- 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 STMicroelectronicsST 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) |
AppendixSTMicroelectronicsSupplemental 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 $28 million of impairment, restructuring
charges, and other related closure costs in the first quarter of
2017 and fourth and first quarters of 2016, respectively.
(Appendix - continued)
STMicroelectronicsSupplemental Non-U.S.
GAAP Financial InformationU. S. GAAP - Non-U.S. GAAP
ReconciliationIn US$ 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---
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