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. Such forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "may," "will," "should,", "would be" or "anticipates" or similar expressions or the negative thereof or other variations thereof, or by discussions of strategy, plans or intentions. Some of the risk factors we face 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, 2007, as filed with the SEC on March 3, 2008. 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 information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Risk Factors" from time to time in our SEC filings, including our Form 20-F, could have a material adverse effect on our results of operations or financial condition.
Conference Call Information
The management of STMicroelectronics will conduct a conference call on October 29, 2008 at 9:00 a.m. U.S. Eastern Time / 2:00 p.m. CET, to discuss operating performance for the third quarter of 2008.
The conference call will be available via the Internet by accessing the following Web address: 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 November 7, 2008.
About STMicroelectronics
STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2007, the Company's net revenues were $10 billion. Further information on ST can be found at www.st.com.
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at September 27, June 28, December 31,
In million of U.S. dollars 2008 2008 2007
(Unaudited) (Unaudited) (Audited)
----------- ----------- ---------
ASSETS
======
Current assets:
Cash and cash equivalents 868 2,136 1,855
Marketable securities 726 898 1,014
Trade accounts receivable, net 1,520 1,473 1,605
Inventories, net 1,787 1,580 1,354
Deferred tax assets 252 246 205
Assets held for sale 0 61 1,017
Receivables, net on
transactions on-behalf 72
Other receivables and assets 694 734 612
--- --- ---
Total current assets 5,919 7,128 7,662
Goodwill 1,030 315 290
Other intangible assets, net 904 309 238
Property, plant and
equipment, net 5,065 5,059 5,044
Long-term deferred tax assets 370 283 237
Equity investments 691 1,032 0
Restricted cash 250 250 250
Non-current marketable securities 297 300 369
Other investments and other
non-current assets 458 377 182
--- --- ---
9,065 7,925 6,610
Total assets 14,984 15,053 14,272
------ ------ ------
LIABILITIES AND SHAREHOLDERS' EQUITY
====================================
Current liabilities:
Current portion of long-term debt 63 153 103
Trade accounts payable 1,156 1,161 1,065
Other payables and accrued
liabilities 1,165 981 744
Dividends payable to shareholders 163 242 0
Deferred tax liabilities 19 10 11
Accrued income tax 142 132 154
--- --- ---
Total current liabilities 2,708 2,679 2,077
Long-term debt 2,487 2,313 2,117
Reserve for pension and
termination indemnities 301 304 323
Long-term deferred tax liabilities 109 33 14
Other non-current liabilities 323 311 115
--- --- ---
3,220 2,961 2,569
Total liabilities 5,928 5,640 4,646
Commitment and contingencies
Minority interests 290 56 53
Common stock (preferred
stock: 540,000,000
shares authorized, not issued; 1,156 1,156 1,156
common stock: Euro 1.04 nominal
value, 1,200,000,000 shares
authorized, 910,307,305 shares
issued, 883,460,327 shares
outstanding)
Capital surplus 2,311 2,145 2,097
Accumulated result 4,444 4,736 5,274
Accumulated other
comprehensive income 1,276 1,593 1,320
Treasury stock -421 -273 -274
---- ---- ----
Shareholders' equity 8,766 9,357 9,573
----- ----- -----
Total liabilities and
shareholders' equity 14,984 15,053 14,272
------ ------ ------
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Nine Months Ended
------------- -----------------
September 27, September 27, September 29,
In million of U.S. dollars 2008 2008 2007
(Unaudited) (Unaudited) (Unaudited)
---------- ---------- ----------
Cash flows from
operating
activities:
Net loss -289 -421 -496
Items to reconcile net income
(loss) and cash flows from
operating activities
Depreciation and amortization 343 1,009 1,079
Amortization of discount
on convertible debt 4 13 13
Other-than-temporary
impairment charge on
financial assets 14 82 0
Other non-cash items 62 73 78
Minority interests in
net income of subsidiaries 9 12 4
Deferred income tax -38 -41 -13
(Earnings) loss on equity
investments 344 350 -12
Impairment, restructuring
charges and other related
closure costs, net of
cash payments -4 333 905
Changes in assets and liabilities:
Trade receivables, net 0 165 -36
Inventories, net 46 -133 9
Trade payables -42 101 -45
Other assets and
liabilities, net -35 -211 -35
--- ---- ---
Net cash from operating
activities 414 1,332 1,451
Cash flows from investing
activities:
Payment for purchases of
tangible assets -247 -777 -735
Payment for purchases of
marketable securities 0 0 -708
Proceeds from sale of
marketable securities 127 287 100
Proceeds from matured
short-term deposits 0 0 250
Restricted cash for equity
investments 0 0 -32
Investment in intangible and
financial assets -27 -68 -64
Payment for business
acquisitions,
net of cash and cash
equivalents acquired -1,517 -1,687 0
------ ------ -
Net cash used in
Investing activities -1,664 -2,245 -1,189
Cash flows from financing
activities:
Proceeds from long-term debt 251 387 82
Proceeds from repurchase
agreements 249 249 0
Extinguishment of
obligations under
repurchase agreements -249 -249 0
Repayment of long-term debt -13 -64 -112
Capital increase 0 0 2
Repurchase of common stock -148 -231 0
Dividends paid -80 -161 -269
Dividends paid to
minority interests 0 0 -6
- - --
Net cash from (used in)
financing activities 10 -69 -303
Effect of changes in
exchange rates -28 -5 32
--- -- --
Net cash decrease -1,268 -987 -9
------ ---- --
Cash and cash equivalents at
beginning of the period 2,136 1,855 1,659
Cash and cash equivalents at
end of the period 868 868 1,650
STMicroelectronics N.V.
Consolidated Statements of Income
(in million of U.S. dollars, except per share data ($))
Three Months Ended
------------------
(Unaudited) (Unaudited)
----------- -----------
September 27, September 29,
2008 2007
---- ----
Net sales 2,687 2,555
Other revenues 9 10
- --
NET REVENUES 2,696 2,565
Cost of sales -1,737 -1,663
------ ------
GROSS PROFIT 959 902
Selling, general and administrative -297 -272
Research and development -602 -442
Other income and expenses, net 17 24
Impairment, restructuring charges and other
related closure costs -22 -31
--- ---
Total Operating Expenses -904 -721
---- ----
OPERATING INCOME 55 181
-- ---
Other-than-temporary impairment charge on
financial assets -14 0
Interest income, net 8 22
Earnings (loss) on equity investments -344 3
---- -
INCOME (LOSS) BEFORE INCOME TAXES
AND MINORITY INTERESTS -295 206
Income tax benefit (expense) 15 -18
-- ---
INCOME (LOSS) BEFORE MINORITY INTERESTS -280 188
Minority interests -9 -1
-- --
NET INCOME (LOSS) -289 187
==== ===
EARNINGS (LOSS) PER SHARE (BASIC) -0.32 0.21
EARNINGS (LOSS) PER SHARE (DILUTED) -0.32 0.20
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
DILUTED INCOME (LOSS) PER SHARE 890.3 945.2
STMicroelectronics N.V.
Consolidated Statements of Income
(in million of U.S. dollars, except per share data ($))
Nine Months Ended
-----------------
(Unaudited) (Unaudited)
----------- -----------
September 27, September 29,
2008 2007
---- ----
Net sales 7,528 7,233
Other revenues 38 25
-- --
NET REVENUES 7,566 7,258
Cost of sales -4,828 -4,733
------ ------
GROSS PROFIT 2,738 2,525
Selling, general and administrative -882 -803
Research and development -1,581 -1,322
Other income and expenses, net 56 20
Impairment, restructuring charges
And other related closure costs -390 -949
---- ----
Total Operating Expenses -2,797 -3,054
------ ------
OPERATING LOSS -59 -529
--- ----
Other-than-temporary impairment
charge on financial assets -82 0
Interest income, net 48 57
Earnings (loss) on equity investments -350 12
---- --
LOSS BEFORE INCOME TAXES
AND MINORITY INTERESTS -443 -460
Income tax benefit (expense) 34 -32
-- ---
LOSS BEFORE MINORITY INTERESTS -409 -492
Minority interests -12 -4
--- --
NET LOSS -421 -496
==== ====
LOSS PER SHARE (BASIC) -0.47 -0.55
LOSS PER SHARE (DILUTED) -0.47 -0.55
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
DILUTED LOSS PER SHARE 896.8 898.5
Web site: http://www.st.com/
