STMicroelectronics Reports 2009 Second Quarter and First Half Financial ResultsTuesday, July 28th, 2009
GENEVA — STMicroelectronics (NYSE: STM) reported financial results for the 2009 second quarter and first half ended June 27, 2009.
Second Quarter Review
ST’s net revenues for the second quarter of 2009 total $1,993 million and include the complete integration of the former Ericsson Mobile Platforms business into ST-Ericsson and $18 million from the licensing of technology. Net revenues increased 20% sequentially reflecting an increase in demand across ST’s served market segments, as well as in all regions, with particular strength in China and Asia Pacific. Net revenues declined in comparison to the year-ago quarter in all market segments apart from Telecom, and in all regions except Asia Pacific, due to business conditions.
On a sequential basis, all market segments posted growth with Computer increasing by 36%, Automotive by 19%, Telecom by 14%, Industrial by 7% and Consumer by 1%. Distribution registered the strongest sequential improvement by 44% reflecting the better alignment of inventory to current demand levels and improving market conditions. In comparison to the year-ago quarter, performance was led by the 17% growth of Telecom driven by the NXP Wireless and ST-Ericsson wireless transactions. All other market segments decreased in the year-ago period with Computer down by 13%, Consumer by 33%, Industrial by 37%, and Automotive by 38%. Distribution decreased 36% reflecting a destocking of the channel and weak industry conditions.
Q2 2009 Products, Technology and Design Wins – Consumer
- In set-top-boxes (STBs), ST gained design wins in multiple markets, most significantly for two new deployments for IPTV platforms in Europe. For cable, ST gained a major high-definition PVR (Personal Video Recorder) design win from a major European cable operator. Also, ST’s latest single-chip cable-STB decoder is now in volume manufacturing for several operators in China. For satellite, ST gained multiple design wins and production starts for standard- and high-definition STB deployment in regions such as Mexico, the Middle East and the Caribbean.
- In digital TV applications, ST increased its penetration in flat-panel TVs with major design wins for a video-display processor from tier-one OEMs. And in monitors, ST’s highly-integrated premium monitor scaler gained two design wins from leading OEMs. Additionally, ST’s DisplayPort-to-VGA Converter product, which enables seamless connectivity between legacy VGA monitors and projectors with DisplayPort-based PCs and notebooks, gained design wins with three tier-one OEMs. Volume ramp-up is expected in Q3 09 for all these TV and monitor design wins.
More: Earnings Release