STMicroelectronics Reports 2013 Fourth Quarter and Full Year Financial Results

STMicroelectronics Reports 2013 Fourth Quarter and Full Year Financial Results    *Fourth quarter financial results in line with expectations   *Fourth quarter net revenues $2.01 billion, up 3.9% year-over-year     excluding ST-Ericsson   *Positive free cash flow of $91 million in the fourth quarter*  GENEVA, Switzerland, Jan. 27, 2014 (GLOBE NEWSWIRE) -- STMicroelectronics (NYSE:STM),  a global semiconductor leader serving customers across the spectrum of electronics applications, reported financial results for the fourth quarter and full year ended December 31, 2013.  Fourth quarter net revenues totaled $2.01 billion, gross margin was 32.9%, and net loss was $0.04 per share. For the full year net revenues totaled $8.08 billion, gross margin was 32.3%, and net loss was $0.56 per share.  "Fourth quarter revenue and gross margin results were well in line with our outlook range, coming in at the mid-point of our guidance, which translated into positive operating income before impairment and restructuring and a substantial positive free cash flow," said ST President and CEO Carlo Bozotti.  "In 2013, we grew 3.2% excluding the former ST-Ericsson products, a better performance than our served market, with the main contributions coming from our microcontrollers and automotive products. We also made good progress on our customer diversification and mass market and distribution initiatives. In addition, our leading-edge set-top box products and FD-SOI-based ASICs led to important design wins and traction with major worldwide operators and OEM customers.  "We made solid progress in executing the strategy we announced in December 2012 but we still have much to accomplish. We completed the split up of ST-Ericsson in a timely manner and by adding some of their competencies we strengthened our product development teams. Furthermore, we brought our quarterly operating expenses down by about 25 percent compared to the year-ago quarter and our fourth quarter net operating expenses within our target range. We also started to make gradual structural changes to our manufacturing footprint which will benefit our gross margin and we announced a key frame agreement with the French government to support our R&D efforts for CMOS derivative technology."  (*) Free cash flow is a non-U.S. GAAP measure. Please refer to Attachment A for additional information explaining why the Company believes this measure is important and for reconciliation to U.S. GAAP.  Summary Financial Highlights    U.S. GAAP                                      Q4    Q3    Q4    FY    FY                                                2013  2013  2012  2013  2012 (Million US$) Net Revenues (a)                               2,015 2,013 2,162 8,082 8,493 Gross Margin                                   32.9% 32.4% 32.3% 32.3% 32.8% Operating Income (Loss), as reported           (11)  (66)  (730) (465) (2,081) Net Income (Loss) attributable to parent       (36)  (142) (428) (500) (1,158) company  (a) Net revenues include sales recorded by ST-Ericsson as consolidated by ST. ST-Ericsson was deconsolidated on September 1, 2013  Non-U.S. GAAP*                              Q4    Q3    Q4     FY     FY                                             2013  2013  2012   2013   2012 (b) (Million US$) Operating Income (Loss) before impairment   18    54    (142)  (173)  (705) and restructuring charges Operating Margin before impairment and      0.9%  2.7%  (6.5%) (2.1%) (8.3%) restructuring charges                                                                Net Revenues excluding Wireless (WPS)       1,882 1,878 1,811  7,378  7,148  (b) FY2012 as reported includes a net charge of $54 million related to NXP arbitration award  Fourth Quarter Review   Overall, net revenues as reported increased 0.1% sequentially and decreased 6.8% on a year-over-year basis. On a sequential basis by region of shipment, Greater China & South Asia posted growth of 4.1%, while Japan & Korea, the Americas, and EMEA decreased by 5.6%, 2.8%, and 1.0%, respectively.  ST's fourth quarter revenues, excluding WPS (former ST-Ericsson products), grew 0.2% on a sequential basis and 3.9% year-over-year. Sequential growth was driven by Automotive and Microcontrollers while year-over-year growth was driven by Imaging, Automotive, Microcontrollers, and Industrial and Power.  Fourth quarter gross profit was $662 million and gross margin was 32.9%. On a sequential basis, gross margin increased 50 basis points, primarily due to manufacturing efficiencies partially offset by negative currency effects and, as anticipated, unsaturation charges.  R&D expenses were $407 million in the fourth quarter representing a sequential decrease of $16 million or 3.7%, primarily due to ongoing cost reduction initiatives partially offset by the unfavorable seasonality effect. R&D expenses decreased 30% compared to $585 million in the year-ago period.  SG&A expenses were $249 million in the fourth quarter decreasing $4 million or 1.5% on a sequential basis mainly due to ongoing cost reduction initiatives partially offset by the unfavorable seasonality effect. SG&A expenses decreased 14% compared to $291 million in the year-ago period.  Fourth quarter operating income, before impairment and restructuring charges, was $18 million compared to $54 million in the prior quarter, which included an $80 million gain from the sale of businesses. Operating margin in the fourth quarter, before impairment and restructuring charges, was 0.9% with Sense & Power and Automotive (SP&A) operating margin at 7.7% and Embedded Processing Solutions (EPS) at negative 8.5%. Operating margin improved from negative 6.5% in the year-ago quarter mainly due to the split up of ST-Ericsson.  Impairment, restructuring charges and other related closure costs for the fourth quarter were $29 million incurred under the Company's existing plans, compared to $120 million in the prior quarter.  ----- (*)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.  Fourth quarter net loss was $36 million or $(0.04) per share, compared to a net loss of $(0.16) and $(0.48) per share in the prior and year-ago quarter, respectively. On an adjusted basis, ST reported a non-U.S. GAAP net loss per share estimated at $(0.01) in the fourth quarter excluding impairment and restructuring charges, net of estimated income tax effect, compared to a net loss estimated at $(0.03) and $(0.11) per share in the prior and year-ago quarter, respectively.*  For the fourth quarter of 2013, the effective average exchange rate for the Company was approximately $1.34 to €1.00, compared to $1.31 to €1.00 for the third quarter of 2013 and $1.30 to €1.00 for the fourth quarter of 2012.  Quarterly Net Revenues Summary    Net Revenues By Product Line and Segment                                                   Q4 2013 Q3 2013 Q4 2012 (Million US$) Analog & MEMS (AMS)                               337     329     396 Automotive (APG)                                  449     418     368 Industrial & Power Discrete (IPD)                 447     458     420 Other SP&A                                        -       -       - Sense & Power and Automotive Products (SP&A)      1,233   1,205   1,184 Digital Convergence Group (DCG)                   159     163     217 Imaging, BiCMOS, ASIC and Silicon Photonics (IBP) 127     144     100 Microcontrollers, Memory & Security (MMS)         357     360     293 Wireless (WPS)                                    133     135     351 Other EPS                                         -       -       3 Embedded Processing Solutions (EPS)               776     802     964 Others                                            6       6       14 Total                                             2,015   2,013   2,162  Net Revenues By Market Channel (%) Q4 2013 Q3 2013 Q4 2012 Total OEM                          73%     75%     77% Distribution                       27%     25%     23%    ----- (*)Net revenues excluding Wireless (WPS), operating income (loss) before impairment and restructuring charges and operating margin before impairment and restructuring charges and adjusted net earnings per share 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.  Quarterly Revenues and Operating Results by ST Product Segment                        Q4 2013  Q4 2013   Q3 2013  Q3 2013   Q4 2012  Q4 2012 Operating Segment     Net      Operating Net      Operating Net      Operating (Million US$)         Revenues Income    Revenues Income    Revenues Income                                (Loss)             (Loss)             (Loss) Sense & Power and  Automotive Products   1,233    96        1,205    75        1,184    106  (SP&A) Embedded Processing  Solutions including                       776      (66)      802      (18)      964      (182) Wireless product line  (EPS) (a) Others (b) (c)        6        (41)      6        (123)     14       (654) TOTAL                 2,015    (11)      2,013    (66)      2,162    (730)  (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 until September 1, 2013, 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 $7 million, $0 million and $66 million of unused capacity charges in the fourth and third quarters of 2013 and fourth quarter of 2012, respectively; and $29 million, $120 million and $588 million of impairment, restructuring charges and other related closure costs in the fourth and third quarters of 2013 and fourth quarter of 2012, respectively.  Sense & Power and Automotive Products (SP&A) fourth quarter net revenues increased 2.3% sequentially. SP&A revenues increased 4.2% compared to the year-ago quarter driven by APG and IPD. SP&A operating margin was 7.7% in the 2013 fourth quarter compared to 6.2% and 9.0% in the prior and year-ago quarter, respectively, with the sequential increase principally driven by product mix.   Embedded Processing Solutions (EPS) fourth quarter net revenues decreased 3.2% sequentially. EPS decreased 19.4% on a year-over-year basis mainly reflecting the progressive phase-out of WPS (former ST-Ericsson products). EPS segment operating margin was a negative 8.5% in the 2013 fourth quarter compared to negative 2.2% (or negative 11.5% excluding the gain from the sale of businesses) and negative 18.9% in the prior and year-ago quarter, respectively.  Cash Flow and Balance Sheet Highlights  In the fourth quarter of 2013, as anticipated, the Company generated positive free cash flow* of $91 million compared to negative $72 million in the prior quarter.  Capital expenditure payments, net of proceeds from sales, were $531 million for 2013, compared to $476 million for 2012. In 2013, the ratio of capital investment spending to revenues was about 6.6% compared to 5.6% in 2012.  Inventory increased sequentially by $20 million to $1.34 billion at quarter end. Inventory in the fourth quarter of 2013 was at 4.0 turns or 90 days, compared to 4.3 turns or 84 days in the year-ago quarter.  Dividends paid to stockholders in the fourth quarter were $89 million and for the full year were $346 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's net financial position* was a net cash position of $741 million at December 31, 2013, compared to $739 million at September 28, 2013, and $1.19 billion at December 31, 2012. ST's financial resources equaled $1.89 billion and total debt was $1.15 billion at December 31, 2013, compared to $2.49 billion and $1.30 billion, respectively, at December 31, 2012.  Total equity, including non-controlling interest, was $5.73 billion at December 31, 2013, compared to $6.36 billion at December 31, 2012.  Full Year 2013 Results  During 2013, ST and Ericsson split up the ST-Ericsson joint venture, thus exiting the wireless IC platform business.**  Net revenues for the full year 2013 decreased 4.8% to $8.08 billion from $8.49 billion in 2012 mainly reflecting lower WPS (former ST-Ericsson products) sales. Net revenues for the full year 2013, excluding WPS, increased 3.2% to $7.38 billion.  Gross margin was 32.3% of net revenues for the full year 2013, compared to 32.8% of net revenues in 2012.  Sense & Power and Automotive revenues for the full year 2013 totaled $4.78 billion, up 3.3% compared to 2012 led by APG and IPD. SP&A operating margin decreased to 5.7% in 2013 from 8.8% in 2012 principally due to increased R&D efforts.  Embedded Processing Solutions revenues were $3.27 billion, down 14.6% compared to 2012 mainly due to the wind down of ST-Ericsson. EPS revenues excluding WPS increased 3.4% principally driven by strong growth in MMS. EPS operating margin was negative 12.2% compared to negative 23.1% in 2012 mainly due to the wind down of ST-Ericsson and higher sales in Microcontrollers.  Net loss, as reported, was $500 million in the full year 2013, or $(0.56) per share, compared to a net loss of $1.16 billion, or $(1.31) per share in the full year 2012.On an adjusted basis, ST reported a non-U.S. GAAP net loss per share estimated at $(0.23) excluding impairment and restructuring charges and one-time items, net of estimated income tax effect, in the full year 2013, compared to $(0.33) in the full year 2012.*  The effective average exchange rate for the Company was approximately $1.31 to €1.00 for the full year 2013, same as the effective average exchange rate for the full year 2012.  ----- (*)Net financial position and adjusted net earnings per share are non-U.S. GAAP measures. For additional information and reconciliation to U.S. GAAP, please refer to Attachment A.  (**) On August 2, 2013, ST and Ericsson completed the formal transfer of the parts of ST-Ericsson to the respective parent companies. The split up of ST-Ericsson has been completed with both parents having assumed equal funding of the wind-down activities. As previously communicated, ST and Ericsson have taken the expenses and the margin of their respective activities since March 2, 2013. Effective as of September 1, 2013, ST has deconsolidated ST-Ericsson.  Full Year Net Revenues Summary  Net Revenues By Product Line and Segment                                                   FY 2013 FY 2012 (Million US$) Analog & MEMS (AMS)                               1,306   1,320 Automotive (APG)                                  1,668   1,554 Industrial & Power Discrete (IPD)                 1,801   1,747 Other SP&A                                        -       1 Sense & Power and Automotive Products (SP&A)      4,775   4,622 Digital Convergence Group (DCG)                   735     888 Imaging, BiCMOS, ASIC and Silicon Photonics (IBP) 462     437 Microcontrollers, Memory & Security (MMS)         1,367   1,147 Wireless (WPS)                                    704     1,345 Other EPS                                         1       9 Embedded Processing Solutions (EPS)               3,269   3,826 Others                                            38      45 Total                                             8,082   8,493  Full Year Revenue and Operating Results by Product Segment  Operating Segment          FY 2013 Net FY 2013       FY 2012 Net FY 2012 (In Million US$)           Revenues    Operating     Revenues    Operating                                        Income (Loss)             Income (Loss) Sense & Power and Automotive Products        4,775       270           4,622       409  (SP&A) Embedded Processing Solutions including                            3,269       (399)         3,826       (883) Wireless product line  (EPS) Others                    38          (336)         45          (1,607) TOTAL                     8,082       (465)         8,493       (2,081)  First Quarter 2014 Business Outlook  Mr. Bozotti stated, "In the first quarter, we expect overall revenues to decrease sequentially by about 9.5% at the midpoint. First quarter revenues reflect, on top of seasonality including the New Year holiday in Asia, a drop in revenues from ST-Ericsson legacy products of more than half from the fourth quarter of 2013 level.  "While the semiconductor market did not perform as expected in 2013, we are encouraged by the positive macro-economic signs and by the market dynamics expected in 2014. We are well positioned to capture opportunities and to continue to grow faster than the market we serve as we focus on product leadership in Sense, Power and Automotive and in Embedded Processing.  "We will continue to advance towards our operating margin target of about 10%, expected by mid-2015, based on a combination of revenue growth, gross margin improvement and reduction of net expenses towards the low end of our target range.  The Company expects first quarter 2014 revenues to decrease about 9.5% on a sequential basis, plus or minus 3.5 percentage points. As a result, gross margin in the first quarter is expected to be about 32.4%, plus or minus 2.0 percentage points.  Net operating expenses target in the range of $600 million to $650 million average per quarter includes SG&A and R&D expenses net of R&D grants. The Company expects the Nano2017 R&D grants to become effective in the first quarter of 2014.  This outlook is based on an assumed effective currency exchange rate of approximately $1.35 to €1.00 for the 2014 first quarter and includes the impact of existing hedging contracts. The first quarter will close on March 29, 2014.  Recent Corporate Developments  On December 2, ST announced that all the resolutions proposed by the Supervisory Board were approved at the Company's Extraordinary General Meeting of Shareholders, which was held in Schiphol, The Netherlands. The resolutions approved by the shareholders were:    *The distribution of a cash dividend of US$0.10 per common share for each     of the fourth quarter of 2013, paid in December 2013, and first quarter of     2014, to be paid in March 2014 to shareholders of record in the month of     the quarterly payment.    *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.  Q4 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)    *Earned important design wins in Europe and the US in Ultra HD and HEVC     video technologies with major tier-one operators.   *Awarded multiple broadcast set-top box designs, with full certification     from major conditional-access system vendors, including Nagra and     Viaccess. Over 50 location-specific part numbers are available to serve     the worldwide market.   *Captured set-top-box sockets from MultiChoice, South Africa's top pay-TV     provider to boost customers' access to high-definition services.   *Won design at a major consumer company in the Far East in 28nm FD-SOI.  Imaging, Bi-CMOS, ASIC and Silicon Photonics (IBP)    *Awarded several image-sensor and camera-module sockets for main and     front-facing camera applications by a leading smartphone manufacturer, to     support volume deliveries in new H1'14 smartphone programs.  Microcontroller, Memory and Secure MCU (MMS)    *Landed design wins for the STM32F4 as a sensor hub at several key     smartphone OEMs and in a smartwatch at one of them.   *Earned sockets for the STM32F1 with Java Virtual Machine for a     heating-control user interface with a French industrial OEM and for the     STM32F0 for input/output accessories with a major US Smartphone OEM.   *Achieved new ST31 dual-interface secure microcontroller certification for     Asia banking with two additional major payment smartcard players.   *Introduced a second-generation Secure Element that further improves     performance and security for mobile devices.   *Announced a family of "dynamic NFC tag" memories enabling NFC connectivity     with smartphones for a wide range of electronic devices.  Sense & Power and Automotive Products (SP&A)  Analog, MEMS and Sensors (AMS)    *Captured a socket for a smart 6-axis accelerometer/gyro combo in a new     generation of tablets and smartphones from a fast-rising Asian     manufacturer. Another top Asian manufacturer is qualifying a different     6-axis combo for a smart watch.   *Selected by a global manufacturer for a high-gravity accelerometer for     predictive maintenance in transportation applications.   *Started volume shipments of high-performance digital microphones for     tablets at a top-tier manufacturer and of a high-performance top-port     digital microphone at a major Chinese smartphone manufacturer.   *Introduced a new family of 6-axis smart sensors that are fully compliant     with Android 4.4 KitKat.   *Earned qualification from a Chinese manufacturer for an automotive     accelerometer and a gyroscope module for navigation projects, increased     shipments for high-gravity accelerometers for airbags to a large Pac Rim     manufacturer, started production of a gyro for an American manufacturer     for a navigation application, and began sampling the first 24g     accelerometer for non-safety Automotive applications, such as car black     boxes.   *Began volume shipments of a second-generation touch-screen controller to a     large Asian manufacturer and captured a design win for the     third-generation device with the same Asian manufacturer.  Automotive (APG)    *Confirmed leadership in automotive lighting by earning the strategic     platform from a major Japanese Tier1 manufacturer.   *Won an award as the sole supplier for VIPower products from a major     Japanese Tier1.   *Selected by a leading Japanese manufacturer of vehicle engine management     and climate-control systems for gasoline direct injection applications.   *Captured several design wins for airbag applications with Chinese     customers.   *Registered many design wins for the 32-bit Power architecture     microcontrollers across a broad range of application domains.   *Announced the latest generation of industry-leading multi-constellation     satellite-location chips, which with the addition of capabilities to track     the Chinese BeiDou satellites, is able to receive signals from all of the     global navigation systems.  Industrial and Power Discrete (IPD)    *Captured design wins from a leading Korean manufacturer for its newest     switching battery charger.   *Began ramping a new step-down monolithic switching regulator for an     Infotainment project by a major Japanese Automotive Tier1 for an American     car maker.   *Earned significant design wins for ultrafast IGBTs (Insulated-Gate Bipolar     Transistors) in power-factor correction applications with a major Chinese     appliance manufacturer.   *Continued to gain traction with E-Fuse in leading Hard Disk Drive and SSD     platforms from top-tier manufacturers.   *Landed big design wins for our high-efficiency MOSFETs with a leading     Korean TV Maker.   *Awarded the socket for field-effect rectifier diodes for mobile and tablet     chargers by a leading Asian OEM and won key EMIF filters &     protection-device sockets in high-visibility smartphone, tablet, notebook     and other portable applications.   *Introduced the world's first intelligent-gateway SoC, which combines a     high-performance processing subsystem with Powerline Communication (PLC),     security and peripheral features to support hybrid networks utilizing     popular wired and wireless standards.   *Leveraging expertise in PLC and smart-meter ICs in the launch of a unique     future-proof SoC that simplifies smart-meter design, reduces     time-to-market, and significantly reduces component count and     bill-of-materials costs.   *Announced an advanced energy-harvesting and battery-charging chip that     enhances flexibility, simplifies design, and extends application reach.  Use of Supplemental Non-U.S. GAAP Financial Information  This press release contains supplemental non-U.S. GAAP financial information, including net revenues excluding Wireless (WPS), 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 and net financial position.  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 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;   *Future events or circumstances , which may have an impact on the timing     and final cost of the wind down of the ST-Ericsson joint venture;   *The loading and the manufacturing performance of our production     facilities;   *The functionalities and performance of our IT systems, which support our     critical operational activities including manufacturing, finance and     sales;    *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 January 28, 2014, the management of STMicroelectronics will host an earnings presentation inParis and will also conduct a conference call to discuss performance for the fourth quarter and fullyear of 2013.  The earnings presentation will be held at 5:00 a.m. U.S. Eastern Time / 11:00 a.m. CET and theconference call at 9:00 a.m. U.S. Eastern Time / 3:00 p.m. CET. Both the earnings presentation andconference call will be available live via the Internet by accessing http://investors.st.com. Thoseaccessing the webcast should go to the Web site at least 15 minutes prior to the call, in order toregister, download and install any necessary audio software.  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. Further information on ST can be found at www.st.com                                (tables attached)  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  STMicroelectronics N.V.                                           Consolidated Statements of Income                                 (in millions of U.S. dollars, except per share data               ($))                                                                                                                      Three Months Ended                                                     (Unaudited)  (Unaudited)                                                     December 31, December 31,                                                     2013         2012                                                                  Net sales                                            2,008        2,111 Other revenues                                       7            51  NET REVENUES                                       2,015        2,162 Cost of sales                                        (1,353)      (1,465)  GROSS PROFIT                                       662          697 Selling, general and administrative                  (249)        (291) Research and development                             (407)        (585) Other income and expenses, net                       12           37 Impairment, restructuring charges and other related  (29)        (588) closure costs  Total Operating Expenses                           (673)       (1,427)  OPERATING LOSS                                     (11)        (730) Interest expense, net                                (3)         (9) Loss on equity-method investments                    (12)        (11) LOSS BEFORE INCOME TAXES                             (26)        (750)  AND NONCONTROLLING INTEREST                                    Income tax expense                                   (8)         (39)  NET LOSS                                           (34)        (789) Net loss (income) attributable to noncontrolling     (2)         361 interest  NET LOSS ATTRIBUTABLE TO PARENT COMPANY            (36)        (428)                                                                   EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT                               (0.04)      (0.48) COMPANY STOCKHOLDERS  EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT                               (0.04)      (0.48) COMPANY STOCKHOLDERS                                                                   NUMBER OF WEIGHTED AVERAGE                                       SHARES USED IN CALCULATING                                       DILUTED EARNINGS PER SHARE                         890.6        887.9                                                                   STMicroelectronics N.V.                                           Consolidated Statements of Income                                 (in millions of U.S. dollars, except per share data               ($))                                                                                                                      Twelve Months Ended                                                     (Unaudited)  (Audited)                                                     December 31, December 31,                                                     2013         2012                                                                  Net sales                                            8,050        8,380 Other revenues                                       32           113  NET REVENUES                                       8,082        8,493 Cost of sales                                        (5,468)     (5,710)  GROSS PROFIT                                       2,614        2,783 Selling, general and administrative                  (1,066)     (1,166) Research and development                             (1,816)     (2,413) Other income and expenses, net                       95           91 Impairment, restructuring charges and other related  (292)       (1,376) closure costs  Total Operating Expenses                           (3,079)     (4,864)  OPERATING LOSS                                     (465)       (2,081) Interest expense, net                                (5)         (35) Loss on equity-method investments                    (122)       (24) Gain on financial instruments, net                   -            3  LOSS BEFORE INCOME TAXES                           (592)       (2,137)  AND NONCONTROLLING INTEREST                                    Income tax expense                                   (37)        (51)  NET LOSS                                           (629)       (2,188) Net loss (income) attributable to noncontrolling     129          1,030 interest  NET LOSS ATTRIBUTABLE TO PARENT COMPANY            (500)       (1,158)                                                                   EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT                               (0.56)      (1.31) COMPANY STOCKHOLDERS  EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT                               (0.56)      (1.31) COMPANY STOCKHOLDERS                                                                   NUMBER OF WEIGHTED AVERAGE                                       SHARES USED IN CALCULATING                                       DILUTED EARNINGS PER SHARE                         889.5        886.7                                                                  STMicroelectronics N.V.                                          CONSOLIDATED BALANCE SHEETS                                      As at                                  December 31, September 28, December 31, In millions of U.S. dollars            2013         2013          2012                                       (Unaudited)  (Unaudited)   (Audited) ASSETS                                                           Current assets:                                                  Cash and cash equivalents              1,836        1,434         2,250 Short-term deposits                    1            1             1 Marketable securities                  57           91            238 Trade accounts receivable, net         1,049        1,181         1,005 Inventories                            1,336        1,316         1,353 Deferred tax assets                    123          221           137 Assets held for sale                   16           17            - Other current assets                   401          539           518 Total current assets                   4,819        4,800         5,502 Goodwill                               90           99            141 Other intangible assets, net           217          218           213 Property, plant and equipment, net     3,156        3,193         3,481 Non-current deferred tax assets        226          373           414 Restricted cash                        -            -             4 Long-term investments                  76           73            119 Other non-current assets               600          568           560                                       4,365        4,524         4,932 Total assets                           9,184        9,324         10,434                                                                 LIABILITIES AND EQUITY                                           Current liabilities:                                             Short-term debt                        225          168           630 Trade accounts payable                 694          898           797 Other payables and accrued liabilities 937          944           942 Dividends payable to stockholders      89           -             89 Deferred tax liabilities               -            -             11 Accrued income tax                     48           71            86 Total current liabilities              1,993        2,081         2,555 Long-term debt                         928          619           671 Post-retirement benefit obligations    366          449           477 Long-term deferred tax liabilities     11           13            14 Other long-term liabilities            158          356           353                                       1,463        1,437         1,515 Total liabilities                      3,456        3,518         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 shares    1,156        1,156         1,156 authorized, 910,703,305 shares issued, 890,606,763 shares outstanding) Capital surplus                        2,581        2,572         2,555 Retained earnings                      1,076        1,291         1,959 Accumulated other comprehensive income 1,053        922           794 Treasury stock                         (212)        (213)         (239) Total parent company stockholders'     5,654        5,728         6,225 equity Noncontrolling interest                74           78            139 Total equity                           5,728        5,806         6,364 Total liabilities and equity           9,184        9,324         10,434                                                                                                                                 STMicroelectronics N.V.                                                                                                          SELECTED CASH FLOW DATA                                                                                                          Cash Flow Data (in US$ millions)       Q4 2013      Q3 2013       Q4 2012                                                                 Net Cash from operating activities     270          14            252 Net Cash used in investing activities  (145)        (7)           (107) Net Cash from (used in) financing      270          (164)         406 activities Net Cash increase (decrease)           402          (149)         564                                                                 Selected Cash Flow Data (in US$        Q4 2013      Q3 2013       Q4 2012 millions)                                                                 Depreciation & amortization            225          224           272 Net payment for Capital expenditures   (133)        (166)         (78) Dividends paid to stockholders         (89)         (93)          (89) Change in inventories, net             -           (34)          143  (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.  Q4 2013                          Gross Profit Operating     Net Earnings Corresponding (US$ millions and cents               Income (loss)              EPS per share) U.S. GAAP                662          (11)          (36)         (0.04) Impairment &                         29            29 Restructuring                                                     Estimated Income Tax                              (6) Effect Non-U.S GAAP             662          18            (13)         (0.01)  Q3 2013                          Gross Profit Operating     Net Earnings Corresponding (US$ millions and cents               Income (loss)              EPS per share) U.S. GAAP                652          (66)          (142)        (0.16) Impairment &                         120           117 Restructuring Loss on equity-method investments                                       4             (MicroOLED) Estimated Income Tax                              (2) Effect Non-U.S GAAP             652          54            (23)         (0.03)  Q4 2012                          Gross Profit Operating     Net Earnings Corresponding (US$ millions and cents               Income (loss)              EPS per share) U.S. GAAP                697          (730)         (428)        (0.48) Impairment &                         588           307 Restructuring                                                     Estimated Income Tax                              (1) Effect Income Tax at ST                                  26            Ericsson Non-U.S GAAP             697          (142)         (96)         (0.11)                                                                     (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.  Net Financial Position (in US$    December 31, September 28, 2013 December 31, millions)                         2013                            2012 Cash and cash equivalents         1,836        1,434              2,250 Marketable securities             57           91                 238 Short-term deposits               1            1                  1 Non-current restricted cash       -            -                  4 Total financial resources         1,894        1,526              2,493 Short-term borrowings and current portion of                        (225)        (168)              (630) long-term debt Long-term debt                    (928)        (619)              (671) Total financial debt              (1,153)      (787)              (1,301) Net financial position            741          739                1,192  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)                       Q4 2013 Q3 2013 Q4 2012 Net cash from (used in) operating activities           270     14      252 Net cash from (used in) investing activities           (145)   (7)     (107) Payment for purchases of (proceeds from sale of) marketable securities, short term deposits and         (34)    (79)    - restricted cash, net and net variation for joint ventures deconsolidation Free cash flow                                         91      (72)    145                                                                             --end---  ST Q4 2013 earnings http://hugin.info/152740/R/1757394/593998.pdf  HUG#1757394  STMicroelectronics logo