• Gross margin for the third quarter was 39.5%, up 120 basis points, asset impairment Revenue from restructuring expense (1) 13.7%
• Net income for the first nine months was $ 5.88 billion, up 15.0%, net profit of $ 494 million, free cash flow (1) $ 194 million
• STMicroelectronics returns to the Paris Stock Exchange CAC 40 index
China, October 27, 2017 - STMicroelectronics (ST; NYSE: STM), a leading global semiconductor supplier across multiple applications, announced that as of 2017 (STMicroelectronics, STMicroelectronics, STMicroelectronics) The third quarter of September 30 and the first nine months of the company earnings.
Net income for the third quarter totaled $ 2.14 billion, gross margin was 39.5%, net profit was $ 236 million and earnings per share were $ 0.26.
"In the third quarter, we achieved a number of milestones with quarterly revenues of more than $ 2.1 billion, an increase of nearly 19 percent, gross margin of 39.5 percent, and impairment charges," said Carlo Bozotti, president and chief executive officer of STMicroelectronics. The former operating margin is 13.7%.
'All product sectors have achieved double-digit year-on-year growth. In all areas such as Internet of Things, smart phones, industrial and intelligent driving, all regions have strong demand for our products.
'With technology products, talent and diversified customer base as the driving force, with a complete product portfolio of sustained revenue growth as the center, STMicroelectronics transformation initial results to the sound financial situation and enhanced asset liquidity as the support, we are determined Continue along this growth and innovation path.
(1) Non-US GAAP measures, please refer to the attachment for information on how to adjust to GAAP data and why the company considers these assessment indicators important.
Quarterly financial summaries by product sector (in millions of dollars)
(a) Net income from other items includes sales revenue and other income for imaging products, subsystems and packaging services.
Review in the third quarter
Net income in the third quarter increased 11.1% qoq, better than cyclical revenue growth, 210 basis points higher than the median target of the company's target. Microcontrollers and digital IC products (MDG) revenue grew 14.6% qoq, (AMG) and automotive products and discrete devices (ADG) grew 4.2% and 2.6% year-on-year, respectively, and the number of products recorded in other products The third quarter of the product revenue to achieve the three-digit growth, which means that STMicroelectronics new plans, including flight time and special imaging technology, including wireless applications into the initial growth stage.
Third quarter net income rose 18.9% year on year, all product sectors grew double-digit and new products were well received by the market. Analog Devices and MEMS Products (AMG) grew 24.8% YoY, thanks to analog devices The growth in microcontrollers and digital IC products (MDG) grew 19.4% year on year, with the growth of common microcontrollers growing strongly, but the sales revenue of the delisting business declined, offsetting GM's (ADG) third quarter revenue grew 10.0% over the same period last year, with strong growth in automotive products and power chips, with third-quarter revenue growth in the imaging products segment The
Revenue rose 14.5% in the Americas region, 10.8% in the Asia-Pacific region and 10.0% in the EMEA region, with an increase of 24.9% in the EMEA region and Asia Pacific 19.4% in the Americas, 6.4% in the Americas.
Third quarter gross profit of $ 845 million, gross margin of 39.5%, 50 percentage points higher than the median of the company's target. From the chain, the gross margin increased by 120 basis points, mainly due to improved manufacturing efficiency, product mix optimization, but , By the normal price pressure and net profit attributable to hedging net negative effects, these positive effects were offset by a part.
The third quarter gross margin increased by 370 basis points year on year, thanks to improved manufacturing efficiency, product mix optimization, operating rate increased, however, the normal price pressure offset some of the growth.
Third quarter R & D and sales management combined expenditure of $ 558 million, a decrease of $ 9 million, mainly due to the positive impact of seasonal factors affected by changes in inflation, R & D and sales management consolidated expenditure increased by 16 million US dollars, an increase of 2.9% The
In the third quarter, other net income was $ 5 million in the third quarter, compared with $ 15 million and $ 18 million in the previous quarter and the same period last year.
Reorganization of assets in the third quarter of restructuring 14 million US dollars, the previous quarter and the same period last year were 6 million US dollars and 29 million US dollars, the expenditure mainly in January 2016 announced the set-top box business restructuring plan.
Operating profit for the third quarter of 2017 was $ 278 million, up from $ 100 million and $ 188 million in the previous quarter and $ 88 million in the same period last year, according to product sector statistics, MDG operating profit surged $ 54 million, operating margin from 11.6 in the previous quarter % Jumped to 17.9% in the quarter. AMG operating profit increased by $ 21 million, operating margin increased from 14.5% in the previous quarter to 18.1% in the quarter, improved product mix, improved sales revenue and improved manufacturing performance ADG operating profit increased by $ 20 million, operating margin increased from 8.6% in the previous quarter to 10.9% in the quarter. Other items (including imaging products business) loss fell to 23 million US dollars, the last quarter of 2800 Ten thousand U.S. dollars.
In the third quarter, both profit and gross profit margin increased, and the operating profit before impairment expense (1) was $ 292 million, accounting for 13.7% of net income. The last two indexes were $ 184 million and 9.6% (1) increased by $ 173 million, due to higher revenue, improved manufacturing efficiency, improved product mix and operating rate, with net profit of $ 236 million in the third quarter, compared with the same period of last year Revenue of $ 0.26, net profit of $ 151 million and earnings per share of $ 0.17. Net profit for the third quarter increased $ 165 million, or $ 0.18 per share, compared with $ 79 million in profit for the same period last year and $ 0.08 per share.
First nine months of each product sector financial summary (unit: million dollars)
2017 years ago nine months ago
Net income for the nine months prior to 2017 was $ 5.88 billion, an increase of 15.0% from $ 5.11 billion in the first nine months of 2016 and an increase of 16.4% if not delisting (old mobile products and set-top box chips) Sector Statistics, Analog Devices and MEMS Products (AMG) grew 24.3% in the first nine months of 2017, both analog and MEMS products grew strongly, while the first nine months of microcontrollers and digital IC products (MDG) grew 13.7%, where generic microcontrollers were growing very strongly, however, sales of declining product business declined, offsetting some growth in general-purpose microcontrollers. Automotive products and discrete device products (ADG) 2017 years ago nine months of revenue An increase of 6.8%, car chips and discrete devices are growing strong. Recorded in other aspects of the imaging products 2017 years before the nine months of revenue significantly increased significantly over the same period last year.
(1) Non-US GAAP measures More information and adjustments to US GAAP, see annex.
Today's gross profit was $ 2.27 billion, with gross margin of 38.5% in the first nine months of 2017, up 410 basis points from 34.4% in the same period last year. Specifically, the gross profit margin for the first nine months of 2017 benefited from increased manufacturing efficiency, The combination of optimization, factory operating rate increased, however, the normal price pressure offset some of the growth.
2017 years ago nine months R & D and sales management combined expenditure totaled 1.69 billion US dollars, the same period last year R & D and sales management combined expenditure totaling 1.68 billion US dollars.
Other net income and expenditure of the first nine months of 2017 net profit of 37 million US dollars, compared with the same period last year recorded 73 million US dollars, the main reason for the decrease in profits is the government R & D capital investment scale reduction.
As of today, the revaluation of the reorganization expenditure of 25 million US dollars, compared with 69 million US dollars last year, this expenditure is mainly related to the set-top box business restructuring plan.
2017 years before the nine months to achieve operating profit of 585 million US dollars, a substantial increase over the same period last year 500 million US dollars.
As of today, the operating profit and operating profit margin (1) increased rapidly, operating profit surged to $ 610 million, operating profit margin accounted for 10.4% of net income, compared with $ 154 million and 3.0% in the same period last year. The main reason is the increase in net income and gross margin, product portfolio optimization, manufacturing efficiency and operating rate increased.
2017 net profit for the first nine months was $ 494 million, earnings per share of $ 0.55, net profit of $ 53 million in the same period last year, earnings per share of $ 0.06.
Cash flow and balance sheet summary
Excluding the proceeds from the sale of assets, the capital expenditures for the third quarter and the first nine months of 2017 were $ 365 million and $ 891 million respectively; $ 399 million for the first nine months of 2016.
Quarter-end stocks of 1.32 billion US dollars, up 4.7% qoq .2017 third quarter inventory turnover rate of 3.9 or 92 days.
The total cash dividend for the third quarter and the first nine months of 2017 was $ 59 million and $ 160 million respectively.
As of September 30, 2017, the company's net financial position (1) $ 446 million; as of July 1, 2017, the company's net financial position of $ 524 million as of September 30, 2017, STMicroelectronics total resources of 2.62 billion The total liabilities of $ 2.18 billion, including non-controlling interests, totaling $ 5.15 billion.
STMicroelectronics issued a new $ 1.5 billion two-year warranty on unsecured convertible bonds ($ 750 million in each year, 2022 and 2024) in the third quarter of 2017. The company started and completed a stock repurchase in the third quarter Plans to redeem 1860 million shares valued at $ 297 million. In the second quarter of 2017, STMicroelectronics issued a notice to the bondholders in advance of the 2010 issue of the convertible bonds due in 2014. Therefore, 2017 In the third quarter, the bondholders converted $ 600 million A convertible bonds at a book value of $ 598 million. STMicroelectronics selected net share settlment, resulting in the company's The end of August to complete all A file bond redemption plan to use 600 million US dollars in cash and 13 million stocks of shares .2013 September 13 - October 10, the bondholders of the 2021 expiry of the B file convertible bonds On October 11, 2017, STMicroelectronics issued to the bondholders the early redemption of the remaining 60 million US dollars in 2021 due to the B file convertible bonds notice.
(1) Non-US GAAP measures More information and adjustments to US GAAP, see annex.
In August 2017, STMicroelectronics and the European Investment Bank (EIB) signed a new credit balance of 500 million euros in the medium-term lending agreement for the 2017-2018 STMicroelectronics in France, Italy and Malta, the three countries R & D funds and capital The interim loan agreement allows the euro and the dollar to be withdrawn and the agreement is valid until the first quarter of 2019. The terms of the agreement are broadly the same as those agreed by STMicroelectronics and EIB.
Business outlook for the fourth quarter of 2017
Mr. Bozotti said: 'We see the opportunity before us, we must seize these opportunities, continue to increase revenue, profit margins and shareholder value, our technology products to focus on high-growth market, so that all product departments can Improve the competitive advantage in large customers and distribution channels.
In the fourth quarter, we expect strong growth in all product segments and regional markets, and we expect fourth-quarter revenue growth to increase by approximately 10.0%, according to orders and new wireless application plans. , Gross margin increased to 39.9%, these two figures are our median.
As for the full year, we expect 2017 net income to increase by approximately 18.0% year-on-year, while operating margin and net profit will increase significantly, based on our top nine-month financial data and the median of our fourth-quarter revenue guidance. '
The company expects revenue growth of about 10.0% in the fourth quarter of 2011, up 3.5 percentage points from the top and bottom, and the fourth quarter gross margin is expected to be 39.9%, up and down by two percentage points.
The outlook is assumed to be in the fourth quarter of 2017, the effective exchange rate of the US dollar against the euro of about 1.15 US dollars = 1.00 euros, including the current hedge contract effect of the fourth quarter closed on December 31, 2017.