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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 in Paris and will also conduct a conference call to
discuss performance for the fourth quarter and full year of 2013.

The earnings presentation will be held at 5:00 a.m. U.S. Eastern Time / 11:00
a.m. CET and the conference call at 9:00 a.m. U.S. Eastern Time / 3:00 p.m.
CET. Both the earnings presentation and 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.

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

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