SMIC revenue and profit dip in first quarter

Semiconductor Manufacturing International Corporation (SMIC) announced a decrease in revenue and profit for the three months ended March 31, 2019.
SMIC semiconductorSMIC revenue was $668.9 million in Q1 209 as against $787.6 million in Q4 2018 and $831 million in Q1 2018.

SMIC has revealed that it generated 5.1 percent of its total revenue from computer, 43 percent from communications, 32.5 percent from consumer, 9.8 percent from auto and 9.6 percent from others.

SMIC generated 53.9 percent of its total revenue from China, 32.3 percent from North America and 13.8 percent from Euroasia.

SMIC reported gross profit of $122.1 million in Q1 2019 against $134.1 million in Q4 2018 and $220.2 million in Q1 2018.

SMIC posted gross margin of 18.2 percent in Q1 2019, compared to 17.0 percent in Q4 2018 and 26.5 percent in Q1 2018.

SMIC said it’s expecting second quarter revenue to increase by 17-19 percent quarter on quarter. SMIC is aiming to achieve gross margin of 18-20 percent.

New applications such as analog power management and CMOS RF for Internet of Things will drive revenue growth, Zhao Haijun, co-chief executive officer of SMIC, said.