STMicroelectronics reported its financial results for the second quarter ended June 29, 2019.
ST said that, as planned, in the Q2, the company returned to its sequential revenue growth. The revenues increased 4.7%, above the mid-point of ST’s guidance of 2.4%, driven by specialized imaging sensors, RF products for front end modules, silicon carbide MOSFETs and digital automotive, partially offset by general-purpose analog, microcontrollers, and legacy automotive products. The company delivered an operating margin of 9.0%.
“During the first half of 2019 we delivered sales and profitability results in line with our quarterly guidance and we continued to advance our strategic investment,” read the company statement
Jean-Marc Chery, STMicroelectronics President & CEO, commented, “Looking at the third quarter, we expect strong sequential revenue growth of about 15.3% at the mid-point. This growth will be driven by engaged customer programs and new products in a softer than expected legacy automotive and industrial market. Gross margin is expected to be about 37.5% at the mid-point, including about 140 basis points of unsaturation charges.
STMicroelectronics expects the net revenues to be in the range of about $9.35 to $9.65 billion for the full year 2019.
In addition, the semiconductor company has also confirmed an investment plan worth $1.1 to $1.2 billion.
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