All of STMicroelectronics' press releases (including all releases in Q2) are available at www.st.com/stonline/press/news/latest.htm
Nomadik, SPEAr, IPAD, FDmesh and PowerMESH are trademarks of STMicroelectronics. All other trademarks or registered trademarks are the property of their respective owners.
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) based on management's current views and assumptions and 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:
-- future developments of the world semiconductor market, in particular
the future demand for semiconductor products in the key application
markets and from key customers served by our products;
-- the results of actions by our competitors, including new product
offerings and our ability to react thereto;
-- curtailments of purchases from key customers or pricing pressures which
are highly variable and difficult to predict;
-- the financial impact of obsolete or excess inventories if actual demand
differs from our anticipations;
-- the impact of intellectual-property 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;
-- our ability to close as planned in the third quarter of 2008 the
purchase of the wireless business of NXP Semiconductors, which we
announced on April 10, 2008, as well as our ability to sign and close
an agreement for the sale of our manufacturing facility in Phoenix (AZ,
USA) in accordance with the currently envisaged terms;
-- changes in the exchange rates between the US dollar and the Euro,
compared to an assumed effective exchange rate of US $1.57 = euro 1.00
and between the U.S. dollar and the currencies of the other major
countries in which we have our operating infrastructure;
-- our ability to manage in an intensely competitive and cyclical
industry, where a high percentage of our costs are fixed, incurred in
currencies other than US dollars which is our reporting currency and
difficult to reduce in the short term;
-- our ability to adequately utilize and operate our manufacturing
facilities at sufficient levels to cover fixed operating costs;
-- our ability to restructure in accordance with our plans if unforeseen
events require adjustments or delays in implementation;
-- our ability in an intensively competitive environment to secure
customer acceptance and to achieve our pricing expectations for
high-volume supplies of new products in whose development we have been,
or are currently, investing;
-- the ability of our suppliers to meet our demands for supplies and
materials and to offer competitive pricing;
-- significant differences in the gross margins we achieve compared to
expectations, based on changes in revenue levels, product mix and
pricing, capacity utilization, variations in inventory valuation,
excess or obsolete inventory, manufacturing yields, changes in unit
costs, impairments of long-lived assets (including manufacturing,
assembly/test and intangible assets), and the timing, execution and
associated costs for the announced transfer of manufacturing from
facilities designated for closure and associated costs, including
start-up costs;
-- changes in the economic, social or political environment, including
military conflict and/or terrorist activities, as well as natural
events such as severe weather, health risks, epidemics or earthquakes
in the countries in which we, our key customers and our suppliers,
operate;
-- changes in our overall tax position as a result of changes in tax laws
or the outcome of tax audits, and our ability to accurately estimate
tax credits, benefits, deductions and provisions and to realize
deferred tax assets.
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 July 23, 2008, at 9:00 a.m. U.S. Eastern Time / 3:00 p.m. CET, to discuss operating performance for the second 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 August 1, 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 June 28, March 30, December 31,
In million of U.S. dollars 2008 2008 2007
(Unaudited) (Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents 2,136 2,060 1,855
Marketable securities 898 1,060 1,014
Trade accounts receivable, net 1,473 1,546 1,605
Inventories, net 1,580 1,539 1,354
Deferred tax assets 246 230 205
Assets held for sale 61 0 1,017
Other receivables and assets 734 626 612
Total current assets 7,128 7,061 7,662
Goodwill 315 314 290
Other intangible assets, net 309 317 238
Property, plant and equipment, net 5,059 5,391 5,044
Long-term deferred tax assets 283 270 237
Equity investments 1,032 1,035 0
Restricted cash 250 250 250
Non-current marketable securities 300 339 369
Other investments and other
non-current assets 377 357 182
7,925 8,273 6,610
Total assets 15,053 15,334 14,272
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt 153 300 103
Trade accounts payable 1,161 1,114 1,065
Other payables and accrued
liabilities 981 912 744
Dividends payable to shareholders 242 0 0
Deferred tax liabilities 10 13 11
Accrued income tax 132 139 154
Total current liabilities 2,679 2,478 2,077
Long-term debt 2,313 2,324 2,117
Reserve for pension and
termination indemnities 304 302 323
Long-term deferred tax
liabilities 33 32 14
Other non-current liabilities 311 306 115
2,961 2,964 2,569
Total liabilities 5,640 5,442 4,646
Commitment and contingencies
Minority interests 56 54 53
Common stock (preferred stock:
540,000,000 shares authorized,
not issued; common stock:
Euro 1.04 nominal value,
1,200,000,000 shares
authorized, 910,307,305 shares
issued, 896,245,351 shares
outstanding) 1,156 1,156 1,156
Capital surplus 2,145 2,131 2,097
Accumulated result 4,736 5,190 5,274
Accumulated other comprehensive
income 1,593 1,635 1,320
Treasury stock -273 -274 -274
Shareholders' equity 9,357 9,838 9,573
Total liabilities and
shareholders' equity 15,053 15,334 14,272
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months
Ended Six Months Ended
June 28, June 28, June 30,
In million of U.S. dollars 2008 2008 2007
(Unaudited) (Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss -47 -131 -684
Items to reconcile net loss and
cash flows from operating
activities
Depreciation and amortization 325 666 770
Amortization of discount on
convertible debt 5 9 9
Other-than-temporary
impairment charge on
financial assets 39 69 0
Other non-cash items -10 11 39
Minority interests 1 2 4
Deferred income tax -32 -3 -7
(Earnings) loss on equity
investments 5 5 -9
Impairment, restructuring
charges and other related
closure costs, net of cash
payments 170 337 885
Changes in assets and
liabilities:
Trade receivables, net 69 165 46
Inventories, net -37 -179 -53
Trade payables 58 143 -2
Other assets and liabilities,
net -130 -176 -58
Net cash from operating activities 416 918 940
Cash flows from investing activities:
Payment for purchase of tangible
assets -272 -530 -507
Payment for purchase of
marketable securities 0 0 -682
Proceeds from sale of marketable
securities 160 160 40
Proceeds from matured short-term
deposits 0 0 250
Restricted cash 0 0 -32
Investment in intangible and
financial assets -16 -41 -36
Payment for business
acquisitions, net of cash and
cash equivalents acquired 0 -170 0
Net cash used in investing activities -128 -581 -967
Cash flows from financing
activities:
Proceeds from issuance of
long-term debt 0 136 17
Repayment of long-term debt -44 -51 -52
Increase in short-term
facilities 0 0 40
Capital increase 0 0 2
Repurchase of common stock -83 -83 0
Dividends paid -81 -81 -269
Net cash used in financing activities -208 -79 -262
Effect of changes in exchange rates -4 23 4
Net cash increase (decrease) 76 281 -285
Cash and cash equivalents at
beginning of the period 2,060 1,855 1,659
Cash and cash equivalents at end
of the period 2,136 2,136 1,374
STMicroelectronics N.V.
Consolidated Statements of Income
(in million of U.S. dollars, except per share data ($))
Three Months Ended
(Unaudited) (Unaudited)
June 28, June 30,
2008 2007
Net sales 2,379 2,409
Other revenues 12 9
NET REVENUES 2,391 2,418
Cost of sales -1,511 -1,580
GROSS PROFIT 880 838
Selling, general and administrative -281 -270
Research and development -470 -446
Other income and expenses, net 30 12
Impairment, restructuring charges
and other related closure costs -185 -906
Total Operating Expenses -906 -1,610
OPERATING LOSS -26 -772
Other-than-temporary impairment
charge on financial assets -39 0
Interest income, net 19 18
Earnings (loss) on equity investments -5 3
LOSS BEFORE INCOME TAXES AND MINORITY
INTERESTS -51 -751
Income tax benefit (expense) 5 -4
LOSS BEFORE MINORITY INTERESTS -46 -755
Minority interests -1 -3
NET LOSS -47 -758
LOSS PER SHARE (BASIC) -0.05 -0.84
LOSS PER SHARE (DILUTED) -0.05 -0.84
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
DILUTED LOSS PER SHARE 900.5 898.8
STMicroelectronics N.V.
Consolidated Statements of Income
(in million of U.S. dollars, except per share data ($))
Six Months Ended
(Unaudited) (Unaudited)
June 28, June 30,
2008 2007
Net sales 4,841 4,678
Other revenues 28 15
NET REVENUES 4,869 4,693
Cost of sales -3,090 -3,070
GROSS PROFIT 1,779 1,623
Selling, general and administrative -585 -531
Research and development -978 -881
Other income and expenses, net 39 -3
Impairment, restructuring charges
and other related closure costs -369 -918
Total Operating Expenses -1,893 -2,333
OPERATING LOSS -114 -710
Other-than-temporary impairment charge -69 0
Interest income, net 40 36
Earnings (loss) on equity investments -5 9
LOSS BEFORE INCOME TAXES AND MINORITY
INTERESTS -148 -665
Income tax benefit (expense) 19 -15
LOSS BEFORE MINORITY INTERESTS -129 -680
Minority interests -2 -4
NET LOSS -131 -684
LOSS PER SHARE (BASIC) -0.15 -0.76
LOSS PER SHARE (DILUTED) -0.15 -0.76
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING
DILUTED LOSS PER SHARE 900.1 898.1
Web site: http://www.st.com//
