ST Reports Fourth-Quarter, Fiscal 2002 ResultsJanuary 27, 2003 by Jeff Shepard
STMicroelectronics Inc. (ST, Geneva, Switzerland) reported financial results for the fourth quarter and year ended December 31, 2002. Net revenues for the fourth quarter were $1,786.1 million, an 8.6 percent sequential increase over the $1,645.2 million reported in the 2002 third quarter, and 23.4 percent above the $1,447.9 million of last year’s fourth quarter. Revenues from differentiated products increased 6.6 percent sequentially and 20.3 percent year-over-year to $1,217.9 million, or 68.2 percent of net revenues for the period.
Gross profit was $660.6 million, an 8.5 percent sequential increase from the prior-quarter’s $609.1 million, and 43.8 percent above last-year’s fourth-quarter gross profit of $459.5 million. Gross margin was 37 percent, flat with the 2002 third quarter and significantly above the 31.7 percent reported for last-year’s fourth quarter. Operating income was $209.1 million, up 13.1 percent sequentially and close to three times higher than that of last-year’s fourth quarter. Operating margin was 11.7 percent, up from 11.2 percent in the prior quarter and 4.9 percent in the 2001 fourth quarter.
Net income equaled $160.6 million for the 2002 fourth quarter, a sequential increase of 22.4 percent over the $131.2 million earned in the 2002 third quarter, and significantly above the net income of $45 million reported in last-year’s fourth quarter. Earnings per diluted share were $0.18 for the 2002 fourth quarter, compared to $0.15 in the third quarter of this year and $0.05 in the 2001 fourth quarter.
Net revenues for the year ended December 31, 2002, were $6,317.6 million, compared to the $6,356.9 million reported in 2001. Gross profit was $2,297.5 million, or 36.4 percent of net revenues. Operating income was $601 million, or 9.5 percent of net revenues. Net income was $429.4 million, or $0.48 per diluted share, compared to "as reported" 2001 gross profit, operating income and net income of $2,309.9 million, $339 million and $257.1 million, respectively. On a pro-forma basis, 2001 gross profit, operating income and net income were $2,380.6 million, $755.2 million and $600.8 million, respectively.