STMicroelectronics Reports 2013 First Quarter Financial Results
(Thomson Reuters ONE) -
PR No. C2714C
STMicroelectronics Reports 2013 First Quarter Financial Results
* First quarter net revenues $2.01 billion, gross margin 31.3%; in line with
guidance
* ST revenues excluding ST-Ericsson decreased 3% sequentially, better than
normal seasonality
* Signed agreement with Ericsson to exit the ST-Ericsson joint venture
Geneva, April 22, 2013 - STMicroelectronics (NYSE: STM), a global semiconductor
leader serving customers across the spectrum of electronics applications,
reported financial results for the first quarter ending March 30, 2013.
Effective January 1, 2013, the segment reporting of ST's results reflects the
new strategy announced on December 10, 2012: Sense & Power and Automotive
Products (SPA) and Embedded Processing Solutions (EPS).
First quarter net revenues totaled $2.01 billion and gross margin was 31.3%. Net
loss attributable to ST was $171 million, mainly due to the 50% share in ST-
Ericsson operating loss and restructuring costs.
"First quarter sales and gross margin results were in line with the mid-point of
our guidance," said ST President and CEO Carlo Bozotti. "Importantly, excluding
ST-Ericsson, our businesses delivered revenues better than normal seasonality
despite the ongoing soft macro-economic environment, due to the strong
performance of Microcontrollers, Power and Smart Power for industrial and
automotive. We also achieved key design wins with leading customers for 28nm FD-
SOI technology products and home-gateway applications.
"We continued to maintain a strong net financial position in the quarter, while
using some of our available cash to repay at maturity our outstanding 2013
Senior bonds. We have signed an agreement with Ericsson to split up the ST-
Ericsson joint venture. We have also begun to advance towards our first quarter
2014 net operating expense goal, significantly reducing operating costs in the
quarter."
Summary Financial Highlights
+------------------------------------------------+-------+-------+-------+
|U.S. GAAP |Q1 2013|Q4 2012|Q1 2012|
|(Million US$) | | | |
+------------------------------------------------+-------+-------+-------+
|Net Revenues ((a)) | 2,009 | 2,162 | 2,017 |
+------------------------------------------------+-------+-------+-------+
|Gross Margin | 31.3% | 32.3% | 29.6% |
+------------------------------------------------+-------+-------+-------+
|Operating Income (Loss), as reported | (281) | (730) | (352) |
+------------------------------------------------+-------+-------+-------+
|Net Income (Loss) attributable to parent company| (171) | (428) | (176) |
+------------------------------------------------+-------+-------+-------+
((a)) Net revenues include sales recorded by ST-Ericsson as consolidated by ST
+---------------------------------------------------+-------+-------+-------+
|Non-U.S. GAAP* | | | |
|Before impairment, restructuring and one-time items|Q1 2013|Q4 2012|Q1 2012|
|(Million US$) | | | |
+---------------------------------------------------+-------+-------+-------+
|Operating Income (Loss) | (180) | (142) | (280) |
+---------------------------------------------------+-------+-------+-------+
|Operating Margin |(8.9%) |(6.5%) |(13.9%)|
+---------------------------------------------------+-------+-------+-------+
|Operating Margin - Attributable to ST |(5.3%) |(3.3%) |(6.5%) |
+---------------------------------------------------+-------+-------+-------+
ST-Ericsson Information
As announced on March 18, 2013, ST and Ericsson have agreed to the transfer of
certain ST-Ericsson employees and assets to the respective parent companies and
to the wind-down of the remaining joint venture. The formal transfer of the
relevant parts of ST-Ericsson to the parent companies is expected to be
completed during the third quarter of 2013, subject to regulatory approvals. As
agreed, from March 2, 2013 and until completion of the wind-down, Ericsson is
assuming the funding of the LTE Modem business, and ST is assuming the funding
of the existing products and related business as well as certain assembly and
test facilities. Both shareholders are assuming equal funding of the wind-down
related activities.
As previously disclosed, ST has estimated its total cash costs, including
covering ST-Ericsson's ongoing operations during the transition period and
restructuring costs related to the ST-Ericsson wind-down, at between $350
million and $450 million of which, during the 2013 first quarter, ST funded $83
million under the ST-Ericsson parent facility.
ST-Ericsson's net revenues in the first quarter of 2013 decreased 28%
sequentially to $256 million reflecting, as anticipated, the drop of sales of
legacy products to its prior larger customer, seasonal factors, no revenues from
licensing and softer market conditions. ST-Ericsson's operating loss, excluding
amortization of acquisition-related intangibles and restructuring charges was
$158 million in the first quarter of 2013, compared to a loss of $133 million
and $297 million in the prior and year ago quarter, respectively
First Quarter Review
ST's first quarter revenues, excluding the Wireless product line, increased
1.3% year-over-year, and decreased 3.4% on a sequential basis, reflecting better
than normal seasonality. Overall, net revenues decreased 0.4% and 7.1% on a
year-over-year and sequential basis, respectively.
EMEA led all regions with 0.2% sequential revenue growth while the Americas
decreased by 3.3% and Japan & Korea were lower by 5.1%. Greater China & South
Asia revenues decreased 13.2% driven by business dynamics at certain key global
accounts.
-----
(*)Operating income (loss) before impairment, restructuring and one-time items,
operating margin before impairment, restructuring and one-time items and
operating margin before impairment, restructuring and one-time items
attributable to ST are non-U.S. GAAP measures. Please refer to Attachment A for
additional information explaining why the Company believes these measures are
important and reconciliation to U.S. GAAP.
First quarter gross profit was $628 million and gross margin was 31.3%. On a
year-over-year basis, gross profit increased 5.4% and gross margin improved 170
basis points. On a sequential basis, gross margin declined 100 basis points and
was in line with expectations, reflecting no revenues from licensing at ST-
Ericsson and the usual negative price pressure we experience at the beginning of
the year, offset in part by lower unsaturation charges.
R&D expenses were $533 million and declined by 16% on a year over year basis
period. On a sequential basis, R&D expenses decreased $52 million or 9% compared
to the prior quarter, benefiting principally from the ongoing restructuring
initiatives at ST-Ericsson as well as, starting March 2, 2013, the charge back
to Ericsson of the LTE Modem expenses of $29 million.
SG&A expenses totaled $279 million in the first quarter, a reduction of 10%
compared to the year-ago period mainly due to cost reduction initiatives. On a
sequential basis, SG&A expenses decreased by 4% mainly due to seasonality.
Impairment, restructuring and other related closure costs for the first quarter
were $101 million, of which $87 million were related to ST-Ericsson.
Furthermore, ST recorded a charge of $8 million as loss on equity-method
investments related to ST-Ericsson JVD, which is accounted for under the equity-
method, primarily due to additional restructuring charges.
Operating margin before impairment, restructuring and one-time items
attributable to ST was a negative 5.3% in the 2013 first quarter compared to
negative 3.3% in the prior quarter.*
In the first quarter of 2013, net loss attributable to non-controlling interest
was $126 million, which mainly included the 50% owned by Ericsson in the ST-
Ericsson joint venture, as consolidated by ST. In the fourth quarter of 2012,
the corresponding amount was $361 million.
First quarter net loss was $171 million or $(0.19) per share, compared to a net
loss of $(0.48) and $(0.20) per share in the prior and year-ago quarters,
respectively. On an adjusted basis, net of related taxes, ST reported non-U.S.
GAAP net loss per share of $(0.13) in the first quarter, excluding impairment
and restructuring charges and one-time items, compared to a net loss of $(0.11)
and $(0.14) per share in the prior and year-ago quarters, respectively.*
For the first quarter of 2013, the effective average exchange rate for the
Company was approximately $1.31 to ?1.00 compared to $1.30 to ?1.00 for the
fourth quarter of 2012 and $1.33 to ?1.00 for the first quarter of 2012.
Net Revenues by Market Channel
+-----------------------------------+---------+---------+---------+
| Net Revenues By Market Channel(%) | Q1 2013 | Q4 2012 | Q1 2012 |
+-----------------------------------+---------+---------+---------+
| Total OEM | 75% | 77% | 79% |
+-----------------------------------+---------+---------+---------+
| Distribution | 25% | 23% | 21% |
+-----------------------------------+---------+---------+---------+
Revenues and Operating Results by ST Product Segment
Effective January 1, 2013, the segment reporting of ST's results reflects the
new strategy announced on December 10, 2012:
* Sense & Power and Automotive Products (SPA), including Analog and MEMS
(AMS), Automotive (APG), Industrial and Power Discrete (IPD) and Other SPA;
and
* Embedded Processing Solutions (EPS), comprised of Digital Convergence Group
(DCG), Microcontrollers, Memory and Security (MMS), Imaging, Bi-CMOS ASIC
and Silicon Photonics (IBP), Wireless (WPS) and Other EPS.
-----
(*)Operating margin before impairment, restructuring and one-time items
attributable to ST and adjusted net earnings (loss) per share are non-U.S. GAAP
measures. For additional information and reconciliation to U.S. GAAP, please
refer to Attachment A.
As a result of the transition to the new strategy, Wireless, which is largely
related to ST-Ericsson as consolidated by ST, is included in ST's new Embedded
Processing Solutions product segment. ST has provided historical quarterly
information by Product Segment on page 6 of this press release.
+-----------------+--------+-------------+--------+---------+--------+---------+
|Operating Segment|Q1 2013 | Q1 2013 |Q4 2012 | Q4 2012 |Q1 2012 | Q1 2012 |
| (Million US$) | Net | Operating | Net |Operating| Net |Operating|
| |Revenues|Income (Loss)|Revenues| Income |Revenues| Income |
| | | | | (Loss) | | (Loss) |
+-----------------+--------+-------------+--------+---------+--------+---------+
|Sense & Power and| | | | | | |
|Automotive | 1,127| 58| 1,184| 106| 1,107| 93|
|Products | | | | | | |
|(SPA) | | | | | | |
+-----------------+--------+-------------+--------+---------+--------+---------+
|Embedded | | | | | | |
|Processing | | | | | | |
|Solutions | 867| (210)| 964| (182)| 901| (294)|
|including | | | | | | |
|Wireless | | | | | | |
|(EPS)((a)) | | | | | | |
+-----------------+--------+-------------+--------+---------+--------+---------+
|Others ((b)(c)) | 15| (129)| 14| (654)| 9| (151)|
+-----------------+--------+-------------+--------+---------+--------+---------+
|TOTAL | 2,009| (281)| 2,162| (730)| 2,017| (352)|
+-----------------+--------+-------------+--------+---------+--------+---------+
( (a)) Embedded Processing Solutions includes the Wireless product line which
includes a portion of sales and operating results of ST-Ericsson as consolidated
in the Company's revenues and operating results, as well as other items
affecting operating results related to the wireless business.
((b)) Net revenues of "Others" includes revenues from sales of Subsystems,
assembly services and other revenues.
((c)) Operating income (loss) of "Others" includes items such as unused capacity
charges, impairment, restructuring charges and other related closure costs,
phase out and start-up costs, NXP arbitration award and other unallocated
expenses such as: strategic or special research and development programs,
certain corporate-level operating expenses, patent claims and litigations, and
other costs that are not allocated to product groups, as well as operating
earnings of the Subsystems and Other Products Group. "Others" includes $24
million, $66 million and $71 million of unused capacity charges in the first
quarter of 2013 and fourth and first quarters of 2012, respectively; and $101
million, $588 million and $18 million of impairment, restructuring charges and
other related closure costs in the first quarter of 2013 and fourth and first
quarters of 2012, respectively.
Sense & Power and Automotive Products (SPA) first quarter net revenues decreased
4.8% sequentially, mainly due to, as expected, lower sales of MEMS products
partially offset by growth in Automotive and Industrial & Power Discrete
products. SPA revenues increased 1.8% compared to the year-ago quarter driven by
growth in MEMS and Industrial & Power Discrete products partially offset by a
decrease in Automotive. SPA operating margin was 5.1% in the 2013 first quarter
compared to 9.0% and 8.4% in the prior and year-ago quarter, respectively.
Embedded Processing Solutions (EPS) first quarter net revenues decreased 10.0%
sequentially due to a significant decrease in Wireless and Imaging revenues
related to the usual seasonal effect partially offset by growth of
Microcontrollers and Digital Convergence products. EPS segment revenues
decreased 3.8% compared to the year-ago quarter due to a decrease in Wireless
and Imaging related to certain wireless customers partially offset by growth in
Microcontrollers and Digital Convergence products. EPS segment operating margin
was negative 24.2% in the 2013 first quarter, compared to negative 18.9% and
negative 32.6% in the prior and year-ago quarter, respectively.
Cash Flow and Balance Sheet Highlights
Free cash flow was negative $65 million in the first quarter, principally
related to ST-Ericsson, compared to positive $145 million in the prior quarter.*
Capital expenditure payments, net of proceeds from sales, were $111 million
during the first quarter of 2013 compared to $78 million in the prior quarter.
Inventory decreased by $47 million to $1.31 billion at quarter end. Inventory in
the first quarter of 2013 was at 4.2 turns or 86 days, compared to the year-ago
period of 3.8 turns or 95 days.
In the first quarter, the Company paid $455 million to redeem the entire
residual outstanding 2013 Senior bonds at maturity and paid to shareholders
quarterly cash dividends of $89 million.
-----
(*)Free cash flow is a non-U.S. GAAP measure. For additional information and
reconciliation to U.S. GAAP, please refer to Attachment A.
ST continued to maintain a strong net financial position* with a net cash
position of $1.10 billion, as adjusted taking into account the $83 million of
ST-Ericsson's debt to our joint venture partner, at March 30, 2013 compared to
$1.19 billion at December 31, 2012. ST's financial resources equaled $1.91
billion and total debt was $0.90 billion at March 30, 2013.* During the first
quarter 2013, ST signed a new Euro 350 million loan, multi-currency agreement
with the European Investment Bank which was undrawn as at March 30, 2013.
Total equity, including non-controlling interest, was $5.95 billion at quarter
end.
Second Quarter 2013 Business Outlook
Mr. Bozotti stated, "While there is still a high level of market volatility and
macro-economic uncertainties, bookings excluding Wireless, have continued to
improve during the course of the first quarter. We are encouraged by this trend
although we believe it is too early to assume this improvement is sustainable.
In any case, we believe we are well positioned to outperform the market based on
our new products within our five key growth drivers.
"Turning to the second quarter, in terms of revenue we expect broad-based growth
in our businesses, excluding Wireless, driven by Imaging, Microcontrollers,
Analog & MEMS products and leading again to better than seasonal revenue
performance, with a sequential increase of about 7% at the midpoint. Including
Wireless, we expect an overall revenue increase of about 3% at the midpoint of
our guidance.
"We again expect significant reductions in operating expenses to be visible in
the second quarter as we make continued progress towards the completion of the
exit of the ST-Ericsson joint venture. In addition, we anticipate gross margin
to benefit from improved fab loading and manufacturing performance during the
second quarter."
The Company expects second quarter 2013 revenues to grow sequentially in the
range of about +3%, plus or minus 3.5 percentage points. Gross margin in the
second quarter is expected to be about 32.7%, plus or minus 2.0 percentage
points, and assumes an improvement from the first quarter amount from fab
loading and manufacturing performance.
This outlook is based on an assumed effective currency exchange rate of
approximately $1.29 = ?1.00 for the 2013 second quarter and includes the impact
of existing hedging contracts. The second quarter will close on June 29, 2013.
-----
(*)Net financial position is a non-U.S. GAAP measure. For additional
information and reconciliation to U.S. GAAP, please refer to Attachment A.
Key Summary Financial Information
+---------------+-------+-------+-------+-------+-------+-------+
| Revenues | Q112 | Q212 | Q312 | Q412 | FY12 | Q113 |
| (Million US$) | | | | | | |
+---------------+-------+-------+-------+-------+-------+-------+
| AMS | 301 | 297 | 324 | 396 | 1,320 | 313 |
+---------------+-------+-------+-------+-------+-------+-------+
| APG | 391 | 404 | 391 | 368 | 1,554 | 385 |
+---------------+-------+-------+-------+-------+-------+-------+
| IPD | 415 | 455 | 459 | 420 | 1,747 | 429 |
+---------------+-------+-------+-------+-------+-------+-------+
| Other SPA | - | - | 1 | - | 1 | - |
+---------------+-------+-------+-------+-------+-------+-------+
| SPA | 1,107 | 1,156 | 1,175 | 1,184 | 4,622 | 1,127 |
+---------------+-------+-------+-------+-------+-------+-------+
| DCG | 208 | 229 | 234 | 217 | 888 | 225 |
+---------------+-------+-------+-------+-------+-------+-------+
| IBP | 128 | 124 | 85 | 100 | 437 | 83 |
+---------------+-------+-------+-------+-------+-------+-------+
| MMS | 275 | 284 | 296 | 293 | 1,147 | 299 |
+---------------+-------+-------+-------+-------+-------+-------+
| WPS | 290 | 344 | 359 | 351 | 1,345 | 260 |
+---------------+-------+-------+-------+-------+-------+-------+
| Other EPS | - | - | 6 | 3 | 9 | - |
+---------------+-------+-------+-------+-------+-------+-------+
| EPS | 901 | 981 | 980 | 964 | 3,826 | 867 |
+---------------+-------+-------+-------+-------+-------+-------+
| Others | 9 | 11 | 11 | 14 | 45 | 15 |
+---------------+-------+-------+-------+-------+-------+-------+
| Total ST | 2,017 | 2,148 | 2,166 | 2,162 | 8,493 | 2,009 |
+---------------+-------+-------+-------+-------+-------+-------+
+----------------+-------+-------+-------+-------+---------+-------+
| Operating | | | | | | |
| Income (Loss): | Q112 | Q212 | Q312 | Q412 | FY12 | Q113 |
| (Million US$) | | | | | | |
+----------------+-------+-------+-------+-------+---------+-------+
| SPA | 93 | 97 | 114 | 106 | 409 | 58 |
+----------------+-------+-------+-------+-------+---------+-------+
| EPS | (294) | (233) | (175) | (182) | (883) | (210) |
+----------------+-------+-------+-------+-------+---------+-------+
| Others | (151) | (71) | (731) | (654) | (1,607) | (129) |
+----------------+-------+-------+-------+-------+---------+-------+
| Total ST | (352) | (207) | (792) | (730) | (2,081) | (281) |
+----------------+-------+-------+-------+-------+---------+-------+
Recent Corporate Developments
* On March 11, ST re-asserted its MEMS technology and patent leadership with
the filing, by its U.S. subsidiary, STMicroelectronics, Inc., of a complaint
with the United States International Trade Commission (ITC) requesting an
investigation into the alleged infringement of five ST patents covering all
of InvenSense, Inc.'s MEMS device offerings, as well as products from two of
InvenSense's customers, Black and Decker, Inc. and Roku, Inc. As part of the
filing, ST requested that the ITC issue an order excluding InvenSense's
infringing gyroscopes and accelerometers, as well its customers' products
that include those InvenSense devices, from importation into the United
States.
* On March 18, STMicroelectronics and Ericsson announced an agreement on the
way forward for their joint venture, ST-Ericsson, that maximizes their
respective future prospects and growth plans.
The main steps agreed upon to split up the JV are the following:
* Ericsson is taking on the design, development and sales of the LTE
multimode thin modem products, including 2G, 3G and 4G multimode;
* ST is taking on the existing ST-Ericsson products, other than LTE
multimode thin modems, and related business as well as certain assembly
and test facilities; and
* The parent companies are starting the close down of the remaining parts
of ST-Ericsson.
The companies have announced that the formal transfer of the relevant parts of
ST-Ericsson to the parent companies is expected to be completed during the third
quarter of 2013, subject to regulatory approvals. They have proposed that
Ericsson will assume approximately 1,800 employees and contractors, with the
largest concentrations in Sweden, Germany, India and China and also proposed
that ST will assume approximately 950 employees, primarily in France and in
Italy, to support ongoing business and new product development within ST.
The companies also announced that Carlo Ferro was appointed President and Chief
Executive Officer of ST-Ericsson, effective April 1, succeeding Didier Lamouche
who left to pursue outside opportunities. Ferro is leading the work in securing
both business continuity of ST-Ericsson and effective completion of the
transition phase.
* On March 26, ST signed a new Euro 350 million loan agreement with the
European Investment Bank (EIB). The facility, which has not yet been drawn
by ST, is also available in the US$ equivalent amount and has an option for
disbursement until September 2014 with final maturity eight years after
disbursement. This new facility supports ST's activities in R&D and
innovation related to the design and realization of the next generation of
technologies and electronic devices. Furthermore, on March 17, 2013, ST
repaid with available cash the residual Euro 350 million floating-rate
senior bonds outstanding with a principal amount of Euro 500 million at
issuance.
Q1 2013 - Product and Technology Highlights
During the quarter, ST made strong progress with important new-product
introductions and significant design wins.
Sense & Power and Automotive (SPA)
Analog & MEMS (AMS)
* Continued to collect multiple design wins for the low-power Spirit1 radio to
transmit sensor data in industrial applications.
* Started production of a 6-axis MEMS device, with 100% market share in the
flagship model of an Asian Smartphone manufacturer.
* Started production of an Accelerometer for Airbag.
* Began production of the Active Noise Cancelation chip developed with
SoundChip for an important Asian gaming manufacturer.
Industrial and Power Discrete (IPD)
* Secured wins with a major European consumer manufacturer for a high-voltage
gate driver for washing-machine applications and for high-voltage converters
to be used in coffee machines and washing machines for several major
European manufacturers.
* Achieved a major win with a top-tier Chinese networking manufacturer for
resonant controllers for a telecom power application.
* Earned design wins for electronic fuses with a major HDD manufacturer for a
high-volume platform and for advanced point-of-load controllers with an
important US computer manufacturer.
* Ramping a new LED lighting platform for a major US LED manufacturer, a new
printer device in the latest Bipolar-CMOS-DMOS smart-power (BCD8sp)
technology for a major US manufacturer and the newest AMOLED driver for a
market-leading Korean manufacturer.
* Quickly scored design wins for the RF-antenna tuner solution presented
during 2013 Mobile World Congress tradeshow with major mobile phone, tablet
and platform makers.
* Registered multiple wins for silicon-carbide power diodes in high-power
server applications.
* Landed multiple wins for intelligent power modules from home-appliance
leaders in the US and Europe.
* Earned big design wins for very-high-voltage super-junction MOSFETs with a
European lighting leader and for high-voltage devices in Japan and Korea for
Switched-Mode Power Supply, Gaming and LED applications.
* Captured significant design wins for high-voltage IGBTs (Insulated-Gate
Bipolar Transistors) in Induction Heating, Inverter Drives, and Sewing
Machines.
* Started production of a new MOSFET series for the low-power LED market in
China.
* Ramped the STripFET VII DeepGATE technology program for a Server & Adapter
market leader.
Automotive (APG)
* Reinforced strong position in braking applications with the awarding of a
chip for a next-generation anti-lock braking system with one of the major
global Tier 1s.
* Launched production of a Teseo II-based active GNSS antenna for navigation
systems for a Japanese OEM and began production of an advanced telematics
systems using the multi-constellation positioning capabilities of Teseo II
for a major European car maker.
* Cemented standing as the market leader with the landing of an award for an
integrated parking-brake solution with the worldwide Tier 1 leader in
braking.
* Earned an award for a full chipset for a gasoline direct-injection engine
controller with an important Chinese OEM and landed a win, the first
resuting from a collaboration with a strategic Asian customer, for an
injector driver for a gasoline direct-injection engine controller.
* With ST's high-quality power-amplifier ICs having contributed to Alpine's
Audio/Video/Navigation systems winning the Auto Sound Grand Prix, ST is now
ramping production of the new power-amplifier ICs for the newest model at
Alpine and other major Japanese car-audio makers.
* Captured awards for high-content car body-control modules from several
global Tier 1s.
Embedded Processing Solutions (EPS)
Microcontrollers, Memory and Security (MMS)
* Increased STM32 design-in momentum with, among others, an automotive voice-
recognition system at a Japanese OEM, and a display card at a world leader
in digital security.
* Began shipping high-end STM32 microcontrollers to a leading supplier of
optical touch panels and touch-screen components.
* Earned strong adoption of the ST31, a secure 32-bit MCU, in contact and
contactless banking applications.
* Ramped production of an embedded Secure Element for a high-end Smartphone at
a key OEM.
* Landed a win for the 64k dual-interface EEPROM in a home appliance with a
major global OEM.
* Captured design wins for Serial EEPROM for storing NFC parameters with
several major Chinese cellular-phone manufacturers.
* Announced NEC CASIO Mobile Communications is using ST NFC controller IC in
the exciting G'zOne CA-201L smartphone.
Digital Convergence (DCG)
* Earned several design wins for ASICs to be manufactured in 28nm FD-SOI
technology.
* Captured a significant design win for Orly in a home-gateway application for
a large European manufacturer.
* Won designs for high-end multimedia monitor controllers and DisplayPort
transmitters for a 4kx2k project and for 24" daisy-chain monitors for a
large global computer manufacturer.
* Started shipments of Advanced HDMI to DisplayPort converters to a large
Taiwanese manufacturer.
* ST's Orly system-on-chip (SoC) has been selected by Sumitomo Electric
Networks, Inc., a major Japanese manufacturer for the advanced generation of
smart IPTV set-top boxes from NTT Plala Inc., a leading service provider.
Imaging, Bi-CMOS ASIC and Silicon Photonics (IBP)
* Achieved volume deliveries to camera integrators of innovative image sensors
using ST's proprietary backside-illumination (BSI) technology and to a
leading smart-phone manufacturer of the matching high-performance digital-
imaging-processing chip to support the unique imaging capabilities of some
of their handsets.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information,
including operating income (loss) before impairment, restructuring and one-time
items, operating margin before impairment, restructuring and one-time items,
operating margin before impairment, restructuring and one-time items
attributable to ST, adjusted net earnings, adjusted net earnings per share, free
cash flow, net financial position and net financial position, adjusted to
account for 50% investment in ST-Ericsson.
Readers are cautioned that these measures are unaudited and not prepared in
accordance with U.S. GAAP and should not be considered as a substitute for U.S.
GAAP financial measures. In addition, such non-U.S. GAAP financial measures may
not be comparable to similarly titled information by other companies.
See Attachment A of this press release for a reconciliation of the Company's
non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial
measures. To compensate for these limitations, the supplemental non-U.S. GAAP
financial information should not be read in isolation, but only in conjunction
with the Company's consolidated financial statements prepared in accordance with
U.S. GAAP.
Forward-looking information
Some of the statements contained in this release that are not historical facts
are statements of future expectations and other forward-looking statements
(within the meaning of Section 27A of the Securities Act of 1933 or Section 21E
of the Securities Exchange Act of 1934, each as amended) that are based on
management's current views and assumptions, and are conditioned upon and also
involve known and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those anticipated by
such statements, due to, among other factors:
* uncertain macro-economic and industry trends;
* customer demand and acceptance for the products which we design, manufacture
and sell;
* unanticipated events or circumstances which may delay implementation as
planned of the recently announced split up of ST-Ericsson as agreed with
Ericsson;
* our ability to execute the planned reductions in our net operating
expenses;
* the loading and the manufacturing performances of our production
facilities;
* variations in the foreign exchange markets and, more particularly, in the
rate of the U.S. dollar exchange rate as compared to the Euro and the other
major currencies we use for our operations;
* the impact of intellectual property ("IP") claims by our competitors or
other third parties, and our ability to obtain required licenses on
reasonable terms and conditions;
* restructuring charges and associated cost savings that differ in amount or
timing from our estimates;
* changes in our overall tax position as a result of changes in tax laws, the
outcome of tax audits or changes in international tax treaties which may
impact our results of operations as well as our ability to accurately
estimate tax credits, benefits, deductions and provisions and to realize
deferred tax assets;
* the outcome of ongoing litigation as well as the impact of any new
litigation to which we may become a defendant;
* natural events such as severe weather, earthquakes, tsunami, volcano
eruptions or other acts of nature, health risks and epidemics in locations
where we, our customers or our suppliers operate;
* changes in economic, social, political or infrastructure conditions in the
locations where we, our customers or our suppliers operate including as a
result of macro-economic or regional events, military conflict, social
unrest or terrorist activities;
* availability and costs of raw materials, utilities, third-party
manufacturing services, or other supplies required by our operations;
Such forward-looking statements are subject to various risks and uncertainties,
which may cause actual results and performance of our business to differ
materially and adversely from the forward-looking statements. Certain forward-
looking statements can be identified by the use of forward looking terminology,
such as "believes," "expects," "may," "are expected to," "should," "would be,"
"seeks" or "anticipates" or similar expressions or the negative thereof or other
variations thereof or comparable terminology, or by discussions of strategy,
plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in
"Item 3. Key Information - Risk Factors" included in our Annual Report on Form
20-F for the year ended December 31, 2012, as filed with the SEC on March
4, 2013. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those described in this release as anticipated, believed or
expected. We do not intend, and do not assume any obligation, to update any
industry information or forward-looking statements set forth in this release to
reflect subsequent events or circumstances.
STMicroelectronics Conference Call and Webcast Information
On April 23, 2013, the management of STMicroelectronics will conduct a
conference call to discuss the Company's operating performance for the first
quarter of 2013.
The conference call will be held at 9:00 a.m. U.S. Eastern Time / 3:00 p.m. CET.
The conference call will be available live via the Internet by accessing
http://investors.st.com. Those accessing the webcast should go to the Web site
at least 15 minutes prior to the call, in order to register, download, and
install any necessary audio software. The webcast will be available until May
3, 2013.
About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the
spectrum of sense and power and automotive products and embedded processing
solutions. From energy management and savings to trust and data security, from
healthcare and wellness to smart consumer devices, in the home, car and office,
at work and at play, ST is found everywhere microelectronics make a positive and
innovative contribution to people's life. By getting more from technology to get
more from life, ST stands for life.augmented.
In 2012, the Company's net revenues were $8.49 billion. Further information on
ST can be found at www.st.com.
(tables attached)
For further information, please contact:
INVESTOR RELATIONS:
Tait Sorensen
Group VP, Investor Relations
STMicroelectronics
Tel: +1 602 485 2064
tait.sorensen(at)st.com
MEDIA RELATIONS:
Nelly Dimey
Director, Corporate Media and Public Relations
STMicroelectronics
Tel: +33 158 077 785
nelly.dimey(at)st.com
STMicroelectronics N.V.
Consolidated Statements of Income
(in millions of U.S. dollars, except per share data
($))
+-----------------------+
| |
| |
| Three Months Ended |
+-----------------------+
(Unaudited) (Unaudited)
-------------------------
March 30, March 31,
2013 2012
Net sales 2.003 2.010
Other revenues 6 7
-------------------------
NET REVENUES 2.009 2.017
Cost of sales (1.381) (1.421)
-------------------------
GROSS PROFIT 628 596
Selling, general and administrative (279) (310)
Research and development (533) (633)
Other income and expenses, net 4 13
Impairment, restructuring charges and other related
closure costs (101) (18)
-------------------------
Total Operating Expenses (909) (948)
-------------------------
OPERATING LOSS (281) (352)
Interest expense, net (7) (13)
Loss on equity-method investments (13) (7)
Gain on financial instruments, net - 3
LOSS BEFORE INCOME TAXES (301) (369)
AND NONCONTROLLING INTEREST
Income tax benefit 4 34
-------------------------
NET LOSS (297) (335)
Net loss (income) attributable to noncontrolling
interest 126 159
-------------------------
NET LOSS ATTRIBUTABLE TO PARENT COMPANY (171) (176)
-------------------------
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS (0,19) (0,20)
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS (0,19) (0,20)
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
DILUTED EARNINGS PER SHARE 888,0 885,0
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at March 30, December 31, March 31,
In millions of U.S. dollars 2013 2012 2012
-------------------------------------
(Unaudited) Audited (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents 1.718 2.250 2.059
Restricted cash - - 3
Short-term deposits 1 1 -
Marketable securities 187 238 154
Trade accounts receivable, net 1.025 1.005 971
Inventories 1.306 1.353 1.508
Deferred tax assets 141 137 170
Assets held for sale 37 - 22
Other current assets 501 518 589
-------------------------------------
Total current assets 4.916 5.502 5.476
Goodwill 140 141 1.064
Other intangible assets, net 208 213 608
Property, plant and equipment, net 3.275 3.481 3.826
Non-current deferred tax assets 439 414 371
Restricted cash 4 4 4
Long-term investments 110 119 116
Other non-current assets 540 560 420
-------------------------------------
4.716 4.932 6.409
Total assets 9.632 10.434 11.885
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt 250 630 1.076
Trade accounts payable 862 797 781
Other payables and accrued liabilities 997 942 987
Dividends payable to stockholders - 89 -
Deferred tax liabilities 11 11 15
Accrued income tax 77 86 94
-------------------------------------
Total current liabilities 2.197 2.555 2.953
Long-term debt 647 671 366
Post-retirement benefit obligations 474 477 425
Long-term deferred tax liabilities 15 14 22
Other long-term liabilities 351 353 275
-------------------------------------
1.487 1.515 1.088
Total liabilities 3.684 4.070 4.041
Commitment and contingencies
Equity
Parent company stockholders' equity
Common stock (preferred stock:
540,000,000 shares
authorized, not issued; common stock:
Euro 1.04 nominal
value, 1,200,000,000 shares authorized,
910,559,805
shares issued, 887,967,172 shares
outstanding) 1.156 1.156 1.156
Capital surplus 2.559 2.555 2.550
Retained earnings 1.788 1.959 3.328
Accumulated other comprehensive income 673 794 837
Treasury stock -239 -239 -271
-------------------------------------
Total parent company stockholders' equity 5.937 6.225 7.600
Noncontrolling interest 11 139 244
-------------------------------------
Total equity 5.948 6.364 7.844
-------------------------------------
Total liabilities and equity 9.632 10.434 11.885
-------------------------------------
STMicroelectronics N.V.
+----------------------------------------------------------------------------+
| SELECTED CASH FLOW DATA |
+----------------------------------------------------------------------------+
+----------------------------------------------+---------+---------+---------+
| Cash Flow Data (in US$ millions) | Q1 2013 | Q4 2012 | Q1 2012 |
+----------------------------------------------+---------+---------+---------+
+----------------------------------------------+---------+---------+---------+
| Net Cash from operating activities | 66 | 252 | 250 |
+----------------------------------------------+---------+---------+---------+
| Net Cash from (used in) investing activities | (81) | (107) | 113 |
+----------------------------------------------+---------+---------+---------+
| Net Cash from (used in) financing activities | (481) | 406 | (225) |
+----------------------------------------------+---------+---------+---------+
| Net Cash increase (decrease) | (532) | 564 | 147 |
+----------------------------------------------+---------+---------+---------+
+----------------------------------------------+---------+---------+---------+
| Selected Cash Flow Data (in US$ millions) | Q1 2013 | Q4 2012 | Q1 2012 |
+----------------------------------------------+---------+---------+---------+
+----------------------------------------------+---------+---------+---------+
| Depreciation & amortization | 237 | 272 | 288 |
+----------------------------------------------+---------+---------+---------+
| Net payment for Capital expenditures | (111) | (78) | (125) |
+----------------------------------------------+---------+---------+---------+
| Dividends paid to stockholders | (89) | (89) | (88) |
+----------------------------------------------+---------+---------+---------+
| Change in inventories, net | 30 | 143 | 46 |
+----------------------------------------------+---------+---------+---------+
(Attachment A)
STMicroelectronics
Supplemental Non-U.S. GAAP Financial Information
U. S. GAAP - Non-U.S. GAAP Reconciliation
In Million US$ Except Per Share Data
The supplemental non-U.S. GAAP information presented in this press release is
unaudited and subject to inherent limitations. Such non-U.S. GAAP information is
not based on any comprehensive set of accounting rules or principles and should
not be considered as a substitute for U.S. GAAP measurements. Also, our
supplemental non-U.S. GAAP financial information may not be comparable to
similarly titled non-U.S. GAAP measures used by other companies. Further,
specific limitations for individual non-U.S. GAAP measures, and the reasons for
presenting non-U.S. GAAP financial information, are set forth in the paragraphs
below. To compensate for these limitations, the supplemental non-U.S. GAAP
financial information should not be read in isolation, but only in conjunction
with our consolidated financial statements prepared in accordance with U.S.
GAAP.
Operating income (loss) before, impairment, restructuring and one-time items is
used by management to help enhance an understanding of ongoing operations and to
communicate the impact of the excluded items, such as impairment, restructuring
charges and other related closure costs. Adjusted net earnings and earnings per
share (EPS) are used by management to help enhance an understanding of ongoing
operations and to communicate the impact of the excluded items like impairment,
restructuring charges and other related closure costs attributable to ST and
other one-time items, net of the relevant tax impact.
Operating income (loss) before impairment, restructuring and one-time items
attributable to ST is calculated as operating income (loss) before impairment,
restructuring and one-time items excluding 50% of ST-Ericsson operating income
(loss) before impairment, restructuring and one-time items as consolidated by
ST. Operating margin before impairment, restructuring and one-time items
attributable to ST is calculated as operating income (loss) before restructuring
attributable to ST divided by reported revenues excluding 50% of ST-Ericsson
revenues as consolidated by ST.
The Company believes that these non-GAAP financial measures provide useful
information for investors and management because they measure the Company's
capacity to generate profits from its business operations, excluding the effect
of acquisitions and expenses related to the rationalizing of its activities and
sites that it does not consider to be part of its on-going operating results,
thereby offering, when read in conjunction with the Company's GAAP financials,
(i) the ability to make more meaningful period-to-period comparisons of the
Company's on-going operating results, (ii) the ability to better identify trends
in the Company's business and perform related trend analysis, and (iii) an
easier way to compare the Company's results of operations against investor and
analyst financial models and valuations, which usually exclude these items.
+-------------------+------------+--------------+------------+-----------------+
|Q1 2013 | | Operating |Net Earnings| |
|(US$ millions and|Gross Profit|Income (loss) | |Corresponding EPS|
|cents per share) | | | | |
+-------------------+------------+--------------+------------+-----------------+
|U.S. GAAP | 628 | (281) | (171) | (0.19) |
+-------------------+------------+--------------+------------+-----------------+
|Impairment & | | 101 | 58 | |
|Restructuring | | | | |
+-------------------+------------+--------------+------------+ |
|Estimated Income | | | (3) | |
|Tax Effect | | | | |
+-------------------+------------+--------------+------------+-----------------+
|Non-U.S GAAP | 628 | (180) | (116) | (0.13) |
+-------------------+------------+--------------+------------+-----------------+
+-------------------+------------+--------------+------------+-----------------+
|Q4 2012 | | Operating |Net Earnings| |
|(US$ millions and|Gross Profit|Income (loss) | |Corresponding EPS|
|cents per share) | | | | |
+-------------------+------------+--------------+------------+-----------------+
|U.S. GAAP | 697 | (730) | (428) | (0.48) |
+-------------------+------------+--------------+------------+-----------------+
|Impairment & | | 588 | 307 | |
|Restructuring | | | | |
+-------------------+------------+--------------+------------+ |
|Estimated Income | | | (1) | |
|Tax Effect | | | | |
+-------------------+------------+--------------+------------+-----------------+
|Income Tax at ST | | | 26 | |
|Ericsson | | | | |
+-------------------+------------+--------------+------------+-----------------+
|Non-U.S GAAP | 697 | (142) | (96) | (0.11) |
+-------------------+------------+--------------+------------+-----------------+
+-------------------+-----------+--------------+------------+------------------+
|Q1 2012 | Gross | Operating |Net Earnings|Corresponding EPS |
|(US$ millions and| Profit |Income (loss) | | (basic) |
|cents per share) | | | | |
+-------------------+-----------+--------------+------------+------------------+
|U.S. GAAP | 596 | (352) | (176) | (0.20) |
+-------------------+-----------+--------------+------------+------------------+
|Impairment & | | 18 | 13 | |
|Restructuring | | | | |
+-------------------+-----------+--------------+------------+ |
|NXP Arbitration | 53 | 54 | 56 | |
|Award | | | | |
+-------------------+-----------+--------------+------------+ |
|Estimated Income | | | (13) | |
|Tax Effect | | | | |
+-------------------+-----------+--------------+------------+------------------+
|Non-U.S GAAP | 649 | (280) | (120) | (0.14) |
+-------------------+-----------+--------------+------------+------------------+
(continued)
(Attachment A - continued)
Net financial position: resources (debt), represents the balance between our
total financial resources and our total financial debt. Our total financial
resources include cash and cash equivalents, marketable securities, short-term
deposits and restricted cash, and our total financial debt includes short-term
borrowings, current portion of long-term debt and long-term debt, all as
reported in our consolidated balance sheet. We believe our net financial
position provides useful information for investors because it gives evidence of
our global position either in terms of net indebtedness or net cash position by
measuring our capital resources based on cash, cash equivalents and marketable
securities and the total level of our financial indebtedness. Net financial
position is not a U.S. GAAP measure.
+------------------------------+--------------+-----------------+--------------+
|Net Financial Position (in US$|March 30, 2013|December 31, 2012|March 31, 2012|
|millions) | | | |
+------------------------------+--------------+-----------------+--------------+
|Cash and cash equivalents | 1,718 | 2,250 | 2,059 |
+------------------------------+--------------+-----------------+--------------+
|Marketable securities | 187 | 238 | 154 |
+------------------------------+--------------+-----------------+--------------+
|Short-term deposits | 1 | 1 | - |
+------------------------------+--------------+-----------------+--------------+
|Restricted cash | - | - | 3 |
+------------------------------+--------------+-----------------+--------------+
|Non-current restricted cash | 4 | 4 | 4 |
+------------------------------+--------------+-----------------+--------------+
|Total financial resources | 1,910 | 2,493 | 2,220 |
+------------------------------+--------------+-----------------+--------------+
|Short-term borrowings and | | | |
|current portion of | (250) | (630) | (1,076) |
|long-term debt | | | |
+------------------------------+--------------+-----------------+--------------+
|Long-term debt | (647) | (671) | (366) |
+------------------------------+--------------+-----------------+--------------+
|Total financial debt | (897) | (1,301) | (1,442) |
+------------------------------+--------------+-----------------+--------------+
|Net financial position | 1,013 | 1,192 | 778 |
+------------------------------+--------------+-----------------+--------------+
| | | | |
+------------------------------+--------------+-----------------+--------------+
|Net financial position, | | | |
|adjusted to account for 50% | 1,096 | 1,192 | 1,267 |
|investment in ST-Ericsson | | | |
+------------------------------+--------------+-----------------+--------------+
Free cash flow is defined as net cash from operating activities minus net cash
from (used in) investing activities, excluding proceeds from the sale of
marketable securities. We believe free cash flow provides useful information for
investors and management because it measures our capacity to generate cash from
our operating and investing activities to sustain our operating activities. Free
cash flow is not a U.S. GAAP measure and does not represent total cash flow
since it does not include the cash flows generated by or used in financing
activities. In addition, our definition of free cash flow may differ from
definitions used by other companies.
+----------------------------------------------+---------+---------+---------+
| Free cash flow (in US$ millions) | Q1 2013 | Q4 2012 | Q1 2012 |
+----------------------------------------------+---------+---------+-------
Unternehmensinformation / Kurzprofil:
Datum: 22.04.2013 - 22:47 Uhr
Sprache: Deutsch
News-ID 251578
Anzahl Zeichen: 65604
contact information:
Town:
Geneva
Kategorie:
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