Alexa
  • Directory of Taiwan

ST reports 1st quarter revenues

ST reports 1st quarter revenues

* Revenues of $2.28 billion, down 3.7% year-over-year, and 8.4% sequentially; gross margin of 34.5%
* Net operating cash flow was $172 million in the quarter
Geneva - STMicroelectronics reported financial results for the first quarter ended March 31, 2007.
Revenues and Gross Profit
Net revenues for the first quarter were $2,276 million, decreasing 3.7% compared to the $2,364 million reported in last year's first quarter, and reflecting a double-digit decrease in the telecom market segment. Flash memory revenues declined 21.6% while all other product sales were flat year-over-year. Sequentially, net revenues decreased 8.4% from the $2,483 million reported in the prior quarter, largely reflecting lower telecom and consumer sales. Flash memory revenues decreased 13.4% sequentially with all other product sales decreasing 7.6%. Year-over-year and sequential growth in automotive, as well as year-over-year growth in the industrial segment were more than offset by declines in other market segments.
Gross profit was $785 million for the 2007 first quarter down from the $837 million in last year's first quarter. The gross margin was 34.5% in the 2007 first quarter. On a sequential basis, gross profit and gross margin decreased from the fourth quarter levels of $901 million and 36.3%.
President and CEO Carlo Bozotti commented, "The trough of the multi-quarter industry correction currently underway appears to be somewhat deeper than we or industry analysts had anticipated. Our first quarter sales and operating results were negatively impacted by declines in the wireless and consumer segments, in particular, as well as a tougher overall price environment and an unfavorable product mix within wireless. As we manage through this period of correction, factory loadings have adversely affected gross margin."
Operating Expenses
Total R&D and SG&A expenses were $696 million in the first quarter, representing a sequential quarterly decrease of 2%. R&D expenses increased 1% to $435 million in the 2007 first quarter versus the $430 million in the prior quarter. SG&A expenses declined to $261 million for the 2007 first quarter compared to $281 million in the prior quarter. Combined selling, general & administrative and research & development expenses represented 30.6% of net revenues in the first quarter, compared to 28.6% in the prior quarter.
Operating Profit
For the 2007 first quarter, the Company reported operating income of $62 million and an operating margin of 2.7% (3.2% excluding restructuring and impairment charges). In the prior quarter, the Company reported operating income of $173 million and an operating margin of 7.0% (7.4% excluding restructuring and impairment charges). In the year-ago quarter, the Company reported operating income of $140 million and an operating margin of 5.9% (6.5% excluding restructuring and impairment charges).
Net Income and Earnings per Share
For the 2007 first quarter, net income totaled $74 million, or $0.08 per diluted share, compared to the prior quarter net income of $276 million or $0.30 per diluted share, and the year-ago quarter where net income totaled $132 million or $0.14 per share. Net results included $12 million of impairment, restructuring charges, and other related closure costs during the 2007 first quarter, representing an after-tax impact of approximately $0.01 per share. In the prior quarter, restructuring-related expenses were $10 million ($0.01 per share impact) and $13 million ($0.01 per share impact) in the year-ago quarter.
In the first quarter of 2007, the effective average exchange rate for the Company was approximately $1.29 to €1.00, compared to $1.28 to €1.00 in the fourth quarter of 2006 and $1.20 to €1.00 in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
Net cash from operating activities was $476 million in the first quarter. Capital expenditures were $285 million in the 2007 first quarter compared to $386 million in the prior quarter. Net operating cash flow* was $172 million for the first quarter, compared to $187 million in the year-ago quarter, and $157 million in the prior quarter.
At March 31, 2007, ST's cash and cash equivalents, marketable securities, short-term deposits and restricted cash equaled $3.0 billion. Total debt was $2.1 billion. ST's net financial position** was $917 million at the end of the first quarter. Shareholders' equity was $9.9 billion. The Company noted that inventory increased approximately $20 million sequentially, net of currency effects.


Updated : 2021-05-06 15:55 GMT+08:00