ST-Ericsson reports third quarter 2011 financial results
(Thomson Reuters ONE) -
* Net sales $412 million, including IP licensing to a third party
* Adjusted operating loss(1)) $194 million
* Revenue from new products passed the 50 percent threshold
Geneva, Switzerland, October 19, 2011 - ST-Ericsson, a joint venture of
STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC), reported financial
results for the third fiscal quarter ending October 1, 2011.
"Sales in the third quarter came in slightly ahead of expectations, even when
excluding $20 million of revenue from IP licensing to a third party," said
Gilles Delfassy, president and CEO of ST-Ericsson. "Revenue from new products
continued to grow, making up more than half of our total sales.
"We continue to make progress on having more devices in the market with ST-
Ericsson inside. The first smartphone using one of our NovaThor(TM) platforms
has ramped in the market - the HTC Sensation Z710t for China Mobile. There are
also several new smartphone models in the market based on our Thor(TM) modem
technology.
"Our financial performance continues to be challenging, but in addition to
growing sales from new products, we're on plan to execute the cost-saving
measures announced in June, and we continue to make improvements within our
organization to achieve greater efficiencies.
"With our new platforms starting to ramp in volume, we look forward to seeing
more and more the benefits as we go into production in the coming quarters with
several of the world's largest smartphone and tablet makers."
2011 third quarter financial summary (unaudited)
$ million Q3 2011 Q2 2011 Q3 2010
Income Statement
NET SALES 412 385 565
OPERATING INCOME/(LOSS) ADJUSTED(1)) for: (194) (181) (85)
- amortization of acquisition-related intangibles (25) (25) (25)
- restructuring charges (5) (15) (19)
OPERATING INCOME / (LOSS) as reported (224) (222) (129)
NET INCOME / (LOSS) (211) (221) (121)
$ million Q3 2011 Q2 2011 Q3 2010
Net Financial Position
Cash, cash equivalents & short-term deposits 20 18 89
Parent companies short-term credit facilities (614) (445) (50)
Net Financial Position²()) (594) (427) 39
Additional financial information
The net financial position(2) )at the end of the third quarter was negative $594
million. The sequential decrease, mainly due to the operating loss, was
mitigated by actions to accelerate the cash conversion cycle and reduce working
capital. During the third quarter the company sold trade receivables without
recourse, of which $162 million were outstanding at the end of the quarter,
representing a sequential decrease of $17 million.
Inventory decreased by $37 million reaching $281 million at the end of the third
quarter.
Outlook
For the fourth quarter 2011, ST-Ericsson expects net sales to be slightly up
sequentially.
Highlights - products, technology and wins announced in third quarter 2011
* Products
* Launched its Nova(TM)-powered Snowball developer board in the Chinese
market.
* Customers
* China Mobile and HTC launched the HTC Sensation Z710t in September, the
first smartphone based on ST-Ericsson's powerful new NovaThor platform.
* Lenovo's new Android-based ThinkPad(TM) tablet features Ericsson's
mobile broadband modules, based on ST-Ericsson's Thor HSPA+ 21Mbps
modem.
* Panasonic launched a smartphone based on ST-Ericsson's Thor thin modem.
Panasonic also announced that additional smartphones based on ST-
Ericsson's Thor HSPA+ 21Mbps thin modems will be available by the end of
the year.
* Partners/technology
* To drive innovation in mobile augmented reality, ST-Ericsson intensified
collaboration in mobile augmented reality research projects with metaio,
a world leader in augmented reality solutions.
Financial results appendix (unaudited)
2010 financial results by quarter
$ million Q1 2010 Q2 2010 Q3 2010 Q4 2010
Income Statement
NET SALES 606 544 565 577
OPERATING INCOME/(LOSS) ADJUSTED(1)) for: (114) (118) (85) (119)
- amortization of acquisition-related
intangibles (24) (25) (25) (28)
- restructuring charges (27) (5) (19) (24)
OPERATING INCOME / (LOSS) as reported (164) (148) (129) (171)
NET INCOME / (LOSS) (154) (139) (121) (177)
Footnotes
1) The adjusted operating income/(loss) is defined as the operating
income/(loss) reported before amortization of acquisition-related intangibles
and restructuring charges and is used by management to help enhance the
understanding of ongoing operations and to communicate the impact of these items
on the operating loss as reported.
2) Net financial position represents the balance between financial assets, which
comprise cash, cash equivalents and short-term deposits, and financial debt
which includes bank overdrafts and parent companies short-term bridge credit
facilities
Notes to editors
ST-Ericsson invites journalists, analysts and investors to a conference call
scheduled on October 20, at 5pm CET. Call-in numbers, a live webcast of the
conference call, as well as supporting slides, will be available
atwww.stericsson.com/investors/investors.jsp.
About ST-Ericsson
ST-Ericsson is a world leader in developing and delivering a complete portfolio
of innovative mobile platforms and cutting-edge wireless semiconductor solutions
across the broad spectrum of mobile technologies. The company is a leading
supplier to the top handset manufacturers and generated sales of $2.3 billion in
2010. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics
(NYSE:STM) and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters in
Geneva, Switzerland.
www.stericsson.com
www.twitter.com/STEricssonForum
FOR FURTHER INFORMATION, PLEASE CONTACT:
Global Communications Investor & Analyst Relations
Carol Streitberger Brighton, Geneva, Fabrizio Rossini, Geneva, Switzerland
Switzerland Phone: +41 22 929 6973
Email:investor.relations(at)stericsson.com
Public & Media Relations
Pamela McCracken, Santa Clara, CA, Ericsson Investor Relations
U.S.A. Asa Konnbjer, Stockholm, Sweden
Phone: +1 408 919 8743 Phone: +46 10 713 3928
Email:media.relations(at)stericsson.com Email:investor.relations(at)ericsson.com
Roland Sladek, Geneva, Switzerland STMicroelectronics Investor Relations
Phone: +41 22 930 2733 Tait Sorensen, Phoenix, AZ, U.S.A.
Email:media.relations(at)stericsson.com Phone: +1 602 485 2064
Celine Berthier, Geneva, Switzerland
Phone: +41 22 929 5812
Email:investors(at)st.com
###
The ST-Ericsson results reported in this press release do not reflect in their
entirety the results of the Wireless Segment of STMicroelectronics, which
include other activities that are not part of ST-Ericsson.
###
This press release contains forward-looking statements that involve inherent
risks and uncertainties. We have identified certain important factors that may
cause actual results to differ materially from those contained in such forward-
looking statements. For a detailed description of risk factors see
STMicroelectronics' (NYSE:STM) and Ericsson's (NASDAQ:ERIC) filings with the US
Securities and Exchange Commission, particularly each company's latest published
Annual Report on Form 20-F.
Third Quarter 2011 financial results:
http://hugin.info/141758/R/1555863/480203.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ST-Ericsson via Thomson Reuters ONE
[HUG#1555863]
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Datum: 19.10.2011 - 22:31 Uhr
Sprache: Deutsch
News-ID 78249
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