UPDATE: STMicroelectronics Posts Q2 Profit, Expects 3% Rise In Q3 Sales
STMicroelectronics NV (NYSE: STM) posted a profit in the second quarter.
The Geneva, Switzerland-based company swung to a quarterly profit of $38 million, or $0.04 per share, versus a year-ago net loss of $152 million, or $0.17 per share. On an adjusted basis, STMicroelectronics' non-US GAAP net income, excluding impairment, restructuring and one-time items, came in at $0.11 per share in the quarter, versus a net loss of $0.06 per share in the year-earlier quarter.
Its net revenue dropped 8.9% y/y to $1.86 billion. Its revenue rose 2.1% on a sequential basis, while excluding legacy ST-Ericsson products and one-time licensing, revenue climbed 4.7% in the quarter. However, analysts were expecting earnings of $0.03 per share on revenue of $1.89 billion.
Sense & Power and Automotive Products net revenue rose 0.9% sequentially, while Embedded Processing Solutions net revenue surged 4.6%.
Combined R&D and SG&A expenses dropped to $626 million, from $738 million in the year-earlier period.
Its projects Q3 net revenue to increase 3%, versus $1.86 billion in the second quarter. STMicro's gross profit margin widened to 34% from 32.8% in the year-ago period. It also projects margin to increase to 34.4% in the third quarter.
ST President and CEO Carlo Bozotti said, "During the second quarter we made positive business and financial progress in key areas: from revenue and gross margin improvement as a result of our product, marketing and manufacturing initiatives, to a further strengthened capital structure."
STMicroelectronics shares dropped 3.42% to $9.03 in pre-market trading.
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