- Samsung continues to incorporate the ST-Ericsson NovaThor ModAp platforms into their award-winning Samsung GALAXY smartphone line with the announcement of the Samsung GALAXY Beam and Samsung GALAXY Ace 2.
- China Unicom and Yulong are now customers of the NovaThor platform. The NovaThor U8500 ModAp platform powers the new Coolpad Cheer CP7728.
- The Xperia™ go smartphone became the fourth phone this year from Sony Mobile Communications to leverage the ST-Ericsson NovaThor platform.
- The Shanda Bambook smartphone - the first from the China-based company - is powered by the ST-Ericsson NovaThor U8500 ModAp solution. It is the first of several smartphones planned by Shanda to use the ST-Ericsson NovaThor platform.
- Powering two new Panasonic ELUGA devices for the Japan market is the compact yet power efficient Thor M5780 thin modem.
- A new Sharp AQUOS smartphone is based on the power efficient ST-Ericsson Thor M5730 and available now in Japan.
Cartesio+, Mystique, STarGRID, iNEMO, STM32 and Orly are trademarks of STMicroelectronics. Thor and NovaThor are trademarks of ST-Ericsson. All other trademarks are the property of their respective owners.
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 (loss), adjusted net earnings (loss) per share, free cash flow, RONA attributable to ST, 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 in such statements due to, among other factors:
- the possible impact of an impairment charge on the carrying value of the ST-Ericsson investment in our books of approximately $1.6 billion, as well as on our consolidated results, which is dependent on the successful execution of ST-Ericsson's new strategic direction plan and its related savings announced on April 23rd 2012;
- changes in demand in the key application markets and/or from key customers served by our products, including demand for products where we have achieved design wins and/or demand for applications where we are targeting growth, all of which make it extremely difficult to accurately forecast and plan our future business activities;
- our ability in periods of reduced market demand or visibility to reduce our expenses as required, as well as our ability to operate our manufacturing facilities at sufficient levels with existing process technologies to cover our fixed operating costs;
- our ability, in an intensively competitive environment, to identify and allocate necessary design resources to successfully develop and secure customer acceptance for new products meeting their expectations as well as our ability to achieve our pricing expectations for high-volume supplies of new products in whose development we have been, or are currently, investing;
- the financial impact of obsolete or excess inventories if actual demand differs from our expectations as well as the ability of our customers to successfully compete in the markets they serve using our products;
- our ability to maintain or improve our competiveness especially in light of the increasing volatility in the foreign exchange markets and, more particularly, in 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;
- the outcome of ongoing litigation as well as any new litigation to which we may become a defendant;
- 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 are results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
- product warranty or liability claims based on epidemic or delivery failures or recalls by our customers for a product containing one of our parts;
- availability and costs of raw materials, utilities, third-party manufacturing services, or other supplies required by our operations; and
- current macro-economic and industry uncertainties, the Eurozone crisis and other global factors which may result in limited growth or recession in one or more important regions of the world economy, sovereign default, changes in the political, social, economic or infrastructure environment, including as a result of military conflict, social unrest and/or terrorist activities, as well as natural events such as severe weather, health risks, epidemics, earthquakes, tsunami, volcano eruptions or other acts of nature in, or affecting, the countries in which we, our key customers or our suppliers, operate all of which may in turn also cause unplanned disruptions in our supply chain and reduced or delayed demand from our customers.
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, 2011, as filed with the SEC on March 5, 2012. 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 24, 2012, the management of STMicroelectronics will conduct a conference call to discuss the Company's operating performance for the second quarter of 2012.
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 3, 2012.
About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the spectrum of sense and power technologies and multimedia convergence applications. 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 2011, the Company's net revenues were $9.73 billion. Further information on ST can be found at www.st.com.
(tables attached)
STMicroelectronics N.V.
Consolidated Statements of Income
(in millions of U.S. dollars, except per share data ($))
Three Months Ended
------------------------
(Unaudited) (Unaudited)
----------- -----------
June 30, July 2,
2012 2011
----------- -----------
Net sales 2,140 2,545
Other revenues 8 22
----------- -----------
NET REVENUES 2,148 2,567
Cost of sales (1,412) (1,590)
----------- -----------
GROSS PROFIT 736 977
Selling, general and administrative (292) (316)
Research and development (617) (579)
Other income and expenses, net 22 32
Impairment, restructuring charges and other
related closure costs (56) (31)
----------- -----------
Total Operating Expenses (943) (894)
----------- -----------
OPERATING INCOME (LOSS) (207) 83
Realized gain on financial assets - 323
Interest expense, net (6) (3)
Earnings (loss) on equity-method investments (2) (9)
INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTEREST (215) 394
Income tax expense (20) (83)
----------- -----------
NET INCOME (LOSS) (235) 311
Net loss (income) attributable to noncontrolling
interest 160 109
----------- -----------
NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY (75) 420
=========== ===========
EARNINGS (LOSS) PER SHARE (BASIC) ATTRIBUTABLE
TO PARENT COMPANY STOCKHOLDERS (0.08) 0.48
EARNINGS (LOSS) PER SHARE (DILUTED) ATTRIBUTABLE
TO PARENT COMPANY STOCKHOLDERS (0.08) 0.46
NUMBER OF WEIGHTED AVERAGE SHARES USED IN
CALCULATING DILUTED EARNINGS (LOSS) PER SHARE 886.1 907.0
STMicroelectronics N.V.
Consolidated Statements of Income
(in millions of U.S. dollars, except per share data ($))
Six Months Ended
------------------------
(Unaudited) (Unaudited)
----------- -----------
June 30, July 2,
2012 2011
----------- -----------
Net sales 4,150 5,068
Other revenues 15 33
----------- -----------
NET REVENUES 4,165 5,101
Cost of sales (2,833) (3,134)
----------- -----------
GROSS PROFIT 1,332 1,967
Selling, general and administrative (602) (628)
Research and development (1,250) (1,141)
Other income and expenses, net 35 58
Impairment, restructuring charges and other
related closure costs (74) (55)
----------- -----------
Total Operating Expenses (1,891) (1,766)
----------- -----------
OPERATING INCOME (LOSS) (559) 201
Other-than-temporary impairment charge and
realized gain on financial assets - 318
Interest expense, net (19) (18)
Loss on equity-method investments (9) (15)
Gain on financial instruments, net 3 22
INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTEREST (584) 508
Income tax benefit (expense) 14 (114)
----------- -----------
NET INCOME (LOSS) (570) 394
Net loss (income) attributable to noncontrolling
interest 318 196
----------- -----------
NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY (252) 590
=========== ===========
EARNINGS (LOSS) PER SHARE (BASIC) ATTRIBUTABLE
TO PARENT COMPANY STOCKHOLDERS (0.28) 0.67
EARNINGS (LOSS) PER SHARE (DILUTED) ATTRIBUTABLE
TO PARENT COMPANY STOCKHOLDERS (0.28) 0.65
NUMBER OF WEIGHTED AVERAGE SHARES USED IN
CALCULATING DILUTED EARNINGS (LOSS) PER SHARE 885.5 907.2
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at June 30, March 31, December 31,
In millions of U.S. dollars 2012 2012 2011
----------- ----------- ------------
(Unaudited) (Unaudited) (Audited)
----------- ----------- ------------
ASSETS
Current assets:
Cash and cash equivalents 1,806 2,059 1,912
Restricted cash - 3 3
Marketable securities 259 154 413
Trade accounts receivable, net 1,072 971 1,046
Inventories, net 1,489 1,508 1,531
Deferred tax assets 175 170 141
Assets held for sale 20 22 28
Other current assets 578 589 506
----------- ----------- ------------
Total current assets 5,399 5,476 5,580
Goodwill 1,054 1,064 1,059
Other intangible assets, net 577 608 645
Property, plant and equipment, net 3,606 3,826 3,920
Non-current deferred tax assets 366 371 332
Restricted cash 4 4 5
Long-term investments 109 116 121
Other non-current assets 432 420 432
----------- ----------- ------------
6,148 6,409 6,514
Total assets 11,547 11,885 12,094
=========== =========== ============
LIABILITIES AND EQUITY
Current liabilities:
Bank overdrafts - - 7
Short-term debt 1,173 1,076 733
Trade accounts payable 965 781 656
Other payables and accrued
liabilities 958 987 976
Dividends payable to stockholders 265 - 88
Deferred tax liabilities 1 15 14
Accrued income tax 94 94 95
----------- ----------- ------------
Total current liabilities 3,456 2,953 2,569
Long-term debt 362 366 826
Post-retirement benefit obligations 414 425 409
Long-term deferred tax liabilities 23 22 21
Other long-term liabilities 282 275 273
----------- ----------- ------------
1,081 1,088 1,529
Total liabilities 4,537 4,041 4,098
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, 910,559,805 shares
issued, 887,244,257 shares
outstanding) 1,156 1,156 1,156
Capital surplus 2,547 2,550 2,544
Retained earnings 2,874 3,328 3,504
Accumulated other comprehensive
income 606 837 670
Treasury stock (247) (271) (271)
----------- ----------- ------------
Total parent company stockholders'
equity 6,936 7,600 7,603
Noncontrolling interest 74 244 393
----------- ----------- ------------
Total equity 7,010 7,844 7,996
----------- ----------- ------------
Total liabilities and equity 11,547 11,885 12,094
=========== =========== ============
STMicroelectronics N.V.
SELECTED CASH FLOW DATA
Cash Flow Data (in US$ millions) Q2 2012 Q1 2012 Q2 2011
------- ------- -------
Net Cash from (used in) operating activities (37) 250 117
Net Cash from (used in) investing activities (199) 113 289
Net Cash from (used in) financing activities 33 (225) 18
Net Cash increase (decrease) (253) 147 427
Selected Cash Flow Data (in US$ millions) Q2 2012 Q1 2012 Q2 2011
------- ------- -------
Depreciation & amortization 281 288 322
Net payment for Capital expenditures (70) (125) (332)
Dividends paid to stockholders (89) (88) (89)
Change in inventories, net (21) 46 (64)
