STMicroelectronics Inc. (ST, Geneva, Switzerland) reported financial results for the first quarter ended March 27, 2004. Net revenues for the first quarter were $2,029 million, 25.4 percent above the $1,618 million of last year’s first quarter, and down 4.0 percent sequentially from the $2,113 million reported in the prior quarter.
Revenues from differentiated products were $1,371 million or 67.6 percent of net revenues for the 2004 first quarter. Gross profit was $718 million, 26.9 percent above last year’s first quarter gross profit of $566 million, and a 5.5 percent sequential decrease from the prior quarter’s $760 million. Gross margin was 35.4 percent, compared to 35.0 percent reported for last year’s first quarter, and the 36.0 percent of the prior quarter.
Pasquale Pistorio, president and chief executive officer, commented, “For the first time, ST’s first-quarter revenues exceeded the $2 billion mark. As anticipated, overall market demand partially offset the seasonality that generally affects our first-quarter revenue performance, although we did experience some shipment delays at the end of the period. Gross margin, however, was somewhat higher than our initial expectations, benefiting from a more stable pricing environment for certain product families and manufacturing efficiencies.”
