STM Reports 2001 Q4 and Full-Year ResultsJanuary 22, 2002 by Jeff Shepard
STMicroelectronics Inc. (STM, Geneva) reported financial results for the fourth quarter and year ended December 31, 2001. Net revenues for the fourth quarter were $1,447.9 million, a 3.4-percent sequential increase over the $1,400.7 million reported in the 2001 third quarter. Sales of differentiated products totaled $1,012.1 million, a 3.9-percent increase over the previous quarter, and accounted for 69.9 percent of fourth-quarter revenues. In last year’s fourth quarter, net revenues were $2,191.7 million, and differentiated product sales equaled $1,367.1 million.
Net income for the 2001 fourth quarter was $45.0 million, or $0.05 per diluted share, increasing from the $35.8 million, or $0.04 per diluted share, reported in the third quarter of 2001. In last year’s fourth quarter, net income was $461.9 million, or $0.50 per diluted share. Pro-forma net income for the 2001 fourth quarter was $55.2 million, or $0.06 per diluted share.
Net revenues for the year ended December 31, 2001, were $6,356.9 million, an 18.6-percent decrease from $7,813.2 million in 2000. Gross profit was $2,380.6 million, or 37.4 percent of net revenues, down from the $3,596.3 million, or 46 percent of net revenues, reported in 2000. Operating income and net income, which include pro-forma results for the 2001 second, third and fourth quarters, were $755.2 million and $600.8 million, respectively.
Net revenues for the 2001 period were $6,356.9 million. Gross profit was $2,309.9 million. Operating income was $339.0 million, and net income was $257.1 million, or $0.29 per diluted share. At December 31, 2001, cash and cash equivalents and marketable securities totaled $2.4 billion; long-term debt was $2.8 billion (83 percent of which consisted of convertible debt). Capital expenditures were $1.7 billion in 2001, compared to $3.3 billion in 2000.
Pasquale Pistorio, president and CEO, commented, “Fourth-quarter performance was in line with the guidance we provided in our third-quarter earnings release of October 18, 2001. The 3.4-percent sequential revenue increase posted in this difficult market environment reflected a more favorable product mix as well as the sales gains in computer peripherals and the continued growth of the wireless portion of our telecom business.”