STMicroelectronics (Switzerland) reported results for the second quarter and first half ended June 30, 2001. Net revenues for the second quarter were $1,587.2 million, in line with the company's guidance range of $1.55 billion to $1.6 billion. In last year's second quarter, the company reported net revenues of $1,877.3 million. These revenues were a decline of 15.5 percent from last year's second quarter, and 17.4 percent from the first quarter of 2001.
The company experienced significant end-of-period push-outs and cancellations. As a result, STMicroelectronics has incurred a second-quarter excess inventory pre-tax charge of $70.7 million. Excluding the effect of this special charge, gross margin for the second quarter of 2001 was 38 percent. Including the effect of the charge, gross margin for the period was 33.6 percent. Gross profit for the second quarter was $603.3 million, compared to $875.7 million in the similar year-ago quarter.
Pasquale Pistorio, president and CEO of the company, commented, "Second-quarter revenue performance reflected the very difficult business conditions that have negatively affected several of our end markets. Within this industry downturn, however, and based upon currently available data, we believe that ST has continued to perform relatively better than the market and to gain market share."
