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ST Logs Net Revenues of $2.23Bn, A YoY 22.2% Growth in Q1 of 2018

ST reveals that the first quarter net revenues totalled $2.23 billion, gross margin was 39.9%, and net income was $239 million or $0.26 diluted earnings per share

ST Logs

STMicroelectronics has reported its financial results for the first quarter(Q1) ended March 31, 2018.

ST reveals that the first quarter net revenues totalled $2.23 billion, gross margin was 39.9%, and net income was $239 million or $0.26 diluted earnings per share.

First quarter net revenues decreased 9.8% sequentially, 20 basis points better than the midpoint of the Company’s guidance. On a sequential basis, Microcontrollers and Digital ICs Group (MDG) revenues increased 1.3% and Automotive and Discrete Group (ADG) revenues decreased 0.5% reflecting better than seasonal performance for Smart Driving and Internet of Things applications. Analog, MEMS and Sensors Group (AMS) revenues decreased by 27.4% principally reflecting unfavorable seasonal dynamics for smartphone applications negatively impacting the Company’s Imaging business.

On a year-over-year basis, first quarter net revenues increased 22.2% with all product groups delivering double-digits revenue growth. Specifically, Microcontrollers and Digital ICs Group (MDG) revenues were up 26.6% largely driven by a strong expansion of microcontroller sales; Analog, MEMS and Sensors Group (AMS) revenues increased 26.5% on sharply higher Imaging sales, as well as growth in Analog and MEMS; and Automotive and Discrete Group (ADG) revenues were higher by 15.4% on double-digit growth for both Automotive and Power Discrete products.

By region of shipment, EMEA and the Americas grew revenues sequentially 8.4% and 1.8%, respectively, while Asia Pacific decreased 18.2%. On a year-over-year basis revenues in Asia Pacific, EMEA and the Americas increased 24.5%, 22.4% and 12.7%, respectively.

Citing on ST’s overall performance in this quarter, Carlo Bozotti, STMicroelectronics President and Chief Executive Officer, said, “We started 2018 with another quarter of double-digit, year-over-year sales growth across all product groups and regions.”

On a sequential basis, first quarter results were better than the mid-point of our sales and gross margin guidance. We delivered a better than seasonal performance in Automotive and Industrial, thanks to our application-focused approach on Smart Driving and Internet of Things, despite the anticipated unfavorable seasonal dynamics for smartphone applications, said Bozotti.

On a year-over-year basis, net revenues grew 22.2%, gross margin expanded by 220 basis points to 39.9% and operating margin increased by 480 basis points to 12.1%. Free cash flow, during a quarter of high capital spending to support our growth plans, increased by 53% to $95 million from the year-ago quarter and we exited the quarter with a solid net financial position of $522 million,” added Bozotti.

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