|
Revenues of $1.79 billion were up 8.6% sequentially and 23.4% year-over-year. |
|
Gross profit and gross margin were $660.6 million and 37.0%, respectively |
|
Operating income and net income were $209.1 million and $160.6 million, representing sequential increases of 13.1% and 22.4%, respectively.
|
|
Net income per diluted share was $0.18, up from $0.15 in the prior quarter and $0.05 in the 2001 fourth quarter. |
Net Revenues: |
$6.32 billion | |
Gross Profit: |
$2.3 billion | |
Net Income: |
$429.4 million | |
Net Income Per Diluted
Share: $0.48 |
Group |
Revenue |
% of Net Revenue |
Operating Income Q4 2002 |
|||||||
(Million US$) |
(Million US$) |
|||||||||
Telecommunications, Peripherals and Automotive (TPA) |
$ |
870.9 |
48.7 |
% |
$ |
179.7 |
| |||
Discrete and Standard ICs (DSG) |
|
287.4 |
16.1 |
% |
|
35.1 |
| |||
Memory Products (MPG) |
|
321.1 |
18.0 |
% |
|
10.9 |
| |||
Consumer and Microcontroller (CMG) |
|
271.0 |
15.2 |
% |
|
18.5 |
| |||
OTHER* |
|
35.7 |
2.0 |
% |
|
(35.1 |
) | |||
TOTAL |
$ |
1,786.1 |
100.0 |
% |
$ |
209.1 |
|
* |
The OTHER category includes such items as start-up costs, and other unallocated expenses including: strategic (or special) research and development programs,
certain corporate level operating expenses, restructuring charges, and other costs that are not allocated to product groups, as well as the revenues and operating earnings or losses of the New Ventures Group and the Subsystems Products Group.
|
Revenue |
% of Net Revenue |
|||||
(Million US$) |
||||||
Automotive |
$ |
220.9 |
12.4 |
% | ||
Consumer |
|
340.4 |
19.0 |
% | ||
Computer |
|
355.8 |
19.9 |
% | ||
Telecom |
|
630.3 |
35.3 |
% | ||
Industrial & Other |
|
238.7 |
13.4 |
% |
Revenue |
% of Net Revenue |
|||||
(Million US$) |
||||||
Europe |
$ |
834.8 |
46.8 |
% | ||
North America |
|
556.3 |
31.1 |
% | ||
Asia/Pac |
|
221.7 |
12.4 |
% | ||
Japan |
|
128.2 |
7.2 |
% | ||
Emerging Markets |
|
45.1 |
2.5 |
% |
Revenue |
% of Net Revenue |
|||||
(Million US$) |
||||||
Europe |
$ |
520.3 |
29.1 |
% | ||
North America |
|
248.3 |
13.9 |
% | ||
Asia/Pac |
|
777.7 |
43.6 |
% | ||
Japan |
|
80.8 |
4.5 |
% | ||
Emerging Markets |
|
159.0 |
8.9 |
% |
Revenue |
% of Net Revenue |
|||||
(Million US$) |
||||||
Differentiated Products |
$ |
1,217.9 |
68.2 |
% | ||
Standard & Commodities |
|
98.8 |
5.5 |
% | ||
Micro & Memories |
|
260.1 |
14.6 |
% | ||
Discretes |
|
209.3 |
11.7 |
% |
Group |
Revenue |
% of Net Revenue |
Operating Income 2002 |
|||||||
(Million US$) |
(Million US$) |
|||||||||
Telecommunications, Peripherals and Automotive (TPA) |
$ |
3,074.2 |
48.7 |
% |
$ |
613.2 |
| |||
Discrete and Standard ICs (DSG) |
|
1,055.3 |
16.7 |
% |
|
134.5 |
| |||
Memory Products (MPG) |
|
1,054.8 |
16.7 |
% |
|
7.2 |
| |||
Consumer and Microcontroller (CMG) |
|
1,025.6 |
16.2 |
% |
|
57.0 |
| |||
OTHER* |
|
107.7 |
1.7 |
% |
|
(210.9 |
) | |||
TOTAL |
$ |
6,317.6 |
100.0 |
% |
$ |
601.0 |
|
* |
The OTHER category includes such items as start-up costs, and other unallocated expenses including: strategic (or special) research and development programs,
certain corporate level operating expenses, restructuring charges, and other costs that are not allocated to product groups, as well as the revenues and operating earnings or losses of the New Ventures Group and the Subsystems Products Group.
|
|
Targeting the market for 2.5G and 3G mobile phones, PDAs and other portable and multimedia products, ST disclosed details of a very significant initiative with Texas
Instruments, whereby the two companies will jointly define and promote an open standard for wireless application processor interfaces. The new OMAPI(SM) Standard is expected to promote faster and broader deployment of multimedia-enhanced mobile devices and applications. STs announcement of an OMAPI-compliant processor is expected in the first quarter of 2003.
|
|
ST unveiled a prototype silicon chip for DNA analysis that integrates both DNA amplification and detection on the same piece of silicon. This device is based on
Micro-Electro-Mechanical-System (MEMS) technology that applies standard silicon-chip manufacturing technologies to produce miniature devices with a combination of mechanical, electrical, fluidic, and optical elements suitable for diagnostic and
identification applications. Additionally, at Electronica 2002, ST described first details of its advanced research activity in this area including electronic detection of DNA samples and the development of scalable software called the Gene
Platform for future lab-on-chip solutions. |
|
ST released details of a ground-breaking technology that allows silicon-based light emitters to match the efficiency of higher-cost traditional light-emitting compound
semiconductor materials such as gallium arsenide (GaAs). Because it enables ST to combine optical and electrical functions on a single chip, the new technology facilitates the integration of applications that currently use discrete components and
makes possible a new class of applications using features such as on-chip optical clocking. |
|
Shipments of MPEG2 decoders to set-top box manufacturers passed the 100-million- unit mark, demonstrating the Companys leadership and strength in this important
digital consumer market. |
|
ST released details of the industrys most advanced silicon solution for DVD playback. The company is now implementing all of the analog and digital electronic
circuitry required for DVD playback in just two chips. |
|
The development of the first contactless smart card IC with FRAM (Ferroelectric RAM), replacing standard RAM, was jointly announced by ST and Fujitsu. The new device is
particularly suited to applications such as transport ticketing and access control. |
|
In the Flash memory market, ST introduced two new multiple-bank 128-Mbit Flash devices targeted at high-performance next-generation mobile phones and confirmed its
commitment to multi-bit/cell technology with the successful produc tion of a 128-Mbit, 3V, 2-bit/cell device. The Company also significantly increased its number of 64-Mbit Flash sockets at major cellular phone manufacturers and achieved its first
design win at a major set-top-box manufacturer with a new secure 64-Mbit Flash memory. |
|
The Companys latest 12- line chipset technology has been integrated into Alcatels latest DSLAM (Digital Subscriber Line Access Multiplexer), the
market-leading DSL ASAM 7300 platform. Also in the DSL market, ST gained a design win from Telecom Italia for the Unicorn ADSL chipset. |
|
In the networking market, ST gained a major ASIC design win from a market leader for a device that will be used in Wireless LAN products. |
|
In the computer peripherals market, ST won two more important design wins for digital printer enginesone for mid-range printers and one in the expanding
multifunction printer market. In the Hard Disk Drive (HDD) arena, ST sampled the first SoC device in 0.13-micron technology and also gained a key design win for a power IC for an enterprise HDD application, expanding its presence in this area and
building on the Companys strong position in the desktop HDD market. |
|
ST announced that it had started production of one of the most complex System-on-Chip (SoC) devices ever built for a scientific experiment. The chip was jointly developed
by ST and the ALICE Collaboration, a group of Universities and Research Institutes, in preparation for a major experiment that will be performed at CERN. Know-how acquired during the project is now being applied by ST to the development of new
data-acquisition chips for high- volume markets. |
|
ST and LOréal announced the first use of semiconductors in the development of next-generation skin care. LOréal, a world leader in cosmetics, is
using STs TouchChip silicon image-sensor technology in an innovative research project to develop methods to quickly and easily provide detailed hydration analysis of human skin. |
(i) |
demand for the Companys products; |
(ii) |
the competitive pricing environment; |
(iii) |
business conditions in the end-user markets, in particular demand for products made by our customers and their ability to directly forecast the end-user demand for
their products; |
(iv) |
excess manufacturing capacity in the semiconductor industry and its effect on pricing; |
(v) |
the status of and future growth of the economies in major world and regional markets; |
(vi) |
possible disruption in commercial activities occasioned by major events in the world such as armed conflict or terrorism; |
(vii) |
the impact of foreign currency fluctuations, in particular increases in the value of the Euro vs the US Dollar; |
(viii) |
the ability to operate our manufacturing facilities efficiently in an uncertain political, economic and business environment; |
(ix) |
the success of our alliances and agreements with other companies to develop new technologies; |
(x) |
the ability of our subcontractors to perform in accordance with our requirements to the extent we rely on them; |
(xi) |
competitive factors such as the timely development of new products and designs in line with market and customer requirements; |
(xii) |
excess or obsolete inventory and variations in inventory valuation; |
Stanley March Investor
Relations Director Tel: +1.212.821.89.39 Fax:
+1.212.821.89.23 Email:stan.march@st.com |
Fabrizio Rossini Investor Relations Senior Manager Tel: +41.22.929.69.73 Fax: +41.22.929 .69.61 Email: fabrizio.rossini@st.com |
Benoit de Leusse Investor Relations Senior Manager Tel: +41.22.929.58.12 Fax: +41.22.929.69.61 Email: benoit.de-leusse@st.com |
Three Months Ended |
Twelve Months Ended |
||||||||||||||
As Reported |
As Reported |
As Reported |
As Reported |
Pro Forma |
|||||||||||
Dec. 31 2002 |
Dec. 31 2001 |
Dec. 31 2002 |
Dec. 31 2001 |
Dec. 31 2001 |
|||||||||||
(in millions of U.S. dollars, except per share data ($)) |
|||||||||||||||
Net sales |
1,770.8 |
|
1,438.4 |
|
6,269.8 |
|
6,303.9 |
|
6,303.9 |
| |||||
Other revenues |
15.3 |
|
9.5 |
|
47.8 |
|
53.0 |
|
53.0 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
Net revenues |
1,786.1 |
|
1,447.9 |
|
6,317.6 |
|
6,356.9 |
|
6,356.9 |
| |||||
Cost of sales |
(1,125.5 |
) |
(988.4 |
) |
(4.020.1 |
) |
(4,047.0 |
) |
(3,976.3 |
) | |||||
|
|
|
|
|
|
|
|
|
| ||||||
Gross profit |
660.6 |
|
459.5 |
|
2,297.5 |
|
2,309.9 |
|
2,380.6 |
| |||||
Selling, general & administrative |
(183.7 |
) |
(140.3 |
) |
(647.8 |
) |
(641.4 |
) |
(641.4 |
) | |||||
Research & development |
(282.4 |
) |
(220.8 |
) |
(1,022.3 |
) |
(977.9 |
) |
(977.9 |
) | |||||
Other income and expenses |
18.7 |
|
(16.9 |
) |
7.3 |
|
(6.1 |
) |
(6.1 |
) | |||||
Impairment, restructuring charges and other related closure costs |
(4.1 |
) |
(10.9 |
) |
(33.7 |
) |
(345.5 |
) |
0.0 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
Total Operating Expenses |
(451.5 |
) |
(388.9 |
) |
(1,696.5 |
) |
(1,970.9 |
) |
(1,625.4 |
) | |||||
|
|
|
|
|
|
|
|
|
| ||||||
Operating Income |
209.1 |
|
70.6 |
|
601.0 |
|
339.0 |
|
755.2 |
| |||||
Net interest income (expense) |
(16.6 |
) |
(11.8 |
) |
(68.1 |
) |
(13.0 |
) |
(13.0 |
) | |||||
Equity in earnings of joint ventures |
0.0 |
|
(3.6 |
) |
(11.0 |
) |
(4.8 |
) |
(4.8 |
) | |||||
|
|
|
|
|
|
|
|
|
| ||||||
Income before income taxes and minority interests |
192.5 |
|
55.2 |
|
521.9 |
|
321.2 |
|
737.4 |
| |||||
Income tax expense |
(31.0 |
) |
(9.3 |
) |
(88.9 |
) |
(61.1 |
) |
(133.6 |
) | |||||
|
|
|
|
|
|
|
|
|
| ||||||
Income before minority interests |
161.5 |
|
45.9 |
|
433.0 |
|
260.1 |
|
603.8 |
| |||||
Minority interests |
(0.9 |
) |
(0.9 |
) |
(3.6 |
) |
(3.0 |
) |
(3.0 |
) | |||||
|
|
|
|
|
|
|
|
|
| ||||||
Net income |
160.6 |
|
45.0 |
|
429.4 |
|
257.1 |
|
600.8 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
Earnings per share (basic) |
0.18 |
|
0.05 |
|
0.48 |
|
0.29 |
|
0.67 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
Earnings per share (diluted) |
0.18 |
|
0.05 |
|
0.48 |
|
0.29 |
|
0.67 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
Number of weighted average shares used in calculating diluted earnings per share |
890.4 |
|
898.1 |
|
893.0 |
|
902.0 |
|
904.4 |
|
Twelve Months Ended Dec. 31 2001 |
|||
Excess inventory charge |
70.7 |
| |
Impairment and restructuring charges |
345.5 |
| |
Income tax effect |
(72.5 |
) | |
|
| ||
Total |
343.7 |
| |
|
|
As at |
||||||
December 31, |
December 31, |
|||||
2002 |
2001 |
|||||
(Audited) |
||||||
In millions of U.S. dollars |
||||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
2,561.8 |
|
2,438.8 |
| ||
Marketable securities |
2.0 |
|
5.4 |
| ||
Trade accounts and notes receivable |
1,094.9 |
|
902.4 |
| ||
Inventories |
930.5 |
|
742.5 |
| ||
Other receivables and assets |
601.6 |
|
468.5 |
| ||
|
|
|
| |||
Total current assets |
5,190.8 |
|
4,557.6 |
| ||
Goodwill, net |
158.9 |
|
63.0 |
| ||
Other intangible assets, net |
311.6 |
|
149.6 |
| ||
Property, plant and equipment, net |
6,219.6 |
|
5,888.2 |
| ||
Investments and other non-current assets |
123.0 |
|
139.1 |
| ||
|
|
|
| |||
6,813.1 |
|
6,239.9 |
| |||
Total assets |
12,003.9 |
|
10,797.5 |
| ||
|
|
|
| |||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||
Current liabilities: |
||||||
Bank overdrafts |
18.5 |
|
32.8 |
| ||
Current portion of long-term debt |
146.0 |
|
96.5 |
| ||
Trade accounts and notes payable |
912.4 |
|
936.1 |
| ||
Other payables and accrued liabilities |
605.5 |
|
409.5 |
| ||
Accrued and deferred income tax |
190.3 |
|
212.4 |
| ||
|
|
|
| |||
Total current liabilities |
1,872.7 |
|
1,687.3 |
| ||
|
|
|
| |||
Long-term debt |
2,796.9 |
|
2,771.5 |
| ||
Reserves for pension and termination indemnities |
173.5 |
|
115.8 |
| ||
Other non-current liabilities |
125.1 |
|
112.2 |
| ||
|
|
|
| |||
3,095.5 |
|
2,999.5 |
| |||
|
|
|
| |||
Total liabilities |
4,968.2 |
|
4,686.8 |
| ||
|
|
|
| |||
Commitment and contingencies |
||||||
Minority interests |
41.8 |
|
36.0 |
| ||
Common Stock |
1,144.3 |
|
1,142.4 |
| ||
Capital surplus |
1,863.5 |
|
1,836.0 |
| ||
Accumulated result |
4,592.4 |
|
4,198.6 |
| ||
Accumulated other comprehensive loss |
(258.0 |
) |
(869.0 |
) | ||
Treasury stock |
(348.3 |
) |
(233.3 |
) | ||
|
|
|
| |||
Shareholders equity |
6,993.9 |
|
6,074.7 |
| ||
|
|
|
| |||
Total liabilities and shareholders equity |
12,003.9 |
|
10,797.5 |
| ||
|
|
|
|
Dec. 31, |
Dec. 31, | |||
2002 |
2001 | |||
Consolidated Balance Sheet Data |
||||
(End of period) |
||||
Cash, cash equivalents and marketable securitites |
2,563.8 |
2,444.2 | ||
Working capital |
918.8 |
555.4 | ||
Total assets |
12,003.9 |
10,797.5 | ||
Short-term debt (including current portion of long-term debt) |
164.5 |
129.3 | ||
Long-term debt (excluding current portion) |
2,796.9 |
2,771.5 | ||
Shareholders equity |
6,993.9 |
6,074.7 |
Dec. 31, |
Dec. 31, | |||
2002 |
2001 | |||
Consolidated Operating Data |
||||
(Twelve months ended) |
||||
Payment for purchases of tangible assets |
995.5 |
1,699.8 | ||
Net cash from operating activities |
1,712.1 |
2,047.2 | ||
Net operating cash flow (defined as cash from operating activities net of investment for tangible and intangible
assets) |
340.5 |
225.4 | ||
Operating cash flow (excluding Alcatel Microelectronics purchase) |
647.5 |
|||
Depreciation and amortization |
1,382.2 |
1,320.2 |
STMICROELECTRONICS N.V. | ||
By: |
/s/ PASQUALE PISTORIO | |
Pasquale Pistorio President and Chief Executive
Officer |