STMicroelectronics Reports 2011 Fourth Quarter and Full Year Financial Results

(a) Net revenues include sales recorded by ST-Ericsson as consolidated by ST

Fourth Quarter Review

ST's fourth quarter net revenues decreased 10.3% on a sequential basis, within our guidance, with all regions down sequentially. The Americas decreased 4.6%, Japan & Korea and Greater China & South Asia each were down about 7.5% and EMEA decreased 20.7%. On a year-over-year basis, ST's net revenues decreased 22.6%, with Analog, MEMS and Microcontrollers (AMM) and Automotive, Computer, Consumer and Communications Infrastructure (ACCI), led by Automotive, performing better than the other segments, in particular Wireless.

As expected, gross margin decreased 240 basis points compared to the prior quarter, principally due to lower volumes that were associated with the reduction in inventory that resulted in the underloading of ST's wafer fabs. On a year-over-year basis, gross margin declined by 650 basis points also mainly due to lower volumes, and related charges for unused capacity.

Combined SG&A and R&D expenses of $894 million in the fourth quarter were substantially flat compared to the prior quarter. On a year-over-year basis, combined expenses decreased $20 million reflecting the restructuring at ST-Ericsson, among other factors. Combined operating expenses, as a percentage of sales, were 40.8% in the 2011 fourth quarter compared to 36.8% and 32.3% in the prior and year-ago quarters, respectively.

Due to market conditions driving lower volumes and the resulting unsaturation, operating margin before restructuring attributable to ST was about break-even in the 2011 fourth quarter compared to 4.3% and 12.4% in the prior and year-ago quarters.*

Income tax in the fourth quarter includes a $92 million charge for a valuation allowance related to ST-Ericsson's accumulated Net Operating Losses. As this allowance does not relate to ST's investment in ST-Ericsson, minority interests increases by the same amount of $92 million, with no impact to ST's consolidated income. Absent this allowance, the ST tax rate for the fourth quarter would be 15%.

Fourth quarter net loss was $11 million or $(0.01) per share, compared to net income of $0.08 and $0.24 per diluted share in the prior and year-ago quarters, respectively. On an adjusted basis, net of related taxes, ST reported non-U.S. GAAP net loss per share of $(0.01) in the fourth quarter, compared to net income of $0.09 and $0.27 per diluted share in the prior and year-ago quarters, respectively.*

For the 2011 fourth quarter, the effective average exchange rate for the Company was approximately $1.36 to euro 1.00 compared to $1.40 to euro 1.00 for the 2011 third quarter and $1.34 to euro 1.00 for the 2010 fourth quarter.


 (*)Operating income before restructuring, operating margin before restructuring, operating margin before restructuring attributable to ST and adjusted net earnings per share are non-U.S. GAAP measures. Please refer to attachment A for additional information explaining why the Company believes these measures are important and for reconciliation to U.S. GAAP.

Net Revenues by Market Segment

Net Revenues By Market Segment / Channel (*)

(In %)

Q4 2011


Q3 2011


Q4 2010


 Market Segment / Channel:
















   Industrial & Other








 Total OEM








« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15  Next Page »

Review Article Be the first to review this article
SolidCAM - See for yourself

Featured Video
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
Mechanical Engineer for Deeter Foundry at Lincoln, Nebraska
Service Software Expert-CATIA & CAA for Dassault Systemes at Shanghai, China
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
Engineer IV for State of Nebraska at Lincoln, California
Senior Software Developer (Revit API) for Microdesk at Boston, Massachusetts
Upcoming Events
RAPID + TCT at McCormick Place Chicago IL - Sep 13 - 15, 2021
WESTEC Online at Online CA - Sep 21 - 23, 2021
3D Collaboration & Interoperability Congress at Golden CO - Feb 21 - 24, 2022
Kenesto: 30 day trial

© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise