Semiconductor Manufacturing International Corporation SMIC announced its consolidated results of operations for the three months ended March 31, 2020. 2020 First Quarter Highlights Revenue was $904.9 million in 1Q20, an increase of 7.8% QoQ from $839.4 million in 4Q19, and 35.3% YoY from $668.9 million in 1Q19. Gross profit was $233.6 million in 1Q20, an increase of 17.1% QoQ from $199.4 million in 4Q19 and 91.4% YoY from $122.1 million in 1Q19. Gross margin was 25.8% in 1Q20, compared to 23.8% in 4Q19 and 18.2% in 1Q19.
2020 Second Quarter Guidance The following statements are forward looking statements based on current expectations and involved risks and uncertainties, some of which are set forth under "Forward-Looking Statements" below. The Company expects: Revenue to increase by 3% to 5% QoQ. Gross margin to range from 26% to 28%. Non-IFRS operating expenses to range from $240 million to $245 million. Non-controlling interests of our majority-owned subsidiaries to range from $0 to positive $10 million (losses to be borne by non-controlling interests).
Dr. Zhao Haijun and Dr. Liang Mong Song, SMIC's Co-Chief Executive Officers commented, "The company's revenue in the first quarter has reached a historical high of $905 million, an increase of 8% quarter over quarter, and 35% year over year, as market demand and product mix are better than expected. Revenue related to communications, computer and consumer electronics grew, gradually increasing in market share. Our capacity for mature technology platform applications continue to be fully loaded; the demand for CIS related ICs, power management, fingerprint sensors, specialty memory and other related applications are strong. Advanced technology R&D and business are progressing smoothly, as we continue to expand in communications, smartphone, automotive and consumer electronics related fields. Our customers' feedback on 14nm is positive; our 14nm is covering both communications and automotive sectors with applications including low-end application processors, baseband and consumer related products. We decided to increase capital expenditure by $1.1 billion to a total of $4.3 billion, to meet the market demand. We are confident in leading the company in continued growth momentum, focusing on building up competitiveness under uncertainty, providing comprehensive technology and business platform solutions for domestic and global customers, and capturing growth opportunities in the semiconductor industry."
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