ST reports 2010 Q4 and full year financial results

INDIA: STMicroelectronics has reported financial results for the fourth quarter and full year ended December 31, 2010.

President and CEO Carlo Bozotti commented: "ST had a very strong finish to the year. Our fourth quarter revenues came in near the top end of our range, increasing 6.6 percent sequentially on broad-based strength in analog, MEMS, microcontrollers and automotive applications. Our gross margin further increased to 39.9 percent, up 70 basis points sequentially, coming in above the midpoint of our guidance.

"ACCI and IMS again achieved record sales this quarter, accompanied by further improvements at the operating profit level, with ACCI operating margin increasing to 11.9 percent and IMS rising to 22.5 percent. In wireless, while operating losses remain very significant, ST-Ericsson has completed its restructuring and is now well on its way to complete the transition to its new product portfolio.

"Overall, ST's strong sales results, driven by our innovative product portfolio combined with our restructuring efforts, enabled ST to generate net earnings of $830 million for the year.

"In 2010, we were well prepared to take advantage of significantly better industry conditions with the right portfolio and we have started to turn our vision of leadership in 'Sense and Power' applications and in multimedia convergence into reality. In the last eight quarters, ST went through the most severe economic recession in 2009 and successfully capitalized on the 2010 market recovery. Throughout this timeframe we remained focused on our growth and profitability objectives. Today, our innovative products, which have leadership positions in highly successful applications, customer base and solid capital structure, make us a much stronger company."