STMicroelectronics Reports 2014 First Quarter Financial Results

STMicroelectronics Reports 2014 First Quarter Financial Results

  oFirst quarter financial results in line with expectations; year-over-year
    operating income improvement of $188 million before impairment and
    restructuring charges
  oStrategic agreement for 28nm FD-SOI technology signed with a top-tier
    foundry
  oStable cash dividend of US$0.10 per share for both the second and third
    quarters of 2014 to be proposed to the 2014 Annual General Meeting of
    Shareholders

GENEVA, April 28, 2014 (GLOBE NEWSWIRE) -- STMicroelectronics (NYSE:STM), a
global semiconductor leader serving customers across the spectrum of
electronics applications, reported financial results for the first quarter
ended March 29, 2014.

First quarter net revenues totaled $1.83 billion, gross margin was 32.8%, and
net loss was $0.03 per share.

"First quarter revenue and gross margin results were well aligned with our
guidance," commented ST President and CEO Carlo Bozotti. "The combination of a
positive macro-economic environment and our leading-edge product portfolio
helped to drive higher year-over-year revenues in Microcontrollers,
Automotive, Industrial and Power, as well as in the Distribution channel. Our
general-purpose microcontroller business enjoyed the fourth consecutive
quarter of record revenues and today, ST is the second largest player
worldwide in microcontrollers, including both general-purpose and secure.*

"During the first quarter, ST posted an operating profit before impairment and
restructuring charges of $8 million, improving by $188 million year-over-year,
driven by the exit from ST-Ericsson as well as operating expenses well in line
with our financial model. Additionally, our strong and growing product
momentum in our Sense & Power and Automotive segment translated into an
operating margin improvement of 360 basis points in this segment compared to
the year-ago quarter.

"In our Digital Convergence business, we made progress in building the
pipeline to sustain its future turnaround; design-win momentum for our latest
ARM-based client and server portfolio for HEVC and ultra-HD set-top-box
continued during the quarter, as well as for our FD-SOI based IC solutions."

-----
(*) Source: IHS Technology Competitive Landscaping Tool, March 2014

Summary Financial Highlights

U.S. GAAP                                        Q1 2014 Q4 2013 Q1 2013^(a)
(Million US$)
Net Revenues                                     1,825   2,015   2,009
Gross Margin                                     32.8%   32.9%   31.3%
Operating Income (Loss), as reported             (4)     (11)    (281)
Net Income (Loss) attributable to parent company (24)    (36)    (171)

^(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*                                         Q1 2014 Q4 2013 Q1 2013
(Million US$)
Operating Income (Loss) before impairment and          8       18      (180)
restructuring charges
Operating Margin before impairment and restructuring   0.4%    0.9%    (8.9%)
charges

First Quarter Review

ST's first quarter revenues, excluding legacy ST-Ericsson products, grew 0.7%
on a year-over-year basis and decreased 6.4% sequentially. First quarter total
revenues, including legacy ST-Ericsson products, decreased year-over-year and
sequentially by 9.2% and 9.4%, respectively.

Microcontroller, Memory, and Secure MCU (MMS) and Automotive (APG) led the
product lines with year-over-year revenue growth of 15.6% and 15.5%,
respectively.

On a year-over-year basis by region of shipment, Greater China & South Asia
posted total revenue growth of 1.4% while EMEA and the Americas decreased by
4.4% and 8.6%, respectively. Japan & Korea revenues decreased 34.9% driven by
a significant decrease in legacy ST-Ericsson products.

In the first quarter, ST and InvenSense settled all pending proceedings and
have entered into a patent cross-license agreement. Under the terms of the
settlement, InvenSense made a one-time $15 million payment in the first
quarter of 2014. ST will collect royalties under the terms of the patent cross
license in the future. The expected royalties will not be material to ST's
financial results.

First quarter gross profit was $599 million and gross margin was 32.8%. Gross
margin improved 150 basis points year-over-year, benefiting from the one-time
licensing payment, manufacturing efficiencies and lower unsaturation charges
partially offset by price pressure. Gross margin decreased 10 basis points
sequentially due to usual price pressure and manufacturing inefficiencies
partially offset by product mix and the one-time licensing payment.

Combined R&D and SG&A expenses decreased 25.4% to $606 million compared to
$812 million in the year-ago quarter mainly due to the exit from ST-Ericsson
and ongoing cost reduction activities and on a sequential basis decreased 7.8%
benefiting from ongoing cost reduction initiatives and a lower number of days
in the quarter. R&D expenses in the first quarter were $378 million decreasing
by 29.1% and 7.2% on a year-over-year and sequential basis, respectively. SG&A
expenses totaled $228 million in the first quarter, a reduction of 18.4% and
8.8% compared to the year-ago and prior quarter, respectively.
-----
(*)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 reconciliation to U.S. GAAP and
additional information explaining why the Company believes these measures are
important.

First quarter other income & expenses, net, registered income of $15 million
mainly benefiting from the sale of assets totaling $13 million and $21 million
of R&D grants. These R&D grants do not include the Nano2017 R&D grants,
pending European Union approval now expected in the second quarter of 2014.

First quarter operating income and operating margin before impairment and
restructuring charges improved to $8 million and 0.4%, respectively, compared
to a loss of $180 million or negative 8.9% in the year-ago quarter principally
due to the exit from ST-Ericsson and ongoing cost reduction activities.
Impairment and restructuring charges were significantly reduced in the first
quarter at $12 million compared to $101 million in the year-ago quarter and
$29 million in the prior quarter.

First quarter net loss attributable to parent company was $24 million or
$(0.03) per share, compared to a net loss per share of $(0.19) and $(0.04) in
the year-ago and prior quarter, respectively. On an adjusted basis, ST's
non-U.S. GAAP net loss per share was $(0.01) in the first quarter compared to
a net loss per share of $(0.13) and $(0.01) in the year-ago and prior quarter,
respectively.*

For the first quarter of 2014, the effective average exchange rate for the
Company was approximately $1.35 to €1.00 compared to $1.31 to €1.00 for the
first quarter of 2013 and $1.34 to €1.00 for the fourth quarter of 2013.

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

Quarterly Net Revenues Summary

Commencing January 1, 2014, the Company transferred the former Wireless
Product Group (legacy ST-Ericsson products) into the Digital Convergence
Group.

Net Revenues By Product Line and Segment               Q1 2014 Q4 2013 Q1 2013
(Million US$)
Analog & MEMS (AMS)                                    304     337     313
Automotive (APG)                                       445     449     385
Industrial & Power Discrete (IPD)                      442     447     429
Sense & Power and Automotive Products (SP&A)           1,191   1,233   1,127
Digital Convergence Group (DCG) ^(a)                   205     307     496
Imaging, Bi-CMOS ASIC and Silicon Photonics (IBP) ^(a) 77      112     72
Microcontroller, Memory & Secure MCU (MMS)             346     357     299
Embedded Processing Solutions (EPS)                    628     776     867
Others                                                 6       6       15
Total                                                  1,825   2,015   2,009

(a) Reflecting the transfer of Wireless (legacy ST-Ericsson products) and
the Image Signal Processor business unit from IBP to DCG as of January 1,
2014, the Company has reclassified prior- period revenues.

Net Revenues By Market Channel (%) Q1 2014 Q4 2013 Q1 2013
Total OEM                          70%     73%     75%
Distribution                       30%     27%     25%

Quarterly Revenues and Operating Results by ST Product Segment

                     Q1 2014  Q1 2014   Q4 2013  Q4 2013   Q1 2013  Q1 2013
Operating Segment    Net      Operating Net      Operating Net      Operating
(Million US$)        Revenues Income    Revenues Income    Revenues Income
                              (Loss)             (Loss)             (Loss)
Sense & Power and
Automotive Products  1,191    104       1,233    96        1,127    58
(SP&A)
Embedded Processing  628      (80)      776      (66)      867      (210)
Solutions (EPS) ^(a)
Others ^(b)(c)       6        (28)      6        (41)      15       (129)
TOTAL                1,825    (4)       2,015    (11)      2,009    (281)

^(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 $5 million, $7
million, and $24 million of unused capacity charges in the first quarter of
2014 and fourth and first quarters of 2013, respectively; and $12 million, $29
million, and $101 million of impairment, restructuring charges, and other
related closure costs in the first quarter of 2014 and fourth and first
quarters of 2013, respectively.

Sense & Power and Automotive Products (SP&A) first quarter net revenues
increased 5.7% compared to the year-ago quarter driven by APG and IPD. SP&A
revenues decreased 3.5% sequentially. SP&A operating margin improved to 8.7%
in the 2014 first quarter compared to 5.1% in year-ago quarter reflecting
leverage on revenue growth, product innovation and manufacturing performance.
SP&A operating margin in the prior quarter was 7.7%.

Embedded Processing Solutions (EPS) first quarter net revenues, including $63
million from legacy ST-Ericsson products, decreased 27.6% on a year-over-year
basis mainly due to the phasing out of legacy ST-Ericsson products and lower
sales of set-top-box products, despite strong growth in microcontrollers.
Revenues decreased 19.1% sequentially mainly due to the decrease in
ST-Ericsson legacy products and lower sales of set-top-box and imaging
products. EPS segment operating margin was negative 12.7% in the 2014 first
quarter, compared to negative 24.2% and negative 8.5% in the year-ago and
prior quarter, respectively.

"We have just signed a strategic agreement with a top-tier foundry for 28nm
FD-SOI technology. This agreement expands the ecosystem, assures the industry
of high-volume production of ST's FD-SOI based IC solutions for faster,
cooler, and simpler devices and strengthens the business and financial
prospects of the Embedded Processing Solutions Segment," said Jean-Marc Chery,
Executive Vice President and General Manager, Embedded Processing Solutions.

Cash Flow and Balance Sheet Highlights

Free cash flow was negative $51 million in the first quarter compared to
negative $65 million in the year-ago quarter and positive $91 million in the
prior quarter.*

Capital expenditure payments, net of proceeds from sales, were $112 million
during the first quarter of 2014 compared to $111 million and $133 million in
the year-ago and prior quarter, respectively.

Inventory was $1.33 billion at quarter end, substantially flat with the prior
quarter. Inventory in the first quarter of 2014 was at 3.7 turns or 97 days.

In the first quarter, the Company paid cash dividends totaling $85 million.

ST's net financial position was $612 million at March 29, 2014 compared to
$741 million at December 31, 2013.* ST's financial resources equaled $1.75
billion and total debt was $1.13 billion at March 29, 2014.

Total equity, including non-controlling interest, was $5.68 billion at quarter
end.

-----
(*)Free cash flow and net financial position are non-U.S. GAAP measures. For
additional information and reconciliation to U.S. GAAP, please refer to
Attachment A.

Second Quarter 2014 Business Outlook

Mr. Bozotti stated, "In the second quarter, we expect overall revenues to
increase sequentially by about 2% at the midpoint. As anticipated,
ST-Ericsson's legacy products are winding down and revenues are expected to be
less than half of the $63 million recorded in the first quarter.

"We are encouraged by the signs of improvement in the macro-economic
environment generally and by specific product dynamics expected in the next
several quarters. In the second quarter, we see opportunities to continue to
expand our customer base, driven by strength in microcontrollers, automotive
and industrial, and power applications and by the initial recovery of the
Embedded Processing Solutions segment.

"In addition, we see opportunities to further advance ST's leadership in key
embedded processing solutions and technologies with the approval of the
Nano2017 R&D program, now expected this quarter.

"Finally, based upon our financial position, performance and market outlook,
the Supervisory Board is recommending to shareholders the approval of a $0.10
per share cash dividend for the second and third quarters of this year, stable
with prior periods and in line with our intention to continue to return value
to shareholders."

Reflecting no one-time licensing revenues compared to the first quarter, the
Company expects second quarter 2014 revenues to increase about 2% on a
sequential basis, plus or minus 3.5 percentage points. As a result, gross
margin in the second quarter is expected to be about 33.6%, plus or minus 2.0
percentage points.

This outlook is based on an assumed effective currency exchange rate of
approximately $1.36 = €1.00 for the 2014 second quarter and includes the
impact of existing hedging contracts. The second quarter will close on June
28, 2014.

Key Summary Financial Information

Reflecting the transfer of Wireless (legacy ST-Ericsson products) and the
Image Signal Processor business unit from IBP to DCG as of January 1, 2014,
the Company has reclassified prior period revenues.

Revenues      Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Q1 2014
(Million US$)
DCG           496     375     314     307     1,491   205
IBP           72      98      128     112     410     77

Recent Corporate Developments

  oOn February 10, ST and InvenSense announced that they had settled all
    pending proceedings between them and have entered into a patent
    cross-license agreement. Under the terms of the settlement, InvenSense
    made a one-time $15 million payment in the first quarter of 2014 but
    neither ST nor InvenSense has made any admission of liability. ST will
    collect royalties under the terms of the patent cross license in the
    future. The expected royalties will not be material to ST's financial
    results. Other terms between the parties are confidential.
    
  oOn April 9, the European Commission approved €34 million in aid for the
    TOURS 2015 research program led by ST; the aid, granted by France to ST
    for the development of new technologies in the Nanoelectronics sector, was
    in line with EU state-aid rules. In particular, the Commission considers
    that the project will help achieve EU scientific and environmental targets
    without unduly distorting competition.

Q1 2014 - 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)

  oContinued building global momentum in set-top boxes, collecting several
    design wins including HEVC HD, HEVC UHD, and DOCSIS 3.0 sockets across
    Cannes, Alicante, Liege, and all product families.
  oAnnounced expansion of offering in set-top box, including new devices in
    the Liege family and cooperation with third-party partners to provide
    complete and seamless solutions for the worldwide broadcast markets.
  oContinued to see strong momentum for 28nm FD-SOI, collecting two
    additional design wins.
  oPreviewed groundbreaking next-generation computing architecture for the
    Digital Home that builds on current ARM-based SoCs while leveraging 64-bit
    ARM cores to support the increasing performance and memory requirements of
    future SoCs.

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

  oWon new silicon-photonics project and transceiver chipset for FibreChannel
    high-speed data-storage applications with a key customer.
  oCaptured design win for analog switch for cell-phone-antenna chipset.
  oAwarded a major socket for time-of-flight photonic sensor for an
    innovative camera system by a leading smart-phone manufacturer.
  oBegan shipping dedicated imaging-processing chip to a leading Asian
    smart-phone manufacturer for their flagship phone.

Microcontroller, Memory and Secure MCU (MMS)

  oRamped production of STM32 microcontrollers for three new Samsung
    smartwatches that were unveiled at MWC2014.
  oEarned wins for lower-end ARM^® Cortex^®-M STM32F0 in several sensors,
    lighting applications, and gaming accessories.
  oCaptured Flash-based Secure MCU win for a major smartcard health program
    in Europe.
  oAnnounced new platforms (STM32 Nucleo) and software (STM32Cube) to enhance
    the development ecosystem and make STM32s even easier to design with.
  oExtended the industry's broadest portfolio of ARM Cortex-M
    microcontrollers with the introduction of STM32L0 ultra-low power series
    featuring ARM Cortex M0+ core.
  oAwarded high-density standard-EEPROM socket for parameter storage in an
    NFC module from a worldwide key player. 

Sense & Power and Automotive Products (SP&A)

Analog, MEMS and Sensors (AMS)

  oRamped production of touch-screen controllers for new Samsung smartphone
    that was launched in the first quarter of 2014. Touch-screen controller
    also gained momentum with additional big wins in tablets in Asia.
  oCaptured 100% share in all pressure sensors with a leading consumer brand
    in Asia.
  oIntroduced 2x2mm pressure-sensor in unique package technology that
    protects the sensing element, making it ideal for wearable applications.
  oIncreased penetration with multiple 6-axis sensor wins across Greater
    China region in leading manufacturers.
  oExpanded presence of accelerometers in automotive-infotainment market with
    design awards from top players across the globe.
  oRevealed 9-axis movement and position sensor that delivers enhanced
    performance with reduced power demand in a package almost 35% smaller than
    previous generations.
  oLeveraged outstanding low-power performance of Bluetooth Low Energy and
    Spirit1 sub-gigahertz radios with multiple design wins and orders.
  oReconfirmed leadership in automotive-grade high-precision op amp with
    design-win at a leading Americas manufacturer.
  oAnnounced broad portfolio of analog devices that comprise the industry's
    most complete set of building blocks for creating innovative wearable
    applications.

Automotive (APG)

  oSigned an exclusive agreement to supply audio amplifiers to a
    market-leading manufacturer of audio sound systems.
  oCaptured the win for the EyeQ4 next-generation advanced driver assist
    system (ADAS) vision processor from Mobileye, the top supplier of such
    systems.
  oEarned breakthrough for car audio processor with a win with a major
    manufacturer in the Japanese market.
  oLaunched third-generation single-chip standalone positioning family
    capable of receiving signals from all of the major satellite navigation
    systems.

Industrial and Power Discrete (IPD)

  oSecured qualifications from several power-supply manufacturers for
    low-voltage MOSFETS.
  oLaunched complete and configurable plug-and-play street-lighting solution
    for efficient control of dimmable, high-brightness LED strings to optimize
    dimming and minimize power in idle conditions.
  oEarned first win from a large Chinese manufacturer for high-voltage IGBT
    for a telecom application.
  oSecured wins in smartphone and GPS applications for tunable integrated RF
    capacitor and ultraminiature balun with leading manufacturers.
  oLanded a design win for a SmartGrid platform in an Eastern Europe pilot
    program.
  oWon sockets in key mobile applications from global players for
    ultra-miniature filtering and protection devices.
  oRevealed high-voltage silicon carbide power MOSFETs that help save at
    least 50% of previously wasted energy.

Use of Supplemental Non-U.S. GAAP Financial Information

This press release contains supplemental non-U.S. GAAP financial information,
including operating income (loss) before impairment and restructuring charges,
operating margin before impairment and restructuring charges, adjusted net
earnings 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:

  oUncertain macro-economic and industry trends;
  oCustomer demand and acceptance for the products which we design,
    manufacture and sell;
  oUnanticipated 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;
  oThe loading and the manufacturing performance of our production
    facilities;
  oThe functionalities and performance of our IT systems, which support our
    critical operational activities including manufacturing, finance and
    sales;
  oVariations in the foreign exchange markets and, more particularly, the
    U.S. dollar exchange rate as compared to the Euro and the other major
    currencies we use for our operations;
  oThe 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;
  oRestructuring charges and associated cost savings that differ in amount or
    timing from our estimates;
  oChanges 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;
  oThe outcome of ongoing litigation as well as the impact of any new
    litigation to which we may become a defendant;
  oNatural 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;
  oChanges 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;
  oAvailability 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, 2013, as filed with the SEC on March 5,
2014. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those described in this release as anticipated, believed, or
expected. We do not intend, and do not assume any obligation, to update any
industry information or forward-looking statements set forth in this release
to reflect subsequent events or circumstances.

STMicroelectronics Conference Call and Webcast Information

On April 29, 2014, the management of STMicroelectronics will conduct a
conference call to discuss the Company's operating performance for the first
quarter of 2014.

The conference call will be held at 9:00 a.m. U.S. Eastern Time / 3:00 p.m.
CET. The conference call will be available live via the Internet by accessing
http://investors.st.com. Those accessing the webcast should go to the Web site
at least 15 minutes prior to the call, in order to register, download, and
install any necessary audio software. The webcast will be available until May
9, 2014.

About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the
spectrum of sense and power and automotive products and embedded processing
solutions. From energy management and savings to trust and data security, from
healthcare and wellness to smart consumer devices, in the home, car and
office, at work and at play, ST is found everywhere microelectronics make a
positive and innovative contribution to people's life. By getting more from
technology to get more from life, ST stands for life.augmented.

In 2013, the Company's net revenues were $8.08 billion. Further information on
ST can be found at www.st.com.

                              (tables attached)

STMicroelectronics                                
N.V.
Consolidated                                      
Statements of Income
(in millions of U.S.
dollars, except per                               
share data ($))
                                                 
                     Three Months Ended
                     (Unaudited)                  (Unaudited)
                     March 29,                    March 30,
                     2014                         2013
                                                 
Net sales              1,801    2,003
Other revenues         24  6
 NET REVENUES         1,825    2,009
Cost of sales          (1,226)    (1,381)
 GROSS PROFIT         599   628
Selling, general and   (228)   (279)
administrative
Research and           (378)   (533)
development
Other income and       15  4
expenses, net
Impairment,
restructuring charges  (12)  (101)
and other related
closure costs
 Total Operating      (603)   (909)
Expenses
 OPERATING LOSS           (281)
                      (4)
Interest expense, net     
                      (2)                          (7)
Loss on equity-method      (13)
investments           (8)
Gain on financial       
instruments, net      1                            -
LOSS BEFORE INCOME     (13)  (301)
TAXES
 AND NONCONTROLLING                             
INTEREST
Income tax benefit         4
(expense)             (9)
 NET LOSS             (22)  (297)
Net loss (income)
attributable to            126
noncontrolling        (2)
interest
 NET LOSS
ATTRIBUTABLE TO        (24)  (171)
PARENT COMPANY
                                                 
 EARNINGS PER SHARE
(BASIC) ATTRIBUTABLE   (0.03)   (0.19)
TO PARENT COMPANY
STOCKHOLDERS
 EARNINGS PER SHARE
(DILUTED)
ATTRIBUTABLE TO        (0.03)   (0.19)
PARENT COMPANY
STOCKHOLDERS
                                                 
 NUMBER OF WEIGHTED                              
AVERAGE
 SHARES USED IN                                  
CALCULATING
 DILUTED EARNINGS    890.7                        888.0
PER SHARE

STMicroelectronics N.V.                                          
CONSOLIDATED BALANCE SHEETS                                      
As at                                     March 29,   December 31, March 30,
In millions of U.S. dollars               2014        2013         2013
                                         (Unaudited) (Audited)    (Unaudited)
ASSETS                                                           
Current assets:                                                  
Cash and cash equivalents                 1,744       1,836        1,718
Short-term deposits                       1           1            1
Marketable securities                     -           57           187
Trade accounts receivable, net            1,112       1,049        1,025
Inventories                               1,331       1,336        1,306
Deferred tax assets                       130         123          141
Assets held for sale                      -           16           37
Other current assets                      382         389          501
Total current assets                      4,700       4,807        4,916
Goodwill                                  90          90           140
Other intangible assets, net              228         217          208
Property, plant and equipment, net        3,066       3,156        3,275
Non-current deferred tax assets           222         227          439
Restricted cash                           -           -            4
Long-term investments                     72          76           110
Other non-current assets                  639         600          540
                                         4,317       4,366        4,716
Total assets                              9,017       9,173        9,632
                                                                
LIABILITIES AND EQUITY                                           
Current liabilities:                                             
Short-term debt                           225         225          250
Trade accounts payable                    764         694          862
Other payables and accrued liabilities    866         937          997
Dividends payable to stockholders         4           89           -
Deferred tax liabilities                  -           -            11
Accrued income tax                        51          48           77
Total current liabilities                 1,910       1,993        2,197
Long-term debt                            908         928          647
Post-employment benefit obligations       366         366          474
Long-term deferred tax liabilities        10          11           15
Other long-term liabilities               148         158          351
                                         1,432       1,463        1,487
Total liabilities                         3,342       3,456        3,684
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   1,156       1,156        1,156
value, 1,200,000,000 shares authorized,
910,710,805 shares issued, 890,689,950
shares outstanding)
Capital surplus                           2,587       2,581        2,559
Retained earnings                         1,052       1,076        1,788
Accumulated other comprehensive income    1,024       1,042        673
Treasury stock                            (212)       (212)        (239)
Total parent company stockholders' equity 5,607       5,643        5,937
Noncontrolling interest                   68          74           11
Total equity                              5,675       5,717        5,948
Total liabilities and equity              9,017       9,173        9,632



STMicroelectronics                                           
N.V.
                                                            
SELECTED CASH FLOW                                           
DATA
                                                            
Cash Flow Data (in Q1 2014               Q4 2013               Q1 2013
US$ millions)
                                                            
Net Cash from                              
operating          53                     270 66
activities
Net Cash used in                              
investing          (39)                   (145) (81)
activities
Net Cash from
(used in)           (105)  270 
financing                                                      (481)
activities
Net Cash increase        402 
(decrease)         (92)                                        (532)
                                                            
Selected Cash Flow
Data (in US$       Q1 2014               Q4 2013               Q1 2013
millions)
                                                            
Depreciation &         225                   237
amortization       205
Net payment for                                                
Capital             (112)  (133)  (111)
expenditures
Dividends paid to        (89) 
stockholders       (85)                                        (89)
Change in            
inventories, net   6                     -                   30

(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.

Q1 2014                        Gross  Operating     Net
(US$ millions and cents per    Profit Income (loss) Earnings Corresponding EPS
share)
U.S. GAAP                      599    (4)           (24)     (0.03)
Impairment & Restructuring           12            12       
Estimated Income Tax Effect                       (1)
Non-U.S GAAP                   599    8             (13)     (0.01)

Q4 2013                        Gross  Operating     Net
(US$ millions and cents per    Profit Income (loss) Earnings Corresponding EPS
share)
U.S. GAAP                      662    (11)          (36)     (0.04)
Impairment & Restructuring           29            29       
Estimated Income Tax Effect                       (6)
Non-U.S GAAP                   662    18            (13)     (0.01)

Q1 2013                        Gross  Operating     Net
(US$ millions and cents per    Profit Income (loss) Earnings Corresponding EPS
share)
U.S. GAAP                      628    (281)         (171)    (0.19)
Impairment & Restructuring           101           58       
Estimated Income Tax Effect                       (3)
Non-U.S GAAP                   628    (180)         (116)    (0.13)

                                                                   (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$ March 29, 2014 December 31, 2013 March 30, 2013
millions)
Cash and cash equivalents      1,744          1,836             1,718
Marketable securities          -              57                187
Short-term deposits            1              1                 1
Non-current restricted cash    -              -                 4
Total financial resources      1,745          1,894             1,910
Short-term debt               (225)          (225)             (250)
Long-term debt                 (908)          (928)             (647)
Total financial debt           (1,133)        (1,153)           (897)
Net financial position         612            741               1,013

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

Free cash flow (in US$ millions)                       Q1 2014 Q4 2013 Q1 2013
Net cash from operating activities                     53      270     66
Net cash used in investing activities                  (39)    (145)   (81)
Proceeds from sale of marketable securities and net    (65)    (34)    (50)
cash variation for joint ventures deconsolidation
Free cash flow                                         (51)    91      (65)

                                   --end---

ST Q1 2014 press release http://hugin.info/152740/R/1780642/608865.pdf

HUG#1780642

CONTACT: STMicroelectronics
         INVESTOR RELATIONS:
         Tait Sorensen
         Group VP, Investor Relations
         Tel: +1 602 485 2064
         tait.sorensen@st.com

         MEDIA RELATIONS:
         Nelly Dimey
         Director, Corporate Media and Public Relations
         Tel: + 33 1 58 07 77 85
         nelly.dimey@st.com

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