ST Microelectronics reported its fourth quarter 2010 net
revenues increased 6.6% sequentially to reach $2,833 million.
ST calls this a record year for the full range of ST's "Sense
and Power" portfolio, namely advanced analog and MEMS,
as well as microcontrollers and automotive applications.
Net revenues for the full year 2010 increased 21.6% to
a record $10,346 million from $8,510 million in the prior
year, with IMS (Industrial and Multisegment Product Sector)
and ACCI (Automotive/Consumer/Computer/Communication Infrastructure
increasing 45% and 32%, respectively.
President and CEO Carlo Bozotti commented, "ST had
a very strong finish to the year. Our fourth quarter revenues
came in near the top end of our range, increasing 6.6% sequentially
on broad-based strength in analog, MEMS, microcontrollers
and automotive applications. Our gross margin further increased
to 39.9%, up 70 basis points sequentially, coming in above
the midpoint of our guidance.
"ACCI and IMS again achieved record sales this quarter,
accompanied by further improvements at the operating profit
level, with ACCI operating margin increasing to 11.9% and
IMS rising to 22.5%. In wireless, while operating losses
remain very significant, ST-Ericsson has completed its restructuring
and is now well on its way to complete the transition to
its new product portfolio. Overall, ST's strong sales results,
driven by our innovative product portfolio combined with
our restructuring efforts, enabled ST to generate net earnings
of $830 million for the year."
"In 2010, we were well prepared to take advantage
of significantly better industry conditions with the right
portfolio and we have started to turn our vision of leadership
in 'Sense and Power' applications and in multimedia convergence
into reality. In the last eight quarters, ST went through
the most severe economic recession in 2009 and successfully
capitalized on the 2010 market recovery. Throughout this
timeframe we remained focused on our growth and profitability
objectives. Today, our innovative products, which have leadership
positions in highly successful applications, customer base
and solid capital structure, make us a much stronger company."
Other highlights of the ST's release are:
Fourth quarter net revenues increased on a year-over-year
basis by 30% in Industrial and Multisegment Sector (IMS),
and 15% in Automotive/Consumer/Computer/Communication Infrastructure
Sector (ACCI), while Wireless, reflecting the ongoing portfolio
transition at ST-Ericsson, decreased by 21%. Overall fourth
quarter net revenues increased by 9.7% on a year-over-year
basis, geographically led by Greater China-South Asia with
sales growth of 15% and the Americas with a 14% increase.
On a year-over-year basis, all market segments, except
Telecom, posted growth, with Automotive up by 27%, Industrial
& Other by 18%, Consumer by 14%, and Computer by 7%.
Telecom declined by 7%. Distribution increased 25%.
Sequentially, revenues grew in all regions, led by Japan-Korea,
Greater China-South Asia and Americas with 10%, 8% and 7%
All market segments increased on a sequential basis, except
Consumer, with Automotive higher by 16%, Industrial &
Other by 13%, Computer by 10%, and Telecom by 7%. Consumer
decreased by 6% on weakening demand. Distribution increased
sequentially by 4%.
Wireless net revenues in the fourth quarter increased
3% sequentially to $562 million, reflecting continued strong
performance from ST-Ericsson's new 2G/EDGE platforms and
initial HSPA+ modem sales offset by weakness in the TD-SCDMA
market and the anticipated decrease in legacy products.
Wireless operating loss, excluding $24 million of restructuring
charges, in the fourth quarter was $136 million. Wireless
operating loss, excluding non-controlling interest, was
$64 million in the fourth quarter compared to a loss of
$37 million and $11 million in the prior and year-ago periods.
Sequentially, Wireless results reflect increased losses
at ST-Ericsson due to anticipated seasonality and currency
effects, as well as price erosion due to their ongoing legacy
ST recorded $83 million of income in the fourth quarter
of 2010 compared to $60 million and $59 million in the prior
and year-ago quarters, respectively, reflecting the net
results attributable to non-controlling interest, mainly
related to the ST-Ericsson joint venture. This amount is
posted below operating results in ST's Consolidated Income
Statement and reflects primarily Ericsson's 50% share in
the joint venture's results, as consolidated by ST.