STMicroelectronics Reports 2018 First Quarter Financial Results

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STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, reported financial results for the first quarter ended March 31, 2018.

First quarter net revenues totaled $2.23 billion, gross margin was 39.9%, and net income was $239 million or $0.26 diluted earnings per share.

“We started 2018 with another quarter of double-digit, year-over-year sales growth across all product groups and regions,” commented Carlo Bozotti, STMicroelectronics President, and Chief Executive Officer.

“On a sequential basis, first quarter results were better than the mid-point of our sales and gross margin guidance. We delivered a better than seasonal performance in Automotive and Industrial, thanks to our application-focused approach to Smart Driving and Internet of Things, despite the anticipated unfavorable seasonal dynamics for smartphone applications.

“On a year-over-year basis, net revenues grew 22.2%, gross margin expanded by 220 basis points to 39.9% and operating margin increased by 480 basis points to 12.1%. Free cash flow, during a quarter of high capital spending to support our growth plans, increased by 53% to $95 million from the year-ago quarter and we exited the quarter with a solid net financial position of $522 million.”

Financial Summary (US$ Million)

U.S. GAAP

Q1 2018

Q4 2017

Q1 2017

Net Revenues

2,226

2,466

1,821

Gross Margin

39.9%

40.7%

37.7%

Operating Income

269

411

132

Net Income attributable to parent company

239

308

108

Net cash from operating activities

455

587

289

Certain amounts in the prior periods have been adjusted to reflect the January 1, 2018 adoption of ASU 2017-07 related to the reclassification of certain pension costs.

Non-U.S. GAAP

Q1 2018

Q4 2017

Q1 2017

Free cash flow

95

145

62

Net financial position

522

489

518

Financial Summary by Product Group (US$ Million)

Net Revenues By Product Group Q1 2018 Q4 2017 Q1 2017
Automotive and Discrete Group (ADG) 817 821 708
Analog, MEMS and Sensors Group (AMS) (a) 655 902 518
Microcontrollers and Digital ICs Group (MDG) 750 740 593
Others (b) 4 3 2
Total 2,226 2,466 1,821

(a)  Effective January 1, 2018, the Subsystems business unit was transferred from Others to Analog, MEMS and Sensors Group (AMS). Prior periods have been restated accordingly.(b)  Net revenues of Others includes revenues from sales of assembly services and other revenues.

For more information, visit st.com.

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