STMicroelectronics shares Q2 2018 financial results
Semiconductor company STMicroelectronics has reported its US GAAP financial results for the second quarter ended 30 June.
Second quarter net revenues and gross margin were above the mid-point of the company’s outlook. ST reported second quarter net revenues of $2.27 billion, gross margin of 40.2%, operating margin of 12.7% and net income of $261 million or $0.29 diluted earnings per share.
Net revenues increased 1.9% sequentially, 40 basis points better than the mid-point of the company’s guidance. On a year-over-year basis, second quarter net revenues increased 18.0% with all product groups delivering double-digit revenue growth. Year-over-year sales to OEMs and Distribution were up 9.8% and 33.4%, respectively.
Gross profit totalled $911 million, representing a year-over-year increase of 23.6%. Gross margin was 40.2%, 20 basis points better than the mid-point of the company’s guidance, and increasing 190 basis points year-over-year, largely driven by improved manufacturing efficiency and reflecting a favourable mix shift towards higher value products.
Operating income was $289 million, compared to $181 million in the year-ago quarter, with all product groups growing double-digit and delivering improved profitability. The company’s operating margin increased 330 basis points to 12.7% of net revenues, compared to 9.4% in the 2017 second quarter.
Net income and diluted earnings per share increased to $261 million and $0.29, respectively, compared to $151 million and $0.17, respectively, in the year-ago quarter. The company’s net financial position (non-US GAAP) was $411 million at 30 June compared to $522 million at 31 March and reflected total financial resources of $2.13 billion and total financial debt of $1.72 billion.
“ST had another quarter of double-digit, year-over-year revenue growth, with improved performance across key financial metrics,” said STMicroelectronics President and CEO Jean-Marc Chery. “We are on track with the goal set at our Capital Markets Day to grow year-over-year 2018 revenues between about 14% to 17%.
“Revenue increased 18% year-over-year on balanced growth across all product groups, regions and end markets, with an especially strong performance in Industrial.
“Operating income and net income were up sharply year over year, increasing respectively about 60% and 73%.”
The company expects third-quarter 2018 revenues to increase about 10% Q/Q (16.8% Y/Y) at the mid-point of the company’s guidance, driven by continued healthy demand in the Automotive and Industrial end markets and, as anticipated, by growth in smartphone applications.
Professor Michael Milford's research looks at how the brain handles navigation and perception...
A self-driving robot, developed by Ford engineers, has been put to work delivering spare parts...
Test and measurement company Keysight Technologies has opened a new site in Mulgrave, Victoria,...