U.S. Markets open in 2 hrs 40 mins

Renesas's IDT Deal Looks Good. If You Don't Look Closely

Tim Culpan
Renesas's IDT Deal Looks Good. If You Don't Look Closely

Renesas Electronics Corp. makes a heck of a presentation. Gross and operating margin would improve 1.6 percentage points and 1.2 percentage points, respectively, under the deal, it claimed. Under GAAP, gross margin at IDT was 4.9 percentage points lower for fiscal 2018  than what Renesas outlined in Tuesday’s presentation, and operating margin was less than half at 13.2 percent.