ST reports Q1-10 financial results

INDIA: STMicroelectronics reported financial results for the 2010 first quarter ended March 27, 2010.

In a year-over-year comparison, net revenues increased 40.1 percent and were led by the Company’s IMS and ACCI product segments with 60 percent and 47 percent growth, respectively. All regions and market segments posted double-digit revenues growth. Delivering the strongest regional results were Greater China-South Asia and America with revenues rising 60 percent and 49 percent, respectively.

President and CEO Carlo Bozotti commented: “Our first quarter revenues, well in-line with our expectations, reflected the significant rebound from the economic crisis and solid demand for our products. Although supply chain constraints somewhat limited our revenues opportunities, we fully participated in the market recovery with our new and innovative products.

“The Company’s Automotive and Computer market segments posted impressive results and were up sharply with 61% and 59% growth, respectively. Sequentially, Consumer, Industrial and Automotive were the best performers.

“Mainly driven by high fab loading, our first quarter gross margin increased 1,140 basis points year-over-year to 37.7 percent, and expanded 70 basis points sequentially in contrast to a historical seasonal decrease.

“Last year we focused on important strategic actions to reshape our product portfolio and improve the efficiency of our operations. As a result, we are very happy to have returned the Company to profitability in the first quarter of 2010. We achieved net income of $57 million or 6 cents per share on a diluted basis, despite first quarter revenues 20 percent lower than the “peak” of the Company and the losses incurred by ST-Ericsson, which is focused on achieving a competitive cost structure and is progressively introducing an impressive wave of new platforms.

“The Company’s performance continues to improve quarter after quarter. Our first quarter financial results demonstrate the additional progress we have made to achieve sustainable profitability as our manufacturing machine is now loaded and ramping up, our gross margin is improving and we have positive earnings dynamics and strong cash flow.”