STMicroelectronics achieves $2.01-Billion Net Income in Q1 Results

STMicroelectronics has declared its financial results for the first quarter ending March 31, 2013.

The report reveals that the company has achieved net revenues of total $2.01 billion and gross margin of 31.3% in the first quarter. The net loss attributable to ST was $171 million which mainly included the 50% owned by Ericsson in the ST-Ericsson joint venture, as consolidated by ST.

Carlo Bozotti, President & CEO, STMicroelectronics, said, "The first quarter sales and gross margin results were in line with the mid-point of our guidance. Importantly, excluding ST-Ericsson, our businesses delivered revenues better than normal seasonality despite the ongoing soft macro-economic environment, due to the strong performance of Microcontrollers, Power and Smart Power for industrial and automotive. We also achieved key design wins with the leading customers for 28nm FD-SOI technology products and home-gateway applications."

He added, "We continued to maintain a strong net financial position in the quarter, while using some of our available cash to repay at maturity our outstanding 2013 Senior bonds. We have signed an agreement with Ericsson to split up the ST-Ericsson joint venture. We have also begun to advance towards our first quarter 2014 net operating expense goal, significantly reducing operating costs in the quarter."

Overall, net revenues decreased 0.4% and 7.1% on a year-over-year and sequential basis, respectively. The first-quarter gross profit was $628 million and gross margin was 31.3%. On a year-over-year basis, gross profit increased 5.4% and gross margin improved 170 basis points. R&D expenses were $533 million and declined by 16% on a y-o-y basis period.