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STMicroelectronics Reports 2013 Third Quarter and Nine Month Financial Results



STMicroelectronics Reports 2013 Third Quarter and Nine Month Financial Results

  * Third quarter net revenues $2.01 billion; excluding Wireless product line
    up 3.9% year-over-year and 0.5% sequentially
  * Third quarter operating income was a profit of $54 million before
    impairment and restructuring charges
  * Transaction to split up ST-Ericsson completed

GENEVA, Switzerland , Oct. 22, 2013 (GLOBE NEWSWIRE) -- STMicroelectronics
(NYSE:STM), a global semiconductor leader serving customers across the
spectrum of electronics applications, reported financial results for the third
quarter and nine months ending September 28, 2013.

Third quarter net revenues totaled $2,013 million and gross margin was 32.4%.
ST's third quarter net loss was $142 million as the Company took a charge of
$120 million, mostly non-cash, in connection with its annual third quarter
impairment review and already announced restructuring initiatives.

"Our financial performance during the third quarter was mixed. On one hand, we
saw overall year-over-year revenue improvement of 3.9 percent across our
business outside of the Wireless product line. We believe this exceeds the
year-over-year revenue performance of our served market. On the other hand,
this growth was milder than expected due to a muted order pattern during the
quarter driven by softness in high-end smartphones in Asia and the mass market
in Asia, including the cable set-top box market in certain countries," said ST
President and CEO Carlo Bozotti.

"However, we did see sequential growth in Imaging, Microcontrollers, MEMS, and
Automotive. In particular, Microcontrollers posted record quarterly billings
led by our general-purpose products.

"During the third quarter the Company posted an operating profit before
impairment and restructuring charges. ST's operating income excluding these
charges was $54 million, improving by $118 million on a sequential basis. This
is due in large part to the sale of ST-Ericsson's Global Navigation Satellite
System business along with lower operating expenses.

"In August, we completed the transaction to split up ST-Ericsson in a timely
manner. With this we are strengthening our product development in key areas
where we see important customer expansion opportunities including embedded
processing, RF, analog and power."

Summary Financial Highlights

                                                              
U.S. GAAP                          Q3 2013      Q2 2013      Q3 2012
(Million US$)
Net Revenues ^(a)                  2,013        2,045        2,166
Gross Margin                       32.4%        32.8%        34.8%
Operating Income (Loss), as        (66)         (107)        (792)
reported
Net Income (Loss) attributable to  (142)        (152)        (478)
parent company ^(b)
(a) Net revenues include sales recorded by ST-Ericsson as consolidated        
by ST
(b) Includes a loss on equity-method investment of $8 million, $89
million and $4 million in the third and second quarters of 2013 and the       
third quarter of 2012, respectively

                                                                        
Non-U.S. GAAP*
Before impairment and restructuring charges (Million   Q3 2013 Q2 2013 Q3 2012
US$)
Operating Income (Loss)                                54      (64)    (79)
Operating Margin                                       2.7%    (3.1%)  (3.6%)

Completion of ST-Ericsson Transaction

On August 2, 2013, ST and Ericsson completed in a timely manner, with lower
exit costs than anticipated and with a minimized social impact, the
transaction to transfer the activities of ST-Ericsson to the respective parent
companies. With this, approximately 1,000 employees have joined ST. ST has
taken on the existing ST-Ericsson products, other than LTE multimode thin
modems and the GNSS (Global Navigation Satellite System) connectivity solution
sold to a third party, and related business as well as certain assembly and
test facilities.

The wind down of the remaining parts of ST-Ericsson is ongoing and both
parents are assuming equal funding of the wind-down activities. As previously
communicated, ST and Ericsson have taken the expenses and the margin of their
respective activities since March 2, 2013.

Third Quarter Review

Effective as of September 1, 2013, ST has deconsolidated ST-Ericsson.

Overall, net revenues decreased 1.6% sequentially and 7.1% on a year-over-year
basis. On a sequential basis by region of origin, the Americas and Japan &
Korea posted growth of 4.0% and 3.7%, respectively, while EMEA and Greater
China & South Asia decreased by 3.6% and 9.0%, respectively.

ST's third quarter revenues, excluding the Wireless product line, increased
0.5% and 3.9% on a sequential and year-over-year basis, respectively.
Sequential and year-over-year growth was driven by Imaging, Microcontrollers,
MEMS and Automotive.

Third quarter gross profit was $652 million and gross margin was 32.4%. On a
sequential basis, gross margin declined 40 basis points, below the mid-point
of our third quarter guidance range primarily due to the higher than expected
weight of wireless legacy products, as well as negative currency effects.

R&D expenses were $423 million in the third quarter representing a sequential
decrease of $30 million or 7%, benefiting principally from the wind-down of
the ST-Ericsson joint venture and seasonality in Europe. R&D expenses declined
by 27% compared to $578 million in the year-ago period.

-----

(*)Operating income (loss) before impairment and restructuring charges and
operating margin before impairment and restructuring charges 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.

SG&A expenses totaled $253 million in the third quarter decreasing 11% on a
sequential basis mainly due to seasonality and the ST-Ericsson wind down. SG&A
expenses decreased 8% compared to the year-ago amount of $274 million.

Other Income and Expenses registered income of $78 million in the third
quarter mainly benefiting from the sale of ST-Ericsson's Global Navigation
Satellite System business to a third party and other sale of assets for a $80
million gain.

Impairment, restructuring and other related closure costs for the third
quarter were $120 million, and mainly included a non-cash charge of $56
million for the impairment of Digital Convergence Group goodwill and
intangible assets, a non-cash charge of $33 million for the impairment of
tangible assets and restructuring costs of $29 million, compared to $43
million in the prior quarter.

Income tax expense was $49 million in the third quarter including expense for
deferred tax assets valuation allowance and re-alignment of the year-to-date
tax expense to reflect updated projections for the full year.

In the third quarter of 2013, net earnings attributable to non-controlling
interest was an expense of $17 million, which mainly included the 50% owned by
Ericsson in the ST-Ericsson joint venture, as consolidated by ST. In the
second quarter of 2013, the corresponding amount was income of $21 million.

Third quarter net loss was $142 million or $(0.16) per share, compared to a
net loss of $(0.17) and $(0.54) per share in the prior and year-ago quarter,
respectively. On an adjusted basis, net of related taxes, ST reported a
non-U.S. GAAP net loss per share estimated at $(0.03) in the third quarter
excluding impairment and restructuring charges and one-time items compared to
a net loss estimated at $(0.06) and $(0.03) per share in the prior and
year-ago quarter, respectively.*

For the third quarter of 2013, the effective average exchange rate for the
Company was approximately $1.31 to €1.00 compared to $1.30 to €1.00 for the
second quarter of 2013 and $1.29 to €1.00 for the third quarter of 2012.

Net Revenues Summary

                                                                   
Net Revenues By Product Line and Segment          Q3 2013 Q2 2013 Q3 2012
(Million US$)
Analog & MEMS (AMS)                               329     327     324
Automotive (APG)                                  418     416     391
Industrial & Power Discrete (IPD)                 458     466     459
Other SP&A                                        --      --      1
Sense & Power and Automotive Products (SP&A)      1,205   1,209   1,175
Digital Convergence Group (DCG)                   163     189     234
Imaging, BiCMOS, ASIC and Silicon Photonics (IBP) 144     108     85
Microcontrollers, Memory & Security (MMS)         360     351     296
Wireless (WPS)                                    135     176     359
Other EPS                                         --      --      6
Embedded Processing Solutions (EPS)               802     824     980
Others                                            6       12      11
Total                                             2,013   2,045   2,166

-----

(*) Adjusted net earnings per share is a non-U.S. GAAP measure. For additional
information and reconciliation to U.S. GAAP, please refer to Attachment A.

                                                    
Net Revenues By Market Channel (%) Q3 2013 Q2 2013 Q3 2012
Total OEM                          75%     74%     76%
Distribution                       25%     26%     24%

Revenues and Operating Results by ST Product Segment

                                                                      
Operating             Q3 2013  Q3 2013   Q2 2013  Q2 2013   Q3 2012  Q3 2012
Segment               Net      Operating Net      Operating Net      Operating
(Million US$)         Revenues Income    Revenues Income    Revenues Income
                               (Loss)             (Loss)             (Loss)
Sense & Power and
Automotive Products   1,205    75        1,209    42        1,175    114
(SP&A)
Embedded Processing
Solutions including   802      (18)      824      (106)     980      (175)
Wireless product line
(EPS)^(a)
Others ^(b)(c)        6        (123)     12       (43)      11       (731)
TOTAL                 2,013    (66)      2,045    (107)     2,166    (792)

^(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, 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 $0 million, $2
million and $19 million of unused capacity charges in the third and second
quarters of 2013 and third quarter of 2012, respectively; and $120 million,
$43 million and $713 million of impairment, restructuring charges and other
related closure costs in the third and second quarters of 2013 and third
quarter of 2012, respectively.

Sense & Power and Automotive Products (SP&A) third quarter net revenues
decreased 0.4% sequentially, due to lower volumes in Industrial and Power
products partially offset by slight growth in AMS and APG. SP&A revenues
increased 2.6% compared to the year-ago quarter driven by APG. SP&A operating
margin was 6.2% in the 2013 third quarter compared to 3.5% and 9.7% in the
prior and year-ago quarter, respectively, with the sequential increase
principally driven by lower operating expenses.  

Embedded Processing Solutions (EPS) third quarter net revenues decreased 2.7%
and 18.2% on a sequential and year-over-year basis, respectively, due to a
significant decrease in WPS sales and to a lesser extent, overall lower DCG
sales despite the strong growth in IBP and MMS. EPS segment operating margin
improved to negative 2.2% in the 2013 third quarter, from negative 12.8% and
negative 17.8% in the prior and year-ago quarter, respectively, mainly due to
a significant reduction in expenses and a $75 million gain from the sale of
businesses.

Cash Flow and Balance Sheet Highlights

Free cash flow* was negative, as anticipated, at $72 million in the third
quarter compared to negative $134 million in the prior quarter.

Capital expenditure payments, net of proceeds from sales, were $166 million
during the third quarter of 2013 compared to $121 million in the prior
quarter.

-----

(*)Free cash flow is a non-U.S. GAAP measure. For additional information and
reconciliation to U.S. GAAP, please refer to Attachment A.

Inventory decreased by $20 million to $1.32 billion at quarter end. Inventory
in the third quarter of 2013 was at 4.1 turns or 88 days, flat compared to the
prior quarter.

In the third quarter, dividends paid to stockholders were $93 million.

As expected, ST's net financial position* was a net cash position of $739
million at September 28, 2013, compared to $954 million, adjusted by $145
million of ST-Ericsson's debt to our joint venture partner, at June 29, 2013.
ST's financial resources equaled $1.53 billion and total debt was $787 million
at September 28, 2013.

Total equity, including non-controlling interest, was $5.81 billion at quarter
end.

Nine Months 2013 Results

Net revenues decreased 4.2% to $6.07 billion from $6.33 billion in the
year-ago period mainly reflecting lower Wireless product line sales. Net
revenues for the first nine months of 2013, excluding the Wireless product
line, increased 3.0% to $5.50 billion.

Gross margin was 32.2% of net revenues, compared to 32.9% of net revenues for
the first nine months of 2012. Net loss, as reported, was $464 million in the
first nine months of 2013, or $(0.52) per share, compared to a net loss of
$730 million, or $(0.82) per share in the first nine months of 2012. On an
adjusted basis, net of related taxes, ST reported a non-U.S. GAAP net loss per
share estimated at $(0.22) excluding impairment and restructuring charges and
one-time items in the first nine months of 2013, at the same level as the
first nine months of 2012.*

The effective average exchange rate for the Company was approximately $1.30 to
€1.00 for the first nine months of 2013, compared to $1.31 to €1.00 for the
first nine months of 2012.

Nine Months Revenue and Operating Results by Product Segment

                                                                 
Operating Segment        Nine Months Nine Months    Nine Months Nine Months
(In Million US$)         2013 Net    2013 Operating 2012 Net    2012 Operating
                         Revenues    Income (Loss)  Revenues    Income (Loss)
Sense & Power and
Automotive Products      3,542       174            3,437       303
 (SP&A)
Embedded Processing
Solutions including      2,493       (333)          2,863       (701)
Wireless product line
(EPS)
 Others                  32          (294)          31          (954)
 TOTAL                   6,067       (453)          6,331       (1,352)

-----

* Net financial position and adjusted net earnings per share are non-US GAAP
measures. For additional information and reconciliation to U.S. GAAP, please
refer to Attachment A.

Fourth Quarter 2013 Business Outlook

Mr. Bozotti stated, "In the third quarter we began to experience a softening
of bookings with the exception of automotive. We believe this is a reflection
of a demand correction in the semiconductor industry. For the fourth quarter,
we anticipate a relatively flat sequential revenue performance. Nevertheless,
we anticipate seeing a return to positive cash flow generation as a result of
the wind-down of ST-Ericsson.

"We are confident in our ability to turn our significant business
opportunities into revenue. Our innovative products and technologies in MEMS
and Sensors, Smart Power, Automotive, Microcontrollers and Set-top box/Home
Gateway, are gaining greater traction with customers and will enable us to
further expand our customer base.

"We continue to aggressively pursue our objective to reach an operating margin
of about 10 percent. Our initiatives to reduce costs, such as achieving our
net operating expenses target, and improving our manufacturing, are on track.
However, the timing for us to achieve our operating margin target will depend
greatly on our level of revenues. Based on current visibility including market
conditions, reaching this operating margin target is now expected in mid-2015,
about six months later than originally expected."

The Company expects fourth quarter 2013 revenues to be about flat on a
sequential basis, plus or minus 3.5 percentage points. Gross margin in the
fourth quarter is expected to be about 33.0%, plus or minus 2.0 percentage
points.

Net operating expenses target in the range of $600 million to $650 million
average per quarter include SG&A and R&D expenses including R&D grants.

The resolution to distribute a cash dividend of US$0.10 per outstanding common
share for each of the fourth quarter of 2013 and first quarter of 2014 has
been submitted for shareholder adoption at the forthcoming Extraordinary
General Meeting of Shareholders which will be held in Schiphol, The
Netherlands, on December 2, 2013.

This outlook is based on an assumed effective currency exchange rate of
approximately $1.34 =€1.00 for the 2013 fourth quarter and includes the impact
of existing hedging contracts. The fourth quarter will close on December 31,
2013.

Recent Corporate Developments

On July 22, ST announced the Nano2017 Research and Development program, a
five-year public-private strategic R&D program led by ST to further advance
the company's leadership in key embedded processing solutions and
technologies.

The project draws support from a broad coalition of French national, regional
and local authorities as well as by the European community through the ENIAC
Joint Technology Initiative. Funding for the program is subject to approval by
the European Commission. Ultimately, Nano2017 strengthens ST's leadership in
such key technologies as FD-SOI (low-power, high-performance processing),
next-generation imaging (sensors and image signal processors), and
next-generation embedded non-volatile memories. These technologies are at the
core of ST's embedded processing solutions which include microcontrollers,
imaging solutions, digital consumer products, application processors and
digital ASICs.

On July 24, the Company announced the publication of its 2012 Sustainability
Report. ST's sixteenth annual Sustainability Report contains comprehensive
details of ST's Sustainability strategy, policies and performance during 2012.

On August 5, ST and Ericsson announced the closing of the split up of
ST-Ericsson, less than 9 months after ST announced its new strategic plan,
including the decision to exit ST-Ericsson. ST has taken on some of the
existing ST-Ericsson products, other than LTE multimode thin modems and the
GNSS (Global Navigation Satellite System) connectivity solution that has been
sold to a third party, as well as certain assembly and test facilities. In
total, approximately 1,000 employees joined STMicroelectronics.

At the same time, ST announced that Carlo Ferro returned to ST as Chief
Financial Officer, with extended responsibilities that includes leading legal,
central operation planning, procurement, IT and investor relations. He
continues as ST-Ericsson President & CEO through the joint venture wind-down.

On August 20, ST announced that it had posted its IFRS 2013 Semi Annual
Accounts for the six-month period ended June 29, 2013, on its website and has
filed them with the Netherlands Authority.

On September 20, ST announced that it would propose a cash dividend of US$0.10
for each of the fourth quarter of 2013 and first quarter of 2014, per
outstanding share of the Company's common stock. The amount of the proposed
dividend is stable with respect to the previous quarterly dividend
distribution.

This was followed with an announcement, on September 27, of the resolutions to
be submitted for shareholder adoption at the forthcoming Extraordinary General
Meeting of Shareholders (the "EGM"), which will be held in Schiphol, The
Netherlands, on December 2, 2013.

The resolutions, proposed by the Supervisory Board, are:

  * The distribution of a cash dividend of US$0.10 per outstanding common
    share for each of the fourth quarter of 2013 and first quarter of 2014.
  * An amendment of the Articles of Association of the Company authorizing the
    Supervisory Board, in addition to the General Meeting of Shareholders, to
    resolve upon the distribution of quarterly dividends from the reserves of
    the Company.

The record date for all shareholders to participate at the EGM will be
November 4, 2013. The complete agenda and all relevant detailed information
concerning the EGM, as well as all related EGM materials, are available on the
Company's web site (www.st.com) and have been made available to shareholders
in compliance with legal requirements as of September 27, 2013.

Q3 2013 - Product and Technology Highlights

During the quarter, ST made strong progress with important new-product
introductions and significant design wins.

Embedded Processing Solutions (EPS)

Digital Convergence (DCG)

  o Continued to maintain strong momentum on FD-SOI. We delivered a test chip
    to a top customer in the consumer market, launched an engagement with a
    key player in mobile phone market in China, and successfully completing a
    28nm performance validation with a key networking Chinese player.
  o Also in FD-SOI, we are addressing significant customer interest with major
    European and US operators, as well as network infrastructure providers and
    device makers.
  o Achieved DOCSIS 3 certification for SoC products addressing the cable-data
    gateway and interactive set-top box markets.
  o Launched system-on-chip devices that support UltraHD and HEVC
    video-decoding and are ideally suited for server, gateway and client-box
    applications.
  o Started shipments of DisplayPort converter IC for Panasonic's newly
    launched Smart VIERA (65WT600) Ultra HD TV.

Imaging, BiCMOS, ASIC and Silicon Photonics (IBP)

  o Started deliveries of a new high-value dedicated Image Signal Processor to
    a leading consumer brand.
  o Sampled and demonstrated to automotive market leaders a new
    high-performance Image Signal Processor and image-sensor chipset with
    advanced features for automotive and security applications.
  o Ramping production for 100G and Parallel Optics applications to satisfy
    request from a leading customer.  

Microcontrollers, Memory and Secure MCU (MMS)

  o Expanded STM32 family of Microcontrollers with Value-line devices offering
    32-bit processing at as little as 32 cents in high volumes while also
    increasing the ecosystem at the high-end of the family with new STM32 F4
    Discovery Kits.
  o Captured microcontroller sockets with our STM32F2 in the innovative Pebble
    Smartwatch.
  o Earned a win for our low-power STM32 devices in a new generation of
    fitness products from a leading manufacturer.
  o Ramped production of STM32 microcontrollers for Samsung's latest wearable
    device and smartphone unveiled recently at IFA2013.
  o Achieved Bank-Card Test Center certification for our secure
    microcontroller for Dual Interface Banking in China.
  o Won multiple sockets for innovative dual-interface EEPROM Near-Field
    Communication RFID tag in a range of home appliance from a leading Korean
    OEM .
  o Succeeded in placing a secure microcontroller in a new generation of
    Secure Element from major customers.
  o Captured Secure Element in the showcase smartphone from a major OEM.

Sense & Power and Automotive Products (SP&A)

Analog, MEMS and Sensors (AMS)

  * Captured a design win for a new environmental sensor from a leading
    Chinese Smartphone manufacturer.
  * Began high-volume production of the 4^th-generation 3-axis gyroscope for a
    major consumer-electronics manufacturer.
  * Launched mass production of a Smart iNemo module, containing an
    accelerometer, gyro, and brain for a handheld gaming system from a major
    manufacturer.
  * Captured a socket for a high-G (large-range) 3-axis accelerometer with
    Brain-Sentry for a lightweight helmet-mounted impact-monitoring device.
  * Started production of a new inkjet printhead for an important American
    customer.
  * Announced the world's smallest eCompass module and a new family of
    gyroscopes specifically optimized for image stabilization on mobile phones
    and cameras.
  * Launched an innovative USB charge-controller chip that delivers power to
    devices connected to a PC's USB port, even when the PC is in shutdown
    mode.
  * Began sampling industry's most energy-efficient Bluetooth 4.0 network
    processor for Bluetooth smart applications.

Automotive (APG)

  * Leveraged its record of success with Sirius/XM to win the new-generation
    40nm BaseBand chip for Digital Satellite Broadcasting.
  * Earned an important award for a 32-bit 40nm microcontroller family for
    body gateway and body control modules from a major European Tier 1.
  * Captured a socket for the brushless DC motor controller for a transmission
    from a leading European manufacturer.
  * Reinforced success in automotive lighting with major awards from multiple
    suppliers in Europe and Korea.
  * Won 2nd-generation engine-management system from a Japanese Tier1.

Industrial and Power Discrete (IPD)

  * Captured two new ASICs for industrial applications from major EMEA
    automation companies. Both programs have extended lifetimes.
  * Won key EMIF filters, RF Baluns & protection-device sockets with leading
    game-console, tablet, notebook and other portable applications.
  * Qualified high-voltage 600 - 650V MDmeshII Plus and MDmeshV MOSFETs for
    top power-supply, lighting and consumer customers and low-voltage
    STripFET^TM VI/VIII DeepGATE^TM products forAutomotive  customers for
    hybrid electric vehicles and powertrain applications.
  * Earned a design win for our newest DC-DC converter from a major US
    car-module manufacturer for the LED backlight in an infotainment platform.
  * Awarded an ASIC for a dedicated power supply to be used by a leading Meter
    manufacturer.
  * Captured an important SiC diode win in solar inverters with an
    Americas-based manufacturer.

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 and restructuring charges,
operating margin before impairment and restructuring charges, 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:

  o Uncertain macro-economic and industry trends;
  o Customer demand and acceptance for the products which we design,
    manufacture and sell;
  o Unanticipated events or circumstances which may either 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;
  o Future events or circumstances which may require us to reassess our
    current plans concerning  the wind down of our ST-Ericsson joint venture;
  o The loading and the manufacturing performances of our production
    facilities;
  o The functionalities and performance of our IT systems, which support our
    critical operational activities including manufacturing, finance and
    sales;  
  o 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;
  o 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;
  o Restructuring charges and associated cost savings that differ in amount or
    timing from our estimates;
  o 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;
  o The outcome of ongoing litigation as well as the impact of any new
    litigation to which we may become a defendant;
  o 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;
  o 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;
  o Availability and costs of raw materials, utilities, third-party
    manufacturing services, or other supplies required by our operations; and
  o The possibility of widespread financial and business disruption on account
    of a default by the U.S. on U.S. government financial obligations.

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 October 23, 2013, the management of STMicroelectronics will conduct a
conference call to discuss the Company's operating performance for the third
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
November 1, 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)
                                               September 28, September 29,
                                               2013          2012
                                                              
Net sales                                      2,005         2,119
Other revenues                                 8             47
 NET REVENUES                                  2,013         2,166
Cost of sales                                  (1,361)       (1,413)
 GROSS PROFIT                                  652           753
Selling, general and administrative            (253)         (274)
Research and development                       (423)         (578)
Other income and expenses, net                 78            20
Impairment, restructuring charges and other    (120)         (713)
related closure costs
 Total Operating Expenses                      (718)         (1,545)
 OPERATING LOSS                                (66)          (792)
Interest expense, net                          (2)           (8)
Income (loss) on equity-method investments     (8)           (4)
LOSS BEFORE INCOME TAXES AND NONCONTROLLING    (76)          (804)
INTEREST
Income tax expense                             (49)          (25)
NET LOSS                                       (125)         (829)
Net loss (income) attributable to              (17)          351
noncontrolling interest
NET LOSS ATTRIBUTABLE TO PARENT COMPANY        (142)         (478)
                                                              
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO     (0.16)        (0.54)
PARENT COMPANY STOCKHOLDERS
 EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO  (0.16)        (0.54)
PARENT COMPANY STOCKHOLDERS
                                                              
  NUMBER OF WEIGHTED AVERAGE                                  
  SHARES USED IN CALCULATING                                  
  EARNINGS PER SHARE                           890.5         887.8
                                                                              

                                                                              
STMicroelectronics N.V.                                       
Consolidated Statements of Income                             
(in millions of U.S. dollars, except per share                
data ($))
                                                              
                                               Nine Months Ended
                                               (Unaudited)   (Unaudited)
                                               September 28, September 29,
                                               2013          2012
                                                              
Net sales                                      6,042         6,269
Other revenues                                 25            62
  NET REVENUES                                 6,067         6,331
Cost of sales                                  (4,115)       (4,246)
  GROSS PROFIT                                 1,952         2,085
Selling, general and administrative            (817)         (876)
Research and development                       (1,409)       (1,828)
Other income and expenses, net                 84            55
Impairment, restructuring charges and other    (263)         (788)
related closure costs
  Total Operating Expenses                     (2,405)       (3,437)
  OPERATING LOSS                               (453)         (1,352)
Interest expense, net                          (2)           (26)
Loss on equity-method investments              (111)         (13)
Gain on financial instruments, net             --            3
  LOSS BEFORE INCOME TAXES                     (566)         (1,388)
   AND NONCONTROLLING INTEREST                                
Income tax expense                             (29)          (11)
  NET LOSS                                     (595)         (1,399)
Net loss (income) attributable to              131           669
noncontrolling interest
  NET LOSS ATTRIBUTABLE TO PARENT COMPANY      (464)         (730)
                                                              
  EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO   (0.52)        (0.82)
PARENT COMPANY STOCKHOLDERS
  EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO (0.52)        (0.82)
PARENT COMPANY STOCKHOLDERS
                                                              
  NUMBER OF WEIGHTED AVERAGE                                  
  SHARES USED IN CALCULATING                                  
  EARNINGS PER SHARE                           889.2         886.3
                                                                              

                                                                              
STMicroelectronics N.V.                                      
CONSOLIDATED BALANCE SHEETS                                  
As at                             September 28, June 29,    December 31,
                                  2013          2013        2012
 In millions of U.S. dollars      (Unaudited)   (Unaudited) Audited
ASSETS                                                       
Current assets:                                              
Cash and cash equivalents         1,434         1,583       2,250
Short-term deposits               1             1           1
Marketable securities             91            189         238
Trade accounts receivable, net    1,181         1,118       1,005
Inventories                       1,316         1,336       1,353
Deferred tax assets               221           224         137
Assets held for sale              17            28          --
Other current assets              539           567         518
Total current assets              4,800         5,046       5,502
Goodwill                          99            135         141
Other intangible assets, net      218           250         213
Property, plant and equipment,    3,193         3,276       3,481
net
Non-current deferred tax assets   373           395         414
Restricted cash                   --            --          4
Long-term investments             73            29          119
Other non-current assets          568           512         560
                                  4,524         4,597       4,932
Total assets                      9,324         9,643       10,434
                                                             
LIABILITIES AND EQUITY                                       
Current liabilities:                                         
Short-term debt                   168           313         630
Trade accounts payable            898           985         797
Other payables and accrued        944           993         942
liabilities
Dividends payable to stockholders --            94          89
Deferred tax liabilities          --            1           11
Accrued income tax                71            65          86
Total current liabilities         2,081         2,451       2,555
Long-term debt                    619           651         671
Post-retirement benefit           449           492         477
obligations
Long-term deferred tax            13            15          14
liabilities
Other long-term liabilities       356           357         353
                                  1,437         1,515       1,515
Total liabilities                 3,518         3,966       4,070
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 1,156         1,156       1,156
shares authorized, 910,695,805
shares issued, 890,586,025 shares
outstanding)
Capital surplus                   2,572         2,564       2,555
Retained earnings                 1,291         1,433       1,959
Accumulated other comprehensive   922           749         794
income
Treasury stock                    (213)         (213)       (239)
Total parent company              5,728         5,689       6,225
stockholders' equity
Noncontrolling interest           78            (12)        139
Total equity                      5,806         5,677       6,364
Total liabilities and equity      9,324         9,643       10,434
                                                                              

                                                                       
STMicroelectronics N.V.                                    
SELECTED CASH FLOW DATA                                    
                                                           
Cash Flow Data (in US$ millions)          Q3 2013 Q2 2013 Q3 2012
                                                           
Net Cash from operating activities        14      15      148
Net Cash used in investing activities     (7)     (146)   (203)
Net Cash used in financing activities     (164)   (12)    (80)
Net Cash decrease                         (149)   (135)   (120)
                                                           
Selected Cash Flow Data (in US$ millions) Q3 2013 Q2 2013 Q3 2012
                                                           
Depreciation & amortization               224     224     266
Net payment for Capital expenditures      (166)   (121)   (203)
Dividends paid to stockholders*           (93)    (75)    (89)
Change in inventories, net                (34)    (18)    24

* The amount paid in Q2 2013 does not include the American investors, paid in
July 2013.

(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
supplemental 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 and restructuring charges 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.

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.

                                                                              
Q3 2013                        Gross  Operating Net      Corresponding
(US$ millions and cents per    Profit Income    Earnings EPS
share)                                (loss)
U.S. GAAP                      652    (66)      (142)    (0.16)
Impairment & Restructuring            120       117       
Loss on equity-method                           4
investments (MicroOLED)
Estimated Income Tax Effect                     (2)
Non-U.S GAAP                   652    54        (23)     (0.03)

                                                                              
Q2 2013                        Gross  Operating Net      Corresponding
(US$ millions and cents per    Profit Income    Earnings EPS
share)                                (loss)
U.S. GAAP                      672    (107)     (152)    (0.17)
Impairment & Restructuring            43        41        
Loss on equity-method                           69
investments (3Sun)
Estimated Income Tax Effect                     (11)
Non-U.S GAAP                   672    (64)      (53)     (0.06)

                                                                              
Q3 2012                        Gross  Operating Net      Corresponding
(US$ millions and cents per    Profit Income    Earnings EPS
share)                                (loss)
U.S. GAAP                      753    (792)     (478)    (0.54)
Impairment & Restructuring            713       456       
Estimated Income Tax Effect                     (7)
Non-U.S GAAP                   753    (79)      (29)     (0.03)

(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.

                                                                  
Net Financial Position (in US$ millions)  September 28, June 29, September 29,
                                          2013          2013     2012
Cash and cash equivalents                 1,434         1,583    1,686
Marketable securities                     91            189      237
Short-term deposits                       1             1        --
Non-current restricted cash               --            --       4
Total financial resources                 1,526         1,773    1,927
Short-term borrowings and current portion
of                                        (168)         (313)    (1,260)
long-term debt
Long-term debt                            (619)         (651)    (298)
Total financial debt                      (787)         (964)    (1,558)
Net financial position                    739           809      369
                                                                  
Net financial position, adjusted to
account                                   739           954      1,064
for 50% investment in ST-Ericsson

Free cash flow is defined as net cash from operating activities minus net cash
from (used in) investing activities, excluding purchase of and proceeds from
the sale of marketable securities, short term deposits and release of
restricted cash. 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)                       Q3 2013 Q2 2013 Q3 2012
Net cash from (used in) operating activities           14      15      148
Net cash from (used in) investing activities           (7)     (146)   (203)
Payment for purchases of (proceeds from sale of)
marketable securities, short term deposits and         (79)    (3)     (25)
restricted cash, net and net variation for joint
ventures deconsolidation
Free cash flow                                         (72)    (134)   (80)

--end---

ST Q3 2013 earnings: http://hugin.info/152740/R/1737454/582521.pdf

CONTACT: 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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