Product category:
Communications ICs (Wired)
News Release from: STMicroelectronics
Edited by the Electronicstalk Editorial
Team on 26 April 2007
Telecomms market drags STM's revenues
down
STMicroelectronics reports net revenues for the first quarter of US $2276 million, down 3.7% compared with the $2364 million reported in last year's first quarter.
STMicroelectronics has reported financial results for the first quarter ended 31st March 2007 Net revenues for the first quarter were US $2276 million, decreasing 3.7% compared with the $2364 million reported in last year's first quarter, and reflecting a double-digit decrease in the telecomms market segment
This article was originally published on Electronicstalk on 8 Nov 2004 at 8.00am (UK)
Related stories
Driver drives LED efficiency
STMicroelectronics has introduced a new white LED driver with specific features for small LCD module backlight and high efficiency white LED power supply for portable applications.
Single-chip tuner cuts set-top box parts count
The STB6000 single-chip silicon tuner is designed to replace complex discrete component tuners in set-top boxes used for receiving digital TV or web-based material via satellite.
Flash memory revenues declined 21.6%, whereas all other product sales were flat year-over-year.
Sequentially, net revenues decreased 8.4% from the $2483 million reported in the prior quarter, largely reflecting lower telecomms and consumer sales.
Flash memory revenues decreased 13.4% sequentially with all other product sales decreasing 7.6%.
Further reading
Single-chip Bluetooth comes in under $3
The STLC2500 is a single-chip product for handheld terminal applications that adds full Bluetooth v1.2 function and capability with superior radio performance and very low power consumption.
Driver houses complete automotive H bridge
STMicroelectronics has produced a complete H bridge in a single package for high-power automotive applications such as driving window lifts, seat positioners and for DC motor control.
Down-convertor module provides multiple channels
A new and complete low-noise block down-convertor subsystem aims to help satellite broadcasters simplify installations and reduce costs.
Year-over-year and sequential growth in automotive, as well as year-over-year growth in the industrial segment were more than offset by declines in other market segments.
Gross profit was $785 million for the 2007 first quarter down from the $837 million in last year's first quarter.
The gross margin was 34.5% in the 2007 first quarter.
On a sequential basis, gross profit and gross margin decreased from the fourth quarter levels of $901 million and 36.3%.
President and CEO Carlo Bozotti commented: "The trough of the multi-quarter industry correction currently underway appears to be somewhat deeper than we or industry analysts had anticipated".
"Our first quarter sales and operating results were negatively impacted by declines in the wireless and consumer segments, in particular, as well as a tougher overall price environment and an unfavourable product mix within wireless".
"As we manage through this period of correction, factory loadings have adversely affected gross margin".
Total R and D and SG and A expenses were $696 million in the first quarter, representing a sequential quarterly decrease of 2%.
R and D expenses increased 1% to $435 million in the 2007 first quarter versus the $430 million in the prior quarter.
SG and A expenses declined to $261 million for the 2007 first quarter compared with $281 million in the prior quarter.
Combined selling, general and administrative and research and development expenses represented 30.6% of net revenues in the first quarter, compared with 28.6% in the prior quarter.
For the 2007 first quarter, the company reported operating income of $62 million and an operating margin of 2.7% (3.2% excluding restructuring and impairment charges).
In the prior quarter, the company reported operating income of $173 million and an operating margin of 7.0% (7.4% excluding restructuring and impairment charges).
In the year-ago quarter, the company reported operating income of $140 million and an operating margin of 5.9% (6.5% excluding restructuring and impairment charges).
For the 2007 first quarter, net income totalled $74 million, or $0.08 per diluted share, compared with the prior quarter net income of $276 million or $0.30 per diluted share, and the year-ago quarter where net income totalled $132 million or $0.14 per share.
Net results included $12 million of impairment, restructuring charges, and other related closure costs during the 2007 first quarter, representing an after-tax impact of approximately $0.01 per share.
In the prior quarter, restructuring-related expenses were $10 million ($0.01 per share impact) and $13 million ($0.01 per share impact) in the year-ago quarter.
In the first quarter of 2007, the effective average exchange rate for the company was approximately $1.29 to Eur 1.00, compared with $1.28 to Eur 1.00 in the fourth quarter of 2006 and $1.20 to Eur 1.00 in the year-ago quarter.
Net cash from operating activities was $476 million in the first quarter.
Capital expenditures were $285 million in the 2007 first quarter compared with $386 million in the prior quarter.
Net operating cash flow was $172 million for the first quarter, compared with $187 million in the year-ago quarter, and $157 million in the prior quarter.
At 31st March 2007, ST's cash and cash equivalents, marketable securities, short-term deposits and restricted cash equalled $3.0 billion.
Total debt was $2.1 billion.
ST's net financial position was $917 million at the end of the first quarter.
Shareholders' equity was $9.9 billion.
The company noted that inventory increased approximately $20 million sequentially, net of currency effects.
Carlo Bozotti, President and CEO, stated: "We are advancing on our strategic roadmap".
"First, we continue our focus on cash flow and a lighter asset model for ST.
We are decreasing our capital intensity, as evidenced by our first quarter capital expenditures of $285 million, representing a 26% reduction from the prior quarter".
"For the full year, we are driving towards our capex to sales ratio target of 12%, and are solidly on track based on first quarter trends and our capital budget outlook for the rest of 2007".
"As a result, we are increasing our returns to shareholders with the planned 150% increase in the annual cash dividend to $0.30 per share".
"Secondly, following our 1st January reorganisation of NOR and NAND Flash businesses into a stand-alone segment, the internal carve-out activities are essentially completed and we continue to progress towards deconsolidation".
"Finally, the strengthening of our product portfolio has been evident in the market share gains ST achieved during 2006, and our objective in 2007 is to make these improvements more visible in our operating results".
"Supported by the solid foundation of performance within industrial, multisegment and automotive, the progress of our application specific product groups (ASG) will be instrumental to accomplishing this objective".
"While ASG has been most affected by the current industry correction and our inventory actions during this period, we expect to see tangible signs of progress over the course of 2007".
"In particular, new ASG products introduced in the first quarter, most importantly the 3G digital base band, saw limited sales impact thus far, but are expected to ramp nicely through the year".
"Coupled with planned introductions during the remainder of 2007, including new connectivity products, data-storage SoCs, and digital-TV offerings together with progressive growth in multimedia processors, we believe our product roadmap and strategy are gaining traction".
• STMicroelectronics: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• Electronicstalk Home Page
Search the Pro-Talk network of sites
