STMicroelectronics Posts Q4 Profit

swung to a profit in the fourth quarter. STMicroelectronics posted a quarterly net profit of $43 million, or $0.05 per share, versus a year-ago loss of $36 million, or $0.04 per share. On an adjusted basis, net of related taxes, the company posted non-U.S. GAAP net income of $0.07 per share, excluding impairment and restructuring charges, versus a year-ago net loss of $0.01 per share. Its revenue slipped 9.4% to $1.83 billion in the quarter. Fourth quarter gross profit came in at $619 million, while gross margin was 33.8%. Net cash from operating activities surged to $311 million in the fourth quarter from $270 million. In the fourth quarter, STMicroelectronics paid cash dividends to shareholders of $90 million and used cash of $63 million to repurchase shares. For the current quarter, STMicroelectronics projects gross profit margin to decline to about 33.2%, versus 33.8% in the fourth quarter. Carlo Bozotti, STMicroelectronics President and Chief Executive Officer said, "ST is making solid progress on key performance and financial metrics. We met our operating expense target levels earlier than planned, achieved a significant turnaround in operating income, net income and cash flow, improved gross margin and operating margin and maintained our financial flexibility." STMicroelectronics shares dropped 2.11% to close at $8.34 yesterday.