STMicroelectronics Reports 2013 First Quarter Financial Results

STMicroelectronics Reports 2013 First Quarter Financial Results 
GENEVA -- (Marketwired) -- 04/22/13 --  STMicroelectronics (NYSE:
STM)  


 
--  First quarter net revenues $2.01 billion, gross margin 31.3%; in line
    with guidance
--  ST revenues excluding ST-Ericsson decreased 3% sequentially, better
    than normal seasonality
--  Signed agreement with Ericsson to exit the ST-Ericsson joint venture

  
STMicroelectronics (NYSE: STM), a global semiconductor leader serving
customers across the spectrum of electronics applications, reported
financial results for the first quarter ending March 30, 2013. 
Effective January 1, 2013, the segment reporting of ST's results
reflects the new strategy announced on December 10, 2012: Sense &
Power and Automotive Products (SPA) and Embedded Processing Solutions
(EPS). 
First quarter net revenues totaled $2.01 billion and gross margin was
31.3%. Net loss attributable to ST was $171 million, mainly due to
the 50% share in ST-Ericsson operating loss and restructuring costs. 
"First quarter sales and gross margin results were in line with the
mid-point of our guidance," said ST President and CEO Carlo Bozotti.
"Importantly, excluding ST-Ericsson, our businesses delivered
revenues better than normal seasonality despite the ongoing soft
macro-economic environment, due to the strong performance of
Microcontrollers, Power and Smart Power for industrial and
automotive. We also achieved key design wins with leading customers
for 28nm FD-SOI technology products and home-gateway applications. 
"We continued to maintain a strong net financial position in the
quarter, while using some of our available cash to repay at maturity
our outstanding 2013 Senior bonds. We have signed an agreement with
Ericsson to split up the ST-Ericsson joint venture. We have also
begun to advance towards our first quarter 2014 net operating expense
goal, significantly reducing operating costs in the quarter." 
Summary Financial Highlights 


 
U.S. GAAP                                                                   
(Million US$)                                   Q1 2013   Q4 2012   Q1 2012 
                                               --------  --------  -------- 
Net Revenues (a)                                  2,009     2,162    
 2,017 
Gross Margin                                       31.3%     32.3%     29.6%
Operating Income (Loss), as reported               (281)     (730)     (352)
Net Income (Loss) attributable to parent                                    
 company                                           (171)     (428)     (176)

 
(a) Net revenues include sales recorded by ST-Ericsson as consolidated
by ST 


 
Non-U.S. GAAP*                                                              
Before impairment, restructuring and one-time                               
 items                                              Q1       Q4       Q1    
(Million US$)                                      2013     2012     2012   
                                                  ------   ------   ------  
Operating Income (Loss)                             (180)    (142)    (280) 
Operating Margin                                    (8.9%)   (6.5%)  (13.9%)
Operating Margin - Attributable to ST               (5.3%)   (3.3%)   (6.5%)

 
ST-Ericsson Information 
As announced on March 18, 2013, ST and Ericsson have agreed to the
transfer of certain ST-Ericsson employees and assets to the
respective parent companies and to the wind-down of the remaining
joint venture. The formal transfer of the relevant parts of
ST-Ericsson to the parent companies is expected to be completed
during the third quarter of 2013, subject to regulatory approvals. As
agreed, from March 2, 2013 and until completion of the wind-down,
Ericsson is assuming the funding of the LTE Modem business, and ST is
assuming the funding of the existing products and related business as
well as certain assembly and test facilities. Both shareholders are
assuming equal funding of the wind-down related activities. 
As previously disclosed, ST has estimated its total cash costs,
including covering ST-Ericsson's ongoing operations during the
transition period and restructuring costs related to the ST-Ericsson
wind-down, at between $350 million and $450 million of which, during
the 2013 first quarter, ST funded $83 million under the ST-Ericsson
parent facility. 
ST-Ericsson's net revenues in the first quarter of 2013 decreased 28%
sequentially to $256 million reflecting, as anticipated, the drop of
sales of legacy products to its prior larger customer, seasonal
factors, no revenues from licensing and softer market conditions.
ST-Ericsson's operating loss, excluding amortization of
acquisition-related intangibles and restructuring charges was $158
million in the first quarter of 2013, compared to a loss of $133
million and $297 million in the prior and year ago quarter,
respectively 
First Quarter Review 
ST's first quarter revenues, excluding the Wireless product line,
increased 1.3% year-over-year, and decreased 3.4% on a sequential
basis, reflecting better than normal seasonality. Overall, net
revenues decreased 0.4% and 7.1% on a year-over-year and sequential
basis, respectively.  
EMEA led all regions with 0.2% sequential revenue growth while the
Americas decreased by 3.3% and Japan & Korea were lower by 5.1%.
Greater China & South Asia revenues decreased 13.2% driven by
business dynamics at certain key global accounts. 
----- 
(*)Operating income (loss) before impairment, restructuring and
one-time items, operating margin before impairment, restructuring and
one-time items and operating margin before impairment, restructuring
and one-time items attributable to ST are non-U.S. GAAP measures.
Please refer to Attachment A for additional information explaining
why the Company believes these measures are important and
reconciliation to U.S. GAAP. 
First quarter gross profit was $628 million and gross margin was
31.3%. On a year-over-year basis, gross profit increased 5.4% and
gross margin improved 170 basis points. On a sequential basis, gross
margin declined 100 basis points and was in line with expectations,
reflecting no revenues from licensing at ST-Ericsson and the usual
negative price pressure we experience at the beginning of the year,
offset in part by lower unsaturation charges. 
R&D expenses were $533 million and declined by 16% on a year over
year basis period. On a sequential basis, R&D expenses decreased $52
million or 9% compared to the prior quarter, benefiting principally
from the ongoing restructuring initiatives at ST-Ericsson as well as,
starting March 2, 2013, the charge back to Ericsson of the LTE Modem
expenses of $29 million. 
SG&A expenses totaled $279 million in the first quarter, a reduction
of 10% compared to the year-ago period mainly due to cost reduction
initiatives. On a sequential basis, SG&A expenses decreased by 4%
mainly due to seasonality. 
Impairment, restructuring and other related closure costs for the
first quarter were $101 million, of which $87 million were related to
ST-Ericsson. Furthermore, ST recorded a charge of $8 million as loss
on equity-method investments related to ST-Ericsson JVD, which is
accounted for under the equity-method, primarily due to additional
restructuring charges. 
Operating margin before impairment, restructuring and one-time items
attributable to ST was a negative 5.3% in the 2013 first quarter
compared to negative 3.3% in the prior quarter.* 
In the first quarter of 2013, n
et loss attributable to
non-controlling interest was $126 million, which mainly included the
50% owned by Ericsson in the ST-Ericsson joint venture, as
consolidated by ST. In the fourth quarter of 2012, the corresponding
amount was $361 million. 
First quarter net loss was $171 million or $(0.19) per share,
compared to a net loss of $(0.48) and $(0.20) per share in the prior
and year-ago quarters, respectively. On an adjusted basis, net of
related taxes, ST reported non-U.S. GAAP net loss per share of
$(0.13) in the first quarter, excluding impairment and restructuring
charges and one-time items, compared to a net loss of $(0.11) and
$(0.14) per share in the prior and year-ago quarters, respectively.* 
For the first quarter of 2013, the effective average exchange rate
for the Company was approximately $1.31 to EUR 1.00 compared to $1.30
to EUR 1.00 for the fourth quarter of 2012 and $1.33 to EUR 1.00 for
the first quarter of 2012. 
Net Revenues by Market Channel 


 
Net Revenues By Market Channel(%)                 Q1 2013  Q4 2012  Q1 2012 
                                                  -------  -------  ------- 
Total OEM                                              75%      77%      79%
Distribution                                           25%      23%      21%

 
Revenues and Operating Results by ST Product Segment 
Effective January 1, 2013, the segment reporting of ST's results
reflects the new strategy announced on December 10, 2012:  


 
--  Sense & Power and Automotive Products (SPA), including Analog and
    MEMS (AMS), Automotive (APG), Industrial and Power Discrete (IPD) and
    Other SPA; and
--  Embedded Processing Solutions (EPS), comprised of Digital Convergence
    Group (DCG), Microcontrollers, Memory and Security (MMS), Imaging,
    Bi-CMOS ASIC and Silicon Photonics (IBP), Wireless (WPS) and Other
    EPS.

  
----- 
(*)Operating margin before impairment, restructuring and one-time items
attributable to ST and adjusted net earnings (loss) per share are
non-U.S. GAAP measures. For additional information and reconciliation
to U.S. GAAP, please refer to Attachment A.
 As a result of the
transition to the new strategy, Wireless, which is largely related to
ST-Ericsson as consolidated by ST, is included in ST's new Embedded
Processing Solutions product segment. ST has provided historical
quarterly information by Product Segment on page 6 of this press
release. 


 
                             Q1 2013            Q4 2012            Q1 2012  
                    Q1 2013 Operating  Q4 2012 Operating  Q1 2012 Operating 
 Operating Segment    Net     Income     Net     Income     Net     Income  
   (Million US$)   Revenues   (Loss)  Revenues   (Loss)  Revenues   (Loss)  
                   -------------------------------------------------------- 
Sense & Power and                                                           
 Automotive                                                                 
 Products(SPA)        1,127        58    1,184       106    1,107        93 
Embedded                                                                    
 Processing                                                                 
 Solutions                                                                  
 including                                                                  
 Wireless (EPS)(a)      867      (210)     964      (182)     901      (294)
Others (b)(c)            15      (129)      14      (654)       9      (151)
                   -------- --------- -------- --------- -------- --------- 
TOTAL                 2,009      (281)   2,162      (730)   2,017      (352)

 
(a) Embedded Processing Solutions includes the Wireless product line
which includes a portion of sales and operating results of
ST-Ericsson as consolidated in the Company's revenues and operating
results, as well as other items affecting operating results related
to the wireless business.
 (b) Net revenues of "Others" includes
revenues from sales of Subsystems, assembly services and other
revenues.
 (c) Operating income (loss) of "Others" includes items such
as unused capacity charges, impairment, restructuring charges and
other related closure costs, phase out and start-up costs, NXP
arbitration award and other unallocated expenses such as: strategic
or special research and development programs, certain corporate-level
operating expenses, patent claims and litigations, and other costs
that are not allocated to product groups, as well as operating
earnings of the Subsystems and Other Products Group. "Others"
includes $24 million, $66 million and $71 million of unused capacity
charges in the first quarter of 2013 and fourth and first quarters of
2012, respectively; and $101 million, $588 million and $18 million of
impairment, restructuring charges and other related closure costs in
the first quarter of 2013 and fourth and first quarters of 2012,
respectively. 
Sense & Power and Automotive Products (SPA) first quarter net
revenues decreased 4.8% sequentially, mainly due to, as expected,
lower sales of MEMS products partially offset by growth in Automotive
and Industrial & Power Discrete products. SPA revenues increased 1.8%
compared to the year-ago quarter driven by growth in MEMS and
Industrial & Power Discrete products partially offset by a decrease
in Automotive. SPA operating margin was 5.1% in the 2013 first
quarter compared to 9.0% and 8.4% in the prior and year-ago quarter,
respectively. 
Embedded Processing Solutions (EPS) first quarter net revenues
decreased 10.0% sequentially due to a significant decrease in
Wireless and Imaging revenues related to the usual seasonal effect
partially offset by growth of Microcontrollers and Digital
Convergence products. EPS segment revenues decreased 3.8% compared to
the year-ago quarter due to a decrease in Wireless and Imaging
related to certain wireless customers partially offset by growth in
Microcontrollers and Digital Convergence products. EPS segment
operating margin was negative 24.2% in the 2013 first quarter,
compared to negative 18.9% and negative 32.6% in the prior and
year-ago quarter, respectively. 
Cash Flow and Balance Sheet Highlights 
Free cash flow was negative $65 million in the first quarter,
principally related to ST-Ericsson, compared to positive $145 million
in the prior quarter.* 
Capital expenditure payments, net of proceeds from sales, were $111
million during the first quarter of 2013 compared to $78 million in
the prior quarter. 
Inventory decreased by $47 million to $1.31 billion at quarter end.
Inventory in the first quarter of 2013 was at 4.2 turns or 86 days,
compared to the year-ago period of 3.8 turns or 95 days. 
In the first quarter, the Company paid $455 million to redeem the
entire residual outstanding 2013 Senior bonds at maturity and paid to
shareholders quarterly cash dividends of $89 million.
----- 
(*)Free cash flow is a non-U.S. GAAP measure. For additional
information and reconciliation to U.S. GAAP, please refer to
Attachment A. 
ST continued to maintain a strong net financial position* with a net
cash position of $1.10 billion, as adjusted taking into account the
$83 million of ST-Ericsson's debt to our joint venture partner, at
March 30, 2013 compared to $1.19 billion at December 31, 2012. ST's
financial resources equaled $1.91 billion and total
 debt was $0.90
billion at March 30, 2013.* During the first quarter 2013, ST signed
a new Euro 350 million loan, multi-currency agreement with the
European Investment Bank which was undrawn as at March 30, 2013. 
Total equity, including non-controlling interest, was $5.95 billion
at quarter end. 
Second Quarter 2013 Business Outlook 
Mr. Bozotti stated, "While there is still a high level of market
volatility and macro-economic uncertainties, bookings excluding
Wireless, have continued to improve during the course of the first
quarter. We are encouraged by this trend although we believe it is
too early to assume this improvement is sustainable. In any case, we
believe we are well positioned to outperform the market based on our
new products within our five key growth drivers. 
"Turning to the second quarter, in terms of revenue we expect
broad-based growth in our businesses, excluding Wireless, driven by
Imaging, Microcontrollers, Analog & MEMS products and leading again
to better than seasonal revenue performance, with a sequential
increase of about 7% at the midpoint. Including Wireless, we expect
an overall revenue increase of about 3% at the midpoint of our
guidance. 
"We again expect significant reductions in operating expenses to be
visible in the second quarter as we make continued progress towards
the completion of the exit of the ST-Ericsson joint venture. In
addition, we anticipate gross margin to benefit from improved fab
loading and manufacturing performance during the second quarter." 
The Company expects second quarter 2013 revenues to grow sequentially
in the range of about +3%, plus or minus 3.5 percentage points. Gross
margin in the second quarter is expected to be about 32.7%, plus or
minus 2.0 percentage points, and assumes an improvement from the
first quarter amount from fab loading and manufacturing performance. 
This outlook is based on an assumed effective currency exchange rate
of approximately $1.29 = EUR 1.00 for the 2013 second quarter and
includes the impact of existing hedging contracts. The second quarter
will close on June 29, 2013. 
-----
  (*)Net financial position is a
non-U.S. GAAP measure. For additional information and reconciliation
to U.S. GAAP, please refer to Attachment A. 
Key Summary Financial Information 


 
Revenues                                                                    
(Million US$)                  Q112    Q212    Q312    Q412    FY12    Q113 
                             ------- ------- ------- ------- ------- -------
AMS                              301     297     324     396   1,320     313
APG                              391     404     391     368   1,554     385
IPD                              415     455     459     420   1,747     429
Other SPA                          -       -       1       -       1       -
SPA                            1,107   1,156   1,175   1,184   4,622   1,127
                             ------- ------- ------- ------- ------- -------
DCG                              208     229     234     217     888     225
IBP                              128     124      85     100     437      83
MMS                              275     284     296     293   1,147     299
WPS                              290     344     359     351   1,345     260
Other EPS                          -       -       6       3       9       -
EPS                              901     981     980     964   3,826     867
                             ------- ------- ------- ------- ------- -------
Others                             9      11      11      14      45      15
Total ST                       2,017   2,148   2,166   2,162   8,493   2,009
                             ------- ------- ------- ------- ------- -------
Operating                                                                   
Income (Loss):                                                              
(Million US$)                 Q112    Q212    Q312    Q412    FY12    Q113  
                            ------- ------- ------- ------- ------- ------- 
SPA                              93      97     114     106     409      58 
EPS                            (294)   (233)   (175)   (182)   (883)   (210)
Others                         (151)    (71)   (731)   (654) (1,607)   (129)
                            ------- ------- ------- ------- ------- ------- 
Total ST                       (352)   (207)   (792)   (730) (2,081)   (281)

 
Recent Corporate Developments  


 
--  On March 11, ST re-asserted its MEMS technology and patent leadership
    with the filing, by its U.S. subsidiary, STMicroelectronics, Inc., of
    a complaint with the United States International Trade Commission
    (ITC) requesting an investigation into the alleged infringement of
    five ST patents covering all of InvenSense, Inc.'s MEMS device
    offerings, as well as products from two of InvenSense's customers,
    Black and Decker, Inc. and Roku, Inc. As part of the filing, ST
    requested that the ITC issue an order excluding InvenSense's
    infringing gyroscopes and accelerometers, as well its customers'
    products that include those InvenSense devices, from importation into
    the United States.
--  On March 18, STMicroelectronics and Ericsson announced an agreement on
    the way forward for their joint venture, ST-Ericsson, that maximizes
    their respective future prospects and growth plans.

  
The main steps agreed upon to split up the JV are the following: 


 
--  Ericsson is taking on the design, development and sales of the LTE
    multimode thin modem products, including 2G, 3G and 4G multimode;
--  ST is taking on the existing ST-Ericsson products, other than LTE
    multimode thin modems, and related business as well as certain
    assembly and test facilities; and
--  The parent companies are starting the close down of the remaining
    parts of ST-Ericsson.

  
The companies have announced that the formal transfer of the relevant
parts of ST-Ericsson to the parent companies is expected to be
completed during the third quarter of 2013, subject to regulatory
approvals. They have proposed that Ericsson will assume approximately
1,800 employees and contractors, with the largest concentrations in
Sweden, Germany, India and China and also proposed that ST will
assume approximately 950 employees, primarily in France and in Italy,
to support ongoing business and new product development within ST. 
The companies also announced that Carlo Ferro was appointed President
and Chief Executive Officer of ST-Ericsson, effective April 1,
succeeding Didier Lamouche who left to pursue outside opportunities.
Ferro is leading the work in securing both business continuity of
ST-Ericsson and effective completion of the transition phase. 


 
--  On March 26, ST signed a new Euro 350 million loan agreement with the
    European Investment Bank (EIB). The facility, which has not yet been
    drawn by ST, is also available in the US$ equivalent amount and has an
    option for disbursement until September 2014 with final maturity eight
    years after disbursement. This new facility supports ST's activities
    in R&D and innovation related to the design and realization of the
    next generation of technologies and electronic devices. Furthermore,
    on March 17, 2013, ST repaid with available cash the residual Euro 350
    million floating-rate senior bonds outstanding with a principal amount
    of Euro 500 million at issuance.

  
Q1 2013 - Product and Technology Highlights  
During the quarter, ST made strong progress with important
new-product introductions and significant design wins. 
Sense & Power and Automotive (SPA) 
Analog & MEMS (AMS) 


 
--  Continued to collect multiple design wins for the low-power Spirit1
    radio to transmit sensor data in industrial applications.
--  Started production of a 6-axis MEMS device, with 100% market share in
    the flagship model of an Asian Smartphone manufacturer.
--  Started production of an Accelerometer for A
irbag.
--  Began production of the Active Noise Cancelation chip developed with
    SoundChip for an important Asian gaming manufacturer.

  
Industrial and Power Discrete (IPD) 


 
--  Secured wins with a major European consumer manufacturer for a
    high-voltage gate driver for washing-machine applications and for
    high-voltage converters to be used in coffee machines and washing
    machines for several major European manufacturers.
--  Achieved a major win with a top-tier Chinese networking manufacturer
    for resonant controllers for a telecom power application.
--  Earned design wins for electronic fuses with a major HDD manufacturer
    for a high-volume platform and for advanced point-of-load controllers
    with an important US computer manufacturer.
--  Ramping a new LED lighting platform for a major US LED manufacturer, a
    new printer device in the latest Bipolar-CMOS-DMOS smart-power
    (BCD8sp) technology for a major US manufacturer and the newest AMOLED
    driver for a market-leading Korean manufacturer.
--  Quickly scored design wins for the RF-antenna tuner solution presented
    during 2013 Mobile World Congress tradeshow with major mobile phone,
    tablet and platform makers.
--  Registered multiple wins for silicon-carbide power diodes in
    high-power server applications.
--  Landed multiple wins for intelligent power modules from home-appliance
    leaders in the US and Europe.
--  Earned big design wins for very-high-voltage super-junction MOSFETs
    with a European lighting leader and for high-voltage devices in Japan
    and Korea for Switched-Mode Power Supply, Gaming and LED applications.
--  Captured significant design wins for high-voltage IGBTs
    (Insulated-Gate Bipolar Transistors) in Induction Heating, Inverter
    Drives, and Sewing Machines.
--  Started production of a new MOSFET series for the low-power LED market
    in China.
--  Ramped the STripFET VII DeepGATE technology program for a Server &
    Adapter market leader.

  
Automotive (APG) 


 
--  Reinforced strong position in braking applications with the awarding
    of a chip for a next-generation anti-lock braking system with one of
    the major global Tier 1s.
--  Launched production of a Teseo II-based active GNSS antenna for
    navigation systems for a Japanese OEM and began production of an
    advanced telematics systems using the multi-constellation positioning
    capabilities of Teseo II for a major European car maker.
--  Cemented standing as the market leader with the landing of an award
    for an integrated parking-brake solution with the worldwide Tier 1
    leader in braking.
--  Earned an award for a full chipset for a gasoline direct-injection
    engine controller with an important Chinese OEM and landed a win, the
    first resuting from a collaboration with a strategic Asian customer,
    for an injector driver for a gasoline direct-injection engine
    controller.
--  With ST's high-quality power-amplifier ICs having contributed to
    Alpine's Audio/Video/Navigation systems winning the Auto Sound Grand
    Prix, ST is now ramping production of the new power-amplifier ICs for
    the newest model at Alpine and other major Japanese car-audio makers.
--  Captured awards for high-content car body-control modules from several
    global Tier 1s.

  
Embedded Processing Solutions (EPS) 
Microcontrollers, Memory and Security (MMS) 


 
--  Increased STM32 design-in momentum with, among others, an automotive
    voice-recognition system at a Japanese OEM, and a display card at a
    world leader in digital security.
--  Began shipping high-end STM32 microcontrollers to a leading supplier
    of optical touch panels and touch-screen components.
--  Earned strong adoption of the ST31, a secure 32-bit MCU, in contact
    and contactless banking applications.
--  Ramped production of an embedded Secure Element for a high-end
    Smartphone at a key OEM.
--  Landed a win for the 64k dual-interface EEPROM in a home appliance
    with a major global OEM.
--  Captured design wins for Serial EEPROM for storing NFC parameters with
    several major Chinese cellular-phone manufacturers.
--  Announced NEC CASIO Mobile Communications is using ST NFC controller
    IC in the exciting G'zOne CA-201L smartphone.

  
Digital Convergence (DCG) 


 
--  Earned several design wins for ASICs to be manufactured in 28nm FD-SOI
    technology.
--  Captured a significant design win for Orly in a home-gateway
    application for a large European manufacturer.
--  Won designs for high-end multimedia monitor controllers and
    DisplayPort transmitters for a 4kx2k project and for 24" daisy-chain
    monitors for a large global computer manufacturer.
--  Started shipments of Advanced HDMI to DisplayPort converters to a
    large Taiwanese manufacturer.
--  ST's Orly system-on-chip (SoC) has been selected by Sumitomo Electric
    Networks, Inc., a major Japanese manufacturer for the advanced
    generation of smart IPTV set-top boxes from NTT Plala Inc., a leading
    service provider.

  
Imaging, Bi-CMOS ASIC and Silicon Photonics (IBP) 


 
--  Achieved volume deliveries to camera integrators of innovative image
    sensors using ST's proprietary backside-illumination (BSI) technology
    and to a leading smart-phone manufacturer of the matching
    high-performance digital-imaging-processing chip to support the unique
    imaging capabilities of some of their handsets.

  
Use of Supplemental Non-U.S. GAAP Financial Information  
This press release contains supplemental non-U.S. GAAP financial
information, including operating income (loss) before impairment,
restructuring and one-time items, operating margin before impairment,
restructuring and one-time items, operating margin before impairment,
restructuring and one-time items attributable to ST, adjusted net
earnings, adjusted net earnings per share, free cash flow, net
financial position and net financial position, adjusted to account
for 50% investment in ST-Ericsson. 
Readers are cautioned that these measures are unaudited and not
prepared in accordance with U.S. GAAP and should not be considered as
a substitute for U.S. GAAP financial measures. In addition, such
non-U.S. GAAP financial measures may not be comparable to similarly
titled information by other companies. 
See Attachment A of this press release for a reconciliation of the
Company's non-U.S. GAAP financial measures to their corresponding
U.S. GAAP financial measures. To compensate for these limitations,
the supplemental non-U.S. GAAP financial information should not be
read in isolation, but only in conjunction with the Company's
consolidated financial statements prepared in accordance with U.S.
GAAP. 
Forward-looking information  
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) that are based on management's current
views and assumptions, and are conditioned upon and also involve
known and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
anticipated by such statements, due to, among other factors: 


 
--  uncertain macro-economic and industry trends;
--  customer demand and acceptance for the products which we design,
    manufacture and sell;
--  unanticipated events or circumstances which may delay implementation
    as planned of the recently announced split up of ST-Ericsson as agreed
    with Ericsson;
--  our ability to execute the planned reductions in our net operating
    expenses;
--  the loading and the manufacturing performances of our production
    facilities;
--  variations in the foreign exchange markets and, more particularly, in
    the rate of 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;
--  restructuring charges and associated 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;
--  natural events such as severe weather, earthquakes, tsunami, volcano
    eruptions or other acts of nature, health risks and epidemics in
    locations where we, our customers or our suppliers operate;
--  changes in economic, social, 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
    conflict, social unrest or terrorist activities;
--  availability and costs of raw materials, utilities, third-party
    manufacturing services, or other supplies required by our operations;

  
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. Certain forward-looking statements can be identified by
the use of forward looking terminology, such as "believes,"
"expects," "may," "are expected to," "should," "would be," "seeks" or
"anticipates" or similar expressions or the negative thereof or other
variations thereof or comparable terminology, or by discussions of
strategy, plans or intentions. 
Some of these risk factors 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, 2012, as
filed with the SEC on March 4, 2013. 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 industry
information or forward-looking statements set forth in this release
to reflect subsequent events or circumstances. 
STMicroelectronics Conference Call and Webcast Information  
On April 23, 2013, the management of STMicroelectronics will conduct
a conference call to discuss the Company's operating performance for
the first quarter of 2013. 
The conference call will be held at 9:00 a.m. U.S. Eastern Time /
3:00 p.m. CET. The conference call will be available live via the
Internet by accessing 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 May 3, 2013. 
About STMicroelectronics
 ST is a global leader in the semiconductor
market serving customers across the spectrum of sense and power and
automotive products and embedded processing solutions. From energy
management and savings to trust and data security, from healthcare
and wellness to smart consumer devices, in the home, car and office,
at work and at play, ST is found everywhere microelectronics make a
positive and innovative contribution to people's life. By getting
more from technology to get more from life, ST stands for
life.augmented. 
In 2012, the Company's net revenues were $8.49 billion. Further
information on ST can be found at www.st.com. 
(tables attached) 


 
STMicroelectronics N.V.                                                     
Consolidated Statements of Income                                           
(in millions of U.S. dollars, except per share                              
 data ($))                                                                  
                                                                            
                                                      Three Months Ended    
                                                   ------------------------ 
                                                   (Unaudited)  (Unaudited) 
                                                   -----------  ----------- 
                                                     March 30,    March 31, 
                                                          2013         2012 
                                                   -----------  ----------- 
                                                                            
Net sales                                                2.003        2.010 
Other revenues                                               6            7 
                                                   -----------  ----------- 
  NET REVENUES                                           2.009        2.017 
Cost of sales                                           (1.381)      (1.421)
                                                   -----------  ----------- 
  GROSS PROFIT                                             628          596 
Selling, general and administrative                       (279)        (310)
Research and development                                  (533)        (633)
Other income and expenses, net                               4           13 
Impairment, restructuring charges and other                                 
 related closure costs                                    (101)         (18)
                                                   -----------  ----------- 
  Total Operating Expenses                                (909)        (948)
                                                   -----------  ----------- 
  OPERATING LOSS                                          (281)        (352)
Interest expense, net                                       (7)         (13)
Loss on equity-method investments                          (13)          (7)
Gain on financial instruments, net                           -            3 
LOSS BEFORE INCOME TAXES                                  (301)        (369)
AND NONCONTROLLING INTEREST                                                 
Income tax benefit                                           4           34 
                                                   -----------  ----------- 
  NET LOSS                                                (297)        (335)
Net loss (income) attributable to noncontrolling                            
 interest                                                  126          159 
                                                   -----------  ----------- 
  NET LOSS ATTRIBUTABLE TO PARENT COMPANY                 (171)        (176)
                                                   ===========  =========== 
                                                                            
  EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO                                
   PARENT COMPANY STOCKHOLDERS                           (0,19)       (0,20)
  EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO                              
   PARENT COMPANY STOCKHOLDERS                           (0,19)       (0,20)
                                                                            
  NUMBER OF WEIGHTED AVERAGE                                                
  SHARES USED IN CALCULATING                                                
  DILUTED EARNINGS PER SHARE                             888,0        885,0 
                                                                            
                                                                            
                                   
                                         
STMicroelectronics N.V.                                                     
CONSOLIDATED BALANCE SHEETS                                                 
                                                                            
As at                                   March 30,  December 31,   March 31, 
In millions of U.S. dollars               2013         2012         2012    
                                      ------------ ------------ ------------
                                       (Unaudited)    Audited    (Unaudited)
ASSETS                                                                      
Current assets:                                                             
Cash and cash equivalents                    1.718        2.250        2.059
Restricted cash                                  -            -            3
Short-term deposits                              1            1            -
Marketable securities                          187          238          154
Trade accounts receivable, net               1.025        1.005          971
Inventories                                  1.306        1.353        1.508
Deferred tax assets                            141          137          170
Assets held for sale                            37            -           22
Other current assets                           501          518          589
                                      ------------ ------------ ------------
Total current assets                         4.916        5.502        5.476
Goodwill                                       140          141        1.064
Other intangible assets, net                   208          213          608
Property, plant and equipment, net           3.275        3.481        3.826
Non-current deferred tax assets                439          414          371
Restricted cash                                  4            4            4
Long-term investments                          110          119          116
Other non-current assets                       540          560          420
                                      ------------ ------------ ------------
                                             4.716        4.932        6.409
Total assets                                 9.632       10.434       11.885
                                                                            
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
Short-term debt                                250          630        1.076
Trade accounts payable                         862          797          781
Other payables and accrued                                                  
 liabilities                                   997          942          987
Dividends payable to stockholders                -           89            -
Deferred tax liabilities                        11           11           15
Accrued income tax                              77           86           94
                                      ------------ ------------ ------------
Total current liabilities                    2.197        2.555        2.953
Long-term debt                                 647          671          366
Post-retirement benefit obligations            474          477          425
Long-term deferred tax liabilities              15           14           22
Other long-term liabilities                    351          353          275
                                      ------------ ------------ ------------
                                             1.487        1.515        1.088
Total liabilities                            3.684        4.070        4.041
Commitment and contingencies                                                
Equity                                                                      
Parent company stockholders' equity                                         
Common stock (preferred stock:                                              
 540,000,000 sharesauthorized, not                                          
 issued; common stock: Euro 1.04                                            
 nominalvalue, 1,200,000,000 shares                                         
 authorized, 910,559,805shares                                              
 issued, 887,967,172 shares                                                 
 outstanding)                                1.156        1.156        1.156
Capital surplus                              2.559        2.555        2.550
Retained earnings                            1.788        1.959        3.328
Accumulated other comprehensive                                             
 income                                        673          794          837
Treasury stock                                -239         -239         -271
                                      ------------ ------------ ------------
Total parent company stockholders'                                          
 equity                                      5.937        6.225        7.600
Noncontrolling interest                         11          139          244
                                      ------------ ------------ ------------
Total equity                                 5.948        6.364        7.844
                                      ------------ ------------ ------------
Total liabilities and equity                 9.632       10.434       11.885
                                      ------------ ------------ ------------
                                                                            
                                                                            
                                                                            
STMicroelectronics N.V.                                                     
                                                                            
                          SELECTED CASH FLOW DATA                           
                                                                            
Cash Flow Data (in US$ millions)             Q1 2013    Q4 2012    Q1 2012  
                                            ---------  ---------  --------- 
                                                                            
Net Cash from operating activities                 66        252        250 
Net Cash from (used in) investing                                           
 activities                                       (81)      (107)       113 
Net Cash from (used in) financing                                           
 activities                                      (481)       406       (225)
Net Cash increase (decrease)                     (532)       564        147 
                                                                            
                                                                            
Selected Cash Flow Data (in US$ millions)    Q1 2013    Q4 2012    Q1 2012  
                                            ---------  ---------  --------- 
                                                                            
Depreciation & amortization                       237        272        288 
Net payment for Capital expenditures             (111)       (78)      (125)
Dividends paid to stockholders                    (89)       (89)       (88)
Change in inventories, net                         30        143         46 

 
(Attachment A) 
STMicroelectronics
 Supplemental Non-U.S. GAAP
Financial Information
 U. S. GAAP - Non-U.S. GAAP Reconciliation
 In
Million US$ Except Per Share Data 
The supplemental non-U.S. GAAP information presented in this press
release is unaudited and subject to inherent limitations. Such
non-U.S. GAAP information is not based on any comprehensive set of
accounting rules or principles and should not be considered as a
substitute for U.S. GAAP measurements. Also, our suppleme
ntal
non-U.S. GAAP financial information may not be comparable to
similarly titled non-U.S. GAAP measures used by other companies.
Further, specific limitations for individual non-U.S. GAAP measures,
and the reasons for presenting non-U.S. GAAP financial information,
are set forth in the paragraphs below. To compensate for these
limitations, the supplemental non-U.S. GAAP financial information
should not be read in isolation, but only in conjunction with our
consolidated financial statements prepared in accordance with U.S.
GAAP. 
Operating income (loss) before, impairment, restructuring and
one-time items is used by management to help enhance an understanding
of ongoing operations and to communicate the impact of the excluded
items, such as impairment, restructuring charges and other related
closure costs. Adjusted net earnings and earnings per share (EPS) are
used by management to help enhance an understanding of ongoing
operations and to communicate the impact of the excluded items like
impairment, restructuring charges and other related closure costs
attributable to ST and other one-time items, net of the relevant tax
impact. 
Operating income (loss) before impairment, restructuring and one-time
items attributable to ST is calculated as operating income (loss)
before impairment, restructuring and one-time items excluding 50% of
ST-Ericsson operating income (loss) before impairment, restructuring
and one-time items as consolidated by ST. Operating margin before
impairment, restructuring and one-time items attributable to ST is
calculated as operating income (loss) before restructuring
attributable to ST divided by reported revenues excluding 50% of
ST-Ericsson revenues as consolidated by ST. 
The Company believes that these non-GAAP financial measures provide
useful information for investors and management because they measure
the Company's capacity to generate profits from its business
operations, excluding the effect of acquisitions and expenses related
to the rationalizing of its activities and sites that it does not
consider to be part of its on-going operating results, thereby
offering, when read in conjunction with the Company's GAAP
financials, (i) the ability to make more meaningful period-to-period
comparisons of the Company's on-going operating results, (ii) the
ability to better identify trends in the Company's business and
perform related trend analysis, and (iii) an easier way to compare
the Company's results of operations against investor and analyst
financial models and valuations, which usually exclude these items. 


 
Q1 2013                                 Operating                           
(US$ millions and cents per     Gross     Income      Net     Corresponding 
 share)                         Profit    (loss)    Earnings       EPS      
                              --------- ---------  ---------  ------------- 
U.S. GAAP                           628      (281)      (171)         (0.19)
Impairment & Restructuring                    101         58                
Estimated Income Tax Effect                               (3)               
Non-U.S GAAP                        628      (180)      (116)         (0.13)
                                                                            
Q4 2012                                  Operating                          
(US$ millions and cents per     Gross     Income       Net    Corresponding 
 share)                         Profit    (loss)    Earnings       EPS      
                              --------- ----------  --------  ------------- 
U.S. GAAP                           697       (730)     (428)         (0.48)
Impairment & Restructuring                     588       307                
Estimated Income Tax Effect                               (1)               
Income Tax at ST Ericsson                                 26                
Non-U.S GAAP                        697       (142)      (96)         (0.11)
                                                                            
Q1 2012                                 Operating                           
(US$ millions and cents per     Gross    Income       Net     Corresponding 
 share)                        Profit    (loss)     Earnings   EPS (basic)  
                              -------- ----------  ---------  ------------- 
U.S. GAAP                          596       (352)      (176)         (0.20)
Impairment & Restructuring                     18         13                
NXP Arbitration Award               53         54         56                
Estimated Income Tax Effect                              (13)               
Non-U.S GAAP                       649       (280)      (120)         (0.14)

 
(continued) 
(Attachment A - continued) 
Net financial position: resources (debt), represents the balance
between our total financial resources and our total financial debt.
Our total financial resources include cash and cash equivalents,
marketable securities, short-term deposits and restricted cash, and
our total financial debt includes short-term borrowings, current
portion of long-term debt and long-term debt, all as reported in our
consolidated balance sheet. We believe our net financial position
provides useful information for investors because it gives evidence
of our global position either in terms of net indebtedness or net
cash position by measuring our capital resources based on cash, cash
equivalents and marketable securities and the total level of our
financial indebtedness. Net financial position is not a U.S. GAAP
measure. 


 
                                                 March   December    March  
Net Financial Position (in US$ millions)       30, 2013  31, 2012  31, 2012 
                                               --------  --------  -------- 
Cash and cash equivalents                         1,718     2,250     2,059 
Marketable securities                               187       238       154 
Short-term deposits                                   1         1         - 
Restricted cash                                       -         -         3 
Non-current restricted cash                           4         4         4 
Total financial resources                         1,910     2,493     2,220 
                                               --------  --------  -------- 
Short-term borrowings and current portion of                                
 long-term debt                                    (250)     (630)   (1,076)
Long-term debt                                     (647)     (671)     (366)
Total financial debt                               (897)   (1,301)   (1,442)
                                               --------  --------  -------- 
Net financial position                            1,013     1,192       778 
                                                                            
Net financial position, adjusted to account                                 
 for 50%investment in ST-Ericsson                 1,096     1,192     1,267 

 
Free cash flow is defined as net cash from operating activities minus
net cash from (used in) investing activities, excluding proceeds from
the sale of marketable securities. We believe free cash flow provides
useful information for investors and management because it measures
our capacity to generate cash from our operating and investing
activities to sustain our operating activities. Free cash flow is not
a U.S. GAAP measure and does not represent total cash flow since it
does not include the cash flows generated by or used in financing
activities. In addition, our definition of free cash flow may differ
from definitions used by other companies. 


 
Free cash flow (in US$ millions)                Q1 2013   Q4 2012   Q1 2012 
                                               --------  --------  -------- 
Net cash from operating activities                   66       252       250 
Net cash from (used in) investing activities        (81)     (107)      113 
Proceeds from sale o
f marketable securities         (50)        -      (265)
Free cash flow                                      (65)      145        98 

 
--end--- 
ST Q1 2103 earnings: http://hugin.info/152740/R/1695124/557720.pdf  
For further information, please contact: 
INVESTOR RELATIONS:
Tait Sorensen
Group VP, Investor Relations
STMicroelectronics
Tel: +1 602 485 2064
tait.sorensen@st.com  
MEDIA RELATIONS:
Nelly Dimey
Director, Corporate Media and Public Relations
STMicroelectronics
Tel: +33 158 077 785
nelly.dimey@st.com 
 
 
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