STMicroelectronics Reports 2013 Third Quarter and Nine Month Financial Results
(Thomson Reuters ONE) -
* Third quarter net revenues $2.01 billion; excluding Wireless product line up
3.9% year-over-year and 0.5% sequentially
* Third quarter operating income was a profit of $54 million before impairment
and restructuring charges
* Transaction to split up ST-Ericsson completed
Geneva, October 22, 2013 - STMicroelectronics (NYSE: STM), a global
semiconductor leader serving customers across the spectrum of electronics
applications, reported financial results for the third quarter and nine months
ending September 28, 2013.
Third quarter net revenues totaled $2,013 million and gross margin was 32.4%.
ST's third quarter net loss was $142 million as the Company took a charge of
$120 million, mostly non-cash, in connection with its annual third quarter
impairment review and already announced restructuring initiatives.
"Our financial performance during the third quarter was mixed. On one hand, we
saw overall year-over-year revenue improvement of 3.9 percent across our
business outside of the Wireless product line. We believe this exceeds the year-
over-year revenue performance of our served market. On the other hand, this
growth was milder than expected due to a muted order pattern during the quarter
driven by softness in high-end smartphones in Asia and the mass market in Asia,
including the cable set-top box market in certain countries," said ST President
and CEO Carlo Bozotti.
"However, we did see sequential growth in Imaging, Microcontrollers, MEMS, and
Automotive. In particular, Microcontrollers posted record quarterly billings led
by our general-purpose products.
"During the third quarter the Company posted an operating profit before
impairment and restructuring charges. ST's operating income excluding these
charges was $54 million, improving by $118 million on a sequential basis. This
is due in large part to the sale of ST-Ericsson's Global Navigation Satellite
System business along with lower operating expenses.
"In August, we completed the transaction to split up ST-Ericsson in a timely
manner. With this we are strengthening our product development in key areas
where we see important customer expansion opportunities including embedded
processing, RF, analog and power."
Summary Financial Highlights
+------------------------------------------------------+-------+-------+-------+
|U.S. GAAP |Q3 2013|Q2 2013|Q3 2012|
|(Million US$) | | | |
+------------------------------------------------------+-------+-------+-------+
|Net Revenues ((a)) | 2,013 | 2,045 | 2,166 |
+------------------------------------------------------+-------+-------+-------+
|Gross Margin | 32.4% | 32.8% | 34.8% |
+------------------------------------------------------+-------+-------+-------+
|Operating Income (Loss), as reported | (66) | (107) | (792) |
+------------------------------------------------------+-------+-------+-------+
|Net Income (Loss) attributable to parent company ((b))| (142) | (152) | (478) |
+------------------------------------------------------+-------+-------+-------+
(a) Net revenues include sales recorded by ST-Ericsson as consolidated by ST
(b) Includes a loss on equity-method investment of $8 million, $89 million and
$4 million in the third and second quarters of 2013 and the third quarter of
2012, respectively
+------------------------------------------------------+-------+-------+-------+
|Non-U.S. GAAP* | | | |
|Before impairment and restructuring charges (Million |Q3 2013|Q2 2013|Q3 2012|
|US$) | | | |
+------------------------------------------------------+-------+-------+-------+
|Operating Income (Loss) | 54 | (64) | (79) |
+------------------------------------------------------+-------+-------+-------+
|Operating Margin | 2.7% |(3.1%) |(3.6%) |
+------------------------------------------------------+-------+-------+-------+
Completion of ST-Ericsson Transaction
On August 2, 2013, ST and Ericsson completed in a timely manner, with lower exit
costs than anticipated and with a minimized social impact, the transaction to
transfer the activities of ST-Ericsson to the respective parent companies. With
this, approximately 1,000 employees have joined ST. ST has taken on the existing
ST-Ericsson products, other than LTE multimode thin modems and the GNSS (Global
Navigation Satellite System) connectivity solution sold to a third party, and
related business as well as certain assembly and test facilities.
The wind down of the remaining parts of ST-Ericsson is ongoing and both parents
are assuming equal funding of the wind-down activities. As previously
communicated, ST and Ericsson have taken the expenses and the margin of their
respective activities since March 2, 2013.
Third Quarter Review
Effective as of September 1, 2013, ST has deconsolidated ST-Ericsson.
Overall, net revenues decreased 1.6% sequentially and 7.1% on a year-over-year
basis. On a sequential basis by region of origin, the Americas and Japan & Korea
posted growth of 4.0% and 3.7%, respectively, while EMEA and Greater China &
South Asia decreased by 3.6% and 9.0%, respectively.
ST's third quarter revenues, excluding the Wireless product line, increased
0.5% and 3.9% on a sequential and year-over-year basis, respectively. Sequential
and year-over-year growth was driven by Imaging, Microcontrollers, MEMS and
Automotive.
Third quarter gross profit was $652 million and gross margin was 32.4%. On a
sequential basis, gross margin declined 40 basis points, below the mid-point of
our third quarter guidance range primarily due to the higher than expected
weight of wireless legacy products, as well as negative currency effects.
R&D expenses were $423 million in the third quarter representing a sequential
decrease of $30 million or 7%, benefiting principally from the wind-down of the
ST-Ericsson joint venture and seasonality in Europe. R&D expenses declined by
27% compared to $578 million in the year-ago period.
-----
(*)Operating income (loss) before impairment and restructuring charges and
operating margin before impairment and restructuring charges 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.
SG&A expenses totaled $253 million in the third quarter decreasing 11% on a
sequential basis mainly due to seasonality and the ST-Ericsson wind down. SG&A
expenses decreased 8% compared to the year-ago amount of $274 million.
Other Income and Expenses registered income of $78 million in the third quarter
mainly benefiting from the sale of ST-Ericsson's Global Navigation Satellite
System business to a third party and other sale of assets for a $80 million
gain.
Impairment, restructuring and other related closure costs for the third quarter
were $120 million, and mainly included a non-cash charge of $56 million for the
impairment of Digital Convergence Group goodwill and intangible assets, a non-
cash charge of $33 million for the impairment of tangible assets and
restructuring costs of $29 million, compared to $43 million in the prior
quarter.
Income tax expense was $49 million in the third quarter including expense for
deferred tax assets valuation allowance and re-alignment of the year-to-date tax
expense to reflect updated projections for the full year.
In the third quarter of 2013, net earnings attributable to non-controlling
interest was an expense of $17 million, which mainly included the 50% owned by
Ericsson in the ST-Ericsson joint venture, as consolidated by ST. In the second
quarter of 2013, the corresponding amount was income of $21 million.
Third quarter net loss was $142 million or $(0.16) per share, compared to a net
loss of $(0.17) and $(0.54) per share in the prior and year-ago quarter,
respectively. On an adjusted basis, net of related taxes, ST reported a non-U.S.
GAAP net loss per share estimated at $(0.03) in the third quarter excluding
impairment and restructuring charges and one-time items compared to a net loss
estimated at $(0.06) and $(0.03) per share in the prior and year-ago quarter,
respectively.*
For the third 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
second quarter of 2013 and $1.29 to ?1.00 for the third quarter of 2012.
Net Revenues Summary
+-------------------------------------------------+-------+-------+-------+
|Net Revenues By Product Line and Segment |Q3 2013|Q2 2013|Q3 2012|
|(Million US$) | | | |
+-------------------------------------------------+-------+-------+-------+
|Analog & MEMS (AMS) |329 |327 |324 |
+-------------------------------------------------+-------+-------+-------+
|Automotive (APG) |418 |416 |391 |
+-------------------------------------------------+-------+-------+-------+
|Industrial & Power Discrete (IPD) |458 |466 |459 |
+-------------------------------------------------+-------+-------+-------+
|Other SP&A |- |- |1 |
+-------------------------------------------------+-------+-------+-------+
|Sense & Power and Automotive Products (SP&A) |1,205 |1,209 |1,175 |
+-------------------------------------------------+-------+-------+-------+
|Digital Convergence Group (DCG) |163 |189 |234 |
+-------------------------------------------------+-------+-------+-------+
|Imaging, BiCMOS, ASIC and Silicon Photonics (IBP)|144 |108 |85 |
+-------------------------------------------------+-------+-------+-------+
|Microcontrollers, Memory & Security (MMS) |360 |351 |296 |
+-------------------------------------------------+-------+-------+-------+
|Wireless (WPS) |135 |176 |359 |
+-------------------------------------------------+-------+-------+-------+
|Other EPS |- |- |6 |
+-------------------------------------------------+-------+-------+-------+
|Embedded Processing Solutions (EPS) |802 |824 |980 |
+-------------------------------------------------+-------+-------+-------+
|Others |6 |12 |11 |
+-------------------------------------------------+-------+-------+-------+
|Total |2,013 |2,045 |2,166 |
+-------------------------------------------------+-------+-------+-------+
-----
(*) Adjusted net earnings per share is a non-U.S. GAAP measure. For additional
information and reconciliation to U.S. GAAP, please refer to Attachment A.
+------------------------------------+---------+---------+---------+
| Net Revenues By Market Channel (%) | Q3 2013 | Q2 2013 | Q3 2012 |
+------------------------------------+---------+---------+---------+
| Total OEM | 75% | 74% | 76% |
+------------------------------------+---------+---------+---------+
| Distribution | 25% | 26% | 24% |
+------------------------------------+---------+---------+---------+
Revenues and Operating Results by ST Product Segment
+---------------------+--------+---------+--------+---------+--------+---------+
|Operating Segment |Q3 2013 |Q3 2013 |Q2 2013 |Q2 2013 |Q3 2012 |Q3 2012 |
|(Million US$) |Net |Operating|Net |Operating|Net |Operating|
| |Revenues|Income |Revenues|Income |Revenues|Income |
| | |(Loss) | |(Loss) | |(Loss) |
+---------------------+--------+---------+--------+---------+--------+---------+
|Sense & Power and | | | | | | |
|Automotive Products |1,205 |75 |1,209 |42 |1,175 |114 |
|(SP&A) | | | | | | |
+---------------------+--------+---------+--------+---------+--------+---------+
|Embedded Processing | | | | | | |
|Solutions including | | | | | | |
|Wireless product line|802 |(18) |824 |(106) |980 |(175) |
| | | | | | | |
|(EPS)((a)) | | | | | | |
+---------------------+--------+---------+--------+---------+--------+---------+
|Others ((b)(c)) |6 |(123) |12 |(43) |11 |(731) |
+---------------------+--------+---------+--------+---------+--------+---------+
|TOTAL |2,013 |(66) |2,045 |(107) |2,166 |(792) |
+---------------------+--------+---------+--------+---------+--------+---------+
((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, 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 $0 million, $2 million and $19 million of
unused capacity charges in the third and second quarters of 2013 and third
quarter of 2012, respectively; and $120 million, $43 million and $713 million of
impairment, restructuring charges and other related closure costs in the third
and second quarters of 2013 and third quarter of 2012, respectively.
Sense & Power and Automotive Products (SP&A) third quarter net revenues
decreased 0.4% sequentially, due to lower volumes in Industrial and Power
products partially offset by slight growth in AMS and APG. SP&A revenues
increased 2.6% compared to the year-ago quarter driven by APG. SP&A operating
margin was 6.2% in the 2013 third quarter compared to 3.5% and 9.7% in the prior
and year-ago quarter, respectively, with the sequential increase principally
driven by lower operating expenses.
Embedded Processing Solutions (EPS) third quarter net revenues decreased 2.7%
and 18.2% on a sequential and year-over-year basis, respectively, due to a
significant decrease in WPS sales and to a lesser extent, overall lower DCG
sales despite the strong growth in IBP and MMS. EPS segment operating margin
improved to negative 2.2% in the 2013 third quarter, from negative 12.8% and
negative 17.8% in the prior and year-ago quarter, respectively, mainly due to a
significant reduction in expenses and a $75 million gain from the sale of
businesses.
Cash Flow and Balance Sheet Highlights
Free cash flow* was negative, as anticipated, at $72 million in the third
quarter compared to negative $134 million in the prior quarter.
Capital expenditure payments, net of proceeds from sales, were $166 million
during the third quarter of 2013 compared to $121 million in the prior quarter.
-----
(*)Free cash flow is a non-U.S. GAAP measure. For additional information and
reconciliation to U.S. GAAP, please refer to Attachment A.
Inventory decreased by $20 million to $1.32 billion at quarter end. Inventory in
the third quarter of 2013 was at 4.1 turns or 88 days, flat compared to the
prior quarter.
In the third quarter, dividends paid to stockholders were $93 million.
As expected, ST's net financial position* was a net cash position of $739
million at September 28, 2013, compared to $954 million, adjusted by $145
million of ST-Ericsson's debt to our joint venture partner, at June 29, 2013.
ST's financial resources equaled $1.53 billion and total debt was $787 million
at September 28, 2013.
Total equity, including non-controlling interest, was $5.81 billion at quarter
end.
Nine Months 2013 Results
Net revenues decreased 4.2% to $6.07 billion from $6.33 billion in the year-ago
period mainly reflecting lower Wireless product line sales. Net revenues for the
first nine months of 2013, excluding the Wireless product line, increased 3.0%
to $5.50 billion.
Gross margin was 32.2% of net revenues, compared to 32.9% of net revenues for
the first nine months of 2012. Net loss, as reported, was $464 million in the
first nine months of 2013, or $(0.52) per share, compared to a net loss of $730
million, or $(0.82) per share in the first nine months of 2012. On an adjusted
basis, net of related taxes, ST reported a non-U.S. GAAP net loss per share
estimated at $(0.22) excluding impairment and restructuring charges and one-time
items in the first nine months of 2013, at the same level as the first nine
months of 2012.*
The effective average exchange rate for the Company was approximately $1.30 to
?1.00 for the first nine months of 2013, compared to $1.31 to ?1.00 for the
first nine months of 2012.
Nine Months Revenue and Operating Results by Product Segment
+------------------------+-----------+--------------+-----------+--------------+
|Operating Segment |Nine Months|Nine Months |Nine Months|Nine Months |
|(In Million US$) |2013 Net |2013 Operating|2012 Net |2012 Operating|
| |Revenues |Income (Loss) |Revenues |Income (Loss) |
+------------------------+-----------+--------------+-----------+--------------+
|Sense & Power and | | | | |
|Automotive Products |3,542 |174 |3,437 |303 |
| (SP&A) | | | | |
+------------------------+-----------+--------------+-----------+--------------+
|Embedded Processing | | | | |
|Solutions including |2,493 |(333) |2,863 |(701) |
|Wireless product line | | | | |
|(EPS) | | | | |
+------------------------+-----------+--------------+-----------+--------------+
| Others |32 |(294) |31 |(954) |
+------------------------+-----------+--------------+-----------+--------------+
| TOTAL |6,067 |(453) |6,331 |(1,352) |
+------------------------+-----------+--------------+-----------+--------------+
-----
* Net financial position and adjusted net earnings per share are non-US GAAP
measures. For additional information and reconciliation to U.S. GAAP, please
refer to Attachment A.
Fourth Quarter 2013 Business Outlook
Mr. Bozotti stated, "In the third quarter we began to experience a softening of
bookings with the exception of automotive. We believe this is a reflection of a
demand correction in the semiconductor industry. For the fourth quarter, we
anticipate a relatively flat sequential revenue performance. Nevertheless, we
anticipate seeing a return to positive cash flow generation as a result of the
wind-down of ST-Ericsson.
"We are confident in our ability to turn our significant business opportunities
into revenue. Our innovative products and technologies in MEMS and Sensors,
Smart Power, Automotive, Microcontrollers and Set-top box/Home Gateway, are
gaining greater traction with customers and will enable us to further expand our
customer base.
"We continue to aggressively pursue our objective to reach an operating margin
of about 10 percent. Our initiatives to reduce costs, such as achieving our net
operating expenses target, and improving our manufacturing, are on track.
However, the timing for us to achieve our operating margin target will depend
greatly on our level of revenues. Based on current visibility including market
conditions, reaching this operating margin target is now expected in mid-2015,
about six months later than originally expected."
The Company expects fourth quarter 2013 revenues to be about flat on a
sequential basis, plus or minus 3.5 percentage points. Gross margin in the
fourth quarter is expected to be about 33.0%, plus or minus 2.0 percentage
points.
Net operating expenses target in the range of $600 million to $650 million
average per quarter include SG&A and R&D expenses including R&D grants.
The resolution to distribute a cash dividend of US$0.10 per outstanding common
share for each of the fourth quarter of 2013 and first quarter of 2014 has been
submitted for shareholder adoption at the forthcoming Extraordinary General
Meeting of Shareholders which will be held in Schiphol, The Netherlands, on
December 2, 2013.
This outlook is based on an assumed effective currency exchange rate of
approximately $1.34 = ?1.00 for the 2013 fourth quarter and includes the impact
of existing hedging contracts. The fourth quarter will close on December
31, 2013.
Recent Corporate Developments
On July 22, ST announced the Nano2017 Research and Development program, a five-
year public-private strategic R&D program led by ST to further advance the
company's leadership in key embedded processing solutions and technologies.
The project draws support from a broad coalition of French national, regional
and local authorities as well as by the European community through the ENIAC
Joint Technology Initiative. Funding for the program is subject to approval by
the European Commission. Ultimately, Nano2017 strengthens ST's leadership in
such key technologies as FD-SOI (low-power, high-performance processing), next-
generation imaging (sensors and image signal processors), and next-generation
embedded non-volatile memories. These technologies are at the core of ST's
embedded processing solutions which include microcontrollers, imaging solutions,
digital consumer products, application processors and digital ASICs.
On July 24, the Company announced the publication of its 2012 Sustainability
Report. ST's sixteenth annual Sustainability Report contains comprehensive
details of ST's Sustainability strategy, policies and performance during 2012.
On August 5, ST and Ericsson announced the closing of the split up of ST-
Ericsson, less than 9 months after ST announced its new strategic plan,
including the decision to exit ST-Ericsson. ST has taken on some of the existing
ST-Ericsson products, other than LTE multimode thin modems and the GNSS (Global
Navigation Satellite System) connectivity solution that has been sold to a third
party, as well as certain assembly and test facilities. In total, approximately
1,000 employees joined STMicroelectronics.
At the same time, ST announced that Carlo Ferro returned to ST as Chief
Financial Officer, with extended responsibilities that includes leading legal,
central operation planning, procurement, IT and investor relations. He continues
as ST-Ericsson President & CEO through the joint venture wind-down.
On August 20, ST announced that it had posted its IFRS 2013 Semi Annual Accounts
for the six-month period ended June 29, 2013, on its website and has filed them
with the Netherlands Authority.
On September 20, ST announced that it would propose a cash dividend of US$0.10
for each of the fourth quarter of 2013 and first quarter of 2014, per
outstanding share of the Company's common stock. The amount of the proposed
dividend is stable with respect to the previous quarterly dividend distribution.
This was followed with an announcement, on September 27, of the resolutions to
be submitted for shareholder adoption at the forthcoming Extraordinary General
Meeting of Shareholders (the "EGM"), which will be held in Schiphol, The
Netherlands, on December 2, 2013.
The resolutions, proposed by the Supervisory Board, are:
* The distribution of a cash dividend of US$0.10 per outstanding common share
for each of the fourth quarter of 2013 and first quarter of 2014.
* An amendment of the Articles of Association of the Company authorizing the
Supervisory Board, in addition to the General Meeting of Shareholders, to
resolve upon the distribution of quarterly dividends from the reserves of
the Company.
The record date for all shareholders to participate at the EGM will be November
4, 2013. The complete agenda and all relevant detailed information concerning
the EGM, as well as all related EGM materials, are available on the Company's
web site (www.st.com) and have been made available to shareholders in compliance
with legal requirements as of September 27, 2013.
Q3 2013 - Product and Technology Highlights
During the quarter, ST made strong progress with important new-product
introductions and significant design wins.
Embedded Processing Solutions (EPS)
Digital Convergence (DCG)
* Continued to maintain strong momentum on FD-SOI. We delivered a test chip to
a top customer in the consumer market, launched an engagement with a key
player in mobile phone market in China, and successfully completing a 28nm
performance validation with a key networking Chinese player.
* Also in FD-SOI, we are addressing significant customer interest with major
European and US operators, as well as network infrastructure providers and
device makers.
* Achieved DOCSIS 3 certification for SoC products addressing the cable-data
gateway and interactive set-top box markets.
* Launched system-on-chip devices that support UltraHD and HEVC video-decoding
and are ideally suited for server, gateway and client-box applications.
* Started shipments of DisplayPort converter IC for Panasonic's newly launched
Smart VIERA (65WT600) Ultra HD TV.
Imaging, BiCMOS, ASIC and Silicon Photonics (IBP)
* Started deliveries of a new high-value dedicated Image Signal Processor to a
leading consumer brand.
* Sampled and demonstrated to automotive market leaders a new high-performance
Image Signal Processor and image-sensor chipset with advanced features for
automotive and security applications.
* Ramping production for 100G and Parallel Optics applications to satisfy
request from a leading customer.
Microcontrollers, Memory and Secure MCU (MMS)
* Expanded STM32 family of Microcontrollers with Value-line devices offering
32-bit processing at as little as 32 cents in high volumes while also
increasing the ecosystem at the high-end of the family with new STM32 F4
Discovery Kits.
* Captured microcontroller sockets with our STM32F2 in the innovative Pebble
Smartwatch.
* Earned a win for our low-power STM32 devices in a new generation of fitness
products from a leading manufacturer.
* Ramped production of STM32 microcontrollers for Samsung's latest wearable
device and smartphone unveiled recently at IFA2013.
* Achieved Bank-Card Test Center certification for our secure microcontroller
for Dual Interface Banking in China.
* Won multiple sockets for innovative dual-interface EEPROM Near-Field
Communication RFID tag in a range of home appliance from a leading Korean
OEM .
* Succeeded in placing a secure microcontroller in a new generation of Secure
Element from major customers.
* Captured Secure Element in the showcase smartphone from a major OEM.
.
Sense & Power and Automotive Products (SP&A)
Analog, MEMS and Sensors (AMS)
* Captured a design win for a new environmental sensor from a leading Chinese
Smartphone manufacturer.
* Began high-volume production of the 4(th)-generation 3-axis gyroscope for a
major consumer-electronics manufacturer.
* Launched mass production of a Smart iNemo module, containing an
accelerometer, gyro, and brain for a handheld gaming system from a major
manufacturer.
* Captured a socket for a high-G (large-range) 3-axis accelerometer with
Brain-Sentry for a lightweight helmet-mounted impact-monitoring device.
* Started production of a new inkjet printhead for an important American
customer.
* Announced the world's smallest eCompass module and a new family of
gyroscopes specifically optimized for image stabilization on mobile phones
and cameras.
* Launched an innovative USB charge-controller chip that delivers power to
devices connected to a PC's USB port, even when the PC is in shutdown mode.
* Began sampling industry's most energy-efficient Bluetooth 4.0 network
processor for Bluetooth smart applications.
Automotive (APG)
* Leveraged its record of success with Sirius/XM to win the new-generation
40nm BaseBand chip for Digital Satellite Broadcasting.
* Earned an important award for a 32-bit 40nm microcontroller family for body
gateway and body control modules from a major European Tier 1.
* Captured a socket for the brushless DC motor controller for a transmission
from a leading European manufacturer.
* Reinforced success in automotive lighting with major awards from multiple
suppliers in Europe and Korea.
* Won 2nd-generation engine-management system from a Japanese Tier1.
Industrial and Power Discrete (IPD)
* Captured two new ASICs for industrial applications from major EMEA
automation companies. Both programs have extended lifetimes.
* Won key EMIF filters, RF Baluns & protection-device sockets with leading
game-console, tablet, notebook and other portable applications.
* Qualified high-voltage 600 - 650V MDmeshII Plus and MDmeshV MOSFETs for top
power-supply, lighting and consumer customers and low-voltage STripFET(TM
)VI/VIII DeepGATE(TM )products forAutomotive customers for hybrid electric
vehicles and powertrain applications.
* Earned a design win for our newest DC-DC converter from a major US car-
module manufacturer for the LED backlight in an infotainment platform.
* Awarded an ASIC for a dedicated power supply to be used by a leading Meter
manufacturer.
* Captured an important SiC diode win in solar inverters with an Americas-
based manufacturer.
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 and restructuring charges,
operating margin before impairment and restructuring charges, 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 either impact our ability to
execute the planned reductions in our net operating expenses and / or meet
the objectives of our R&D Programs which benefit from public funding;
* Future events or circumstances which may require us to reassess our current
plans concerning the wind down of our ST-Ericsson joint venture;
* The loading and the manufacturing performances of our production facilities;
* The functionalities and performance of our IT systems, which support our
critical operational activities including manufacturing, finance and sales;
* 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; and
* The possibility of widespread financial and business disruption on account
of a default by the U.S. on U.S. government financial obligations.
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 October 23, 2013, the management of STMicroelectronics will conduct a
conference call to discuss the Company's operating performance for the third
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
November 1, 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) |
| ----------------------------+
| September 28, September 29,|
| |
| 2013 2012|
| |
| |
| |
|Net sales 2,005 2,119|
| |
|Other revenues 8 47|
| ----------------------------+
| NET REVENUES 2,013 2,166|
| |
|Cost of sales (1,361) (1,413)|
| ----------------------------+
| GROSS PROFIT 652 753|
| |
|Selling, general and administrative (253) (274)|
| |
|Research and development (423) (578)|
| |
|Other income and expenses, net 78 20|
| |
|Impairment, restructuring charges and other (120) (713)|
|related closure costs |
| ----------------------------+
| Total Operating Expenses (718) (1,545)|
| ----------------------------+
| OPERATING LOSS (66) (792)|
| |
|Interest expense, net (2) (8)|
| |
|Income (loss) on equity-method investments (8) (4)|
| |
|LOSS BEFORE INCOME TAXES (76) (804)|
| |
| AND NONCONTROLLING INTEREST |
| |
|Income tax expense (49) (25)|
| ----------------------------+
| NET LOSS (125) (829)|
| |
|Net loss (income) attributable to noncontrolling (17) 351|
|interest |
| ----------------------------+
| NET LOSS ATTRIBUTABLE TO PARENT COMPANY (142) (478)|
| ----------------------------+
| |
| |
| EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO (0.16) (0.54)|
|PARENT COMPANY STOCKHOLDERS |
| |
| EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO (0.16) (0.54)|
|PARENT COMPANY STOCKHOLDERS |
| |
| |
| |
| NUMBER OF WEIGHTED AVERAGE |
| |
| SHARES USED IN CALCULATING |
| |
| EARNINGS PER SHARE 890.5 887.8|
+------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+
|STMicroelectronics N.V. |
| |
|Consolidated Statements of Income |
| |
|(in millions of U.S. dollars, except per share |
|data ($)) |
| |
| |
| |
| Nine Months Ended |
| |
| (Unaudited) (Unaudited) |
| ----------------------------+
| September 28, September 29,|
| |
| 2013 2012|
| |
| |
| |
|Net sales 6,042 6,269|
| |
|Other revenues 25 62|
| ----------------------------+
| NET REVENUES 6,067 6,331|
| |
|Cost of sales (4,115) (4,246)|
| ----------------------------+
| GROSS PROFIT 1,952 2,085|
| |
|Selling, general and administrative (817) (876)|
| |
|Research and development (1,409) (1,828)|
| |
|Other income and expenses, net 84 55|
| |
|Impairment, restructuring charges and other (263) (788)|
|related closure costs |
| ----------------------------+
| Total Operating Expenses (2,405) (3,437)|
| ----------------------------+
| OPERATING LOSS (453) (1,352)|
| |
|Interest expense, net (2) (26)|
| |
|Loss on equity-method investments (111) (13)|
| |
|Gain on financial instruments, net - 3|
| |
| LOSS BEFORE INCOME TAXES (566) (1,388)|
| |
| AND NONCONTROLLING INTEREST |
| |
|Income tax expense (29) (11)|
| ----------------------------+
| NET LOSS (595) (1,399)|
| |
|Net loss (income) attributable to noncontrolling 131 669|
|interest |
| ----------------------------+
| NET LOSS ATTRIBUTABLE TO PARENT COMPANY (464) (730)|
| ----------------------------+
| |
| |
| EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO (0.52) (0.82)|
|PARENT COMPANY STOCKHOLDERS |
| |
| EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO (0.52) (0.82)|
|PARENT COMPANY STOCKHOLDERS |
| |
| |
| |
| NUMBER OF WEIGHTED AVERAGE |
| |
| SHARES USED IN CALCULATING |
| |
| EARNINGS PER SHARE 889.2 886.3|
+------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+
|STMicroelectronics N.V. |
| |
|CONSOLIDATED BALANCE SHEETS |
| |
|As at September 28, June 29, December 31,|
| |
|In millions of U.S. dollars 2013 2013 2012 |
| ---------------------------------------+
| (Unaudited) (Unaudited) Audited |
+------------------------------------------------------------------------------+
|ASSETS |
| |
|Current assets: |
| |
|Cash and cash equivalents 1,434 1,583 2,250|
| |
|Short-term deposits 1 1 1|
|Marketable securities 91 189 238|
| |
|Trade accounts receivable, net 1,181 1,118 1,005|
| |
|Inventories 1,316 1,336 1,353|
| |
|Deferred tax assets 221 224 137|
| |
|Assets held for sale 17 28 -|
| |
|Other current assets 539 567 518|
| ---------------------------------------+
|Total current assets 4,800 5,046 5,502|
| |
|Goodwill 99 135 141|
| |
|Other intangible assets, net 218 250 213|
| |
|Property, plant and equipment, net 3,193 3,276 3,481|
| |
|Non-current deferred tax assets 373 395 414|
| |
|Restricted cash - - 4|
| |
|Long-term investments 73 29 119|
| |
|Other non-current assets 568 512 560|
| ---------------------------------------+
| 4,524 4,597 4,932|
| ---------------------------------------+
|Total assets 9,324 9,643 10,434|
| |
| |
| |
|LIABILITIES AND EQUITY |
| |
|Current liabilities: |
| |
|Short-term debt 168 313 630|
| |
|Trade accounts payable 898 985 797|
| |
|Other payables and accrued liabilities 944 993 942|
| |
|Dividends payable to stockholders - 94 89|
| |
|Deferred tax liabilities - 1 11|
| |
|Accrued income tax 71 65 86|
| ---------------------------------------+
|Total current liabilities 2,081 2,451 2,555|
| |
|Long-term debt 619 651 671|
| |
|Post-retirement benefit obligations 449 492 477|
| |
|Long-term deferred tax liabilities 13 15 14|
| |
|Other long-term liabilities 356 357 353|
| ---------------------------------------+
| 1,437 1,515 1,515|
| |
|Total liabilities 3,518 3,966 4,070|
| |
|Commitment and contingencies |
| |
|Equity |
| |
|Parent company stockholders' equity |
| |
|Common stock (preferred stock: 1,156 1,156 1,156|
|540,000,000 shares authorized, not |
|issued; common stock: Euro 1.04 nominal |
|value, 1,200,000,000 shares authorized, |
|910,695,805 shares issued, 890,586,025 |
|shares outstanding) |
| |
|Capital surplus 2,572 2,564 2,555|
| |
|Retained earnings 1,291 1,433 1,959|
| |
|Accumulated other comprehensive income 922 749 794|
| |
|Treasury stock (213) (213) (239)|
| ---------------------------------------+
|Total parent company stockholders' 5,728 5,689 6,225|
|equity |
| |
|Noncontrolling interest 78 (12) 139|
| ---------------------------------------+
|Total equity 5,806 5,677 6,364|
| |
|Total liabilities and equity 9,324 9,643 10,434|
+------------------------------------------------------------------------------+
+-------------------------------------------------------------------------+
| STMicroelectronics N.V. |
| |
| |
| |
|
Unternehmensinformation / Kurzprofil:
Datum: 22.10.2013 - 23:14 Uhr
Sprache: Deutsch
News-ID 308332
Anzahl Zeichen: 65602
contact information:
Town:
Geneva
Kategorie:
Business News
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