GlobalFoundries Reports Fourth Quarter and Fiscal Year 2021 Financial Results

Record Reve­nue, Gross, and Ope­ra­ting Margins

MALTA, N.Y., Feb. 08, 2022 (GLOBE NEWSWIRE) — Glo­bal­Found­ries Inc. (GF) (Nasdaq: GFS) today announ­ced preli­mi­na­ry finan­cial results for the fourth quar­ter and fis­cal year ended Decem­ber 31, 2021.

Key Fourth Quar­ter Finan­cial Highlights

  • Record reve­nue of $1.85 bil­li­on, up 9% sequentially.
  • Record gross mar­gin of 20.8% and adjus­ted gross mar­gin of 21.5%.
  • Record ope­ra­ting mar­gin of 5% and adjus­ted ope­ra­ting mar­gin of 8%.
  • Net inco­me mar­gin of 2% and adjus­ted EBITDA mar­gin of 32%.
  • Cash and cash equi­va­lents of $2.9 billion.

Key Full Year 2021 Finan­cial Highlights

  • Reve­nue of $6.6 bil­li­on, up 36% year-over-year.
  • Record gross mar­gin of 15% and adjus­ted gross mar­gin of 16%.
  • Net inco­me mar­gin of ‑4% and adjus­ted EBITDA mar­gin of 28%.

2021 was an out­stan­ding year for GF, during which we dro­ve an acce­le­ra­ti­on of our busi­ness plan by capi­ta­li­zing on the demand for per­va­si­ve semi­con­duc­tor solu­ti­ons and the vital role we play in the semi­con­duc­tor sup­p­ly chain,” said Tom Caul­field, CEO of GF. “Our reve­nue grew 36% year-over-year, and we made signi­fi­cant pro­gress towards our long-term finan­cial pro­fit model. The year was also mark­ed by a gro­wing num­ber of long-term part­ner­ship agree­ments, with 30 cus­to­mers com­mit­ting more than $3.2 bil­li­on toward the con­tin­ued expan­si­on of our glo­bal manu­fac­tu­ring foot­print to sup­port strong demand. We are exe­cu­ting well, and belie­ve we are on track to deli­ver ano­ther year of strong growth in reve­nue and pro­fi­ta­bi­li­ty in 2022.”

Major 2021 Accom­plish­ments and Key Fourth Quar­ter Busi­ness Highlights:

  • In 2021, GF ente­red into 30 signi­fi­cant long-term cus­to­mer agree­ments that pro­vi­de assu­rance to our cus­to­mers and pro­vi­de reve­nue visi­bi­li­ty to GF.
  • In 2021, GF bro­ke ground on a new fab on its Sin­ga­po­re cam­pus, expan­ded capa­ci­ty in Fab 1 (Dres­den) by over 25%, and announ­ced expan­si­on plans for its most advan­ced manu­fac­tu­ring faci­li­ty in upsta­te New York.
  • GF set a “Jour­ney to Zero Car­bon” goal to redu­ce green­house gas emis­si­ons by 25% while expan­ding glo­bal manu­fac­tu­ring capacity.
  • On Octo­ber 28, 2021, GF began tra­ding on Nasdaq Stock Mar­ket under the ticker “GFS.”
  • In the fourth quar­ter, GF announ­ced an exten­si­on of its wafer sup­p­ly agree­ment with AMD, incre­asing the num­ber of chips GF will sup­p­ly, as well as exten­ding the terms of the agree­ment to secu­re sup­p­ly through 2025.
  • In the fourth quar­ter, BMW signed a direct sup­p­ly assu­rance agree­ment with high-tech micro­chip deve­lo­per INOVA Semi­con­duc­tors and GF to secu­re long-term semi­con­duc­tor supplies.
  • In the fourth quar­ter, GF and Ford announ­ced a non-bin­ding stra­te­gic col­la­bo­ra­ti­on to advan­ce semi­con­duc­tor manu­fac­tu­ring and tech­no­lo­gy deve­lo­p­ment within the US, aiming to boost chip sup­pli­es for Ford and the US auto industry.
     

Unau­di­ted Sum­ma­ry Quar­ter­ly Results (in $M, except per share amounts and wafer ship­ments)1,2

                Year-over-year   Sequen­ti­al
    Q4’20   Q3’21   Q4’21   Q4’20 vs Q4’21   Q3’21 vs Q4’21
                         
Reve­nue   $1,062     $1,700     $1,847     $785 74%     $147 9%  
                         
Gross pro­fit (loss)   $(218)     $300     $384     $601 276%     $84 28%  
Gross mar­gin     (20.5)%       17.6%       20.8%       +4131bps       +316bps  
                         
Adjus­ted gross pro­fit (loss)   $(218)     $306     $397     $615 282%     $91 30%  
Adjus­ted gross margin      (20.5)%       18.0%       21.5%       +4201bps       +346bps  
                         
Ope­ra­ting pro­fit (loss)   $(491)     $52     $87     $578 118%     $35 67%  
Ope­ra­ting margin     (46)%       3%       5%       +5092bps       +163bps  
                         
Adjus­ted ope­ra­ting pro­fit (loss)   $(491)     $81     $142     $633 129%     $61 75%  
Adjus­ted ope­ra­ting margin     (46)%       5%       8%       +5389bps       +291bps  
                         
Net inco­me (loss)   $(524)     $5     $43     $567 108%     $38 760%  
Net inco­me (loss) margin     (49)%       0%       2%       +5165bps       +201bps  
                         
Adjus­ted net inco­me (loss)   $(524)     $34     $98     $622 119%     $64 187%  
Adjus­ted net inco­me (loss) margin     (49)%       2%       5%       +5464bps       +328bps  
                         
Diluted ear­nings per share (EPS)   $(1.05)     $0.01     $0.08     $1.13 108%     $0.07 700%  
                         
Adjus­ted diluted EPS   $(1.05)     $0.07     $0.18     $1.23 117%     $0.11 157%  
                         
Adjus­ted EBITDA   $166     $505     $584     $418 251%     $79 16%  
Adjus­ted EBITDA margin     16%       30%       32%       +1596bps       +191bps  
                         
Cash from operations   $201     $1,109     $1,148     $947 471%     $39 4%  
                         
Wafer ship­ments (300MM Equi­va­lent) (in thousands)     595       609       622       27 5%       13 2%  

1Adjus­ted gross pro­fit, adjus­ted ope­ra­ting pro­fit, adjus­ted net inco­me, adjus­ted EBITDA, and diluted ear­nings per share are adjus­ted non-IFRS metrics; plea­se see the recon­ci­lia­ti­on of IFRS to adjus­ted non-IFRS metrics in the Appendix.
2In 2020, the majo­ri­ty of our cus­to­mer con­trac­tu­al terms were amen­ded in a man­ner that resul­ted in moving from reco­gni­zing wafer reve­nue on a Per­cen­ta­ge-of-Com­ple­ti­on basis to reco­gni­zing reve­nue on a Wafer Ship­ment basis. This resul­ted in a one-time, non-recur­ring reduc­tion in net reve­nues reco­gni­zed in 2020. Had the chan­ge in terms not occur­red, net reve­nues for the quar­ter ended Decem­ber 31, 2020 would have been an esti­ma­ted $501 mil­li­on hig­her than repor­ted results.

Unau­di­ted Sum­ma­ry Annu­al Results (in $M, except per share amounts)1,2

                Year-over-year
      FY 2020   FY 2021     FY20 vs FY21
                   
Reve­nue     $4,851     $6,585       $1,734 36%  
                   
Gross pro­fit (loss)     $(713)     $1,013       $1,726 242%  
Gross mar­gin       (14.7)%       15.4%         +3008bps  
                   
Adjus­ted gross pro­fit (loss)     $(713)     $1,068       $1,781 250%  
Adjus­ted gross margin        (14.7)%       16.2%         +3092bps  
                   
Ope­ra­ting pro­fit (loss)     $(1,656)     $(60)       $1,596 96%  
Ope­ra­ting margin       (34)%       (1)%         +3323bps  
                   
Adjus­ted ope­ra­ting pro­fit (loss)     $(1,655)     $168       $1,823 110%  
Adjus­ted ope­ra­ting margin       (34)%       3%         +3667bps  
                   
Net inco­me (loss)     $(1,351)     $(254)       $1,097 81%  
Net inco­me (loss) margin       (28)%       (4)%         +2399bps  
                   
Adjus­ted net inco­me (loss)     $(1,350)     $(26)       $1,324 98%  
Adjus­ted net inco­me (loss) margin       (28)%       0%         +2744bps  
                   
Diluted ear­nings per share (EPS)     $(2.70)     $(0.50)       $2.20 81%  
                   
Adjus­ted diluted EPS     $(2.70)     $(0.05)       $2.65 98%  
                   
Adjus­ted EBITDA     $976     $1,848       $872 89%  
Adjus­ted EBITDA margin       20%       28%         +794bps  
                   
Cash from operations     $1,006     $2,839       $1,833 182%  
                   
Wafer ship­ments (300MM Equi­va­lent) (in thousands)       2,030       2,374         344 17%  

1Adjus­ted gross pro­fit, adjus­ted ope­ra­ting pro­fit, adjus­ted net inco­me, adjus­ted EBITDA, and adjus­ted diluted ear­nings per share are adjus­ted non-IFRS metrics; plea­se see the recon­ci­lia­ti­on of IFRS to adjus­ted non-IFRS metrics in the appendix.
2In 2020, the majo­ri­ty of our cus­to­mer con­trac­tu­al terms were amen­ded in a man­ner that resul­ted in moving from reco­gni­zing wafer reve­nue on a Per­cen­ta­ge-of-Com­ple­ti­on basis to reco­gni­zing reve­nue on a Wafer Ship­ment basis. This resul­ted in a one-time, non-recur­ring reduc­tion in net reve­nues reco­gni­zed in 2020. Had the chan­ge in terms not occur­red, net reve­nues for the year ended Decem­ber 31, 2020 would have been an esti­ma­ted $810 mil­li­on hig­her than repor­ted results.

Sum­ma­ry of First Quar­ter 2022 Out­look (in $M except per share amounts)

  IFRS   Share-based com­pen­sa­ti­on   Non-IFRS Adjus­ted
Reve­nue $1,880 — $1,920        
Gross Pro­fit $383 — $413     $24 — $26   $409 — $437  
Gross Mar­gin (mid-point) 20.9%       22.3%  
Ope­ra­ting Profit $101- $145     $57 — $63   $164 — $202  
Ope­ra­ting Mar­gin (mid-point) 6.5%       9.6%  
Net Inco­me $54 — $96     $57 — $63   $117 — $153  
Net Inco­me Mar­gin (mid-point) 3.9%       7.1%  
Diluted EPS $0.10 — $0.17     $0.10 — $0.11   $0.21 — $0.27  
Adj. EBITDA       $580 — $620  
EBITDA Mar­gin (mid-point)       31.6%  
               

The gui­dance pro­vi­ded abo­ve con­ta­ins for­ward-loo­king state­ments as defi­ned in the Secu­ri­ties Exch­an­ge Act of 1934, as amen­ded, and is sub­ject to the safe har­bors crea­ted the­r­ein. The gui­dance includes management’s beliefs and assump­ti­ons and is based on infor­ma­ti­on curr­ent­ly available. GF has not pro­vi­ded a recon­ci­lia­ti­on of its First Fis­cal Quar­ter out­look for adjus­ted Non-IFRS EBITDA and rela­ted Mar­gin becau­se esti­ma­tes of all of the recon­ci­ling items can­not be pro­vi­ded wit­hout unre­asonable efforts. Cer­tain fac­tors that are mate­ri­al­ly signi­fi­cant to GF’s abili­ty to esti­ma­te the­se items are out of its con­trol and/or can­not be reason­ab­ly predicted.

Unau­di­ted Con­so­li­da­ted State­ments of Operations

    Three Months Ended   Years Ended
(in $M, except per share amounts)   Decem­ber 31, 2020   Decem­ber 31, 2021   Decem­ber 31, 2020   Decem­ber 31, 2021
                 
Reve­nue   $1,062     $1,847     $4,851     $6,585  
Cost of sales     1,280       1,463       5,563       5,572  
Gross pro­fit (loss)     (218)       384       (712)       1,013  
Ope­ra­ting expenses:                
Rese­arch and development     116       130       476       478  
Sales, mar­ke­ting, gene­ral and administrative     136       167       445       595  
Total ope­ra­ting expenses     252       297       921       1,073  
Impair­ment charge     21             23        
Total other ope­ra­ting charges     21             23        
Ope­ra­ting pro­fit (loss)     (491)       87       (1,656)       (60)  
Finan­ce expen­se, net     (38)       (26)       (151)       (108)  
Other inco­me (loss)     13       8       444       (8)  
Inco­me tax bene­fit (expen­se)     (8)       (26)       12       (78)  
Net inco­me (loss)     (524)       43       (1,351)       (254)  
Ear­nings (loss) per share:                
Basic   $(1.05)     $0.08     $(2.70)     $(0.50)  
Diluted   $(1.05)     $0.08     $(2.70)     $(0.50)  
Shares used in ear­nings (loss) per share calculation                
Basic     500       522       500       506  
Diluted     500       540       500       506  
                                 

Unau­di­ted Con­so­li­da­ted State­ments of Finan­cial Position

(in $M)  Decem­ber 31, 2020   Decem­ber 31, 2021
         
Assets:        
Cash and cash equivalents     $908       $2,939  
Receiv­a­bles, pre­pay­ments and other     1,159       1,231  
Invent­ories     920       1,121  
Cur­rent assets     2,987       5,291  
Defer­red tax assets     444       353  
Pro­per­ty, plant, and equip­ment, net     8,226       8,713  
Other assets     665       671  
Non­cur­rent assets     9,335       9,737  
Total assets     $12,322       $15,028  
Lia­bi­li­ties and equity:        
Cur­rent por­ti­on of long-term debt     $382       $297  
Other cur­rent liabilities     1,514       2,866  
Cur­rent liabilities     1,896       3,163  
Non­cur­rent por­ti­on of long-term debt     1,956       1,716  
Other lia­bi­li­ties     1,228       2,116  
Non­cur­rent liabilities     3,184       3,832  
Stock­hol­ders’ equity:        
Com­mon stock/additional paid-in capital     11,718       23,498  
Accu­mu­la­ted deficit     (15,219)       (15,469)  
Loan from share­hol­der and other1     10,743       4  
Total lia­bi­li­ties and equity     $12,322       $15,028  

1On Octo­ber 3, 2021, GF exe­cu­ted the con­ver­si­on of the enti­re Share­hol­der Loans balan­ce of $10.113 bil­li­on under our loan faci­li­ties with Muba­d­a­la Invest­ment Com­pa­ny PJSC into addi­tio­nal paid-in-capi­tal, which did not have an impact on shares out­stan­ding or have any dilu­ti­ve effects, as no addi­tio­nal shares were issued.

Unau­di­ted Con­so­li­da­ted State­ments of Cash Flows  

                 
    Three Months Ended   Years Ended
(in $M)   Decem­ber 31, 2020   Decem­ber 31, 2021   Decem­ber 31, 2020   Decem­ber 31, 2021
                 
Cash flows from ope­ra­ting activities:                
Net inco­me (loss)   $(524)       $43       $(1,351)       $(254)  
Depre­cia­ti­on and amortization   626       419       2,523       1,619  
Finan­ce expen­se, net   38       26       151       108  
Defer­red inco­me taxes   14       40       (38)       93  
Other non-cash ope­ra­ting activities   (51)       (9)       (338)       43  
Net chan­ge in working capital   98       629       59       1,230  
Net cash pro­vi­ded by ope­ra­ting activities   201       1,148       1,006       2,839  
               
Cash flows from inves­t­ing activities:              
Purcha­ses of pro­per­ty, plant, equip­ment, and intan­gi­ble assets   (203)       (649)       (592)       (1,766)  
Other inves­t­ing activities   126       23       226       316  
Net cash used in inves­t­ing activities   (77)       (626)       (366)       (1,450)  
               
Cash flows from finan­cing activities:              
Pro­ceeds from issu­an­ce of equi­ty instruments           $1,444             $1,444  
Repay­ments of share­hol­der loan   (137)             (487)       (568)  
Repay­ment of debt, net   (248)       (72)       (556)       (343)  
Other finan­cing activities   38       27       310       117  
Net cash pro­vi­ded by (used in) finan­cing activities    (347)       1,399       (732)       650  
Effect of exch­an­ge rate changes   3       (1)       3       (8)  
Net chan­ge in cash and cash equivalents   (221)       1,920       (89)       2,031  
Cash and cash equi­va­lents at the begin­ning of the period   1,129       1,019       997       908  
Cash and cash equi­va­lents at the end of the period   $908       $2,939       $908       $2,939  
                               

Unau­di­ted Recon­ci­lia­ti­on of IFRS to Adjus­ted Non-IFRS 

  Three Months Ended   Years Ended
(in $M) Decem­ber 31, 2020   Sep­tem­ber 30, 2021   Decem­ber 31, 2021   Decem­ber 31, 2020   Decem­ber 31, 2021
                   
Gross pro­fit (loss) $(218)     $300   $384   $(713)     $1,013  
Share based compensation       $6   $13         $55  
Adjus­ted gross pro­fit (loss) $(218)     $306   $397   $(713)     $1,068  
                   
Ope­ra­ting pro­fit (loss) $(491)     $52   $87   $(1,656)     $(60)  
Share based compensation       $29   $55   $1     $228  
Adjus­ted ope­ra­ting pro­fit (loss) $(491)     $81   $142   $(1,655)     $168  
                   
Net inco­me (loss) $(524)     $5   $43   $(1,351)     $(254)  
Share based compensation       $29   $55   $1     $228  
Adjus­ted net inco­me (loss) $(524)     $34   $98   $(1,350)     $(26)  
                   
Ear­nings per share (EPS) $(1.05)     $0.01   $0.08   $(2.70)     $(0.50)  
Share based compensation $0.00     $0.06   $0.10   $0.00     $0.45  
Adjus­ted ear­nings (loss) per share $(1.05)     $0.07   $0.18   $(2.70)     $(0.05)  
                                   

Unau­di­ted Recon­ci­lia­ti­on of Net Inco­me (Loss) to Adjus­ted EBITDA

    Three Months Ended   Years Ended
(in $M)   Decem­ber 31, 2020   Sep­tem­ber 30, 2021   Decem­ber 31, 2021   Decem­ber 31, 2020   Decem­ber 31, 2021
                     
Net inco­me (loss) for the period   $(524)     $5   $43   $(1,351)     $(254)  
Adjus­t­ments:                    
Depre­cia­ti­on and amortization   $626     $415   $419   $2,523     $1,619  
Finan­ce expense   $38     $28   $28   $154     $114  
Inco­me tax expen­se (bene­fit)   $8     $22   $26   $(12)     $78  
Share based compensation         $29   $55   $1     $228  
Res­truc­tu­ring and cor­po­ra­te sever­ance programs   $11     $2   $5   $16     $17  
(Gains) on tran­sac­tions, legal sett­le­ments and tran­sac­tion expenses   $7     $4   $8   $(356)     $46  
Adjus­ted EBITDA   $166     $505   $584   $976     $1,848  
                                     

Adjus­ted Finan­cial Mea­su­res (Non-IFRS)

In addi­ti­on to the finan­cial infor­ma­ti­on pre­sen­ted in accordance with IFRS, this press release includes the fol­lo­wing adjus­ted non-IFRS metrics: adjus­ted gross pro­fit, adjus­ted ope­ra­ting pro­fit, adjus­ted net inco­me (loss), adjus­ted diluted EPS and adjus­ted EBITDA. We defi­ne adjus­ted gross pro­fit (loss) as gross pro­fit (loss) adjus­ted for share-based com­pen­sa­ti­on expen­se. We defi­ne adjus­ted ope­ra­ting pro­fit (loss) as pro­fit (loss) from ope­ra­ti­ons adjus­ted for share-based com­pen­sa­ti­on expen­se. We defi­ne adjus­ted net inco­me (loss) as net inco­me (loss) adjus­ted for share-based com­pen­sa­ti­on expen­se. We defi­ne adjus­ted EPS as adjus­ted net inco­me (loss) divi­ded by the dilu­ti­ve shares. We defi­ne adjus­ted EBITDA as net inco­me (loss), exclu­ding the impact of inte­rest expen­se, tax expen­se, depre­cia­ti­on, amor­tiza­ti­on adjus­ted for share-based com­pen­sa­ti­on expen­se, tran­sac­tion gains and asso­cia­ted expen­ses, res­truc­tu­ring char­ges and liti­ga­ti­on settlements.

We belie­ve that in addi­ti­on to our results deter­mi­ned in accordance with IFRS, the­se adjus­ted non-IFRS mea­su­res are useful in eva­lua­ting our busi­ness and the under­ly­ing trends that are affec­ting our per­for­mance. The­se adjus­ted non-IFRS finan­cial mea­su­res pro­vi­de sup­ple­men­tal infor­ma­ti­on regar­ding our ope­ra­ting per­for­mance that excludes cer­tain gains, los­ses and non-cash char­ges that occur rela­tively infre­quent­ly and/or that we con­sider to be unre­la­ted to our core ope­ra­ti­ons. The­se adjus­ted non-IFRS mea­su­res are used by both our manage­ment and our board of direc­tors, tog­e­ther with the com­pa­ra­ble IFRS infor­ma­ti­on, in eva­lua­ting our cur­rent per­for­mance and plan­ning future busi­ness activities.

We belie­ve that the­se adjus­ted non-IFRS mea­su­res, when used in con­junc­tion with our IFRS finan­cial infor­ma­ti­on, also allow inves­tors and users of our finan­cial state­ments to bet­ter eva­lua­te our finan­cial per­for­mance in com­pa­ri­son to other peri­ods and to other com­pa­nies in our indus­try. Howe­ver, adjus­ted non-IFRS finan­cial infor­ma­ti­on is pre­sen­ted for sup­ple­men­tal infor­ma­tio­nal pur­po­ses only and should not be con­side­red in iso­la­ti­on or as a sub­sti­tu­te for finan­cial infor­ma­ti­on pre­sen­ted in accordance with IFRS. Our pre­sen­ta­ti­on of adjus­ted non-IFRS mea­su­res should not be con­strued as an infe­rence that our future results will be unaf­fec­ted by unu­su­al or non­re­cur­ring items. Other com­pa­nies in our indus­try may cal­cu­la­te the­se mea­su­res dif­fer­ent­ly, which may limit their useful­ness as a com­pa­ra­ti­ve measure.

Our results are preli­mi­na­ry pri­or to the fil­ing of form 20‑F.

Con­fe­rence Call and Web­cast Information

GF will host a con­fe­rence call with the finan­cial com­mu­ni­ty on Tues­day, Febru­ary 8, 2022 at 4:30 p.m. U.S. Eas­tern Stan­dard Time (EST) to review the Fourth Quar­ter and Full Year 2021 results in detail. Inte­res­ted par­ties may join the sche­du­led con­fe­rence call by dia­l­ing the fol­lo­wing numbers:

Within the U.S.: 1–877-788‑0411
Out­side the U.S.: 1–615-489‑8522
Par­ti­ci­pant Passcode: 8285067

The call will be web­cast and can be acces­sed from the GF Inves­tor Rela­ti­ons web­site https://investors.gf.com. A replay of the call will be available on the GF Inves­tor Rela­ti­ons web­site within 24 hours of the actu­al call.

About Glo­bal­found­ries

Glo­bal­Found­ries® (GF®) is one of the world’s lea­ding semi­con­duc­tor manu­fac­tu­r­ers. GF is rede­fi­ning inno­va­ti­on and semi­con­duc­tor manu­fac­tu­ring by deve­lo­ping and deli­ve­ring fea­ture-rich pro­cess tech­no­lo­gy solu­ti­ons that pro­vi­de lea­der­ship per­for­mance in per­va­si­ve high growth mar­kets. GF offers a uni­que mix of design, deve­lo­p­ment and fabri­ca­ti­on ser­vices. With a talen­ted and diver­se work­force and an at-sca­le manu­fac­tu­ring foot­print span­ning the U.S., Euro­pe and Asia, GF is a trus­ted tech­no­lo­gy source to its world­wi­de cus­to­mers. For more infor­ma­ti­on, visit www.gf.com.

For­ward-loo­king Statements

This press release includes express and impli­ed “for­ward-loo­king state­ments,” inclu­ding but not limi­t­ed to, state­ments regar­ding our finan­cial out­look, future gui­dance, pro­duct deve­lo­p­ment, busi­ness stra­tegy and plans, and mar­ket trends, oppor­tu­ni­ties and posi­tio­ning. For­ward-loo­king state­ments are based on our management’s beliefs and assump­ti­ons and on infor­ma­ti­on curr­ent­ly available to our manage­ment. The­se for­ward-loo­king state­ments are based on cur­rent expec­ta­ti­ons, esti­ma­tes, fore­casts and pro­jec­tions. Words such as “expect,” “anti­ci­pa­te,” “should,” “belie­ve,” “hope,” “tar­get,” “pro­ject,” “goals,” “esti­ma­te,” “poten­ti­al,” “pre­dict,” “may,” “will,” “might,” “could,” “intend,” “shall” and varia­ti­ons of the­se terms and simi­lar expres­si­ons are inten­ded to iden­ti­fy the­se for­ward-loo­king state­ments, alt­hough not all for­ward-loo­king state­ments con­tain the­se iden­ti­fy­ing words. For­ward-loo­king state­ments are sub­ject to a num­ber of risks and uncer­tain­ties, many of which invol­ve fac­tors or cir­cum­s­tances that are bey­ond our con­trol. For exam­p­le, our busi­ness could be impac­ted by the COVID-19 pan­de­mic and actions taken in respon­se to it; the mar­ket for our pro­ducts may deve­lop more slow­ly than expec­ted or than it has in the past; our ope­ra­ting results may fluc­tua­te more than expec­ted; the­re may be signi­fi­cant fluc­tua­tions in our results of ope­ra­ti­ons and cash flows rela­ted to our reve­nue reco­gni­ti­on or other­wi­se; a net­work or data secu­ri­ty inci­dent that allows unaut­ho­ri­zed access to our net­work or data or our cus­to­mers’ data could dama­ge our repu­ta­ti­on; we could expe­ri­ence inter­rup­ti­ons or per­for­mance pro­blems asso­cia­ted with our tech­no­lo­gy, inclu­ding a ser­vice outa­ge; and glo­bal eco­no­mic con­di­ti­ons could dete­rio­ra­te. It is not pos­si­ble for us to pre­dict all risks, nor can we assess the impact of all fac­tors on our busi­ness or the ext­ent to which any fac­tor, or com­bi­na­ti­on of fac­tors, may cau­se actu­al results or out­co­mes to dif­fer mate­ri­al­ly from tho­se con­tai­ned in any for­ward-loo­king state­ments we may make. Moreo­ver, we ope­ra­te in a com­pe­ti­ti­ve and rapidly chan­ging mar­ket, and new risks may emer­ge from time to time. You should not rely upon for­ward-loo­king state­ments as pre­dic­tions of future events. The­se state­ments are based on our his­to­ri­cal per­for­mance and on our cur­rent plans, esti­ma­tes and pro­jec­tions in light of infor­ma­ti­on curr­ent­ly available to us, and the­r­e­fo­re you should not place undue reli­ance on them.

Alt­hough we belie­ve that the expec­ta­ti­ons reflec­ted in our state­ments are reasonable, we can­not gua­ran­tee that the future results, levels of acti­vi­ty, per­for­mance or events and cir­cum­s­tances descri­bed in the for­ward-loo­king state­ments will be achie­ved or occur. Moreo­ver, neither we, nor any other per­son, assu­mes respon­si­bi­li­ty for the accu­ra­cy and com­ple­ten­ess of the­se state­ments. Reci­pi­ents are cau­tio­ned not to place undue reli­ance on the­se for­ward-loo­king state­ments, which speak only as of the date such state­ments are made and should not be con­strued as state­ments of fact. Except to the ext­ent requi­red by fede­ral secu­ri­ties laws, we under­ta­ke no obli­ga­ti­on to update any infor­ma­ti­on or any for­ward-loo­king state­ments as a result of new infor­ma­ti­on, sub­se­quent events, or any other cir­cum­s­tances after the date hereof, or to reflect the occur­rence of unan­ti­ci­pa­ted events. For a dis­cus­sion of poten­ti­al risks and uncer­tain­ties, plea­se refer to the risk fac­tors lis­ted in our SEC filings. Copies of our SEC filings are available on our Inves­tor Rela­ti­ons web­site, investors.gf.com, or from the SEC web­site, www.sec.gov.