- Net revenues of $2.44 billion and gross margin of 35.8% in third quarter, within guidance(PRNewswire) — STMicroelectronics (NYSE: STM) reported financial results for the third quarter and nine months ended October 1, 2011.
President and CEO Carlo Bozotti commented, "We entered the third quarter preparing to face a difficult market environment and much weaker than planned business with a major customer as well as ongoing inventory adjustments. Reflecting these factors, our third quarter results were substantially in line with the business outlook we provided with net revenues decreasing 4.9% sequentially and gross margin at 35.8%. During the third quarter we have seen further deterioration in the semiconductor market environment amid macro-economic uncertainty and we are now experiencing a much weaker demand across a broader range of products.
"While the current market conditions are difficult, it is clear that the investments we made over the last several years in our two strategic pillars, Sense & Power and Multimedia Convergence applications, have strengthened our market position, growth trajectory and profitability. ST's wholly-owned businesses revenue growth of 9.3% for the first nine months of 2011 demonstrates the progress made, in spite of the changing market environment over this timeframe. In particular, we saw growth in MEMS, automotive ICs, microcontrollers and imaging products, and these sales advances have translated into improved profitability with ACCI, AMM and PDP delivering operating income growth and operating margin expansion on a year-to-date basis.
"With respect to our wireless joint venture, ST-Ericsson's third quarter revenues came in slightly ahead of expectations. The Company continues to make progress as more devices with ST-Ericsson's new platforms are entering the market and in the quarter, the first smartphone using ST-Ericsson's NovaThor™ platform has ramped with one leading manufacturer. Nonetheless, ST-Ericsson's operating loss remains substantial while it transitions to its new product portfolio."
Summary Financial Highlights
(In Million US$)
Net Revenues (a)
Operating Income (Loss), as reported
Non-U.S. GAAP Operating Income (Loss) before restructuring*
Non-U.S. GAAP Operating Margin before restructuring*
Non-U.S. GAAP Operating Margin before restructuring
attributable to ST*
(a) Net revenues include sales recorded by ST-Ericsson as consolidated by ST