Key Consolidated Financials:

* excluding last year’s on-of AI Server deal, revenue grew by 11.4% YoY

Operational Updates:

• Q1 FY26 recorded 11.4% Y-o-Y growth excluding projects business 
• Operational efficiencies help report strong EBITDA Margin of 3.53%, up around 140 basis points
• Participated in 15th CHANNEL BUSINESS FORUM – longest running channel roadshow in India
• Surveillance business grew multiple times
• Increasing penetration in AI solutions business
• 4 new Brands added in the Brand Portfolio

Commenting on the performance, Mr. Kapal Pansari, Managing Director, Rashi Peripherals Limited said, “We are extremely pleased with our robust performance in Q1 FY26, building strongly on the growth momentum we established in FY25. The PES segment has demonstrated particularly impressive growth, reflecting resilient demand across personal computing and ICT peripherals. Our strategic focus on integrating AI solutions into our offerings is already delivering meaningful results, positioning us at the forefront of this transformative shift. Our market expansion strategy for FY2025 remains well on track, supported by a diversified brand portfolio that caters to various market and industry segments. This unique combination distinguishes us in the Indian ICT industry. Our efforts this quarter underscore our commitment to delivering sustained value and reinforcing our leadership in the ICT distribution space, while contributing meaningfully to the government’s Digital Bharat vision.”

Mr. Rajesh Goenka, Chief Executive Officer, Rashi Peripherals Limited said, “We closed Q1 FY26 with expanding EBITDA margins, reflecting our continued commitment to operational excellence. This improvement is a direct result of process optimization and disciplined cost management across the board. Our surveillance business, in particular, witnessed encouraging growth, driven by increasing demand for advanced security solutions. We remain deeply engaged with our channel partners through initiatives like CBF 2025, the longest-running channel partner meet in India. Through this platform, we not only strengthen our relationships but also unlock new growth opportunities, especially in Tier-2 and Tier-3 cities. Our resilient and diversified distribution model has delivered 11.4% revenue growth, excluding the project business.”   

April 24, 2025 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 29, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported first quarter net revenues of $2.52 billion, gross margin of 33.4%, operating income of $3 million and net income of $56 million or $0.06 diluted earnings per share.

Jean-Marc Chery, ST President & CEO, commented:

• “Q1 net revenues came in line with the midpoint of our business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix.”
• “On a year-over-year basis, Q1 net revenues decreased 27.3%, operating margin decreased to 0.1% from 15.9% and net income decreased 89.1% to $56 million.”
• “In the first quarter, our book-to-bill ratio improved with both Automotive and Industrial above parity.”
• “Our second quarter business outlook, at the mid-point, is for net revenues of $2.71 billion, decreasing year-over-year by 16.2% and increasing sequentially by 7.7%; gross margin is expected to be about 33.4%, impacted by about 420 basis points of unused capacity charges.”
• “We plan to maintain our Net Capex (non-U.S. GAAP¹) plan for 2025 between $2.0 billion and $2.3 billion mainly to execute the reshaping of our manufacturing footprint.”
• “While we see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio, focus on advanced manufacturing and tightly manage our costs. In this respect our company-wide program to reshape ST manufacturing footprint and resize our global cost base is on track and we confirm the annual cost savings target in the high triple-digit million-dollar range exiting 2027.”

Quarterly Financial Summary

First Quarter 2025 Summary Review

ST made some adjustments to its segment reporting effective starting January 1, 2025. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.

Net revenues totaled $2.52 billion, representing a year-over-year decrease of 27.3%. Year-over-year net sales to OEMs and Distribution decreased 25.7% and 31.2%, respectively. On a sequential basis, net revenues decreased 24.2%, 20 basis points better than the mid-point of ST’s guidance.

Gross profit totaled $841 million, representing a year-over-year decrease of 41.7%. Gross margin of 33.4%, 40 basis points below the mid-point of ST’s guidance, decreased 830 basis points year-over-year, mainly due to product mix and, to a lesser extent, higher unused capacity charges and lower sales price.

Operating income decreased 99.5% to $3 million, compared to $551 million in the year-ago quarter. ST’s operating margin decreased 1,580 basis points on a year-over-year basis to 0.1% of net revenues, compared to 15.9% in the first quarter of 2024. Excluding Impairment, restructuring charges and other related phase-out costs³, operating income stood at $11 million in the first quarter.

By reportable segment, compared with the year-ago quarter:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:

Analog products, MEMS and Sensors (AM&S) segment:

• Revenue decreased 23.9% mainly due to a decrease in Analog.   
• Operating profit decreased by 66.7% to $82 million. Operating margin was 7.7% compared to 17.5%.

Power and Discrete products (P&D) segment:

• Revenue decreased 37.1%.
• Operating profit decreased from a positive $77 million to a negative $28 million. Operating margin was -6.9% compared to 12.1%.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:

Embedded Processing (EMP) segment:

• Revenue decreased 29.1% mainly due to a decrease in GPAM.
• Operating profit decreased by 71.5% to $66 million. Operating margin was 8.9% compared to 22.2%.

RF & Optical Communications (RF&OC) segment:

• Revenue decreased 19.2%.
• Operating profit decreased by 59.0% to $43 million. Operating margin was 13.9% compared to 27.4%.

Net income and diluted Earnings Per Share decreased to $56 million and $0.06 respectively compared to $513 million and $0.54 respectively in the year-ago quarter. Excluding Impairment, restructuring charges and other related phase-out costs net of the relevant tax impact, Net income and diluted Earnings Per Share² stood at $63 million and $0.07 respectively in the first quarter of 2025.

Cash Flow and Balance Sheet Highlights

• Q1 net revenues $2.52 billion; gross margin 33.4%; operating income $3 million; net income $56 million
• Business outlook at mid-point: Q2 net revenues of $2.71 billion and gross margin of 33.4%
• Company-wide program to reshape manufacturing footprint and resize global cost base on track; annual cost savings target in the high triple-digit million-dollar range exiting 2027 confirmed.

April 24, 2025 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 29, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported first quarter net revenues of $2.52 billion, gross margin of 33.4%, operating income of $3 million and net income of $56 million or $0.06 diluted earnings per share.

Jean-Marc Chery, ST President & CEO, commented:

• “Q1 net revenues came in line with the midpoint of our business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix.”
• “On a year-over-year basis, Q1 net revenues decreased 27.3%, operating margin decreased to 0.1% from 15.9% and net income decreased 89.1% to $56 million.”
• “In the first quarter, our book-to-bill ratio improved with both Automotive and Industrial above parity.”
• “Our second quarter business outlook, at the mid-point, is for net revenues of $2.71 billion, decreasing year-over-year by 16.2% and increasing sequentially by 7.7%; gross margin is expected to be about 33.4%, impacted by about 420 basis points of unused capacity charges.”
• “We plan to maintain our Net Capex (non-U.S. GAAP¹) plan for 2025 between $2.0 billion and $2.3 billion mainly to execute the reshaping of our manufacturing footprint.”
• “While we see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio, focus on advanced manufacturing and tightly manage our costs. In this respect our company-wide program to reshape ST manufacturing footprint and resize our global cost base is on track and we confirm the annual cost savings target in the high triple-digit million-dollar range exiting 2027.”

Quarterly Financial Summary

First Quarter 2025 Summary Review

ST made some adjustments to its segment reporting effective starting January 1, 2025. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.

Net revenues totaled $2.52 billion, representing a year-over-year decrease of 27.3%. Year-over-year net sales to OEMs and Distribution decreased 25.7% and 31.2%, respectively. On a sequential basis, net revenues decreased 24.2%, 20 basis points better than the mid-point of ST’s guidance.

Gross profit totaled $841 million, representing a year-over-year decrease of 41.7%. Gross margin of 33.4%, 40 basis points below the mid-point of ST’s guidance, decreased 830 basis points year-over-year, mainly due to product mix and, to a lesser extent, higher unused capacity charges and lower sales price.

Operating income decreased 99.5% to $3 million, compared to $551 million in the year-ago quarter. ST’s operating margin decreased 1,580 basis points on a year-over-year basis to 0.1% of net revenues, compared to 15.9% in the first quarter of 2024. Excluding Impairment, restructuring charges and other related phase-out costs³, operating income stood at $11 million in the first quarter.

By reportable segment, compared with the year-ago quarter:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:

Analog products, MEMS and Sensors (AM&S) segment:

• Revenue decreased 23.9% mainly due to a decrease in Analog.   
• Operating profit decreased by 66.7% to $82 million. Operating margin was 7.7% compared to 17.5%.

Power and Discrete products (P&D) segment:

• Revenue decreased 37.1%.
• Operating profit decreased from a positive $77 million to a negative $28 million. Operating margin was -6.9% compared to 12.1%.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:

Embedded Processing (EMP) segment:

• Revenue decreased 29.1% mainly due to a decrease in GPAM.
• Operating profit decreased by 71.5% to $66 million. Operating margin was 8.9% compared to 22.2%.

RF & Optical Communications (RF&OC) segment:

• Revenue decreased 19.2%.
• Operating profit decreased by 59.0% to $43 million. Operating margin was 13.9% compared to 27.4%.

Net income and diluted Earnings Per Share decreased to $56 million and $0.06 respectively compared to $513 million and $0.54 respectively in the year-ago quarter. Excluding Impairment, restructuring charges and other related phase-out costs net of the relevant tax impact, Net income and diluted Earnings Per Share² stood at $63 million and $0.07 respectively in the first quarter of 2025.

Cash Flow and Balance Sheet Highlights

Net cash from operating activities was $574 million in the first quarter compared to $859 million in the year-ago quarter.

Net Capex (non-U.S. GAAP), was $530 million in the first quarter compared to $967 million in the year-ago quarter.

Free cash flow (non-U.S. GAAP) was positive at $30 million in the first quarter, compared to negative $134 million in the year-ago quarter.

Inventory at the end of the first quarter was $3.01 billion, compared to $2.79 billion in the previous quarter and $2.69 billion in the year-ago quarter. Days sales of inventory at quarter-end was 167 days, compared to 122 days for both the previous quarter and the year-ago quarter.

In the first quarter, ST paid cash dividends to its stockholders totaling $72 million and executed a $92 million share buy-back, as part of its current share repurchase program.

ST’s net financial position (non-U.S. GAAP⁴) remained strong at $3.08 billion as of March 29, 2025, compared to $3.23 billion as of December 31, 2024 and reflected total liquidity of $5.96 billion and total financial debt of $2.88 billion. Adjusted net financial position (non-U.S. GAAP¹), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.71 billion as of March 29, 2025.

Corporate developments

On April 10, 2025, ST detailed its company-wide program to reshape manufacturing footprint and resize global cost base and confirmed the annual cost savings target in the high triple-digit million-dollar range exiting 2027. Specifically, ST disclosed further elements of its program to reshape its global manufacturing footprint.

Business Outlook

ST’s guidance, at the mid-point, for the 2025 second quarter is:

• Net revenues are expected to be $2.71 billion, an increase of 7.7% sequentially, plus or minus 350 basis points.
• Gross margin of 33.4%, plus or minus 200 basis points.
• This outlook is based on an assumed effective currency exchange rate of approximately $1.08 = €1.00 for the 2025 second quarter and includes the impact of existing hedging contracts.
• The second quarter will close on June 28, 2025.

This business outlook does not include any impact for potential further changes to global trade tariffs compared to the current situation.

Conference Call and Webcast Information

ST will conduct a conference call with analysts, investors and reporters to discuss its first quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST’s website, https://investors.st.com, and will be available for replay until May 9, 2025.

Use of Supplemental Non-U.S. GAAP Financial Information

This press release contains supplemental non-U.S. GAAP financial information.

Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST’s consolidated financial statements prepared in accordance with U.S. GAAP.

See the Appendix of this press release for a reconciliation of ST’s non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.

The press release will be available immediately after the release on the Company’s website at www.st.com.

STMicroelectronics will conduct a conference call with analysts, investors and reporters to discuss its fourth quarter and full year 2024 financial results and current business outlook on January 30, 2025 at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET).

 A live webcast (listen-only mode) of the conference call will be accessible at ST’s website https://investors.st.com and will be available for replay until February 14, 2025.

STMicroelectronics reported financial results for the first quarter ended March 30, 2024. Jean-Marc Chery, President & CEO of STMicroelectronics presented the financial results on 25^th April 2024.

Highlights of the Report:

Starting with Q1:

• First quarter net revenues of $3.47 billion and gross margin of 41.7% both came in below the midpoint of our business outlook range, driven by lower revenues in Automotive and Industrial, partially offset by higher revenues in Personal Electronics.
• Looking at our year-over-year performance, Q1 net revenues decreased 18.4%. Gross margin at 41.7% was down from 49.7%. Operating margin decreased to 15.9% from 28.3%, and net income decreased 50.9% to $513 million.
• On a sequential basis, net revenues decreased 19.1%.

During the first quarter, our customer order bookings remained weak in Industrial across all geographies and much lower than expected. This indicates that the Industrial inventory correction will be stronger and last longer than anticipated in January.

Additionally, towards the end of the quarter we started to see some reduction in our Automotive backlog.

On Q2 2024:

• Our second quarter business outlook is for net revenues of about $3.2 billion at the mid-point, declining year-over-year by 26% and sequentially by 7.6%.
• Gross margin is expected to be about 40%.

For the full year 2024:

• Compared with our January expectations, the market environment has further deteriorated, with an even stronger inventory correction in Industrial, slowing the expected growth in the second half of the year compared to our previous expectations. Automotive has entered a deceleration phase, with demand slowing down compared to our January expectations.
• We will now drive the Company based on a revised plan for FY24 revenues in the range of $14 billion to $15 billion. Within this plan, we expect a gross margin in the low 40’s.
• We plan to maintain our Net Capex plan for FY24 at about $2.5 billion focusing on our strategic manufacturing initiatives.

Detailed review of the first quarter

Starting in 2024, ST is organized in two Product Groups split in four Reportable Segments. Therefore, from Q124, we report revenues and operating income according to those four new Reportable Segments.

In Q1, net revenues decreased about 18.4% year-over-year.

• Analog products, MEMS and Sensors was down 13.1% mainly due to MEMS and Imaging.
• Power and Discrete products decreased 9.8% mainly due to Discrete.
• Microcontrollers revenues declined 34.4%, mainly due to General Purpose MCU.
• Digital ICs and RF products declined 2.1% due to a decrease in ADAS more than offsetting an increase in RF Communications.

By end market, Industrial declined more than 40%, Personal Electronics about 13%, CECP about 10% and Automotive about 2%. Year-over-year, sales decreased 11.5% to OEMs and 30.8% to Distribution.

On a sequential basis, Q1 net revenues came in 320 basis points below the mid-point of our outlook, mainly reflecting lower revenues in Automotive and Industrial, partially offset by higher revenues in Personal Electronics.

Overall, Q1 net revenues decreased 19.1% sequentially, with a decline of 14.2% in Analog products, MEMS and Sensors (AM&S), 15.1% in Power and discrete products (P&D), 25.3% in Microcontrollers (MCU) and 23.8% in Digital ICs and RF Products (D&RF).

Looking by end market, Industrial was down 28% sequentially, Personal Electronics 21%, CECP 15% and Automotive 14%.

Excluding the impact of capacity reservation fees and of a specific customer 2023 inventory replenishment effect, Automotive was down 8%.

Gross profit was $1.44 billion, decreasing 31.6% year-over-year.

Gross margin of 41.7%, 60 basis points below the mid-point of ST’s guidance, decreased 800 basis points year-over-year, mainly due to the combination of sales price and product mix, unused capacity charges and reduced manufacturing efficiencies.

Operating margin was 15.9%, compared to 28.3% in the year-ago period. All Reportable Segments were down on a year-over-year basis, with the main decline in MCU and Power and Discrete.

On a year-over-year basis, net income decreased 50.9% to $513 million from $1,04 billion and diluted earnings per share decreased 50.9% to $0.54 from $1.10.

Net cash from operating activities decreased to $859 million in Q1, compared to $1.32 billion in the year-ago quarter.

First quarter Net CAPEX was $967 million, compared to $1.09 billion in the year-ago quarter.

Free cash flow was negative at $134 million compared to positive $206 million in the year-ago quarter.

Inventory at the end of the first quarter was $2.69 billion, compared to $2.87 billion in the year-ago quarter. Days sales of inventory at quarter- end was 122 days compared to 104 days in the previous quarter and 122 days in the year-ago quarter.

Cash dividends paid to stockholders in Q124 totaled $48 million. In addition, ST executed share buy-backs of $87 million as part of our current share repurchase program.

ST’s net financial position of $3.13 billion as of March 30, 2024, reflected total liquidity of $6.24 billion and total financial debt of $3.11 billion.

I will now go through a short update on some of our strategic focus areas in Q1.

In Automotive, we saw a slowdown in semiconductor demand compared to our January expectations. This was characterized by some reductions in backlog and reduced forecasts from some of our customers, including adjustments related to electric vehicle production decrease.

We continued to execute our strategy supporting car electrification during the quarter. We had wins with our third-generation silicon-carbide MOSFET technology for traction inverter at a top manufacturer of electric vehicles as well as with a maker of e-compressor controllers that extend EV driving range, increasing our current design-win pipeline. We also won sockets with our smart fuses in new automotive architecture designs with multiple customers.

In car digitalization, we saw further momentum with our portfolio of automotive microcontrollers. This included wins with our latest generation Stellar MCUs in zonal control, drive train and chassis solutions for a major truck maker.

In ADAS, our partner Mobileye has delivered first production-candidate hardware and software of the EyeQ6 Lite to customers. The EyeQ6 Lite is already set to be installed in 46 million vehicles over the next few years.

Our pipeline of design wins in smart mobility, confirms the strength of our technology and product portfolio to successfully take advantage of the continued structural growth of this key market for ST.

In Industrial, during the quarter the ongoing correction accelerated; it is impacting all the main sub-segments, both in Consumer and in B2B Industrial, and is spread globally.

In Industrial embedded processing solutions, in March we held our flagship STM32 Summit event, which attracted an audience of over 5000 developers around the world. Around this event we announced new low cost, wireless and high-performance microcontrollers as well as new devices in our 64-bit microprocessor family.

We also announced an advanced process based on 18nm Fully Depleted Silicon On Insulator technology with embedded phase change memory to support next-generation embedded processing devices. For developers using sensors for industrial applications, we introduced a new all-in-one tool for MEMS sensor evaluation and development, connected closely with the STM32 microcontroller ecosystem. It supports our wide portfolio of MEMS sensors and includes tools for embedding edge AI in inertial modules.

We continued to develop momentum on Edge AI with increasing usage of our tools and solutions by customers. For example we announced recently a sensorless tire pressure monitoring system for an e-bike based on edge AI algorithms running on an STM32 microcontroller.

We also announced a collaboration on a reference design for high- performance telecom and AI server power supply with Compuware, who supplies high-efficiency power solutions for High-Performance Computing, AI, deep learning, cloud and other advanced applications. It uses ST silicon carbide, galvanic isolation, and microcontroller technologies.

This is an important collaboration since it brings, on top of our focus on Edge AI, another opportunity around AI for ST: the new power architecture for AI servers.

In power and energy management applications we had a broad range of design wins, including in data centers, renewable energy systems, white goods, and factory automation.

Overall, we believe that the sustained design-in and development activity with our customers and distributors in Industrial will enable ST to take advantage of the next market upcycle in an even stronger position.

In Personal Electronics and Computer Peripherals, during Q1 all our engaged customer programs were running as expected, in a market context of stabilization driven by AI.

In Communications Equipment, we received awards for RF front-end and modem solutions from a new player in the LEO satellite market.

Finally, I would like to mention that we have recently published our 27th annual sustainability report highlighting our longstanding commitment in this area. We continued to make substantial progress towards our ambitious targets for carbon neutrality. In 2023 our scope 1 and 2 greenhouse gas emissions were down 45% in absolute terms compared to 2018 and we source now 71% renewable energy – on track to reach our target of 100% by 2027. Long-term power purchasing agreements are a key part of our strategy and we signed another significant agreement in Italy earlier this month.

Q2 2024 financial outlook and Full Year Plan

For Q2, we now expect net revenues to be about $3.2 billion at the midpoint, representing a year-over-year decrease of about 26% and a sequential decrease of about 7.6%.

For 2024:

• We revised down our plan for FY24 revenues to be in the range of $14 billion to $15 billion, representing a decline over 2023 of about 19% to 13%.
• This takes into consideration the accelerated inventory correction in Industrial as well as a deceleration phase starting in Automotive.
• We plan to maintain our plan to invest about $2.5 billion in Net Capex, focusing on our strategic manufacturing initiatives.

To conclude

We continue to adapt our plans according to these asynchronous market dynamics -with a downcycle in Industrial, a deceleration in Automotive and a stabilization in Personal Electronics and Computer Peripherals. In parallel, we will continue to execute our strategic initiatives consistently with our established strategy and operating model.

For the full version of this news release (incl. financial data), please download the PDF version.

• Q2 FY 2024: Revenue €3.632 billion, Segment Result €707 million, Segment Result Margin 19.5 percent
• Outlook for FY 2024: Based on an assumed exchange rate of US$1.10 to the euro, Infineon now expects to generate revenue of around €15.1 billion plus or minus €400 million (previously €16 billion plus or minus €500 million), with a Segment Result Margin of around 20 percent (previously in the low to mid-twenties percentage range) at the mid-point of the guided revenue range. Adjusted gross margin will be in the low-forties percentage range (previously in the low to mid-forties percentage range). Investments are planned at around €2.8 (previously around 2.9 billion). Adjusted Free Cash Flow of about €1.6 billion (previously €1.8 billion) and reported Free Cash Flow of about €0 million (previously about €200 million) are now expected
• Outlook for Q3 FY 2024: Based on an assumed exchange rate of US$1.10 to the euro, revenue of around €3.8 billion expected. On this basis, the Segment Result Margin is forecast to be in the high-teens percentage range

Neubiberg, 7 May 2024 – Today, Infineon Technologies AG is reporting results for the second quarter of the 2024 fiscal year (period ended 31 March 2024).

‘In the prevailing difficult market environment, Infineon delivered a solid second quarter”, says Jochen Hanebeck, CEO of Infineon. “Many end markets have remained weak due to economic conditions, while customers and distributors have continued to reduce semiconductor inventory levels. Weak demand for consumer applications persists. There has also been a noticeable deceleration in growth in the automotive sector. We are therefore taking a cautious approach to the outlook for the rest of the fiscal year and are lowering our forecast. In the medium to long term, decarbonization and digitalization will continue to be strong structural drivers of our profitable growth. In order to realize the full potential of our Company, we will further strengthen our competitiveness. To this end, we are launching the company-wide “Step Up” program. We are aiming to achieve structural improvements in our Segment Result in the high triple-digit million euro range per year.”

For the full version of this news release (incl. financial data), please download the PDF version.

Geneva, April 25, 2024 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 30, 2024. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported first quarter net revenues of $3.47 billion, gross margin of 41.7%, operating margin of 15.9%, and net income of $513 million or $0.54 diluted earnings per share.

Jean-Marc Chery, ST President & CEO, commented:

·       “Q1 net revenues and gross margin both came in below the midpoint of our business outlook range, driven by lower revenues in Automotive and Industrial, partially offset by higher revenues in Personal Electronics.”

·       “On a year-over-year basis, Q1 net revenues decreased 18.4%, operating margin decreased to 15.9% from 28.3% and net income decreased 50.9% to $513 million.”

·       “During the quarter, Automotive semiconductor demand slowed down compared to our expectations, entering a deceleration phase, while the ongoing Industrial correction accelerated.”

·       “Our second quarter business outlook, at the mid-point, is for net revenues of $3.2 billion, decreasing year-over-year by 26.0% and decreasing sequentially by 7.6%; gross margin is expected to be about 40%.”

·       “We will now drive the Company based on a revised plan for FY24 revenues in the range of $14 billion to $15 billion. Within this plan, we expect a gross margin in the low 40’s.”

·       “We plan to maintain our Net Capex¹ plan for FY24 at about $2.5 billion focusing on our strategic manufacturing initiatives.”

·        

Quarterly Financial Summary (U.S. GAAP)

First Quarter 2024 Summary Review

Reminder: On January 10, 2024, ST announced a new organization which implied a change in segment reporting starting Q1 2024. Comparative periods have been adjusted accordingly. See Appendix for more detail. 

Net revenues totaled $3.47 billion, representing a year-over-year decrease of 18.4%. Year-over-year net sales to OEMs and Distribution decreased 11.5% and 30.8%, respectively. On a sequential basis, net revenues decreased 19.1%, 320 basis points lower than the mid-point of ST’s guidance.

Gross profit totaled $1.44 billion, representing a year-over-year decrease of 31.6%. Gross margin of 41.7%, 60 basis points below the mid-point of ST’s guidance, decreased 800 basis points year-over-year, mainly due to the combination of sales price and product mix, unused capacity charges and reduced manufacturing efficiencies.

Operating income decreased 54.1% to $551 million, compared to $1.20 billion in the year-ago quarter. ST’s operating margin decreased 1,240 basis points on a year-over-year basis to 15.9% of net revenues, compared to 28.3% in the first quarter of 2023.

By reportable segment, compared with the year-ago quarter:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:

Analog products, MEMS and Sensors (AM&S) segment:

• Revenue decreased 13.1% mainly due to a decrease in MEMS and Imaging.  
• Operating profit decreased by 44.8% to $185 million. Operating margin was 15.2% compared to 23.9%.

Power and Discrete products (P&D) segment:

• Revenue decreased 9.8% mainly due to a decrease in Discrete.
• Operating profit decreased by 41.6% to $138 million. Operating margin was 16.8% compared to 26.0%.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:

Microcontrollers (MCU) segment:

• Revenue decreased 34.4% mainly due to a decrease in GP MCU. 
• Operating profit decreased by 66.7% to $185 million. Operating margin was 19.5% compared to 38.3%.

Digital ICs and RF products (D&RF) segment:

• Revenue decreased 2.1% due to a decrease in ADAS more than offsetting an increase in RF Communications.
• Operating profit decreased by 8.2% to $150 million. Operating margin was 31.8% compared to 33.9%.

Net income and diluted Earnings Per Share decreased to $513 million and $0.54 respectively compared to $1.04 billion and $1.10 respectively in the year-ago quarter. 

Cash Flow and Balance Sheet Highlights

Net cash from operating activities was $859 million in the first quarter compared to $1.32 billion in the year-ago quarter.

Net Capex (non-U.S. GAAP)¹ was $967 million in the first quarter compared to $1.09 billion in the year-ago quarter.

Free cash flow (non-U.S. GAAP)¹ was negative at $134 million in the first quarter, compared to positive $206 million in the year-ago quarter.

Inventory at the end of the first quarter was $2.69 billion, compared to $2.70 billion in the previous quarter and $2.87 billion in the year-ago quarter. Days sales of inventory at quarter-end was 122 days compared to 104 days in the previous quarter and 122 days in the year-ago quarter.

In the first quarter, ST paid cash dividends to its stockholders totaling $48 million and executed a $87 million share buy-back as part of its current share repurchase program.

ST’s net financial position (non-U.S. GAAP)¹ was $3.13 billion as of March 30, 2024, compared to $3.16 billion as of December 31, 2023 and reflected total liquidity of $6.24 billion and total financial debt of $3.11 billion. Adjusted net financial position (non-U.S. GAAP)¹, taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.78 billion as of March 30, 2024.

Business Outlook

ST’s guidance, at the mid-point, for the 2024 second quarter is:

• Net revenues are expected to be $3.2 billion, a decrease of 7.6% sequentially, plus or minus 350 basis points.
• Gross margin of 40%, plus or minus 200 basis points.
• This outlook is based on an assumed effective currency exchange rate of approximately $1.08 = €1.00 for the 2024 second quarter and includes the impact of existing hedging contracts.
• The second quarter will close on June 29, 2024.

Conference Call and Webcast Information

ST will conduct a conference call with analysts, investors and reporters to discuss its first quarter 2024 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST’s website, https://investors.st.com, and will be available for replay until May 10, 2024.

Use of Supplemental Non-U.S. GAAP Financial Information

This press release contains supplemental non-U.S. GAAP financial information.

Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST’s consolidated financial statements prepared in accordance with U.S. GAAP.

See the Appendix of this press release for a reconciliation of ST’s non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.

Forward-looking Information

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:

• changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and adversely impact the demand for our products;
• uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products;
• customer demand that differs from projections;
• the ability to design, manufacture and sell innovative products in a rapidly changing technological environment;
• changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macroeconomic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities;
• unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding;
• financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
• the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers;
• availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation);
• the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology;
• theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation;
• the impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
• changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
• variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
• the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
• product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;
• natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate;
• increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral by 2027 on scope 1 and 2 and partially scope 3;
• epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results;
• industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; and
• the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations.

Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.

…

Geneva, January 24, 2019 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the fourth quarter and year ended December 31, 2018. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported fourth quarter net revenues of $2.65 billion, gross margin of 40.0%, operating margin of 16.8%, and net income of $418 million or $0.46 diluted earnings per share.

Jean-Marc Chery, STMicroelectronics President & CEO, commented: 

• “ST delivered a solid performance in the fourth quarter, with net revenues and operating income increasing sequentially 5.0% and 11.5%, respectively.
• “Net revenues in 2018 increased by 15.8% year-over-year led by Imaging, Automotive and Power Discrete.
• “2018 has been an important year for ST. In line with the objectives we had set, we achieved significant revenue growth across our product groups, as well as a strong expansion of profitability and cash flow from operations.
• “Our first quarter outlook is for revenues of about $2.1 billion at the mid-point, decreasing year-over-year by about 5.7%. Sequentially, this represents a decrease of about 20.7%, reflecting the combined impact of increased unfavorable dynamics in some of the end markets we serve, on top of normal first quarter seasonality. From a profitability perspective, we expect a gross margin of about 39% at the mid-point.
• “For 2019 our key objectives are to continue outperforming our served market, to balance our end market and application focus and to execute on our strategic technology, R&D and manufacturing programs. Therefore, we expect to invest between $1.2 to $1.3 billion in CAPEX.” 

The press release is available as a PDF : https://www.st.com/content/st_com/en/about/media-center/press-item.html/c2871.html