Microcontroller, Memory and Secure MCU (MMS)
- Continued STM32 momentum with several design wins for the STM32 family for smart-watch applications at major global OEMs, as a sensor-hub in various mobile applications at a major manufacturer, and in a next-generation low-power fitness-monitoring system at a key Americas OEM.
- Ramped production of STM32 controllers for Wi-Fi modules for Internet of Things applications at various customers.
- Earned a win from a leading home-appliance manufacturer for our dual-interface memory / dynamic NFC RFID tag in a washing machine.
- Captured the prestigious 'Electron d'Or 2013' award from ElectroniqueS Magazine for the ST31, the first 32-bit Contactless Secure Microcontroller.
Digital Convergence (DCG)
- Continued building momentum for ASICs to be manufactured in 28nm FD-SOI technology, with two new design wins for networking and consumer applications.
- Maintained success with worldwide customers of awards for new set-top box Class2 product family, which has now also obtained the full certification from Nagra and Viaccess.
- Began an important design at a key customer for the US cable modem based on the Orly/STiD platform.
- Captured multiple design-ins of DisplayPort smart connectivity products in various applications, including 4Kx2K TV, the first TV with DisplayPort input, at a large global consumer manufacturer.
Imaging, Bi-CMOS, ASIC and Silicon Photonics (IBP)
- Won a slot for the Image Signal Processor from a leading phone manufacturer.
- Secured design wins for ASICs using Silicon Photonics with two of the world's top optical communications manufacturers.
- Collected a broad range of design wins from many customers that use ST BiCMOS or Silicon Photonics process technology in almost 30 new ASIC projects.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information, including operating income (loss) before impairment, restructuring and one-time items, operating margin before impairment, restructuring and one-time items, operating margin before impairment, restructuring and one-time items attributable to ST, adjusted net earnings, adjusted net earnings per share, free cash flow, net financial position and net financial position, adjusted to account for 50% investment in ST-Ericsson.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information by other companies.
See Attachment A of this press release for a reconciliation of the Company's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with the Company's consolidated financial statements prepared in accordance with U.S. GAAP.
Forward-looking information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements, due to, among other factors:
- uncertain macro-economic and industry trends;
- customer demand and acceptance for the products which we design, manufacture and sell;
- unanticipated events or circumstances which may 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 require us to reassess our current plans concerning the break up and wind down of our ST-Ericsson joint venture;
- the loading and the manufacturing performances 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 July 23, 2013, the management of STMicroelectronics will conduct a conference call to discuss the Company's operating performance for the second quarter of 2013.
The conference call will be held at 9:00 a.m. U.S. Eastern Time / 3:00 p.m. CET. The conference call will be available live via the Internet by accessing http://investors.st.com. Those accessing the webcast should go to the Web site at least 15 minutes prior to the call, in order to register, download, and install any necessary audio software. The webcast will be available until August 2, 2013.
About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the spectrum of sense and power and automotive products and embedded processing solutions. From energy management and savings to trust and data security, from healthcare and wellness to smart consumer devices, in the home, car and office, at work and at play, ST is found everywhere microelectronics make a positive and innovative contribution to people's life. By getting more from technology to get more from life, ST stands for life.augmented.
In 2012, the Company's net revenues were $8.49 billion. Further information on ST can be found at www.st.com.
(tables attached)
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STMicroelectronics N.V.
Consolidated Statements of Income
(in millions of U.S. dollars, except per share
data ($))
Three Months Ended
(Unaudited) (Unaudited)
-------------------------
June 29, June 30,
2013 2012
-------------------------
Net sales 2,034 2,140
Other revenues 11 8
-------------------------
NET REVENUES 2,045 2,148
Cost of sales (1,373) (1,412)
-------------------------
GROSS PROFIT 672 736
Selling, general and administrative (285) (292)
Research and development (453) (617)
Other income and expenses, net 2 22
Impairment, restructuring charges and other
related closure costs (43) (56)
-------------------------
Total Operating Expenses (779) (943)
-------------------------
OPERATING LOSS (107) (207)
Interest income (expense), net 7 (6)
Income (loss) on equity-method investments (89) (2)
LOSS BEFORE INCOME TAXES (189) (215)
AND NONCONTROLLING INTEREST
Income tax benefit (expense) 16 (20)
-------------------------
NET LOSS (173) (235)
Net loss (income) attributable to noncontrolling
interest 21 160
-------------------------
NET LOSS ATTRIBUTABLE TO PARENT COMPANY (152) (75)
=========================
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO
PARENT COMPANY STOCKHOLDERS (0.17) (0.08)
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO
PARENT COMPANY STOCKHOLDERS (0.17) (0.08)
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
EARNINGS PER SHARE 889.0 886.1
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STMicroelectronics N.V.
Consolidated Statements of Income
(in millions of U.S. dollars, except per share
data ($))
Six Months Ended
(Unaudited) (Unaudited)
-------------------------
June 29, June 30,
2013 2012
-------------------------
Net sales 4,037 4,150
Other revenues 18 15
-------------------------
NET REVENUES 4,055 4,165
Cost of sales (2,755) (2,833)
-------------------------
GROSS PROFIT 1,300 1,332
Selling, general and administrative (564) (602)
Research and development (986) (1,250)
Other income and expenses, net 6 35
Impairment, restructuring charges and other
related closure costs (144) (74)
-------------------------
Total Operating Expenses (1,688) (1,891)
-------------------------
OPERATING LOSS (388) (559)
Interest expense, net - (19)
Loss on equity-method investments (102) (9)
Gain on financial instruments, net - 3
LOSS BEFORE INCOME TAXES (490) (584)
AND NONCONTROLLING INTEREST
Income tax benefit 21 14
-------------------------
NET LOSS (469) (570)
Net loss (income) attributable to noncontrolling
interest 147 318
-------------------------
NET LOSS ATTRIBUTABLE TO PARENT COMPANY (322) (252)
=========================
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO
PARENT COMPANY STOCKHOLDERS (0.36) (0.28)
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO
PARENT COMPANY STOCKHOLDERS (0.36) (0.28)
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
EARNINGS PER SHARE 888.5 885.5
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STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at June 29, March 30, December 31,
In millions of U.S. dollars 2013 2013 2012
--------------------------------------
(Unaudited) (Unaudited) Audited
----------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents 1,583 1,718 2,250
Short-term deposits 1 1 1
Marketable securities 189 187 238
Trade accounts receivable, net 1,118 1,025 1,005
Inventories 1,336 1,306 1,353
Deferred tax assets 224 141 137
Assets held for sale 28 37 -
Other current assets 567 501 518
--------------------------------------
Total current assets 5,046 4,916 5,502
Goodwill 135 140 141
Other intangible assets, net 250 208 213
Property, plant and equipment, net 3,276 3,275 3,481
Non-current deferred tax assets 395 439 414
Restricted cash - 4 4
Long-term investments 29 110 119
Other non-current assets 512 540 560
--------------------------------------
4,597 4,716 4,932
--------------------------------------
Total assets 9,643 9,632 10,434
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt 313 250 630
Trade accounts payable 985 862 797
Other payables and accrued
liabilities 993 997 942
Dividends payable to stockholders 94 - 89
Deferred tax liabilities 1 11 11
Accrued income tax 65 77 86
--------------------------------------
Total current liabilities 2,451 2,197 2,555
Long-term debt 651 647 671
Post-retirement benefit obligations 492 474 477
Long-term deferred tax liabilities 15 15 14
Other long-term liabilities 357 351 353
--------------------------------------
1,515 1,487 1,515
Total liabilities 3,966 3,684 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
authorized, 910,622,305 shares
issued, 890,459,183 shares
outstanding) 1,156 1,156 1,156
Capital surplus 2,564 2,559 2,555
Retained earnings 1,433 1,788 1,959
Accumulated other comprehensive
income 749 673 794
Treasury stock (213) (239) (239)
--------------------------------------
Total parent company stockholders'
equity 5,689 5,937 6,225
Noncontrolling interest (12) 11 139
--------------------------------------
Total equity 5,677 5,948 6,364
Total liabilities and equity 9,643 9,632 10,434
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STMicroelectronics N.V.
SELECTED CASH FLOW DATA
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Cash Flow Data (in US$ millions) Q2 2013 Q1 2013 Q2 2012
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Net Cash from (used in) operating 15 66 (37)
activities
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Net Cash used in investing activities (146) (81) (199)
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Net Cash from (used in) financing (12) (481) 33
activities
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Net Cash decrease (135) (532) (253)
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Selected Cash Flow Data (in US$ millions) Q2 2013 Q1 2013 Q2 2012
----------------------------------------------------------------------------
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Depreciation & amortization 224 237 281
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Net payment for Capital expenditures (121) (111) (70)
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Dividends paid to stockholders* (75) (89) (89)
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Change in inventories, net (18) 30 (21)
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* The amount paid in Q2 2013 does not include the American
investors, paid in July 2013.
