STMicroelectronics reports $1.61bn net revenues for Q1 2016

Semiconductor company STMicroelectronics has reported its financial results for the quarter ended 2 April 2016. Net revenues totalled $1.61 billion, gross margin was 33.4% and net loss was $0.05 per share.

On a year-over-year basis, first-quarter net revenues decreased by 5.4%, or 3.3% excluding negative currency effects and products undergoing a phase out, including mobile legacy products, camera modules and set-top boxes. However, certain product families saw an increase in revenues — automotive and microcontroller revenues, excluding negative currency effects, both increased by over 4%.

Automotive and Discrete Group (ADG) revenues, representing the largest product group of ST, increased by 5.4% on a sequential basis driven by strong demand, especially in Europe, in automotive products partially offset by difficult market conditions and seasonality related to discrete products. Analog and MEMS Group (AMG) revenues were flat on a sequential basis, while the Microcontrollers and Digital ICs Group (MDG) decreased by 13.4%.

ST President and CEO Carlo Bozotti said the results were “in line with expectations and better than normal seasonality” and that the company is “focused on returning to year-over-year growth”.

“We already started, in the first quarter, with two important product areas, representing about 50% of ST revenues in 2015: automotive, driven by our pervasiveness in all domains; and microcontrollers, driven by the STM32 family. Both businesses are at the heart of our strategy, focused on smart driving and on Internet of Things for industrial, home, city and consumer applications.”

The company expects second-quarter 2016 revenues to increase by about 5.5% on a sequential basis, plus or minus 3.5 percentage points.