STMicroelectronics has reported U.S. GAAP financial results for the first quarter ended March 30, 2019. The release also contains non-U.S. GAAP measures. ST reported first-quarter net revenues of $2.08 billion, gross margin of 39.4%, operating margin of 10.2%, and net income of $178 million or $0.20 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO, commented, “In the first quarter of 2019, revenues and gross margin performed as anticipated, amid softened market dynamics. We maintained a solid level of profitability, with operating margin above 10% and net income of $178 million. Looking at the second quarter, we plan to return to sequential revenue growth. Our second quarter outlook, at the mid-point, is for net revenues to increase about 2.4%; gross margin is expected to be about 38.5%.
The company also said that for the full year 2019, ST expects net revenues to be in the range of about $9.45 to $9.85 billion, therefore, planning for a strong sequential growth in the second half of the year compared with the first half, across the Industrial, Automotive and Personal Electronics end markets. ST’s revenue expectation is taking into account engaged customer programs, new product introductions, and assumes improving market conditions.
“We are moderating our investment plans, with our 2019 CAPEX plan now $1.1 – $1.2 billion, from $1.2 – $1.3 billion initially. Our objectives in 2019 are to outperform our served market and to deliver sustainable profitability,” added CEO Chery
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