STMicroelectronics Reports 2013 Second Quarter and First Half Financial Results

Embedded Processing Solutions (EPS)

Microcontroller, Memory and Secure MCU (MMS)

  • Continued STM32 momentum with several design wins for the STM32 family for smart-watch applications at major global OEMs, as a sensor-hub in various mobile applications at a major manufacturer, and in a next-generation low-power fitness-monitoring system at a key Americas OEM.
  • Ramped production of STM32 controllers for Wi-Fi modules for Internet of Things applications at various customers.
  • Earned a win from a leading home-appliance manufacturer for our dual-interface memory / dynamic NFC RFID tag in a washing machine.
  • Captured the prestigious 'Electron d'Or 2013' award from ElectroniqueS Magazine for the ST31, the first 32-bit Contactless Secure Microcontroller.

Digital Convergence (DCG)

  • Continued building momentum for ASICs to be manufactured in 28nm FD-SOI technology, with two new design wins for networking and consumer applications.
  • Maintained success with worldwide customers of awards for new set-top box Class2 product family, which has now also obtained the full certification from Nagra and Viaccess.
  • Began an important design at a key customer for the US cable modem based on the Orly/STiD platform.
  • Captured multiple design-ins of DisplayPort smart connectivity products in various applications, including 4Kx2K TV, the first TV with DisplayPort input, at a large global consumer manufacturer.

Imaging, Bi-CMOS, ASIC and Silicon Photonics (IBP)

  • Won a slot for the Image Signal Processor from a leading phone manufacturer.
  • Secured design wins for ASICs using Silicon Photonics with two of the world's top optical communications manufacturers.
  • Collected a broad range of design wins from many customers that use ST BiCMOS or Silicon Photonics process technology in almost 30 new ASIC projects.

Use of Supplemental Non-U.S. GAAP Financial Information

This press release contains supplemental non-U.S. GAAP financial information, including operating income (loss) before impairment, restructuring and one-time items, operating margin before impairment, restructuring and one-time items, operating margin before impairment, restructuring and one-time items attributable to ST, adjusted net earnings, adjusted net earnings per share, free cash flow, net financial position and net financial position, adjusted to account for 50% investment in ST-Ericsson.

Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information by other companies.

See Attachment A of this press release for a reconciliation of the Company's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with the Company's consolidated financial statements prepared in accordance with U.S. GAAP.

Forward-looking information

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements, due to, among other factors:

  • uncertain macro-economic and industry trends;
  • customer demand and acceptance for the products which we design, manufacture and sell;
  • unanticipated events or circumstances which may either impact our ability to execute the planned reductions in our net operating expenses and / or meet the objectives of our R&D Programs which benefit from public funding;
  • future events or circumstances which may require us to reassess our current plans concerning the break up and wind down of our ST-Ericsson joint venture;
  • the loading and the manufacturing performances of our production facilities;
  • the functionalities and performance of our IT systems, which support our critical operational activities including manufacturing, finance and sales;
  • variations in the foreign exchange markets and, more particularly, in the rate of the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
  • the impact of intellectual property ("IP") claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
  • restructuring charges and associated cost savings that differ in amount or timing from our estimates;
  • changes in our overall tax position as a result of changes in tax laws, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
  • the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
  • natural events such as severe weather, earthquakes, tsunami, volcano eruptions or other acts of nature, health risks and epidemics in locations where we, our customers or our suppliers operate;
  • changes in economic, social, political or infrastructure conditions in the locations where we, our customers or our suppliers operate including as a result of macro-economic or regional events, military conflict, social unrest or terrorist activities;
  • availability and costs of raw materials, utilities, third-party manufacturing services, or other supplies required by our operations;

Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward looking terminology, such as "believes," "expects," "may," "are expected to," "should," "would be," "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.

Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information - Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2012, as filed with the SEC on March 4, 2013. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.

STMicroelectronics Conference Call and Webcast Information

On July 23, 2013, the management of STMicroelectronics will conduct a conference call to discuss the Company's operating performance for the second quarter of 2013.

The conference call will be held at 9:00 a.m. U.S. Eastern Time / 3:00 p.m. CET. The conference call will be available live via the Internet by accessing http://investors.st.com. Those accessing the webcast should go to the Web site at least 15 minutes prior to the call, in order to register, download, and install any necessary audio software. The webcast will be available until August 2, 2013.

About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the spectrum of sense and power and automotive products and embedded processing solutions. From energy management and savings to trust and data security, from healthcare and wellness to smart consumer devices, in the home, car and office, at work and at play, ST is found everywhere microelectronics make a positive and innovative contribution to people's life. By getting more from technology to get more from life, ST stands for life.augmented.

In 2012, the Company's net revenues were $8.49 billion. Further information on ST can be found at www.st.com.

(tables attached)

                                                                            
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STMicroelectronics N.V.                                                                                                    
Consolidated  Statements  of  Income                                                                                      
(in  millions  of  U.S.  dollars,  except  per  share                                                            
  data  ($))                                                                                                                                    
                                                                                                                                                        
                                                                                                              Three  Months  Ended      
                                                                                                        (Unaudited)    (Unaudited)
                                                                                                      -------------------------
                                                                                                              June  29,          June  30,
                                                                                                                      2013                  2012
                                                                                                      -------------------------
                                                                                                                                                        
Net  sales                                                                                                  2,034                2,140
Other  revenues                                                                                              11                        8
                                                                                                      -------------------------
    NET  REVENUES                                                                                        2,045                2,148
Cost  of  sales                                                                                      (1,373)            (1,412)
                                                                                                      -------------------------
    GROSS  PROFIT                                                                                            672                    736
Selling,  general  and  administrative                                              (285)                (292)
Research  and  development                                                                    (453)                (617)
Other  income  and  expenses,  net                                                                2                      22
Impairment,  restructuring  charges  and  other                                                                  
  related  closure  costs                                                                          (43)                  (56)
                                                                                                      -------------------------
    Total  Operating  Expenses                                                                (779)                (943)
                                                                                                      -------------------------
    OPERATING  LOSS                                                                                    (107)                (207)
Interest  income  (expense),  net                                                                7                    (6)
Income  (loss)  on  equity-method  investments                                  (89)                    (2)
LOSS  BEFORE  INCOME  TAXES                                                                    (189)                (215)
    AND  NONCONTROLLING  INTEREST                                                                                              
Income  tax  benefit  (expense)                                                                  16                  (20)
                                                                                                      -------------------------
    NET  LOSS                                                                                                (173)                (235)
Net  loss  (income)  attributable  to  noncontrolling                                                        
  interest                                                                                                        21                    160
                                                                                                      -------------------------
    NET  LOSS  ATTRIBUTABLE  TO  PARENT  COMPANY                                  (152)                  (75)
                                                                                                      =========================
                                                                                                                                                        
    EARNINGS  PER  SHARE  (BASIC)  ATTRIBUTABLE  TO                                                                
      PARENT  COMPANY  STOCKHOLDERS                                                      (0.17)              (0.08)
    EARNINGS  PER  SHARE  (DILUTED)  ATTRIBUTABLE  TO                                                            
      PARENT  COMPANY  STOCKHOLDERS                                                      (0.17)              (0.08)
                                                                                                                                                        
    NUMBER  OF  WEIGHTED  AVERAGE                                                                                                
    SHARES  USED  IN  CALCULATING                                                                                                
    EARNINGS  PER  SHARE                                                                            889.0                886.1
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STMicroelectronics  N.V.                                                                                                          
Consolidated  Statements  of  Income                                                                                      
(in  millions  of  U.S.  dollars,  except  per  share                                                            
  data  ($))                                                                                                                                    
                                                                                                                                                        
                                                                                                                Six  Months  Ended        
                                                                                                        (Unaudited)    (Unaudited)
                                                                                                      -------------------------
                                                                                                              June  29,          June  30,
                                                                                                                      2013                  2012
                                                                                                      -------------------------
                                                                                                                                                        
Net  sales                                                                                                  4,037                4,150
Other  revenues                                                                                              18                      15
                                                                                                      -------------------------
    NET  REVENUES                                                                                        4,055                4,165
Cost  of  sales                                                                                      (2,755)            (2,833)
                                                                                                      -------------------------
    GROSS  PROFIT                                                                                        1,300                1,332
Selling,  general  and  administrative                                              (564)                (602)
Research  and  development                                                                    (986)            (1,250)
Other  income  and  expenses,  net                                                                6                      35
Impairment,  restructuring  charges  and  other                                                                  
  related  closure  costs                                                                        (144)                  (74)
                                                                                                      -------------------------
    Total  Operating  Expenses                                                            (1,688)            (1,891)
                                                                                                      -------------------------
    OPERATING  LOSS                                                                                    (388)                (559)
Interest  expense,  net                                                                                  -                  (19)
Loss  on  equity-method  investments                                                  (102)                    (9)
Gain  on  financial  instruments,  net                                                        -                        3
    LOSS  BEFORE  INCOME  TAXES                                                                (490)                (584)
        AND  NONCONTROLLING  INTEREST                                                                                          
Income  tax  benefit                                                                                      21                      14
                                                                                                      -------------------------
    NET  LOSS                                                                                                (469)                (570)
Net  loss  (income)  attributable  to  noncontrolling                                                        
  interest                                                                                                      147                    318
                                                                                                      -------------------------
    NET  LOSS  ATTRIBUTABLE  TO  PARENT  COMPANY                                  (322)                (252)
                                                                                                      =========================
                                                                                                                                                        
    EARNINGS  PER  SHARE  (BASIC)  ATTRIBUTABLE  TO                                                                
      PARENT  COMPANY  STOCKHOLDERS                                                      (0.36)              (0.28)
    EARNINGS  PER  SHARE  (DILUTED)  ATTRIBUTABLE  TO                                                            
      PARENT  COMPANY  STOCKHOLDERS                                                      (0.36)              (0.28)
                                                                                                                                                        
    NUMBER  OF  WEIGHTED  AVERAGE                                                                                                
    SHARES  USED  IN  CALCULATING                                                                                                
    EARNINGS  PER  SHARE                                                                            888.5                885.5
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STMicroelectronics  N.V.                                                                                                          
CONSOLIDATED  BALANCE  SHEETS                                                                                                  
As  at                                                                      June  29,          March  30,    December  31,
In  millions  of  U.S.  dollars                              2013                  2013                  2012        
                                                                            --------------------------------------
                                                                              (Unaudited)    (Unaudited)        Audited    
----------------------------------------------------------------------------
ASSETS                                                                                                                                            
Current  assets:                                                                                                                          
Cash  and  cash  equivalents                                        1,583                1,718                2,250
Short-term  deposits                                                            1                        1                        1
Marketable  securities                                                    189                    187                    238
Trade  accounts  receivable,  net                              1,118                1,025                1,005
Inventories                                                                    1,336                1,306                1,353
Deferred  tax  assets                                                        224                    141                    137
Assets  held  for  sale                                                        28                      37                        -
Other  current  assets                                                      567                    501                    518
                                                                            --------------------------------------
Total  current  assets                                                  5,046                4,916                5,502
Goodwill                                                                              135                    140                    141
Other  intangible  assets,  net                                      250                    208                    213
Property,  plant  and  equipment,  net                      3,276                3,275                3,481
Non-current  deferred  tax  assets                                395                    439                    414
Restricted  cash                                                                    -                        4                        4
Long-term  investments                                                      29                    110                    119
Other  non-current  assets                                              512                    540                    560
                                                                            --------------------------------------
                                                                                          4,597                4,716                4,932
                                                                            --------------------------------------
Total  assets                                                                  9,643                9,632              10,434
                                                                                                                                                        
LIABILITIES  AND  EQUITY                                                                                                            
Current  liabilities:                                                                                                                
Short-term  debt                                                                313                    250                    630
Trade  accounts  payable                                                  985                    862                    797
Other  payables  and  accrued                                                                                                    
  liabilities                                                                      993                    997                    942
Dividends  payable  to  stockholders                              94                        -                      89
Deferred  tax  liabilities                                                  1                      11                      11
Accrued  income  tax                                                            65                      77                      86
                                                                            --------------------------------------
Total  current  liabilities                                        2,451                2,197                2,555
Long-term  debt                                                                  651                    647                    671
Post-retirement  benefit  obligations                        492                    474                    477
Long-term  deferred  tax  liabilities                            15                      15                      14
Other  long-term  liabilities                                        357                    351                    353
                                                                            --------------------------------------
                                                                                          1,515                1,487                1,515
Total  liabilities                                                        3,966                3,684                4,070
Commitment  and  contingencies                                                                                                
Equity                                                                                                                                            
Parent  company  stockholders'  equity                                                                                  
Common  stock  (preferred  stock:                                                                                            
  540,000,000  shares  authorized,  not                                                                                  
  issued;  common  stock:  Euro  1.04                                                                                        
  nominal  value,  1,200,000,000  shares                                                                                
  authorized,  910,622,305  shares                                                                                          
  issued,  890,459,183  shares                                                                                                  
  outstanding)                                                                1,156                1,156                1,156
Capital  surplus                                                            2,564                2,559                2,555
Retained  earnings                                                        1,433                1,788                1,959
Accumulated  other  comprehensive                                                                                          
  income                                                                                749                    673                    794
Treasury  stock                                                              (213)                (239)                (239)
                                                                            --------------------------------------
Total  parent  company  stockholders'                                                                                    
  equity                                                                            5,689                5,937                6,225
Noncontrolling  interest                                              (12)                      11                    139
                                                                            --------------------------------------
Total  equity                                                                  5,677                5,948                6,364
Total  liabilities  and  equity                                  9,643                9,632              10,434
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STMicroelectronics  N.V.                                                                                                          
                                                                                                                                                        
SELECTED  CASH  FLOW  DATA                                                                                                          
                                                                                                                                                        
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Cash  Flow  Data  (in  US$  millions)                              Q2  2013        Q1  2013        Q2  2012
----------------------------------------------------------------------------
                                                                                                                                                        
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Net  Cash  from  (used  in)  operating                                      15                  66              (37)
  activities                                                                                                                                  
----------------------------------------------------------------------------
Net  Cash  used  in  investing  activities                        (146)              (81)            (199)
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Net  Cash  from  (used  in)  financing                                  (12)            (481)                  33
  activities                                                                                                                                  
----------------------------------------------------------------------------
Net  Cash  decrease                                                                (135)            (532)            (253)
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Selected  Cash  Flow  Data  (in  US$  millions)            Q2  2013        Q1  2013        Q2  2012
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Depreciation  &  amortization                                                224                237                281
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Net  payment  for  Capital  expenditures                          (121)            (111)              (70)
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Dividends  paid  to  stockholders*                                      (75)              (89)              (89)
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Change  in  inventories,  net                                                (18)                  30              (21)
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*  The  amount  paid  in  Q2  2013  does  not  include  the  American                                    
  investors,  paid  in  July  2013.                                                                                            
                                                                                                                                                        
 

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