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Jan 26th, 2011
STMicroelectronics reports 2010 fourth quarter and full year financial results
Fourth quarter net revenues increased 6.6% sequentially; 39.9% gross margin - 2010 net income of $830 million on highest ever net revenues of $10.35 billion - Net financial position improved $732 million in 2010 to $1.15 billion* - Record year for the full range of ST’s “Sense and Power” portfolio, namely advanced analog and MEMS, as well as microcontrollers and automotive applications.
Fourth Quarter 2010
President and CEO Carlo Bozotti commented, “ST had a very strong finish to the year. Our fourth quarter revenues came in near the top end of our range, increasing 6.6% sequentially on broad-based strength in analog, MEMS, microcontrollers and automotive applications. Our gross margin further increased to 39.9%, up 70 basis points sequentially, coming in above the midpoint of our guidance.
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.
IMS (Industrial and Multisegment Product Sector) fourth quarter net revenues increased 30% year-over-year to a record $1,131 million. Revenue growth was strong in all segments and in distribution. Sequentially, IMS grew net revenues 12%, led by MEMS, microcontrollers, power and industrial products. IMS operating margin improved, both sequentially and year-on-year, to 22.5% from 19.7% and 9.8% in the prior and year-ago quarters, respectively.
Net revenues for the full year 2010 increased 21.6% to a record $10,346 million from $8,510 million in the prior year, thanks to a broad and deep product portfolio and significantly better industry conditions, with IMS and ACCI increasing 45% and 32%, respectively.
IMS revenue growth benefited from two structural changes which have been well underway. First, advanced analog and MEMS products are becoming an increasing proportion of the overall IMS portfolio. Second, IMS is benefiting from the success of its general-purpose and secure microcontroller families.
First Quarter 2011 Business Outlook
Mr. Bozotti stated, “As we enter 2011 key new products continuing to ramp will include gyroscopes, accelerometers, 32-bit microcontrollers, and automotive products among others. New products that will contribute to our growth in the coming quarters include SoCs for 3-D and connected TVs, MEMS microphones and pressure sensors and advanced analog products for medical and smart grid applications".
In order to support ST’s innovative product portfolio and to fuel revenue growth faster than the served market dynamic, particularly for MEMS, automotive and the U8500 smartphone platform, the Company expects to invest approximately $1.1 billion to $1.5 billion in 2011 based on revenue growth.
Selected information on STMicroelectronics investor relations announcement http://www.st.com/internet/com/press_release/c2646.jsp
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