
semiconductors is expected to be within the range of 328.2 billion yen
to 336.2 billion yen (a decrease of 11.8% to 13.9% year-on-year).

Based on the midpoint of the revenue outlook, Non-GAAP gross margin and
operating margin for the second quarter of 2019 is expected to be 43.5%
and 9.5%, respectively, and for the first half of 2019, 41.6% and 7.4%

The forecasts for the second quarter of the 2019 are calculated at the
rate of 110 yen per USD and 124 yen per Euro. The forecasts for the
first half of 2019 are calculated at the rate of 110 yen per US and 125
yen per Euro.

Capital expenditure for fixed assets (production facilities) and
intangible assets (investment decision basis within the period) for the
first half of 2019 is expected to be 7.0 billion yen.

Reference: IDT’s Financial Results for the Full
Year Ended March 31, 2019

IDT’s sales revenue for the full year ended March 31, 2019 (April 1,
2018 to March 31, 2019) was 948 million USD, an increase of 12.5% year
on year. Non-GAAP gross margin for the full year was 64.1%, an increase
of 2.0 points from the year on year. Non-GAAP operating income was 291
million USD (an increase of 58 million USD year on year), and Non-GAAP
operating margin was 30.7% (3.1 points increase year on year). Further,
IDT’s profit and loss will be consolidated into the financial statements
of the Renesas Group from the second quarter of 2019 (April 1, 2019 to
June 30, 2019).

Other References

Refer to Renesas Electronics’ earnings report “Renesas Electronics
Reports Financial Results for the Three Months Ended March 31, 2019”
the consolidated balance sheets, the consolidated statements of income
and the consolidated statements of cash flows.

Refer to the separate sheet for IFRS – non-GAAP reconciliation.

Forward-Looking Statements

The statements in this press release with respect to the plans,
strategies and financial outlook of Renesas Electronics and its
consolidated subsidiaries (collectively “we”) are forward-looking
statements involving risks and uncertainties. We caution you in advance
that actual results may differ materially from such forward-looking
statements due to several important factors including, but not limited
to, general economic conditions in our markets, which are primarily
Japan, North America, Asia, and Europe; demand for, and competitive
pricing pressure on, products and services in the marketplace; ability
to continue to win acceptance of products and services in these highly
competitive markets; and fluctuations in currency exchange rates,
particularly between the yen and the U.S. dollar. Among other factors,
downturn of the world economy; deteriorating financial conditions in
world markets, or deterioration in domestic and overseas stock markets,
may cause actual results to differ from the projected results forecast.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE:
) delivers trusted embedded design innovation with complete
semiconductor solutions that enable billions of connected, intelligent
devices to enhance the way people work and live. A global
leader in microcontrollers, analog, power, and SoC products, Renesas
provides comprehensive solutions for a broad range of automotive,
industrial, home electronics, office automation, and information
communication technology applications that help shape a limitless
future. Learn more at


Media Contacts
Kyoko Okamoto
Renesas Electronics
+81 3-6773-3001
[email protected]

Investor Contacts
Hirokazu Kato
Renesas Electronics
+81 3-6773-3002
[email protected]

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Innocan Pharma Announces Study Findings that LPT-CBD maintains its prolonged release in Rabbits




HERZLIYA, Israel and CALGARY, AB, Feb. 26, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), a pioneer in the pharmaceutical and biotechnology industries, is pleased to announce the latest findings from the Company’s pharmacokinetic study of its LPT-CBD platform in rabbits.

The fundamentals of LPT-CBD lay in its ability to slowly release CBD into the blood stream. Studies conducted in various animal models including mice, dogs, goats, and sheep showed long pharmacokinetics of CBD that persisted up to several weeks. In the Company’s latest study conducted on rabbits, the results showed additional supportive data for the long exposure of CBD obtained following a single subcutaneous LPT-CBD injection.   

The Company is encouraged by these study results as they confirm the approach the Company is taking with its LPT platform. The results from studies of several organisms injected with the Company’s liposomal CBD –have consistently demonstrated that a detectable CBD level could be maintained for weeks following one injection. The Company will continue with human trials in the near future.

Pharmacokinetics (PK) is an important tool that helps evaluate the bioavailability and exposure level of a specific drug. Parameters such as maximal blood drug concentration (cMax), time to reach cMax (Tmax) and half-life of the drug are calculated based on data collected from blood analysis of the drug across a determined time. The collected PK parameters along with other tests help to define the required dose of a drug to achieve a maximal therapeutic effect. In the study conducted on rabbits, the animals were collected for blood analysis of the drug for up to 11 days. As expected, the animals presented a persistent CBD concentration in their blood that maintained through the entire testing period. This correlates to PK results obtained from other species, supporting the long CBD exposure and the necessity of only a single LPT-CBD injection to obtain a long and wide therapeutic window for CBD.   

About Innocan Pharma:

Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies comprises with cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD-loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for two indications: Epilepsy and Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment Innocan has established a Joint Venture by the name of BI Sky Global Ltd. that focuses developing on advanced targeted online sales.

Contact Information:

For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1 5162104025


Caution Regarding Forward-Looking Information

Certain information set forth in this news release, including, without limitation, the Company’s plans for human trials of its LPT-CBD platform, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. . The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of production and distribution arrangements.

Forward-looking information is subject to various risks and uncertainties that could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: global and local (national) economic, political, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and potential disruption of relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import/export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner). The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. A comprehensive discussion of other risks that impact Innocan can be found in Innocan’s public reports and filings which are available under Innocan’s profile at

Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.


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Schwazze Appoints Forrest Hoffmaster as Interim Chief Executive Officer




DENVER, Feb. 23, 2024 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced that Forrest Hoffmaster, the Company’s Chief Financial Officer, has been appointed to the additional role of interim Chief Executive Officer (“CEO”). This follows Nirup Krishnamurthy’s resignation as CEO and as a member of the Board of Directors (“Board”), effective February 20, 2024, due to personal reasons.

Mr. Hoffmaster, who joined the Company in January 2023, brings over 30 years of executive experience in finance and operations for both public and private companies. Prior to Schwazze, Mr. Hoffmaster served as CEO of New Seasons Market, a specialty gourmet food retailer, where he navigated the company through one of the most disruptive periods in the retail grocery industry. Under his leadership, Mr. Hoffmaster implemented a focused growth and cost optimization program, enabling the company to grow EBITDA by over 30% in two years. Prior to New Seasons Market, Forrest held leadership positions with other leading grocers including Whole Foods Market and H-E-B.

“Forrest is well-positioned to seamlessly step in and lead the Company’s day-to-day operations as we conduct our search for a permanent successor,” said Justin Dye, Chairman of the Board. “With Forrest’s proven track record and deep retail expertise, we plan to continue leveraging our operating playbook to drive strong Adjusted EBITDA margins and consistent cash flow generation. On behalf of the Board, I’d like to wish Nirup the best in his future endeavors.”

About Schwazze

Schwazze (OTCQX: SHWZ) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.

Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.

Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intends,” “plans,” “strategy,” “prospects,” “anticipate,” “believe,” “approximately,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
[email protected] 

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Hemp, Inc. Reports: Hemp-Based Foods Market Set to Reach $8.36 Billion by 2028



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