-
Net revenues of $1.82 billion,
up 12.9% year-over-year on growth across all product
groups
-
Gross margin of 37.6%, up 420
basis points year-over-year
-
Net income of $108 million,
year-over-year improvement of $149 million
-
Cash dividend of $0.24 per
common share payable in equal quarterly installments to be proposed
to the 2017 Annual General Meeting of Shareholders
Geneva, April 27,
2017 - STMicroelectronics (NYSE: STM), a global semiconductor
leader serving customers across the spectrum of electronics
applications, reported financial results for the first quarter
ended April 1, 2017.
First quarter net revenues totaled
$1.82 billion, gross margin was 37.6%, and net income was $108
million, or $0.12 per share.
"The positive
momentum we have had over the last quarters has continued entering
2017," commented Carlo Bozotti,
STMicroelectronics President and Chief Executive Officer.
"In the first
quarter, both revenues and gross margin were better than the
mid-point of the guidance. Year-over-year, revenues increased
12.9%, with a synchronized and well-balanced growth across product
groups, regions and sales channels. Both operating and net income
significantly improved year-over-year, increasing to $129 million
and $108 million, respectively, in the first quarter. Free cash
flow, during a quarter of higher capital spending to support our
growth plans, doubled to $62 million on a year-over-year
basis.
"Our objective
for 2017 is to achieve sustainable revenue growth and margin
expansion through our strategic focus on Internet of Things and
Smart Driving. Our results in this first quarter are putting us on
the right trajectory."
Quarterly
Financial Summary (US$ Million)
U.S. GAAP |
Q1 2017 |
Q4 2016 |
Q1 2016 |
Net
Revenues |
1,821 |
1,859 |
1,613 |
Gross
Margin |
37.6% |
37.5% |
33.4% |
Operating
Income (Loss) |
129 |
129 |
(33) |
Net
Income (Loss) attributable to parent company |
108 |
112 |
(41) |
Net cash
from operating activities |
289 |
378 |
141 |
Non-U.S. GAAP (1) |
Q1 2017 |
Q4 2016 |
Q1 2016 |
Operating
Income (Loss) before impairment and restructuring charges |
134 |
153 |
(5) |
Free cash
flow |
62 |
135 |
31 |
Net
financial position |
518 |
513 |
439 |
(1)
See Appendix for reconciliation to U.S. GAAP and
additional information explaining why the Company believes these
measures are important.
Quarterly Financial Summary By
Product Group (US$ Million)
Net Revenues By Product Group |
Q1 2017 |
Q4 2016 |
Q1 2016 |
Automotive and Discrete Group (ADG) |
708 |
716 |
671 |
Analog
and MEMS Group (AMG) |
443 |
436 |
369 |
Microcontrollers and Digital ICs Group (MDG) |
593 |
610 |
532 |
Others
(a) |
77 |
97 |
41 |
Total |
1,821 |
1,859 |
1,613 |
(a)
Net revenues of "Others" includes revenues from
sales of Imaging Product Division, Subsystems, assembly services,
and other revenue.
First Quarter Review
First quarter net revenues
decreased 2.1% sequentially; a better than seasonal performance and
30 basis points better than the midpoint of the Company's guidance.
On a sequential basis, both Analog and MEMS Group (AMG) and
Automotive and Discrete Group (ADG) performed better than the
Company average, with AMG revenues up by 1.6% and ADG down by 1.2%.
On a sequential basis, Microcontrollers and Digital ICs Group (MDG)
revenues decreased by 2.8% due to lower sales of discontinued
businesses partially offset by growth in general purpose
microcontrollers. As expected, Imaging Product Division revenues,
reported in Others, decreased sequentially reflecting
seasonality.
On a year-over-year basis, first
quarter net revenues increased by 12.9% on solid growth across all
product families. Analog and MEMS Group (AMG) revenues increased
19.9% compared to the year-ago period driven by strong growth in
MEMS and analog products. Microcontrollers and Digital ICs Group
(MDG) revenues increased year-over-year by 11.4%, or 14.6%
excluding discontinued businesses, mainly due to strong growth in
general purpose microcontrollers and growth in digital products.
Automotive and Discrete Group (ADG) revenues increased
year-over-year by 5.6% reflecting growth in automotive and strong
growth in power discrete products. Imaging Product Division
revenues in the first quarter more than doubled compared to the
year-ago quarter driven by ST's Time-of-Flight technology.
By region of shipment, Asia
Pacific, EMEA, and the Americas grew on a year-over-year basis
17.4%, 8.0%, and 5.7%, respectively.
First quarter gross profit was
$685 million and gross margin was 37.6%, 60 basis points above the
midpoint of the Company's guidance. On a sequential basis, gross
margin increased 10 basis points, above normal seasonality, mainly
benefiting from favorable product mix, improved manufacturing
efficiencies, and lower unused capacity charges partially offset by
normal beginning of year pricing changes for major customers. Gross
margin improved 420 basis points year-over-year, benefiting from
strongly improved manufacturing efficiencies, favorable product
mix, lower unused capacity charges and favorable currency effects,
net of hedging partially offset principally by normal price
pressure.
Combined R&D and SG&A
expenses in the first quarter were $568 million compared to $570
million and $571 million in the sequential and year-ago quarter,
respectively.
First quarter other income and
expenses, net, registered income of $17 million compared to $25
million and $28 million in the prior and year-ago quarter,
respectively, mainly due to lower R&D funding.
Impairment and restructuring
charges in the first quarter were $5 million compared to $24
million and $28 million in the prior and year-ago quarter,
respectively, mostly related to the set-top box restructuring plan
announced in January 2016. The Company continued to make progress
on its restructuring of the set-top box business. Exiting the first
quarter of 2017, the restructuring plan was on track and achieved a
run-rate of about $126 million of the total $170 million of
targeted annualized savings expected upon completion.
Operating income in the first
quarter of $129 million was stable in comparison to the prior
quarter and increased by $162 million on a year-over-year
basis.
First quarter operating income
before impairment and restructuring charges(1) was
$134 million, equivalent to 7.4% of net revenues, decreasing from
$153 million, or 8.2% of net revenues in the 2016 fourth quarter
mainly due to lower revenues. On a year-over-year basis, operating
income before impairment and restructuring charges(1) improved by
$139 million reflecting higher revenues, improved product
mix, manufacturing efficiencies, better fab loading and benefits
from the set-top box restructuring plan.
First quarter net income was $108
million, equivalent to $0.12 per share, compared to a net income of
$112 million, equivalent to $0.13 per share, in the prior quarter.
On a year-over-year basis, net income improved by $149 million from
the net loss of $41 million in the year-ago quarter.
Cash Flow and
Balance Sheet Highlights
Capital expenditure payments, net
of proceeds from sales, were $219 million during the first quarter
of 2017 compared to $100 million in the year-ago quarter.
Inventory was $1.20 billion at
quarter end, up 2.5% from the prior quarter. Inventory in the first
quarter of 2017 was at 3.8 turns or 95 days.
In the first quarter, the Company
paid cash dividends totaling $53 million. Today, ST's Supervisory
Board has proposed to the 2017 Annual General Meeting of
Shareholders to declare a cash dividend of US$0.24 per outstanding
share of the Company's common stock, to be distributed in quarterly
installments of $0.06 in each of the second, third and fourth
quarter of 2017 and first quarter of 2018 to shareholders of record
in the month of each quarterly payment.
ST's net financial
position(1) was $518
million at April 1, 2017 compared to $513 million at December 31,
2016. ST's financial resources equaled $1.98 billion and total debt
was $1.46 billion at April 1, 2017.
Total equity, including
non-controlling interest, was $4.77 billion at quarter end.
(1) Non-U.S. GAAP
measure. See Appendix for additional information and reconciliation
to U.S. GAAP.
Second Quarter
2017 Business Outlook
Mr. Bozotti commented, "Entering the second quarter, we continue to see healthy
demand, with strong booking trends across all our product groups
and regions.
"As a result, we
expect second quarter revenues to increase about 5.0% on a
sequential basis, representing year-over-year growth of about 12.3%
at the mid-point of our guidance range. We anticipate another
quarter of margin expansion with second quarter gross margin of
about 38.1% at the mid-point, leading to strong year-over-year
improvement in operating and net income".
The Company
expects second quarter 2017 revenues to increase about 5.0% on a
sequential basis, plus or minus 3.5 percentage points. Gross margin
in the second quarter is expected to be about 38.1% plus or minus
2.0 percentage points.
This outlook is
based on an assumed effective currency exchange rate of
approximately $1.08 = €1.00 for the 2017 second quarter and
includes the impact of existing hedging contracts. The second
quarter will close on July 1, 2017.
Q1 2017 - Product
and Technology Highlights
Automotive and
Discrete Group (ADG)
-
Started production of 32-bit Power Architecture
40nm microcontrollers for a new-generation gateway with
leading-edge processing and extended-connectivity capability for an
embedded-security hardware module for multiple customers;
-
Captured a win for 40nm 32-bit Power
Architecture-based microcontrollers for a battery-management system
with a European car maker and for a seat-belt pre-tensioner
application with a major European Tier-1;
-
Landed an award for an infotainment processor
and AM/FM tuner platform from a major Japanese Tier-1 for a Chinese
car maker;
-
Began production of latest-generation
single-chip AM/FM CMOS tuners for a Japanese Tier-1;
-
Continued to build on success with a parking
brake application specific standard product with wins from multiple
customers in all regions;
-
Earned an important award for a lithium-cell
balancing device for a battery-management system at a leading Asian
maker;
-
Maintained traction with a win for our Class AB
amplifiers in wins for aftermarket Head Units for top Japanese
Tier-1;
-
Won the Gen 2 Power Control Unit for a door zone
application at a major European Tier-1;
-
Captured the Body Control Unit for a module
being built by an American Tier-1 for a European carmaker;
-
Won sockets for high-voltage MDmesh MOSFETs for
an on-board charging application and for a low-voltage MOSFET for a
battery-management system at an important American OEM;
-
Recorded several design wins for low-voltage
power transistors for a 48V dc/dc application and fuel pumps at
important European and Asian Tier-1s;
-
Received an important award for SiC MOSFETs for
on-board chargers and dc/dc converters from a leading Asian
OEM.
-
Recorded several design wins with rectifiers,
protection devices, and automotive-grade IPAD devices for
powertrain, on-board charger, ADAS and Safety, and high-speed
data-line networks with multiple global Tier-1s;
-
Registered important design-wins for
field-effect rectifier diodes from a leading power-supply maker in
Asia for adaptors and gaming applications;
-
Continued fast expansion of RF integrated
passive device solution for RF connectivity module for the IoT
market with several large customers;
-
Earned important design wins with high-voltage
MDmesh devices and low-voltage STripFET MOSFETs from an important
customer in Asia for a gaming application.
Analog and MEMS
Group (AMG)
- Ramped production of several products inside
Samsung Galaxy S8 and S8+ flagship smartphones including 6-axis
ultra-low-power MEMS inertial measurement unit integrating
accelerometer and gyroscope, optical-image-stabilization gyroscope,
barometric sensor, touch controller, and multifunction protection
switch;
- Announced its motion sensors and touch-screen
controller IC were selected for Nintendo Switch(TM) system,
Nintendo's latest innovative gaming device;
- Continued to gain share with inertial and
environmental sensors in smartphones and wearables worldwide and
automotive car navigation systems;
- Launched a partnership with USound to produce
world's first piezo-MEMS speaker with excellent sound quality,
targeting IoT applications;
- Received recognition from Juniper Research for
SensorTile as the best wearable platform for IoT Services;
- Introduced a new ultra-low power 3-axis smart
accelerometer with many embedded smart functions that reduce
overall system power consumption;
- Captured first ever production order for a 6-axis
inertial sensor to be used in high-end industrial
applications;
- Continued strong momentum in low-power radio
solutions for IoT with BlueNRG Bluetooth® low energy
solutions as well as the SPIRIT sub-1GHz family for home and
building automation;
- Won multiple designs for a range of Analog
products for next-generation smart metering solutions;
- Captured several design wins for our STSPIN32
motion control family;
- Earned qualification from the United States
Defense Logistics Agency (DLA) for two Rad-Hard high-frequency,
high-current drivers for Space applications (RHRPM4424 &
RHRPM4423); these are the first Rad-Hard products using a
radiation-enhanced version of ST's proprietary BCD technology to
get this certification.
Microcontrollers
and Digital ICs Group (MDG)
-
Revealed its STM32 microcontrollers and NFC
controller IC were chosen for the innovative Nintendo Switch(TM)
system;
-
Introduced new STM32L4 MCUs, adding larger
memories, enhanced graphics support, extra peripherals, and
increased power-saving flexibility to the existing lines;
-
Teamed with DSP Concepts to offer STM32 users
free access to an advanced audio design tool;
-
Extended the STM32 ecosystem with the
introduction of MCU Finder for PC, a new STM32F7 Nucleo board and
Discovery kit, and new STM32 boards to evaluate low-power,
long-range IoT connectivity using LoRaWAN(TM), 6LoWPAN, and other
Low-Power Wide Area Networks;
-
Announced the availability of the new advanced
Near Field Communication ST21NFCD controller integrating the
recently acquired booster technology.
-
Launched STSAFE-A1SX plug-and-play solution to
secure devices connected to the Sigfox low-power wide-area
network;
-
Teamed with Giesecke & Devrient and FitPay
Mobile-Payment to offer a certification-ready hardware and software
solution to integrate tokenized payments from Mastercard or Visa on
wearable devices;
-
Captured a win for ST25 NFC reader at a major
car OEM;
-
Introduced ST25DV dynamic-tag ICs that support
higher speed and greater distance RFID specifications and feature
an I2C bus for smart meters, IoT devices and other industrial and
consumer products;
-
Announced new ST25 Discovery kit that
accelerates time-to-market of NFC applications in wide range of
electronic devices, including payment terminals, access control,
device identification, sensor-data collection;
-
Sampled STiD337 System-on-Chip in 28nm FD-SOI
that will power Eutelsat's SmartLNB interactive terminal;
-
Ramped production of the STiD135, the world's
first 500Mbaud High Symbol Rate (HSR) satellite demodulator chip,
for lead customer Newtec;
-
Expanded business from a global leader in
optical communication for the PSM4 optical interface product based
on silicon photonics;
-
Won multiple new designs in 55nm BiCMOS from a
major Asian customer for optical infrastructure
applications.
Imaging Product
Division (IMD)
-
Earned multiple new design-wins and continued
high-volume shipments of Time-of-Flight ranging sensors to leading
smartphone manufacturers;
-
Announced new generation of Time-of-Flight
sensor, which brings multi-object detection and multi-array
scanning to mobile applications.
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 from
other companies.
See the Appendix 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, which may impact end-market
demand for our products;
-
Customer demand that
differs from projections;
-
The ability to design,
manufacture and sell innovative products in a rapidly changing
technological environment;
-
Unanticipated events
or circumstances, which may 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;
-
Changes in economic,
social, labor, 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 conflicts, social unrest, labor actions, or terrorist
activities;
-
The Brexit vote and
the perceptions as to the impact of the withdrawal of the U.K. may
adversely affect business activity, political stability and
economic conditions in the U.K., the Eurozone, the EU and
elsewhere. While we do not have material operations in the U.K. and
have not experienced any material impact from Brexit on our
underlying business to date, we cannot predict its future
implications;
-
Financial difficulties
with any of our major distributors or significant curtailment of
purchases by key customers;
-
The loading, product
mix, and 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,
and any breaches of our IT systems or those of our customers or
suppliers;
-
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;
-
The ability to
successfully restructure underperforming business lines and
associated restructuring charges and 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;
-
Product liability or
warranty claims, claims based on epidemic or delivery failure, or
other claims relating to our products, or recalls by our
customers for products containing our parts;
-
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;
-
Availability and costs
of raw materials, utilities, third-party manufacturing services and
technology, or other supplies required by our operations;
and
-
Industry changes
resulting from vertical and horizontal consolidation among our
suppliers, competitors, and customers.
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, 2016, as filed with the SEC on March 3, 2017.
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 27, 2017, the management
of STMicroelectronics will conduct a live webcast of its conference
call to discuss the Company's operating performance for the first
quarter of 2017.
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 live webcast and
presentation materials will be available 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 12, 2017.
About
STMicroelectronics
ST is a global semiconductor leader delivering intelligent and
energy-efficient products and solutions that power the electronics
at the heart of everyday life. ST's products are found everywhere
today, and together with our customers, we are enabling smarter
driving and smarter factories, cities and homes, along with the
next generation of mobile and Internet of Things devices. By
getting more from technology to get more from life, ST stands for
life.augmented.
In 2016, the Company's net
revenues were $6.97 billion, serving more than 100,000 customers
worldwide. Further information can be found at www.st.com.
For further information, please
contact:
INVESTOR RELATIONS:
Tait
Sorensen
Group VP, Investor Relations
STMicroelectronics
Tel: +1 602 485 2064
tait.sorensen@st.com
MEDIA RELATIONS:
Nelly
Dimey
Director, Corporate Media and Public Relations
Tel: + 33 1 58 07 77 85
nelly.dimey@st.com
STMicroelectronics N.V. |
|
|
Consolidated Statements of Income |
|
|
(in millions of U.S. dollars, except per
share data ($)) |
|
|
|
|
|
|
Three Months Ended |
|
(Unaudited) |
(Unaudited) |
|
April 01, |
April 02, |
|
2017 |
2016 |
|
|
|
Net sales |
1,818 |
1,605 |
Other revenues |
3 |
8 |
NET REVENUES |
1,821 |
1,613 |
Cost of sales |
(1,136) |
(1,075) |
GROSS PROFIT |
685 |
538 |
Selling, general and administrative |
(234) |
(229) |
Research and development |
(334) |
(342) |
Other income and expenses, net |
17 |
28 |
Impairment, restructuring charges and other related closure
costs |
(5) |
(28) |
Total Operating Expenses |
(556) |
(571) |
OPERATING INCOME (LOSS) |
129 |
(33) |
Interest expense, net |
(4) |
(5) |
Income (loss) on equity-method investments |
- |
- |
INCOME (LOSS) BEFORE INCOME TAXES |
125 |
(38) |
AND NONCONTROLLING INTEREST |
|
|
Income tax expense |
(16) |
(2) |
NET INCOME (LOSS) |
109 |
(40) |
Net income attributable to noncontrolling interest |
(1) |
(1) |
NET INCOME (LOSS) ATTRIBUTABLE TO
PARENT COMPANY |
108 |
(41) |
|
|
|
EARNINGS PER SHARE (BASIC)
ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS |
0.12 |
(0.05) |
EARNINGS PER SHARE (DILUTED)
ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS |
0.12 |
(0.05) |
|
|
|
NUMBER OF WEIGHTED AVERAGE |
|
|
SHARES USED IN CALCULATING |
|
|
DILUTED EARNINGS PER SHARE |
901.9 |
878.6 |
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
April 01, |
December 31, |
April 02, |
In millions of U.S. dollars |
2017 |
2016 |
2016 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
1,641 |
1,629 |
1,697 |
Marketable securities |
335 |
335 |
343 |
Trade accounts receivable, net |
946 |
939 |
891 |
Inventories |
1,201 |
1,173 |
1,302 |
Other current assets |
351 |
311 |
468 |
Total current assets |
4,474 |
4,387 |
4,701 |
Goodwill |
117 |
116 |
79 |
Other intangible assets, net |
188 |
195 |
162 |
Property, plant and equipment, net |
2,489 |
2,287 |
2,333 |
Non-current deferred tax assets |
534 |
528 |
554 |
Long-term investments |
57 |
57 |
57 |
Other non-current assets |
467 |
434 |
492 |
|
3,852 |
3,617 |
3,677 |
Total assets |
8,326 |
8,004 |
8,378 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
685 |
117 |
173 |
Trade accounts payable |
757 |
620 |
666 |
Other payables and accrued liabilities |
777 |
750 |
692 |
Dividends payable to stockholders |
6 |
59 |
10 |
Accrued income tax |
47 |
42 |
52 |
Total current liabilities |
2,272 |
1,588 |
1,593 |
Long-term debt |
773 |
1,334 |
1,428 |
Post-employment benefit obligations |
354 |
347 |
367 |
Long-term deferred tax liabilities |
5 |
5 |
12 |
Other long-term liabilities |
150 |
134 |
161 |
|
1,282 |
1,820 |
1,968 |
Total liabilities |
3,554 |
3,408 |
3,561 |
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, 911,095,420 shares issued, 883,530,762 shares
outstanding) |
1,157 |
1,157 |
1,157 |
Capital surplus |
2,828 |
2,818 |
2,790 |
Retained earnings |
538 |
431 |
483 |
Accumulated other comprehensive income |
428 |
371 |
612 |
Treasury stock |
(241) |
(242) |
(288) |
Total parent company stockholders' equity |
4,710 |
4,535 |
4,754 |
Noncontrolling interest |
62 |
61 |
63 |
Total equity |
4,772 |
4,596 |
4,817 |
Total liabilities and equity |
8,326 |
8,004 |
8,378 |
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
|
|
|
Cash Flow Data (in US$
millions) |
Q1 2017 |
Q4 2016 |
Q1 2016 |
|
|
|
|
Net Cash from operating activities |
289 |
378 |
141 |
Net Cash used in investing activities |
(227) |
(243) |
(110) |
Net Cash used in financing activities |
(53) |
(163) |
(107) |
Net Cash increase (decrease) |
12 |
(46) |
(74) |
|
|
|
|
Selected Cash Flow Data (in US$
millions) |
Q1 2017 |
Q4 2016 |
Q1 2016 |
|
|
|
|
Depreciation & amortization |
154 |
161 |
184 |
Net payment for Capital expenditures |
(219) |
(228) |
(100) |
Dividends paid to stockholders |
(53) |
(53) |
(88) |
Change in inventories, net |
(22) |
35 |
(22) |
Appendix
STMicroelectronics
Supplemental Financial Information
|
Q1 2017 |
Q4 2016 |
Q1 2016 |
€/$ Effective Rate |
1.08 |
1.10 |
1.10 |
Net
Revenues By Market Channel(%) |
Q1 2017 |
Q4 2016 |
Q1 2016 |
Total
OEM |
66% |
67% |
67% |
Distribution |
34% |
33% |
33% |
Product
Group Data
(US$ Million) |
Q1 2017 |
Q4 2016 |
Q1 2016 |
Automotive and Discrete Group (ADG) |
|
|
|
-
Net Revenues |
708 |
716 |
671 |
-
Operating Income (Loss) |
38 |
53 |
39 |
Analog and MEMS Group (AMG) |
|
|
|
-
Net Revenues |
443 |
436 |
369 |
-
Operating Income (Loss) |
45 |
41 |
2 |
Microcontrollers and Digital ICs Group (MDG) |
|
|
|
-
Net Revenues |
593 |
610 |
532 |
-
Operating Income (Loss) |
60 |
59 |
(3) |
Others (a) |
|
|
|
- Net Revenues |
77 |
97 |
41 |
- Operating Income (Loss) |
(14) |
(24) |
(71) |
Total |
|
|
|
- Net Revenues |
1,821 |
1,859 |
1,613 |
- Operating Income (Loss) |
129 |
129 |
(33) |
(a)
Net revenues of "Others" includes revenues from
sales of Imaging Product Division, Subsystems, assembly services,
and other revenue. Operating income (loss) of
"Others" includes items such as unused capacity charges,
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 Imaging Product Division, Subsystems
and other products. "Others" includes $1 million, $4 million, and
$10 million of unused capacity charges in the first quarter of 2017
and fourth and first quarters of 2016, respectively; and $5
million, $24 million, and $28 million of impairment, restructuring
charges, and other related closure costs in the first quarter of
2017 and fourth and first quarters of 2016, respectively.
(Appendix -
continued)
STMicroelectronics
Supplemental Non-U.S. GAAP Financial
Information
U. S. GAAP - Non-U.S. GAAP
Reconciliation
In US$ Million 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 and one-time items 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
attributable to ST and other one-time items, 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
2017
(US$ million, except per share data ($)) |
Gross Profit |
Operating Income |
Net Earnings |
Corresponding EPS |
U.S. GAAP |
685 |
129 |
108 |
0.12 |
Impairment & Restructuring |
|
5 |
5 |
|
Estimated
Income Tax Effect |
|
|
(1) |
Non-U.S GAAP |
685 |
134 |
112 |
0.12 |
Q4
2016
(US$ million, except per share data ($)) |
Gross Profit |
Operating Income |
Net Earnings |
Corresponding EPS |
U.S. GAAP |
698 |
129 |
112 |
0.13 |
Impairment & Restructuring |
|
24 |
24 |
|
Estimated
Income Tax Effect |
|
|
1 |
Non-U.S GAAP |
698 |
153 |
137 |
0.15 |
Q1
2016
(US$ million, except per share data ($)) |
Gross Profit |
Operating Income (loss) |
Net Earnings
(loss) |
Corresponding EPS |
U.S. GAAP |
538 |
(33) |
(41) |
(0.05) |
Impairment & Restructuring |
|
28 |
28 |
|
Estimated
Income Tax Effect |
|
|
(3) |
Non-U.S GAAP |
538 |
(5) |
(16) |
(0.02) |
(continued)
(Appendix -
continued)
Net financial position: resources
(debt), represents the balance between our total financial
resources and our total financial debt. Our total financial
resources include cash and cash equivalents, marketable securities,
short-term deposits and restricted cash, and our total financial
debt includes short-term borrowings, current portion of long-term
debt and long-term debt, all as reported in our consolidated
balance sheet. We believe our net financial position provides
useful information for investors and management because it gives
evidence of our global position either in terms of net indebtedness
or net cash position by measuring our capital resources based on
cash, cash equivalents and marketable securities and the total
level of our financial indebtedness. Net financial position is not
a U.S. GAAP measure.
Net Financial Position (US$ million) |
April 1, 2017 |
December 31, 2016 |
April 2, 2016 |
Cash and
cash equivalents |
1,641 |
1,629 |
1,697 |
Marketable securities |
335 |
335 |
343 |
Total financial resources |
1,976 |
1,964 |
2,040 |
Short-term debt |
(685) |
(117) |
(173) |
Long-term
debt |
(773) |
(1,334) |
(1,428) |
Total financial debt |
(1,458) |
(1,451) |
(1,601) |
Net financial position |
518 |
513 |
439 |
Free cash flow is defined as net
cash from operating activities minus net cash from (used in)
investing activities, excluding payment for purchases (proceeds
from the sale of) marketable securities and short-term deposits,
restricted cash and net cash variation for joint ventures
deconsolidation. We believe free cash flow provides useful
information for investors and management because it measures our
capacity to generate cash from our operating and investing
activities to sustain our operating activities. Free cash flow is
not a U.S. GAAP measure and does not represent total cash flow
since it does not include the cash flows generated by or used in
financing activities. In addition, our definition of free cash flow
may differ from definitions used by other companies.
Free cash flow (US$ million) |
Q1 2017 |
Q4 2016 |
Q1 2016 |
Net cash
from operating activities |
289 |
378 |
141 |
Net cash
used in investing activities |
(227) |
(243) |
(110) |
Payment
for purchase and proceeds from sale of marketable securities,
investment in short-term deposits, restricted cash and net cash
variation for joint ventures deconsolidation |
- |
- |
- |
Free cash flow |
62 |
135 |
31 |
--end---
ST Q1 2017
results_27april2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: STMicroelectronics via Globenewswire
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