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Press Release

STMicroelectronics : son joint-venture ST-Ericsson annonce ses résultats financiers du 2ème trimestre 2012

Genève /

STMicroelectronics (NYSE : STM), annonce aujourd’hui que ST-Ericsson, un joint-venture entre STMicroelectronics et Ericsson, a publié aujourd’hui ses résultats financiers du deuxième trimestre 2012, échu le 30 juin 2012. Le texte intégral de son communiqué de presse est annexé ci-dessous et est aussi disponible sur : http://www.stericsson.com/press_releases/Q22012.jsp

À propos de STMicroelectronics
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En 2011, ST a réalisé un chiffre d'affaires net de 9,73 milliards de dollars. Des informations complémentaires sont disponibles sur le site : www.st.com

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ST-ERICSSON

 

 

 

ST-Ericsson reports second quarter 2012 financial results

  • Net sales $344 million; 19 percent sequential increase
  • Adjusted operating loss1) $235 million; $62 million improvement over prior quarter
  • Transfer of application processor development organization finalized on July 1

Geneva, Switzerland, July 17, 2012 - ST-Ericsson, a jointventure of STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC), reported financial results for the second fiscal quarter ending June 30, 2012.

Sales in the second quarter increased 19 percent over the prior quarter reflecting a significant ramp of volumes of NovaThor™ platforms shipping to our major customers. Adjusted operating loss decreased sequentially by $62 million to $235 million, as the result of volume and margin improvements due to new platforms and the first steps of the ongoing actions to reduce operating expenses.
 
Didier Lamouche, President and CEO of ST-Ericsson said: “This has been a quarter of progress across the board. We ramped our NovaThor ModAp platform with Samsung and Sony Mobile Communications and also added several new Chinese key players. We are executing in a timely manner our new strategic plan to reposition our whole business model and we finalized on July 1, as anticipated, the transfer of the application processors development team to STMicroelectronics to build a world class partnership.

We are advancing towards our objective to reduce our breakeven point and to reach sustainable profitability. During the quarter, all profit and loss metrics showed a sequential improvement: from revenue growth to gross margin expansion and from expense reduction to the decrease of our operating loss. While these indicators are encouraging, we recognize that further improvements in the execution of our critical programs are needed. Moreover, we operate in a very dynamic, fast-changing market and a highly competitive environment. In this context our primary focus is on delivering improvements of operating results and cash flow.”

2012 second quarter financial summary (unaudited)

$ million
Q2 2012
Q1 2012
Q2 2011
Income Statement
 
 
 
NET SALES
344
290
385
OPERATING INCOME/(LOSS) ADJUSTED 1) for:
(235)
(297)
(181)
- amortization of acquisition-related intangibles
(19)
(19)
(25)
- restructuring charges
(56)
(10)
(15)
OPERATING INCOME / (LOSS) as reported
(309)
(326)
(222)
NET INCOME / (LOSS)
(318)
(312)
(221)

  

$ million
Q21 2012
Q1 2012
Q2 2011
Additional financial data
Net financial position²)
  
 
Cash, cash equivalents & short-term deposits/debt, net
33
22
18
Parent companies short-term debt
(1238)
(978)
(445)
Net financial position
(1205)
(956)
(427)
Net operating cash flow 3)
(249)
(159)
(233)

Additional financial information
The net financial position2) at the end of the second quarter was negative $1205 million.
Inventory decreased by $38 million reaching $171 million at the end of the second quarter.

Outlook
Given, on one hand, the very substantial revenue growth during the second quarter and, on the other hand, the macro-economic and industry environment, ST-Ericsson expects net sales to be approximately flat sequentially for the third quarter 2012.

Highlights - products, technology and wins announced in the second quarter 2012

  • Customers
    • Samsung continues to incorporate the ST-Ericsson NovaThor ModAp platforms into their award-winning Samsung GALAXY smartphone line with the announcement of the Samsung GALAXY Beam and Samsung GALAXY Ace 2.
    • China Unicom and Yulong are now customers of the NovaThor platform. The NovaThor U8500 ModAp platform powers the new Coolpad Cheer CP7728.
    • The Xperia™ go smartphone became the fourth phone this year from Sony Mobile Communications to leverage the ST-Ericsson NovaThor platform.
    • The Shanda Bambook smartphone – the first from the China-based company – is powered by the ST-Ericsson NovaThor U8500 ModAp solution. It is the first of several smartphones planned by Shanda to use the ST-Ericsson NovaThor platform. 
    • Two new Panasonic ELUGA devices for the Japanese market are powered by the compact yet power efficient Thor M5780 thin modem.
    • A new Sharp AQUOS smartphone is based on the power efficient ST-Ericsson Thor M5730 and available now in Japan.
  • Partners/technology
    • STMicroelectronics secured additional sourcing for 28nm and 20nm FD-SOI Technology with GLOBALFOUNDRIES. ST-Ericsson selected ST FD-SOI technology for use in its future mobile platforms, which will enable enhanced performance from the ST-Ericsson NovaThor platform with much less battery usage.

Financial results appendix (unaudited)
Consolidated Balance sheet  

 

In $ million
June 30,
2012
December 31,
2011
ASSETS
 
 
Current assets:
 
 
Cash and cash equivalents
33
9
Trade accounts receivable, net
50
97
Inventories, net
171
223
Deferred tax assets
10
8
Other receivables and assets
113
102
Total current assets
377
439
 
 
 
 
 
 
Goodwill
742
745
Other intangible assets, net
378
437
Property, plant and equipment, net
316
364
Long-term deferred tax assets
218
188
Other investments and other non-current assets
26
70
 
1,681
1,804
Total assets
2,058
2,243
   
LIABILITIES AND SHAREHOLDERS' EQUITY  
Current liabilities:  
  
Short-term borrowings and current portion of long-term debt
1,238
807
Trade accounts payable
176
175
Other payables and accrued liabilities
296
292
Deferred tax liabilities
0
0
Accrued income tax
7
8
Total current liabilities
1,718
1,282
   
Reserve for pension and termination indemnities
94
87
Long-term deferred tax liabilities
4
3
Other non-current liabilities
25
25
 
123
115
Total liabilities
1,841
1,397
Total equity
217
846
Total liabilities and equity
2,058
2,243

 

 Footnotes 

1) The adjusted operating income/(loss) is defined as the operating income/(loss) reported before amortization of acquisition-related intangibles and restructuring charges and is used by management to help enhance the understanding of ongoing operations and to communicate the impact of the items on the operating loss as reported.
2) Net financial position represents the balance between financial assets, which comprise cash, cash equivalents and short-term deposits, and financial debt which includes bank overdrafts and parent companies short-term bridge credit facilities.
3) Net operating cash flow is defined as net cash from operating activities, less capital expenditure and less restructuring charges.

 
Notes to editors
ST-Ericsson invites journalists, analysts and investors to a conference call scheduled on July 18 at 12:00 pm (CET). Call-in numbers, a live webcast of the conference call, as well as supporting slides, will be available at www.stericsson.com/investors/investors.jsp.

About ST-Ericsson
ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies. The company is a leading supplier to the top handset manufacturers and generated sales of $1.7 billion in 2011. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters in Geneva, Switzerland.
www.stericsson.com
www.twitter.com/STEricssonForum

 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:


Global Communications & Media Relations
Claudia Levo, Geneva, Switzerland

Investor & Analyst Relations
Fabrizio Rossini, Geneva, Switzerland
Phone: +41 22 929 6973
Email: investor.relations@stericsson.com

Pamela McCracken, Santa Clara, U.S.A.
Phone: +1 408 919 8743
Email: media.relations@stericsson.com

 

Ericsson Investor Relations
Åsa Konnbjer, Stockholm, Sweden
Phone: +46 10 713 3928
E-mail: investor.relations@ericsson.com

STMicroelectronics Investor Relations
Tait Sorensen, Phoenix AZ, US
Phone: +1 602 485 2064
Celine Berthier, Geneva, Switzerland
Phone: +41 22 929 5812
Email: investors@st.com

 

 

 

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The ST-Ericsson results reported in this press release do not reflect in their entirety the results of the Wireless Segment of STMicroelectronics, which include other activities that are not part of ST-Ericsson.
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This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For a detailed description of risk factors see STMicroelectronics’ (NYSE:STM) and Ericsson's (NASDAQ:ERIC) filings with the US Securities and Exchange Commission, particularly each company's latest published Annual Report on Form 20-F.

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