STMicroelectronics Reports 2009 First Quarter Financial Results

GENEVA — STMicroelectronics (NYSE: STM) reported financial results for the 2009 first quarter ended March 28, 2009.

ST’s 2009 first quarter net revenues of $1,660 million included $1,615 million from ST and $45 million from Ericsson Mobile Platforms (EMP), reflecting two months of operations of ST-Ericsson. Net revenues decreased 33.0% year-over-year driven by significant weakness across most geographies and market segments.

All market segments posted year-over-year declines reflecting the global economic slowdown. In comparison to the year-ago quarter, Automotive in the first quarter of 2009 declined 47%, Computer by 42%, Industrial by 41%, Consumer by 34% and Telecom by 9%. On a sequential basis, Industrial in the first quarter of 2009 decreased by 33%, Computer by 31%, Consumer by 29%, Automotive by 27% and Telecom by 11%. First quarter 2009 Distribution decreased sequentially by 52% and by 56% year-over-year and in both periods of comparison reflects weak industry conditions and reduction in inventory.

ACCI’s (Automotive/Consumer/Computer/Telecom Infrastructure Product Groups) net revenues declined 40% year-over-year to $627 million. On a sequential basis, ACCI’s net revenues decreased 30.2%. ACCI’s operating results posted a loss of $35 million, compared to income of $17 million in the year-ago period due to lower sales volume and prices, offset in part by mix improvements.

In the first quarter of 2009, ST registered a non-cash loss on equity investments of $232 million primarily related to Numonyx including $200 million of impairment on Numonyx equity investment to reflect further deteriorated conditions in the memory industry as well as ST’s $29 million share of equity loss on Numonyx’s Q4 2008 results. As of March 28, 2009, Numonyx held approximately $440 million in cash on its balance sheet.

For the 2009 first quarter ST reported a net loss of $541 million, or -$0.62 per share, compared to a net loss of $366 million and $84 million in the prior quarter and year-ago period, respectively. On an adjusted basis, ST reported a net loss excluding impairment, restructuring and OTTI charges of $267 million, or -$0.31 per share.

Q1 2009 Products, Technology and Design Wins

• In consumer applications, ST introduced two single-chip set-top-box (STB) ICs, the STi5197 for cable STBs and STi5189 for satellite STBs. The chips enable efficient development and fast time-to-market for products such as basic zappers, interactive and Digital Video Recorder (DVR) capable STBs, and hybrid STBs. ST also announced its energy-saving STB architecture, which has already been implemented in several of the company’s leading-edge STB decoders.
• Additionally, ST also received two important product certifications: the STV0498 STB IC has been certified by CableLabs Europe, allowing deployment in interactive STBs for cable TV networks; and ST gained an industry first with certification for the latest revision of the DisplayPort Compliance standard for two products, including the recently announced STDP3100 DisplayPort-to-VGA converter.