Q2 net revenues $2.17 billion; gross margin 38.2%; operating margin 9.0%; net income $160 million
H1 net revenues $4.25 billion; gross margin 38.8%; operating margin 9.6%; net income $338 million
Q3 business outlook at mid-point: net revenues up about 15.3% Q/Q and gross margin of about 37.5%
STMicroelectronics, reported U.S. GAAP financial results for the second quarter ended June 29, 2019. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported second quarter net revenues of $2.17 billion, gross margin of 38.2%, operating margin of 9.0%, and net income of $160 million or $0.18 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO, commented:
· “As planned, in the second quarter we returned to sequential revenue growth. In fact, revenues increased 4.7%, above the mid-point of our guidance of 2.4%, driven by specialized imaging sensors, RF products for front end modules, silicon carbide MOSFETs and digital automotive, partially offset by general purpose analog, microcontrollers and legacy automotive products. We delivered an operating margin of 9.0%.
· “During the first half of 2019 we delivered sales and profitability results in line with our quarterly guidance and we continued to advance our strategic investments.
· “Looking at the third quarter, we expect strong sequential revenue growth of about 15.3% at the mid-point. This growth will be driven by engaged customer programs and new products in a softer than expected legacy automotive and industrial market. Gross margin is expected to be about 37.5% at the mid-point, including about 140 basis points of unsaturation charges.
· “For the full year 2019, we now expect net revenues to be in the range of about $9.35 to $9.65 billion. We confirm our investment plan of $1.1 to $1.2 billion.”
The press release is available as a PDF link