STMicroelectronics Reports 2006 Fourth Quarter and Full Year Revenues and Earnings

GENEVA — STMicroelectronics (NYSE: STM) reported financial results for the fourth quarter and full year ended December 31, 2006.

Revenues and Gross Profit

Net revenues for the fourth quarter were $2,483 million, representing an increase of 3.9% over the $2,389 million reported in last year’s fourth quarter. Year-over-year growth was driven by double-digit increases in the industrial and consumer market segments. Sequentially, net revenues decreased 1.2% from the $2,513 million reported in the prior quarter, largely reflecting lower wireless sales.

Products, Technology and Design Wins – Application-Specific Product Highlights – Consumer

• In digital consumer, ST delivered the first samples of its new flagship 65nm single-chip dual HDTV decoder, the STi7200, which is aimed at the entire digital video market from dual-TV set-top boxes (STBs) to combined Blu-ray and HD-DVD products and integrated digital TVs. Design-ins for the STi7200 are already underway in Japan and the US. ST also gained several design wins for a new cost-optimized chipset in digital STBs across all regions.
• Also in consumer, ST consolidated its leading position in shipments of single-chip MPEG-4 decoders, which included one million STi710x-based MPEG-4 STBs shipped by Sagem. ST also consolidated its leading position in the China digital cable market with record shipments of its QAMi516 front-end decoder, which has become a de-facto standard in the fast growing market, and deployed its STi5100-based DVR solution in volume for the new Freeview-Playback platform, which is widely accepted in the UK’s terrestrial STB retail market. ST continued to lead the MHP (Multimedia Home Platform) market in Europe with volume deployment of STi5517-based interactive terrestrial STBs in Austria.