STMicro CEO: ‘We closed 2019 with a solid fourth quarter’

“We closed 2019 with a solid fourth quarter sales and financial performance. Net revenues grew 7.9% sequentially, above the mid-point of our guidance of 5.0%, with all product groups contributing to the growth. Our gross margin was 39.3%, 110 basis points higher than the mid-point of our guidance, mainly due to better than expected manufacturing efficiencies and improved product mix,” says Jean-Marc Chery, STMicroelectronics President & CEO, in the fiscal report. For the full fiscal year of 2019 the company recorded net revenues USD 9.56 billion, a gross margin of 38.7%, operating margin was 12.6% and net income eded up at USD 1,032 million – all aligned with expectations. For STMicro’s first quarter, the company expects revenues of USD 2.36 billion, a year-over-year increase of 13.7% but a sequential decrease of 14.3%. “For 2020, we plan to invest about $1.5 billion in CAPEX to support our strategic initiatives and revenue growth to progress towards our mid-term revenue ambition of $12 billion,” says Jean-Marc Chery.