STMicroelectronics Reports 2021 Third Quarter Financial Results

• Q 3 net revenues $ 3.20 billion; gross margin 4 1 . 6 %; operating margin 1 8.9 % ; net income $ 474 million
• YTD net revenues $ 9.20 billion; gross margin 40.4 %; operating margin 1 6.7 %; net income $ 1.25 b illion
• B usiness outlook at the mid-point: Q 4 net revenues of $ 3.40 billion and gross margin of 43.0 %
  
  

Geneva, October 2 8 , 202 1 - STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the third quarter ended October 2, 2021. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported third quarter net revenues of $3.20 billion, gross margin of 41.6%, operating margin of 18.9%, and net income of $474 million or $0.51 diluted earnings per share.

Jean-Marc Chery, STMicroelectronics President & CEO, commented:

• “ Q3 net revenues came in substantially at the mid - point of our business outlook range , up 6.9% sequentially and up 19.9% on a year-over-year basis. Th e revenue performance was driven by strong global demand and by our engaged customer programs in Personal Electronic s . This was partially offset by lower than expected revenues in Automotive, caused by more severe than anticipated reduced operations at our Malaysian manufacturing facility due to the pandemic.
• “ Q3 gross margin of 41.6% came in 60 basis points higher than the mid-point. On a year-over-year basis , Q 3 operating margin of 18.9% improved from 12.3%, and net income nearly doubled to $474 million .
• “ F irst nine months net revenues increase d 31 .8 % year-over-year , driven by growth in all product groups , except the RF Communications sub-group . O perating margin was 1 6.7 % and net income $ 1.25 b illion.
• “ ST’s fourth quarter outlook, at the mid-point, is for net revenues of $ 3.40 billion, increasing s equentially by 6.3 % ; gross margin is expected to be about 4 3.0 % .
• “ For the full year 20 21 , we now expect net revenues at the mid-point to be about $ 12.6 billion , translating into 23.3 % year-over-year growth . The revenue growth planned for this year reflects continuing strong dynamics in all the end markets we address and our engaged customer programs. ”

Quarterly Financial Summary (U.S. GAAP)