At December 31, 2006, ST's cash and cash equivalents, marketable securities, short-term deposits and restricted cash equaled $2.9 billion. Total debt was $2.1 billion. ST's net financial position** improved by approximately $536 million in 2006 to $761 million. Shareholders' equity was $9.7 billion at December 31, 2006.
(*) Net operating cash flow is a non-US GAAP metric, which the Company's management utilizes as a measure of cash generation capability. It is defined as net cash from operating activities ($559 million in the fourth quarter of 2006) minus net cash used in investing activities (primarily capital expenditures) excluding restricted cash, payments for purchase of and proceeds from the sale of marketable securities and investment in and proceeds from matured short-term deposits ($402 million in the fourth quarter of 2006). (**) Net financial position is a non-US GAAP metric used by the Company's management to help assess financial flexibility. It is defined as cash and cash equivalents, marketable securities, and short-term deposits and restricted cash ($2,891 million) minus total debt (bank overdrafts $0 million + current portion of long-term debt $136 million + long-term debt $1,994 million). Net Revenues by Market Segment for Q4 and Full Year 2006
The following table estimates, within a variance of 5% to 10% in the absolute dollar amount, the relative weighting of each of the Company's target market segments for the fourth quarter and full year 2006.
Market Segment % of Net Revenues Q4 2006 FY 2006 Automotive 15% 15% Consumer 17% 16% Computer 17% 17% Telecom 36% 38% Industrial & Others 15% 14%
For the fourth quarter, Consumer was the fastest growing segment sequentially, increasing by about 5%. Industrial and Others and Computer were both up approximately 2% over the prior quarter. Automotive was essentially flat while Telecom declined 6.5% from the prior quarter.
For the year, Telecom was the fastest growing segment, increasing nearly 19%, followed by Industrial and Others, which was up 10%. Automotive, Computer and Consumer all increased approximately 6%.
Financial and Operating Data by Product Segment for Q4 and Full Year 2006
The following tables and commentary provide a breakdown of revenues and operating income by product segment.
In Million US$ Q4 2006 % of Net Operating Segment Net Revenues Revenues income (loss) ASG (Application Specific Product Groups)* $1,342 54.0% $111 MPA (Micro, Power & Analog)** 597 24.1% 103 MPG (Memory Products Group) 525 21.1% 0 Others (1)(2) 19 0.8% (41) TOTAL $2,483 100% $173
Sequentially, Application Specific Product Groups' revenues decreased 2%, MPG sales declined 0.8%, and MPA sales increased 0.3%. Operating profit declined to $111 million for Application Specific Product Groups and $103 million for MPA. MPG was breakeven. Flash memory sales declined 1.6% from the prior quarter to $369 million.
In Million US$ Full Year 2006 % of Net Operating Segment Net Revenues Revenues income (loss) ASG (Application Specific Product Groups)* $5,396 54.7% $439 MPA (Micro, Power & Analog)** 2,243 22.8% 362 MPG (Memory Products Group) 2,137 21.7% 34 Others (1)(2) 78 0.8% (158) TOTAL $9,854 100% $677 * Automotive; Computer Peripheral; and Home, Personal, and Communication products ** Effective January 1, 2006 the Microcontroller, Linear and Discrete (MLD) Group was renamed as the Micro, Power and Analog (MPA) product segment to better reflect product portfolio focus and increased capabilities in advanced Analog. No change occurred in the Group's perimeter or organization. (1) Net revenues of "Others" include revenues from sales of Subsystems and other products not allocated to product segments. (2) Operating loss of "Others" includes items such as impairment, restructuring charges, and other related closure costs, start-up costs, and other unallocated expenses such as strategic or special research and development programs, certain corporate-level operating expenses, certain patent claims and litigations, and other costs that are not allocated to the product segments, as well as operating earnings or losses of the Subsystems and Other Products segment. Certain costs, mainly R&D, formerly in the "Others" category, have been allocated to the segments.