STMicroelectronics Reports 2009 Second Quarter and First Half Financial Results

- Revenues of $1,993 million, up 20% sequentially - Inventory reduced by $207 million in second quarter, $391 million in first half - Net operating cash flow* turned positive to $45 million excluding M&A

GENEVA, July 28 /PRNewswire-FirstCall/ -- STMicroelectronics (NYSE: STM) reported financial results for the 2009 second quarter and first half ended June 27, 2009.

"ST's second quarter results reflect solid progress across several key fronts," said President and CEO Carlo Bozotti. He then added:

    --  "Revenue results of $1.99 billion for the second quarter came in
        above the high end of our internal planning target range of $1.73 to
        $1.93 billion, principally driven by stronger-than-expected performance
        across most market segments including Computer, Automotive, Telecom and
        Industrial and in China and Asia-Pacific.
    --  Bookings steadily increased through the second quarter despite a still
        uncertain environment.
    --  Our strong actions on fab loading to reduce inventory levels have led to
        a reduction in inventories of almost $400 million in just six months,
        accelerating inventory turns sequentially to 4.1 turns from 2.9 turns.
        As expected, these actions have driven our second quarter gross margin
        to an extraordinary low level.

"It is clear that the global recession has negatively impacted our financial results in the first half of 2009, but it has not slowed our efforts to develop leading-edge products. In the second quarter our pace of innovation continued as we brought to the market many next-generation products including analog controllers and power MOSFETs for power management in computer motherboards, high-voltage MDMesh power MOSFETs for switched-mode power supplies, MEMS gyroscopes, and advanced GPS solutions. Additionally, we ramped-up 55nm technology in ICs for set-top-boxes and, in wireless, we shipped in volume TD-SCDMA devices."

(*) Net operating cash flow is a non-U.S. GAAP measure. Please refer to Attachment A for additional information explaining why the Company believes this measure is important and for reconciliation to U.S. GAAP.

Second Quarter Review

ST's net revenues for the second quarter of 2009 total $1,993 million and include the complete integration of the former Ericsson Mobile Platforms business into ST-Ericsson and $18 million from the licensing of technology. Net revenues increased 20% sequentially reflecting an increase in demand across ST's served market segments, as well as in all regions, with particular strength in China and Asia Pacific. Net revenues declined in comparison to the year-ago quarter in all market segments except Telecom, and in all regions except Asia Pacific, due to business conditions.

     Net Revenues By Market Segment /
      Channel (a)
     (In %)                                  Q2 2009    Q1 2009    Q2 2008
    ------------------------------------     -------    -------    -------
     Market Segment / Channel:

        Automotive                               12%        12%        16%
                                                 --         --         --
        Computer                                 13%        11%        12%
                                                 --         --         --
        Consumer                                 11%        14%        14%
                                                 --         --         --
        Industrial & Other                        8%         8%        10%
                                                  -          -         --
        Telecom                                  41%        43%        29%
                                                 --         --         --
     Total OEM                                   85%        88%        81%
                                                 --         --         --
     Distribution                                15%        12%        19%
                                                 --                --                  --

        (a)  Sales  recorded  by  ST-Ericsson  and  consolidated  by  ST  are  included  in
                Telecom  and  Distribution.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10  Next Page »

Review Article Be the first to review this article


Featured Video
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Acquiring Mentor: Four Good Ideas, One Great
More Editorial  
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Upcoming Events
DeviceWerx - 2016 at Green Valley Ranch Casino & Resort Las Vegas NV - Nov 3 - 4, 2016
2016 International Conference On Computer Aided Design at Doubletree Hotel Austin TX - Nov 7 - 10, 2016
ICCAD 2016, Nov 7-10, 2016 at Doubletree Hotel in Austin, TX at Doubletree Hotel Austin TX - Nov 7 - 10, 2016
Electric&Hybrid Aerospace Technology Symposium 2016 at Conference Centre East. Koelnmesse (East Entrance) Messeplatz 1 Cologne Germany - Nov 9 - 10, 2016
S2C: FPGA Base prototyping- Download white paper

Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy