STMicroelectronics Reports Third-Quarter Results

October 24, 2001 by Jeff Shepard

STMicroelectronics (Geneva) reported results for the third quarter and first nine months ended September 29, 2001. Net revenues for the 2001 third quarter were $1,400.7 million, within the company's guidance range of $1,350 million to $1,430 million provided in its second-quarter earnings release of July 12, 2001.

Third-quarter revenue results represent a 11.8 percent sequential decline from the $1,587.2 million reported in the prior quarter. In last year's third quarter, net revenues were $2,042.0 million. Revenues from differentiated products declined 4.9 percent on a sequential basis, reaching $974.3 million for the period.

Pasquale Pistorio, president and CEO, commented, "As anticipated, market conditions further deteriorated in the third quarter, with pricing pressures driven by industry overcapacity negatively affecting virtually all of ST's product families. During

this time, we believe that ST's revenue performance was in line with the overall industry average. However, we believe we gained market share in our targeted applications, as illustrated by the strength of the company's differentiated product sales.”

The company posted gross profit for the 2001 third quarter of $462.1 million, and gross margin stood at 33 percent for the period. In the prior quarter, pro-forma gross profit was $603.3 million, or 38 percent of net revenues, and as-reported gross profit was $532.6 million, or 33.6 percent of net revenues.