STMicroelectronics Reports 2010 Second Quarter and First Half Financial Results


(*)Adjusted net earnings, net operating cash flow, net financial position and RONA attributable to ST are non-U.S. GAAP measures. For additional information, please refer to Attachment A.

"In addition, we made significant progress during the first half of 2010 with respect to enhancing our product portfolio, improving our financial performance and strengthening our financial position. Looking ahead to the second half of the year, we expect to see further positive progression in our performance."  

This outlook is based on an assumed effective currency exchange rate of approximately $1.32 = euro 1.00 for the 2010 third quarter, which reflects an assumed exchange rate of $1.23 = euro 1.00 combined with the impact of existing hedging contracts. The third quarter will close on September 25, 2010.

Recent Corporate Developments

On May 7, following the announcement by Micron Technology of the closing of its acquisition of Numonyx Holdings B.V., STMicroelectronics announced that in connection with the sale of its 48.6% stake in Numonyx, ST had received the following consideration:

  • 66.88 million shares of Micron common stock, which are held as marketable securities. A substantial portion of such Micron shares is hedged;  
  • future full ownership of the Numonyx M6 facility in Catania, Italy, which ST has committed to contribute to a new photovoltaic joint initiative among Enel, Sharp and ST; and
  • in connection with the transaction, ST has a payable of $77.8 million due to Francisco Partners at the end of the shares lock-up period. 

Also, at closing of this transaction, the senior credit facility that was supported by ST's guarantee of $225 million was repaid in full.

On May 25, ST announced that all of the proposed resolutions were approved at the Company's Annual General Meeting (AGM), which was held in Amsterdam, the Netherlands, on May 25, 2010.

The main resolutions, proposed by the Supervisory Board, and approved by shareholders were:

  • Approval of the Company's 2009 statutory accounts reported in accordance with International Financial Reporting Standards (IFRS);
  • The reappointment for a three-year term, expiring at the 2013 Annual General Meeting, for the following members of the Supervisory Board: Mr. Raymond Bingham and Mr. Alessandro Ovi; and
  • The distribution of an annual cash dividend of US$0.28 per share, to be paid in four equal quarterly installments.

On June 24, ST announced the publication of the Company's 2009 Corporate Responsibility Report. The report, which covers all of ST's activities and sites in 2009, contains detailed indicators of the Company's performance across the full range of Social, Environmental, Health & Safety, and Corporate Governance issues and reaffirms ST's long-established commitment to serving its stakeholders with integrity, transparency and excellence.

Q2 2010 Products, Technology and Design Wins

Automotive, Consumer, Computer and Communication Infrastructure (ACCI)

Product Highlights

In automotive electronics

  • ST had continued success with its 32-bit Power Architecture® SPC56 family of automotive microcontrollers (MCUs) with:
    • a major powertrain platform design win from a leading tier-one OEM, based on ST's recently announced 55nm (nanometer) embedded Flash technology;
    • two body-control application design wins based on its SPC560B MCU family in North America;
    • and a major design win in Europe for safety applications.
  • Also in body electronics, ST's latest-generation VIPower™ (Vertical Intelligent Power) technology gained a design win for a light-control module from a major Korean car maker.
  • Additionally, ST strengthened its leadership in advanced safety applications, in partnership with Mobileye, with the development of the third generation of its EyeQ3 safety processor with four times more computational power than the previous generation, plus support for USB, FlexRay and Ethernet communications.

In automotive infotainment

  • ST gained an important design win for its leading-edge multi-standard (AM/FM, DAB, HD) radio-receiver DSP from a major OEM in Germany targeting new platforms for a major car maker, expected to begin production in 2013.
  • ST strengthened its leadership position in navigation with production deployment of its Cartesio+ processor SoC enabling cost-optimized dashboard systems combining navigation technology with infotainment features.

In consumer applications

  • In set-top box (STB) chips:
    • ST gained significant design wins for its cost-effective integrated STi7162 / STi7167 platforms in terrestrial and cable STB markets, and for its STi7141 DOCSIS platform in Europe and China;
    • ST delivered its first platforms for the DVB-T2 digital-terrestrial HDTV market in the UK, and delivered integrated DVB-S2 STi7111 platforms in large volume for HD+ / CI+ deployment in Central Europe;
    • ST is ramping up in production of its STi5189 cost-optimised satellite demodulator and MPEG2 decoder platform for markets in India and Latin America, in addition to significantly contributing to the first deployment of HDTV STBs in India;
    • By the end of Q2, cumulative shipments of ST's  state-of-the-art 55nm STB platforms reached more than 10 million units.
  • In integrated digital TV (iDTV) and monitor applications:
    • ST gained several design-wins for an enhanced version of its FLI7510 SoC, which enables 3D TV in a single-chip for 120Hz mainstream iDTVs. The integration, processing power and flexibility of the 'Freeman' family of  SoCs has allowed ST to gain traction in the integrated broadcast and broadband-Internet iDTV market.
    • ST achieved two design-wins for its FLI326xx Faroudja™-based display controllers for LCD TVs, and three design wins at tier-one customers for its high-end STDP802x Faroudja-based LCD-controller SoC family, which offers advanced color processing and DisplayPort and HDMI receivers.
    • Additionally, ST's proposed iDP (internal DisplayPort) interface standard for use in next generation LCD TVs, in cooperation with LG Display, was adopted by VESA (The Video Electronics Standards Association).

  • In audio ICs:
    • ST strengthened its leadership position in flat-panel TVs for its family of Sound Terminal ICs, gaining design wins with two key players in China. Cumulative shipments in 2010 for Sound Terminal ICs have already exceeded 25 million units.
    • ST announced production availability of an analog-input 2x100W class-D power amplifier, extending its range of devices that deliver audiophile sound quality.

In communications infrastructure and computer peripheral applications

  • ST announced full availability of a 32nm platform for the design and development of application-specific integrated circuits (ASICs) for networking applications. Central to the platform is the industry's first Serializer-Deserializer (SerDes) IP available in 32nm 'bulk' silicon.
  • ST unveiled the SPEAr1300 architecture that will be the backbone for new members of its SPEAr® family of microprocessors, targeting high-performance connectivity and embedded applications. ST has already gained a design win for this family from a major communications-infrastructure OEM.
  • ST gained two design wins for motor-controller ICs implemented in the Company's BCD technology from two leading customers, for next-generation enterprise and desktop hard-disk drive applications.

Industrial and Multisegment Sector (IMS) Product Highlights

In MEMS (Micro Electro-Mechanical Systems)

  • Highlights included
    • several design wins for accelerometers with leading mobile device makers, who selected ST's MEMS because of the chip's extremely low current consumption and embedded motion processing features;
    • design wins for 3-axis gyroscopes with several top-tier mobile phone makers;
    • starting high-volume production of three-axis digital gyroscopes to be used in next-generation smartphones;
    • and qualification from Japanese game manufacturer for two-axis analog gyroscopes.
  • ST also introduced new products including
    • the LIS3DH 3-axis digital-output accelerometer that combines drastically reduced power consumption, miniature footprint and enhanced functions;
    • and the L3G4200DH high-performance three-axis digital-output gyroscope embedding power-management capabilities for new applications and advanced user interfaces in gaming, motion tracking and image stabilization.

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