STMicroelectronics Inc. (Geneva, Switzerland) reported financial results for the first quarter ended March 30, 2002. Net revenues for the first quarter were $1,355.2 million. This represents a 6.4-percent sequential decline from the $1,447.9 million reported in the 2001 fourth quarter, and was well below the $1,921.1 million of last year’s first quarter. Revenues from differentiated products were $952.5 million, accounting for 70.3 percent of net revenues for the period.
Gross profit was $452.0 million, a sequential decline from the prior-quarter’s $459.5 million, and a decrease of 47 percent from the $855.8 million reported in the first quarter of 2001. Gross margin was 33.4 percent, 170 basis points above the 31.7 percent of the 2001 fourth quarter, an improvement over the guidance issued in January 2002, but below the 44.5 percent reported in the comparable year-ago period.
President and CEO Pasquale Pistorio commented, “As anticipated, the sequential decline in net revenues from the 2001 fourth quarter was primarily attributable to seasonal factors as well as pricing pressures resulting from industry-wide overcapacity. Order flow accelerated significantly in the last month of the quarter, during which time we also experienced a degree of price stabilization that benefited memory and other product families”.