Earnings Release • Oct 28, 2008
Earnings Release
Open in ViewerOpens in native device viewer
-- Third quarter net revenues increased 2.7% sequentially and 10.9% yearover-year to \$2.46 billion excluding NXP Wireless and Flash Memory Group (FMG)
GENEVA, Oct. 28 -- STMicroelectronics (NYSE: STM) reported financial results for the 2008 third quarter and nine months ended September 27, 2008.
ST completed the deconsolidation of its FMG segment and took an equity interest in Numonyx on March 30, 2008, with an anticipated one quarter lag in reporting.
ST-NXP Wireless, a joint venture owned 80% by ST, began operations on August 2, 2008 and is fully consolidated into ST's operating results. The third quarter 2008 financial review includes the ST-NXP Wireless joint venture except where noted.
The third quarter 2008 reported financial statements include several nonrecurring items in connection with the above transactions. In addition, some of the actual results are reported at constant business perimeter for comparability purposes to prior quarter and to Q3 2008 guidance. For this purpose, this press release includes below certain adjustments to reported numbers. Please refer to the reported results (Revenues of \$2,696 million and Net Loss of \$289 million) in the enclosed Financial Statements and described in detail on pages 3 and 4 of this press release.
| In Million US\$ and % | Q3 2008 | Q2 2008 | Q3 2007 ex FMG |
|---|---|---|---|
| -------------------- Net Revenues |
------- 2,455 |
------- 2,391 |
-------------- 2,213 |
| Gross Profit | 913 | 880 | 865 |
| Gross Margin | 37.2% | 36.8% | 39.1% |
| Effective Exchange Rate \$/euro (a) |
1.54 | 1.55 | 1.36 |
(a) The Company's effective exchange rate reflects actual exchange rate levels combined with the impact of hedging programs.
ST's net revenues for the third quarter increased 2.7% sequentially driven by high single-digit growth in Computer and Telecom but mitigated by a high single-digit decrease in Automotive reflecting the significant downturn in the automotive industry as a whole. On a year-over-year basis, ST's net revenues grew 10.9% before including revenue from NXP Wireless, led by 16% and 19% gains in Telecom and Industrial, respectively, and was well-supported by mid- to high single digit growth in Computer and Consumer.
Gross margin in the third quarter of 2008, before the positive effect of the wireless addition and the adverse impact of purchase accounting adjustments, improved to 37.2% from 36.8% in the prior quarter with minimal currency effect. The quarter-to-quarter gross margin improvement was due to an enhanced product mix and manufacturing efficiencies. In the third quarter of 2007, gross margin was 35.2%, or 39.1% excluding FMG. The Company estimates that year-over-year currency changes negatively impacted the Q3 2008 gross margin of 37.2% by approximately 250 basis points.
| In Million US\$ and % ------------------ |
Q3 2008 ------- |
Q2 2008 ------- |
Q3 2007 ex FMG -------------- |
|---|---|---|---|
| Net Revenues | 2,696 | 2,391 | 2,213 |
| Gross Profit (a) | 1,016 | 880 | 865 |
| Gross Margin(a) | 37.7% | 36.8% | 39.1% |
| Effective Exchange Rate \$/euro |
1.54 | 1.55 | 1.36 |
(a) Third quarter 2008 excludes the one-time, non-cash \$57 million purchase accounting adjustment related to the inventory step-up of the former NXP Wireless business.
President and CEO Carlo Bozotti commented, "The third quarter reflected continued focus on both our operating and strategic initiatives. From a financial perspective, our third quarter performance demonstrated further progress in strengthening our market position, building on the results of the first half of this year. Before including the additional revenue from the recently created ST-NXP Wireless joint venture, net revenues increased 12.4% year-to-date.
"We are gaining share overall, in particular in our areas of focus: multimedia convergence applications and power solutions. Indeed, we continued to harvest the benefits of our sales expansion initiatives and we increased our sales to new target key accounts by 16.0% on a sequential basis.
"We continue to build scale in the critical area of wireless applications with our joint announcement in August with Ericsson to form a joint venture composed of Ericsson Mobile Platforms and ST-NXP Wireless. We believe this new leader will have the industry's strongest product offering in semiconductors and platforms for mobile applications and will be well positioned to continue and extend customer relationships with the most innovative players in the wireless industry."
| In Million US\$ and % | Q3 2008 | Q2 2008 | Q3 2007 |
|---|---|---|---|
| -------------------- | ------- | ------- | ------- |
| Net Revenues | 2,696 | 2,391 | 2,565 |
|---|---|---|---|
| Gross Profit | 959 | 880 | 902 |
| Gross Margin | 35.6% | 36.8% | 35.2% |
Reported earnings in the third quarter of 2008 also included some specific pre-tax quarter-related accounting factors, namely:
Q3 2008 SG&A expenses totaled \$297 million, or 11.0% of net revenues, compared to 11.8% of net revenues in the prior quarter. The SG&A-to-sales ratio increased slightly from the 10.6% of the year ago quarter, reflecting about 100 basis points of estimated negative currency impact. R&D expenses in the third quarter 2008 totaled \$602 million, including the one-time, non-cash \$76 million charge for in-process R&D. Excluding the impact of this incremental expense, the R&D-to-sales ratio at 19.5% was essentially flat with the prior quarter. The ratio increased from 17.2% in the year ago quarter including an estimated negative currency impact of about 120 basis points.
Including restructuring, impairment and non-recurring purchase accounting effects, reported operating income was \$55 million. Excluding these effects, the Q3 2008 operating margin improved from 6.7% in the prior quarter to 7.8%. The Company reported a net loss of \$289 million or \$0.32 per diluted share.
The table below illustrates the negative impact on our operating income, net earnings and earnings per share of certain exceptional one-time items incurred in Q3 2008.
| In US\$M except EPS | Operating Income |
Net Earnings(a) |
Diluted EPS(a) |
|---|---|---|---|
| ------------------ | --------- | ----------- | ------- |
| Q3 2008 as reported | 55 | \$(289) | \$(0.32) |
| NXP Wireless |
| Purchase Accounting Adjustments(a) |
(133) | (99) | \$(0.11) |
|---|---|---|---|
| Numonyx Impairment / Loss(a) |
0 | (344) | \$(0.39) |
| Restructuring, Impairments, One-time & Other-than-temporary |
|||
| charges(a) | (22) | (24) | \$(0.02) |
| Q3 2008 ST Business Operations(b) Margin (as a % of |
\$210 | \$178 | \$0.19 |
| Sales) | 7.8% |
Net cash from operating activities was \$414 million in the 2008 third quarter. Net operating cash flow* was (\$1.38) billion or \$140 million, excluding \$1.52 billion paid for M&A transactions, compared to \$255 million in the year-ago quarter. For the first nine months, net cash from operating activities was \$1.33 billion and net operating cash flow was \$487 million, excluding the \$1.69 billion paid for M&A transactions.
Capital expenditures were \$247 million during the third quarter of 2008, compared to \$272 million in the prior quarter and \$228 million in the year-ago quarter. For the 2008 first nine months, capital expenditures were \$777 million, or 10.3% of net sales, compared to \$735 million or 10.1% of net sales in the first nine months of 2007. The Company reconfirms its goal to be at a capex-to-sales ratio of about 10% for the full year 2008.
In the 2008 third quarter, ST repurchased \$148 million of common stock under the most recently approved plan, as well as paid \$80 million in dividends. For the fourth quarter 2008 the global ex-dividend date will be November 24, 2008 and the dividend of \$0.09 is planned to be paid on or after this date, in accordance with the schedule previously announced on April 2, 2008.
Inventory was \$1.79 billion at quarter end including wireless inventory acquired from NXP. Excluding the NXP Wireless inventory and reflecting favorable currency translation, inventory decreased sequentially by \$29 million, with inventory turns accelerating from 3.8 to 4.0.
At September 27, 2008, ST's cash and cash equivalents, marketable securities (current and non-current), short-term deposits and restricted cash equaled \$2.14 billion. Total debt was \$2.55 billion. ST's net financial position** was a net debt of \$409 million. Shareholders' equity was \$8.77 billion.
*Net operating cash flow is a non-US GAAP metric, which the Company's management utilizes as a measure of cash-generation capability. It is defined as net cash from operating activities (\$414 million in the third quarter of 2008) minus net cash used in investing activities (-\$1,664 million in the third quarter of 2008) excluding payments for purchase of and proceeds from the sale of marketable securities (\$127 million in the third quarter of 2008), proceeds from matured short-term deposits and restricted cash.
**Net financial position is a non-US GAAP metric used by the Company's management to help assess financial flexibility. It is defined as cash and cash equivalents, marketable securities (current and non-current), shortterm deposits and restricted cash (\$2,141 million) minus total debt (current portion of long-term debt \$63 million plus long-term debt \$2,487 million).
"Thanks to our systematic ability to generate operating cash flow and our solid capital structure we have been able to advance our strategic initiatives independent of the uncertainties in the financial markets. During 2008 these strengths have enabled ST to complete the deconsolidation of Numonyx, fund \$1.7 billion of acquisitions, maintain a solid credit rating, pay increased cash dividends and initiate a share buyback program, all while increasing our return on invested capital" said Mr. Bozotti.
The following table estimates, within a variance of 5% to 10% in the absolute dollar amount, the relative weighting of each of the Company's target market segments for the 2008 third quarter. For comparison purposes, the table incorporates the effect of the former NXP Wireless business since August 2, 2008.
| As % of Net Revenues Market Segment |
Q3 2008 ST excluding NXP Wireless |
Q3 2008 ST including NXP Wireless |
|---|---|---|
| Automotive | 15% | 13% |
| Consumer | 17% | 16% |
| Computer | 17% | 15% |
| Telecom | 34% | 40% |
| Industrial & Other | 17% | 16% |
In comparison to the year-ago quarter, all market segments posted growth, led by Telecom which increased 16% (50% including NXP Wireless), Industrial which increased 19%, followed by Consumer, Computer and Automotive, which increased approximately 8%, 5% and 1%, respectively.
Sequentially, performance was led by Telecom which increased 8% (39% including NXP Wireless) and Computer by 8%. Consumer was up 2%, while Industrial and Automotive declined by 1% and 8%, respectively, from the prior quarter.
Starting August 2, 2008, following the addition of the wireless business from NXP, the Company introduced a new product segment to report the sales and operating results of the newly created "Wireless Product Sector," which includes ST's wireless business for the full quarter and the results of the joint venture created with NXP since August 2, 2008. The results of ST's wireless business were previously included in the Application Specific Groups (ASG) segment, which has been revised to reflect the change. The newly created ACCI (Automotive, Consumer, Computer and Telecom Infrastructure) Product Groups segment includes the former ASG segment less the ST wireless business contributed to the ST-NXP Wireless joint venture.
The following table provides a breakdown of revenues and operating income by product segment.
| In Million US\$ and % | Q3 2008 | |||
|---|---|---|---|---|
| Product Segment | Net Revenues |
% of Net Revenues |
Operating income (loss) |
|
| ACCI (Auto/Cons./Comp./Telecom Infra. Product Groups) (a) IMS (Industrial and Multisegment Product |
\$1,085 | 40.2% | \$58 | |
| Sector) | 901 | 33.4 | 152 | |
| WPS (Wireless Product | ||||
| Sector) | 696 | 25.9 | 22 | |
| Others (b) (c) | 14 | 0.5 | (177) | |
| TOTAL | \$2,696 | 100% | \$55 |
(a) ACCI is the former ASG (Application Specific Groups) less the ST wireless business contributed to the ST-NXP joint venture.
expenses, patent claims and litigations, and the other costs that are not allocated to product groups, as well as operating earnings or losses of the Subsystems and Other Products Group. The third quarter 2008 "Others" include a \$133 million charge due to purchase accounting items and \$22 million of impairment and restructuring charges.
Automotive, Consumer, Computer and Telecom Infrastructure Product Groups' (ACCI's) third quarter 2008 net revenues declined 1.4% sequentially reflecting a decrease in Automotive due to tough automotive market conditions while Consumer and Computer both increased sequentially. ACCI grew 9.6% year-over-year to \$1,085 million on strong growth of both automotive and digital consumer products. ACCI's operating profit improved sequentially largely due to mix improvement, while declining on a yearover-year basis driven by a combination of factors including negative currency effects and increased R&D efforts.
Third quarter 2008 Industrial and Multisegment Product Sector (IMS) net revenues of \$901 million grew 4.2% sequentially and 12.0% year-over-year led by MEMS, IPAD, Smartcards and Microcontrollers for both comparisons. Q3 2008 IMS sales were composed of \$574 million of ICs which grew 8% sequentially and 21% year-over-year and \$326 million of discrete products which decreased 2% sequentially and 1% year-over-year. IMS operating profit was \$152 million, improving both sequentially and year-over-year, reflecting improved volume, mix -- notably driven by product innovation focused on Advanced Analog and ICs -- and efficiency, which more than offset currency impacts.
Wireless Product Sector (WPS) net revenues in the third quarter of 2008 were \$696 million. Excluding the NXP Wireless business contribution, wireless sales increased 10.8% sequentially and 12.5% in comparison to the year-ago quarter, reflecting improvements in product mix and an expanded customer base. WPS' Q3 2008 operating profit was \$22 million, lower than the prior year but sequentially improving, despite challenging market conditions.
The following income statement for the first nine months of 2008 incorporates the former NXP Wireless business since August 2, 2008 and FMG for the first three months of 2008 and the first nine months of 2007.
Net Revenues
| (In Million US\$ and %) | First Nine | First Nine Months 2008 Months 2007 |
Year-over-Year Growth |
|---|---|---|---|
| ST as reported | \$7,566 | \$7,258 | 4.2% |
| ST ex FMG and NXP Wireless |
\$7,026 | \$6,252 | 12.4% |
Net revenues for the first nine months were \$7,566 million compared to 2007 first nine months revenues of \$7,258 million, as reported. Excluding FMG and NXP Wireless, net revenues grew 12.4% in the similar period. Gross margin, excluding the inventory step-up from the addition of NXP Wireless increased to 36.9% of net revenues, compared to 34.9% of net revenues for the 2007 first nine months. Excluding FMG and NXP Wireless, gross margin for the similar period decreased from 38.0% to 37.2% reflecting an estimated negative currency impact of 250 basis points. Operating loss, as reported, was \$59 million, compared to operating loss of \$529 million in last year's first nine months. Net loss was \$421 million, or \$-0.47 per share, compared to a net loss of \$496 million, or \$-0.55 per share for the 2007 first nine months. Net loss included pre-tax restructuring and impairment charges, in-process R&D costs, other-than-temporary impairment charge on financial assets and the impairment related to the Numonyx equity investment of \$869 million (\$0.97 per diluted share impact) and \$949 million (\$1.05 per diluted share impact) for the 2008 and 2007 first nine months results, respectively.
Research and development expenses were \$1,581 million, including \$97 million of in-process R&D charges, associated with the acquisition of Genesis Microchip and the addition of NXP Wireless, compared to \$1,322 million in the 2007 first nine months. Selling, general, and administrative expenses were \$882 million compared to \$803 million in the 2007 first nine months, increasing primarily due to adverse currency effects.
In the 2008 first nine months, the effective average exchange rate for the Company was approximately \$1.52 to euro 1.00, compared to \$1.33 to euro 1.00 for the 2007 first nine months.
The Company estimates that currency rates adversely impacted operating income in the first nine months year-to-date comparison by about \$340 million or approximately 450 basis points.
The following table provides a breakdown of revenues and operating income by product segment.
| In Million US\$ and % Product Segment |
First Nine Months 2008 | Operating | |
|---|---|---|---|
| Net Revenues |
% of Net Revenues |
income (loss) |
|
| ACCI (Auto/Cons./Comp./Telecom | |||
| Infra. Product Groups) (a) | \$3,231 | 42.7% | \$110 |
| IMS (Industrial and | |||
| Multisegment Product Sector) | 2,538 | 33.5 | 374 |
| WPS (Wireless Product Sector) | 1,454 | 19.2 | 12 |
| FMG (Flash Memories Group) (d) | 299 | 4.0 | 16 |
| Others (b)(c) | 44 | 0.6 | (571) |
| TOTAL | \$7,566 | 100% | \$(59) |
(a), (b) and (c) defined in earlier table. (d) Operating income for FMG in the period reflects the benefit of suspended depreciation for Assets Held For Sale.
Mr. Bozotti stated, "While ST has performed very well in the first nine months of 2008, we are not immune to the major challenges the global economy faces today. We are well positioned in our key markets and we continue to execute on our strategy but we are facing the ongoing industry downturn. Comprehensive measures have been taken and fab loadings are being reduced to control inventory. We expect ST's sequential net revenue to be in the range between flat and -8%. This represents for FY 2008 net revenue growth between 6.2% and 8.6%, excluding FMG and the former NXP Wireless business. Despite the estimated sequential quarterly decline in sales, the 2008 fourth quarter gross margin is expected to improve sequentially to about 38.8%, plus or minus one percentage point reflecting improved operational factors and a more favorable currency rate, partially offset by reduced fab loading."
This outlook is based on an assumed effective currency exchange rate of approximately \$1.40 = euro 1.00 for the 2008 fourth quarter, which reflects current exchange rate levels combined with the impact of existing hedging contracts. Additionally, this outlook includes the results of the ST-NXP Wireless joint venture for the full quarter, which began operations on August 2, 2008 but excludes an estimated \$30 million cost in fourth quarter 2008 due to inventory step-up purchase accounting adjustment related to the former NXP Wireless business.
• In digital consumer, ST announced the sampling of the STi7105 highdefinition (HD) video decoder, with enhancements for higher performance, lower power, and lower bill-of-materials costs in settop boxes (STBs) and home media servers. ST also bolstered its leadership in DVB-S2 digital satellite broadcast with a new 'frontend' STB chipset for digital satellite HDTV equipment. The use of DVB-S2 by consumer equipment manufacturers is increasing rapidly in a wide range of applications, including Pay-TV and free-to-air STBs, integrated digital TVs (iDTVs), PC TV cards and HD Blu-ray Disc equipment.
• In microcontrollers, ST extended its library of functions supporting vector control of electric motors using the 32-bit Cortex-M3 based STM32 MCU, which has already been designed into approximately 40 customer motor-control applications.
All of STMicroelectronics' press releases (including all releases in Q3) are available at www.st.com/stonline/press/news/latest.htm.
SuperMESH and SoundTerminal are trademarks of STMicroelectronics. All other trademarks or registered trademarks are the property of their respective owners.
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in such statements due to, among other factors:
our ability to close as planned the merger of ST-NXP Wireless with Ericsson Mobile Platforms as announced on August 20, 2008;
the effects of hedging, which we practice in order to minimize the impact of variations between the U.S. dollar and the currencies of the other major countries in which we have our operating infrastructure in the currently very volatile currency environments;
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Such forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "may," "will," "should,", "would be" or "anticipates" or similar expressions or the negative thereof or other variations thereof, or by discussions of strategy, plans or intentions. Some of the risk factors we face are set forth and are discussed in more detail in "Item 3. Key Information—Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2007, as filed with the SEC on March 3, 2008. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Risk Factors" from time to time in our SEC filings, including our Form 20-F, could have a material adverse effect on our results of operations or financial condition.
The management of STMicroelectronics will conduct a conference call on October 29, 2008 at 9:00 a.m. U.S. Eastern Time / 2:00 p.m. CET, to discuss operating performance for the third quarter of 2008.
The conference call will be available via the Internet by accessing the following Web address: http://investors.st.com. Those accessing the webcast should go to the Web site at least 15 minutes prior to the call, in order to register, download and install any necessary audio software. The webcast will be available until November 7, 2008.
STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2007, the Company's net revenues were \$10 billion. Further information on ST can be found at www.st.com.
STMicroelectronics N.V. CONSOLIDATED BALANCE SHEETS
| As at In million of U.S. dollars |
September 27, 2008 (Unaudited) (Unaudited) ----------- ----------- |
2008 | June 28, December 31, 2007 (Audited) --------- |
|---|---|---|---|
| ASSETS | |||
| ====== | |||
| Current assets: | |||
| Cash and cash equivalents | 868 | 2,136 | 1,855 |
| Marketable securities | 726 | 898 | 1,014 |
| Trade accounts receivable, net | 1,520 | 1,473 | 1,605 |
| Inventories, net | 1,787 | 1,580 | 1,354 |
| Deferred tax assets | 252 | 246 | 205 |
| Assets held for sale | 0 | 61 | 1,017 |
| Receivables, net on | |||
| transactions on-behalf | 72 | ||
| Other receivables and assets | 694 | 734 | 612 |
| --- | --- | --- | |
| Total current assets | 5,919 | 7,128 | 7,662 |
| Goodwill | 1,030 | 315 | 290 |
| Other intangible assets, net | 904 | 309 | 238 |
| Property, plant and | |||
| equipment, net | 5,065 | 5,059 | 5,044 |
| Long-term deferred tax assets | 370 | 283 | 237 |
| Equity investments | 691 | 1,032 | 0 |
| Restricted cash | 250 | 250 | 250 |
| Non-current marketable securities | 297 | 300 | 369 |
| Other investments and other | |||
| non-current assets | 458 | 377 | 182 |
| --- 9,065 |
--- 7,925 |
--- 6,610 |
| Total assets | 14,984 ------ |
15,053 ------ |
14,272 ------ |
|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| ==================================== | |||
| Current liabilities: Current portion of long-term debt |
63 | 153 | 103 |
| Trade accounts payable Other payables and accrued |
1,156 | 1,161 | 1,065 |
| liabilities | 1,165 | 981 | 744 |
| Dividends payable to shareholders | 163 | 242 | 0 |
| Deferred tax liabilities | 19 | 10 | 11 |
| Accrued income tax | 142 --- |
132 --- |
154 --- |
| Total current liabilities | 2,708 | 2,679 | 2,077 |
| Long-term debt Reserve for pension and |
2,487 | 2,313 | 2,117 |
| termination indemnities | 301 | 304 | 323 |
| Long-term deferred tax liabilities | 109 | 33 | 14 |
| Other non-current liabilities | 323 | 311 | 115 |
| --- | --- | --- | |
| 3,220 | 2,961 | 2,569 | |
| Total liabilities | 5,928 | 5,640 | 4,646 |
| Commitment and contingencies | |||
| Minority interests Common stock (preferred stock: 540,000,000 |
290 | 56 | 53 |
| shares authorized, not issued; common stock: Euro 1.04 nominal value, 1,200,000,000 shares authorized, 910,307,305 shares issued, 883,460,327 shares outstanding) |
1,156 | 1,156 | 1,156 |
| Capital surplus | 2,311 | 2,145 | 2,097 |
| Accumulated result | 4,444 | 4,736 | 5,274 |
| Accumulated other | |||
| comprehensive income | 1,276 | 1,593 | 1,320 |
| Treasury stock | -421 ---- |
-273 ---- |
-274 ---- |
| Shareholders' equity | 8,766 ----- |
9,357 ----- |
9,573 ----- |
| Total liabilities and | |||
| shareholders' equity | 14,984 | 15,053 | 14,272 |
STMicroelectronics N.V. CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended | Nine Months Ended | ||
|---|---|---|---|
| ------------- | ----------------- | ||
| September 27, September 27, September 29, | |||
| In million of U.S. dollars | 2008 | 2008 | 2007 |
| (Unaudited) | (Unaudited) | (Unaudited) | |
| ---------- | ---------- | ---------- |
Cash flows from operating activities:
| Net loss | -289 | -421 | -496 |
|---|---|---|---|
| Items to reconcile net income | |||
| (loss) and cash flows from | |||
| operating activities | |||
| Depreciation and amortization | 343 | 1,009 | 1,079 |
| Amortization of discount | |||
| on convertible debt | 4 | 13 | 13 |
| Other-than-temporary impairment charge on |
|||
| financial assets | 14 | 82 | 0 |
| Other non-cash items | 62 | 73 | 78 |
| Minority interests in | |||
| net income of subsidiaries | 9 | 12 | 4 |
| Deferred income tax | -38 | -41 | -13 |
| (Earnings) loss on equity | |||
| investments | 344 | 350 | -12 |
| Impairment, restructuring | |||
| charges and other related | |||
| closure costs, net of | |||
| cash payments | -4 | 333 | 905 |
| Changes in assets and liabilities: | |||
| Trade receivables, net | 0 | 165 | -36 |
| Inventories, net | 46 | -133 | 9 |
| Trade payables | -42 | 101 | -45 |
| Other assets and | |||
| liabilities, net | -35 | -211 | -35 |
| --- | ---- | --- | |
| Net cash from operating | |||
| activities | 414 | 1,332 | 1,451 |
| Cash flows from investing | |||
| activities: | |||
| Payment for purchases of | |||
| tangible assets | -247 | -777 | -735 |
| Payment for purchases of | |||
| marketable securities | 0 | 0 | -708 |
| Proceeds from sale of | |||
| marketable securities | 127 | 287 | 100 |
| Proceeds from matured | |||
| short-term deposits | 0 | 0 | 250 |
| Restricted cash for equity | |||
| investments | 0 | 0 | -32 |
| Investment in intangible and | |||
| financial assets | -27 | -68 | -64 |
| Payment for business | |||
| acquisitions, | |||
| net of cash and cash | |||
| equivalents acquired | -1,517 | -1,687 | 0 |
| ------ | ------ | - | |
| Net cash used in | |||
| Investing activities | -1,664 | -2,245 | -1,189 |
| Cash flows from financing | |||
| activities: | |||
| Proceeds from long-term debt | 251 | 387 | 82 |
| Proceeds from repurchase | |||
| agreements | 249 | 249 | 0 |
| Extinguishment of | |||
| obligations under | |||
| repurchase agreements | -249 | -249 | 0 |
| Repayment of long-term debt | -13 | -64 | -112 |
| Capital increase Repurchase of common stock |
0 -148 |
0 -231 |
2 0 |
|---|---|---|---|
| Dividends paid Dividends paid to |
-80 | -161 | -269 |
| minority interests | 0 | 0 | -6 |
| Net cash from (used in) | - | - | -- |
| financing activities Effect of changes in |
10 | -69 | -303 |
| exchange rates | -28 --- |
-5 -- |
32 -- |
| Net cash decrease | -1,268 ------ |
-987 ---- |
-9 -- |
| Cash and cash equivalents at | |||
| beginning of the period Cash and cash equivalents at |
2,136 | 1,855 | 1,659 |
| end of the period | 868 | 868 | 1,650 |
STMicroelectronics N.V. Consolidated Statements of Income (in million of U.S. dollars, except per share data (\$))
| Three Months Ended ------------------ |
|||
|---|---|---|---|
| (Unaudited) | (Unaudited) | ||
| ----------- 2008 ---- |
----------- September 27, September 29, 2007 ---- |
||
| Net sales | 2,687 | 2,555 | |
| Other revenues | 9 | 10 | |
| NET REVENUES | - 2,696 |
-- 2,565 |
|
| Cost of sales | -1,737 ------ |
-1,663 ------ |
|
| GROSS PROFIT | 959 | 902 | |
| Selling, general and administrative | -297 | -272 | |
| Research and development | -602 | -442 | |
| Other income and expenses, net | 17 | 24 | |
| Impairment, restructuring charges and other | |||
| related closure costs | -22 | -31 | |
| --- | --- | ||
| Total Operating Expenses | -904 | -721 | |
| ---- | ---- | ||
| OPERATING INCOME | 55 | 181 | |
| -- | --- | ||
| Other-than-temporary impairment charge on | |||
| financial assets | -14 | 0 | |
| Interest income, net | 8 | 22 | |
| Earnings (loss) on equity investments | -344 | 3 | |
| ---- | - | ||
| INCOME (LOSS) BEFORE INCOME TAXES | |||
| AND MINORITY INTERESTS | -295 | 206 | |
| Income tax benefit (expense) | 15 | -18 | |
| -- | --- | ||
| INCOME (LOSS) BEFORE MINORITY INTERESTS | -280 | 188 | |
| Minority interests | -9 | -1 |
| NET INCOME (LOSS) | -- -289 ==== |
-- 187 === |
|---|---|---|
| EARNINGS (LOSS) PER SHARE (BASIC) EARNINGS (LOSS) PER SHARE (DILUTED) |
-0.32 -0.32 |
0.21 0.20 |
| NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED INCOME (LOSS) PER SHARE |
890.3 | 945.2 |
STMicroelectronics N.V. Consolidated Statements of Income
(in million of U.S. dollars, except per share data (\$))
| Nine Months Ended ----------------- |
|||
|---|---|---|---|
| (Unaudited) | (Unaudited) | ||
| ----------- 2008 ---- |
----------- September 27, September 29, 2007 ---- |
||
| Net sales Other revenues |
7,528 38 |
7,233 25 |
|
| NET REVENUES Cost of sales |
-- 7,566 -4,828 |
-- 7,258 -4,733 |
|
| GROSS PROFIT Selling, general and administrative Research and development Other income and expenses, net |
------ 2,738 -882 -1,581 56 |
------ 2,525 -803 -1,322 20 |
|
| Impairment, restructuring charges And other related closure costs Total Operating Expenses |
-390 ---- -2,797 |
-949 ---- -3,054 |
|
| OPERATING LOSS | ------ -59 |
------ -529 |
|
| Other-than-temporary impairment charge on financial assets Interest income, net Earnings (loss) on equity investments |
--- -82 48 -350 ---- |
---- 0 57 12 -- |
|
| LOSS BEFORE INCOME TAXES AND MINORITY INTERESTS Income tax benefit (expense) |
-443 34 |
-460 -32 |
|
| LOSS BEFORE MINORITY INTERESTS Minority interests |
-- -409 -12 --- |
--- -492 -4 -- |
|
| NET LOSS | -421 ==== |
-496 ==== |
|
| LOSS PER SHARE (BASIC) LOSS PER SHARE (DILUTED) |
-0.47 -0.47 |
-0.55 -0.55 |
NUMBER OF WEIGHTED AVERAGE
CONTACT: INVESTOR RELATIONS, Tait Sorensen, Director, Investor Relations, +1-602-485-2064, [email protected], or MEDIA RELATIONS, Maria Grazia Prestini, Senior Director, Corporate Media and Public Relations, +41-22-929-6945, [email protected], both of STMicroelectronics
Web site: http://www.st.com
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.