STMicroelectronics' second quarter net revenues increased 27 percent on a year-over-year basis, with all regions and market segments, excluding telecom, posting double-digit revenue growth. Regional growth was led by the Americas with sales growth of 45 percent, followed by Greater China-South Asia with a 39 percent increase in net revenues.
"ST posted another quarter of improvement in the Company’s financial performance, with revenues, gross margin, operating and net income all showing progressive strengthening sequentially and year-over-year," commented President and CEO Carlo Bozotti. "We were particularly pleased with demand for both IMS and ACCI. In combination, IMS and ACCI delivered sales growth of 51 percent year-over-year and 16 percent sequentially. Obviously, we are not satisfied with the results in wireless. However, we are encouraged by ST-Ericsson’s progress in achieving key design-wins as well as restructuring, towards a progressive recovery."
According to Bozotti, the net income of $356 million reflected the company's gain on the sale of Numonyx to Micron as well as the improving profitability of its core businesses. "As our results demonstrate, we are well positioned to achieve our financial targets as evidenced by the 7.7 percent adjusted operating margin attributable to ST in the second quarter," he added.
ST’s net revenues for the second quarter of 2010 totaled $2.531 billion and included sales recorded by ST-Ericsson as consolidated by ST. Net revenues increased 8.9 percent sequentially, mainly reflecting ACCI and IMS product segments registering better than seasonal sequential revenue growth trends while the company’s Wireless segment decreased by 10.5 percent.
On a year-over-year basis, all market segments, except Telecom, posted growth with Automotive increasing by 48 percent; Industrial, by 43 percent; Consumer, by 42 percent; and Computer, by 23 percent. Telecom declined by 3 percent. Distribution, increased 81 percent, reflecting continued strong global demand. Sequentially, all market segments, except Telecom, increased with Consumer higher by 15 percent, Industrial by 11 percent, Automotive by 10 percent and Computer by 6 percent. Telecom decreased by 2 percent. Distribution increased sequentially by 22 percent.
"Innovative products continue to drive revenue momentum. In the second quarter, several new product areas, including advanced 55nm set-top-box solutions that offer our customers top performance at low power and leading-edge functionality, such as 3D graphics and 3D video; 32-bit microcontrollers; as well as power and analog grew significantly," Bozotti commented. "Important milestones and design wins were also achieved in the quarter such as our gyroscope family entering volume production. Our gyroscope technology is quite broad with target applications including smartphones, robotics, navigation, cameras, gaming and medical devices. In addition, our automotive 32-bit MCU family had continued success with major design-wins, including a body electronics platform from a leading OEM. We also enlarged our general-purpose 32-bit MCU family, sampling to lead customers the STM32L series, the industry's first ultra-low-power ARM CortexTM-M3 microcontroller delivering industry-leading energy-saving performance."
STMicroelectronics
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