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Tuesday 26 April, 2011

ST-Ericsson

ST-Ericsson reports first quarter 2011 financia...






  * Net sales $444 million
  * Adjusted operating loss[1] $149 million
  * New high-speed modem sales nearly doubled sequentially



Geneva,   Switzerland,   April   26, 2011 -  ST-Ericsson,  a  joint  venture  of
STMicroelectronics  (NYSE:STM)  and  Ericsson  (NASDAQ:ERIC), reported financial
results for the first fiscal quarter ending April 2, 2011.

"Revenue in the first quarter reflected normal seasonal trends but declined more
than  anticipated on a  sequential basis due  to a steeper  drop in sales of our
legacy products, which is not yet offset by sales of new products. Primarily due
to  these lower sales, our adjusted  operating loss increased sequentially, said
Gilles Delfassy, ST-Ericsson president and CEO.

"However,  revenue from new products  as a percentage of  the total revenue grew
again  this quarter driven, for example, by sales of our high-speed Thor(TM) 21
megabits per second (Mbps) thin modems, which nearly doubled sequentially. We've
also  made further inroads with customers on our NovaThor(TM) family of products
including the U8500 platform, which is on track.

"In  the midst of these  financial results, our main  focus remains on improving
efficiency  and  securing  the  successful  execution  and  delivery  of our new
products  to customers, which will  drive the long term  success of the company.
And  I am  pleased to  say that  seven of  the top  nine device manufacturers by
revenue are actively engaged with us here.

"We  continue to believe in the direction we've  set - to be a formidable leader
in  the smartphone and tablet markets. The traction we have with customers helps
confirm  these beliefs. We  aim to serve  these customers well  and complete the
transition to our new product portfolio as quickly as possible."

2011 First quarter financial summary (unaudited)

 $ million                                        |Q1 2011|Q4 2010|Q1 2010
--------------------------------------------------+-------+-------+-------
 Income Statement                                 |       |       |
--------------------------------------------------+-------+-------+-------
 NET SALES                                        |    444|    577|    606
--------------------------------------------------+-------+-------+-------
 OPERATING INCOME/(LOSS) ADJUSTED[1] for:         |  (149)|  (119)|  (114)
--------------------------------------------------+-------+-------+-------
 - amortization of acquisition-related intangibles|   (25)|   (28)|   (24)
--------------------------------------------------+-------+-------+-------
 - restructuring charges                          |    (4)|   (24)|   (27)
--------------------------------------------------+-------+-------+-------
 OPERATING INCOME / (LOSS) as reported            |  (178)|  (171)|  (164)
--------------------------------------------------+-------+-------+-------
 NET INCOME / (LOSS)                              |  (178)|  (177)|  (154)
--------------------------------------------------+-------+-------+-------

  $ million                                    | Q1 2011 | Q4 2010 | Q1 2010
-----------------------------------------------+---------+---------+---------
  Net Financial Position                       |         |         |
-----------------------------------------------+---------+---------+---------
  Cash, cash equivalents & short-term deposits |      39 |      68 |     120
-----------------------------------------------+---------+---------+---------
  Parents' short-term credit facilities        |   (234) |   (150) |       0
-----------------------------------------------+---------+---------+---------
  Net Financial Position[2]                    |   (195) |    (82) |     120
-----------------------------------------------+---------+---------+---------

Additional financial information
The net financial position[2] at the end of the first quarter was negative $195
million. The sequential decrease was mainly due to the operating loss. During
the first quarter the company sold trade receivables without recourse, of which
$148 million were outstanding at the end of the quarter, representing a
sequential decrease of $18 million.

Inventory  increased by  $46 million,  reaching $321  million at  the end of the
first quarter, mainly due to the lower than expected sales during the quarter.

Outlook
For   the   second  quarter  2011, ST-Ericsson  expects  net  sales  to  decline
sequentially,  primarily  due  to  the  ongoing  decline in legacy products. The
impact of the Japan earthquake has been manageable to date; however, the company
will continue to monitor the supply chain situation.

Highlights - products, technology and wins announced in first quarter 2011

  * Products

                * Launched the NovaThor(TM) family, combining the most advanced
                  application processors (Nova(TM)) with the latest generation
                  of modems (Thor(TM))
                * Launched the Igloo open source community and Snowball, the
                  most comprehensive developer board, to accelerate system and
                  software innovations on ST-Ericsson's Nova(TM) application
                  processor

  * Customers

                * Samsung selected the Thor(TM) M5720 modem to power its Samsung
                  Galaxy S(TM) 4G, the world's first 21 Mbps smartphone and 'T-
                  Mobile's Sidekick® 4G by Samsung'; both are running on T-
                  Mobile's US network
                * Quanta Computer selected ST-Ericsson to power its LTE tablets
                  using the NovaThor(TM) platform
                * Showcased a complete TD-LTE solution with voice service for
                  the first time, together with Ericsson and Sony Ericsson
                * Design-win on Thor(TM) M5730 with Ericsson's new C5621gw and
                  H5321gw modules

  * Operators

                * Cooperation with Verizon Wireless on Thor(TM) 4G LTE modems to
                  support its 4G LTE mobile broadband network
                * Demonstrated the feasibility of HSPA in 1800 MHz band with
                  Orange, Ericsson and Quanta Computer



Financial results appendix (unaudited)
2010 financial results by quarter

 $ million                                     |Q1 2010|Q2 2010|Q3 2010|Q4 2010
-----------------------------------------------+-------+-------+-------+-------
 Income Statement                              |       |       |       |
-----------------------------------------------+-------+-------+-------+-------
 NET SALES                                     |    606|    544|    565|    577
-----------------------------------------------+-------+-------+-------+-------
 OPERATING INCOME/(LOSS) ADJUSTED[1] for:      |  (114)|  (118)|   (85)|  (119)
-----------------------------------------------+-------+-------+-------+-------
 -    amortization    of    acquisition-related|       |       |       |
 intangibles                                   |   (24)|   (25)|   (25)|   (28)
-----------------------------------------------+-------+-------+-------+-------
 - restructuring charges                       |   (27)|    (5)|   (19)|   (24)
-----------------------------------------------+-------+-------+-------+-------
 OPERATING INCOME / (LOSS) as reported         |  (164)|  (148)|  (129)|  (171)
-----------------------------------------------+-------+-------+-------+-------
 NET INCOME / (LOSS)                           |  (154)|  (139)|  (121)|  (177)
-----------------------------------------------+-------+-------+-------+-------



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.

Notes to editors
ST-Ericsson invites journalists, analysts and investors to a conference call
scheduled on April 27 at 5 pm CET. Call-in numbers, a live webcast of the
conference call, as well as supporting slides, will be available
atwww.stericsson.com/investors/investors.jsp.

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 $2.3 billion in
2010. 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.
www.stericsson.com
www.twitter.com/STEricssonForum

FOR FURTHER INFORMATION, PLEASE CONTACT:

Global Communications & Media Relations Investor & Analyst Relations
Carol Streitberger Brighton, Geneva,    Fabrizio Rossini, Geneva, Switzerland
Switzerland                             Phone: +41 22 929 6973
                                        Email: [email protected]

Kristina Embring Klang, Lund, Sweden    Public & Media Relations
Phone: +46 46 103 194                   Roland Sladek, Geneva, Switzerland
Email:[email protected]    Phone: +41 22 930 2733

Ericsson Investor Relations             STMicroelectronics Investor Relations
Asa Konnbjer, Stockholm, Sweden         Tait Sorensen, Phoenix AZ, US
Phone:  +46 10 713 3928                 Phone: +1 602 485 2064
Email:[email protected]   Celine Berthier, Geneva, Switzerland
                                        Phone: +41 22 929 5812
                                        Email:[email protected]




                                      ###

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 2011 financial results: 


http://hugin.info/141758/R/1509247/444066.pdf




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Source: ST-Ericsson via Thomson Reuters ONE

[HUG#1509247] 
  



                                                     

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