STMicroelectronics Reports First Quarter Financial Results

Servotech Sees Revenue Growth of 115.2% in Q2 FY24 Against Q2 FY23

The company reported first-quarter net revenues of $2.08 billion, gross margin of 39.4%, operating margin of 10.2%, and net income of $178 million or $0.20 diluted earnings per share.

STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, has reported its financial results for the first quarter ended March 30, 2019.

The company reported first-quarter net revenues of $2.08 billion, gross margin of 39.4%, operating margin of 10.2%, and net income of $178 million or $0.20 diluted earnings per share.

Jean-Marc Chery, STMicroelectronics President & CEO, commented, “In the first quarter of 2019, revenues and gross margin performed as anticipated, amid softened market dynamics. We maintained a solid level of profitability, with an operating margin above 10% and net income of $178 million.

“Looking at the second quarter, we plan to return to sequential revenue growth. Our second quarter outlook, at the mid-point, is for net revenues to increase by about 2.4%; gross margin is expected to be about 38.5%. For the full year 2019, we expect net revenues to be in the range of about $9.45 to $9.85 billion. We, therefore, plan for strong sequential growth in the second half of the year compared with the first half, across the Industrial, Automotive and Personal Electronics end markets. Our revenue expectation is taking into account engaged customer programs, new product introductions, and assumes improving market conditions.”

Net revenues totalled $2.08 billion, representing a year-over-year decrease of 6.7%. On a year-over-year basis, the Company recorded lower sales of Microcontrollers/Memories, Analog and Imaging, partially offset by growth in Power Discrete, Automotive, Digital and MEMS. Year-over-year sales to OEMs and Distribution decreased by 2.4% and 13.9%, respectively. On a sequential basis, net revenues decreased 21.6%, 90 basis points lower than the mid-point of the Company’s guidance. All product group revenues declined on a sequential basis.

“We are moderating our investment plans, with our 2019 CAPEX plan now $1.1 – $1.2 billion, from $1.2 – $1.3 billion initially. Our objectives in 2019 are to outperform our served market and to deliver sustainable profitability,” Chery added.

Gross profit totalled $818 million, representing a year-over-year decrease of 7.9%. Gross margin of 39.4% decreased 50 basis points year-over-year, mainly impacted by sales price pressure including the currency effect on the top line partially offset by improved product mix and manufacturing efficiency.