STMicroelectronics Reports 2010 Fourth Quarter and Full Year Financial Results

PARIS — STMicroelectronics (NYSE: STM) reported financial results for the fourth quarter and full year ended December 31, 2010.

Fourth Quarter Review

ST’s net revenues for the fourth quarter of 2010 totaled $2,833 million and included sales recorded by ST-Ericsson as consolidated by ST.

Fourth quarter net revenues increased on a year-over-year basis by 30% in Industrial and Multisegment Sector (IMS), and 15% in Automotive/Consumer/Computer/Communication Infrastructure Sector (ACCI), while Wireless, reflecting the ongoing portfolio transition at ST-Ericsson, decreased by 21%. Overall fourth quarter net revenues increased by 9.7% on a year-over-year basis, geographically led by Greater China-South Asia with sales growth of 15% and the Americas with a 14% increase.

On a year-over-year basis, all market segments, except Telecom, posted growth, with Automotive up by 27%, Industrial & Other by 18%, Consumer by 14%, and Computer by 7%. Telecom declined by 7%. Distribution increased 25%.

Sequentially, revenues grew in all regions, led by Japan-Korea, Greater China-South Asia and Americas with 10%, 8% and 7% growth, respectively.

All market segments increased on a sequential basis, except Consumer, with Automotive higher by 16%, Industrial & Other by 13%, Computer by 10%, and Telecom by 7%. Consumer decreased by 6% on weakening demand. Distribution increased sequentially by 4%.

Q4 2010 Products, Technology and Design Wins – Consumer

Set-top boxes (STBs)

• Strengthened leadership position with shipment of 10 million units of the second-generation STi7105 and STi7105-derivative STB decoders.
• Ramped-up new second-generation System-on-Chip (SoC) decoder ICs, including: the STi7162 for high definition and the STi5262 for standard definition, targeting free-to-air, cable and terrestrial STBs, as well as hybrid products with added support for IPTV; and the STi7197 for the US cable market.
• Significant new deployments of second-generation STB decoders achieved in Europe, Asia, China, Middle East, India and South America, with more than 50 customers in production.
• Enabled next-generation hybrid broadcast/broadband convergence STB designs with 10 major designs for third-generation STi7108-based STBs.

Integrated Digital TV (iDTV)

• Two new design-ins for Freeman 100Hz single-chip 3DTV platforms for European and emerging markets.
• World’s first demonstration to key customers of the Freeman Premier single-chip TV SoC driving a 120Hz 3D TV, plus motion-judder, reduction on a line-interleaved TV using ‘passive’ glasses.
• Announced and demonstrated support of Adobe Flash Access 2.0 along with Adobe AIR for both STBs and TV on a Freeman SoC platform as part of the program for delivering rich media content and applications to the TV.

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