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)
Net Income attributable to parent company
Net cash from operating activities
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.
Free cash flow
Net financial position
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|
(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.
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