ST-Ericsson reports third quarter 2009 financial results
(Thomson Reuters ONE) - * Net sales $728 million; 9% sequential increase * Adjusted operating loss[1] $77 million; results improved compared to prior quarter * Integrated product strategy endorsed by customersGeneva, Switzerland, October 20, 2009 - ST-Ericsson, a joint ventureof STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC), reportsfinancial results for the third quarter 2009.President and CEO, Alain Dutheil, commented: "During the thirdquarter sales were up 9%.Our focus on tight cost control and on completing the integration hasstarted to improve results, and the remaining restructuring plancontinues to progress according to schedule.Customers and partners are endorsing our integrated solutionsportfolio. We are experiencing good momentum with key customers forour U8500, the industry's first open OS 3G/HSPA single chipsmartphone platform. We have also reinforced strategic relationshipswith key players in the computing market, such as Dell and Hojy,centered around our modem portfolio.The company is progressing on the target to become a solid andprofitable leader in the wireless semiconductor market and willcontinue this challenge, led by the recognized competence andexpertise of Gilles Delfassy who will assume the President and CEOposition on November 2, 2009."Financial highlights (unaudited)+-------------------------------------------------------------------+| | Q3 2009 | Q2 2009 | Q3 2008 || $ million | | | PRO-FORMA ||-----------------------------+---------+---------------+-----------|| Income Statement | | | ||-----------------------------+---------+---------------+-----------|| NET SALES | 728 | 666 | 1003 ||-----------------------------+---------+---------------+-----------|| OPERATING INCOME/(LOSS) | | | || ADJUSTED[1] for: | (77) | (165) | (34) ||-----------------------------+---------+---------------+-----------|| - amortization of | | | || acquisition-related | | | || intangibles | (25) | (24) | (25) ||-----------------------------+---------+---------------+-----------|| | | | || - restructuring charges | (19) | (35) | 0 ||-----------------------------+---------+---------------+-----------|| OPERATING INCOME / (LOSS) | | | || as reported | (121) | (224) | (59) ||-----------------------------+---------+---------------+-----------|| NET INCOME / (LOSS) | (112) | (213) | NA |+-------------------------------------------------------------------+Net sales were better than normal seasonal patterns and showed asequential progress of 9%, with solid performance in Asia.The $77 million operating loss, excluding amortization ofacquisition-related intangibles and restructuring charges, comparesto a $165 million operating loss in the second quarter 2009. Thereduced loss reflects a tight control of product costs andoperational expenses and it includes positive seasonal effects.The positive trend on inventory management continued in the thirdquarter, due to increased efficiency in the supply chain as well ascost reductions. Inventory reached $277 million, with a sequentialdecline of $48 million.Net cash[2] was $216 million at the end of third quarter 2009.Update on restructuring plansThe $250 million cost synergies program defined by ST-NXP Wirelesswas substantially completed at the end of the quarter while the $230million restructuring plan, announced by ST-Ericsson on April 29,2009 and currently in progress, had a limited benefit to the thirdquarter results.Market evolution"While visibility on the medium term business environment remainspoor, seasonal market trends are likely to be confirmed in the fourthquarter, where we expect Asia will again be one of the main drivers,"said Alain Dutheil.Q3 2009 highlights - products, technology and winsDuring the quarter, an additional top tier manufacturer has selectedST-Ericsson's U8500 platform for its smartphone development.In September, ST-Ericsson and Dell signed a strategic relationshipagreement to bring high-speed mobility to the Chinese computingmarket. The recently launched Dell Inspiron Mini 10 Netbook is basedon ST-Ericsson's TD-HSPA platform, T7210. As part of the agreement,Dell and ST-Ericsson will extend their cooperation to other devicesbased on the next generation TD-SCDMA platform solutions fromST-Ericsson.The company also extended its cooperation with Hojy Wireless, whichselected ST-Ericsson's dual-mode TD-HSPA/EDGE flexible modem, M6718,to develop their next generation of high-speed mobile broadbandmodules to power data cards, USB dongles, notebooks and smartphonesin China.In September, ST-Ericsson announced the world's smallest solution forconnectivity on mobile handsets: the CG2900, the world's first 45 nmsingle-chip solution for Bluetooth, FM and GPS. ST-Ericsson alsointroduced a new highly integrated ultra-low power Wireless LANdevice, the CW1100.The company also continued to drive innovation in the TD market bydelivering the industry's first TD-HSPA modem chip samples in 65nm.Footnotes[1] The adjusted operating loss is defined as the operating lossreported before amortization of acquisition-related intangibles andrestructuring charges and is used by management to help enhance theunderstanding of ongoing operations and to communicate the impact ofthe items on the operating loss as reported.[2] Net cash is defined as cash and cash equivalents, marketablesecurities, short term deposits less total debtNotes to editorsST-Ericsson invites analysts and investors to a conference callscheduled on Oct 21 at 1:00 P.M. CET. Call-in numbers and livewebcasts of the conference calls as well as supporting slides will beavailable at http://www.stericsson.com/investors/investors.jsp.About ST-EricssonST-Ericsson is a world leader in developing and delivering a completeportfolio of innovative mobile platforms and cutting-edge wirelesssemiconductor solutions across the broad spectrum of mobiletechnologies. The company is a leading supplier to the top handsetmanufacturers and ST-Ericsson's products and technologies enable morethan half of all phones in use today. The company generatedpro-forma sales of about $3.6 billion in 2008. ST-Ericsson wasestablished as a 50/50 joint venture by STMicroelectronics (NYSE:STM)and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters inGeneva, Switzerland. More information about ST-Ericsson is availableat www.stericsson.com.FOR FURTHER INFORMATION, PLEASE CONTACT:Global Communications & Media Investor RelationsRelationsClaudia Levo, Geneva, Fabrizio Rossini, Geneva, SwitzerlandSwitzerlandJana Mancova, Geneva,SwitzerlandPhone: +41 22 930 2733 Phone: +41 22 929 6973Email: Email: investor.relations(at)stericsson.commedia.relations(at)stericsson.comKristina Embring Klang, Lund,SwedenPhone: +46 10 713 5058Email:media.relations(at)stericsson.comEricsson Investor Relations STMicroelectronics Investor RelationsGary Pinkham, Stockholm, Sweden Tait Sorensen, Phoenix AZ, USPhone: +46 10 719 0858 Phone: +1 602 485 2064Susanne Andersson, Stockholm, Celine Berthier, Geneva, SwitzerlandSwedenPhone: +46 10 719 4631 Phone: +41 22 929 5812E-mail: Email: investors(at)st.cominvestor.relations(at)ericsson.com ###The ST-Ericsson results reported in this press release do not reflectin their entirety the results of the Wireless Segment ofSTMicroelectronics, which include other activities that are not partof ST-Ericsson. ###This press release contains forward-looking statements that involveinherent risks and uncertainties. We have identified certainimportant factors that may cause actual results to differ materiallyfrom those contained in such forward-looking statements. For adetailed description of risk factors see STMicroelectronics'(NYSE:STM) and Ericsson's (NASDAQ:ERIC) filings with the USSecurities and Exchange Commission, particularly each company'slatest published Annual Report on Form 20-F.http://hugin.info/1061/R/1348824/324751.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 20.10.2009 - 22:30 Uhr
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