STMicroelectronics Reports 2012 Third Quarter and Nine Month Financial Results

GENEVA -- (Marketwire) -- Oct 23, 2012 -- STMicroelectronics (NYSE: STM)

  • Third quarter net revenues up 0.9% sequentially to $2.17 billion
  • Third quarter gross margin up 50 basis points sequentially to 34.8%
  • New cost-savings plan at ST level to achieve $150 million of annualized savings by end of 2013
  • Non-cash impairment charge of $690 million for Wireless

STMicroelectronics (NYSE: STM) reported financial results for the third quarter and nine months ended September 29, 2012.

On a sequential basis, third quarter net revenues increased 0.9% to $2.17 billion and gross margin improved to 34.8%. Net loss attributable to parent company was $478 million, mainly due to a non-cash charge of $690 million for the impairment of Wireless goodwill.

President and CEO Carlo Bozotti commented, "Our third quarter revenue and gross margin results delivered sequential improvements. Overall, the strength of our product portfolio enabled us to manage the current weak demand environment. As anticipated, we benefited from the revenue growth of our MEMS, microcontrollers, Power MOSFET and IGBT businesses, which continue to expand into new applications, and we continue to strengthen relationships with key market leaders, such as Audi and Samsung. ST's wholly-owned businesses operating margin improved, on a sequential basis, to 5.8%, mainly driven by improvements in our Power Discrete (PDP) segment.

"We have already been taking a number of important steps to advance our key priorities. In December, we will present our new strategic plan which will accelerate the roadmap towards our previously announced financial model and ensure the future success of both our Analog and Digital businesses and, therefore, of our company as a whole.

"Through this process we are progressing in moving our digital businesses towards self-sustainability and we are announcing today a new $150 million annual savings plan at the ST level: a part of the savings coming from the identified initiatives to leverage on the synergies of our Unified Processing Platform approach announced in April, and the remainder of the savings coming from other new initiatives, such as efficiencies in our process technology development model and expenses related to design outsourcing.

"Our Wireless segment delivered strong progress during the third quarter; however, the segment's operating loss and negative cash flows still remain significant. As part of our annual impairment test and based upon our assessment of the Wireless segment plan, updated in Q3 2012, and the evolving dynamics of the smartphone industry, we posted a non-cash charge of $690 million. This charge reflects our current best estimate of the fair market value of our Wireless business."

Summary Financial Highlights

----------------------------------------------------------------------------
U.S. GAAP                                          Q3 2012  Q2 2012  Q3 2011
(In Million US$)                                                            
----------------------------------------------------------------------------
Net Revenues (a)                                    2,166    2,148    2,442 
----------------------------------------------------------------------------
Gross Margin                                        34.8%    34.3%    35.8% 
----------------------------------------------------------------------------
Operating Loss, as reported                         (792)    (207)    (23)  
----------------------------------------------------------------------------
Net Income (Loss) attributable to parent company    (478)    (75)      71   
----------------------------------------------------------------------------

(a) Net revenues include sales recorded by ST-Ericsson as consolidated by ST

                                                                            
                                                                            
----------------------------------------------------------------------------
Non-U.S. GAAP*                                     Q3 2012  Q2 2012  Q3 2011
Before impairment, restructuring and one-time                               
 items                                                                      
(In Million US$)                                                            
----------------------------------------------------------------------------
Operating Loss                                      (79)     (151)    (13)  
----------------------------------------------------------------------------
Operating Margin                                   (3.6%)   (7.0%)   (0.5%) 
----------------------------------------------------------------------------
Operating Margin - attributable to ST               0.3%    (1.3%)    4.3%  
----------------------------------------------------------------------------
                                                                            
                                                                            

Third Quarter Review

ST's third quarter net revenues increased 0.9% on a sequential basis, with ST's wholly-owned businesses stable and the Wireless product segment increasing by about 4%, including revenue from IP licensing of $35 million. The EMEA region grew sequentially 5%, while Greater China & South Asia, the Americas, and Japan & Korea were relatively flat.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9  Next Page »



Review Article Be the first to review this article
Harris

Featured Video
Jobs
Project Manager for Keystone Aerial Surveys at Philadelphia, PA
GIS Specialist for Fresno Irrigation District at Fresno, CA
Geospatial Analyst - Senior for BAE Systems Intelligence & Security at Springfield, VA
Geospatial Systems Administrator for BAE Systems Intelligence & Security at arnold, MO
Division Engineer for Montana Dept. Of Commerce at Helena, MT
Senior Mechanical Engineer for BAE Systems Intelligence & Security at Arlington, VA
Upcoming Events
Webinar: What's New in Global Mapper v19.1 at United States - Feb 27, 2018
2018 Esri Developer Summit at Palm Springs Convention Center Palm Springs CA - Mar 6 - 9, 2018
Gi4DM 2018: GeoInformation for Disaster Management at Suleyman Demirel Cultural Center Maslak Campus of Istanbul Technical University (ITU) Istanbul Turkey - Mar 18 - 21, 2018
2018 GIS/CAMA Technologies Conference at Hyatt Regency Houston Houston TX - Mar 19 - 22, 2018
Teledyne Optech
Teledyne:
GEOINT2018



Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise