ST reports Q2 and H1-10 financial results

GENEVA, SWITZERLAND: STMicroelectronics reported financial results for the second quarter and first half ended June 26, 2010.

Second quarter net revenues increased 27 percent on a year-over-year basis, with all regions and market segments, excluding Telecom, posting double-digit revenue growth. Regional growth was led by the Americas with sales growth of 45 percent, followed by Greater China-South Asia with a 39 percent increase in net revenues.

President and CEO Carlo Bozotti commented: "ST posted another quarter of improvement in the Company's financial performance, with revenues, gross margin, operating and net income all showing progressive strengthening sequentially and year-over-year.

"We were particularly pleased with demand for both IMS and ACCI. In combination, IMS and ACCI delivered sales growth of 51 percent year-over-year and 16 percent sequentially. Obviously, we are not satisfied with the results in wireless. However, we are encouraged by ST-Ericsson's progress in achieving key design-wins as well as restructuring, towards a progressive recovery.

"Gross margin increased 60 basis points sequentially to 38.3 percent due to manufacturing efficiencies and product innovation. This improvement comes on top of the first quarter sequential increase of 70 basis points.

"Net income of $356 million reflected the gain on the sale of Numonyx to Micron as well as the improving profitability of our core businesses. As our results demonstrate, we are well positioned to achieve our financial targets as evidenced by the 7.7 percent adjusted operating margin attributable to ST in the second quarter.

"Thanks to our consistent focus on cash generation, we have further strengthened our net financial position to over $700 million compared to $420 million at the end of 2009."