ST-Ericsson Reports Third Quarter 2012 Financial Results
(firmenpresse) - STOCKHOLM, SWEDEN -- (Marketwire) -- 10/23/12 --
* Net sales $359 million
* Adjusted operating loss(1)) $148 million, reduced by half in two
quarters
* Sequential improvements on all operating profit and loss metrics
GENEVA ST-Ericsson, a joint venture of
STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), reported
financial
results for the third fiscal quarter ending September 29, 2012.
Sales in the third quarter increased 4 percent over the prior quarter
reflecting
the continued ramp of NovaThor™ platform shipments as well as $35
million
revenues from IP licensing.
Adjusted operating loss decreased sequentially by $87 million to $148
million,
as the result of volume and margin improvements and of the actions to
reduce
operating expenses.
Didier Lamouche, President and CEO of ST-Ericsson said: "In the third
quarter,
we made further improvements on all the key metrics, thanks to our steady
and
timely progress in executing the new strategic direction we set in April.
The
ramp of our NovaThor integrated ModAp platforms continued with customers
such as
Samsung, Sony Mobile Communications and new and existing Asian customers,
with
new smartphones being brought to the market. Although our losses remain
large,
we have succeeded in halving them in two quarters thanks to our progress in
cost
reduction and productivity improvements. As we enter the fourth quarter and
we
still have to face the further decline of the legacy portion of our
business, we
are encouraged by new design wins on leading phones, like the recently
announced
Samsung Galaxy S III mini, which is the twentieth device powered by our
NovaThor
platform and brought to the market in about one year."
*: No impairment test on Goodwill and Intangible Assets has been run in the
interim period. Consequently the Income Statement and certain of its
metrics,
like Operating Income/(Loss) and Net Income/(Loss) are non-GAAP measures
Additional financial information
The net financial position(2) )at the end of the third quarter was
negative
$1351 million.
Inventory increased by $9 million reaching $180 million at the end of the
third
quarter.
Net operating cash flow was negative for $146 million at the end of the
third
quarter, representing a $103 million sequential improvement.
Outlook
ST-Ericsson expects net sales to be approximately flat sequentially
for the
fourth quarter 2012.
Highlights - products, technology and wins announced in the third quarter
2012
Customers
* Lenovo LePhone S899t smartphone -- designed for China Mobile -- is
powered by
the
ST-Ericsson Nova™ A9500 application processor. This is the first
smartphone from Lenovo which is built on ST-Ericsson dual-core
high-performance application processor. In addition to the Nova A9500,
ST-Ericsson CG2900 and CW1100 connectivity solutions were also selected by
Lenovo enabling GPS, Bluetooth, FM and Wi-Fi features.
* ANT Wireless, a division of Dynastream Innovations Inc., announced the
newest addition to its ANT family of silicon solutions: the ST-Ericsson
CG2905 GNSS/Bluetooth/FM single chip device which embeds support of
ANT.
* ST-Ericsson continues to expand cooperation with Chinese manufacturers
on
NovaThor U8500 and its upgraded version the NovaThor U8520.
Products
* During the quarter both the NovaThor L8540 LTE ModAp platform and the
FD-SOI
(Fully Depleted Silicon On Insulator) variant of this product were
taped out
and sample wafer fabrication started. Samples of both products are
expected
to be available during Q4.
Recent corporate developments
* The company has announced the appointment of Peter Oaklander as senior
vice-president for Sales & Marketing, reporting to president and CEO Didier
Lamouche.
Oaklander joins ST-Ericsson from Intersil, where he held positions as
senior
vice president for global sales and of head of the power management
business; prior to that, he spent two decades in key sales and product
positions with Analog Devices, focusing primarily on Asian and US
markets.
This appointment follows from a mutual decision between the company and
Pascal Langlois, ST-Ericsson's current head of sales, who will leave
the
company during the fourth quarter.
Didier Lamouche commented: "We are re-aligning our sales efforts to
take
into account the changed customer dynamics and our stronger focus going
forward on Asia and the US, with Europe remaining an important region
for
our business. With his extensive experience on those markets and the
semiconductor industry, I am fully confident that Peter will bring a
strong
contribution to our objective to continue to enlarge our customer base
and
grow our business. Personally and also on behalf of the whole senior
management team, I want to thank Pascal Langlois for his contribution
since
the inception of our company, where he has been instrumental in
building the
sales team and broadening our customer base."
*: No impairment test on Goodwill and Intangible Assets has been run in the
interim period. Consequently the Income Statement and certain of its
metrics,
like Operating Income/(Loss) and Net Income/(Loss) are non-GAAP measures
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.
Notes to editors
ST-Ericsson invites journalists, analysts and investors to a conference
call
scheduled on October 24, 2012 at 5:00 pm (CET). Call-in numbers, a live
webcast
of the conference call, as well as supporting slides, will be available at
.
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.
Third 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#1651763]
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Relations
Claudia Levo, Geneva, Switzerland
Investor & Analyst Relations
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Phone: +41 22 929 6973
Email:
Nelly Dimey
Phone: +33 1 58 07 77 85
Email:
Ericsson Investor Relations
Asa Konnbjer, Stockholm, Sweden
Phone: +46 10 713 3928
E-mail:
Phone: +41 22 929 5812
STMicroelectronics Investor Relations
Tait Sorensen, Phoenix AZ, US
Phone: +1 602 485 2064
Celine Berthier, Geneva, Switzerland
Email:
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Datum: 23.10.2012 - 14:57 Uhr
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