STMicroelectronics Reports 2015 First Quarter Financial Results
(Thomson Reuters ONE) -
* Net revenues of $1.71 billion and gross margin of 33.2%
* Free cash flow of $41 million*
* Stable cash dividend of $0.40 per common share payable in equal quarterly
installments to be proposed to the 2015 Annual General Meeting of
Shareholders
Geneva, April 30, 2015 - STMicroelectronics (NYSE: STM), a global semiconductor
leader serving customers across the spectrum of electronics applications,
reported financial results for the first quarter ended March 28, 2015.
First quarter net revenues totaled $1.71 billion, gross margin was 33.2%, and
net loss was $0.03 per share.
"As expected, the start of the year reflected seasonal softness. Additionally,
revenues in the first quarter were affected by the anticipated currency impact
on the portion of our euro-denominated revenues, and by lower sales of
components for PC applications, both particularly affecting our SP&A segment
revenue performance," commented ST President and CEO Carlo Bozotti.
"Although revenues came in lower than the midpoint of our first quarter outlook,
gross margin was well aligned with our guidance and, despite seasonal factors,
ST generated positive free cash flow.
"During the quarter, we saw ST products enabling more and more of the Internet
of Things as well as some of the latest flagship mobile and wearable devices:
our AMOLED drivers, touchscreen controllers, pressure sensors, 6-axis motion
MEMS, high-performance microphones and STM32 microcontrollers ramped production
or were designed-in with global brands in exciting, new devices. The many new
industry-leading products we introduced during 2014 are steadily increasing our
footprint with customers and starting to bring results."
-----
(*)Free cash flow is a non-U.S. GAAP measure. Please refer to Attachment A for
additional information explaining why the Company believes this measure is
important and reconciliation to U.S. GAAP.
Summary Financial Highlights
+-------------------------------------------------+-------+-------+-------+
|U.S. GAAP | | | |
| |Q1 2015|Q4 2014|Q1 2014|
|(Million US$) | | | |
+-------------------------------------------------+-------+-------+-------+
|Net Revenues | 1,705| 1,829| 1,825|
+-------------------------------------------------+-------+-------+-------+
|Gross Margin | 33.2%| 33.8%| 32.8%|
+-------------------------------------------------+-------+-------+-------+
|Operating Income (Loss), as reported | (19)| 38| (4)|
+-------------------------------------------------+-------+-------+-------+
|Net Income (Loss), attributable to parent company| (22)| 43| (24)|
+-------------------------------------------------+-------+-------+-------+
+------------------------------------------------------+-------+-------+-------+
|Non-U.S. GAAP* | | | |
| |Q1 2015|Q4 2014|Q1 2014|
|(Million US$) | | | |
+------------------------------------------------------+-------+-------+-------+
|Operating Income (Loss) before impairment and | 10| 58| 8|
|restructuring charges | | | |
+------------------------------------------------------+-------+-------+-------+
|Operating Margin before impairment and restructuring | 0.6%| 3.2%| 0.4%|
|charges | | | |
+------------------------------------------------------+-------+-------+-------+
First Quarter Review
First quarter revenues were slightly better than ST's usual seasonality
decreasing 6.8% on a sequential basis, although reflecting the impact of the
U.S. dollar strengthening on about 15% of our revenues that are Euro-denominated
and lower sales of components for PC applications than anticipated.
On a year-over-year basis, first quarter revenues decreased 6.6% and, excluding
legacy ST-Ericsson products and the one-time $15 million payment to ST from a
patent settlement benefiting the Analog & MEMS (AMS) product line within the
SP&A segment in the year-ago quarter, decreased 3.6%.
Microcontroller, Memory, and Secure MCU (MMS) led the product lines with year-
over-year revenue growth of 8.0%.
On a year-over-year basis by region of shipment, Greater China & South Asia,
EMEA and the Americas decreased by 3.7%, 3.8%, and 3.9%, respectively. Japan &
Korea revenues were lower by 22.2% mainly driven by the decline of legacy ST-
Ericsson products.
First quarter gross profit was $566 million and gross margin was 33.2%. Gross
margin improved 40 basis points year-over-year, benefiting from manufacturing
efficiencies and favorable currency effects, net of hedging, partially offset by
price pressure and by about 80 basis points of unused capacity charges mainly
related to manufacturing capacity in digital technology. Gross margin decreased
60 basis points sequentially due to price pressure partially offset by favorable
currency effects, net of hedging. In the first quarter of 2015, unused capacity
charges, largely related to digital technology, had a negative impact on the
gross margin of about 110 basis points.
Combined R&D and SG&A expenses were $591 million compared to $606 million in the
year-ago quarter mainly due to favorable currency effects, net of hedging. On a
sequential basis, combined R&D and SG&A expenses decreased 3.3% benefiting from
a lower number of days in the quarter and favorable currency effects, net of
hedging.
-----
(*)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 reconciliation to U.S. GAAP and
additional information explaining why the Company believes these measures are
important.
First quarter other income & expenses, net, registered income of $35 million
mainly due to R&D funding.
Impairment and restructuring charges in the first quarter were $29 million
compared to $12 million in the year-ago quarter and $20 million in the prior
quarter principally due to the ongoing EPS restructuring plan targeting $100
million in annualized cost savings.
First quarter operating income before impairment and restructuring charges was
$10 million compared to income of $8 million in the year-ago quarter.
First quarter net loss was $22 million or $(0.03) per share, compared to a net
loss per share of $(0.03) in the year-ago quarter and a net income of $0.05 in
the prior quarter. On an adjusted basis, ST's non-U.S. GAAP net income per share
was $0.01 in the first quarter compared to a net loss per share of $(0.01) in
the year-ago quarter and a net income of $0.07 in the prior quarter.*
For the first quarter of 2015, the effective average exchange rate for the
Company was approximately $1.23 to ?1.00 compared to $1.35 to ?1.00 for the
first quarter of 2014 and $1.29 to ?1.00 for the fourth quarter of 2014.
Quarterly Net Revenues Summary
+----------------------------------------------+---------+---------+---------+
| Net Revenues By Product Line and Segment | | | |
| | Q1 2015 | Q4 2014 | Q1 2014 |
| (Million US$) | | | |
+----------------------------------------------+---------+---------+---------+
| Analog & MEMS (AMS) | 255 | 266 | 304 |
+----------------------------------------------+---------+---------+---------+
| Automotive (APG) | 434 | 436 | 445 |
+----------------------------------------------+---------+---------+---------+
| Industrial & Power Discrete (IPD) | 430 | 462 | 442 |
+----------------------------------------------+---------+---------+---------+
| Sense & Power and Automotive Products (SP&A) | 1,119 | 1,164 | 1,191 |
+----------------------------------------------+---------+---------+---------+
| Digital Product Group (DPG) ((a)) | 207 | 259 | 282 |
+----------------------------------------------+---------+---------+---------+
| Microcontroller, Memory & Secure MCU (MMS) | 374 | 388 | 346 |
+----------------------------------------------+---------+---------+---------+
| Other EPS | - | 13 | - |
+----------------------------------------------+---------+---------+---------+
| Embedded Processing Solutions (EPS) | 581 | 660 | 628 |
+----------------------------------------------+---------+---------+---------+
| Others | 5 | 5 | 6 |
+----------------------------------------------+---------+---------+---------+
| Total | 1,705 | 1,829 | 1,825 |
+----------------------------------------------+---------+---------+---------+
((a)) Effective January 1, 2015, the Digital Convergence Group (DCG) and
Imaging, BI-CMOS and Silicon Photonics (IBP) groups were combined under one
single organization, called Digital Product Group (DPG).
+-----------------------------------+---------+---------+---------+
| Net Revenues By Market Channel(%) | Q1 2015 | Q4 2014 | Q1 2014 |
+-----------------------------------+---------+---------+---------+
| Total OEM | 70% | 68% | 70% |
+-----------------------------------+---------+---------+---------+
| Distribution | 30% | 32% | 30% |
+-----------------------------------+---------+---------+---------+
-----
(*)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.
Quarterly Revenues and Operating Results by ST Product Segment
Commencing January 1, 2015, unused capacity charges have been allocated to the
associated product segments. Comparative numbers have been restated accordingly.
+------------+---------+-----------+---------+-----------+---------+-----------+
|Operating |Q1 2015 | Q1 2015 |Q4 2014 | Q4 2014 |Q1 2014 | Q1 2014 |
|Segment | Net |Operating | Net |Operating | Net |Operating |
|(Million |Revenues | Income |Revenues | Income |Revenues | Income |
|US$) | | (Loss) | | (Loss) | | (Loss) |
+------------+---------+-----------+---------+-----------+---------+-----------+
|Sense & | | | | | | |
|Power and | | | | | | |
| | | | | | | |
|Automotive | 1,119| 72| 1,164| 98| 1,191| 101|
|Products | | | | | | |
| | | | | | | |
|(SP&A) | | | | | | |
+------------+---------+-----------+---------+-----------+---------+-----------+
|Embedded | | | | | | |
|Processing | | | | | | |
| | 581| (64)| 660| (34)| 628| (82)|
|Solutions | | | | | | |
| | | | | | | |
|(EPS) | | | | | | |
+------------+---------+-----------+---------+-----------+---------+-----------+
|Others ((a))| 5| (27)| 5| (26)| 6| (23)|
+------------+---------+-----------+---------+-----------+---------+-----------+
|TOTAL | 1,705| (19)| 1,829| 38| 1,825| (4)|
+------------+---------+-----------+---------+-----------+---------+-----------+
((a) )Net revenues of "Others" includes revenues from sales of Subsystems,
assembly services, and other revenue. Operating income (loss) of "Others"
includes items such as 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 $29 million, $20 million,
and $12 million of impairment, restructuring charges, and other related closure
costs in the first quarter of 2015 and fourth and first quarters of 2014,
respectively.
Sense & Power and Automotive Products first quarter net revenues decreased 6.0%
compared to the year-ago quarter mainly due to lower AMS sales. SP&A revenues
decreased 3.9% sequentially, mainly due to lower IPD sales related to power
supply components for PC applications. SP&A operating margin, including unused
capacity charges, decreased to 6.4% in the 2015 first quarter compared to 8.5%
and 8.4% in the year-ago and prior quarter, respectively, mainly due to lower
revenues.
Embedded Processing Solutions first quarter net revenues reflected mixed
results, with strong year-over-year growth for MMS of 8.0% more than offset by
the decrease of ST-Ericsson legacy products and lower DPG revenues. EPS revenues
decreased 7.4% and 12.0% on a year-over-year and sequential basis, respectively,
mainly due to lower DPG sales. First quarter EPS operating margin, including
unused capacity charges, was negative 11.1%. Despite lower sales and higher
unused capacity charges, EPS operating margin improved from negative 13.1% in
the year-ago quarter mainly due to lower operating expenses from favorable
currency effects and higher R&D funding. First quarter operating margin
decreased from negative 5.1% in the prior quarter mainly due to lower sales
partially offset by lower unused capacity charges.
"Our cost savings program within the EPS organization remains on track and, as
anticipated, we will end our participation in the IBM Technology Development
Alliance at the end of the second quarter," said Jean-Marc Chery, ST Chief
Operating Officer.
Cash Flow and Balance Sheet Highlights
Free cash flow improved to $41 million in the first quarter compared to negative
$51 million in the year-ago quarter.*
Capital expenditure payments, net of proceeds from sales, were $89 million
during the first quarter of 2015 compared to $112 million in the year-ago
quarter.
Inventory was $1.19 billion at quarter end, down 6% from the prior quarter.
Inventory in the first quarter of 2015 was at 3.8 turns or 95 days.
In the first quarter, the Company paid cash dividends totaling $82 million.
ST's net financial position was $512 million at March 28, 2015 compared to $550
million at December 31, 2014.* ST's financial resources equaled $2.29 billion
and total debt was $1.78 billion at March 28, 2015.
Total equity, including non-controlling interest, was $4.76 billion at quarter
end.
Second Quarter 2015 Business Outlook
Mr. Bozotti commented, "In the second quarter, we expect to increase our
revenues by about 3.5% sequentially, with most of our product groups
contributing. Gross margin is anticipated to increase by about 60 basis points
to 33.8%, including existing hedging contracts significantly mitigating the
positive impact from currency."
Second quarter 2015 revenues are expected to increase about 3.5% on a sequential
basis, plus or minus 3.5 percentage points. Gross margin in the second quarter
is expected to be about 33.8%, plus or minus 2.0 percentage points.
This outlook is based on an assumed effective currency exchange rate of
approximately $1.16 = ?1.00 for the 2015 second quarter and includes the impact
of existing hedging contracts. The second quarter will close on June 27, 2015.
-----
(*)Free cash flow and net financial position are non-U.S. GAAP measures. For
additional information and reconciliation to U.S. GAAP, please refer to
Attachment A.
Key Summary Financial Information
Commencing January 1, 2015, the Digital Convergence Group (DCG) and Imaging, BI-
CMOS and Silicon Photonics (IBP) groups were combined under one single
organization, called Digital Product Group (DPG).
+----------------------------+-------+-------+-------+-------+-------+-------+
|Revenues (Million US$) |Q1 2014|Q2 2014|Q3 2014|Q4 2014|FY 2014|Q1 2015|
+----------------------------+-------+-------+-------+-------+-------+-------+
|Digital Product Group (DPG) | 282| 259| 286| 259| 1,086| 207|
+----------------------------+-------+-------+-------+-------+-------+-------+
Reflecting the allocation of unused capacity charges to the associated product
segments as of January 1, 2015, the Company has reclassified prior period
operating income (loss).
+------------------------+-------+-------+-------+-------+-------+-------+
|Operating Income (Loss)| | | | | | |
| |Q1 2014|Q2 2014|Q3 2014|Q4 2014|FY 2014|Q1 2015|
|(Million US$) | | | | | | |
+------------------------+-------+-------+-------+-------+-------+-------+
|Sense & | | | | | | |
| | | | | | | |
|Power and | | | | | | |
| | 101| 125| 111| 98| 435| 72|
|Automotive Products | | | | | | |
| | | | | | | |
|(SP&A) | | | | | | |
+------------------------+-------+-------+-------+-------+-------+-------+
|Embedded Processing | | | | | | |
| | | | | | | |
|Solutions | (82)| 10| (38)| (34)| (144)| (64)|
| | | | | | | |
|(EPS) | | | | | | |
+------------------------+-------+-------+-------+-------+-------+-------+
Recent Corporate Developments
* On March 6, ST closed the agreement with Enel Green Power to transfer its
equity stake in 3Sun, a joint venture in photovoltaic panels manufacturing.
ST paid ?11.5 million to Enel Green Power in exchange for ST's full release
from any obligation concerning the joint venture or Enel Green Power. In
addition, ST forgave its ?13 million outstanding shareholder loan to the
joint venture.
* On March 27, ST announced the main resolutions to be submitted for adoption
at the Annual General Meeting of Shareholders which will be held in
Amsterdam, the Netherlands, on May 27, 2015. The main resolutions, proposed
by the Supervisory Board, include:
* The adoption of the Company's Statutory Annual Accounts for the year
ended December 31, 2014, prepared in accordance with International
Financial Reporting Standards (IFRS);
* The distribution of a cash dividend of US$0.40 per outstanding share of
the Company's common stock, to be distributed in quarterly installments
of US$0.10 in each of the second, third and fourth quarters of 2015 and
first quarter of 2016 to shareholders of record in the month of each
quarterly payment;
* The appointment of Mr. Nicolas Dufourcq as a new member of the
Supervisory Board, for a three-year term expiring at the 2018 Annual
General Meeting of Shareholders, in replacement of Mr. Jean d'Arthuys
whose mandate will terminate as of the 2015 Annual General Meeting of
Shareholders;
* The reappointment of Ms. Martine Verluyten as a member of the
Supervisory Board, for a three-year term expiring at the 2018 Annual
General Meeting of Shareholders; and
* The appointment of Ernst & Young Accountants LLP as the Company's
external auditor for the 2016-2019 financial years.
The complete agenda and all relevant detailed information concerning the 2015
Annual General Meeting of Shareholders, as well as all related AGM materials are
available on the Company's website (www.st.com).
Q1 2015 - Product and Technology Highlights
Embedded Processing Solutions (EPS)
Digital Products (DPG)
* Began delivering to a European customer the latest Ultra-HDp60 quad-core
Cannes and Monaco-family systems-on-chip ICs;
* Captured multiple design wins globally for Liege family of set-top box
processors;
* Successfully demonstrated full RDK-B gateway software and DOCSIS® 3.1 real-
time communication over standard COAX and device interoperability tests;
* Presented operating turnkey cable modem, cable data gateway, and interactive
set-top-box reference designs for transitioning DOCSIS 2.0 to DOCSIS 3.0 /
C-DOCSIS in China;
* Cooperated with key middleware partner iPanel on solutions for next-
generation digital migration in China.
Microcontroller, Memory and Secure MCU (MMS)
* Ramped production of STM32 for latest Samsung Galaxy smartphones;
* Earned important wins for STM32 in a Bluetooth-connected accessory for
tablets and for two STM32s in the high-end fitness band at key global OEMs;
* Extended the STM32 portfolio with ultra-low-power, high-performance STM32L4
series that, on announcement, offered the industry's most efficient ultra-
low-power microcontroller; the F0 Value line with USB and bigger Flash; and
the F3 series with richer peripherals and larger memories. We now offer over
600 STM32 part numbers;
* Joined with ams to launch breakthrough reference design for secure
contactless NFC transactions and mobile payments in phones and wearables
with tiny antennas;
* Announced a new family of NFC/RFID Tags with EEPROM memory density spanning
from 512bits up to 64Kbit;
* Captured NFC Tag in a next-generation headset at a major audio-equipment
OEM.
Sense & Power and Automotive Products (SP&A)
Analog, MEMS and Sensors (AMS)
* Ramped production of high-end touch-screen controller and barometer for
latest Samsung Galaxy smartphones;
* Announced adoption of control devices and micro-mirrors for Perceptual
Computing initiatives at Intel and started production for several end
customers;
* Delivered in high volume, high-performance analog microphone to a leading
smartphone brand and started production of a microphone to be used in PCs
for a key American manufacturer;
* Ramped production of ultra-low-power 6-axis motion sensor for a wearable
application from a global brand and earned greatest share of a socket with a
top Chinese brand;
* Began ramping production of 6-axis ultra-low-power MEMS accelerometer and
gyroscope for Samsung Galaxy smartphones;
* Started production ramp for several inertial sensors in car-navigation and
telematics applications in Korea, Europe and the US;
* Won a socket for Bluetooth Low-Energy wireless-network processor for an
industrial application from a top European manufacturer;
* Introduced the world's first sensor to provide a direct digital output of
the Ultraviolet Index (UVI) for Mobile, Wearable, and IoT Applications;
* Announced leadership of European Research Project to develop next-generation
optical-MEMS technologies.
Automotive (APG)
* Won design awards for latest-generation car-radio processor with important
manufacturers in Korea and Greater China;
* Landed a first socket in car audio with an important Korean consumer brand
supplying to a key European car maker;
* Received an award for a class D car-audio amplifier with Japanese consumer
supplier;
* Awarded the microcontroller socket for an e-bike from a key European Tier 1;
* Captured multiple mass-market awards in Europe and China for the SPC5 family
of MCUs;
* Earned additional sockets for a next-generation Advanced Driver Assistance
System with a major European carmaker;
* Designed into an existing Gen2 electronic variable orifice ASSP that
moderates hydraulic fluid pressure for power steering in a large European
supplier;
* Earned multiple wins for several European-leaders' Tier1 platforms with our
latest-generation VIPower technology.
Industrial and Power Discrete (IPD)
* Ramped production of AMOLED driver for latest Samsung Galaxy smartphones;
* Gained several design wins for low-voltage MOSFETs in a Power Supply for
game-console applications with a global manufacturer;
* Continued to gain traction with RF Integrated Passive Devices for
smartphone- and IoT-related applications with leading global brands;
* Revealed, with Flextronics, world's first plug-in charger platform with zero
no-load power consumption;
* Secured sockets for high-voltage MOSFETs in Ultra-High-Definition-Display
applications from leading manufacturer in Korea;
* Captured sockets for a kit solution (power-factor controller, resonant
controller, and synchronous rectification controller) for a desktop power-
supply application with a Chinese multinational computer technology company;
* Won designs for a DC-DC converter for powering AMOLED displays for a new
tablet platform with a Korean market leader;
* Landed a win for high-voltage IGBTs for an induction-heating application
with a major Chinese customer;
* Awarded sockets for a high-voltage resonant controller with three major TV
switched-mode power-supply makers in Greater China;
* Earned wins for energy-saving high-voltage power converters (VIPerPlus) from
several mass-market customers in Greater China;
* Captured key power-rectifier and protection-device sockets for a broad range
of automotive applications with leading manufacturers.
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 per share, free cash flow and net financial position.
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;
* The loading and the manufacturing performance 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, 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, tsunamis, 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, 2014, as filed with the SEC on March
3, 2015. 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 30, 2015, the management of STMicroelectronics will conduct a
conference call to discuss the Company's operating performance for the first
quarter of 2015.
The conference call will be held at 9:30 a.m. CET / 8:30 a.m. BST / 3:30 a.m.
U.S. Eastern Time (ET) / 12:30 a.m. U.S. Pacific Time (PT). 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 15, 2015.
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 2014, the Company's net revenues were $7.40 billion. Further information on
ST can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:
Tait Sorensen
Group VP, Investor Relations
Tel: +1 602 485 2064
tait.sorensen(at)st.com
MEDIA RELATIONS:
Nelly Dimey
Director, Corporate Media and Public Relations
Tel: + 33 1 58 07 77 85
nelly.dimey(at)st.com
(tables attached)
+------------------------------------------------------------------------------+
|STMicroelectronics N.V. |
| |
|Consolidated Statements of Income |
| |
|(in millions of U.S. dollars, except per share data |
|($)) |
| |
| |
| |
| Three Months Ended |
| |
| (Unaudited) (Unaudited)|
| ------------------------+
| March 28, March 29,|
| |
| 2015 2014|
| |
| |
| |
|Net sales 1,693 1,801|
| |
|Other revenues 12 24|
| ------------------------+
| NET REVENUES 1,705 1,825|
| |
|Cost of sales (1,139) (1,226)|
| ------------------------+
| GROSS PROFIT 566 599|
| |
|Selling, general and administrative (222) (228)|
| |
|Research and development (369) (378)|
| |
|Other income and expenses, net 35 15|
| |
|Impairment, restructuring charges and other related |
|closure costs (29) (12)|
| ------------------------+
| Total Operating Expenses (585) (603)|
| ------------------------+
| OPERATING LOSS (19) (4)|
| |
|Interest expense, net (5) (2)|
| |
|Income (loss) on equity-method investments 4 (8)|
| |
|Gain on financial instruments, net - 1|
| |
|LOSS BEFORE INCOME TAXES (20) (13)|
| |
| AND NONCONTROLLING INTEREST |
| |
|Income tax expense (1) (9)|
| ------------------------+
| NET LOSS (21) (22)|
| |
|Net loss (income) attributable to noncontrolling |
|interest (1) (2)|
| ------------------------+
| NET LOSS ATTRIBUTABLE TO PARENT COMPANY (22) (24)|
| ------------------------+
| |
| |
| EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO |
|PARENT COMPANY STOCKHOLDERS (0.03) (0.03)|
| |
| EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO |
|PARENT COMPANY STOCKHOLDERS (0.03) (0.03)|
| |
| |
| |
| NUMBER OF WEIGHTED AVERAGE |
| |
| SHARES USED IN CALCULATING |
| |
| DILUTED EARNINGS PER SHARE 874.0 890.7|
+------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+
|STMicroelectronics N.V. |
| |
|CONSOLIDATED BALANCE SHEETS |
| |
|As at March 28, December 31, March 29, |
| |
|In millions of U.S. dollars 2015 2014 2014 |
| -------------------------------------+
| (Unaudited) (Audited) (Unaudited)|
| |
|ASSETS |
| |
|Current assets: |
| |
|Cash and cash equivalents 1,949 2,017 1,744|
| |
|Short-term deposits - - 1|
| |
|Marketable securities 338 334 -|
| |
|Trade accounts receivable, net 971 911 1,112|
| |
|Inventories 1,193 1,269 1,331|
| |
|Deferred tax assets 96 97 130|
| |
|Assets held for sale 34 33 -|
| |
|Other current assets 408 390 382|
| -------------------------------------+
|Total current assets 4,989 5,051 4,700|
| |
|Goodwill 76 82 90|
| |
|Other intangible assets, net 184 193 228|
| |
|Property, plant and equipment, net 2,468 2,647 3,066|
| |
|Non-current deferred tax assets 385 386 222|
| |
|Long-term investments 58 69 72|
| |
|Other non-current assets 552 576 639|
| -------------------------------------+
| 3,723 3,953 4,317|
| |
|Total assets 8,712 9,004 9,017|
| -------------------------------------+
| |
| |
|LIABILITIES AND EQUITY |
| |
|Current liabilities: |
| |
|Short-term debt 200 202 225|
| |
|Trade accounts payable 706 597 764|
| |
|Other payables and accrued liabilities 860 841 866|
| |
|Dividends payable to stockholders 14 87 4|
| |
|Accrued income tax 38 39 51|
| -------------------------------------+
|Total current liabilities 1,818 1,766 1,910|
| |
|Long-term debt 1,575 1,599 908|
| |
|Post-employment benefit obligations 367 392 366|
| |
|Long-term deferred tax liabilities 10 10 10|
| |
|Other long-term liabilities 181 182 148|
| -------------------------------------+
| 2,133 2,183 1,432|
| |
|Total liabilities 3,951 3,949 3,342|
| |
|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, |
|910,847,920 shares issued, |
|874,019,201 shares outstanding) 1,157 1,157 1,156|
| |
|Capital surplus 2,749 2,741 2,587|
| |
|Retained earnings 795 817 1,052|
| |
|Accumulated other comprehensive income 332 613 1,024|
| |
|Treasury stock (334) (334) (212)|
| -------------------------------------+
|Total parent company stockholders' equity 4,699 4,994 5,607|
| |
|Noncontrolling interest 62 61 68|
| -------------------------------------+
|Total equity 4,761 5,055 5,675|
| |
|Total liabilities and equity 8,712 9,004 9,017|
+------------------------------------------------------------------------------+
+-------------------------------------------------------------------------+
| STMicroelectronics N.V. |
| |
| |
| |
| SELECTED CASH FLOW DATA |
| |
| |
+-------------------------------------------+---------+---------+---------+
| Cash Flow Data (in US$ millions) | Q1 2015 | Q4 2014 | Q1 2014 |
+-------------------------------------------+---------+---------+---------+
| |
+-------------------------------------------+---------+---------+---------+
| Net Cash from operating activities | 149 | 311 | 53 |
+-------------------------------------------+---------+---------+---------+
| Net Cash used in investing activities | (108) | (103) | (39) |
+-------------------------------------------+---------+---------+---------+
| Net Cash used in financing activities | (102) | (317) | (105) |
+-------------------------------------------+---------+---------+---------+
| Net Cash decrease | (68) | (113) | (92) |
+-------------------------------------------+---------+---------+---------+
| |
+-------------------------------------------+---------+---------+---------+
| Selected Cash Flow Data (in US$ millions) | Q1 2015 | Q4 2014 | Q1 2014 |
+-------------------------------------------+---------+---------+---------+
| |
+-------------------------------------------+---------+---------+---------+
| Depreciation & amortization | 175 | 199 | 205 |
+-------------------------------------------+---------+---------+---------+
| Net payment for Capital expenditures | (89) | (108) | (112) |
+-------------------------------------------+---------+---------+---------+
| Dividends paid to stockholders | (82) | (90) | (85) |
+-------------------------------------------+---------+---------+---------+
| Change in inventories, net | 18 | (30) | 6 |
+-------------------------------------------+---------+---------+---------+
(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 and restructuring charges 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, net of the relevant tax
impact.
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 2015 | | Operating |Net Earnings| |
|(US$ millions and|Gross Profit|Income (loss) | |Corresponding EPS|
|cents per share) | | | | |
+-------------------+------------+--------------+------------+-----------------+
|U.S. GAAP | 566 | (19) | (22) | (0.03) |
+-------------------+------------+--------------+------------+-----------------+
|Impairment & | | 29 | 29 | |
|Restructuring | | | | |
+-------------------+------------+--------------+------------+ |
|Estimated Income | | | (1) | |
|Tax Effect | | | | |
+-------------------+------------+--------------+------------+-----------------+
|Non-U.S GAAP | 566 | 10 | 6 | 0.01 |
+-------------------+------------+--------------+------------+-----------------+
+-------------------+------------+--------------+------------+-----------------+
|Q4 2014 | | Operating |Net Earnings| |
|(US$ millions and|Gross Profit|Income (loss) | |Corresponding EPS|
|cents per share) | | | | |
+-------------------+------------+--------------+------------+-----------------+
|U.S. GAAP | 619 | 38 | 43 | 0.05 |
+-------------------+------------+--------------+------------+-----------------+
|Impairment & | | 20 | 20 | |
|Restructuring | | | | |
+-------------------+------------+--------------+------------+ |
|Estimated Income | | | (2) | |
|Tax Effect | | | | |
+-------------------+------------+--------------+------------+-----------------+
|Non-U.S GAAP | 619 | 58 | 61 | 0.07 |
+-------------------+------------+--------------+------------+-----------------+
+-------------------+------------+--------------+------------+-----------------+
|Q1 2014 | | Operating |Net Earnings| |
|(US$ millions and|Gross Profit|Income (loss) | |Corresponding EPS|
|cents per share) | | | | |
+-------------------+------------+--------------+------------+-----------------+
|U.S. GAAP | 599 | (4) | (24) | (0.03) |
+-------------------+------------+--------------+------------+-----------------+
|Impairment & | | 12 | 12 | |
|Restructuring | | | | |
+-------------------+------------+--------------+------------+ |
|Estimated Income | | | (1) | |
|Tax Effect | | | | |
+-------------------+------------+--------------+------------+-----------------+
|Non-U.S GAAP | 599 | 8 | (13) | (0.01) |
+-------------------+------------+--------------+------------+-----------------+
(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 28, 2015|December 31, 2014|March 29, 2014|
|millions) | | | |
+------------------------------+--------------+-----------------+--------------+
|Cash and cash equivalents | 1,949 | 2,017 | 1,744 |
+------------------------------+--------------+-----------------+--------------+
|Marketable securities | 338 | 334 | - |
+------------------------------+--------------+-----------------+--------------+
|Short-term deposits | - | - | 1 |
+------------------------------+--------------+-----------------+--------------+
|Total financial resources | 2,287 | 2,351 | 1,745 |
+------------------------------+--------------+-----------------+--------------+
|Short-term debt | (200) | (202) | (225) |
+------------------------------+--------------+-----------------+--------------+
|Long-term debt | (1,575) | (1,599) | (908) |
+------------------------------+--------------+-----------------+--------------+
|Total financial debt | (1,775) | (1,801) | (1,133) |
+------------------------------+--------------+-----------------+--------------+
|Net financial position | 512 | 550 | 612 |
+------------------------------+--------------+-----------------+--------------+
Free cash flow is defined as net cash from operating activities
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2015 - 07:07 Uhr
Sprache: Deutsch
News-ID 389675
Anzahl Zeichen: 65597
contact information:
Town:
Geneva
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 145 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"STMicroelectronics Reports 2015 First Quarter Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
STMicroelectronics (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
