ST Q2 revenues up 5.6% on Q1; expects 9% growth in Q3
- Auteur:Ella Cai
- Relâchez le:2017-07-26
ST had Q2 revenues of $1.92 billion; up 5.6% sequentially and up 12.9% year-over-year.
The Q2 gross margin was 38.3% and the operating margin before impairment and restructuring was 9.6%.
H1 net revenues were $3.74 billion, net income was $258 million and free cash flow was $113 million.
ST’s capital structure was strengthened in July with a $1.5 billion convertible bond financing,
For Q3, CEO Carlo Bozotti (pictured) said: “We expect third quarter revenues to increase about 9.0% on a sequential basis, representing year-over-year growth of about 16.6% at the mid-point of our guidance range. We anticipate another quarter of margin expansion with third quarter gross margin of about 39.0% at the mid-point.”
On the Q2 result, Bozotti stated: “It was another solid quarter, with revenue growth from all product groups and sales channels. In Internet of Things and smartphones, we continue to win with our complete portfolio of microcontrollers, sensors, analog and power management, connectivity and security solutions. In Smart Driving, we continue to capture opportunities both with products developed in our Automotive and Discrete Group, as well as from the rest of our organization which fit the needs of our automotive customers, such as sensors and general purpose analogue.”
ST’s net financial position was $524 million at July 1, 2017 compared to $518 million at April 1, 2017. ST’s total financial resources equaled $1.99 billion and total financial debt was $1.47 billion at July 1, 2017.
On a sequential basis, both Analog and MEMS Group (AMG) and Automotive and Discrete Group (ADG) performed better than the Company average, with AMG’s revenues up 8.9% and ADG’s revenues up 6.6%.
Microcontrollers and Digital ICs Group (MDG) revenues were up 3.3% sequentially led by general purpose microcontrollers which posted a record quarter sales level, offset in part by lower sales of Digital ICs including the businesses undergoing phase-out.
Imaging Product Division revenues decreased temporarily reflecting, as anticipated, the timing of new programs ramping.
By region of shipment, revenues on a sequential basis increased 8.6% in Asia Pacific and 4.1% in EMEA, while decreasing 3.7% in the Americas. On a year-over-year basis, Asia Pacific revenues were up 21.4%, EMEA revenues increased 7.5%, while decreasing 7.2% in the Americas.
Q2 R&D and SG&A expenses were $567 million, similar to $568 million and $565 million in the prior and year-ago quarter, respectively.
Q2 impairment and restructuring charges were $6 million compared to $5 million and $12 million in the prior and year-ago quarter, respectively, mainly related to the set-top box restructuring plan announced in January 2016.
The exiting of the STB business has achieved $132 million of the total $170 million of targeted annualized savings expected upon completion.
The Q2 gross margin was 38.3% and the operating margin before impairment and restructuring was 9.6%.
H1 net revenues were $3.74 billion, net income was $258 million and free cash flow was $113 million.
ST’s capital structure was strengthened in July with a $1.5 billion convertible bond financing,
For Q3, CEO Carlo Bozotti (pictured) said: “We expect third quarter revenues to increase about 9.0% on a sequential basis, representing year-over-year growth of about 16.6% at the mid-point of our guidance range. We anticipate another quarter of margin expansion with third quarter gross margin of about 39.0% at the mid-point.”
On the Q2 result, Bozotti stated: “It was another solid quarter, with revenue growth from all product groups and sales channels. In Internet of Things and smartphones, we continue to win with our complete portfolio of microcontrollers, sensors, analog and power management, connectivity and security solutions. In Smart Driving, we continue to capture opportunities both with products developed in our Automotive and Discrete Group, as well as from the rest of our organization which fit the needs of our automotive customers, such as sensors and general purpose analogue.”
ST’s net financial position was $524 million at July 1, 2017 compared to $518 million at April 1, 2017. ST’s total financial resources equaled $1.99 billion and total financial debt was $1.47 billion at July 1, 2017.
On a sequential basis, both Analog and MEMS Group (AMG) and Automotive and Discrete Group (ADG) performed better than the Company average, with AMG’s revenues up 8.9% and ADG’s revenues up 6.6%.
Microcontrollers and Digital ICs Group (MDG) revenues were up 3.3% sequentially led by general purpose microcontrollers which posted a record quarter sales level, offset in part by lower sales of Digital ICs including the businesses undergoing phase-out.
Imaging Product Division revenues decreased temporarily reflecting, as anticipated, the timing of new programs ramping.
By region of shipment, revenues on a sequential basis increased 8.6% in Asia Pacific and 4.1% in EMEA, while decreasing 3.7% in the Americas. On a year-over-year basis, Asia Pacific revenues were up 21.4%, EMEA revenues increased 7.5%, while decreasing 7.2% in the Americas.
Q2 R&D and SG&A expenses were $567 million, similar to $568 million and $565 million in the prior and year-ago quarter, respectively.
Q2 impairment and restructuring charges were $6 million compared to $5 million and $12 million in the prior and year-ago quarter, respectively, mainly related to the set-top box restructuring plan announced in January 2016.
The exiting of the STB business has achieved $132 million of the total $170 million of targeted annualized savings expected upon completion.
