- Q2 net revenues $2.09 billion; gross margin 35.0%; operating margin 5.1%; net income $90 million
- H1 net revenues $4.32 billion; gross margin 36.5%; operating margin 7.8%; net income $282 million
- Business outlook at mid-point: Q3 net revenues $2.45 billion and gross margin of 36.0%
STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the second quarter ended June 27, 2020. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported second quarter net revenues of $2.09 billion, gross margin of 35.0%, operating margin of 5.1%, and net income of $90 million or $0.10 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO, commented:
· “During the second quarter, we returned to normal operations, supporting our customers’ demand and continuing to ensure the health and safety of our employees.
· “Q2 net revenues decreased 6.5% sequentially. As expected, this was due to the decline in Automotive, Analog and Imaging products, partially offset by growth in Microcontrollers, Digital and Power Discrete. Second quarter gross margin includes 310 basis points of unsaturation charges.
· “The first half of 2020 reflects year-over-year growth of 1.6%, driven by Analog, Imaging and Microcontrollers, partially offset by Automotive and Power Discrete.
· “Looking at the third quarter, we expect sequential revenue growth of 17.4% at the mid-point. This growth will be driven by engaged customer programs, new products and improved market conditions. Gross margin is expected to be 36.0% at the mid-point, including about 200 basis points of unsaturation charges.
· “We will drive the Company based on an updated plan for FY20 net revenues between $9.25 billion and $9.65 billion with growth in the second half over the first half to be in the range of $610 million to $1.01 billion. We expect this growth to be driven by engaged customer programs, new products and improved market conditions. Our CAPEX plan for 2020 is now about $1.2 billion.”
The press release is available as a PDF here https://newsroom.st.com/wp-content/uploads/2020/07/c2964.pdf