STMicroelectronics Reports 2012 First Quarter Financial Results

GENEVA — STMicroelectronics (NYSE: STM) reported financial results for the first quarter ended March 31, 2012.

ST’s first quarter net revenues decreased 8.0% on a sequential basis with ST’s wholly-owned businesses posting a sequential decrease of 3%, better than historical seasonality, while the Wireless product segment was lower by 29%. EMEA led all regions with 8.9% sequential growth while the Americas decreased by 4.5%, Japan & Korea down by 8.8% and Greater China & South Asia down by 16.7%.

Commencing January 1, 2012, the Company began reporting the former ACCI Product Segment (Automotive/Consumer/Computer/Communication Infrastructure) into the other segments. The new product segments are Automotive Segment (“APG”) and Digital Sector (“Digital”) comprised of the Digital Convergence Group (“DCG”) and Imaging, BiCMOS ASIC and Silicon Photonics Group (“IBP”).

Digital first quarter net revenues decreased 13.2% sequentially principally due to a significant decrease in imaging revenues related to certain wireless customers and to a lesser extent seasonality. Digital operating margin was negative 11.2% in the 2012 first quarter, compared to positive 2.4% in the prior quarter.

Q1 2012 – Product and Technology Highlights – Digital Convergence

• Earned seven major design wins in China, Europe and the US for the new 40nm-IC mainstream STB family.
• Continued strong momentum in India cable and satellite markets leading to a doubling of sales volume by earning multiple design wins.
• Collected several design wins in Europe and Asia for the ARM Cortex A9-based, “Orly” high-performance Home Application processor manufactured in 32nm process technology.
• Earned design-in of Freeman family of products with a Tier1 OEM customer serving the European market.
• Won multiple design-ins at Tier1 OEMs with the “Athena” multimedia monitor system-on-a-chip family into a diverse range of products, including high-performance monitors, TVs, and digital signage.