STMicroelectronics Reports 2019 Second Quarter Financial Results

• In the second quarter, STMicroelectronics returned to sequential revenue growth
• For the full year 2019, STMicro now expects net revenues to be in the range of about $9.35 to $9.65 billion
• The company confirmed its investment plan of $1.1 to $1.2 billion

STMicroelectronics reported U.S. GAAP financial results for the second quarter ended June 29, 2019.

ST reported second-quarter net revenues of $2.17 billion, gross margin of 38.2 per cent, operating margin of 9.0 per cent, and net income of $160 million or $0.18 diluted earnings per share.

The CEO speaks
Jean-Marc Chery, president and CEO of STMicroelectronics, commented:

• “As planned, in the second quarter we returned to sequential revenue growth. In fact, revenues increased 4.7 per cent, above the mid-point of our guidance of 2.4 per cent, 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. We delivered an operating margin of 9.0 per cent.
• “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 investments.
• “Looking at the third quarter, we expect strong sequential revenue growth of about 15.3 per cent at the mid-point. This growth will be driven by engaging customer programs and new products in a softer than expected legacy automotive and industrial market. Gross margin is expected to be about 37.5 per cent at the mid-point, including about 140 basis points of unsaturation charges.
• “For the full year 2019, we now expect net revenues to be in the range of about $9.35 to $9.65 billion. We confirm our investment plan of $1.1 to $1.2 billion.”