ST-Ericsson Reports First Quarter 2012 Financial Results
(firmenpresse) - GENEVA -- (Marketwire) -- 04/23/12 --
* Net sales $290 million
* NovaThor U8500 ModAp hitting the market in devices from leading
customers
* New strategic direction and partnership announced today
ST-Ericsson, a joint venture of
STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), reported
financial
results for the first fiscal quarter ending March 31, 2012.
Sales in the first quarter, excluding the contribution of IP licensing
to a
third party in the prior quarter, decreased sequentially 27% as
anticipated. The
operating loss was higher than the previous quarter due to the lower
revenues.
Didier Lamouche, President and CEO of ST-Ericsson said: "This was a
two-fold
quarter: on one hand, our sales decreased substantially, as we had
anticipated,
due to a drop in sales of new products at one of our largest
customers, in
addition to the usual seasonal effect and to the continued decline of our
legacy
products.
On the other hand, it was a quarter that marked a milestone,
since our
NovaThor™ U8500 ModAp systems to Samsung and Sony Mobile
Communications
started successfully to ramp, with smartphones from both customers now
hitting
the market. In January I said that our focus would be to effectively
execute on
our strategic programs, deliver in volume our leading products
and to
proliferate design wins. This is now starting to happen and, moving
forward, we
will continue to focus on the execution of the four main pillars
of our
strategic plan that we announced earlier today."
2012 first quarter financial summary (unaudited)
Additional financial information
The net financial positionat the end of the first quarter was negative $956
million. Despite the reported loss, net operating cash flow after capital
expenditure has sequentially improved thanks to the inventory reduction and
working capital management.
Inventory decreased by $14 million reaching $209 million at the end of the
first
quarter.
Outlook
For the second quarter 2012, ST-Ericsson expects net sales to increase
sequentially in a low double-digit range.
Highlights - products, technology and wins announced in first quarter 2012
* Products
* Announced at Mobile World Congress, the NovaThor™ L8540 is an
LTE/HSPA+/TD-HSPA-enabled integrated smartphone platform with the
powerful application processor and modem integrated on a single
die, and
is scheduled to sample to customers in the second half 2012.
* Unveiled the CG2905, the industry's first connectivity platform
solution
with simultaneous support for GPS and GLONASS technology, Bluetooth
and
FM Radio all integrated on a single 40nm device.
* Introduced first fully integrated wireless charger for mobile
phones
with the PM2020.
* Customers
* Samsung is now a customer of the ST-Ericsson NovaThor™ platform.
The
new Samsung GALAXY S Advance Android-powered smartphone uses the
ST-Ericsson NovaThor™ U8500 System.
* Xperia™ P, Xperia™ U, and Xperia™ sola are the first three
smartphones by Sony Mobile Communications to use the NovaThor U8500
ModAp system, combining application processing, modem and
connectivity.
* Thor™ M5780 HSPA+ modem powers the next-generation Panasonic
Eluga
smartphone.
* Ontim WP8500 tablet to be the first commercially available
Android-based tablet using the NovaThor U8500 System.
* Partners/technology
* Selected fully depleted silicon on insulator (FD-SOI) technology
for use
in future mobile platforms, leveraging ST technology based on
Soitec
SOI, which will enable enhanced performance from the
ST-Ericsson
NovaThor™ platform at much lower battery usage - as much as 35
percent lower power consumption at maximum performance.
* Continued cooperation with metaio, reaching another milestone in
supporting metaio's new 3D object tracking technology.
* Joined the W3C Core Mobile Web Platform Community Group kicked off
by
Facebook.
* SRS Labs made their TruMedia audio processing technology available
on
the ST-Ericsson Snowball development platform.
Footnotes
[1] The adjusted operating income/(loss) is defined as the operating
income/(loss) reported before amortization of acquisition-related
intangibles
and restructuring charges and is used by management to help enhance the
understanding of ongoing operations and to communicate the impact of the
items
on the operating loss as reported.
[2] Net financial position represents the balance between financial assets,
which comprise cash, cash equivalents and short-term deposits, and
financial
debt which includes bank overdrafts and parent companies short-term bridge
credit facilities
[3] Net operating cash flow is defined as net cash from operating
activities,
less capital expenditure and less restructuring charges.
About ST-Ericsson
ST-Ericsson is a world leader in developing and delivering a complete
portfolio
of innovative mobile platforms and cutting-edge wireless semiconductor
solutions
across the broad spectrum of mobile technologies. The company is a leading
supplier to the top handset manufacturers and generated sales of $1.7
billion in
2011. ST-Ericsson was established as a 50/50 joint venture by
STMicroelectronics
(NYSE: STM) and Ericsson (NASDAQ: ERIC) in February 2009, with headquarters
in
Geneva, Switzerland.
The ST-Ericsson results reported in this press release do not reflect in
their
entirety the results of the Wireless Segment of STMicroelectronics, which
include other activities that are not part of ST-Ericsson.
This press release contains forward-looking statements that involve
inherent
risks and uncertainties. We have identified certain important factors that
may
cause actual results to differ materially from those contained in such
forward-looking statements. For a detailed description of risk factors see
STMicroelectronics' (NYSE: STM) and Ericsson's (NASDAQ: ERIC) filings with
the US
Securities and Exchange Commission, particularly each company's latest
published
Annual Report on Form 20-F.
First Quarter 2012 financial results:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
[HUG#1605215]
FOR FURTHER INFORMATION, PLEASE CONTACT:
Global Communications & Media
Relations
Claudia Levo, Geneva, Switzerland
Pamela McCracken, Santa Clara, U.S.A.
Phone: +1 408 398 8565
Email:
Ericsson Investor Relations
Asa Konnbjer, Stockholm, Sweden
Phone: +46 10 713 3928
E-mail:
Investor & Analyst Relations
Fabrizio Rossini, Geneva, Switzerland
Phone: +41 22 929 6973
Email:
STMicroelectronics Investor Relations
Tait Sorensen, Phoenix AZ, US
Phone: +1 602 485 2064
Celine Berthier, Geneva, Switzerland
Phone: +41 22 929 5812
Email:
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Datum: 23.04.2012 - 16:10 Uhr
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