|
Net revenues of $1.82 billion, up 12.9% year-over-year on growth across all product groups
|
|
Gross margin of 37.6%, up 420 basis points year-over-year
|
|
Net income of $108 million, year-over-year improvement of $149 million
|
|
Cash dividend of $0.24 per common share payable in equal quarterly installments to be proposed to the 2017 Annual General Meeting of Shareholders
|
U.S. GAAP
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Net Revenues
|
1,821
|
1,859
|
1,613
|
Gross Margin
|
37.6%
|
37.5%
|
33.4%
|
Operating Income (Loss)
|
129
|
129
|
(33)
|
Net Income (Loss) attributable to parent company
|
108
|
112
|
(41)
|
Net cash from operating activities
|
289
|
378
|
141
|
Non-U.S. GAAP (1)
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Operating Income (Loss) before impairment and restructuring charges
|
134
|
153
|
(5)
|
Free cash flow
|
62
|
135
|
31
|
Net financial position
|
518
|
513
|
439
|
Net Revenues By Product Group
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Automotive and Discrete Group (ADG)
|
708
|
716
|
671
|
Analog and MEMS Group (AMG)
|
443
|
436
|
369
|
Microcontrollers and Digital ICs Group (MDG)
|
593
|
610
|
532
|
Others (a)
|
77
|
97
|
41
|
Total
|
1,821
|
1,859
|
1,613
|
(1) |
Non-U.S. GAAP measure. See Appendix for additional information and reconciliation to U.S. GAAP.
|
|
Started production of 32-bit Power Architecture 40nm microcontrollers for a new-generation gateway with leading-edge processing and extended-connectivity capability for an embedded-security hardware module for multiple customers;
|
|
Captured a win for 40nm 32-bit Power Architecture-based microcontrollers for a battery-management system with a European car maker and for a seat-belt pre-tensioner application with a major European Tier-1;
|
|
Landed an award for an infotainment processor and AM/FM tuner platform from a major Japanese Tier-1 for a Chinese car maker;
|
|
Began production of latest-generation single-chip AM/FM CMOS tuners for a Japanese Tier-1;
|
|
Continued to build on success with a parking brake application specific standard product with wins from multiple customers in all regions;
|
|
Earned an important award for a lithium-cell balancing device for a battery-management system at a leading Asian maker;
|
|
Maintained traction with a win for our Class AB amplifiers in wins for aftermarket Head Units for top Japanese Tier-1;
|
|
Won the Gen 2 Power Control Unit for a door zone application at a major European Tier-1;
|
|
Captured the Body Control Unit for a module being built by an American Tier-1 for a European carmaker;
|
|
Won sockets for high-voltage MDmesh MOSFETs for an on-board charging application and for a low-voltage MOSFET for a battery-management system at an important American OEM;
|
|
Recorded several design wins for low-voltage power transistors for a 48V dc/dc application and fuel pumps at important European and Asian Tier-1s;
|
|
Received an important award for SiC MOSFETs for on-board chargers and dc/dc converters from a leading Asian OEM.
|
|
Recorded several design wins with rectifiers, protection devices, and automotive-grade IPAD devices for powertrain, on-board charger, ADAS and Safety, and high-speed data-line networks with multiple global Tier-1s;
|
|
Registered important design-wins for field-effect rectifier diodes from a leading power-supply maker in Asia for adaptors and gaming applications;
|
|
Continued fast expansion of RF integrated passive device solution for RF connectivity module for the IoT market with several large customers;
|
|
Earned important design wins with high-voltage MDmesh devices and low-voltage STripFET MOSFETs from an important customer in Asia for a gaming application.
|
|
Ramped production of several products inside Samsung Galaxy S8 and S8+ flagship smartphones including 6-axis ultra-low-power MEMS inertial measurement unit integrating accelerometer and gyroscope, optical-image-stabilization gyroscope, barometric sensor, touch controller, and multifunction protection switch;
|
|
Announced its motion sensors and touch-screen controller IC were selected for Nintendo Switch™ system, Nintendo’s latest innovative gaming device;
|
|
Continued to gain share with inertial and environmental sensors in smartphones and wearables worldwide and automotive car navigation systems;
|
|
Launched a partnership with USound to produce world’s first piezo-MEMS speaker with excellent sound quality, targeting IoT applications;
|
|
Received recognition from Juniper Research for SensorTile as the best wearable platform for IoT Services;
|
|
Introduced a new ultra-low power 3-axis smart accelerometer with many embedded smart functions that reduce overall system power consumption;
|
|
Captured first ever production order for a 6-axis inertial sensor to be used in high-end industrial applications;
|
|
Continued strong momentum in low-power radio solutions for IoT with BlueNRG Bluetooth® low energy solutions as well as the SPIRIT sub-1GHz family for home and building automation;
|
|
Won multiple designs for a range of Analog products for next-generation smart metering solutions;
|
|
Captured several design wins for our STSPIN32 motion control family;
|
|
Earned qualification from the United States Defense Logistics Agency (DLA) for two Rad-Hard high-frequency, high-current drivers for Space applications (RHRPM4424 & RHRPM4423); these are the first Rad-Hard products using a radiation-enhanced version of ST’s proprietary BCD technology to get this certification.
|
|
Revealed its STM32 microcontrollers and NFC controller IC were chosen for the innovative Nintendo Switch™ system;
|
|
Introduced new STM32L4 MCUs, adding larger memories, enhanced graphics support, extra peripherals, and increased power-saving flexibility to the existing lines;
|
|
Teamed with DSP Concepts to offer STM32 users free access to an advanced audio design tool;
|
|
Extended the STM32 ecosystem with the introduction of MCU Finder for PC, a new STM32F7 Nucleo board and Discovery kit, and new STM32 boards to evaluate low-power, long-range IoT connectivity using LoRaWAN™, 6LoWPAN, and other Low-Power Wide Area Networks;
|
|
Announced the availability of the new advanced Near Field Communication ST21NFCD controller integrating the recently acquired booster technology.
|
|
Launched STSAFE-A1SX plug-and-play solution to secure devices connected to the Sigfox low-power wide-area network;
|
|
Teamed with Giesecke & Devrient and FitPay Mobile-Payment to offer a certification-ready hardware and software solution to integrate tokenized payments from Mastercard or Visa on wearable devices;
|
|
Captured a win for ST25 NFC reader at a major car OEM;
|
|
Introduced ST25DV dynamic-tag ICs that support higher speed and greater distance RFID specifications and feature an I2C bus for smart meters, IoT devices and other industrial and consumer products;
|
|
Announced new ST25 Discovery kit that accelerates time-to-market of NFC applications in wide range of electronic devices, including payment terminals, access control, device identification, sensor-data collection;
|
|
Sampled STiD337 System-on-Chip in 28nm FD-SOI that will power Eutelsat’s SmartLNB interactive terminal;
|
|
Ramped production of the STiD135, the world’s first 500Mbaud High Symbol Rate (HSR) satellite demodulator chip, for lead customer Newtec;
|
|
Expanded business from a global leader in optical communication for the PSM4 optical interface product based on silicon photonics;
|
|
Won multiple new designs in 55nm BiCMOS from a major Asian customer for optical infrastructure applications.
|
|
Earned multiple new design-wins and continued high-volume shipments of Time-of-Flight ranging sensors to leading smartphone manufacturers;
|
|
Announced new generation of Time-of-Flight sensor, which brings multi-object detection and multi-array scanning to mobile applications.
|
|
Uncertain macro-economic and industry trends, which may impact end-market demand for our products;
|
|
Customer demand that differs from projections;
|
|
The ability to design, manufacture and sell innovative products in a rapidly changing technological environment;
|
|
Unanticipated events or circumstances, which may impact our ability to execute the planned reductions in our net operating expenses and / or meet the objectives of our R&D Programs, which benefit from public funding;
|
|
Changes in economic, social, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, military conflicts, social unrest, labor actions, or terrorist activities;
|
|
The Brexit vote and the perceptions as to the impact of the withdrawal of the U.K. may adversely affect business activity, political stability and economic conditions in the U.K., the Eurozone, the EU and elsewhere. While we do not have material operations in the U.K. and have not experienced any material impact from Brexit on our underlying business to date, we cannot predict its future implications;
|
|
Financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
|
|
The loading, product mix, and manufacturing performance of our production facilities;
|
|
The functionalities and performance of our IT systems, which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers or suppliers;
|
|
Variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
|
|
The impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
|
|
The ability to successfully restructure underperforming business lines and associated restructuring charges and cost savings that differ in amount or timing from our estimates;
|
|
Changes in our overall tax position as a result of changes in tax laws, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
|
|
The outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
|
|
Product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;
|
|
Natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, health risks and epidemics in locations where we, our customers or our suppliers operate;
|
|
Availability and costs of raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations; and
|
|
Industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers.
|
STMicroelectronics N.V.
|
|||||||||
Consolidated Statements of Income
|
|||||||||
(in millions of U.S. dollars, except per share data ($))
|
|||||||||
Three Months Ended
|
|||||||||
(Unaudited)
|
(Unaudited)
|
||||||||
April 01,
|
April 02,
|
||||||||
2017
|
2016
|
||||||||
Net sales
|
1,818
|
1,605
|
|||||||
Other revenues
|
3
|
8
|
|||||||
NET REVENUES
|
1,821
|
1,613
|
|||||||
Cost of sales
|
(1,136
|
)
|
(1,075
|
)
|
|||||
GROSS PROFIT
|
685
|
538
|
|||||||
Selling, general and administrative
|
(234
|
)
|
(229
|
)
|
|||||
Research and development
|
(334
|
)
|
(342
|
)
|
|||||
Other income and expenses, net
|
17
|
28
|
|||||||
Impairment, restructuring charges and other related closure costs
|
(5
|
)
|
(28
|
)
|
|||||
Total Operating Expenses
|
(556
|
)
|
(571
|
)
|
|||||
OPERATING INCOME (LOSS)
|
129
|
(33
|
)
|
||||||
Interest expense, net
|
(4
|
)
|
(5
|
)
|
|||||
Income (loss) on equity-method investments
|
-
|
-
|
|||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
125
|
(38
|
)
|
||||||
AND NONCONTROLLING INTEREST
|
|||||||||
Income tax expense
|
(16
|
)
|
(2
|
)
|
|||||
NET INCOME (LOSS)
|
109
|
(40
|
)
|
||||||
Net income attributable to noncontrolling interest
|
(1
|
)
|
(1
|
)
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY
|
108
|
(41
|
)
|
||||||
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS
|
0.12
|
(0.05
|
)
|
||||||
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS
|
0.12
|
(0.05
|
)
|
||||||
|
|||||||||
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
DILUTED EARNINGS PER SHARE
|
901.9
|
878.6
|
STMicroelectronics N.V.
|
|||||||||||||
CONSOLIDATED BALANCE SHEETS
|
|||||||||||||
As at
|
April 01,
|
December 31,
|
April 02,
|
||||||||||
In millions of U.S. dollars
|
2017
|
2016
|
2016
|
||||||||||
(Unaudited)
|
(Audited)
|
(Unaudited)
|
|||||||||||
ASSETS
|
|||||||||||||
Current assets:
|
|||||||||||||
Cash and cash equivalents
|
1,641
|
1,629
|
1,697
|
||||||||||
Marketable securities
|
335
|
335
|
343
|
||||||||||
Trade accounts receivable, net
|
946
|
939
|
891
|
||||||||||
Inventories
|
1,201
|
1,173
|
1,302
|
||||||||||
Other current assets
|
351
|
311
|
468
|
||||||||||
Total current assets
|
4,474
|
4,387
|
4,701
|
||||||||||
Goodwill
|
117
|
116
|
79
|
||||||||||
Other intangible assets, net
|
188
|
195
|
162
|
||||||||||
Property, plant and equipment, net
|
2,489
|
2,287
|
2,333
|
||||||||||
Non-current deferred tax assets
|
534
|
528
|
554
|
||||||||||
Long-term investments
|
57
|
57
|
57
|
||||||||||
Other non-current assets
|
467
|
434
|
492
|
||||||||||
3,852
|
3,617
|
3,677
|
|||||||||||
Total assets
|
8,326
|
8,004
|
8,378
|
||||||||||
LIABILITIES AND EQUITY
|
|||||||||||||
Current liabilities:
|
|||||||||||||
Short-term debt
|
685
|
117
|
173
|
||||||||||
Trade accounts payable
|
757
|
620
|
666
|
||||||||||
Other payables and accrued liabilities
|
777
|
750
|
692
|
||||||||||
Dividends payable to stockholders
|
6
|
59
|
10
|
||||||||||
Accrued income tax
|
47
|
42
|
52
|
||||||||||
Total current liabilities
|
2,272
|
1,588
|
1,593
|
||||||||||
Long-term debt
|
773
|
1,334
|
1,428
|
||||||||||
Post-employment benefit obligations
|
354
|
347
|
367
|
||||||||||
Long-term deferred tax liabilities
|
5
|
5
|
12
|
||||||||||
Other long-term liabilities
|
150
|
134
|
161
|
||||||||||
1,282
|
1,820
|
1,968
|
|||||||||||
Total liabilities
|
3,554
|
3,408
|
3,561
|
||||||||||
Commitment and contingencies
|
|||||||||||||
Equity
|
|||||||||||||
Parent company stockholders’ equity
|
|||||||||||||
Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 nominal value, 1,200,000,000 shares authorized, 911,095,420 shares issued, 883,530,762 shares outstanding)
|
1,157
|
1,157
|
1,157
|
||||||||||
Capital surplus
|
2,828
|
2,818
|
2,790
|
||||||||||
Retained earnings
|
538
|
431
|
483
|
||||||||||
Accumulated other comprehensive income
|
428
|
371
|
612
|
||||||||||
Treasury stock
|
(241
|
)
|
(242
|
)
|
(288
|
)
|
|||||||
Total parent company stockholders’ equity
|
4,710
|
4,535
|
4,754
|
||||||||||
Noncontrolling interest
|
62
|
61
|
63
|
||||||||||
Total equity
|
4,772
|
4,596
|
4,817
|
||||||||||
Total liabilities and equity
|
8,326
|
8,004
|
8,378
|
STMicroelectronics N.V.
|
|||
SELECTED CASH FLOW DATA
|
|||
Cash Flow Data (in US$ millions)
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Net Cash from operating activities
|
289
|
378
|
141
|
Net Cash used in investing activities
|
(227)
|
(243)
|
(110)
|
Net Cash used in financing activities
|
(53)
|
(163)
|
(107)
|
Net Cash increase (decrease)
|
12
|
(46)
|
(74)
|
Selected Cash Flow Data (in US$ millions)
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Depreciation & amortization
|
154
|
161
|
184
|
Net payment for Capital expenditures
|
(219)
|
(228)
|
(100)
|
Dividends paid to stockholders
|
(53)
|
(53)
|
(88)
|
Change in inventories, net
|
(22)
|
35
|
(22)
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
|
€/$ Effective Rate
|
1.08
|
1.10
|
1.10
|
Net Revenues By Market Channel (%)
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Total OEM
|
66%
|
67%
|
67%
|
Distribution
|
34%
|
33%
|
33%
|
Product Group Data
(US$ Million)
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Automotive and Discrete Group (ADG)
|
|||
- Net Revenues
|
708
|
716
|
671
|
- Operating Income (Loss)
|
38
|
53
|
39
|
Analog and MEMS Group (AMG)
|
|||
- Net Revenues
|
443
|
436
|
369
|
- Operating Income (Loss)
|
45
|
41
|
2
|
Microcontrollers and Digital ICs Group (MDG)
|
|||
- Net Revenues
|
593
|
610
|
532
|
- Operating Income (Loss)
|
60
|
59
|
(3)
|
Others (a)
|
|||
- Net Revenues
|
77
|
97
|
41
|
- Operating Income (Loss)
|
(14)
|
(24)
|
(71)
|
Total
|
|||
- Net Revenues
|
1,821
|
1,859
|
1,613
|
- Operating Income (Loss)
|
129
|
129
|
(33)
|
Q1 2017
(US$ million, except per share data ($))
|
Gross Profit
|
Operating Income
|
Net Earnings
|
Corresponding EPS
|
U.S. GAAP
|
685
|
129
|
108
|
0.12
|
Impairment & Restructuring
|
5
|
5
|
||
Estimated Income Tax Effect
|
(1)
|
|||
Non-U.S GAAP
|
685
|
134
|
112
|
0.12
|
Q4 2016
(US$ million, except per share data ($))
|
Gross Profit
|
Operating Income
|
Net Earnings
|
Corresponding EPS
|
U.S. GAAP
|
698
|
129
|
112
|
0.13
|
Impairment & Restructuring
|
24
|
24
|
||
Estimated Income Tax Effect
|
1
|
|||
Non-U.S GAAP
|
698
|
153
|
137
|
0.15
|
Q1 2016
(US$ million, except per share data ($))
|
Gross Profit
|
Operating Income (loss)
|
Net Earnings
(loss)
|
Corresponding EPS
|
U.S. GAAP
|
538
|
(33)
|
(41)
|
(0.05)
|
Impairment & Restructuring
|
28
|
28
|
||
Estimated Income Tax Effect
|
(3)
|
|||
Non-U.S GAAP
|
538
|
(5)
|
(16)
|
(0.02)
|
Net Financial Position (US$ million)
|
April 1, 2017
|
December 31, 2016
|
April 2, 2016
|
Cash and cash equivalents
|
1,641
|
1,629
|
1,697
|
Marketable securities
|
335
|
335
|
343
|
Total financial resources
|
1,976
|
1,964
|
2,040
|
Short-term debt
|
(685)
|
(117)
|
(173)
|
Long-term debt
|
(773)
|
(1,334)
|
(1,428)
|
Total financial debt
|
(1,458)
|
(1,451)
|
(1,601)
|
Net financial position
|
518
|
513
|
439
|
Free cash flow (US$ million)
|
Q1 2017
|
Q4 2016
|
Q1 2016
|
Net cash from operating activities
|
289
|
378
|
141
|
Net cash used in investing activities
|
(227)
|
(243)
|
(110)
|
Payment for purchase and proceeds from sale of marketable securities, investment in short-term deposits, restricted cash and net cash variation for joint ventures deconsolidation
|
-
|
-
|
-
|
Free cash flow
|
62
|
135
|
31
|
|
|
STMicroelectronics N.V.
|
|
|
|
|
|
Date: April 27, 2017
|
By:
|
/s/ Carlo Ferro
|
|
|
|
|
|
|
Name:
|
Carlo Ferro
|
|
|
Title:
|
Chief Financial Officer
Executive Vice President
Finance, Legal, Infrastructure and Services |