STMicroelectronics Reports 2016 Second Quarter and First Half

STMicroelectronics Reports 2016 Second Quarter and First Half Financial Results

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, 2015, as filed with the SEC on March 16, 2016. 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 27, 2016, the management of STMicroelectronics will conduct a conference call to discuss the Company's operating performance for the second quarter of 2016.

The conference call will be held at 9:30 a.m. CET / 8:30 a.m. BST / 3:30 a.m. U.S. Eastern Time (ET) / 12:30 a.m. U.S. Pacific Time (PT). 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 replay will be available until August 12, 2016.

About STMicroelectronics
ST is a global semiconductor leader delivering intelligent and energy-efficient products and solutions that power the electronics at the heart of everyday life. ST's products are found everywhere today, and together with our customers, we are enabling smarter driving and smarter factories, cities and homes, along with the next generation of mobile and Internet of Things devices. By getting more from technology to get more from life, ST stands for life.augmented.

In 2015, the Company's net revenues were $6.90 billion, serving more than 100,000 customers worldwide. Further information can be found at www.st.com

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
Tel: + 33 1 58 07 77 85
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)
	July 02,	June 27,
	2016	2015

Net sales	1,698	1,754
Other revenues	5	6
NET REVENUES	1,703	1,760
Cost of sales	(1,126)	(1,165)
GROSS PROFIT	577	595
Selling, general and administrative	(229)	(226)
Research and development	(336)	(373)
Other income and expenses, net	28	37
Impairment, restructuring charges and other related closure costs	(12)	(21)
Total Operating Expenses	(549)	(583)
OPERATING INCOME	28	12
Interest expense, net	(6)	(6)
Income (loss) on equity-method investments	9	(1)
INCOME BEFORE INCOME TAXES	31	5
AND NONCONTROLLING INTEREST
Income tax benefit (expense)	(6)	31
NET INCOME	25	36
Net loss (income) attributable to noncontrolling interest	(2)	(1)
NET INCOME ATTRIBUTABLE TO PARENT COMPANY	23	35

EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.03	0.04
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.03	0.04

NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
DILUTED EARNINGS PER SHARE	885.5	880.2

STMicroelectronics N.V.
Consolidated Statements of Income
(in millions of U.S. dollars, except per share data ($))

	Six Months Ended
	(Unaudited)	(Unaudited)
	July 02,	June 27,
	2016	2015

Net sales	3,303	3,447
Other revenues	13	18
NET REVENUES	3,316	3,465
Cost of sales	(2,201)	(2,305)
GROSS PROFIT	1,115	1,160
Selling, general and administrative	(457)	(448)
Research and development	(678)	(742)
Other income and expenses, net	55	73
Impairment, restructuring charges and other related closure costs	(40)	(50)
Total Operating Expenses	(1,120)	(1,167)
OPERATING LOSS	(5)	(7)
Interest expense, net	(11)	(11)
Income (loss) on equity-method investments	9	3
LOSS BEFORE INCOME TAXES	(7)	(15)
AND NONCONTROLLING INTEREST
Income tax benefit (expense)	(8)	30
NET INCOME (LOSS)	(15)	15
Net loss (income) attributable to noncontrolling interest	(3)	(3)
NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY	(18)	12

EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	(0.02)	0.01
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	(0.02)	0.01

NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
EARNINGS PER SHARE	879.2	879.6

STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at	July 02,	April 02,	December 31,
In millions of U.S. dollars	2016	2016	2015
	(Unaudited)	(Unaudited)	(Audited)
ASSETS
Current assets:
Cash and cash equivalents	1,682	1,697	1,771
Restricted cash	-	-	4
Marketable securities	345	343	335
Trade accounts receivable, net	886	891	820
Inventories	1,266	1,302	1,251
Deferred tax assets	78	99	91
Assets held for sale	-	-	1
Other current assets	424	468	407
Total current assets	4,681	4,800	4,680
Goodwill	77	79	76
Other intangible assets, net	153	162	166
Property, plant and equipment, net	2,290	2,333	2,321
Non-current deferred tax assets	465	458	436
Long-term investments	57	57	57
Other non-current assets	394	492	459
	3,436	3,581	3,515
Total assets	8,117	8,381	8,195

LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	171	173	191
Trade accounts payable	597	666	525
Other payables and accrued liabilities	654	692	703
Dividends payable to stockholders	165	10	97
Deferred tax liabilities	1	4	2
Accrued income tax	29	52	42
Total current liabilities	1,617	1,597	1,560
Long-term debt	1,430	1,428	1,421
Post-employment benefit obligations	359	367	351
Long-term deferred tax liabilities	13	11	12
Other long-term liabilities	139	161	158
	1,941	1,967	1,942
Total liabilities	3,558	3,564	3,502
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, 910,970,920 shares issued, 883,268,414 shares outstanding)	1,157	1,157	1,157
Capital surplus	2,798	2,790	2,779
Retained earnings	249	483	525
Accumulated other comprehensive income	534	612	460
Treasury stock	(243)	(288)	(289)
Total parent company stockholders' equity	4,495	4,754	4,632
Noncontrolling interest	64	63	61
Total equity	4,559	4,817	4,693
Total liabilities and equity	8,117	8,381	8,195

STMicroelectronics N.V.

SELECTED CASH FLOW DATA

Cash Flow Data (in US$ millions)	Q2 2016	Q1 2016	Q2 2015

Net Cash from operating activities	191	141	223
Net Cash used in investing activities	(144)	(110)	(190)
Net Cash used in financing activities	(60)	(107)	(94)
Net Cash decrease	(15)	(74)	(62)

Selected Cash Flow Data (in US$ millions)	Q2 2016	Q1 2016	Q2 2015

Depreciation & amortization	179	184	181
Net payment for Capital expenditures	(136)	(100)	(161)
Dividends paid to stockholders	(57)	(88)	(93)
Change in inventories, net	20	(22)	(32)

Appendix

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