The semiconductor industry and its sales leaders yielded negative quarter-over-quarter (QoQ) and year-over-year (YoY) sales growths in Q1 2012. The fabless segment and its sales leaders followed the same trend QoQ; however, YoY they recorded positive sales growths. The fabless segment decreased 4.0% QoQ and increased 1.2% YoY, while the top 20 fabless companies combined for $13.3 billion, a 2.7% decrease QoQ and a 8.6% increase YoY.
The average gross profit margin of the 164 fabless and IDM companies that publicly reported Q1 2012 gross profit margin was 37.7%. Eighty-eight companies reported a Q1 2012 gross profit margin higher than the average, possibly indicating that over 50% have been successful in their initiatives to cut costs and are able to sustain growth over time – a good sign for the market. 85% of these companies were fabless.
The average net profit margin of the 166 fabless and IDM companies that publicly reported Q1 2012 net profit margin was -14.4%, indicating that the industry might be having a difficult time controlling costs. The average net profit margin of the 98 companies that reported a positive margin was 12.1%. Thirty-nine companies reported a Q1 2012 net profit margin higher than the 12.1% average. 92.3% of these companies were fabless.
Of the 144 fabless and IDM companies that publicly reported Q1 2012 free cash flow, 82 companies reported a positive cash flow, indicating that over 50% are building their cash reserves and are able to develop new products, acquire companies, reduce debt, enhance shareholder value and grow into the future. 79.3% of these companies were fabless.
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