ST-Ericsson reports second quarter 2012 financial results
(firmenpresse) - GENEVA -- (Marketwire) -- 07/17/12 --
ST-Ericsson, a joint venture of
STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), reported
financial
results for the second fiscal quarter ending June 30, 2012.
Sales in the second quarter increased 19 percent over the prior
quarter
reflecting a significant ramp of volumes of NovaThor™ platforms
shipping to
our major customers. Adjusted operating loss decreased sequentially
by $62
million to $235 million, as the result of volume and margin improvements
due to
new platforms and the first steps of the ongoing actions to reduce
operating
expenses.
Didier Lamouche, President and CEO of ST-Ericsson said: "This has been a
quarter
of progress across the board. We ramped our NovaThor ModAp platform with
Samsung
and Sony Mobile Communications and also added several new Chinese key
players.
We are executing in a timely manner our new strategic plan to reposition
our
whole business model and we finalized on July 1, as anticipated, the
transfer of
the application processors development team to STMicroelectronics to build
a
world class partnership.
We are advancing towards our objective to reduce our breakeven point and to
reach sustainable profitability. During the quarter, all profit and loss
metrics
showed a sequential improvement: from revenue growth to gross margin
expansion
and from expense reduction to the decrease of our operating loss. While
these
indicators are encouraging, we recognize that further improvements in the
execution of our critical programs are needed. Moreover, we operate in a
very
dynamic, fast-changing market and a highly competitive environment. In this
context our primary focus is on delivering improvements of operating
results and
cash flow."
Additional financial information
The net financial position(2) at the end of the second quarter was
negative
$1205 million.
Inventory decreased by $38 million reaching $171 million at the end
of the
second quarter.
Outlook
Given, on one hand, the very substantial revenue growth during the
second
quarter and, on the other hand, the macro-economic and industry
environment, ST-
Ericsson expects net sales to be approximately flat sequentially for the
third
quarter 2012.
Highlights - products, technology and wins announced in the second quarter
2012
Footnotes
1) The adjusted operating income/(loss) is defined as the
operating
income/(loss) reported before amortization of acquisition-related
intangibles
and restructuring charges and is used by management to help
enhance the
understanding of ongoing operations and to communicate the impact of the
items
on the operating loss as reported.
2) Net financial position represents the balance between financial assets,
which
comprise cash, cash equivalents and short-term deposits, and financial
debt
which includes bank overdrafts and parent companies short-term bridge
credit
facilities.
3) Net operating cash flow is defined as net cash from operating
activities,
less capital expenditure and less restructuring charges.
Notes to editors
ST-Ericsson invites journalists, analysts and investors to a conference
call
scheduled on July 18 at 12:00 pm (CET). Call-in numbers, a live webcast of
the
conference call, as well as supporting slides, will be available at
.
About ST-Ericsson
ST-Ericsson is a world leader in developing and delivering a complete
portfolio
of innovative mobile platforms and cutting-edge wireless semiconductor
solutions
across the broad spectrum of mobile technologies. The company is a
leading
supplier to the top handset manufacturers and generated sales of $1.7
billion in
2011. ST-Ericsson was established as a 50/50 joint venture by
STMicroelectronics
(NYSE: STM) and Ericsson (NASDAQ: ERIC) in February 2009, with
headquarters in
Geneva, Switzerland.
The ST-Ericsson results reported in this press release do not reflect in
their
entirety the results of the Wireless Segment of STMicroelectronics, which
include other activities that are not part of ST-Ericsson.
This press release contains forward-looking statements that involve
inherent
risks and uncertainties. We have identified certain important factors that
may
cause actual results to differ materially from those contained in such
forward-
looking statements. For a detailed description of risk factors see
STMicroelectronics' (NYSE: STM) and Ericsson's (NASDAQ: ERIC) filings with
the US
Securities and Exchange Commission, particularly each company's latest
published
Annual Report on Form 20-F.
Second quarter 2012 financial results:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
[HUG#1627450]
FOR FURTHER INFORMATION, PLEASE CONTACT:
Global Communications & Media Relations
Claudia Levo, Geneva, Switzerland
Investor & Analyst Relations
Fabrizio Rossini, Geneva, Switzerland
Phone: +41 22 929 6973
Email:
Pamela McCracken, Santa Clara, U.S.A.
Phone: +1 408 919 8743
Email:
Ericsson Investor Relations
Asa Konnbjer, Stockholm, Sweden
Phone: +46 10 713 3928
Email:
STMicroelectronics Investor Relations
Tait Sorensen, Phoenix AZ, US
Phone: +1 602 485 2064
Celine Berthier, Geneva, Switzerland
Phone: +41 22 929 5812
E-mail:
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Datum: 17.07.2012 - 21:04 Uhr
Sprache: Deutsch
News-ID 166160
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Kategorie:
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